Learning Log for Corporate Entrepreneurship, Management and Technology Course
By Kaisul Kabir (Study No-20251028)
Lecture-1 (Introduction to Corporate Entrepreneurship, Management and Technology)
Corporate Entrepreneurship (CE): Wolcott and Lippitz define the term CE as the process by
which teams within an established company conceive, foster, launch and manage a new
business that is distinct from the parent company but leverages the parent’s assets, market
position, capabilities or other resources.
Exploration, Exploitation & Ambidextrous Organizations: Companies must balance
exploring new opportunities (innovation, risk-taking) and exploiting existing business models
(efficiency, optimization). Ambidextrous Organizations balance exploration and exploitation
by integrating innovative and efficient parts of the business, enabling adaptability and longterm growth.
Incremental vs. Radical Innovation: Incremental innovation focuses on small improvements
to existing products and services, while radical innovation creates entirely new markets,
products or business models. Both require different approaches; companies often balance
incremental innovation to sustain current offerings while pursuing radical innovations for longterm growth.
Ambitious & Disruptive Innovation: Ambitious innovation refers to forward-thinking efforts
to create significant advancements that push boundaries beyond incremental improvements but
may not disrupt entire market like SpaceX´s reuseable rockets. Disruptive innovation,
popularized by Clayton Chistensen, describes innovation that reshape markets or value
networks by targeting overlooked segments, eventually displacing established market leaders
like Netflix´s shift from DVD rentals to streaming.
Challenges in CE: Companies face uncertainty, high investment costs, supply chain
complexity, and resistance to change. Successful innovators often combine multiple types of
innovation to overcome these barriers. To cope with these challenges companies should offer
something innovative, very complex, in better ways like UBER, DELL, NVIDIA, Amazon did.
Lecture-2 (Corporate Entrepreneurship Basic Principles & Enablers)
Basic Principles of CE Implementation:
Véronique Bouchard and Alain Fayolle, in their work on corporate entrepreneurship propose a
model of four basic principles for successfully implementing and fostering entrepreneurial
initiatives within established companies.
i.
Autonomy: Freely explore the resources available and react swiftly to opportunities and
threats. Example- Lockheed Martin Skunk Works, Sony PlayStation are some
autonomous projects.
ii.
iii.
iv.
Extra-Motivation: Providing intrinsic rewards and recognition. Example- Google
“20% time” leading to the invention of Gmail & Google Maps, Pfizer’s “Spark”
program.
Resource Discipline: Allocating targeted resources to avoid waste. Example-BMW
Startup Garage, Airbus BizLab Provides seed resources, but with strict evaluation
criteria before scaling.
Integration/Institutionalization: Ensuring sustainability and alignment with business
goals. Example- Danfoss IXA, Apple iPod Team later fully integrated into company’s
core business and strategy.
The Giant Hairball theory: Developed by Gordon Mackenzie, he advocates “orbiting” the
hairball: staying connected to the organization’s core mission (like a gravitational pull) while
maintaining enough distance to foster originality, experimentation, and personal authenticity—
essentially enabling “responsible creativity” without being engulfed by the bureaucracy.
Seven Key Enablers of CE (from Bouchard & Fayolle):
i.
ii.
iii.
iv.
v.
vi.
vii.
Explicit commitment from top management-Jeff Bezos protecting AWS, William
McKnight’s 3M giving explicit protection to the team.
Creating islands of autonomy in the workplace- Google’s X (Moonshot Factory), Sony
‘s PlayStation working as a semi-independent unit.
Improving communication and access to information- Cases like IKEA Bootcamp,
Danfoss ‘Man on the Moon Project’, Grundfos annual ‘fair’ illustrate CE
implementation through collaboration.
Promoting CE through HR policies- Telenor Ignite, Deloitte leadership development
programs illustrate CE implementation through policies.
Setting up incentive and reward systems- Google Founders’ Awards, Pfizer Spark
Award offers equity-like rewards for internal entrepreneurs.
Establishing formal entrepreneurial project evaluation and support process- Lockheed
Martin’s Skunk Works, Siemens Next47 accelerator, Danfoss Venture Screening
supports entrepreneurs
Implementing ad hoc time allocation policies- 3M’s 15%-time policy, Google’s 20%time result in new innovations
Lecture-3 (Corporate Entrepreneurship Process I-Ideas)
Peter Drucker, in his 1985 book Innovation and Entrepreneurship, identified seven sources of
innovation that entrepreneurs and organizations can leverage for systematic innovation. These
are:
i.
ii.
iii.
The Unexpected: Opportunities from unexpected successes, failures, or events (e.g.
Penicillin, X-Ray, Viagra (Pfizer))
Incongruities: Gaps between expectations and reality in markets or processes (e.g.
Airbnb)
Process Need: Improvements driven by weaknesses in existing processes (e.g. Uber,
Zoom)
iv.
v.
vi.
vii.
Industry/Market Structure Change: Shifts in competitive landscape, players,
expectations (e.g. Apple iTunes/Spotify, Netflix-From DVD rentals to rise of online
streaming)
Demographics Changes: Changes in population size, age, or income (e.g. TikTok)
Changes in Perception: Shifts in societal attitudes or behaviors (e.g. IKEA’s circular
economy model, Tesla & EVs)
New Knowledge: Innovations based on new scientific or technological advancements
(e.g. CRISPR gene editing, AI, AR, self-driving cars)
Lecture-4 (Corporate Entrepreneurship Process II)
Not-to-do process model for CE: Stage-Gate Models
Widely used in New Product Development for incremental innovation in medium size and large
companies. Not suitable for radical/ambitious innovation because this model assumes
predictable outcomes. The risk associated in this model is it often “incrementalize” innovation,
forcing it to fit existing business.
To-do process models: Corporate Entrepreneuring /radical innovation process models
i.
Bouchard & Fayolle (2018):
Detect an opportunity → Spot new ideas-Example: 3M scientist noticed a weak adhesive could
be useful → led to Post-it Notes.
Get initial support → Gain early backing-Example: Google’s “20% time” allowed Gmail’s
creator to get informal support from colleagues.
Get official support → Secure formal approval & resources-Example: Amazon AWS got Jeff
Bezos’ formal approval after showing prototypes and business potential.
Make it happen → Execute with persistence & teamwork-Example: Tesla built
multidisciplinary teams to develop EVs despite risks and industry resistance.
Plan the exit → Integrate or spin off for sustainability-Example: Sony PlayStation started as
an internal project, then became a fully integrated and profitable division.
ii.
Gina O’Connor et al. DIA Model:
Discovery: Conceptualize opportunities via hunting (trend mapping, idea generation), research
Incubation: Evolve ideas into propositions through technical/market learning, prototyping
Acceleration: Scale successful prototypes, mainstream innovations, and prepare for
organizational implementation.
iii.
Burgelman’s process model of Internal Corporate Venturing: Internal corporate
venturing emphasizes balancing core and exploratory activities.
Complementary Process Frameworks
Lean Startup Model
The Lean Startup methodology, developed by Eric Ries, is designed to help entrepreneurs build
businesses and products more efficiently and with less risk.
Core Cycle: Build → Measure → Learn
- Build: Create an MVP — the simplest version of idea that can be tested; Measure: Collect
data on how customers interact with it; Learn: Analyze feedback to validate or pivot
assumptions
Two Key Hypotheses: Value Hypothesis: Does the product deliver real value to customers? &
Growth Hypothesis: Can the product reach and retain more users over time?
Lecture-5 & 6 (Corporate Entrepreneurship Process III- Danfoss IXA living case)
Practical Application of CE enablers & process models: Danfoss IXA Case
IXA Journey: From skunkworks in 2003 to a global marine emissions tech leader by 2024.
Key milestones: Multiple prototypes, venture spin-off, product launches, strategic pivots.
Overcame internal resistance (“Nuremberg Process”) through persistence, internal alliances,
and proof-of-concept.
Strategic Tools Used: Skunkworks, venture incubation, corporate venture capital, internal
scouting, and strategic partnerships.
Aligned with CE enablers: autonomy, top management support, and formal evaluation.
Team Building & Culture: Emphasis on diverse, driven, and complementary teams.
Leadership adapted through phases: Exploration → professionalization → expansion.
Danfoss Venture Strategy: It focuses on driving innovation and future growth by investing in
emerging ventures. It aims to:
Create new business through innovation, acting as the Group’s innovation hub; Build a
portfolio of 40–50 direct venture investments plus additional ventures in Entrepreneur Park;
Expand strategically from core business into adjacent and new areas using venture spinouts;
Screen and nurture ideas through a structured funnel involving cross-functional teams and
staged approvals.
In essence, Danfoss uses venture investments to explore new technologies and markets while
staying anchored to its core strengths.
Lecture-7 (Innovation in the circular economy)
Circular Economy: The circular economy aims to eliminate waste, keep materials in use, and
regenerate natural systems. It offers opportunities for sustainability, resource efficiency, and
new business models like "Product-as-a-Service." Innovation in the Circular Economy explores
how innovation drives circular economy practices. It highlights:
Circular economy principles: Designing out waste, keeping materials in use, and regenerating
natural systems.
Innovation strategies: Product design, business models, and system-level changes that support
circularity.
Case studies and examples: Real-world applications from industries transitioning to circular
models.
Tools and frameworks: Methods for evaluating circular potential and guiding innovative
decisions. Overall, it emphasizes the role of innovation in enabling sustainable, regenerative
economic systems.
Lecture-8 (Corporate Entrepreneurship Process IV-Incubation)
Incubation refers to the process of nurturing and developing new business ideas, technologies,
or ventures within an established organization until they are mature enough to be launched as
standalone entities or integrated into the core business.
Traditional and agile innovation approach: These approaches illustrate how uncertainty
decreases, and resource commitment increases over time, highlighting the critical point of lockin where decisions become harder to reverse. It emphasizes that while risks are predictable,
uncertainties are not—making agile, iterative cycles more effective for navigating unknowns
in innovative projects.
The Blue Ocean Strategy canvas & The Four Action Framework: Blue Ocean Canvas is a
visual framework that helps organizations compare their value offerings against competitors.
The 4-action framework is a strategic tool from the Blue Ocean Strategy that helps
organizations reshape their value proposition by challenging industry norms. It prompts
companies to identify which factors to eliminate and create to craft a new value curve that
stands apart from competitors.
Prototyping: It is the creation of an early model to test and refine a product before full
development. It helps reduce errors and improve design but can be time-consuming and may
lead to unrealistic expectations, sometimes diverts focus from long-term strategy to short-term
fixes.
Validated Learning in The Startup Way: It is a disciplined approach to testing a startup’s
leap-of-faith assumptions using real customer data and rapid experimentation. It centers on the
Build-Measure-Learn cycle, where teams create minimum viable products (MVPs) to gather
actionable insights and iterate quickly. This process helps startups pivot strategically while
staying anchored to their long-term vision, ensuring progress is based on evidence—not
intuition.
Learning Plan: A learning plan is a structured approach to systematically reduce uncertainty
in innovation projects by prioritizing critical assumptions and testing them efficiently. Key
principles include starting with the riskiest unknowns, stopping learning becomes too costly,
and focusing communication on top management to align decisions with evidence-based
insights.
It was fun to utilize the learning plan tool on FLIP case.
Lecture-10 (Open Innovation)
Open Innovation: Coined by Henry Chesbrough, OI is a model where companies actively
leverage both internal and external sources of ideas, technologies, and ventures to accelerate
innovation. Instead of relying solely on in-house R&D, firms allow knowledge to flow in and
out.
Closed Innovation vs Open Innovation Paradigm: The Closed Innovation Paradigm relies
on internal expertise, strict control of intellectual property, and the belief that success comes
from being first to market and owning all R&D outcomes. In contrast, the Open Innovation
Paradigm embraces collaboration with external partners, values shared IP through licensing
and focuses on building superior business models rather than racing to market.
Types of Open Innovation:
Inbound Innovation: Leveraging external knowledge (e.g. technologies, ideas, IP) to enhance
internal innovation. Example: Real-world examples illustrate how companies like Procter &
Gamble, Siemens, OhmyNews, Abybro Mejeri and LEGO leverage open innovation.
Outbound Innovation: Sharing internal innovations externally to create value beyond the
firm. Example: IBM's Patent Licensing, Xerox PARC's Spin-Offs, Tesla's Open Patent Pledge
are some real-world examples.
Coupled Innovation: Combining inbound and outbound flows through partnerships and cocreation. Example: Open Discovery Innovation Network (ODIN), DTU Skylab's Open
Innovation Programs, AAU Innovate, BMW-Daimler (Mercedes) Partnerships, and XPRIZE
Foundation are some real-world examples.
Challenges of Open Innovation & ways to overcome: Chesbrough (2003) highlights that
open innovation faces challenges like cultural resistance (NIH syndrome), IP risks,
coordination complexity, knowledge integration difficulties, and trust issues with partners.
These can be overcome by fostering a pro-collaboration culture, creating clear IP agreements,
strengthening absorptive capacity, building trust through transparent partnerships, and setting
measurable KPIs to track value.
My overview of the course: It was fun to learn the Corporate Entrepreneurship
main concepts, models and frameworks with real world examples and interaction
of students with professor make it livelier. The association of guest lecturers to
share their opinion in person was the best part for me.