I came across a new definition of entrepreneurship by Howard Stevenson of Harvard School of business:
"PURSUIT OF OPPORTUNITY WITHOUT REGARDS FOR RESOURCES CURRENTLY CONTROLLED"
It is very strategic (or non strategic). Strategy means choice of resources and activities to achieve a goal. Entrepreneurship here as defined is having zero or negative resources. It is short of miracle.
It is a very out of the box, lateral thinking definition <from a business management standpoint>
Showing posts with label Howard Stevenson. Show all posts
Showing posts with label Howard Stevenson. Show all posts
Wednesday, January 2, 2013
Tuesday, January 1, 2013
Innovation straitjacket - how your innovation efforts are stymied?
From HBR
The straitjacket was invented in 18th century in France for mental disorder patients to prevent them from hurting themselves or others. However, in a way or another, companies create, and this comes from the top create straitjackets vs innovation. It is functional though because it promotes order and stability. Some of the straitjacket to innovation.
1. Constrained by current capabilities -- E.g. a project/product cant be done because it is beyond core competency or capability.
Remember Howard Stevenson of Harvard who defined entrepreneurship as "pursuit of opportunities without regards to resources currently controlled"
2. Fear of cannibalization - will the new offering eat into the current sales?
3. Dread of dilution - lower over all margin and ROI. New product marketing and low volume eat into over all profits.
4. Brand - brand extension is bad (Al Reis and Jack Trout). We cant depart from the brand.
5. Channel trap - we try to sell new products through same channel and we have disappointments.
So it is better to leave innovation to a separate unit.
Straitjackets to innovation; how can you innovate if you fear to innovate?
The straitjacket was invented in 18th century in France for mental disorder patients to prevent them from hurting themselves or others. However, in a way or another, companies create, and this comes from the top create straitjackets vs innovation. It is functional though because it promotes order and stability. Some of the straitjacket to innovation.
1. Constrained by current capabilities -- E.g. a project/product cant be done because it is beyond core competency or capability.
Remember Howard Stevenson of Harvard who defined entrepreneurship as "pursuit of opportunities without regards to resources currently controlled"
2. Fear of cannibalization - will the new offering eat into the current sales?
3. Dread of dilution - lower over all margin and ROI. New product marketing and low volume eat into over all profits.
4. Brand - brand extension is bad (Al Reis and Jack Trout). We cant depart from the brand.
5. Channel trap - we try to sell new products through same channel and we have disappointments.
So it is better to leave innovation to a separate unit.
Straitjackets to innovation; how can you innovate if you fear to innovate?
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