SDSU MGT 745

Spring 20145 Course Highlights

May 15, 2015 Ricardo dos Santos

 

The Outcome of R&D Proprietary means to a useful human purpose

Technology

The Diffusion of Technology The use of resources and processes to diffuse inventions

Venturing

Maximizing Value The use of strategy and tactics to maximize the value of innovation

Strategy

Case Studies Startups, Large Companies, & Research Institutions

Field Study Profiling a local startup, its innovation and its processes

Team Project Accelerating a new venture inside a large company

Supplements Class discussions, Prof. Blog, LinkedIn group

TEACHING METHODS

MGT 745 Corporate Entrepreneurship

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Thank you to our corporate sponsors!

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Big thanks from myself and the students to these gracious San Diego innovators that show Corporate Entrepreneurship is alive and well:

•  Qualcomm Life

•  HP IPS

•  Sempra Energy

We learned about entrepreneurship & innovation from startups and large companies

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Startups Large Co’s

Focus

Startups

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•  Ambitious, aggressive growth oriented startups •  Doing something new and complex •  Require entrepreneurial drive and skills •  Often require using someone else’s capital •  Facing market and/or technology uncertainty •  In ‘Discovery’ phase, i.e. still proving a scalable business model

•  Lifestyle startups

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Customer Discovery

Customer Validation

Customer Creation

Company Building

Search Execute

Startup Framework: The Lean Startup

Main lesson: Apply the scientific method to entrepreneurship Major Terms: •  Minimum Viable Product (MVP) •  Pivot •  Validated Learning

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Startup Framework: Effectuation

Guess Guess

Guess

Guess

Guess Guess

Guess

Guess Guess

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Startup Framework: Business Model Canvas

Innovation at large companies

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•  Meaning of Innovation: To renew oneself (to better provide value)

•  Where does strategy point us to renew (or vice versa)?

•  Do we have the right attitude?

•  What are the tools available (corporate moves available)?

•  What are needed structures?

•  Is there a process to innovate?

•  Do we have the right people?

Decisions at a large company start with Strategy (Which is about playing to win)

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Where to Play How to Win

Strategy

Newness/ Risk of Market +

+

Unknown

Newness/Risk of Technology / Process

Known

The current core business usually serves as a spring board (source of unfair advantage)

It’s hard to do two risky things at once!

Known

Unknown

How to win

Where to Play

Core

Adjacencies

Novel White Spaces

Strategy

Survival

Large companies have somewhat forgotten their entrepreneurial roots

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Growth Innovation

Startups

Large Co’s

Attitude

They must deal with a changing landscape; Doing nothing is the riskiest strategy of all

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9 Ways to Deal with Value Shifts (aka. Avoid missing the next big thing)

Research Corporate Venturing M&A

Trend Analysis

Tech R&D

Consumer Insights

Internal Ventures

Startup Partnering

Corp Venture Capital (CVC)

Startup Acquisition

Large Co. Acquisition

Large Corp Merger

Anticipate React Fast

Tools

The Enabler The company provides

funding and senior executive attention to prospective projects

E.g. Google

The Producer The company

establishes & supports a full-service group with a

mandate for CE E.g. Cargill

The Opportunist The company has no

deliberate approach to CE. Internal & external

networks drive concept select’n & resource alloc.

E.g. Zimmer

The Advocate The company strongly evangelizes for CE, but business units provide

the primary funding E.g. Dupont

Ad-hoc

Dedicated

Diffused Focused

Resource Authority

Organizational Ownership

There isn’t a universally accepted organizational (structural) model for innovation

Structure

Large companies see innovation as the complete journey from idea to market

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IDEATION DISCOVERY EXECUTION

The Inspiration

(Creativity, motivation,

attitude)

Understanding of the relevant world

(Research, Design,

Development & Testing)

The Plan

(Theory of competition, business model

validation, growth, sustainable advantage)

Process

The Internal Entrepreneur IS the key protagonist (but needs sponsors, mentors)

•  Personality

•  Integrity •  Political savvy •  Admits mistakes •  Shares credit •  Breaks rules but

stays within corporate values

Experience

•  Established track record (credible)

•  Long tenure helps •  General manager,

thinks laterally

Behavior

•  Discovers value proposition

•  Communicates •  Networks (resources,

support) •  Executes unafraid •  In love with process

not idea

People

Important corporate innovation beliefs

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•  There’s big ‘I’ and little ‘I’, embrace both •  Big ‘I’ is what’s critical, aka ‘Disruption’ •  Little ‘I’ is now taken for granted (continuous improvement)

•  Open is better than closed •  The networked organization is more resilient •  Also important to break down internal silos

•  Process matters •  Start with the customer/ customer problem •  Formulate hypothesis, test and iterate

•  Culture matters •  Innovation is everyone’s job •  Failure is not failure if it provides valuable lessons

•  Things are moving very fast •  Advantages are transient •  Back to entrepreneurship

My take on corporate innovation

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•  Corporations will have no choice but to completely revamp themselves to handle a greater need to change

•  They won’t ‘throw in the towel’ on innovation anytime soon •  They’ll continue to believe in some inherent advantages over

startups and other institutions to innovation (in some cases) •  They’ll invent, venture, merge and acquire as part of ‘innovating’

•  Startup methods/language will become more common – but it will go hand-in-hand with greater degree of startup partnering, not just internal venturing

•  It’s still about strategy (strategy will be back in style, this time on how to deal with change vs. maintaining an advantage) •  i.e. theory and agility can coexist

•  MBA’s will eventually be trained to discover new opportunities, not simply manage large businesses