In 1992, The American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean “A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation”. Intrapreneurship is now known as the practice of a corporate management style that integrates risk-taking and innovation approaches, as well as the reward and motivational techniques, that are more traditionally thought of as being the province of entrepreneurship. They are entrepreneurs who catch hold of a new idea for a product, service, or process and work to bring this idea to fruition within the framework of the organization. Intrapreneurs with their innovations and dedicated effort are perceived as a valuable asset by the organization, inspiring others. He serves as a champion to others in the organization. In recent times, a number of intrapreneurs are leaving their jobs to start Continue reading
Modern Management Concepts
Benefits of Corporate Retreats in Organizations
Corporate retreats can be of any type, such as a sport retreat, or a seminar-style retreat. They are to promote a feeling of teamwork and to build a better understanding among company employees. Corporate retreats can also help employees gain some problem-solving skills that lead to better teamwork and better overall productivity. These team-building activities focus on events where everyone has to work together to reach a common goal. The examples are river rafting, rock climbing, mountain climbing, everyone hiking blindfolded while holding on the same rope, team scavenger hunts, friendly competitions between company departments, etc. Corporate retreats can be customized to fit the company’s need. They can make the employees learn about what the temporary retreat goals are, as well as the long-term results that the company is striving for. Why corporate retreats can increase productivity? This is because organizations can derive some valuable skills from corporate retreats. These Continue reading
Significance of Blue Ocean Strategy in Current Business Scenario
Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. Since, dividing up existing demand and benchmarking the competitors, Blue Ocean strategy is regarding grow demand and break away from the competition. The business universe can be thought as a composition of two kinds of oceans the first is the red ocean and second one is the blue ocean. Red ocean includes all the industries which exist today and it is about the known market space. But on the other side Blue Ocean can be considered as industries which are not in existing today and it is called unknown market space. The industries boundaries are defined and well accepted in the red oceans. In the red oceans the rules of competitive games are well defined. The companies try to take away the greater share Continue reading
Types of Innovation and Mapping the Innovation Space
There are different types of innovation. There are four broad categories of innovation. Following these categories are referred as the 4Ps of innovation: ‘product innovation’ — changes in the things (products/services) which an organization offers. ‘process innovation’ — changes in the ways in which they are created and delivered. ‘position innovation’ — changes in the context in which the products/services are introduced. ‘paradigm innovation’ — changes in the underlying mental models which frame what the organization does. For example, the new version of a car, a new bank account offer and a new home personnel computer are all examples of a product innovation. In comparison to a product innovation a change in the production process and machines used to manufacture the car or the home computer these examples are process innovations. Similar the example of the new bank account offer if this came up by changing procedures and sequencing in Continue reading
Balanced Scorecard (BSC) – A Strategic Management Tool
In the late 1980s, organisations started realizing that, in order to assess the overall health and performance of the organisation, it was important to measure and manage non-financial measures also in addition to the traditional financial measures such as profits, share values, sales volumes etc. Traditional financial measures are usually the lag indicators of the business performance and tell the story of the past. They do not provide any insight into the intangible assets and capabilities that need to be developed in order to be able to achieve the desired financial results. For example, front-line workers in a manufacturing set up are far removed from these financial measures and have no idea about how their day to day work translates into financial results. Thus, financial measures fail in assessing the intangible value possessed by the organisation or the value it can create. They can also fail the knowledge based strategies Continue reading
Public Private Partnership – Definition, Types, Strengths and Weakness
The Concept of Public Private Partnership The concept of Public Private Partnership (PPP) has been described in several ways. The Agency theory, which is often called the principal-agent theory, shows the affiliation between the principals and agents and emphasize that the principals have the basic task of choosing and controlling their agents. The theory that sees parties engaging in exchange as contracting is called transaction cost theory. It emphasize that contract should account for both personal and social expenses while reaching a contract and further noted that the process of contracting could be costly because it includes cost of structuring, bonding, monitoring, negotiation and residual loss due to principal agent problem. Partnership under evolutionary theory, is about efficiency and prudent utilization of available resources, which is aim at plummeting replication in the overhead expenses. The exchange and dependency theory, highlight on integrating disjointed policy landscape. Others viewed Public Private Partnership Continue reading