Domino's Pizza

1
Defining Entrepreneurship
Corporate Entrepreneurship
Firms capabilities possessed to develop new
goods or services and manage the innovation
process
Invention
Creating or developing a new product or process
idea
Innovation
Creating a commercializable product from invention
Imitation
Adoption of innovation by a population of similar
firms
2
Successful Entrepreneurship
The key to success with entrepreneurship and
innovation is moving from the invention of ideas
to effective commercialization and acceptance in
the marketplace
3
Innovation and Competitive Advantage
Characteristics of Innovations which lead to...
Competitive Advantage
4
Innovation and Competitive Advantage
Commercially Exploitable with Present
Capabilities
Difficult for Competitors to Imitate
Competitive Advantage
Provides Significant Value to Customers
Timely
5
Appropriating Value from Innovation
The goal or end point is developing a system
which allows the firm to extract value
effectively from their internal innovative
capabilities
Value Appropriation from Innovation
6
Appropriating Value from Innovation
Cross-Functional Integration/ Design Teams
Value Appropriation from Innovation
Cross-functional design teams can help to break
down barriers to entrepreneurship within firms
7
Appropriating Value from Innovation
Barriers to Integration
Different Time Orientation
Interpersonal Orientation
Cross-Functional Integration/ Design Teams
Different Goal Orientation
Value Appropriation from Innovation
Formality of Structure
These factors tend to reduce the effectiveness of
Cross-functional integration or design teams
8
Appropriating Value from Innovation
Barriers to Integration
Different Time
Orientation
Interpersonal
Orientation
Cross-Functional Integration/ Design Teams
Different Goal
Value Appropriation from Innovation
Orientation
Formality of
Structure
Facilitators of Integration
These factors tend to increase the effective-ness
of Cross-functional integration or design teams
Shared Values
Leaders Vision
Budget allocation
Effective Communication
9
Appropriating Value from Innovation
Barriers to Integration
Different Time
Time to Market
Orientation
Interpersonal
Orientation
Cross-Functional Integration/ Design Teams
Different Goal
Value Appropriation from Innovation
Orientation
Product Quality
Formality of
Structure
Facilitators of Integration
Creation of Customer Value
Shared Values
Leaders Vision
Budget Allocation
Effective
Communication
10
Appropriating Value from Innovation
Barriers to Integration
Different Time
Time to Market
Orientation
Interpersonal
Orientation
Cross-Functional Integration/ Design Teams
Different Goal
Value Appropriation from Innovation
Orientation
Product Quality
Formality of
Structure
Facilitators of Integration
Creation of Customer Value
Shared Values
Leaders Vision
Budget Allocation
Effective
Communication
11
Cooperating to Produce Innovation
Strategic Alliances
Alliances can help to foster innovation by
combining the knowledge and resources of two or
more partners
Firms must focus on building knowledge,
identifying core competencies and developing
strong human resources to manage these projects
Firms can also give away their core competencies
by outsourcing to alliance partners rather than
developing their own capabilities over time
12
Acquiring Innovative Capability
Many firms now use acquisitions of other firms as
a substitute for developing innovations internally
This can reduce risk and lower costly RD
investments
The drawback is that firms can eventually lose
their ability to generate innovations internally
Many firms now use acquisitions of other firms as
a substitute for developing innovations internally
13
Small Firms and Innovation
Small firms have created most of the new jobs in
the U.S. in the 1990s
While large firms account for over 80 of the
worlds RD spending, individuals or small firms
are granted more than half of U.S. patents
Many small firms are created when employees leave
large firms to start their own businesses,
frequently continuing to interact with their
former firms to develop innovations and new
products