Introduction to Corporate Entrepreneurship hoorcollege
aantekeningen
15-09-2020 HC 1
The new age of change and uncertainty, and the implications for big companies
Lang bestaande en succesvolle bedrijven hebben ook challenges waar ze mee om moeten gaan.
Sommige bedrijven kunnen hier niet mee omgaan en verdwijnen in de markt. ‘Large, established and
so far successful companies are currently missing the boat’ waarom?; dat wordt in HC 1 t/m 3
uitgelegd. Er zijn verschillende oorzaken van snelle en dynamische veranderingen:
Global warming – Environmental & social sustainability (CSR)
Technology
o Shift from industrial to knowledge-based economies
o Global connectivity & communication; Deconstruction of value chains and Data
monetarization & mining; Artificial Intelligence (AI)
o Decreasing fixed costs in some industries
Competition
o Global competition but increasing concentration & consolidation in some industries
o Competition from entrepreneurial smaller firms
o Shift from economies of scale to economies of scope & market niches
Social trends
o Corporate scandals and accountability
o Increasing complexity
Change is the new normal
Het successyndroom gaat over een bedrijf dat succesvol is en
succesvol zal blijven in een stabiele markt, maar zodra de markt
niet meer stabiel is, zal het succes van het bedrijf ook verdwijnen.
De huidige businessomgeving is erg dynamisch, dus bedrijf met dit syndroom zullen daarin
ondergaan, omdat het moeilijk voor hen is om zich aan te passen aan de dynamische omgeving. It is
especially the latter type of innovation & technological change that large established firms have
difficulties coping with.
De hoofdvraag van dit vak is: How can established companies become more entrepreneurial?
17-09-2020 HC 2
Corporate entrepreneurship is an imperative and yet a challenge for established companies. Het is
aan de ene kant wel een must, maar waarom is het aan de andere kant een uitdaging. Ook worden
de kritische factoren van corporate entrepreneurship genoemd. Corporate entrepreneurship is nodig
omdat de omgeving van bedrijven continu verandert. In de praktijk zien we dat alle gevestigde en
grote bedrijven een focus hebben op innovatie en entrepreneurship. Dit is voor zowel hightech als
medium- en lowtech bedrijven het geval. Echter lukt het maar een klein aantal bedrijven om
werkelijk echt innovatief en entrepreneurial te zijn.
De hoofd uitdaging is: How to protect the traditional successful business and simultaneously to
engage in radical innovation? Er wordt hierbij dus gekeken naar het verleden (traditionele
succesformule) en naar de toekomst (innovatie). Het is erg moeilijk om beide toe te passen omdat
,bedrijven zich focussen op dingen waar ze goed in zijn en daarnaast vereisen innovatie en nieuwe
dingen doen en ander soort management en organisatie aanpak.
Entrepreneurial bedrijven hebben zo’n mindset en dynamische structuren nodig. Goed management,
accountability en reliability zijn kenmerken van established bedrijven, maar (kunnen) leiden tot
inertia. Het successyndroom leidt meestal tot inertia en dat werkt tegen op innovatie en
entrepreneurship.
Grote bedrijven kunnen overleven door: Corporations have to dismantle bureaucracies to survive.
Economies of scale are giving way to economies of scope, finding the right size for synergy, market
flexibility and, above all, speed. To survive, big companies today are all deconstructing themselves
and creating new structures, many as autonomous units.
Entrepreneurial orientation the key drivers for success:
Innovativeness
Risk-taking
Pro-activeness
Competitive aggressiveness
Internal autonomy
Corporate entrepreneurship is about enhancing entrepreneurial and innovative activities in already
established companies. However it is rather
difficult and challenging to make a shift and
become really entrepreneurial. When a company
wants to be entrepreneurial, it has to make
changes in all directions, that can be seen in the
following figure
Organizational architecture is based on 4 pillars:
Leadership & management
Culture
Structure
Strategies
These pillars are going to be discussed in de next lectures.
22-09-2020 HC 3
Innovation is key to entrepreneurial behavior.
Innovation is being new. There are different types of innovation:
product, service, process, market, incremental, radical, sustaining and
disruptive.
The main challenge for leading companies is how to protect the
traditional successful business and to engage in radical innovation at the same time.
According to Clayton Christensen (HBS): Failure to adapt to disruptive innovation is not the result of
bad management, but a result of good management. This is the innovator’s dilemma and can be
explained with the following: Leading companies have already an established customer base and
depend on their existing customers and investors for resources and they listen closely to these
, customers and investors, and create new products & services to meet their needs and kill ideas for
which there is little need. This is the definition of good management, but there is a downside.
There is a difference between sustaining and disruptive innovation. Sustaining innovation improves
the product’s performance based on the features valued by mainstream customers. Disruptive
innovation often involves lower performance in many product features. Sustaining innovation is
driven by existing market demand but can ultimately fail and disruptive innovation starts in a niche
market that is neglected by the company but can grow to be a successful market. The current leading
company can miss opportunity.
Het is voor een bedrijf erg moeilijk om innovatief te zijn en nieuwe kansen te zien. Om dit te
begrijpen moeten we eerst kijken naar Value Network; the context within which an organization is
established to get what it values. Bestaande bedrijven zitten achter de omzet van de hoofdklanten
aan, het hele bedrijf is daarop ingesteld. Op basis van deze vereisten worden ook nieuwe
resource/allocation en investeringen beoordeeld.
Disruptive innovation can be managed:
1. Have a spin-off
2. Match its size with its market
3. Plan to fail early and inexpensively
4. Use the resource only
5. It is a marketing challenge
Large companies have to engage in radical innovation, because it is the ONLY way to keep up with
rapid technological change and innovation, and to be prepared for disruptive innovation.
Disruptive innovation leads to:
Shifts in the industry landscape (Nokia -> iPhone)
Technological convergence: several technologies converging into one (mobile phone)
Disrupting the competitive advantage of existing companies, even if these companies have
been market leaders
Difference between disruptive and radical innovation Disruptive innovation occurs when new
entrants challenge incumbent firms, often despite inferior resources. Disruptive innovation occurs
not by the use of innovative technology alone, but rather in combination with business model
innovations. Radical innovation occurs internally within organizations, and involves the creation of
new knowledge or successful commercialization of completely novel products and ideas.
A business model is defined as ‘the rationale of how an organization create, delivers and captures
value’. Also a business model is the way the company operates and delivers value to customers.
These are all the core aspects in the business: strategies, target customers, business processes,
product and service offerings, organizational structures, business and management practices, and
operational processes. So when we are talking about business model innovation it is about changing
the way the company operates and/or delivers value and/or products/services to its customers.
Types of innovation Innovation intensity
aantekeningen
15-09-2020 HC 1
The new age of change and uncertainty, and the implications for big companies
Lang bestaande en succesvolle bedrijven hebben ook challenges waar ze mee om moeten gaan.
Sommige bedrijven kunnen hier niet mee omgaan en verdwijnen in de markt. ‘Large, established and
so far successful companies are currently missing the boat’ waarom?; dat wordt in HC 1 t/m 3
uitgelegd. Er zijn verschillende oorzaken van snelle en dynamische veranderingen:
Global warming – Environmental & social sustainability (CSR)
Technology
o Shift from industrial to knowledge-based economies
o Global connectivity & communication; Deconstruction of value chains and Data
monetarization & mining; Artificial Intelligence (AI)
o Decreasing fixed costs in some industries
Competition
o Global competition but increasing concentration & consolidation in some industries
o Competition from entrepreneurial smaller firms
o Shift from economies of scale to economies of scope & market niches
Social trends
o Corporate scandals and accountability
o Increasing complexity
Change is the new normal
Het successyndroom gaat over een bedrijf dat succesvol is en
succesvol zal blijven in een stabiele markt, maar zodra de markt
niet meer stabiel is, zal het succes van het bedrijf ook verdwijnen.
De huidige businessomgeving is erg dynamisch, dus bedrijf met dit syndroom zullen daarin
ondergaan, omdat het moeilijk voor hen is om zich aan te passen aan de dynamische omgeving. It is
especially the latter type of innovation & technological change that large established firms have
difficulties coping with.
De hoofdvraag van dit vak is: How can established companies become more entrepreneurial?
17-09-2020 HC 2
Corporate entrepreneurship is an imperative and yet a challenge for established companies. Het is
aan de ene kant wel een must, maar waarom is het aan de andere kant een uitdaging. Ook worden
de kritische factoren van corporate entrepreneurship genoemd. Corporate entrepreneurship is nodig
omdat de omgeving van bedrijven continu verandert. In de praktijk zien we dat alle gevestigde en
grote bedrijven een focus hebben op innovatie en entrepreneurship. Dit is voor zowel hightech als
medium- en lowtech bedrijven het geval. Echter lukt het maar een klein aantal bedrijven om
werkelijk echt innovatief en entrepreneurial te zijn.
De hoofd uitdaging is: How to protect the traditional successful business and simultaneously to
engage in radical innovation? Er wordt hierbij dus gekeken naar het verleden (traditionele
succesformule) en naar de toekomst (innovatie). Het is erg moeilijk om beide toe te passen omdat
,bedrijven zich focussen op dingen waar ze goed in zijn en daarnaast vereisen innovatie en nieuwe
dingen doen en ander soort management en organisatie aanpak.
Entrepreneurial bedrijven hebben zo’n mindset en dynamische structuren nodig. Goed management,
accountability en reliability zijn kenmerken van established bedrijven, maar (kunnen) leiden tot
inertia. Het successyndroom leidt meestal tot inertia en dat werkt tegen op innovatie en
entrepreneurship.
Grote bedrijven kunnen overleven door: Corporations have to dismantle bureaucracies to survive.
Economies of scale are giving way to economies of scope, finding the right size for synergy, market
flexibility and, above all, speed. To survive, big companies today are all deconstructing themselves
and creating new structures, many as autonomous units.
Entrepreneurial orientation the key drivers for success:
Innovativeness
Risk-taking
Pro-activeness
Competitive aggressiveness
Internal autonomy
Corporate entrepreneurship is about enhancing entrepreneurial and innovative activities in already
established companies. However it is rather
difficult and challenging to make a shift and
become really entrepreneurial. When a company
wants to be entrepreneurial, it has to make
changes in all directions, that can be seen in the
following figure
Organizational architecture is based on 4 pillars:
Leadership & management
Culture
Structure
Strategies
These pillars are going to be discussed in de next lectures.
22-09-2020 HC 3
Innovation is key to entrepreneurial behavior.
Innovation is being new. There are different types of innovation:
product, service, process, market, incremental, radical, sustaining and
disruptive.
The main challenge for leading companies is how to protect the
traditional successful business and to engage in radical innovation at the same time.
According to Clayton Christensen (HBS): Failure to adapt to disruptive innovation is not the result of
bad management, but a result of good management. This is the innovator’s dilemma and can be
explained with the following: Leading companies have already an established customer base and
depend on their existing customers and investors for resources and they listen closely to these
, customers and investors, and create new products & services to meet their needs and kill ideas for
which there is little need. This is the definition of good management, but there is a downside.
There is a difference between sustaining and disruptive innovation. Sustaining innovation improves
the product’s performance based on the features valued by mainstream customers. Disruptive
innovation often involves lower performance in many product features. Sustaining innovation is
driven by existing market demand but can ultimately fail and disruptive innovation starts in a niche
market that is neglected by the company but can grow to be a successful market. The current leading
company can miss opportunity.
Het is voor een bedrijf erg moeilijk om innovatief te zijn en nieuwe kansen te zien. Om dit te
begrijpen moeten we eerst kijken naar Value Network; the context within which an organization is
established to get what it values. Bestaande bedrijven zitten achter de omzet van de hoofdklanten
aan, het hele bedrijf is daarop ingesteld. Op basis van deze vereisten worden ook nieuwe
resource/allocation en investeringen beoordeeld.
Disruptive innovation can be managed:
1. Have a spin-off
2. Match its size with its market
3. Plan to fail early and inexpensively
4. Use the resource only
5. It is a marketing challenge
Large companies have to engage in radical innovation, because it is the ONLY way to keep up with
rapid technological change and innovation, and to be prepared for disruptive innovation.
Disruptive innovation leads to:
Shifts in the industry landscape (Nokia -> iPhone)
Technological convergence: several technologies converging into one (mobile phone)
Disrupting the competitive advantage of existing companies, even if these companies have
been market leaders
Difference between disruptive and radical innovation Disruptive innovation occurs when new
entrants challenge incumbent firms, often despite inferior resources. Disruptive innovation occurs
not by the use of innovative technology alone, but rather in combination with business model
innovations. Radical innovation occurs internally within organizations, and involves the creation of
new knowledge or successful commercialization of completely novel products and ideas.
A business model is defined as ‘the rationale of how an organization create, delivers and captures
value’. Also a business model is the way the company operates and delivers value to customers.
These are all the core aspects in the business: strategies, target customers, business processes,
product and service offerings, organizational structures, business and management practices, and
operational processes. So when we are talking about business model innovation it is about changing
the way the company operates and/or delivers value and/or products/services to its customers.
Types of innovation Innovation intensity
