
Intrapreneurship Management
Description
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Develop and deploy industry-leading ideas with this groundbreaking management toolkit
The universal modern image of an innovator is a technological entrepreneur, who conceives and develops their groundbreaking ideas outside an existing institution and only subsequently builds infrastructure around it. In reality, however, the bulk of technological innovation comes through Intrapreneurship: innovation that takes place inside an existing organization, taking advantage of the institutional support and economies of scale provided by continuing enterprises. Intrapreneurship Management is an approach that cultivates these internal innovations and the knowledge workers who produce them.
Intrapreneurship Management: Concepts, Methods, and Software for Managing Technological Innovation in Organizations offers a guide to this approach, its challenges, and its rewards. Beginning with a simple yet flexible definition of innovation-an idea implemented with impact-it analyzes the processes and organizational tools by which novel ideas can be fostered, supported, and applied, producing industry-leading firms that maximize their internal talent. It also provides access and tools for using IntrapreneurshipREADINESSNavigator (IRN), a unique software already deployed successfully in over 150 innovation projects.
Intrapreneurship Management readers will also find:
- Case studies of technological innovations within a range of organizations
- A look forward to future challenges facing innovative organizations in the 21st century
- Detailed treatment of subjects including innovation marketing, systematic creativity, and developing innovative organizational culture
Intrapreneurship Management is ideal for intrapreneurs, their managers, and any professionals working in industries driven by technological innovation, as well as researchers and students of management. A trial version of the IntrapreneurshipREADINESSnavigator (IRN(c)) software will be available at https://irn.intranovator.com; for a full version, please contact administrator@intranovator.com.
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Persons
RAINER HASENAUER, PhD, is Honorary Professor Marketing and Lecturer in Marketing of High-Tech Innovation and Technology at the Vienna University of Economics and Business, Austria. He is also a co-founder of the HiTec Marketing Research Association in Vienna and the Cross Border HiTec Center, for which he still serves as senior advisor. He has researched and published extensively in high-tech innovation and management, and serves on the advisory boards of numerous tech investment groups and start-up incubators.
OLIVER YU, PhD, is Founder and CEO of a technology consulting firm and Executive-in-Residence at San Jose State University, USA. He has held senior positions at SRI International and Electric Power Research Institute, and served in leadership roles for both the IEEE Technology and Engineering Management Society and the International Society of Innovation Methods.
Content
About the Authors xi
Preface xiii
Acknowledgments xiv
1 Introduction and Overview 1
1.1 Innovation: A Simple Yet Comprehensive Definition 1
1.2 Special Importance of Intrapreneurship Management 3
1.3 Focus, Approaches, Emphases, Theme, and Major Contributions of the Book 4
1.4 Overview of Book Organization 6
2 The Internal Innovation or Intrapreneurship Process 13
2.1 The Internal Innovation Process as an Interactive System 13
2.2 Major Innovation Participants of Intrapreneurship 15
2.3 A Common Investment Perspective of All Innovation Participants 16
2.4 Specific Applications of the Investment Perspective 18
2.5 Alignment of Individual Investment Perspectives for Innovation Implementation 21
2.6 Generic Challenges to Intrapreneurship Caused by a Lack of Alignment of Investment Perspectives 21
2.7 Major Changes in the Business and Natural Environment and Special Challenges to Intrapreneurship in the 21st Century 23
2.8 Key Elements of Intrapreneurship Management 26
3 Understanding Human Needs and Wants as Driving Forces of Intrapreneurship 31
3.1 Overview of Human Needs and Wants 31
3.2 General Observations of Human Needs and Wants 35
3.3 Major Factors Influencing the Intensity of Needs and Wants 38
3.4 Special Applications to Intrapreneurship 39
3.5 Graphical Representations of Human Needs and Wants: The Maslow Hierarchical Model and a New Perspective 41
3.6 Application to Intrapreneurship Management: An Integrated Value Framework for Both the Individual and the Organization 48
4 A Unified Approach to Innovation Marketing with Applications to Organization Readiness in Intrapreneurship Management 53
4.1 A Broad Definition and a Supply and Demand Perspective of Innovation Marketing 54
4.2 A Unified Approach to Innovation Marketing 55
4.3 Application of the Unified Approach to Innovation Marketing in Intrapreneurship: Organization Readiness Assessment 61
5 Applying the Unified Approach of Innovation Marketing to External Adopter for Market Readiness Assessment 79
5.1 Interaction Between Market Readiness and Technology Readiness 79
5.2 Major Considerations of Marketing to External Adopter 82
5.3 Market Readiness 86
5.4 Development of Market Readiness Indicators 93
6 Innovative Product Development: Creative Problem-Solving and Technology Readiness Assessment 99
6.1 Introduction 99
6.2 Main Barriers to Continued Development of Creativity 100
6.3 Creative Problem-Solving as a Trainable Skill 102
6.4 General Approaches and Tools for Creative Problem-Solving 103
6.5 Team-Based Creative Problem-Solving Approach by the Enneagram (Based on contributions by Matt Schlegel) 107
6.6 Systematic Approach for Creative Problem-Solving as Represented by TRIZ (Based on contributions by D. Daniel Sheu) 113
6.7 Exploring Nescience for Creative Problem-Solving 119
6.8 Artificial Intelligence and Creative Problem-Solving 122
6.9 Innovative Product Development and Technology Readiness Assessment 123
7 Intrapreneurship Readiness Assessment: Methodology 131
7.1 General Methodological Approach for Readiness Assessment 131
7.2 Organization Readiness 134
7.3 Market Readiness 137
7.4 Technology Readiness 143
7.5 Special Application of the Readiness Assessment Process 152
8 Intrapreneurship Readiness Assessment: Software Outline 155
8.1 Overall Structure and Key Functions 155
8.2 User Interface 158
9 Summary and Outlook 173
9.1 Overall Summary 173
9.2 Future Outlook and Potential Research Areas 175
Appendix A Case Studies of Innovative Companies 177
Appendix B Selected Cases for Innovation Project Readiness Assessment 191
Index 207
1
Introduction and Overview
The purpose of this book is to provide practical concepts, methods, tools, and software for developing and managing Internal Innovators, or Intrapreneurs, in organizations, as well as for academicians and students of Intrapreneurship Management. In this introductory chapter, we will first develop a simple yet comprehensive definition of innovation that emphasizes implementation and impact. We will then discuss the basic differences between the Innovator who develops and implements an innovation as an Entrepreneur and an Intrapreneur, or Internal Entrepreneur in an existing organization, and the special importance of Intrapreneurship and its management not only for organizations but also for society as a whole in the 21st century, which is the basic motivation for this book. We will next summarize the focus, approaches, emphases, and major contributions of the book to the study of Intrapreneurship Management. Finally, we will present an overview of the organization of the remaining chapters of the book.
1.1 Innovation: A Simple Yet Comprehensive Definition
Innovation is a term with many definitions. For example, the Merriam-Webster dictionary [1] defines innovation as a new idea, method, or device. Another authoritative source, the Organization for Economic and Cooperation and Development (OECD), provides a more detailed definition [2]: "An innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations."
However, both of these widely accepted definitions have their limitations. The dictionary definition fails to distinguish innovation from invention, which is also a new idea, method, or device. On the other hand, the OECD definition is too restrictive, as innovation is more than just products, processes, or methods. There are important theoretical innovations such as Newtonian laws and evolutionary theory that have greatly improved our understanding and management of the physical environment. There are also philosophical and ideological innovations like Confucianism, democracy, and Marxism that have fundamentally influenced our sociopolitical systems. Furthermore, there are innovations in literature and the arts that have significantly broadened our enjoyment and appreciation of creativity.
Given the limitations of traditional definitions, we offer a simple yet comprehensive definition:
Innovation is an idea implemented with significant impact.
This definition emphasizes that an idea, whether new or existing, is the starting point for innovation. However, an idea alone is not enough to qualify as innovation. The idea must be implemented in a way that achieves significant impact through widespread and/or long-lasting acceptance by final adopters, which is often a complex and challenging process. The emphasis on implementation and impact is the key differentiator between our definition and conventional ones. It also highlights a significant challenge of innovation: to achieve significant impact, large investments of effort are often required to understand market needs, build team, seek support, develop product, and attract adopters, while these investments carry major risks that they may not yield the desired results. This challenge is often recognized but not fully appreciated by many potential innovators, leading to discouraging early failures. The central objective of innovation management is to effectively address this challenge.
Moreover, the idea to be implemented need not be limited to new or improved products, processes, or methods, although they are the main focus of this book. It can also be a new concept or a newly uncovered concept for the innovator, organization, or adopter. For instance, the integration of economic benefit with ecologic and societal benefits as the value framework adopted in this book is an innovation that recognizes new values for all innovation participants. The development and expanding adoption of Environmental, Social, and Governance (ESG) scores for investment strategy is one form of implementing this conceptual innovation.
Innovations may be implemented through various means including market mechanisms and voluntary choices by individual adopters, as well as mandatory government regulations, such as automobile emission control. The differences in implementation can affect the effective management of the innovation process. Nevertheless, in a democracy, government regulations may be viewed as collective choices made through a political market mechanism.
Finally, the effectiveness of an innovation is measured by its impact, which varies in magnitude and duration. There are many measures of magnitude, including the number of adopters, the integrated value of the innovation, and other tangible or intangible benefits to the Innovator or the adopter. The duration of an innovation measures whether its impact is transitory or long-lasting. The total impact or effectiveness of an innovation can be measured by integrating its magnitude over time. As impact can be tangible or intangible and innovations are generally evolving and cumulative, quantifying the impact of a single innovation is an important yet often difficult task.
1.2 Special Importance of Intrapreneurship Management
It is widely acknowledged that innovation has been the driving force behind human civilization. Following major breakthroughs in information, communications, and biomedical technologies, along with the rapidly rising global trend of high-tech startups, innovations, particularly those in technology and management methods, have generated unprecedented interest worldwide since the 1970s. Today, practically all major organizations, including governments, corporations, and educational institutions, are actively promoting the importance of innovation, motivated by its much-observed impacts on economic productivity and competitiveness, as well as employment opportunities. There is a popular belief that future innovations, if well managed, can provide solutions not only to many economic problems but also to sociopolitical difficulties around the world.
However, despite the attention and glamour, innovators as Entrepreneurs who develop and implement innovations through the founding of independent organizations are still a small minority of the workforce, mainly because of their necessary yet uncommon personality traits of extraordinary risk-taking, determination, and persistence.
On the other hand, most people work for existing organizations, including those rising from startups. At the same time, all organizations need innovation to survive and thrive. By sheer numbers, most innovations have been and will continue to be developed by innovators within organizations, or Intrapreneurs. In fact, an in-depth analysis of the top 30 innovations between 1989 and 2009 [3] shows that, although many Entrepreneurs provided seminal ideas, out of the 30 top innovations, 22 were initially conceived and 23 were fully developed by Intrapreneurs in existing organizations, and 16 achieved full impact through Intrapreneurs in competitor organizations.
Nevertheless, because Intrapreneurs are largely unsung heroes, their contributions have not attracted widespread public attention. Moreover, different from the intrinsically self-starting Entrepreneurs, Intrapreneurs generally need to be developed and managed in an organization. This development and management process is highly interactive and complex between the managers and employees of the organization. As a result, available business and technical literature lacks comprehensive and in-depth studies of the important but seemingly less tractable subject of how to effectively develop and manage Intrapreneurs or Intrapreneurship Management in an organization. Yet the importance of Intrapreneurship Management has become even more critical given the unprecedented changes in the 21st century in socioeconomic conditions, human aspirations, technological growth, and the physical environment, which pose major challenges and demand new thinking about innovation management in an organization. This special importance of effective Intrapreneurship Management has been the basic motivation for this book.
1.3 Focus, Approaches, Emphases, Theme, and Major Contributions of the Book
Focusing on developing and managing Intrapreneurs in 21st century organizations, this book primarily addresses innovations in technology, products (goods or services), and management methods that are implemented through market mechanisms based on individual choices or through government policies and regulations, with generally accepted measures of economic, ecologic, and societal impacts.
The book uses an integrated systems analysis approach to study the innovation process, especially in an organization, and develops a joint investment perspective to balance and align the values and risks of each innovation participant, including Intrapreneur, Internal Supporter, and Final Adopter, for investing time, effort, financial and other resources to develop and implement an innovative product for significant impact. The book further develops a new perspective on human needs and wants as the basis for assessing these investment values and risks through an integrated economic-ecological-equity (EEE) value framework.
For effective Intrapreneurship Management, the book focuses on the importance of marketing, which includes mutual...
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