Firnando Chau Review
The Content are:
Foreword
Preface
Introduction: The entrepreneurial economy
Part I: The practice of innovation
1. Systematic Entrepreneurship
2. Purposeful Innovation and the Seven Sources for Innovative Opportunity
3. Source: The Unexpected
4. Source: Incongruities
5. Source: Process Need
6. Source: Industry and Market Structures
7. Source: Demographics
8. Source: Changes in Perception
9. Source: New Knowledge
10. The Bright Idea
11. Principles of Innovation
Part II: The practice of entrepreneurship
12. Entrepreneurial Management
13. The Entrepreneurial Business
14. Entrepreneurship in the Service Institution
15. The New Venture
Part III: Entrepreneurial strategies
16. 'Fustest with the Mostest'
17. 'Hit them Where They Ain't'
18. Ecological Niches
19. Changing Values and Characteristics
Conclusion: The entrepreneurial society
Suggested readings
Index
--Start--
The Content are:
Foreword
Preface
Introduction: The entrepreneurial economy
Part I: The practice of innovation
Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned, capable of being practised. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. And they need to know and to apply the principles of successful innovation.
1. Systematic Entrepreneurship
2. Purposeful Innovation and the Seven Sources for Innovative Opportunity
3. Source: The Unexpected
i. The Unexpected Success
ii. The Unexpected Failure
iii. The Unexpected Outside Event
4. Source: Incongruities
i. Incongruous Economic Realities
ii. The Incongruity Between Reality and the Assumptions About It
iii. The Incongruity Between Perceived and Actual Customer Values and Expectations
iv. Incongruity Within the Rhythm or Logic of a Process
5. Source: Process Need
* Successful innovations based on process needs require five basic criteria:
1. A Self-contained Process
2. One “weak” or “missing” link
3. A clear definition of the objective
4. That the specification for the solution can be defined clearly
5. Widespread realization that “there ought to be a better way”, that is high receptivity.
3 Important Caveats
1. The need must be understood.
2. We may understand a process and still not have the knowledge to do the job.
3. The Solution must fit the way people do the work and want to do it.
6. Source: Industry and Market Structures
i. The Automobile Story
ii. The Opportunity
iii. When Industry Structure Changes
7. Source: Demographics
8. Source: Changes in Perception
i. “The Glass is Half Full”
ii. The Problem of Timing
9. Source: New Knowledge
i. The Characteristics of Knowledge-Based Innovation
* 2 Characteristics:
1) Longest Lead Time
- Emergence of new knowledge and its becoming applicable to technology;
- The new technology turns into products, processes, or services in the marketplace.
2) Convergences
ii. What Knowledge-Based Innovation Requires
iii. The Unique Risks
* 2 Important Implications
1) Science-based and technology-based innovators alike find time working against them.
2) Because the “Window” is much more crowded, any one knowledge-based innovator has far less chance of survival.
* The Shakeout
* The Receptivity Gamble
10. The Bright Idea
11. Principles of Innovation
i. The Principles of Innovation
ii. The Dos
1) Purposeful, systematic innovation begins with the analysis of the opportunities.
2) Innovation is both conceptual and perceptual
3) An innovation, to be effective, has to be simple and it has to be focused.
4) Effective innovations start small
5) A Successful innovation aims at leadership
iii. The Don’ts
1) Simply not to try to be clever
2) Don’t diversity, don’t splinter, don’t try to do too many things at once.
3) Don’t try to innovate for the future
* Three Conditions:-
1) Innovation is work. It requires knowledge. It often requires great ingenuity.
2) To succeed, innovators must build on their strengths. Successful innovators look at opportunities over a wide range.
3) Innovation is an effect in economy and society, a change in the behaviour of customers, of teachers, of farmers, of eye surgeons – of people in general.
* The Conservative Innovator, They are not “risk-focused; they are “opportunity focused”.
Part II: The practice of entrepreneurship
The entrepreneurial requires different management from the existing. But like the existing it requires systematic, organized, purposeful management. And while the ground rules are the same for every entrepreneurial organization, the existing business, the public-service institution, and the new venture present different challenges, have different problems, and have to guard against different degenerative tendencies. There is need also for individual entrepreneurs to face up to decisions regarding their own roles and their own commitments.
12. Entrepreneurial Management
* Existing Business
* The Public-Service Institution
* The New Venture
13. The Entrepreneurial Business
i. Misunderstanding that “Big Businesses Don’t Innovate”.
ii. Entrepreneurial Policies
Question: How can we make the organization receptive to innovation, want innovation, reach for it, work for it?
Answer:
1) Innovation, rather than holding on to what already exists, must be made attractive and beneficial to managers.
2) The importance of the need for innovation and the dimensions of its time frame must be both defined and spelled out.
3) There needs to be an innovation plan, with specific objectives laid out.
Question: What are specific objectives?
Answer:
1) A Systematic policy of abandoning whatever is outworn, obsolete, no longer productive, as well as the mistakes, failures, and misdirections of effort.
2) Make an existing business “greedy for new things”, to face up to the fact that all existing products, services, markets, distributive channels, processes, technologies, all have limited – and usually short – health and life expectancies.
3) The Business X-Ray furnishes the information needed to define how much innovation a given business requires, in what areas, and within what time frame.
4) Systematic Abandoment; the Business X-Ray of the existing business, its products, its services, its markets, its technologies; and the definition of innovation gap and innovation need – these together enable a company to formulate an entrepreneurial plan with objectives for innovation and deadlines.
iii. Entrepreneurial Practices
Managerial practices for existing business
1) Focusing managerial vision on opportunity
2) To generate an entrepreneurial spirit throughout its entire management group.
3) A Session – informal but scheduled and well prepared – in which a member of the top management group sits down with the junior people from research, engineering, manufacturing, marketing, accounting and so on.
iv. Measuring Innovative Performance
1) Builds into each innovative project feedback from results to expectations.
2) Develop a systematic review of innovative efforts all together.
3) Entrepreneurial management entails judging the company’s total innovative performance against the company’s innovative objectives, against its performance and standing in the market and against its performance as a business all together.
v. Structures
1) The new innovative, has to be organized separately from the old and existing.
2) There has to be a special locus for the new venture within the organization, and it has to be pretty high up.
3) A new innovative is best set up separately: to keep away from it the burdens it cannot yet carry.
4) Individual compensation, the returns on innovation.
5) A person or a component group should be held clearly accountable.
vi. Staffing
vii. The Don’ts
1) The most important caveat is not to mix managerial units and entrepreneurial ones.
2) Innovation had better not be “diversification”, because innovative efforts that take the existing business out of its own field are rarely successful.
3) Acquisitions rarely work unless the company that does the acquiring is willing and able within a fairly short time to furnish management to the acquisition.
14. Entrepreneurship in the Service Institution
i. Public-Service Institution & its obstacles
1) The institution is based on a “budget” rather than being paid out of its results.
2) Dependent on a multitude of constituents
3) Exist with their mission as a moral absolute rather than as economic and subject to a cost/benefit calculus.
ii. Entrepreneurial Policies
1) Needs a clear definition of its mission.
2) Needs a realistic statement of goals
3) Failure to achieve objectives should be considered an indication that the objective is wrong or at least defined wrongly.
4) Need to build into their policies and practices the constant search for innovative opportunity.
iii. The Need to Innovate
15. The New Venture
i. The Need for Market Focus
ii. Financial Foresight
iii. Building a Top Management Team
iv. “Where Can I Contribute?”
* The Need for Outside Advice
Part III: Entrepreneurial strategies
Just as entrepreneurship requires entrepreneurial management, that is, practices and policies within the enterprise, so it requires practices and policies outside, in the marketplace. It requires entrepreneurial strategies.
16. 'Fustest with the Mostest'
i. Creative Imitation
ii. Entrepreneurial Judo
17. 'Hit them Where They Ain't'
18. Ecological Niches
i. The Toll-Gate Strategy
ii. The Speciality Skill
iii. The Speciality Market
19. Changing Values and Characteristics
i. Creating Customer Utility
ii. Pricing
iii. The Customer’s Reality
iv. Delivering Value to the Customer
Conclusion: The entrepreneurial society
i. Innovation and Entrepreneurship are needed in society as much as in the economy.
ii. What will Not Work
iii. The Social Innovations Needed
iv. The New Tasks
v. The Individual in Entrepreneurial Society
Suggested readings
Index
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