Section 1.1: Corporate Intrapreneurship

Entrepreneurship isn't exclusive to startups; large corporations are also striving to cultivate an entrepreneurial spirit. Executives at major companies recognize that fostering entrepreneurial activities is crucial for sparking innovation, yet the bureaucracy inherent in large organizations can hinder these efforts.

To combat this, many companies implement policies that support what they term intrapreneurship. For instance, at Cisco Systems, intrapreneurial initiatives resulted in several spinoff companies—such as Cordis Corp. and Equinox—collectively generating nearly $700 million for Cisco. Similarly, QUALCOMM's intrapreneurship led to the creation of the wireless Web company Handspring, while Sun Microsystems facilitated the emergence of various successful ventures like Caldera Systems.

Intrapreneurship focuses on fostering innovative concepts within large organizations by organizing innovation into smaller, often independent units. These units empower employees to adopt a more entrepreneurial mindset. A notable example is Intel's initiative for new business development, which arose from employee feedback expressing a desire for entrepreneurial opportunities. Although Intel primarily operates in the microprocessor sector, this initiative encourages the exploration of non-microprocessor ventures.

Intel's approach includes granting employees time and financial backing to pursue their innovations. A case in point is Intel engineer Paul Scagnetti, who developed the Vivonic fitness planner, a handheld device designed to assist individuals with their fitness routines.

Intrapreneurship is equally applicable to service innovation. For instance, Canada's Sunlight Financial Insurance Company has a dedicated team of 60 employees who operate independently to create new insurance offerings, such as specialized products for university professors. According to the vice president of group benefits, this autonomous team functions like a laboratory, continuously innovating and launching new services.

Section 1.2: Business Incubators

Business incubators play a pivotal role in helping entrepreneurs and managers refine their product ideas. These centers provide essential advice, resources, and support needed to nurture emerging concepts. Some businesses establish their own incubators, while others are affiliated with universities. For example, IBM has set up numerous business innovation centers globally, where trained personnel collaborate with clients to leverage IBM's products and services to commercialize their innovative ideas.

Section 1.3: New-Product Development Teams

The traditional approach to new-product development often resembles a relay race, where various departments—such as research and development (R&D), marketing, finance, and production—pass the project along sequentially. This method can be inefficient, as it may slow down the identification of potential issues and the implementation of necessary changes.

To address these challenges, more organizations are adopting a collaborative approach by forming small, multifunctional teams. These teams, which include members from R&D, finance, sales, production, and engineering, work together throughout the development and commercialization of new products. This shift transforms the process from a relay race into a collaborative effort, allowing team members to interact and refine their ideas continuously.