INTRAPRENEURSHIP

By Rahim AbdullayevISHRM, 18/05/2014

AGENDA

INTRAPRENEURSHIP

- History- Definitions- Intrapreneurs vs Entrepreneurs- Models- Advantages and Challenges- Case Study- Q&A

HISTORY

INTRAPRENEURSHIP

Gifford and Elizabeth Pinchot

- Coined the term (1978)- Began a school for intrapreneurs inSweden- In 1985 published the book,“Intrapreneuring” based on theirresearch and practical applications.

DEFINITIONS

INTRAPRENEURSHIP

"Pursuit of opportunity from within anorganisation beyond the resources currentlycontrolled"Stevenson, 2000

"Acting like an entrepreneur within a largerorganization"Investopedia, 2014

OTHER TERMS

INTRAPRENEURSHIP

- Corporate entrepreneurship- Corporate venturing- Intrapreneuring- Internal corporate entrepreneurship- Internal entrepreneurship- Employee entrepreneurship

DEFINITION

INTRAPRENEUR

A person within a large corporation who takesdirect personal responsibility for turning ideainto a1. Profitable2. Finished ProductThrough1. Assertive Risk Taking2. Innovation

VS ENTREPRENEURS

INTRAPRENEURS

Entrepreneur Intrapreneur-Enters the business withhis own money - morerisks-Has Ownership to thebusiness-Is entitled toreturns/profits from thebusiness

-Gets resources fromemployer company - lessrisk-Only manages thebusiness - no ownership-Is entitled to fixed salary+ bonus (if any)

DIMENSIONS

INTRAPRENEURSHIP

COMMITMENT TOINNOVATION

- Product innovation

- Proactiveness

- Risk Taking

STRATEGIC RENEWAL

- Mission Reformation

- Reorganization

- System-wide changes

An employee has aninnovative idea and happens

to get the support of aproject champion with the

power to say yes to fundingand research.

MODELS

INTRAPRENEURSHIP

1 2 3 4The organization hires

entrepreneurially mindedpeople and encourages allemployees and teams topromote and pursue their

ideas

The company creates a coregroup of innovation experts

to work throughout thecompany and help encourage

new business ideas

The company creates internalorganizations with funding anda defined process for how newideas will be developed if they

don’t fit into the existingstructure.

Opportunist Enabler Advocate Producer

GOOGLE:

INTRAPRENEURSHIP

ADVANTAGES

INTRAPRENEURSHIP

- Funding- Resource Availability- Branding

CHALLENGES

INTRAPRENEURSHIP

-“Corporate Immune System”:a)bureaucracyb)hierarchyc)rules- Fear of Failure- lack of rewards

SONYPlaystation

CASE STUDY

End of 1970s 1980s Success in 1990sKen Kutaragi wasworking in the soundlabs at SonyWorked as an outsideconsultant for NintendoKen developed the“SPC7000″ for Nintendo

Ken Kutaragi saw themarket opportunity ofgaming systems forSonyChairman Ohga took amajor chance andbacked Kutaragi’s plan.

Sony PlayStation, wasreleased in 1994. Itimmediately outsoldNintendo’s Super NESPlaystation reached $7Billion Sales Growth in1997

MORE EXAMPLES

INTRAPRENEURSHIP

-GM workers suggested 44,000 ideas in just onequarter and one plant saved $900K using employeesuggestions

-A scientist at 3M developed Post-it notes afterdiscovering a new glue that was sticky, but not toosticky. It’s now one of their top products

-NutraSweet, a billion-dollar product, was discoveredaccidentally by a scientist trying to develop an anti-ulcer drug for Searle Pharmaceutical Company

BENEFITS

INTRAPRENEURSHIP

- Learn different functions by working like a startup in alarge corporation

- Make a name for yourself within a company

- Gain experience for your own entrepreneurial ventures

- Companies are not as anxious as VCs for a quickreturn

- Work like an entrepreneur but earn a steadypaycheck

THEM!Businesses need

RESOURCES

INTRAPRENEURSHIP

Websites:http://www.intrapreneurshipinstitute.com/http://www.intrapreneur.com/https://blog.generalassemb.ly/Articles:-Growth as a process an interview with Jeffrey R.Immelt, HBR, June 2006-Levit, A. ‘Insider’ Entrepreneurs. The Wall StreetJournal, April 4, 2009-Wolcott, R., The Four Models of CorporateEntrepreneurship, MIT Sloan Management Review, Fall2007, Vol. 49 No. 1, p. 74

THANKYOU!

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