3. Definition;
Intrapreneur is a term coined by Macrae (1982) and developed by
Pinchot (1985)
According to Pinchot ‘Intrapreneurs are "dreamers who do," those
who take hands-on responsibility for creating innovation of any kind
within an organization’.
Entrepreneurship is the practice of embarking on a new business or
reviving an existing business by pooling together a bunch of
resources, in order to exploit new found opportunities.
What is Intrapreneurship?: Intrapreneurship is the practice of
entrepreneurship by employees within an organization.
Entrepreneurship within an existing business.
An opportunity for corporate managers to take initiative & try new
ideas.
An internal corporate venture (ICV)
4. Features of Intrapreneurship:
An intrapreneur thinks like an entrepreneur looking out
for opportunities, which profit the organization.
Intrapreneurship is a novel way of making organizations
more profitable where imaginative employees entertain
entrepreneurial thoughts.
It is in the interest of an organization to encourage
intrapreneurs.
Intrapreneurship is a significant method for companies to
reinvent themselves and improve performance.
5. Examples of Intrapreneurs:
Many companies are famous for setting up internal organizations whose
purpose is to promote innovation within their ranks. One of the most
well-known is the Skunk Work. This group formed in 1943 in
Burbank, California to build P-80 fighter jets. Kelly Johnson, aircraft
engineer and aeronautical innovator was the director of the project. Its
largest current project is the F-35 Lightning II, which will be used in
the air forces of several countries around the world.
Another example could be 3M, who encourage many projects within the
company. They give certain freedom to employees to create their own
projects, and they even give them funds to use for these projects.
Besides 3M, Intel also has a tradition of implementing Intrapreneurship.
Google is also known to be intrapreneur friendly, allowing their
employees to spend up to 20% of their time to pursue projects of their
choice.
6. Reasons
Intrapreneurship increases revenues and raises profits; short and
long term. Intrapreneurs – once they are spotted and used the right
way – will have an impact on core activities. They are, however, at
their best when they are challenged with new ventures or radical
innovation projects. Combine this matchmaking with solid execution
strategies and you have revenues and profits.
Intrapreneurship improves the corporate image for recruiting
purposes. The most important resource is talent. A committed focus
on Intrapreneurship – perhaps even a new career track – improves
the corporate image and makes it easier to attract – and keep – the
top talent.
Danfoss, a leader in mechanical and electronic products and
controls, uses their Man on the Moon program as an important
element in the recruitment initiatives.
7. Danfoss Man on The Moon Program
It’s a business plan competition. The essence of it is to
develop an idea, see its possibilities, and then figure
out how to sell it to our group committee, which
consists of the top 10 people at the company. The
committee will ask the same questions that a bank
would, but it will also include experts on supply chain
management and a range of other business issues,
and they’ll ask a lot of questions as well.
This forces whoever competes in the Man on the
Moon program to cover all of their bases and
assemble an effective team. That, in turn, makes it
more likely that the idea will come to fruition.
8. Reasons
Intrapreneurship is contagious.
It begins with ventures and projects where there is a
need for a new kind of talent.
But Intrapreneurship is not just about ventures and
projects.
The core activities will also be embraced by the best of
this new culture.
This helps the company stay alert and always search
for opportunities that might otherwise be lost.
9. Entrepreneur Intrapreneur
1. Entrepreneur is employer 1. Intrapreneur is employee
2. Independent in operation 2. Depends on the organization to
implement his ideas.
3. Bears all the risk involved in
enterprise.
3. Does not bear all the risk.
4. Exhibits higher need for
achievement.
4. May not have high need achievement
5. Profit is the reward. 5. Attractive salary, promotion &
incentives are the reward.
6. May not have formal
qualification.
6. Should have some professional or
technical qualification.
7. Do not have any boundary for
operations.
7. He has to operate within the
organisational policies.
10. Freedom factors
The right to appoint oneself as an
intrapreneur.
The right to stay with the venture
The right to make decisions
The right to appropriate corporate
slack
The right to start small
11. Freedom factors (contd.)
The right to fail
The right to take enough time to
succeed
The right to cross borders
The right to recruit team members
The right to choose
