EntrepreneurshipLesson 4 of 5 in the course Management of Technology and Innovation

Entrepreneurial Value Propositions, Lean Methods, and Organizational Agility

4 flashcards · 3 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

Entrepreneurs introduce new products, services, and processes in uncertain markets. Management of technology and innovation (MTI) skills help them assess opportunities, use scarce resources wisely, and adapt as they learn. These skills also matter in established firms that want to preserve an entrepreneurial mindset.

These questions connect the customer offering to the business model and competitive position. For example, a mobile application business might generate revenue through subscriptions while positioning its product as a convenient, specialized tool. A promising idea needs both a way to create value for users and a credible way for the firm to capture value.

All flashcards

What is a value proposition?
It describes the value a firm's offering creates, how the firm expects to make money from it, and how it will be positioned in the marketplace.
Why are new entrepreneurial ventures often resource-constrained?
They commonly have little slack: money is tight, labor is limited, and time is scarce. These limits make careful use of resources especially important.
When is a lean start-up approach especially applicable?
It is especially applicable when development costs are low and revisions are relatively inexpensive, so a firm can test ideas and adapt incrementally.
How can established firms encourage entrepreneurial activity?
They can give employees flexibility and time to explore innovative projects, while developing enough structures and processes to coordinate as the firm grows.

Quiz questions

  1. Which two questions does a value proposition address?Answer: How revenue will be earned from an offering and how the firm will be positioned.
  2. Why can lean start-up methods be useful to some entrepreneurial firms?Answer: They support testing and incremental changes when development and revision are inexpensive.
  3. What management challenge can arise when an entrepreneurial firm grows?Answer: It may need structures and processes for coordination while preserving enough flexibility to continue innovating.

Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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