Department of Software Engineering

Dr. Amna Iftikhar

Lecture # 04, 05 and 06
What is Corporate Entrepreneurship?
 Definition:
Entrepreneurial action within an established organization
aimed at innovation, growth, and competitive advantage.
 Why Corporate Entrepreneurship Matters:
 Encourages innovation and creativity within structured
organizations.
 Drives growth and diversification in competitive markets.
 Prevents the loss of talented employees seeking self-
actualization elsewhere.
 Key Benefits:
 New product development and market expansion.
 Increased productivity and reduced costs.
 Adaptability to hypercompetitive environments.
Causes for Interest in Corporate Entrepreneurship

1. Increasing interest in “doing your own thing” and doing

it on one’s terms.
2. New search for meaning and impatience has caused
more discontent in structured organizations.
3. Organizations are encouraging corporate
entrepreneurship i.e. stimulating, and capitalizing on,
employees who think that something can be done
differently and better.
4. New business venturing (corporate venturing) - The
creation of a new business within an existing
organization.
Key Elements of Corporate
Entrepreneurship
 New Business Venturing (Corporate Venturing):
 Creation of new businesses within an organization either by redefining/new markets/new
units(autonomous).
 Examples: New markets, innovative products, or autonomous units.
 Pakistani Example: Jazz’s National Incubation Center: Supports startups by fostering innovation and
digital solutions within its telecom network.
 Innovativeness:
 Focus on product/service innovation and technology development.
 Includes: New product development, production methods, and improvements.
 Pakistani Example: Careem Pakistan: Introduced ride-hailing technology tailored to the local market.
 Self-Renewal:
 Organizational transformation through strategic and structural changes.
 Examples: Redefining business concepts, reorganization, and system-wide innovations.
 Pakistani Example: HBL’s Digital Transformation Initiative: Renewed focus on digital banking to meet
customer needs in a tech-driven era.
 Proactiveness:
 Bold, aggressive initiatives in pursuing opportunities and experimenting.
 Examples: Leading in introducing new products and competitive advancements.
 Pakistani Example: Telenor Pakistan: Actively leads in mobile financial services like Easypaisa to promote
digital payments.
Entrepreneurship
 Definition: Involves starting and running one's own
business, typically with a focus on identifying new market
opportunities, creating innovative products or services, and
taking on the risks of ownership.
 Environment: Usually occurs in small or new businesses,
often in startups.
 Ownership: The entrepreneur owns the business and has
full control over its operations.
 Risk: Entrepreneurs face higher personal financial risks as
they invest their own money and resources.
 Flexibility: Entrepreneurs have full autonomy in decision-
making, allowing them to be more agile and adaptive to
market changes.
Corporate Entrepreneurship
(Intrapreneurship):
 Definition: Refers to entrepreneurial activities within an
established company, where employees (intrapreneurs)
innovate, take risks, and work to create new products or services
within the organization.
 Environment: Occurs within large, established companies or
corporations.
 Ownership: The organization or company owns the business,
and intrapreneurs work within the existing corporate structure.
 Risk: Intrapreneurs take on less personal financial risk since
they are working within a larger organization's safety net.
 Support: Intrapreneurs have access to the resources,
infrastructure, and support systems of the corporation, which
can reduce the challenges of starting from scratch.
Sustainable Entrepreneurship
Sustainable entrepreneurship focuses on preserving nature, life support, and
community while pursuing opportunities for economic and non-economic gains.
These gains include benefits to individuals, the economy, society, and the
environment.
 Key Drivers:
 Knowledge: Awareness of the natural environment (earth, biodiversity, ecosystems) and market
knowledge is critical in identifying opportunities for sustainable ventures.
 Motivation: Entrepreneurs must be driven to create value not just for themselves but also for others
and society.
 Types of Gains:
 Economic: Employment opportunities, revenues for governments.
 Environmental: Reduced pollution, improved air/water quality, better living conditions.
 Social: Improved child survival, life expectancy, education, and equal opportunity.
 Example:
 Entrepreneurs recognizing the need for hybrid stoves in developing countries to reduce household
pollutants while preserving traditional cooking methods.
 Idealistic Yet Realistic:
 Entrepreneurial actions can be used for both positive (building communities) and negative (harming
the environment) purposes. The goal is to use entrepreneurial action for the good of society and the
planet.
 Example:Eco-Friendly Brick Kilns:
Triple Bottom Line: People, Planet,
Profit
A framework for measuring business success beyond financial gains by focusing
on social, environmental, and economic impacts.
Key Components:
 People:
 Focus on community well-being and employee rights.
 Example (Pakistan): Telenor Pakistan runs programs like “Khud Se Khuda
Tak,” empowering women in rural areas through connectivity and education.
 Planet:
 Reducing carbon footprints and promoting renewable energy.
 Example (Pakistan): Reon Energy Solutions implements solar projects for
industries, reducing reliance on fossil fuels.
 Profit:
 Ensuring financial sustainability while contributing to society.
 Example (Pakistan): Packages Limited maintains profitable operations while
promoting environmentally friendly paper products.
Characteristics of Sustainable
Entrepreneurship
 Long-term Vision:
 Building businesses with a focus on future generations.
 Example: Khaadi invests in sustainable fabric production and
promotes artisan skills preservation.
 Stakeholder Engagement:
 Collaborating with employees, customers, and communities.
 Example: Engro Corporation works with local communities to improve
education and healthcare.
 Ethical Practices:
 Ensuring transparency, fairness, and responsibility.
 Example: Nestlé implements ethical sourcing programs for farmers.
 Innovation-Driven:
 Developing creative, eco-friendly solutions.
 Example: Bykea integrates affordable and sustainable transportation
options.
Principles of Sustainable
Entrepreneurship
 Focus on Sustainable Solutions:
 Designing products/services to minimize harm.
 Example: Ecolean produces lightweight and recyclable food
packaging.
 Integrate Environmental and Social Goals:
 Aligning business objectives with societal and ecological
needs.
 Example: Engro Energy focuses on solar power in rural
Sindh.
 Measure Success Beyond Profits:
 Evaluating business impact on people and the planet.
 Example: Shan Foods invests in employee welfare and
community education programs.
Benefits of Sustainable
Entrepreneurship
 Positive Environmental and Social Impact:
 Businesses help improve lives and preserve nature.
 Example: Careem fosters social inclusion by hiring diverse
riders, including women.
 Long-term Profitability and Brand Loyalty:
 Sustainable practices earn customer trust.
 Example: Khaadi gains global recognition for ethical fashion.
 Contribution to Global Sustainability Goals:
 Helping achieve SDGs like clean energy and decent work.
 Example: National Incubation Center (NIC) supports green
startups.
Challenges of Sustainable
Entrepreneurship
 Higher Initial Costs:
 Eco-friendly systems require investment.
 Example: Small farmers struggle to adopt sustainable
irrigation systems.
 Balancing Profit and Sustainability:
 Maintaining profitability while adopting sustainable goals.
 Example: Artistic Milliners works to balance denim
production with water recycling.
 Regulatory and Market Constraints:
 Navigating government policies and market competition.
 Example: Renewable energy companies face delayed policies
and subsidies.
Sources of New Ideas for
Entrepreneurs
Entrepreneurs can generate new business ideas from a
variety of sources. Some of the most fruitful include:
 Consumers
 Existing Products and Services
 Distribution Channels
 The Federal Government
 Research and Development
1. Understanding Customer Needs:
 Entrepreneurs should listen to potential customers, paying attention to
unmet needs and desires.
 Market Research:
 Informally monitor consumer preferences or formally gather feedback
through surveys, focus groups, etc.
 Example:
 An entrepreneur can create a new product based on feedback from
consumers, identifying a gap or need in the market.
2. Improving Existing Products:
 Analyze existing products/services in the market and identify ways to
improve upon them.
 Example: Sam Walton observed successful store practices to implement
at Walmart.
3. Distribution Channels as Idea Sources:
 Distributors and salespeople have valuable market insight and may
suggest new product ideas.
 Example: A department store salesclerk suggested a color change to
hosiery, leading to increased sales.
4. Federal Government as a Source of Ideas:
 Patent Office files contain ideas for new products.
 Example: Government regulations can inspire new
products, such as first-aid kits in response to OSHA
regulations.
5. Research and Development:
 Entrepreneurs' own R&D efforts, whether formal or
informal, often lead to successful innovations.
Methods of Generating Ideas for
New Ventures
Entrepreneurs can use various methods to generate and evaluate new ideas:
 Focus Groups
 Brainstorming
 Brainwriting
 Problem Inventory Analysis
 Each method offers unique ways to stimulate creativity and uncover potential
business opportunities.
 Focus Groups
 Description:
 A group of 8-14 people discusses a product/service idea in-depth, guided by a
moderator.
 Purpose:
 To generate and evaluate new product ideas, and to screen initial concepts.
 Example:
 A focus group of women suggested a “warm and comfortable slipper,” leading to a
successful product development.
Brainstorming & Brainwriting
 Brainstorming:
 A creative group process where no idea is too wild, with the
aim of generating a large quantity of ideas.
 Rules: No criticism, encourage freewheeling, aim for
quantity, and build upon others’ ideas.
 Example: A large commercial bank used brainstorming to
create a journal for its industrial clients.
 Brainwriting:
 A written form of brainstorming where participants write
down ideas and pass them around, allowing for more time
and silent thought.
 Example: A group of six people each contributes three ideas
every five minutes, which then circulate among the group.
Problem Inventory Analysis
 Description:
 Consumers are given a list of problems within a product
category and asked to identify issues in existing products.
 Purpose:
 To identify product ideas that address these problems or
improve existing offerings.
 Example:
 In the food industry, identifying problems like taste or cost
led to innovative product solutions, although not every
identified problem leads to a successful business opportunity.
Creative Problem Solving
 Creativity in Entrepreneurs:
 Essential for success but tends to decline with age, education,
and lack of use.
 Declines in stages: begins in school, continues through the
teens, and progressively decreases into the 30s, 40s, and 50s.
 Factors Hindering Creativity:
 Perceptual: Limited ways of thinking or seeing problems.
 Cultural: Societal norms that restrict unconventional ideas.
 Emotional: Fear of failure or rejection.
 Organizational: Bureaucracy and rigid structures.
 Unlocking Creativity:
 Creative problem-solving techniques can help reignite
innovation and generate fresh ideas.
1. Brainstorming
 Widely used for idea generation and creative problem-solving.
 Begins with a problem statement that is neither too broad nor too
narrow.
 Rules:
 8–12 participants, no experts in the problem area.
 All ideas are recorded, no criticism allowed during the session.
2. Reverse Brainstorming
 Focuses on finding faults by asking: “In how many ways can this idea
fail?”
 Goal: Identify potential weaknesses and discuss ways to overcome
them.
 Useful for stimulating innovative thinking by focusing on the negative
aspects of an idea.
3. Gordon Method
 Starts with the group unaware of the exact problem, preventing bias
from preconceived notions.
 Process:
 Begin with a general concept and generate ideas.
 Gradually reveal the actual problem, then refine solutions based on group input.
4. Develop new ideas through a list of related questions or
suggestions.
 Key Questions to Guide Idea Development:
 Put to other uses: New ways to use as-is or modified?
 Adapt: What else is like this? What could be copied?
 Modify: Change form, shape, or meaning?
 Magnify: Add, exaggerate, duplicate?
 Minify: Substitute, condense, streamline?
 Substitute: Different material, process, or place?
 Rearrange: Interchange components, change layout?
 Reverse: Turn ideas upside down, reverse roles?
 Combine: Blend, merge, or combine different elements?
5. Free Association
 Simple technique for generating new ideas.
 Process:
 Start with a word/phrase related to the problem.
 Add new words to create a chain of ideas.
 Eventually, a new product/service idea emerges.
6. Forced Relationships
 Develop new ideas by forcing relationships between
product combinations.
 Five-Step Process:
 Isolate the elements of the problem.
 Find relationships between these elements.
 Record relationships in an orderly form.
 Analyze these relationships to identify ideas or patterns.
 Develop new ideas from these patterns.
 Example: Combining paper and soap.
7. Collective Notebook Method
 Group-based idea generation by regularly recording
thoughts.
 Process:
 Distribute a small notebook with the problem statement.
 Participants record ideas 1–3 times a day for a week.
 Summarize and rank ideas for a final creative discussion.
8. Attribute Listing
 List the attributes of an item or problem.
 Process:
 Examine each attribute from various viewpoints.
 Combine unrelated objects to create a new product/service that better addresses a
need.
9. Big-Dream Approach
 Think big and dream about the problem and its solution.
 Process:
 Record and explore every possible idea without constraints.
 Conceptualize ideas without considering limitations until a workable form emerges.
10. Parameter Analysis
 Involves parameter identification and creative synthesis.
 Steps:
 Parameter Identification: Analyze variables to determine their importance.
 Creative Synthesis: Examine relationships between parameters and develop solutions
based on these relationships.
Types of Innovation
Innovation can take various forms, depending on how it is applied, what it improves, and
the impact it has on businesses and society. Here are the different types of innovation,
supported by relevant examples:
1. Product Innovation
 Definition: Product innovation refers to the introduction of a new or significantly
improved product that offers enhanced features, functionalities, or user experience.
 Example: Apple’s iPhone – The introduction of the iPhone in 2007 was a major product
innovation that combined a phone, music player, camera, and web browser into one
device. It revolutionized the mobile phone industry.
 Advantages: Provides differentiation in the market, attracts new customers, and boosts
sales.
2. Process Innovation
 Definition: Process innovation involves improving the methods or processes by which a
product is made or delivered, often resulting in increased efficiency, reduced costs, or
improved quality.
 Example: Toyota’s Production System – Toyota’s introduction of lean manufacturing
techniques, which emphasized efficiency, quality, and reducing waste, revolutionized the
automotive manufacturing industry.
 Advantages: Reduces operational costs, improves productivity, and increases profitability.
3. Business Model Innovation
 Definition: Business model innovation refers to changes in the way a
company creates, delivers, and captures value. This could involve new
ways of generating revenue or new strategies for interacting with
customers.
 Example: Netflix – Netflix transitioned from a DVD rental service to a
streaming platform, which disrupted the traditional cable and movie
rental business models.
 Advantages: Can create new revenue streams, improve customer
satisfaction, and disrupt existing industries.
4. Organizational Innovation
 Definition: Organizational innovation focuses on new methods in
business practices, workplace organization, or external relations. It
aims to improve the company’s internal efficiency and overall
performance.
 Example: Google’s Work Culture – Google is known for its innovative
organizational practices, such as offering flexible work environments,
promoting creativity, and encouraging employee collaboration.
 Advantages: Enhances employee engagement, productivity, and the
company’s overall culture, leading to innovation and better outcomes.
5. Market Innovation
 Definition: Market innovation refers to identifying and tapping
into new markets or new segments of an existing market. It can
involve targeting previously underserved customers or creating
demand in an entirely new market.
 Example: Tesla’s Electric Cars – Tesla’s market innovation has
been in creating and marketing electric vehicles to a mass market,
where electric vehicles were previously considered niche products
for environmental enthusiasts.
 Advantages: Expands market reach, creates new customer bases,
and drives business growth.
6. Service Innovation
 Definition: Service innovation refers to the introduction of new or
improved services that provide customers with enhanced
experiences, efficiency, or added value.
 Example: Uber – Uber’s innovation in the transportation service
industry introduced an app-based platform that connects
passengers with drivers, offering convenience, affordability, and
efficiency.
 Advantages: Can drastically improve customer satisfaction, create
new service offerings, and often disrupt existing industries.
7. Social Innovation
 Definition: Social innovation involves the development
of new strategies, concepts, or ideas that address social
challenges or improve societal well-being.
 Example: Grameen Bank – Founded by Nobel
Laureate Muhammad Yunus, Grameen Bank’s
microfinance model is a social innovation that provides
small loans to impoverished people in Bangladesh to
start businesses and improve their living standards.
 Advantages: Addresses societal problems, improves
quality of life, and often leads to significant social
change.
Levels of Innovation
1. Breakthrough Innovation
 Uniqueness: Most unique and revolutionary.
 Examples: Penicillin, steam engine, airplane, computer, the
Internet, nanotechnology.
 Impact: Often forms the foundation for future innovations.
 Protection: Patents, trade secrets, copyrights.
2. Technological Innovation
 Uniqueness: Significant but not as groundbreaking as
breakthrough innovations.
 Examples: Personal computer, flip watch, jet airplane, drug
screening systems.
 Impact: Advances in product/service/market areas.
 Protection: Generally requires protection.
3. Ordinary Innovation
 Uniqueness: More frequent and incremental.
 Examples: Footless pantyhose by Sara Blakely (Spanx),
sticky gloves for yoga by Martha Aarons.
 Impact: Extends or improves existing innovations with
better market appeal.
 Focus: Market pull (driven by customer needs).
Distinction Between Invention
and Innovation
 While invention and innovation are often used interchangeably, they
represent distinct concepts in the realm of business, technology, and
entrepreneurship.
Invention:
 Definition: An invention refers to the creation of a completely new
product, process, or concept that did not exist before. It involves novel
ideas or the discovery of something that is entirely original.
 Key Characteristics:
 New and original concept.
 Can be a product, technology, method, or process.
 May be a scientific or technological breakthrough.
 It does not necessarily need to be commercially viable at first.
 Example: Thomas Edison’s invention of the light bulb was a
groundbreaking idea that created a new way to produce artificial light.
Innovation:
 Definition: Innovation, on the other hand, refers to the process
of taking an invention or a new idea and transforming it into a
marketable product or service that provides value to customers
or society. It is the practical application of an invention or idea.
 Key Characteristics:
 Focused on creating value, either through a new product or improving
an existing one.
 Involves commercialization or the introduction of a new method to
improve efficiency, customer experience, or business performance.
 It is the process that brings ideas into action, often with improvements
over existing solutions.
 Example: The smartphone is an innovation. While the mobile
phone and touchscreen technology existed before, combining
these elements into a powerful, portable, multi-functional device
with applications for a wide range of purposes revolutionized the
communication and technology industries
Difference Between Innovation,
Invention, and Entrepreneurship
Term Definition Example
The process of improving
Solar energy solutions
Innovation existing products or
like Reon Energy.
processes to add value.
Creating a completely
new product, concept, or Development of LED
Invention
idea not previously light bulbs.
available.
Applying creativity and
Founding Careem to
innovation to start and
Entrepreneurship address transportation
grow a business, taking
gaps.
on financial risks.