Quản trị kinh doanh - Chapter 18: Entrepreneurship and innovation

Chapter 18Entrepreneurship and InnovationDefine the process of entrepreneurship and the role of managers as entrepreneursDescribe the opportunities and challenges that affect the growth of new venturesCompare and contrast different types of ventures that entrepreneurs createExplain how managers lead a creative process with individuals and teamsOutline how entrepreneurs use innovation to grow global opportunitiesLearning ObjectivesEntrepreneurIndividual that plans, organizes, and leads high-risk business opportunities with new market valueEntrepreneurial skills – capacities, activities, and strengths that enable individuals to manage successfully in high-risk business environmentsEntrepreneurs encourage customers to accept new innovation How Entrepreneurship Makes a Difference (p. 440)Innovation (p. 440)Process that results in new market value through the creation of a product or serviceInnovation adoption curve – staged model that describes the evolution of an innovation’s acceptance with three types of customersInnovators Early adoptersEarly majority (p. 442)Late majorityLaggards How Entrepreneurship Makes a Difference (cont.)Start-up company (p. 442)Newly formed organization with limited or no operational historyEntrepreneurshipActivities associated with seeking new opportunities that generate new value, with an array of unknown forcesBusiness modelProposed method for creating and sustaining market valueVenture capitalFunding that supports the starting and growing of high-risk business venturesHow Entrepreneurship Makes a Difference (cont.)People, processes, and the ecosystem (p. 442-443)Entrepreneurial ecosystem – set of stakeholders that are necessary to support the innovation and creation of new market valueMust embrace creativityCreativity – process through which individuals and groups transform ideas into realityHow Entrepreneurship Makes a Difference (cont.)Growth accelerantsMarket opportunity/customers/competitors Identify gap in the marketAttract diverse customersBecome a serious competitor to other businessesHuman resources/people/ organizational cultureAttract and nurture the best talentProduct/service/after-salesInnovative product Unparalleled sales and after-sales service Opportunities and Challenges that Entrepreneurs Face (p. 444) Growth accelerants (cont.)Marketing/branding (p. 445)Should be designed before the company is launched in order to differentiate it from the competitionFeasibility – degree to which a business venture is possible, given the availability of resources and technology (p. 446)Research and development/new product developmentProducts designed to highest quality specificationsImportant for maintaining product’s position in the marketOpportunities and Challenges that Entrepreneurs Face (cont.)Challenges to growth (p. 445)Human resources/people/organization cultureStruggle to attract and retain new talentPeople must fit in to the organization cultureMarket opportunity/customers/competitorsAnother company may identify and capture the market soonerCompany financing and liquidityLiquidity – measurement of available financial resources or the ability to convert an organization’s assets into cashStart-ups will not survive without appropriate financingOpportunities and Challenges that Entrepreneurs Face (cont.)Challenges to growth (cont.)Operations management/systems (p. 445)Systems and operations do not workQuick fixes provide only short-term reliefTop management/board (p. 446)Hiring people as top-level managers without experience in start-up companiesProduces conflict between managerial team and entrepreneurial team fighting to maintain the original visionOpportunities and Challenges that Entrepreneurs Face (cont.)Opportunities and risks for new ventures (p. 446-448)Market size – larger markets have greater growth potentialMarket value creation and customer adoptionValue creation – activities and processes that increase the worth of a product or serviceMarket value capture and business model – business model should address how much value of the market can be capturedManagement team/people/resources – evaluation of abilities necessary to produce successDiscovery or technical abilityScaling – degree to which a company or business model can grow, given the necessary resources Opportunities and Challenges that Entrepreneurs Face (cont.)Opportunities and risks for new ventures (cont.)Financial and liquidity (p. 448)Initial public offering – first time a company sells its equity shares on the stock market Government/political/regulatory – effect of regulatory environment on potential for growthExecution and scaling – execute the system as soon as possible, secure clients, choose a location for the company, and get finances in order Opportunities and Challenges that Entrepreneurs Face (cont.)Chosen strategy must suit business model of the new ventureAggregation venture – business strategy defined by acquiring, merging, and coordinating existing market products, services, and companies (p. 450)Discovery venture – business strategy that seeks to invent a brand-new product or service or find a new resourceNew-existing venture – business strategy defined by offering a new product or service to an existing category or consumersManaging and Leading New Ventures (p. 449)Chosen strategy must suit business model of the new venture (cont.)New-new venture – business strategy defined by offering a new category of consumers a new product or service (p. 450)Typically distinguished by higher risk and higher returns compared to new-existing venturesSystem change venture – business model responding to a significant change in political environments, governmental legislation, and regulationTransplant venture – business strategy where an idea that achieves market success in one market region is transferred to other geographic marketsManaging and Leading New Ventures (cont.)Chosen strategy must suit business model of the new venture (cont.)Value chain venture – business model that seeks to redesign or augment an offering in an existing business or management process (p. 450)E.g., outsourcing of information technology and researchWave venture – business model defined by a systemic change in business and market environments Managing and Leading New Ventures (cont.)The discipline of creativity (p. 451)Creativity is a science filled with thought processes that we are all capable of when working with the right peopleMeta-ideas – concepts that create, nurture, and support other conceptsSharing ideas inspires new ideasCriticism backed up by supporting or new ideas sparks new creative processesManaging the Creative Process (p. 450)Flow – experience of immersion and loss of time when an individual achieves an optimum balance of challenge, interest, and achievement (p. 451)Absorption in a well-defined task enables one to ignore distractionsManaging the Creative Process (cont.)Flow (cont.) Eight conditions for flow in the workplace (p. 451-452)Clear goals Immediate feedbackBalance between opportunity and capacityDeepened sense of concentrationLiving in the presentPersonal controlAltered sense of timeLoss of egoManaging the Creative Process (cont.)Team creativityQ-level – measurement that determines the optimum level of group size and interaction to achieve successful creative output (p. 453)Managing the Creative Process (cont.)