IENT 6021: Innovation & Entrepreneurship

MBA - Semester II

Introduction to the Module

Innovate I Validate I Accelerate Prof. Raja P Pappu

 Learning Objectives of the Module

1. To know various theories of entrepreneurship and trends.

2. To generate new business ideas from various sources.

3. To identify various issues and challenges in starting a new venture.

4. To know the elements of a business plan and designing a business model.

5. To compare and contrast the entrepreneurship practices in the family

business and social enterprise
 Learning Methods

• Lectures/slides – gives you an overview of the field, introduce readings, motivate

further study

• Analysis of Recent Real World Examples (e.g. Videos, Images) – this offers an
opportunity to analyse recent entrepreneurial examples.

• Practical Class Exercises – Powerful way to experience first hand the challenges
entrepreneurs face. Opportunity for reflection and development of an entrepreneurial
mindset.

• Guest Speakers – Opportunity to meet different entrepreneurs and ask questions

about their experience. Important to connect practice and theory.
 Learning Methods
(Outside the Class)

• Guided Readings – the most important source of scientific knowledge.

• Group Work – Identification of a business opportunity and development of business

plan to exploit it. Very important to establish a connection between theory and practice
and experience first hand some of the challenges entrepreneurs face.

• Watch a Documentary Weekly – watch the story of influential entrepreneurs and learn
from their experiences. Opportunity to reflect on how theory relates to practice and
strengthen the learning process in the course.
 Learning Methods
• Weekly documentaries and series which include:
• Bloomberg Game Changers (e.g. Zuckerberg, Brin & Page; Jobs, Musk, etc.)
• 4 Part Documentary Called “The Men Who Built America”
• Shark Tank India/ US, Dragon’s Den
• Inspirational series about the entrepreneurial path of 5 of the most admired business entrepreneurs:
Cornelius Vanderbilt (Railroads), John D. Rockefeller (Oil), Andrew Carnegie (Steel), J.P. Morgan
(Banking) and H. Ford (Automobile).

• Weekly Exercise – Important for Class Discussion

• Each documentary will be uploaded in the Moodle or you can search in YouTube.
• You are expected to watch these videos before the lectures and participate in the discussion in class.
• You should make bullet point notes of:
Ø What you find interesting in the documentary?
Ø What lessons can you take from it?
Ø How do you relate the events in the documentary to the concepts of entrepreneurship and
innovation?
 Essential Readings
Core Textbook:
Kuratko, D. Entrepreneurship: Theory, process, and practice (International Edition; 9th ed.):
Cengage Learning. 2013./ Latest Edition. (T1)

Reference Book:
Tim Mazzarol, Sophie Reboud, Entrepreneurship and Innovation, Theory, Practice and Context.
4th Edition, Springer, http://www.springer.com/series/10099

Others Sources:
• Journal Articles
• Book Chapters
• Interesting News Articles
• YouTube Videos
 Essential Readings
Coursera Courses:

• Developing Innovative Ideas for New Companies: The First Step in Entrepreneurship
– https://www.coursera.org/learn/innovative-ideas
• Innovation & Entrepreneurship - From Basics to Open Innovation
– https://www.coursera.org/learn/open-innovation-entrepreneurship?specialization=value-
creation-innovation
Case Studies:
• Manikutty, S., Vohra, Neharika. 2010. Aravind Eye Care System: Giving Them the Most Precious
Gift, IIM Ahmedabad.
• Kalegaonkar, Lehrich & Locke. 2009. Biocon India Group, MIT Management Sloan.
• Jeffrey J. Bussgang; Tom Quinn; Annelena Lobb. 2021. On the Bubble: Startup Bootstrapping,
Harvard Business School.
 Mandatory Assessments

Components Format Weightage (%)

Mid Term Exam As per School format 15

Group Work 10
Mixed mode – Online
Quiz & Classroom Tests/ 10
Presentations
3 x Cases 15
Coursera Online - SELF 10
End Term Exam As per School format 40
Total 100%
 Mandatory Group Work Assessment

10% Group Work – Business Plan

• Requires identification of a business opportunity

• Development of a plan to exploit the opportunity identified

• Requires self-initiative and autonomous reading of what is a business plan and how to
conduct it

• The business plan could be for new business ventures, social ventures or business-cases for
innovations to be introduced in the private, public or third sector.

• Around 2000 words (+/- 10%) excluding title page, contents page, figures, tables, references,
and appendices.
 Mandatory Group Work Assessment

Assessment criteria

• Quality, feasibility and clarity of the idea and business model.

• Attractiveness of the investment opportunity (e.g. potential market, revenue generation,

profitability, risks, sustainability and responsibility concerns).

• Impact and structure of the business plan and presentation slides.

• Deadline for submission is on 20th February, 2023.

 Assessment Criteria

Ability to link theory to concrete examples

• Ability to link frameworks/theory/concepts/models to practical examples from the
business environment

Originality and novel thinking

• Ability to come up with novel interpretations and suggestions, showing deep reflection
of the subject under consideration.

Structure and clarity of writing

• Structure and logical reasoning
• Clarity of writing
• Use of correct terminology
 MMB716: Innovation & Entrepreneurship
MBA (IB/IBF/GLSCM) Semester II

UNIT - I Entrepreneurship Theory & Identification of Trends

The changing global business environment - adaptation through innovation

Innovate I Validate I Accelerate Prof. Raja P Pappu

 Lesson Plan
Week Lecture (3 hours per week)
1 The changing global business environment - adaptation through innovation
2 Entrepreneurship & innovation
3 The innovation process, Creativity and Entrepreneurial opportunities
4 Product, service & process innovation - Case studies
5 New Venture Creation
6 Defending your business & Funding your venture
7 Entrepreneurship in Practice Business Plan preparation for New Ventures
8 Market experimentation & entrepreneurial learning Business Model Generation
9 Family Business
10 Social Entrepreneurship
 Learning Objectives

By the end of this Unit you will be able to:

• Describe various aspects of the entrepreneurial process and approaches

• Analyse the environmental factors promoting entrepreneurship

• Differentiate various types of entrepreneurships

• Recognize the traits and mindset of an entrepreneur

• Evaluate the trends in entrepreneurship research.

What do you see here?
Every good leader knows that the only thing
that’s constant is

CHANGE
Adaptation
• What is Change?

• What is Adaption?
 This can present
companies with
The business threats and
opportunities.
environment is
continually changing To be successful,
they must adapt.
What does the business
environment look like?

Internal
External
 The Internal Environment
• Resources

• Knowledge & information

• Staff

• Physical resources

• Finances
 The External Environment

• Consists of:

• General environment and competitive environment

• Competitive Environment

ØIndustry and markets where organisation competes

 The External Environment

• General Environment

ØOften referred to as the Macro Environment

ØWhy?

ØChanges in this environment will transcend markets and industries

The Organisation and its External Environment

Industry Power of Buyers

Analysis
Power of suppliers

Potential Entrants

The Competitive Environment

Competitive Rivalry

Substitute Products/Services
 The Organisation and its External Environment

Scenario Economic
Planning Political
PEST
Analysis

The General Environment

Social Technological
 The Organisation and its External Environment

Scenario Global Politics

Planning
PEST

Porter’s 5
Forces SWOT
Analysis

Global Economy
The business environment is
continually changing

In order to stay competitive, companies must adapt to the

environment they are in
What is innovation?
Innovation

The process of introducing something new

Product / Service / Process

 Environment Analysis

Environmental Scanning

Internal Analysis External Analysis

Micro-environment Macro-environment

Strategy for achieving our goals

 SWOT Analysis

Organisation

Environment
 What are the external macro forces that
affect an organization?
Positive Negative

Political forces

Economic forces

Socio-demographic forces

Technological forces

Legal forces

Environmental / Ethical forces

What do these companies have in
common?
 What are the causes of
Business Failure?

• Poor internal management

• Changes in the External Environment

(Micro & Macro) had an impact

• Their customers had ever changing

needs and chances are the company
didn’t meet them!
 What do these companies have in
common?

www.forbes.com/innovative-companies/list/#tab:rank
 “We need to be innovative.”

“We have to come up with new innovations.”

Everyone is using this

word but what does it
really mean?
Definitions
From the Latin – inovare “to make something new”

Innovation is the introduction of new ideas, goods,

services, and practices which are intended to be
useful

The creation or introduction of something new,

especially a new product or a new way of producing
something
What do you see here?
What things captured your
attention in the video?
 Innovation means Change

Change
“a modification to a person's environment, situation, or
physical/mental condition that results in circumstances that
challenge their existing paradigms."
 Why people don’t like change

• People have a basic need to maintain the integrity of the self,

a global sense of personal adequacy
• Events that threaten self-integrity produce stress and self-
protective defences that can hamper performance and
growth
• Change doesn’t always lead to a better result - failure
What type of people
like change?
The entrepreneur always searches for
change, responds to it and exploits it
as an opportunity.
Peter Drucker
 • Entrepreneurship involves the study of sources of opportunity;
the processes of discovery, evaluation and exploitation of
What is opportunities; and the set of individuals who discover, evaluate
and exploit them. (Shane and Venkataraman, 2000, p.218)
Entrepreneurship?
• So maybe we should focus not on the ‘entrepreneur’ but on the
action taken in respect of opportunity and its context.
 Early Definitions of Entrepreneurship

According to Ronstadt:
Entrepreneurship is the dynamic process of creating incremental wealth.

This wealth is created by individuals:

• who assume the major risks in terms of equity, time,
• and/or career commitment of providing value for some product or service.

The product or service itself may or may not be new or unique but value must
somehow be infused by the entrepreneur by securing and allocating the necessary
skills and resources.
Entrepreneurship – An Integrated Definition of 21st Century

According to Kuratko et. al:

Entrepreneurship
A dynamic process of vision, change, and creation.
v Requires an application of energy and passion towards the
creation and implementation of new ideas and creative
solutions.

Essential ingredients include:

• The willingness to take calculated risks—in terms of time, equity, or
career = opportunity cost.
• The ability to formulate an effective venture team; the creative
skill to marshal needed resources.
• The fundamental skills of building a solid business plan.
• The vision to recognize opportunity where others see chaos,
contradiction, and confusion.
 Who is the Entrepreneur?

• Entrepreneurial action is the making of adventurous,

creative or innovative exchanges (or deals) between
the entrepreneurial actor’s home ‘enterprise’ and other
parties with which the enterprise trades (Tony Watson,
2013)

• We can all be entrepreneurial through our actions

within our own enterprise or as an employee in the
enterprise of others
 Enterprising or
Entrepreneurial?

• Enterprising means ‘marked by imagination, initiative

and readiness to undertake new projects’.

• Entrepreneurial means ‘willing to take risks in order to

create value’.
Process Approaches to Entrepreneurship
An ‘integrative’ approach

An Integrative Model of Entrepreneurial Inputs And Outcomes

Process Approaches to Entrepreneurship
Entrepreneurial Assessment Approach
Process Approaches to Entrepreneurship
Dynamic States Approach
 1. Entrepreneurs Are Doers, Not Thinkers
2. Entrepreneurs Are Born, Not Made
3. Entrepreneurs Are Always Inventors
4. Entrepreneurs Are Academic and Social Misfits
Top 10 Myths 5. Entrepreneurs Must Fit The Profile
of Entrepreneurship 6. All Entrepreneurs Need Is Money
7. All Entrepreneurs Need Is Luck
8. Entrepreneurship Is Unstructured and Chaotic
9. Most Entrepreneurial Initiatives Fail
10. Entrepreneurs Are Extreme Risk Takers
What do these individuals have in common?
Top 10 Startups of India - 2023
 How entrepreneurial are you?

Managerial Entrepreneurial

Big planning Small actions

Systematic Random at times
Use existing data Collect real data
Linear Iterative
Optimisation Experimentation
Avoid failure at all costs Embrace leverage failure
Competitive Collaborative
Knowable Unknowable

PLAN TO ACT ACT TO LEARN

 TRY THIS TEST

http://get2test.net/get2test.html
 Summary
By now you should have:

• Understand the complexities of the contemporary business

environment.

• Understand why it is important for a business to evaluate its

internal and external business environment.

• Have a basic understand of what is entrepreneurship.

*****