Corporate Entrepreneurship in India The Road Less Travelled

Corporate Entrepreneurship in India (The Road Less Travelled) S. S. Khanka*, M. Com. , Ph. D. Professor (HR) University School of Management & Entrepreneurship Delhi Technological University (Formerly Delhi College of Engineering) Delhi 110 095 INDIA E-mail: sskhanka 2@gmail. com sskhanka 05@rediffmail. com Mobile: 91 + 9560840090 _______________________ *National Trainer on Ethics and Values in Public Governance recognized by Department of Personnel and Training (Do. PT), Government of India in collaboration with the United Nations Development Programme (UNDP)

Road Map • Corporate Entrepreneurship Defined • Need for Corporate Entrepreneurship • Drivers of Corporate Entrepreneurship in India • Forms of Corporate Entrepreneurship • Models of Corporate Entrepreneurship • Nurturing Corporate Entrepreneurship in India • Corporate Entrepreneurship through Innovation • Barriers to Corporate Entrepreneurship in India • Conditions Necessary to Make Corporate Entrepreneurship Successful • Concluding Remarks

Corporate Entrepreneurship Defined • ‘Corporate Entrepreneurship’ also called ‘Intrapreneurship’ is a term coined by Macrae and developed by Pinchot. Intrepreneurship emerges from within the confines of an existing enterprise. • The top executives in big organizations are encouraged to catch hold of new ideas, convert these into products and services through research and development activities within the framework of organisation. • Steve Jobs: “Corporate entrepreneurship as a group of people going, in essence, back to the garage, but in a large company. ” • Corporate entrepreneurship is the process by which organizational members within an established company conceive, foster, launch, and manage a new form of business and also leverages the parent company’s assets, resources, and market.

Need for Corporate Entrepreneurship • Increasing Competition • Increasing Globalization • Increasing Consumer Expectations • Increasing Technological Advancement • Changing Workforce Demographics

Drivers of Corporate Entrepreneurship in India • Organization Culture: • Organization Policy • Top Management Support • Resource Availability • Risk-Taking and Failure Tolerance • Compensation and Incentive System

Forms of Corporate Entrepreneurship • Entering into New Business: • Championing New Product Idea • Creation of Entrepreneurial Philosophy

Models of Corporate Entrepreneurship • The Opportunist Model • The Enabler Model • The Advocate Model • The Producer Model

Models of Corporate Entrepreneurship The Opportunist Model Diffused ownership and ad hoc resource allocation The Enabler Model Diffused ownership and dedicated resources The Advocate Model Focused ownership and ad hoc resource allocation The Producer Method Focused ownership and dedicated resource

Innovation and Corporate Entrepreneurship “Innovation is the hallmark of entrepreneurship. ” - E. F. Schumpeter • Radical Innovation: Radical innovation is also known as ‘disruptive’ or ‘discontinuous’ innovation. Radical innovation means to find out an altogether new method of doing business. Incremental Innovation: Incremental innovations is a change that implies small adaptions to the status quo and is often described as a step-by-step process. A good example of incremental innovation is Google’s Gmail, the world’s most popular email service. • An organization can do 1, 000 things 1 percent better rather than waiting to do one thing 1, 000 percent better.

Corporate Entrepreneurship in India • At Google, all engineers are encouraged to spend 20% of their work time (1 day per working week) on projects that interest them. This is a motivation technique known as 'innovation time off'. ’ One such project from Paul Buchheit was the initial template for Gmail, particularly the search function. Now, you probably use multiple times a day, Gmail. Some of google’s other new services such as Orkut, Google News and Adsense, originated from 'innovation time off' endeavours. ’ • At “ 3 M” employees could spend their 15% time working on the projects they like for the betterment of the company. On the initial success of the project, 3 M even funds it for further development. • Observers said that such corporate 'intrapreneurship' initiatives could become hothouses of innovation. •

Bharati Airtel • With an objective to encourage corporate entrepreneurship, Bharati Airtel has started programmes such as Sparkplug to help employees turn their ideas into businesses inside the firm. It has also started other programmes named Zing Labaratory and Start Up Weekend opened for outside entrepreneurs to turn their business ideas into reality. Kinetic India • The idea for their variant Zing, came through one of their employees who suggested that they must have a mobile charger in their mobike. ITC • The idea of e-choupal, an ITC division germinated when Sivakumar a manager in the ITC Group’s agribusiness unit, approached ITC’s chairman, with a request of Rs 50 lakh to test an idea. He wanted to procure farm produce from soya farmers in Madhya Pradesh, thereby eliminating middlemen. Today, e-Choupal, reaches out to over 4 million farmers growing a range of crops in over 40, 000 villages across 10 states.

How to Nurture Corporate Entrepreneurship in India? • Develop Innovative Philosophy • Design Flexible Organizational Structure • Recognize and Reward Innovative Employees • Accept Failure as Learning Experience • Allow Bootlegging of Ideas

Barriers to Corporate Entrepreneurship in India • “There is nothing more difficult to take in hand, more perilous to conduct, than to take a lead in the introduction of a new order of things, because the innovation has for enemies all those who have done well under the old conditions and lukewarm defenders in those who may do well under the new. ” - Machiavelli, The Prince • Resistance to Change: • The inherent nature of large organizations • Lack of entrepreneurial talent • Inappropriate compensation method

Conditions Necessary to Make Corporate Entrepreneurship Successful in India • Give people ownership • Make risk taking and failure acceptable • Create learning culture • Support people with ideas • Create a safe place for innovation • Celebrate and reward entrepreneurial behaviour • Encourage cross-discipline projects • Encourage knowledge sharing • Create and allocate funds

• Concluding Remarks • Organizations have to create innovative work environment by way of extending encouragement and needed support to entrepreneurial employees to concentrate on experimenting innovations. • Encouragement makes employees exert their best mite in performing their jobs. Robert D. Hisrich’s opines: “If your employees aren’t innovating, your company is losing its competitive edge. Use Corporate Entrepreneurship to give your mavericks what they need to keep your company on top―all over the world. ” • Organizational initiatives to foster corporate entrepreneurship will be effective only when employees are genuinely interested and committed to act entrepreneurially.

Thank You All & Wish You All HAPPY NEW YEAR 2020