ENTREPRENEURIAL MINDSET, CULTURE, AND LEADERSHIP

EM

Entrepreneurial Mindset

EC

Entrepreneurial Culture

EL

Entrepreneurial Leadership

Presented by : Andika Dyah Paramita - 1406513224 | Angela Jessica Stephanie - 1406513256 Annisa Ayuningtyas - 1406588654 | Anugrah Adeputra - 1406588686 Arsya Chairunnisa - 1406513312 | Arieta Aryanti - 1406513294 Ayu Meriany Savitri - 1406513331 | Camelia Indah - 1406513376

Content Coverage Entrepreneurship & Entrepreneurial Mind Set Corporate Entrepreneurship

Strategic Entrepreneurship The Innovator’s DNA 5 skills of Disruptive Innovators

Entrepreneurial Strategy Generating and Exploiting New Entries

The DNA For The World’s Most Innovative Companies

Entrepreneurship & Entrepreneurial Mind Set

The Nature of Entrepreneurship • Entrepreneurial opportunities • Entrepreneurial action Knowledge: Prior knowledge

Knowledge assessment Third person opportunity

Motivation: Personal strategy

• Entrepreneurial thinking

Motivation: Desirability assessment

Entrepreneurial action First person opportunity

How Entrepreneurs Think • Think structurally 1.Superficial similarities 2.Structural similarities

• Engage in bricolage • Effectuate 1.Causal process 2.Effectuation process

• Cognitive adaptive

Entrepreneurial Intentions The motivational factors that influence individuals to pursue entrepreneurial outcome 1. 2.

Entrepreneurial self-efficacy  Feasibility Perceived desirability  Desirability

Entrepreneur background and characteristics • Education • Age • Work history

Role model support system • Role model • Support system o Moral-support network o Professionalsupport network

Sustainable entrepreneurship

Entrepreneur who’s focused on preserving nature, life support, and community sustainability in the pursuit of perceived opportunities to bring future products, process, and service into existence for gain where gain (entrepreneurial action) is broadly construed to include economic and non economic to individuals, the economy, and development of society.

What me worry? The Power of Paranoia Paranoia is one of the key trait in entrepreneurial success Paranoia avoid you for being complacency

How to being smart paranoia entrepreneur? 1.

2.

3. 4.

Pick you paranoia : paying attention to the fine points (the most important things in you business) Paranoia parameters: worrying obsessively, misplaced paranoia, consider the degree of severance Practical paranoia: critical evaluate everything Advice to an entrepreneur  question 4 things

Corporate Entrepreneurship

Corporate Entrepreneurship • Why Individual tends to search responsibility and strong need for individual expression and freedom in work environment • Corporate Entrepreneurship stimulating, capitalizing on, individuals in an organization who think that something can be done differently and better • Key Elements -

New business venturing  new business Innovativeness  technology innovation Self-renewal organizational change Proactiveness  initiative and risk taking

Entrepreneur vs Traditional Management Entrepreneur Management

Traditional Management

Strategic orientation

Resources do not constraint the strategic thinking

Use the resources efficiently

Commitment to opportunity

Entrepreneurial orientation toward Place considerable emphasis on opportunity information from data collection and analysis

Commitment to resources

Minimize the resources that would required in a pursuit of opportunity

Control of resources

Less concerned about the ownership and more about having access to others’ resources

Commit large scale resource to an opportunity

Entrepreneur vs Traditional Management Entrepreneur Management

Traditional Management

Management structure

Organic – few layers of bureaucracy

Formalized bureaucracy

Reward philosophy

Compensate based on their contribution toward opportunity

Compensate based on their responsibilities

Growth orientation

Desire to growth at rapid pace

Prefer at a steady and well manage growth

Entrepreneurial culture

Encourage creative ideas and outputs

Interested in ideas that revolve around controlled resources

Unlikely to have purely entrepreneurially managed or purely traditionally managed, most firms fall somewhere in between

Characteristics of an Entrepreneurial Environment • • • • • •

Operates on frontiers of technology Trial and error encouraged No opportunity parameters Multidiscipline teamwork approach Volunteer program Sponsors and champions available

• • • • • •

New ideas encourage Failures allowed Resources available and accessible Long term horizon Appropriate reward system Support of top management

Leadership Characteristics of Corporate Entrepreneurs

• • • •

Understands the environment Creates management options Encourages open discussion Persists

• Is visionary and flexible • Encourages teamwork • Builds a coalition of supporters

Entrepreneurial Strategy Generating and Exploiting New Entries

The set of decisions, actions, and reaction that first generate and then exploit over time, a new entry in a way that maximizes the benefits of newness and minimizes its costs

Stage 3 : Feedback loop of resources

Entry strategy Knowledge Resources bundle

Assessment of new entry opportunity

Risk reduction strategy

Other resources Organization Stage 1 : New entry generation

Stage 2 : New entry exploitation

Firm performance

GENERATION OF A NEW ENTRY OPPORTUNITY Knowledge : Market knowledge Technological knowledge

Resources

Stage 1 : New entry generation

Resources bundle : Valuable Rare Inimitable

Entrepreneurial Resources the ability to obtain and then recombine, resources into a bundle that is valuable, rare and inimitable

A NEW ENTRY EXPLOITATION Entry strategy

Assessment of new entry opportunity

Risk reduction strategy

• • • • •

Develop a cost advantage Face less competitive rivalry Can secure important channels Better positioned to satisfy customers Gain expertise through participation

•

Market scope : A narrow-scope strategy & broad-scope strategy Imitation strategy : franchising

• •

Organization

Stage 2 : New entry exploitation

Liabilities of newness : cost in learning new task, increased conflict

•

Assets of newness : increased ability to learn new knowledge

Strategic Entrepreneurship

Strategic Entrepreneurship “simultaneous opportunity-seeking and advantage-seeking behaviors to create wealth”

Entrepreneurial Mindset

Managerial Resources Strategically

Entrepreneurial Culture & Entrepreneurial Leadership

Applying Creativity and Developing Innovation

Competitive Advantage

Wealth Creation

A way of thinking about business that focuses on and captures the benefit of uncertainty

Entrepreneurial Mindset

Key Components • Entrepreneurial opportunities  new goods, services, raw material, method (price > cost) • Entrepreneurial alertness  flashes of superior insight (feasible / unexpectedly valuable) – habitual entrepreneur • “Real” options logic  enhance strategic flexibility • Entrepreneurial framework  setting goal, opportunity register, timing – consistently used across projects & time

Entrepreneurial Mindset

Entrepreneurial Culture & Entrepreneurial Leadership

Entrepreneurial Culture • New ideas and creativity are expected • Risk taking is encouraged • Failure is tolerated • Learning is promoted • Product, process, and administrative innovations are championed • Continuous change is viewed as a conveyor of opportunities

Entrepreneurial Leadership • Nourish on entrepreneurial capability • Protect innovations threatening the current business model • Make senses of opportunities • Question the dominant logic • Revisit the “deceptively simple questions” • Link entrepreneurship & strategic management

Entrepreneurial Mindset

Managerial Resources Strategically

Entrepreneurial Culture & Entrepreneurial Leadership

Resources : • Financial Capital: all monetary resources • Human Capital: capability, knowledge, skill & experience • Social Capital: internal & external relationship 3 Stages of Managing Resources Strategically • Structuring resource portfolio (acquiring, accumulating, and divesting) • Bundling resources (organize resource  shape of firm capability & maintain competitive advantage) • Leveraging Capabilities (to maximize opportunity recognition and exploitation among firm functions )

Entrepreneurial Mindset

Managerial Resources Strategically

Applying Creativity and Developing Innovation

Creativity • A continuous process, ability to manage diverse matrices of information, and recognize pattern of opportunities • Bisociation : action that lead first to creativity and subsequently to innovation result from a process Innovation

Entrepreneurial Culture & Entrepreneurial Leadership

• Disruptive innovation  revolutionary change  new goods or services • Sustaining innovation  incremental change  new process

The Innovator’s DNA 5 skills of Disruptive Innovators

THE INNOVATOR’S DNA MODEL FOR GENERATING INNOVATIVE IDEAS COURAGE TO

BEHAVIORAL SKILLS

COGNITIVE SKILL TO SYNTHESIZE NOVEL INPUTS

INNOVATE

Questioning Challenging the status quo

Observing

Taking risks

Networking

Associational thinking

Experimenting

Innovative Business Idea

Discovering Skill #1 Associating -The Innovator’s DNA

Associating • Ability to make surprising connections across areas of knowledge, industries, even geographies

Innovator’s DNA Model of Generating Idea

Medici Effect • Creative Explosion in Florence when the Medici Family brought together people from a wide range of disciplines • As these individuals connected, new ideas blossomed in the intersections of their respective fields • “Renaissance” • Ideas Conferences

Innovators not only frequented places like TED Literally constructed TED in their heads Creating a “Personal Medici Effect”

Best Predictor : “How often people engaged in the other discovery skills ?” “Why isn’t all enterprise software like Facebook and Twitter?”

Schultz got the Starbucks Idea when he was observing Espresso Bars in Italy

Lazaridis got the idea for Blackberry as he listened to someone talking about Future Trends in Wireless Data Transfer

Dynamics behind the search of New Associations • Creating Odd Combinations • Zooming In and Out • Lego Thinking

Creating Odd Combinations Put together seemingly mismatched ideas to compose surprisingly successful combinations

Zooming In and Out Innovative entrepreneurs often exhibit the capacity to do two things at once: • Dive deep into the details • Fly high to see how the details fit into the bigger picture

Lego Thinking

Absolute quantity of ideas does not always translate into highly disruptive ideas. WHY??? You cannot look in a new direction by looking harder in the same direction

Lateral Thinking

Tips for Developing Associating Skills • • • • •

Force new associations Take on the persona of a different company Generate metaphors Build your own curiosity box SCAMPER!

Discovering Skill #2 Questioning -The Innovator’s DNA

Questioning • • • •

Tactic #1: Ask “What is?” Questions? Tactic #2: Ask “What caused?” Questions? Tactic #3: Ask “Why and Why Not” Questions? Tactic #4: Ask “What if?” Questions?

Tips for Developing Questioning Skills Tip #1 Tip #2 Tip #3 Tip #4

Engage in QuestionStorming Cultivate Question Thinking Track your Q/A Ratio Keep a Question Centered Notebook

Discovering Skill #3 Observing -The Innovator’s DNA

TATA NANO The world’s cheapest car

HOW Ratan Tata, chairman of India’s Tata Group, gained a powerful insight that inspired the world’s cheapest car?

OBSERVING

OBSERVING: UNDERSTANDING THE JOB TO BE DONE

Functional

Social

INNOVATIVE SOLUTION

Emotional

How can someone get better at observing? • Actively watch customer to see what products they hire to do what jobs. • Learn to look for surprises or anomalies. • Find opportunities to observe in a new environment.

TIPS FOR DEVELOPING OBSERVATION SKILL • Observe customer • Observe companies • Observe whatever strikes your fancy • Observe with all your senses.

Discovering Skill #4 Networking -The Innovator’s DNA “What a person does on his own, without being stimulated by the thoughts and experiences of others, is even in the best of cases rather paltry and monotonous.” —Albert Einstein

Idea Networking FIGURE 5-1 Networking differences between discovery- and delivery-driven executives DISCOVERY-DRIVEN EXECUTIVES • — — —

Why they network: Ideas Learn new, surprising things Gain new perspectives Test ideas “in process”

• Whom they target: — People who are not like them — Experts and nonexperts with very different backgrounds and perspectives

DELIVERY-DRIVEN EXECUTIVES • — — —

Why they network: Resources Access resources Sell themselves or their company Further careers

• Whom they target: — People who are like them — People with substantial resources, power, position, influence, etc

Idea Networking FIGURE 5-2 Bridging gaps in social networks to get new ideas

FIGURE 5-2 Comparison of idea networking skills for different types of innovators and noninnovators

Network Country Network Medical Inductry

Innovators score 100

C

90

B

80 70

Innovative entrepreneur

60 50 40

Network Different Country

30

A

20 10 0 Start-up Entrepreneur

Corporate Entrepreneur

Product Innovators Percentile

Process Innovators

Noninnovators

Network in health & nutrition

Network Different Industry

Effective idea networkers also plan to find new ideas thru’

TIPS FOR

Tap Outside Experts

DEVELOPING IDEA NETWORKING SKILLS

Attend Idea Networking Events Form Personal Networking Group

#2: Start a “mealtime networking” plan

#1: Expand the diversity of your network

#3: Plan to attend at least two conferences in the next year

#4: Start a creative community

#6: Cross-train with experts #5: Invite an outsider

Discovering Skill #5 Experimenting -The Innovator’s DNA “I haven’t failed ...I’ve just found 10,000 ways that do not work.” —Thomas Edison

Experimenting

FIGURE 6-2 Three ways that innovators experiment

FIGURE 6-2 Comparison of experimenting skills for different types of innovators and noninnovators

EXPERIMENTING

Innovators score

Try Out New Experiences

100 90 80

•

Useful for generating new business ideas

70 60

Take Apart Products, Processes, and Ideas

50 40 30

•

20

Useful for generating new business ideas

10 0 Start-up Entrepreneur

Corporate Entrepreneur

Product Innovators

Process Innovators

Percentile Sample items: 1. Has a history of taking things apart to see how they work. 2. Frequently experiments to create new ways of doing things

Noninnovators

Test New Ideas Through Pilots and Prototypes •

Useful for generating and testing new business ideas to see what works

#2: Cross intellectual borders #7: Go trend spotting

TIPS FOR

#1: Cross physical borders

DEVELOPING EXPERIMENTING SKILLS

#3: Develop a new skill

#4: Disassemble a product

#6: Regularly pilot new ideas #5: Build prototypes

The DNA For The World’s Most Innovative Companies

Companies Compromising many people building the code for Innovation

Big Companies vs Innovative Companies Businessweek Rank

• Rank #1 • Rank #2 • Rank #3 • Rank #4 • Rank #5

Apple Google Microsoft Toyota GE

Innovation Premium Rank

• Rank #1 • Rank #2 • Rank #3 • Rank #4 • Rank #5

Amazon Apple Google P&G Starbucks

Investor Insight “Could you give us insight into which companies that you believe are most likely to produce new service?”

Market Value

Cash Flows

Innovation Premium

Inventive PEOPLE Experimental PROCESS Institutional ‘Yes’ PHILOSOPHIES

• •

Senior Executives lead the innovative charge & excel at discovery Monitor & Maintain adequate proportion of high discovery-quotient people in every level, area & stage

People •

•

Process explicitly encourage employees to associate, question, observe, network & experiment Processes are design to hire, train, reward & promote discovery-driven people

• •

Forming Organization Culture Process

•

•

Philosop hies

Philosophy 1: Innovation is everyone’s job Philosophy 2: Disruption is part of innovation portfolio Philosophy 3: Deploy small, properly organized innovation project team Philosophy 4: Take smart risks in pursuit of innovation