Innopreneurship - Entrepreneurship and Innovation PDF

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Innopreneurship: Entrepreneurship and InnovationEntrepreneurial Mindset is a term applied to a way of thinking. It’s about creativity, design thinking, and development of innovative solutions to problems. While these ideas can be applied to business development, the entrepreneurial mindset can be ap...

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Innopreneurship: Entrepreneurship and Innovation

Entrepreneurial Mindset is a term applied to a way of thinking. It’s about creativity, design thinking, and development of innovative solutions to problems. While these ideas can be applied to business development, the entrepreneurial mindset can be applied to any situation in which ideas, creativity, and focus on stakeholder needs can be used to solve real world

“Making things happen is not the same as making new things happen.” ▪ An owner of a business who invests his/her resources to bring idea to life, setting the direction that transforms that idea into reality, thus providing and gaining value that balances effort, purposes and profit. ▪ Different from a corporate entrepreneur who does everything like an entrepreneur but does not have a financial stake in the business. You could study well, work for others forever, but you might miss the opportunities to do more for yourself and for your family. You only have one life to live and leave a legacy. What will you choose to do? 5 Components of an entrepreneur 1. Owner who invests resources – risk taking 2. Brings an idea to life – idea may or may not come from the entrepreneur, but turning an idea into revenue maximization entails defining the best options. 3. Setting direction – getting quality information and making choices from these pieces of information 4. Making things happen – ensure all the interdependent elements are in harmony 5. Adding value – entails financial understanding •A person who introduces a new process, product, services or a business model to the marketplace that becomes commercially Who is an Innovator? successful. 2 Elements New 2. Commercial success – requires customer acceptance An innovator is different from an inventor who creates something new but has not attained commercial success. Business + Personal Plan: A firm need to have a business plan 1. Written document (for outside inventors) 2. Simpler outline of a business model (for internal guidance) 3. It provides the direction where the firm is going. Prosperity for All: Profit is a requisite for a business. Wealth Conversion Principle: 3 elements to create profit for a business idea:

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Business starts with an idea (based on the vision of the proponent). Then, investment of cash (or the equivalent of cash) is needed to bring the idea to life. The cash is used to buy Inventories Inventories are sold, often with some credit terms, and when these Receivables are collected, they are converted back to cash. It is a cycle with each cycle adding greater value to the firm.

3 S’s Requisites to prosperity To make the wealth conversion principle come alive 1. Squad - form a team, which includes your choice of business partners. 2. Spread – need to ensure that products are sold are priced higher than the cost. 3. Speed – create a system to manage account receivables effectively. Key Factors to Successful Entrepreneurship 1. Commitment – a strong drive to achieve goals and objectives through focus and proactive followthrough 2. Coordination – the organization of different people or groups coming from various functions to attain efficiency, effectiveness and/or impact. 3. Competency – having a combination of ability, attitude and behavior to do particular role or job repetitively well. 4-Gate Model to Prosperity (House of Prosperity) 1. 2. 3. 4.

Preparation Gate Marketing Gate Execution Gate Self-leadership Gate

Gatekeepers – screens the potential entrants along the way. CEO (Customers, Employees and Owners) – he/she needs to find a good balance of all three constituents and ensure each of these three parties gets a compelling based on what is valuable to them. Gates Interest and Expectations Gatekeepers Preparation Profit and Dividends Owners and Stockholders Marketing Quality and Good Price Customers Employees Execution High Pay and Work-Life Harmony Self-Leadership Fulfillment Self 12 M’s to Successful Entrepreneurship Gate 1: Preparation (IQ - Intelligence quotient: capacity to think and reason) 1. Money – cash component Success Story:

Butch Salvador was broke and had Php10 left, just enough to make photocopies of his business leaflet. He knew a car repairman and uses the parking lot of a mall for prospecting and left his marketing leaflets on windshields of ten cars with dents, which clearly needed some repair. He decided on this strategy due to lack of resources. One out of ten came and the next customer saw them repairing car dents outside the car owner’s house. From this, Car Magic was born. 2. Model – the business model or the big picture plan to generate sales revenue profit, cash flow, growth, and how to scale up. 3. Mentors – are the experienced advisers who can add value to the entrepreneur by giving sound guidance to increase the competency, lessen the risks, and help open more opportunities for the entrepreneur to succeed. Example: International furniture designer Kenneth Cobonpue was encourage by his mother (who was already in the furniture business) to build his own toys when he was a child. Gate 2: Marketing (CQ- Creativity quotient: the capacity to innovate) 1. Mindset – is about beliefs. That being an innopreneur is better than being just an entrepreneur. -one must have a mindset to find a novel differentiation or Unique Selling Proposition (USP) that solves a real problem, by not selling the same thing as everybody else. -That it is possible to earn dollars not just as an OFW but as an exporter. 2. Market – a set of buyers that an entrepreneur focuses attention on. -it also includes the channel where the target market can see what is being offered. Example: AHEAD tutorial focused on students doing well instead of students having low grades when they started. To change the negative perception to tutorials as a last resort for students who were failing in school. By focusing on achievers, they were able to change perception, gained status and made tutorials something students looked forward to. 3. Message - brand positioning that will be communicated to persuade a target customer to buy. (Example: Iphone vs Myphone) Gate 3: Execution (EQ- Emotional Quotient: the capacity to sense and to emphatize) 1. Machinery- it is about an organization structure that can deliver the value planned; hence, the organizational structure can only be identified after the value proposition is formulated. 2. Methods – are about systems and processes that allow the entrepreneur information and control. 3. Management Skills – about the ability to carry out the plans through people, rewards and leadership. Gate 4: Self-Leadership (AQ- Adversity Quotient: the capacity to recover and make progress) -it is needed when problems and obstacles are experienced because of the nature of entrepreneurship, where risks and uncertainty is expected. Example: Billionaire Jack Ma, founder of Alibaba.

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Started from when he failed a key primary test twice, and failed three times while in middle school. He also applied to study in Harvard and rejected ten times. Got rejected 30 times in applying for a job. 25 people applied in KFC and they accepted 24 except him. Five people applied for a police job and they accepted four except him.

But he persisted, not giving up on himself. When faced with adversity, stop giving excuses and start finding solutions to keep improving. Not just leadership in business but also in one’s personal life. 1. Moving forward – having the grit to continue the business despite obstacles. 2. Mission – about purpose or the reason why the business exists beyond making a profit. Example: USLT providing hundreds of scholarships to students 3. Mastery – building capabilities, knowing the self, the environment as well as the operations. Entrepreneurship Key Factors Matrix Key Factors for Success / 4Gate Model Commitment Coordination Competency

Preparation Money Model Mentors

Marketing Mindset Market Message

Execution Machinery Methods Management Skills

Self – Leadership Moving Forward Mission Mastery

An entrepreneur needs four different types of commitment: 1. Money – Commitment to maximize return on investment. 2. Mindset – Commitment to have an innovation mindset. 3. Machinery – Commitment to create an effective organization. 4. Moving Forward – Commitment to keep iterating toward objectives and goals. An entrepreneur needs four different tasks of coordination: 1. Model – Coordinate the inter-dependency of a business model. 2. Market – Coordinate choice and penetration of the target market. 3. Methods – Coordinate processes needed to routinize operations. 4. Mission – Coordinate the establishment and fulfillment of a company’s mission. An entrepreneur needs four different groups of competencies: 1. Mentors – Competency related to sense making and risk assessment that can be provided or guided mentors. 2. Message – Competency related to customer-focused communication, expressed in terms of a positioning or a message. 3. Management Skills – Competency related to initiative and resource management and influencing people skills as part of critical management tasks.

4. Mastery – Competency related to adaptability and grit resulting to mastery of strategy and change, as well as customer understanding and self-transformation. Is Entrepreneurship for Everyone? - It can be learned but it is not for everybody. - Passion is not enough. A person needs an eye to satisfy unmet needs of a group of prospects that can be large enough to have a differentiated, growing, profitable, scalable and sustainable operation.

7 competencies of an Entrepreneur

1. 2. 3. 4. 5. 6. 7.

Competencies – combination of abilities (technical skills like knowledge and expertise) and behavior (like people skills or motivational level) Risk appetite – sees rewards for taking on opportunities that have potential positive (or negative) consequences. Sense-making – scanning the environment to detect and interpret what is happening today in order to connect and take actions on potential future outcomes. Customer-Focus – choosing, initiating and sustaining relationships with customers. Initiative – being proactive in taking prompt actions to attain objectives. Influence – ability to use personal branding and interpersonal styles to gain buy-in from constituents. Adaptability – adjusting to external changes while initiating internal changes to attain objectives. Grit – persistent to attain long-term goals despite adversity.

4 Competencies of an Innovator 1. 2. 3. 4.

Creativity – forming a mental image or new idea about the future. Critical Thinking – offering unique ways to solve defined problems Collaboration – developing relationships with the right partners to attain objectives. Communication – engaging constituents to make them understand and accept your message....