Corporate entrepreneurship is one that generates and exploits new technologies, products, or businesses under the corporate umbrella of an established firm. Corporate entrepreneurship can speed up processes inside the company and helps to invent and commercialize innovative products or services. Corporate entrepreneurship is the process by which teams within an established company conceive, foster, launch and manage a new business that is distinct from the parent company but leverages the parent’s assets, market position, capabilities or other resources. Corporate entrepreneurship is also more than the development of new products; it also implies innovations to existing products or brands. Corporate entrepreneurship is also defined as the process of stimulating innovative ideas and processes. The common goal of the concept is creating wealth. This definition differs from the other two definitions above in the sense that it doesn’t mention the protection of an established firm as a characteristic of corporate entrepreneurship. Innovation Continue reading
Modern Management Concepts
Kurt Lewin’s Force-Field Theory of Change
Change management is a methodical approach to handling with change, not only from the angle of an organization but on the individual level. A rather vague term, change management has more than three different dimensions, adapting to change, controlling change, and effecting change included. A proactive approach to handling with change is at the central part of all three aspects. For an organization, change management means making the definition and implementation of procedures and/or technologies to handle with changes in the business environment and to profit from changing opportunities. Triumphant adaptation to change is as vital within an organization as it is in the natural world. Just similar to plants and animals, organizations and the individuals in them unavoidably run into changing conditions that they are incapable to control. The more effectively you handle with change, the more probable you are to flourish. Building structured methods for addressing changes in Continue reading
Social and Commercial Profitability Analysis
Social or National Profitability Public projects like road, railway, bridge and other transport projects, irrigation, projects, power projects, etc for which socioeconomic considerations play a significant part, rather than mere commercial profitability. Such projects are analysis for their net socioeconomic benefits and the profitability analysis of such projects is known as social or national profitability analysis which is nothing but the socioeconomic cost benefit analysis done at the national level. Steps involved in determination of social or national profitability:- National/Social profitability analysis takes into account the real cost of direct costs and real benefit of direct benefits,. For instance, some of the inputs may be subsidized. Only the subsidized prices of input is what is relevant for assessing commercial profitability. However the national profitability analysis takes into account the real cost of inputs i.e. cost of input had they not been subsidized. Accordingly the required adjustment to direct cost of Continue reading
Three Models of Emotional Intelligence
The emotional intelligence field is a very new area of study in psychological research. The definition therefore is varied and is constantly changing. It was only in 1990 that Salovey and Mayer came up with the first published attempt in trying to define the term. They defined emotional intelligence as the ability to monitors one’s own and other feelings and emotions, to discriminate among them and to use this information to guide ones thinking and actions. Emotional intelligence to a larger extent involves “emotional empathy” which is the ability to concentrate on one’s emotions and recognize mood both of themselves and others. It further describes how well one is able to adapt to various life challenges like stress and difficult incidences. It also involves the ability balance “honest expression of emotions against courtesy, consideration and respect”. This would obviously involve possession of some level of good social and communication skills. Continue reading
The Role of Leadership in Innovation
Now more than ever, companies are putting more attention to innovation that make their products and services more competitive, thereby enable them to survive and flourish in the changeable and challenging global environment. Innovation is regarded as a key driver of competitive advantage in organizations. Innovation is defined as the first attempt to carry out a new creative idea, and translate it into practice. However, it isn’t easy; it’s a difficult and complex task. There are two primary factors influencing the success of innovation: technical resources (people, equipment, knowledge, money, etc.) and the abilities in the organisation to manage these resources to encourage innovations. Organisation is a kind of breeding ground for generating creative idea and capturing new opportunities. An innovative organisation has several key components: appropriate structure, effective team working, external focus, leadership, key individual, creative climate and etc. All the factors are absolutely essential. All innovative organisations needs Continue reading
Discontinuous Improvement – Abernathy and Utterback Model
The common innovation process happens in a set frame, following certain rules and ways of thinking. This ‘game played’ by competitors is to innovate by doing what has been done before like product or process innovations or even position and paradigm innovations, but doing it better. In this competition of ‘playing the same game’ some firms manage to do better than others and can gain a competitive advantage through these innovations, but the ‘set of the game’ is accepted and do not change. Very rare something happens that breaks up this framework and changes how the game is played. This will not happen every day but when this arises the rules and boundaries of a market change rapidly. This will result in upcoming new opportunities and challenge the existing players in their way of working, thinking and doing business. A discontinues improvement occurs out of a technological and conditions stable Continue reading