TECHNOPRENEURSHIP(EM604)Session 9

TECHNOPRENEURIAL PROCESS

Dr. Winarno

New Definition of Entrepreneurship

Entrepreneurship is a way of thinking,

reasoning, and acting that is opportunity

obssesed, holistic in approach, and

leadership balanced.

Entrepreneurship Evolution

EntrePreneship

Old and New Companies

Small and Large

Companies

Fast and Slow Growth

Private / Non Profit / Public

All Geographic

Point

Skill Development

Competent UnconsciousCompetent

ConsiousCompetent

Uncompetent UnconsciousUncompetent

ConsciousUncompetent

Unconscious Conscious

Skill Maturity

AHLI TRAMPIL

BISATAHU

Entrepreneurship Results

Entrepreneurship

Value

Creation

Enhancement

Realization

Renewal

Owners

Participants

Stake Holder

Entrepreneurship Process

Opportunity

Entrepreneur Role

EP Role

Inject Imagi-nation

Motivation

Commitment

PassionTenacity

Integrity

Teamwork

Vision

Face Dilemmas&

Make Decision

Classic Entrepreneurship: The Startup

• Classic expression of EP is the raw startup company, an innovative idea that develops into a high growth company.

• Legend of Microsoft, Netscape, Amazone.com, Sun Microsystems, etc.

• Key Success Factors: Strong leadership, teamwork building, opportunity sensitivity; skill and ingenuity to find and control resources.

Entrepreneurship in Post Brontosaurus Capitalism: Beyond Startup

• IBM (vs Appe Computer, Microsoft)• DEC (vs Apple Computer, Compaq Computer)• AT&T (vs MCI, McCaw Communications, Inc.,

Cellular One)• Lost 900,000 jobs. Emerge New 4.3 million

jobs and $736 billion by venture capital investment.

People Don’t Want to Be Managed. They Want to Be Led.

• Perusahaan Besar cenderung hierarkhis dan birokratis Lambat menyikapi perubahan.

• Perusahaan Entrepreneurship lebih fleksibel, cepat menyikapi perubahan

Company Life Cycle

Mature

Old

DecayStart

Grow

EP

EP

EP

EP

EP

EP

SEED,NEW BUSINESS,DIVERSIFICATION

DIVERSIFICATION

INTI SARI

TOKO BUKU

PENERBIT

CETAK

KOMPAS

PENERBIT

LAIN2

HOTEL

TISSU

UMN

The Wind of Change

• Social• Politic• Economy (and Finance)• Culture • War (Defence)• International Affair• Technology

Wind of Change Example:KOMPAS

POLITIK (PKI, PEMBREDELAN)

TEKNOLOGI (SETTING, KOMPUTER, DTP,

INTERNET, CONVERGENCE)

SOCIAL (MONITOR CASE)

ECONOMY (MONETARY CRISIS)

CULTURE (TRADITIONAL, MODERN, INTERNET)

KOMPAS DIGITAL TRANSFORMATION

KOMPAS.COM

E-ZINE

E-BOOK

PARADOX OF ENTREPRENEURSHIP

• An opportunity with no or very low potential can be an enormously big opportunity. E.g. Steve Jobs and Steve Wozniak (Founder of Apple Computer Corp.) reveal an idea of Desktop PC.

• To make money you have to first lose money.• To create and build wealth one must

relinquish wealth.

PARADOX OF ENTREPRENEURSHIP

• To succeed, one first has to experience failure.

• Entrepreneurship requires considerable thought preparation, and planning, yet is basically an unplannable event.

• For creativity and innovativeness to prosper, rigor and discipline must accompany the process.

PARADOX OF ENTREPRENEURSHIP

• Entrepreneurship requires a bias toward action and a sense of urgency, but also demands patience and perseverance.

• The greater the organizatin, orderliness, discipline, and control, the less you will control your ultimate destiny.

PARADOX OF ENTREPRENEURSHIP

• Adhering to management best practice, especially staying close to the customer that created industry leaders in the 1980s, became a seed of self-destruction and loss of leadership to upstart competitors.

• To realize long-term equity value, you have to forgo the temptations of short-term profitability.

Think Big Enough

• Don’t set up too small business. Smaller means higher failure.– Contoh: Internet Café, Digital Printing di satu

tempat saja• Threshold Concept: At least 20-30 people,

with US$2 -3 million revenue• Think about growth and equity.

One Year Survival Rates By Firm Size

Firm Size (Employees) Survival Percentage

1 – 24 people 53.6 %

25 – 49 people 68.0 %

50 – 99 people 69 %

100 – 249 people 73.2 %

Time for New Technologies to Reach 25% of USA Population

Household electricity (1873) 46 years

Telephone (1875) 35 years

Automobile (1885) 55 years

Airplane Travel (1903) 54 years

Radio (1906) 22 years

Television (1925) 26 years

Video Cassette Rec (1952) 34 years

Personal Computer (1975) 15 years

Celular Phone (1990) 13 years

Internet (1994) 7 years

Timmons Model of the Entrepreneurial Process

TEAM

OPPORTUNITY

RESOURCES

COMMUNICATION

LEADERSHIPCREATIVITY

EXOGEN FORCES

CAPITAL MARKETCONTEXT

AMBIGUITY

UNCERTAINTY

BUSINESS PLAN

FITS & GAPS

FOUNDERSSUSTAINABILITY : FOR ENVIRONMENT, COMMUNITY AND SOCIETY

OPPORTUNITY(Market Segment)

• Market demand is a key ingredient to measure an opportunity:– Is customer payback less than one year?– Do market share and growth potential equal 20%

annual growth and is it durable?– Is the customer reachable?

OPPORTUNITY(Market Segment)

• Market structure and size help define an opportunity:– Emerging and/or fragmented?– $50 million or more, with a $1 billion potential?– Proprietary barriers to entry?

OPPORTUNITY(Market Segment)

• Margin analysis helps differentiate an opportunity from an idea– Low cost provider (40% gross margin)?– Low capital requirements vs the competetion?– Break even in 1 – 2 year?– Value added increase of overall corporate P/E

ratio?

RESOURCES

• Bootstrapping– Minimize and control vs maximize and Own

• Relationship– Unleashing Creativity

• Financial Resources• Assets• People• Your Business Plan• Think cash last

TEAMCritical Ingredient for Success

• An Entrepreneurial Leader– Learn and teach (faster is better)– Deal with adversity (resilient)– Exhibit integrity, dependability, honesty– Build entrepreneurial culture and organization

QUALITY OF THE TEAM

• Relevance experience and track record

• Motivation to excel• Commitment,

determination, and persistence

• Tolerance of risk, ambiguity and uncertainty

• Creativity

• Team locus of control• Adaptability• Opportunity obssesion• Leadership and courage• Communication