Key Concepts in Corporate Entrepreneurship and Innovation

Agile organization

Project-based organization

Agile product development

A corporate entrepreneurship approach focusing on project and project management, requiring changes at the individual (e.g., intrapreneurs) and organizational levels (e.g., leadership, strategies, processes, and culture). GE's Series X project is given as an example of agile product development.

Authentic leadership

Leader effectiveness that depends on the leader's perceived 'authenticity' (deep convictions, not deceptive) by followers. Apple's iconic leader is given as an example.

Big data

Extremely large datasets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Blue ocean strategies examples

Yellow Tail, Cirque du Soleil, Curves (Yellow Tail is explicitly mentioned in the documents).

Blue-ocean (market characteristics)

New market space, lack of competition, emerging products and customers, ill-defined industry conditions, and high uncertainty.

Blue-ocean strategy

Creating new uncontested markets and avoiding competition in existing markets.

Brainstorming and brainstorming rules

An improvisational idea generation method that requires individual mastery and training, involving generating ideas and selecting the 'most delightful'.

CE incentive/reward structure

Aims to create positive career equity for entrepreneurial behavior; challenges include balancing immediate vs. long-term evaluation, individual vs. team rewards, and perceived fairness. Examples include Nokia (none), DCA Food Industries (20% of project profit to team), Tektronix (salary-related milestone awards) and 3M (financial incentives and promotion opportunities for project sponsors).

CE leadership

Being a visionary, strategic thinker and learner, good communicator, motivator, network builder, and builder of entrepreneurial ecosystems.

CE organization-capabilities

Leveraging refers to utilizing existing organizational resources and competencies to support entrepreneurial activities. Learning involves the organization's ability to adapt and evolve its capabilities through entrepreneurial endeavors.

CE performance assessment

Objectives include evaluating the impact of entrepreneurial initiatives on organizational goals. Characteristics involve measuring both financial and non-financial outcomes. Challenges arise in attributing performance directly to entrepreneurial activities. Advanced IT can facilitate data collection and analysis for more effective assessment.

CE strategies grid: product development

A framework that maps corporate entrepreneurship strategies based on the degree of product innovation and market newness.

CE strategies grid: diversification

A framework that categorizes corporate entrepreneurship strategies according to the relatedness of new business activities to existing ones.

CE strategies grid: market development

A framework that classifies corporate entrepreneurship strategies based on whether the company is entering new markets with existing products or services.

CE strategies grid: market penetration

A framework illustrating corporate entrepreneurship strategies focused on increasing market share within existing markets.

CE strategies: business model reconstruction

Reconfiguring the core logic of the firm and how it creates value to the customer and itself (Google's business model includes AdSense and AdWords).

CE strategies: domain redefinition

Creating a new product or service category that did not exist before.

CE strategies: organizational rejuvenation

Initiatives aimed at renewing a company's sense of purpose, values, and identity to foster entrepreneurial behavior.

CE strategies: strategic renewal

The process of reinventing an organization's strategy and capabilities to compete in altered market conditions; similar to Blue Ocean strategies.

CE strategies: sustained regeneration

A continuous cycle of innovation and renewal within an organization, ensuring its long-term competitiveness and growth.

Centralized CE strategies

A separate business unit for R&D; challenges include less input from current businesses and integration issues (e.g., Xerox PARC).

Challenges of CE (decentralize authority; integrate with autonomy)

Sharing decision responsibilities for critical decisions across divisions, integrating with autonomy, and oscillating between autonomy and integration.

Challenges of CE (staff with 'mature turks'; change veteran thinking)

Staffing new ventures with 'mature turks' and changing veteran's thinking to get existing divisions onboard.

Challenges of CE (two-cultures problem; balancing issues)

Balancing stability/efficiency with change/flexibility.

Closed-innovation strategies

Investing heavily in R&D, discovering ideas, and bringing them to market internally.

Contingency theories of leadership

Leadership theories that emphasize that effective leadership depends on the situation and various contextual factors.

Decentralized CE strategies

Each division is assigned the task to create new businesses; challenges include innovation being only one of many objectives (e.g., 3M).

Design sprint (characteristics, potential benefits)

A short version of Design Thinking aimed at quickly validating ideas and solving problems.

Design sprint (planning)

A structured process for conducting a design sprint, typically involving a 5-day schedule with specific activities each day. Google Ventures is mentioned as a source of Design Sprints.

Design thinking IDEO stages

Empathize, Define, Ideate, Prototype, and Test.

Design thinking (when less appropriate, limitations)

Less appropriate for highly technical problems requiring deep expertise or situations with clearly defined solutions; limitations include potential for subjective interpretation and the need for skilled facilitators.

Digital revolution (disruptive effects)

The transformation of industries and societies through the widespread adoption of digital technologies (3D printing).

Direct leadership activities

Visionary, strategic thinker, and good communicator.

ENT intensity (firm performance implications)

The degree to which a firm engages in corporate entrepreneurship, influencing its innovativeness, risk-taking, and proactiveness, and ultimately impacting firm performance.

ENT intensity: continuous/incremental entrepreneurial events

Ongoing, small-scale entrepreneurial activities that lead to gradual improvements and innovations.

ENT intensity: dynamic entrepreneurial events

Entrepreneurial activities characterized by rapid and frequent changes, requiring agility and adaptability.

ENT intensity: periodic/discontinuous entrepreneurial events

Entrepreneurial activities that occur at irregular intervals and may involve significant changes or disruptions.

ENT intensity: revolutionary entrepreneurial events

Entrepreneurial activities that transform industries or create entirely new markets.

ENT intensity: periodic/incremental entrepreneurial events

Entrepreneurial activities that occur at regular intervals and involve gradual improvements.

Empathy map

A tool used in the Empathy stage of Design Thinking to gain a deeper understanding of users' needs and perspectives.

Entrepreneurial ecosystems

Networks of interconnected organizations, institutions, and individuals that foster and support entrepreneurship.

Entrepreneurial grid #1 (frequency vs. degree of entrepreneurship)

A visual representation of a company's entrepreneurial orientation, plotting the frequency of entrepreneurial behavior against the degree of entrepreneurship.

Entrepreneurial grid #2 (market vs. product focus ENT initiatives)

A framework that categorizes entrepreneurial initiatives based on whether they are focused on market opportunities or product innovation.

Entrepreneurial grid (application examples)

Using the entrepreneurial grid to analyze different companies' entrepreneurial strategies and identify areas for improvement.

Entrepreneurial intensity (dimensions)

The dimensions of entrepreneurial intensity include innovativeness, proactiveness, and risk-taking.

Four-actions framework (create, raise, reduce, eliminate)

A tool used in Blue Ocean Strategy to reconstruct buyer value by creating new value elements while eliminating or reducing less relevant ones.

Future trends in corporate entrepreneurship

Agile organizations and the Startup Way.

Gig economy

A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

Google AdSense and AdWords software

Google's business model includes AdSense and AdWords software for targeted ad placement.

Google project-team structure

Small teams with focused task assignments, low-levels of hierarchical differences, rotating project leadership, and opportunities for self-selection into projects.

Google twenty-percent time/projects

Allows engineers to spend 20% of their time (or a day each week) pursuing projects outside their official area of responsibility.

Globalization of entrepreneurship

The increasing interconnectedness of entrepreneurial activities across national borders.

Hybrid/balanced CE strategies

Combine centralized and decentralized approaches (e.g., IBM, Amazon).

Impact of advanced IT on CE strategy implementation

Advanced IT facilitates communication, collaboration, and data analysis, enabling more effective CE strategy implementation (3D printing).

Indirect leadership

Motivate, build networks, and empower others.

Intrapreneurs

Employees who exhibit entrepreneurial behavior within an organization, taking initiative and driving innovation.

Leader authenticity

Leader effectiveness is linked to perceived authenticity.

Leader-follower models of leadership

Emphasizes the importance of both leaders and followers in the leadership process.

Leaders (born or made?)

Leadership capabilities are developed through a combination of innate traits and learned skills.

Leadership and 'ability to listen'

Good communication, including listening, is a key component of entrepreneurial leadership.

Leadership by example

Leading by demonstrating the desired behaviors and values.

Leadership teams vs. individuals

The advantages and disadvantages of having a single leader versus a leadership team (Google uses small project teams).

Minimum Viable Product (MVP)

Used to obtain early market feedback and enable iterative product improvements (e.g., GE Series X).

Open innovation (spin-in vs. spin-off ventures)

'Spin-in' (acquiring external ideas) and 'spin-out' (selling internal ideas) ventures.

Open innovation (success examples)

Android by Google and NASA's crowdsourcing.

Open innovation and absorbing ideas

Involves absorbing discoveries from other firms.

Open, closed, and hybrid/partial open innovation strategies

Organizations use open, closed, and hybrid/partial open innovation strategies.

Open-innovation strategies (opportunities, challenges)

Opportunities include exploiting intellectual property and creating ecosystems; challenges include change resistance and unintended IP diffusion.

Organizational culture at Google

Flat, open, and collaborative.

Project leadership (dynamics)

Google uses rotating project leadership.

Project plan (components, pros and cons)

A formal document outlining project goals, scope, tasks, resources, and timelines; pros include clarity and structure, cons include rigidity and potential for being outdated.

Project risk evaluations

Assessing and managing potential risks associated with a project.

Project scope definition

Clearly defining the boundaries, objectives, and deliverables of a project.

Project stakeholder and stakeholder management

Identifying individuals or groups who have an interest in the project and managing their expectations and involvement.

Project teams at Google (selection, size, rotating leadership, other characteristics)

Small, with rotating leadership and self-selection.

Public crowdsourcing for innovations

NASA.

Red oceans (market characteristics)

Established markets, cut-throat competition, and similar products.

Sharing economy

An economic system in which assets or services are shared between private individuals, either free or for a fee, typically via the internet.

Silicon Valley as an entrepreneurial ecosystem

A region known for its high concentration of technology companies, venture capitalists, and entrepreneurial culture.

Storyboarding

Iterative generation of quick and cheap prototypes.

Strategy canvas

A diagnostic and action framework for building blue ocean strategy.

The Start-up Way

Emphasizes MVP and pivoting.

The startup way (pivot and pivoting)

Continuous experimenting, learning, and adjusting.

3D printing and MVP

3D printing can be used in the creation of MVPs.

Unfreezing events

Events or situations that create a sense of urgency and motivate organizations to change.

Value curves or value profile

(Tool used in Blue Ocean Strategy to visualize a company's relative performance across its industry's key success factors).