Corporate Entrepreneurship

or Intrapreneurship
Submitted to: Dr. Noor Muhammad

Salman Yousaf
Misbah Abbas
Shaheer Ahmad
Talha Khalil Sherani

Table of Contents
Company 1:......................................................................................................................................2
SAMSUNG......................................................................................................................................2
Skunk works of Samsung:...........................................................................................................2
Organizational structure:..............................................................................................................2
Encouragement of Intrapreneurship Environment:.....................................................................3
Corporate Entrepreneurship Process (Developing the Model):...................................................4
Learning Process (Know How and Know Why Concepts):........................................................5
Company 2:......................................................................................................................................6
GOOGLE.........................................................................................................................................6
Google X......................................................................................................................................6
Skunk Works At Google:.............................................................................................................6
Organizational Structure of Google:............................................................................................6
Learning Process:.........................................................................................................................7
Encouragement of Intrapreneurship Environment:.....................................................................7
Corporate Entrepreneurship Process: (Model)............................................................................8
1.

The Enabler Model........................................................................................................8

2. Leveraging Employees in Fostering Innovation..................................................................9

References......................................................................................................................................10

Company 1:
SAMSUNG

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Skunk works of Samsung:

Samsung has announced the creation of a new skunk works team that appears to be loosely
modeled on Google, although maybe not as far out there as what Google has done. The new
product innovation team will have more authority and independence because the main purpose
of the team isnt to develop single devices for any imminent results, but to develop solutions to
go with Samsungs manufacturing capabilities. According to sources, the core mission at this
early stage is to explore projects involving virtual reality, robotic telepresence, drones and robots,
three-dimensional printing, and unmanned vehicles. The team will reportedly work
independently of all other Samsung divisions and the normal corporate structure.
Sources indicate Samsung has pulled technicians, strategists and product managers from other
parts of the company to be part of the new unit. The new unit is being established as one step in
an attempt by Samsung to shift their business, something the company has recognized is needed
after the disappointing 2014 financial performance. According to one Samsung official,
Samsungs previous success was mostly due to releasing products that are competitive in
pricing. This is an old business formula. We need to constantly explore new ways to meet the
needs of people through innovation and updated technologies. This is why Samsung is
accelerating efforts to collaborate with governments and is putting more focus on developing
solutions embedded without components and technologies.
Samsung hopes the new unit will identify and develop solutions that will help people use the
technologies that Samsung produces to improve their daily lives.

Organizational structure:
Throughout 2012, Samsung Electronics continued to advance its practice of sustainable
management through responsible corporate governance. In addition to compliance with national
and international law, Samsung also employs a set of ethical standards and values that guide its
decision making processes and work procedures. Through a corporate governance structure that
centers on board of director engagement, the company works to ensure transparent, responsible
business management across all operations. Each policy and decision enacted by the board of
directors seeks to maximize corporate value and enhance shareholder rights and interests.
Specifically, the Samsung board of directors is responsible for the execution of all matters as
mandated by the Korean Commerce Act and the Samsung Electronics Articles of Incorporation,
including those delegated by the companys general shareholders meetings. The board also
makes important decisions on the companys management policies and oversees executive work
performance.
In 2012, Samsung Electronics launched an exhaustive program of organizational reform that
proactively addresses the changing global IT landscape. As a top priority of the organizational
reform, Samsung refined management structures in each business area to optimize capabilities
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throughout the entire company. Samsungs new organizational structure reflects the companys
refocused emphasis on three key business sectors: Consumer Electronics (CE), IT & Mobile
Communications (IM), and Device Solutions (DS). These reforms will help Samsung improve
upon its history of operational excellence, allowing for increased growth opportunities and
continued industry-leading innovation.
Samsung Electronics believes that its efficacy and success relies on its ability to create new
business, products, and technology. As a result, the company places a heavy emphasis on future
investments and patents. Samsung also believes in the power of constructive failures,
recognizing that challenges often serve as a catalyst for strategic problem solving and innovation
within the global marketplace. The company regards every challenge regardless of size as an
opportunity for knowledge building and growth. Through constant problem solving and creative
technological innovations, Samsung Electronics is committed to creating a more sustainable
future for the entire global community.

Encouragement of Intrapreneurship Environment:

Samsung pursues open, relationship-driven communication with stakeholders in order to
promote shared growth. Samsungs diversity of stakeholders includes shareholders, customers,
employees, NGOs, local communities, suppliers, mass media, and the government. Taking care
to match the appropriate communication channel with each group, Samsung carefully considers
each piece of feedback from stakeholders, and makes every effort to reflect lessons from the
feedback in the companys future corporate policies and actions. In order to facilitate effective
communication with stakeholders, Samsung Electronics has designated a specialized
communications department for various stakeholder groups. Each of these departments holds
forums, responds to inquiries, conducts surveys and runs advisory groups for its particular group
of stakeholders.
Samsung works to contribute to the improvement of communities in areas such as poverty
reduction, health promotion, environmental protection, and energy self-sufficiency. Samsung
Electronics now conducts studies on potential environmental and societal impacts whenever it
plans to develop a new product. Samsung takes care to ensure that its new products not only
make peoples lives more convenient and enjoyable but also contribute to making the global
community healthier.
By developing and launching energy-efficient products, Samsungs global offerings are designed
to address serious problems in many parts of the world such as shrinking water resources, scarce
power supplies, and accelerating climate change. Samsung will continue its dedication to
launching innovative products that have a positive impact on serious global issues while
simultaneously fulfilling consumer needs. Moving forward, the company plans to expand its use

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of the CSV model in order to drive value creation both within its business and among its
stakeholders.

Corporate Entrepreneurship Process (Developing the Model):

Samsungs Vision 2020 mantra, Inspire the World, Create the Future, guides its efforts to
create new value through technology optimization, growth engine development, and sustainable
management as well as to bring harmony of its stakeholders around the world.
The overarching vision that guides Samsung Electronics Vision 2020 framework is Inspire the
World, Create the Future. This vision expresses the companys commitment to creating a new
future that positively impacts the entire global community through innovations in technology,
products, and solutions while maximizing value creation for its customers, employees, and
society as a whole. Samsung Electronics has set goals to achieve annual sales of USD 400 billion
in 2020, placing its overall brand value among the global top 5. Three key strategic pillars inform
Samsungs strategy to accomplish this goal, namely: Creativity, Partnership and Great
People. Samsung is committed to operational excellence and innovation within its established
business areas. Similarly, the company is working to build capacity and expertise in new
business areas, including healthcare and biotechnology, to further increase its global
competitiveness. As a creative business leader in the global community, Samsung will continue
to contribute shared value for its stakeholders around the world. Samsung expanded its Medical
Equipment Team in 2012, leading to the development of the companys new Medical Equipment
Division. Backed by a strategic vision and commitment to social responsibility, the company will
continue to introduce innovation and creative solutions to the global Medical Equipment
marketplace. Samsung invests significantly in research and development, both in its traditional
areas of excellence and in new areas for potential growth. The company recognizes the important
pattern between investment in research and development and meaningful business outcomes. In
2012 alone, new product and service innovations contributed to annual sales of KRW 201 trillion
and operating profits of KRW 29 trillion. The company also received external recognition for
nonfinancial excellence in 2012, as Interbrand ranked Samsungs brand as the 9th most valuable
worldwide. In addition, Fortune magazine recognized Samsung as the 34th most admired
business entity in the world.

Learning Process (Know How and Know Why Concepts):

As part of its 2012 efforts to expand stakeholder engagement in discussions about the companys
policies and management, Samsung held a student CSR forum in Korea. The forum consisted of
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in-depth discussions about the companys social responsibility policies and ways of improving
them. The company also held a CSR Sharing Concert event that convened volunteers and
beneficiaries to both share past CSR accomplishments and discuss potential improvements in
future CSR direction and program content.
Samsung Electronics began doing business in Korea in 1969. Forty-three years later, Samsung
has expanded into 200 countries. Samsung attributes much of its success to its global network of
employees, whose creativity and innovation are engines for growth. The diversity of perspective
and expertise present at each of Samsungs nine regional headquarters ensures independent
strategic development and solutions that can be applied both locally and around the world
Leading the Global Market with Cutting-edge Technology & Quality Products Samsung
Electronics sold more than 406 million mobile phones in 2012, securing a position as the global
market leader with an overall share of 23.4%. Samsung also maintained its global market leader
positions in other key product areas, including TVs, monitors, semiconductors and digital
appliances. And will continue to lead the global market with cutting-edge technologies and
quality products.
(Kwon, June 28. 2013)

Company 2:
GOOGLE
Google X
One of the most mysterious, yet widely known secret labs out there is Google X, which is
overseen by co-founder Sergey Brin. The lab works on more than 100 "shoot for the stars" type

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ideas like space elevators, indoor mapping systems, self driving cars, and wearable computers.
The lab's at an undisclosed location in Northern California.

Skunk Works At Google:

Improved battery technology is something that would benefit just about every consumer piece of
hardware out there, from something as small as a smartwatch to something as large as an
automobile. Unfortunately, most battery advances at this point simply involve companies cutting
down the size of as many components as possible so they can cram in the biggest batteries they
can make. Tesla, which has as much to gain from improved battery technology as any company
in the world, is desperately trying to figure out how to move the market forward, and now it
sounds like Google is doing the same.
The secretive and experimental Google X lab is trying to develop new battery technology to
power its expanding universe of hardware products and emerging technology. While better
batteries could certainly make for a better Nexus phone, the report indicated that Google was
likely to push this technology across a wide variety of the less established industries it works in,
including its self-driving cars as well as more general healthcare, robotics, and communications
groups.

Organizational Structure of Google:

Organizations are changing, but are organizations changing their traditional structures? By and
large, the answer is yes, traditional organizational structures are still evident today. However,
some organizations, to appeal to potential employees, are changing the traditional organizational
structure. One such company is Google.
The traditional organizational pyramid has operative employees at the bottom of the triangle,
supervisors above them, middle managers above supervisors, and top management above all.
This structure is a vertical approach to management where the decision making is done at the top
and orders are sent down to the operational employees at the bottom of the organizational
hierarchy. Operative employees do not have much say in the organizations operations.
Google uses a cross-functional organizational structure combined with a unique philosophy.
Their cross-functional organizational structure is more of a team approach to management and is
structured horizontally. According to Google.com (http://www.google.com/intl/en/corporate/),
they purposively maintain a small-company feel, believing every employee is a hands-on
contributor and everyone is an equally important part of Googles success. Googles benefits
package also plays a major part in attracting employees. Google states that, from employee
retirement funds to their free lunch and dinner program, they strive to offer customizable
programs that suit the needs of each of their employees. What more could an employee want?

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Learning Process:
Google is full of smart people working on some of the hardest problems in Computer Science.
Many Googlers have PhDs and come from a research background, but research is not treated as a
separate activity at Google -- research happens across the company, on many different teams.
This means there is a blurry line between research and product development.
Engineering and research projects alike are done by small teams on a rapid schedule. Most
projects have time horizons of just 6-12 months, and aim to deliver results and iterate quickly.
That said, for some higher-risk or longer-term projects, some research groups do work with a
certain level of isolation - but even then, we encourage organizational flexibility and the free
flow of information within the company (and often outside of the company as well). Nearly all
projects at Google are bottom-up efforts, started by a few Googlers who want to tackle a new
problem. Were very light on management. We have more problems than we have people, so
theres always a big problem just around the corner waiting for someone to solve.
At Google, you have the freedom to work on many different areas. Google researchers and
engineers often move between projects, based on shifting interests and new opportunities. This
means that its not uncommon for a Googler who has been with the company for several years to
have worked on very different areas, such as search, Gmail, maps, and core networking. You get
to work with different people on new challenges and constantly learn new things. Of course, if
you prefer to stay on one team, you can do that too! Google has a tremendous number of exciting
challenges that only arise with the vast amount of data and sheer scale of systems that we build.
Most people know about Googles research activities that back our major products, such as
search algorithms, systems infrastructure, machine learning, and programming languages. These
are just the tip of the iceberg.

Encouragement of Intrapreneurship Environment:

Google encourages its researchers to publish. They encourage publication both in conventional
scientific venues, and also through industry forums, professional magazines and standards
bodies. Submitting a paper to a conference or journal has a very lightweight process: a few days
before submission, we ask you to submit your article for review to make sure youre not leaking
major company secrets by mistake. We also have a strong culture of releasing code as open
source, and getting approval to release code is a matter of days, not months.
More than anything else, Google is a fun place to work. Youre surrounded by amazing, driven
people; you get some of the best perks in the industry; and of course a lot of yummy free food.
Finally, if you are into datacenters, we have the best toys.

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Corporate Entrepreneurship Process: (Model)

1. The Enabler Model
The basic premise of the enabler model is that employees across an organization will be willing
to develop new concepts if they are given adequate support. Dedicating resources and processes
(but without any formal organizational ownership) enables teams to pursue opportunities on their
own insofar as they fit the organizations strategic frame. In the most evolved versions of the
enabler model, companies provide the following: clear criteria for selecting which opportunities
to pursue, application guidelines for funding, decision-making transparency, both recruitment
and retention of entrepreneurially minded employees and, perhaps above all, active support from
senior management.
Google Inc. is the poster child of the enabler model. Keval Desai, a Google program manager,
describes his company in the following way: Were really an internal ecosystem of
entrepreneurs sort of like the [Silicon] Valley ecosystem but inside one company. At Google,
employees are allowed to spend 20% of their time to promote their ideas to colleagues, assemble
teams, explore concepts and build prototypes. Project groups form on the fly, based on
requirements defined by the teams themselves. An initial core team typically includes a project
manager, technical lead, product marketing manager (for competitive analyses, focus groups,
market targeting and so on), user-interface designer, quality-assurance specialist and an attorney
(for privacy, trademark and other legal input). If the team believes it has a winner, it appeals to
the Google Product Council for funding. This group, which includes the company founders, top
executives and engineering team leads, provides broad strategic direction and initial resources.
Successful project teams receive assistance from the Google Product Strategy Forum to
formulate their business models and set milestones. Importantly, Google applies no preconceived
criteria or hurdle rates to the projects. As long as a project appears to have potential and
maintains the interest of Google employees, it can continue.
At any given time, Google typically supports more than 100 new business concepts in various
stages of development, and information about the projects is maintained in a central, searchable
database. Managers estimate that approximately 70% of the projects support the companys core
business in some fashion, 20% represent emerging business ideas and 10% pursue speculative
experiments. If a project succeeds, team members can receive substantial bonuses (called
Founders Awards), sometimes in the millions of dollars.
Googles entrepreneurial culture, dynamic market and extraordinary access to capital make the
company difficult to replicate. Nonetheless, other organizations have had success using the
enabler model. The Boeing Co. and Whirlpool Corp., for example, have found that dedicated
funds for innovation combined with clear, disciplined processes for allocating those funds can go
a long way toward unlocking latent entrepreneurial potential. Well-designed enabler practices
also have the side benefit of exposing senior management to ambitious, innovative young
employees, allowing the company to identify and nurture future leaders.
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But firms should be aware that the enabler model is not just about allocating capital for corporate
entrepreneurship. Personnel development and executive engagement are also critical. Google
spends an extraordinary amount of time and effort on recruiting. To be hired, a program manager
or senior engineering candidate might go through 20 interviews in multiple stages before the
company determines whether that individual has the right combination of entrepreneurial
DNA, broad technical talent and intellectual agility. Executive engagement is essential for
people to trust that the process of corporate entrepreneurship is being taken seriously that is,
the company will indeed pursue the development and commercialization of good ideas. Without
sufficient support from senior management, promising concepts can end up as casualties of
conflicts with established businesses. Another danger is that the enabler model could degenerate
into bowling for dollars, in which people apply for funds for ordinary business-unit projects or
for ideas that they are not really seriously interested in pursuing.

2. Leveraging Employees in Fostering Innovation

In the year 2005, Googles former CEO, Eric Schmidt. Introduced a business resource
management model called the 70/20/10 innovation model for the employees. Under this model,
Googles employees dedicated 70 percent of their working to core business tasks, 20 percent to
projects related to the core business, and 10 percent to projects which were totally unrelated to
their core business. This model led to better utilization of the skills of its employees and helped
the company come up with new products and technologies.
The option to work 10 percent of their time on projects not related to their core business gave the
employees a lot of freedom to work on any task they liked and come up with new and innovative
ideas. The success of the 70/20/10 model led to the total organization of Google under this
philosophy underlying the total organization of Google for a long time.

References
Kwon, O. h. -H., June 28. 2013. Samsung Electronics. [Online]
Available at: http://biztek.edu.pk/ibt/qec/7.1/1%20Practicing%20the%20Intrapreneurship.pdf
[Accessed 1 12 2015].
Source: IBS center for Management Research: http://www.financepractitioner.com/informationsources/ibs-centre-of-management-research-icmr

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