Beyond Entrepreneurship How Innovation and Entrepreneurship Changes the World Jack M. Wilson The University of Massachusetts © 2012, 2018 2 Beyond Entrepreneurship – J. M. Wilson Beyond Entrepreneurship Table of Contents Beyond Entrepreneurship: How Innovation and Entrepreneurship Changes the World © 2012, 2018 Jack M. Wilson -used by permission Table of Contents BEYOND ENTREPRENEURSHIP: HOW INNOVATION AND ENTREPRENEURSHIP CHANGES THE WORLD © 2012, 2018 JACK M. WILSON -USED BY PERMISSION ............................................................................................... I FORWARD ....................................................................................................................................................... V CHAPTER 1 INTRODUCTION TO INNOVATION AND ENTREPRENEURSHIP: WHAT IS ENTREPRENEURSHIP AND WHO ARE THE ENTREPRENEURS? .......................................................................... 1 MEETING A FEW ENTREPRENEURS .............................................................................................................................. 2 WHO ARE THESE PEOPLE? ..................................................................................................................................... 14 CHAPTER 2 WHY DO ENTREPRENEURSHIP AND INNOVATION MATTER? .................................................... 17 TWO KEY CONCEPTS IN INNOVATION AND ENTREPRENEURSHIP: CREATIVE DESTRUCTION AND DISRUPTIVE INNOVATION ......... 17 WHAT IS ENTREPRENEURSHIP? ................................................................................................................................ 19 TYPES OF NEW VENTURES ...................................................................................................................................... 20 GROWTH AND EXIT STRATEGY ................................................................................................................................. 21 BUSINESS MODEL INNOVATION ................................................................................................................................ 22 INVENTION IS NOT NECESSARILY INNOVATION. ............................................................................................................ 22 OPENNESS AND THE “NOT INVENTED HERE” (NIH) SYNDROME. .................................................................................... 23 MAKING AN ORGANIZATION SUSTAINABLE. ................................................................................................................ 23 INTENSITY OF INNOVATION ..................................................................................................................................... 25 POTENTIAL MODELS OF ENTREPRENEURSHIP TRADITIONAL, EFFECTUAL, LEAN LAUNCHPAD ................................................ 26 CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS .................................................................................................... 27 CHAPTER 3 ILINC: AN EXAMPLE OF TECHNOLOGICAL ENTREPRENEURSHIP ................................................ 31 ILINC .................................................................................................................................................................. 31 THE RESEARCH: .................................................................................................................................................... 31 THE OPPORTUNITY:............................................................................................................................................... 32 THE TEAM: .......................................................................................................................................................... 33 THE EXIT AGREEMENT: .......................................................................................................................................... 34 THE PROTOTYPE: .................................................................................................................................................. 34 START-UP FUNDING –A BOOTSTRAPPING PROCESS: .................................................................................................... 35 THE BUSINESS MODEL CANVAS ............................................................................................................................... 36 BUILDING THE PRODUCT: ....................................................................................................................................... 36 FIRST ROUND OF VENTURE CAPITAL: ........................................................................................................................ 36 THE NEXT TWO ROUNDS OF VENTURE FUNDING: ....................................................................................................... 37 THE PLOT THICKENS: ............................................................................................................................................. 40 GOING PUBLIC: .................................................................................................................................................... 40 THE TRIPLE MERGER - LEARNLINC BECOMES MENTERGY: ............................................................................................. 41 QUESTIONS: ........................................................................................................................................................ 42 CHAPTER 4 RECOGNIZING OPPORTUNITIES TO CHANGE THE WORLD ........................................................ 45 RECOGNIZING GOOD IDEAS AND MAKING THEM HAPPEN. ............................................................................................. 47 A NEW RABIES VACCINE FROM UMASS. .................................................................................................................... 49 FROM TRENDS AND FORCES TO OPPORTUNITY ........................................................................................................... 50 ii Beyond Entrepreneurship – J. 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Wilson TESLA: AN EXAMPLE. ............................................................................................................................................ 52 EXECUTING RATIONALLY ON AN OPPORTUNITY .......................................................................................................... 53 CHAPTER 5 SOCIAL ENTREPRENEURSHIP .................................................................................................... 57 CORPORATE SOCIAL RESPONSIBILITY (CSR) ............................................................................................................... 57 PUBLIC SECTOR -GOVERNMENTS AND QUASI-PUBLICS ................................................................................................ 58 MOTIVATION ...................................................................................................................................................... 58 WHO ARE THE SOCIAL ENTREPRENEURS? .................................................................................................................. 59 IS THE PRIMARY MOTIVE FINANCIAL PROFIT OR SOLVING A SOCIAL PROBLEM? ................................................................... 64 QUESTIONS: ....................................................................................................................................................... 65 CHAPTER 6 BUSINESS MODELS ................................................................................................................... 67 THE BUSINESS MODEL .......................................................................................................................................... 67 UBER ................................................................................................................................................................. 68 COMPONENTS OF THE BUSINESS MODEL .................................................................................................................. 71 DELL COMPUTER ................................................................................................................................................. 72 OTHER EXAMPLES OF BUSINESS MODEL INNOVATION................................................................................................... 73 THE FATAL FLAWS IN BUSINESS MODELS .................................................................................................................... 73 THE CORE STRATEGY ............................................................................................................................................ 74 THE BUSINESS CONCEPT BLIND SPOT ....................................................................................................................... 75 PRODUCT AND MARKET SCOPE. .............................................................................................................................. 75 PARTNERSHIPS .................................................................................................................................................... 75 CUSTOMER INTERFACE .......................................................................................................................................... 76 THE CUSTOMER DISCOVERY PROCESS ...................................................................................................................... 78 SEGWAY: OR HOW TO FAIL AT CUSTOMER DISCOVERY ...............................................................................................