1、LOGOMeeting the Challenge of Corporate Entrepreneurship管理学专业英语教程（第四版管理学专业英语教程（第四版上）上）Fudan UniversityLOGOFudan UniversityThe Business Challenge of The DayFudan University1.They must become Janus-like,looking in two directions at once,with one face focused on the old and the other seeking out the new
2、2.Corporate entrepreneurship is,however,a risky propositionTwo challenges to meetLOGOFudan UniversityThe Two-Cultures ProblemIts no secret that corporations are designed to ensure the success of their established businesses.But how about new businesses?New businesses are quite different,with culture
3、s all their own.LOGOFudan UniversityThree ChallengesChallenge1 emerging businesses usually lack hard data.Challenge2 new businesses require innovation,innovation requires fresh ideas,and fresh ideas require mavericks.Challenge3 the poor fit between new businesses and old systemsLOGOFudan UniversityW
4、hy Traditional Responses FailLOGOFudan UniversityDiffused Responsibility Fizzles outIn an organization where every executive shares responsibility for new-business creationthe CEO expects employees to be as committed to turning new ideas into new businesses as they are to expanding mature ones.The m
5、ain drawback of this approach is that its easy for traditional businesses to dominate new ones.LOGOFudan UniversityCentralization isolatesWhat did many companies do?How about the approaches?Is there any challenge?They decided that the wisest course was to completely separate new ventures from existi
6、ng divisions.They focus on nurturing new businesses in their formative stages The challenges come later,when its necessary to integrate fledgling businesses with the mainstream.LOGOFudan UniversityBalancing Acts either-or approaches to corporate entrepreneurship because they place the old and new cu
7、ltures in conflict with each otherWhat should companies avoid?strategy operations organizationBalancing acts in three areasLOGOFudan UniversityDevelop Strategy by Trial and Errorv New businesses operate in highly ambiguous environments.v uncertain environments VS ambiguous environments.v When taken
8、to extremes,however,this approach can be counterproductive.Managers must begin with hypotheses about what will work and what wont;They should search for ways of validating or invalidating their preconceptions,knowing that first-cut strategies will change over time.LOGOFudan UniversityOperate with So
9、mething Old,Something NewExisting companies will enjoy an advantage in new-business creation only if they build on their strengths;otherwise,they will be no better off than start-ups that must begin with a clean slate.In most cases,the best combination of the old and the new entails a blend of exper
10、ience and invention.LOGOFudan UniversityIntegrate with AutonomyLOGOFudan UniversityText(2)How IBM Strikes a Balancev One company that has applied these principles is IBM.v The team concluded that IBMs difficulties in starting new businesses could be traced to six root causesa management system that
11、rewarded execution and short-term results rather than strategic business buildinga preoccupation with IBMs current markets and existing offeringsa business model that didnt emphasize on actions to drive higher price-earnings ratiosan approach to gathering and using market insights that was inadequat
12、e for embryonic marketsan absence of processes suitable for managing new growth businessesa lack of entrepreneurial skillsLOGOFudan UniversityEmerging Business Opportunity management systemTo overcome these obstacles,executives recommended that IBM build a distinct Emerging Business Opportunity(EBO)
13、management system to complement its existing systems.After several months,Gerstner remained concerned about the extent of the organizations acceptance of the task forces recommendationsGerstner announced new appointment,and it had an immediate impact.LOGOFudan UniversityThompson moved immediately on
14、 several frontsWhat did Thompson do?He saw his role as that of an evangelist.He consolidated responsibility.He started creating the development,oversight,and review processes.LOGOFudan UniversityLeadershipThompson therefore decided to choose EBO leaders for their experience and skill in working the
15、system,as well as for their entrepreneurial,business-building,and creative talents.IBMs senior-most executives handpicked the first EBO leaders.The top brass was involved in the process.EBO leaders reported to the relevant business group heads.LOGOFudan UniversityStrategy developmentThompson charged
16、 EBO leaders with arriving at“strategic clarity”.To resolve strategy issues,IBM encouraged EBO teams to engage with the marketplace by doing experiments.As the results of the experiments came in,EBOs had to revise their strategies and business designs.LOGOFudan UniversityMonitoringproject-based mile
17、stonesfinancialsassessments of business maturityThompson and Harreld periodically evaluated each EBO using three parameters.The project-based milestones were the primary basis on which EBOs were evaluated.LOGOFudan UniversityLessons from IBM casevThe true measure of any system is its results.Success
18、 is not an either-or proposition.As IBMs EBO management system shows,when companies must choose between black and white,the best response is often gray.New businesses should be nurtured through a series of balancing acts.Balancing acts combine entrepreneurship and disciplined management,short-and long-term thinking,and established and new processes.
