Intrepreneurship

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3/18/2013

BBUS 3710
Intrapreunership
Instructor
Bashir Ahmed, CFA

Definition

• An intrapreneur is someone who has an
entrepreneurial streak in his or her DNA,
but chooses to align his or her talents
with a large organization in place of
creating his or her own, or corporate
enterpreuners



Introduction of New Products Outside of the Traditional R&D
Process
Creation of New Strategic Partners: Example:

– P&G acquiring Gillette



– Delrina Technology, a Toronto-based software products firm, was a vendor to IBM. It needed capital for expansion, but banks were reluctant to lend the company any money because of the intangible nature of its software. IBM already had a marketing partnership, it wanted Delrina to continue to innovate. To give Delrina the necessary capital, IBM acquired 11% of the company. This capital infusion allowed Delrinas software’s to capture a 70% market share



Changes in Business Model:
– IBM changed its business model from equipment supplier to provider of technology services in the ninties and has been successful since.

Thompson Rivers University

Bashir Ahmed, CFA

BBUS 3710 Small Business Finance 2

Intrapreuner as developer

• Who takes a company’s existing products
or services and pursues high growth by
targeting new customers and markets.
While the products or services are not
new, they have no brand equity with the
new targeted markets. Example: Altoids

Thompson Rivers University

Bashir Ahmed, CFA

BBUS 3710 Small Business Finance 3

2

3/18/2013

Intrapreuner as innovator

• who pursues high growth for his company
through new products, services, and/or
business models. The innovator is not a
member of the company’s R&D
department, and therefore creating new
products, services, or business models is
not her official responsibility.
Thompson Rivers University

Bashir Ahmed, CFA

BBUS 3710 Small Business Finance 4

Models of Intrapreunership
• Wolcott and Lippitz have identified two dimensions under the direct control of management that consistently
differentiate how companies approach corporate
entrepreneurship.
• The first dimension is organizational ownership: Who, if anyone, within the organization has primary ownership for
the creation of new businesses? (Note: Responsibility and
accountability for new business creation might be focused in a designated group or groups, or it might be diffused across the organization.)
• The second is resource authority: Is there a dedicated “pot of money” allocated to corporate entrepreneurship, or are new business concepts funded in an ad hoc manner through
divisional or corporate budgets or “slush funds?”
Thompson Rivers University

Bashir Ahmed, CFA

BBUS 3710 Small Business Finance 5

3

3/18/2013

Models of Intrapreunership:

Thompson Rivers University

Bashir Ahmed, CFA

BBUS 3710 Small Business Finance6

Models of Intrapreunership: the opportunist

• Informal model in a Co which lacks a formal
system like enabler or producer.
• New products/services come from individual
champions and not from within the system
• works well only in trusting corporate
cultures that are open to experimentation
and have diverse social networks behind the
official hierarchy
Thompson Rivers University

Bashir Ahmed, CFA

BBUS 3710 Small Business Finance 7

4

3/18/2013

Models of Intrapreunership: the Enabler




Basic premise of the enabler model is that employees across an organization will be willing to develop new concepts if they are given adequate support. Dedicating resources and processes (but without any formal organizational ownership) enables teams to pursue opportunities on their own insofar as they fit the

organization’s strategic frame. Here the company explicitly communicates to its employees the procedures for requesting
development capital and the criteria that will be used to determine which projects receive funding....
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