Technopreneurship BSIT 4-1
Technopreneurship
Syllabus Chapter 1: • Technopreneur & Technopreneurship
Chapter 2 • Business Opportunities: Identification, Evaluation & Selection
Chapter 3 • Innovation and Technopreneurship
Technopreneurship
Chapter 4 • Forms of Business Entities, Regulations and Business Support System
Chapter 5 • Business Plan
Chapter 6 • Management of a Small Business
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Chapter 7 • Marketing
Chapter 8 • Operations Management
Chapter 9 • Financial Plan
Chapter 10 • Issues on Technopreneurship Technopreneurship
References i.
UiT iTM M En Entre trepreneurship Stud tudy Gr Group (20 (2004). “Fundamentals of Entrepreneurship.” Entrepreneurship.” Pearson Prentice Hall. ii. Peter F.Drucker (1993). “Innovation “Innovation and Entrepreneurship”. Entrepreneurship”. HarperBusiness iiiii. i. W.Cha .Chan n Kim Kim,, Rene Renee e Mau Maubo borg rgne ne (200 (2005) 5).. “Blue Ocean Strategy”. Strategy”. Harvard Business School Publishing Corporation iv. David H.Bangs, Jr (2001). “The “The Business Planning Guide”, Guide”, Advantage Quest Publications. Technopreneurship
Subject assignment • Business proposal – A – A group consists of max 6 students – Register – Register group members • CEO/manager
– Brain – Brain storming session • Type of business • Type of product • Commercial value..
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How great we are?
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Technopreneurship
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Are there any business opportunities from this scenery? Technopreneurship
How many business should be established to have all this stuffs inside i nside your kitchen? Technopreneurship
How about this messy room? Technopreneurship
How about communication industry? Technopreneurship
How about airlines industry? Technopreneurship
Why do we need an entrepreneur?
Technopreneurship
• Identify how many of – Business items (we have to pay)…. – Non – Non-business business items (free of charge)… – Inside – Inside this lecture room???
• Perc Percen enta tage ge…? …??? ?? % = Business items – items – non-business non-business items x 100% Business items
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Technopreneurship
Entrepreneur, Technopreneur, Intrapreneur, Innovator, Manager
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Earlier Viewpoints (1700-1950s) • The word entrepreneur comes from French word „entreprendre‟ • “Entreprendre” – “Entreprendre” – individuals individuals who undertake (the risk of new ventures).
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Entrepeneur • Entrepreneur invests Entrepreneur invests,, transforms and makes (profit (profit or loss) loss) [Richard Cantillon, French economist] – In – In other words, goods are bought at a certain price, value is added by transforming (the (the least being to repack ) the goods, and the goods are then sold at an uncertain price.
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• “The “The task task of forming an organisation or ganisation for commercial for commercial purposes” purposes” [Adam Smith 1977] • In his book, Wealth of Nations “The ability to foresee potential through changes in the economy, and to act on the demand thereby created” created” Technopreneurship
• “The entrepren entrepreneur eur was said said to influence society by forming enterprises and was in turn influenced by society to recognise needs and to fulfil through skilful management management of resources” [Jean Babtiste Say, 1903, French Economist] Technopreneurship
• “Entre “Entrepre preneu neurs rs are economic agents who transform resources into goods and services, services, thereby creating an environment conducive to industrial growth” [Carl Menger, 1871, Principles of Economics] Economics]
Technopreneurship
Priority 1
Delivered baked bread is highest value use
Bread at bakery for sale has high value
Priority 2
Menger‟s Model of Value-Added Value -Added Transformation Transformation of Resources Priority 3
Milled flour for baker has high value
Intermediate
Priority 7
Priority 8
Bulk grain from farmer has low value
Grain in field has very low value
steps in transformation
Source: David H.Holt. Entrepreneurship. New Venture Creation Englewood Cliffs, NJ: Prentice-Hall 1992, p.5
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• “Entre “Entrepre preneu neursh rship ip is is a creative destruction force that sees the destruction of usual ways of doing things by the introduction of new improved ways” ways” [Joseph Schumpeter, 1934, Austrian]
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• Entrepreneurship is a process, and the entrepreneur is an innovator who uses processes to challenge existing norms via combinations of new resources and methods in commerce.
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Technopreneur • They are entrepreneurs who used “technology” as their driven factor in transforming resources into goods and services, services, creating an environment conducive to industrial growth”…
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• Innovations are not confined to tangible products but also include services and processes. – The – The continuous improvement in financial sector – City bank, Air Asia…
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• Entrepreneur seem to be the starters and managers the followers – Initially, – Initially, entrepreneurs also assume the role of manager, but later the managerial roles are delegated to the managers.
• Managers do not start businesses, businesses, they only manage them.
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• In the world of corporate business, intrapreneurs emerge as that breed who is a cross between managers and entrepreneurs. – They – They work for the corporation but are given the task of starting new ventures. ventures .
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Any Questions?
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What Is Entrepreneurship? Nature of Entrepreneurship •
It is a socio-economic phenomenon.
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Engine of economic growth
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Creator of wealth and employment.
What is Entrepreneurship? •
It is a creative and innovative human act.
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Ability to create and build a vision from practically nothing.
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Vision requires willingness to take calculated risks.
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It is a discipline, hence it can be learned – learned – Peter Peter Drucker
Technopreneurship
Definition of Entrepreneurship “ Entrepreneurship is the ability to create and build a vision from vision from practically nothing. Fundamentally, it is a human, creative act. It is the application of energy to initiating and building an enterprise or organization, rather than just watching or analyzing. This vision requires a willingness a willingness to take calculated risks – – both personal and financial, and then to do everything possible to reduce the chances of failure.
Entrepreneurship also includes the ability to build an entrepreneurial or venture team to team to complement your (the entrepreneur) own skills and talents. It is the knack for sensing an opportunity where opportunity where others see chaos, contradiction, and confusion. It is possessing the know- how to how to find, marshal and control resources, often owned by others.” Technopreneurship Professor
Jeffrey Timmons (1990)
Entrepreneur Are Made and Not Born “The entrepreneurial mystique? It’s not magic, it’s not mysterious and it has nothing to do with the genes. It is a discipline. And like any discipline, it can be learned.” …Peter Drucker Technopreneurship
Why People Become Entrepreneurs? • Definition of an entrepreneur – French – French word “entreprende” meaning „go between‟ or „enter to undertake‟. A person who undertakes to organize, manage and assume risks of business • How people become entrepreneur ? – ? – By By Necessity and Opportunity, Design and Default • Trigge Triggered red by by „Socia „Sociall Disrup Disruptio tion n or Inter Interrup ruptio tion” n” • Entrepreneurs are created in good and bad economic times. • Achievements and Financial Rewards for an Entrepreneur. Technopreneurship
Who Are The Entrepreneurs? •
Paradigm shifters, innovators and opportunists – opportunists – creative destroyers
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Key change catalysts and agents
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Wealth and employment employment creators
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Economic engine drivers
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Key actors of the Malaysian Economy
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Entrepreneurs are made and not born – born – entrepreneurial entrepreneurial propensity
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You can be the entrepreneur - if you have what it takes
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People who like to be their own boss
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People who has experienced a “social disruption”?
• Necessity and opportunity entrepreneurs Technopreneurship
Entrepreneurial Traits (1) Most Important for Success: • Innovative & Opportunistic • Willingness to take risk • Initiative • Self reliance • Perseverance (keep trying to achieve something) • Need to achieve • Self confidence Technopreneurship
Entrepreneurial Traits (2) Important for Success: •
Leadership
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Competitiveness
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Good physical health
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Creative
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High level of energy
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Versatility Technopreneurship
Entrepreneurial Traits (3) Least Important for Success: •
Ability to get along
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Patience
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Well organized
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Desire for money
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Tolerate uncertainty
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Need for power
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Need for affiliation Technopreneurship
Difference Between Entrepreneurship And Small Business Entrepreneurship
Small Business
• Innovation
• Little innovation
• Fast growth
• Static growth
• Vision • Employment creation
• Little vision
• Money making machine
• Family business
• Higher risk
• Earning a livelihood • Low or minimum Technopreneurship
risk
Entrepreneurship Statistics… Do You Know? US Situation
About 1 million businesses are formed each year in the US
Between 70 to 80% failed the first year of start-up start -up
10% to 20% last through the next 5 years
Venture investment 1:10 success rate
Venture capitalists expects between between 5 to 10 times return
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Entrepreneurship Statistics Do You Know?
6 in a million with a high tech business idea eventually becomes a successful company that goes public / IPO.
Fewer than 20% of the funded starts-up go public.
Bankruptcies occur for 60% of the high tech companies that succeed in getting venture capital.
Venture capital investors own a large part of the start-up by the time it goes public: 70 % of hardware companies, 60% of software companies and 50% of internet companies. Source: US Statistics Technopreneurship
Malaysian Setting & Global Scenario
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Mewujudkan masyarakat saintifik dan progresif, masyarakat yang mempunyai daya perubahan tinggi dan memandang ke hadapan, yang bukan sahaja menjadi pengguna teknologi tetapi juga penyumbang kepada tamaddun saintifik dan teknologi Technopreneurship masa hadapan
Malaysia: Enterprising Culture And Nation
Economic Paradigm Shifts 1950s to 2000s.
Wawasan 2020
Ministry for International Trade & Investment - SMIDEC
Ministry for Entrepreneurs & Co-0perative Development.
Multimedia Super Corridor – 7 – 7 Flagships.
MSC Status Privileges & Incentives.
Strong Economic Growth & Social Innovation
Rapid Infrastructure Development.
Industry Promotion of Entrepreneurship: Enterprise 50 Awards, Ernst & Young Malaysian Entrepreneur of the Year Award, Venture 2002, MSC-IHL MSC-IHL Business Plan Competition, Competition, MAVCAP‟s Cradle Investmen I nvestmentt Programme Technopreneurship
MSC Flagship Applications
Smart Schools
Multipurpose Card
Telehealth
Electronic Governme Government nt
Technopreneur Development
R&D Cluster E-Business
Borderless Marketing Technopreneurship
Worldwide
Malaysia Economic Transformation & Drivers Source : Malaysia’s National Economic Action Council Knowledge-based Knowledge-driven
KNOWLEDGE BASED / INTELLECTUAL CAPITAL
HIGH TECHNOLOGY / SERVICES
High-tech Manufacturing & Services Productivity-driven
Medium-tech Manufacturing & Services Investment-driven Assembly-type Manufacturing
TECHNOLOGY / FOREIGN DIRECT INVT Labour-driven
INDUSTRIAL INDUSTRIA L / IMPORT SUBSTITUTION
Primary Commodities Labour-driven
1960
AGRICULTURE / PRIMARY COMMODITY
1970
1980 Technopreneurship
1995
1996
2005
2020
• Competitive, dynamic, robust & resilient • Fair & equitable distribution of wealth • Knowledge economy • Value creation through knowledge products and industry
NITA Vision
2020
c i m o n o c E
• ICT as a sector • Information as commodity
Now • Connectivity of • Empowered citizens networks • Self-regulating • Equitable access to • Self-controlled information • Fostering creativity • Culture of learning • Inclusive society • Information literate Technopreneurship • Strong families
Social • United • Developed & secure • Strong moral and ethical values • Democratic and liberal • Tolerant & Progressive
Strategic Framework For balanced development through innovation, the ‘ ICT4D Framework’ shown, which draws on the principles highlighted thus far, can be used as a guide.
K-economy y g o l o n h & c n e o T i t n a i o t m r a c o i f n n I u m m o C
Innovation for WEALTH CREATION
ICT as a SECTOR Malaysia’s ICT4D program for Innovating towards a K-nation
ICT as an ENABLER
Innovation for BALANCED SOCIETAL DEVELOPMENT Innovation for GOOD GOVERNANCE
K-society Technopreneurship
y r t s u d n I y t e i c o S n r t e n v e o m G -
Framing the Strategic ICT R&D Agenda: Strategic Intent • Innovation for WEALTH CREATION - All sectors of the Malaysian economy creating value and wealth through successful participation in the emerging knowledgedriven global economy - Key focus: Knowledge-driven economy
• Innovation for BALANCED SOCIETAL DEVELOPMENT – Inclusive community development development through provision of life changing ICT applications – Key focus: Knowledge society
• Innovation for GOOD GOVERNANCE – Foster form of accountability and transparency in the process of governance that enhance the quality of life of Malaysians – Key focus: Participating in governance for quality of life Technopreneurship
Any Questions?
Technopreneurship