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Lecture notes, lecture Complete - Entrepreneuship and innovation

Entrepreneuship and Innovation

Module

Mastering Entrepreneurship (MSIN7007)

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University

University of Westminster

Academic year: 2015/2016

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University of Westminster

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Greg6 years ago
Very informative.

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Entrepreneuship Innovation Know how to Strategy Intrapreneurship VALUE Innovation Effective ways of creating business value Know how to Applied knowledge to extend human capacity Intrapreneurship How opportunities to create value are identified, evaluated exploited Strategy Intended emergent initiatives to use resources to enhance performance Create and Manage Innovation Creation Management needs combination of creativity management needs technical competence needs technical affinity Innovation and Entrapreneurship needs innovation execution needs collaboration and discipline Entrapreneurship best performed multi skilled team Strategic thinkers Strategic reflectors Strategic actors Strategic learners Generators of respect trust self awareness self management social awareness social skills Effectual Thinking Entrepreneurial Thinking Effectuation A thinking framework A set of heuristics Doing the How to get sellable products and services established A system to tell you what to do An algorithm A way to launch an entire business Principles of Effectuation 1) The Bird in hand principle : Start with what you have Who I my traits, tastes and abilities What I know my education, training, expertise, and experience Who I know my social and professional networks 2) The affordable loss principle: Risk little, fail cheap but LEARN focus on the downside risk limit risk understanding what they can afford to lose at each step, instead of seeking large nothing opportunities choose goals and actions where there is upside even if the downside ends up happening entrepreneurs tend to find ways to achieve the objective with minimum expenditure of resources such as time, effort, and money In the extreme case, the affordable loss principle translates into the zero resources to market principle entrepreneurs do not tie themselves to any theorized or or strategic universe for their idea. they open themselves to surprises as to which market or markets they will eventually end up building their business in or even which new markets they will end up creating. 3) Crazy quilt principle: Form partnerships Focus on building partnerships before doing a systematic competitive analysis Ideal beginning for a successful startup would be the induction of customers into strategic partnerships 4) The lemonade principle: Leverage surprises forms partnerships ability to turn the unexpected into the profitable invite the surprise factor instead of making scenarios to deal with scenarios, experts interpret news and surprises as potential clues to create new markets 5) The pilot in the plane: Apply control control v predict know their actions will result in the desired outcomes, focusing on activities within their control in the belief that the future is neither found nor predicted, but rather mad Casual and Effective Reasoning Causal reasoning Effectual reasoning To the extent that we can predict the future, we can control it. To the extent that we can control the future, we do not need to predict it. Creating the future The future is not discovered but created Being in a market that can be predicted is not always such a good idea, since there will always be someone smarter and with deeper pockets who will predict it better Being in an unpredictable market means that the market can be shaped through the decisions and actions of entrepreneurs working in conjunction with stakeholders and Cognitive Theories of Entrepreneurship Cognition process of thinking based on an own social experiences, is a process of how entrepreneurs behave and act based on their own life experiences Many theories are based on understanding: o Traits approach Why people choose to become entrepreneurs o Cognitive approach How entrepreneurs think Traits approach how far entrepreneurs have unique, natural characteristics As cognitive processes may be learnt, cognitive research has practical social for a class of students Four main perspectives of cognitive research: o Heuristics and biases o o Risk perception o Information cost models Intrinsic motivation doing something for its own sake Extrinsic motivation drives new venture creation Information Cost models as information is key to entrepreneurship, focus on developing business intelligence to generate entrepreneurial opportunities Real Options approach suggests how entrepreneurs respond to new information making investments that create real options Organizational Theories of Entrepreneurship Organization theories involve developing innovative organization culture that enables knowledge management through routines and capabilities. Organizational routines : Regular predictable Collective, social tacit Guide cognition, behaviour performance Promise to bridge economic cognition theories with management practices: way we do things Dynamic Capabilities Three key sources of dynamic capabilities: technologies, processes products compared with competitors Paths open to the firm, given its competencies emerging opportunities Processes to integrate exploit competencies firms Entrepreneur and Innovation Process 5 phases: Searching scanning internal external environments (In) Filtering selecting opportunities (IE) Technical, financial market resourcing (E) market diffusion, service contracts (E) Reviewing learning new knowledge (In) Entrepreneur and Innovation Strategy Four factors influence ability to create value through innovation : 1. National system of innovation in which a firm is embedded 2. Power and market position within the international value chain 3. capability and processes, comprising research, design, development, production, marketing, and distribution. 4. Ability to identify exploit internal external sources of innovation Key demands : To cope with environmental complexity uncertainty To develop knowledge capacity to exploit it, To create organizational structures processes to manage between specialized broad knowledge. Types of entrepreneurial firms Small and large at all stages of : incubating ventures, proprietary organizations, public private organizations, statutory boards, (usually known as organizations, businesses, businesses. Business Model Business Model Components Business concept defines strategy Capabilities defines resources needed to execute strategy Key activities Partner network cost structure most important activities performed to implement our business model Identify which key activities we cover in our business model partners and suppliers we work with Outline with which partners and suppliers we work to implement our business model costs we incur to run our business model Identify our most important cost positions resulting from our business model Describing Business Model a team from different departments with diverse views Apply an joint definition of the business model Get the team to draw a clear picture of how your current business model looks Assessing Business Model Drill down on every described building block and analyze them. Flag strengths and opportunities Flag weaknesses and threats Give overall conclusion on the evaluation of your business model Improving Business Model Build on the conclusion Brainstorm freely on improvement Implement ideas into feasible projects and form an improved business model