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TIME Research Area | Innovation & Entrepreneurship Group (WIN)
School of Business and Economics
TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)
The Entrepreneurial Mindset
Get Yourself Started
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
THE ENTREPRENEURIAL MINDSET
PITFALLS
IDEA
APPROACH
LEAN
START-UP
TEAM
GET YOURSELF
STARTED
Apply the process of
successful
entrepreneurs
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
School of Business and Economics
TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)
UNCERTAINTY
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
BUSINESS PLAN WON’T HELP IN PRACTICE
A Business Plan helps structuring and challenging your business idea
…but won‘t help in practice due to rising uncertainties
Global markets
Less loyalty of customers/suppliers
Increasing competition
Pressure from financial markets
Shorter product life cycles
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
ENTREPRENEURAL UNCERTAINTIES
MARKET
Customers
Size and growth
Channels
Competitors
[1]
PRODUCT
Cost
Technology
Materials
Suppliers
Design
[3]
MANAGEMENT
Capabilities
Financial Strength
Talent
Learning Skills
Strategies
[2]
[6]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
ENTREPRENEURAL UNCERTAINTIES
Making decisions
is never easy! REGULATION
Government
Federal state laws
local ordinances
Standards and
industry rules
[4]
[6]
FINANCE
Cost and availability
of capital
Expected return on
investment
[5]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
REFERENCES
[1] Segway Inc. (2004): Segway HT i170. URL: https://msu.edu/~luckie/segway/i170/i167-i170.jpg.
Access Date: 17.08.2016
[2] Nisbet, M. C. (2015): Steve Jobs. URL: http://bigthink.com/age-of-engagement/steve-jobs-devotion-to-
alternative-therapies-and-diets. Access Date: 17.08.2016
[3] Deutsches Museum (2016): Ford Model T Touring Car 1922. URL: http://www.deutsches-
museum.de/fileadmin/Content/010_DM/070_Presse/2005_08/t_dm600.jpg. Access Date: 17.08.2016
[4] Freier, A. (2015). Uber usage statistics and revenue. URL: http://www.deutsches-
museum.de/fileadmin/Content/010_DM/070_Presse/2005_08/t_dm600.jpg. Access Date: 17.08.2016
[5] © Tesla Motors
[6] Dorf, R., Byers, T. (2008): Technology Ventures – From Idea to Enterprise. McGraw Hill, p.138.
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
School of Business and Economics
TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)
THE
ENTREPRENEURIAL
PROCESS
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
MITIGATE UNCERTAINTIES - HOW?
The
Entrepreneurial
Way!
THE ENTREPRENEUR LARGE COMPANY
“I had to give it a
full go and see
what happened.” Michel Dell [1]
DATA
Based on future expectations
Scenario 1
PLAN
Scenario n Scenario 2
Focus on planning & prediction Focus on skills, knowledge
and own resources
[2]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
RECAP: SARASVATHY’S EXPERIMENT
27 Expert
Entrepreneurs
Saras D. Sarasvathy
[3]
[4]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
THE ENTREPRENEURIAL PROCESS
MEANS GOALS INTERACTION COMMITMENT
Who am I?
What do I know?
Who do I know?
What can I do? Interact with persons I know
Get commitment of stakeholders
CONTINGENCY
NEW MEANS
NEW GOALS
[4]
CO-CREATE NEW PRODUCTS, MARKETS, AND FIRMS
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
ENTREPRENEURIALS PRINCIPLES
[4]
View of the future Focus on prediction: Analyzing
data of the past to forecast
Focus on control: Environment is
considered shapeable
Basis for taking action
Goal-oriented: Goal (ends)-
driven action, estimation of
necessary means
Means-oriented: Preferences,
knowledge, networks, unspecified
goals
View of risk and return
Expected return: Decisions
based on expected risk-adjusted
value
Affordable loss: Restriction on
downside potential
Attitude towards
outsiders
Competitive analysis: Highly
competitive relation
Partnerships: Committed partners
who contribute several means
Attitude towards
contingencies
Avoiding surprises: Don’t get of
the course
Leveraging contingencies:
Incorporation of external
information
LARGE COMPANY ENTREPRENEUR DIMENSION
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
REFERENCES
[1] Dell, M.: URL: http://www.investerarcitat.se/internet/michael-dell-2/. Access Date: 17.08.2016
[2] Hartmann Studios (2011): Michael Dell. URL: https://www.flickr.com/photos/oracle_images/6211618173/.
Access Date: 17.08.2016
[3] University of Virgina (2016): Saras D. Sarasvathy. URL: http://www.darden.virginia.edu/faculty-
research/directory/saras-d-sarasvathy/. Access Date: 17.08.2016
[4] Dew, N., Read, S., Sarasvathy, S. D., & Wiltbank, R. (2009): Effectual versus Predictive Logics in
Entrepreneurial Decision-making: Differences between Experts and Novices. Journal of business venturing,
24(4), 287-309
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
School of Business and Economics
TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)
MEANS
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
ASSES YOUR MEANS
What do I
know? Who am I?
Whom do I
know?
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
GET TO KNOW YOUR MEANS
1
ASSES
What are your
strengths?
What are you
good at?
1
REFLECT
In which context
did you use your
strengths?
Which skills &
knowledge were
required in these
situations?
2
TRANSFER
In which context
do I want to
apply my skills &
knowledge?
Which is the
closest context
for me to use my
skills &
knowledge?
3
[1]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
FREITAG BROTHERS
[2] [2] [2]
[2] [2] [2]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
REFERENCES
[1] Faschingbauer, M. „Effectuation (2010): Wie erfolgreiche Unternehmer denken, entscheiden und handeln.
Schäffer Poeschl.
[2] Freitag, D. (2016): From Truck till Bag. URL: https://www.freitag.ch/de/about/production. Access Date:
17.08.2016
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
School of Business and Economics
TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)
AFFORDABLE LOSS
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
RISK & RETURN
NON-ENTREPRENEURS EXPERT ENTREPRENEURS
“Our goal is 25 percent return
on equity.”
Josef Ackermann,
former CEO of Deutsche Bank [3]
“Good entrepreneurs don’t like
risk; they seek to reduce risk [...]
Starting a company is already
risky, and then you systematically
eliminate risk step by step in
those early days….”
Jeff Bezos, CEO of Amazon [4]
[2] [1]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
FOCUS ON AFFORDABLE LOSS
Michel Dell
Started his company with an initial investment of US$ 1.000
Leonard Shoen
Started his company with an
initial investment of US$ 5.000
[5]
[6]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
TRADITIONAL APPROACH OF MANAGERS
1
STEP 1 Pick a target return
STEP 2 Reduce risk using
insurances etc.
High Low
Hig
h
Low
Return
Ris
k
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
ENTREPRENEURIAL APPROACH
STEP 1 Pick a comfortable
level of risk
STEP 2 Push creatively to
increase return.
[7] High Low
Hig
h
Low
Return
Ris
k
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
CONTROLLING THE INPUT
EXPERT ENTREPRENEURS
???
Re
turn
In
pu
t
NON-ENTREPRENEURS
Retu
rn
Input
[8]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
REFERENCES
[1] Engdahl, W.F. (2011): Ackermann’s Deutsche Bank Follies: Chickens Come Home to Roost. URL: http://www.voltairenet.org/article167456.html. Access Date: 17.08.0216
[2] Rodriguez, R. (2016): 10 Frases de Grandes Emprendedores. URL: http://rodolforodriguez.net/wp-content/uploads/2016/08/item_item7-600x470.jpg. Access Date: 17.08.2016
[3] Spiegel Online (2010): The World from Berlin: Is Deutsche Bank Becoming a Paragon of Modesty?. URL: http://www.spiegel.de/international/business/the-world-from-berlin-is-deutsche-bank-becoming-a-paragon-of-modesty-a-676213.html. Access Date: 17.08.2016
[4] Bulygo, Z. (2013): 12 Business Lessons You Can Learn from Amazon Founder and CEO Jeff Bezos. URL: https://blog.kissmetrics.com/lessons-from-jeff-bezos/. Access Date: 17.08.2016
[5] Hartmann Studios (2011): Michael Dell. URL: https://www.flickr.com/photos/ oracle_images/6211618173/. Access Date: 17.08.2016
[6] U-Haul (2014): L.S. “Sam” Shoen. URL: http://myuhaulstory.com/2014/12/23/m-carty-u-haul-trailer-man/. Access Date: 17.08.2016
[7] Sarasvathy, S. (2011): Stuart Read IMD Business School.
[8] Faschingbauer, M. (2010): Effectuation: Wie erfolgreiche Unternehmer denken, entscheiden und handeln. Schäffer Poeschl, p. 203
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
School of Business and Economics
TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)
CONTINGENCY
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
LEVERAGE CONTINGENCIES
POTATO CHIP
• Guest complained
about potatoes
being too thick
• Chef cut them as
thin as possible
POST IT
• Developed glue that
isn’t sticky
• No industrial use
new
opportunities
[1,2]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
CONTINGENCIES
A B A
Y
Z
…
1
NON-ENTREPRENEURS EXPERT ENTREPRENEURS
“I always tried to turn every
disaster into an opportunity.” John D. Rockefeller [4]
[3]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
SURPRISES AS NEW OPPORTUNITIES
CURIOSITY MODE NEW DIRECTIONS
Be open for
surprises.
TRY NEW THINGS
Meet new people.
Expose yourself to
new ideas.
In which direction do
you go?
1
[5]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
SURPRISES AS NEW OPPORTUNITIES
SUPRISES CHANGE WHAT CAN YOU DO
What did surprise
you?
What can you do
with your new
means?
How did your means
change?
[5]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
REFERENCES
[1] Wikipedia the Free Ecyclopedia (2016): Potato Chip. URL: https://en.wikipedia.org/wiki/Potato_chip. Access
Date: 17.08.2016
[2] Wikipedia the Free Ecyclopedia (2016): Post-it note. URL https://en.wikipedia.org/wiki/Post-it_note. Access
Date: 17.08.2016
[3] Wikipedia the Free Ecyclopedia (2016): John D. Rockerfeller. URL:
https://en.wikipedia.org/wiki/John_D._Rockefeller#/media/File:John_D._Rockefeller_1885.jpg. Acces Date:
17.08.2016
[4] Rockerfeller, J. URL: http://www.goodreads.com/quotes/1252000-i-always-tried-to-turn-every-disaster-into-an-
opportunity. Access Date: 17.08.2016
[5] Faschingbauer, M. (2010): Effectuation: Wie erfolgreiche Unternehmer denken, entscheiden und handeln,
Schäffer Poeschl, p.205.
[6] TallyPress (2016): 8 Ways to Look At It, When Life Gives You Lemons. URL:
http://static1.squarespace.com/static/53ec5e31e4b0fd0d4cf4d36f/t/550fca86e4b000acf77b25e9/14270982491
92/when+life+gives+you+lemons+make+lemonade. Access Date: 17.08.2016
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
School of Business and Economics
TIMEResearch Area | Innovation & Entrepreneurship Group (WIN)
START WITH WHY
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
WHY?
"People don't buy what you do,
they buy why you do it.“
Simon Sinek [2]
[1]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
THE GOLDEN CIRCLE
Why
How
What
WHAT
Every organization
knows what they do
HOW
Some organizations
know how they do it
WHY
Very few organizations
know why they do it.
Products or
services they sell
That’s what makes
them special
It’s the very reason
why they exist
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
START WITH WHY
Why
How
What
• Inside-out direction
• Start with your purpose or cause
• That’s how you drive decision-making
and behavior
[2]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
WHY APPLE?
Why
How
What
APPLE
[2]
[3]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
WHAT ELSE MADE APPLE SUCCESFULL?
“Great things in business are never done by one person. They're done by a team of people.”
Steve Jobs [5]
[4]
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
THE ENTREPRENEURIAL MINDSET
PITFALLS
IDEA
APPROACH
LEAN
START-UP
TEAM
GET YOURSELF
STARTED
Create your business
idea and evaluate its
potential
Unfold your
entrepreneurial
personality
Apply the process of
successful
entrepreneurs
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
THE ENTREPRENEURIAL MINDSET
PITFALLS
IDEA
APPROACH
LEAN
START-UP
TEAM
GET YOURSELF
STARTED
Create your business
idea and evaluate its
potential
Unfold your
entrepreneurial
personality
Apply the process of
successful
entrepreneurs
Build your own team
and establish relevant
partnerships
?
TIME Research Area | Innovation & Entrepreneurship Group (WIN)
REFERENCES
[1] Start with Why (2011): Simon Sinek. URL: http://www.startwithwhy.com. Access Date: 17.08.2016
[2] Sinek, S. (2011): Start with Why: How Great Leaders Inspire Everyone to Take Action.
[3] Apple Inc. (2016): Buy iMac. URL: http://www.apple.com/shop/buy-mac/imac. Access Date: 17.08.2016
[4] Yohe, M. (2010): Steve Jobs. URL: http://www.namespedia.com/image/Jobbs_8.jpg.
Access Date: 17.08.2016
[5] Griggs, B. (2011): 10 great quotes from Steve Jobs. URL:
http://edition.cnn.com/2012/10/04/tech/innovation/steve-jobs-quotes/. Access Date: 17.08.2016