INTRAPRENEURSHIP

Intrapreneurs
A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk taking and innovation. Intrapreneurs have entrepreneurial skills blended with managerial skills but operate within the confines of an organization.

Outline

What intrapreneurship is? Why some corporation adopt it? Intrapreneurship vs. entrepreneurship The obstacle to intrapreneurship

Definition;

Entrepreneurship within an existing business. The development within a corporation of internal markets, Or autonomous or semi-autonomous business units, that produce products, services, or technologies in a unique way An opportunity for corporate managers to take initiative & try new ideas. An internal corporate venture (ICV)

Intrapreneurship is the practice of entrepreneurship by employees within an organization.

Example of entrepreneurship: A classic case of entrepreneur is that of the founders of Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $3 billion.

Corporate Entrepreneurship
The process called corporate entrepreneurship or intrapreneuring, The process of extending the firms domain of competence And corresponding opportunity set through internally generated new resources combination.

(Robert A. Burgelman)

Reasons
Adapt quickly to changes in the macroenvironment Diversity from the core business Conduct market experiments Train new managers & leaders Establish new channels of distribution Invest & profit from new venture creation.

The barriers

Corporate bureaucracy Internal product competition Competing demands for resources Resistance to change Absence of internal venture capitalists for guidance employees lack of ownership reduces commitment Corporate environment not as free to creative people as entrepreneurial environment.

Freedom factors
The

right to appoint oneself as an intrapreneur. The right to stay with the venture The right to make decisions The right to appropriate corporate slack The right to start small

Freedom factors (contd.)

The

right to fail The right to take enough time to succeed The right to cross borders The right to recruit team members The right to choose

Post-it Notes
Intrapreneurs: Spencer Silver and Art Fry Company: 3M Year Launched: 1980 The companys program allows employees to spend up to 15 percent of their time at work developing their ideas.

Thats how 3M scientist Spencer Silver invented a light, repositionable adhesive in 1968, although he was unsure how best to use it. He gave seminar after seminar, explaining the advantages of his adhesive to co-workers, but he was unable to drum up much enthusiasm for his not-so-sticky stickum.

Five years later, Art Frey, one of Silvers colleagues, noticed his bookmarks were constantly falling out of his hymnals during choir practice.

He remembered Silvers seminars, and in that Eureka moment, the Post-it was born. The product languished until a marketing manager, Bill Shoonenberg, designed a campaign called the Boise Blitz to drive sales and blanketed the state of Idaho in Post-its. The sticky notes went national in 1980 and quickly became an office-supply and household standard.