The entrenovational process describes the areas of responsibility, from the identification of a “novel-idea” through to the integration into a business stage. Integration is completed in collaboration with management of the business.
General Entrenovation Process
Formal validation of the novel-idea, including a recommendation to proceed with development, will demonstrate that the idea has been found to have all attributes a new product or service must have to become a commercial success. Once validated the novel-idea is ready to be developed and ultimately integrated into a business plan that includes the marketing and selling of the new product or service.
Entrenoveurs are practitioners of entrenovation and are the managers of the innovation process. The practice of entrenovation requires knowledgeable input from a variety of specialists and disciplines. An entrenoveur identifies or acquires a novel-ideas and manages the process that converts the novel-idea into a market-worthy product or service that, upon integration into a business, will disrupt business paradigms and assume a market leadership status.
The life cycle
From inception, growth of a business is subject to the success of internally induced organic growth. Each new growth stage, while enhancing the growth potential of the concern, could be expected to have a similar “s-curve” life cycle. Ultimately, continued growth of shareholder value is typically dependent upon the success of internal entrenoveurial input, and from the acquisition of externally generated novel-ideas, or from the acquisition of compatible companies with acceptable growth potential.
Today, mature companies often acquire early stage growth enterprises to take advantage of potential growth beyond the value of the acquisition. When the business environment affords the opportunity, this action appears to be a strategy that is viewed as more successful than a strategy that relies on internally generated growth.
This graphic illustrates two significant differences in the contributions of the entrenoveur manager and the entrepreneur manager.
- Through the management of an entrenoveur, the novel-idea is proposed and, if warranted, justified as a development idea worthy of being developed into a commercial product or service. At the end of the development cycle, the project is handed off to the entrepreneur who manages integration of the new product or service into the business of the organization.
- The entrepreneur, while co-ordinating with the entrenoveur, manages the preparation of the product or service for the market and oversees the actions required to market and sell the product or service. The entrepreneur is focused on marketing and selling the product or service and managing the growth of the enterprise.
These distinctions, in part, describe the differing process contributions of the practices of entrenovation and entrepreneurship. Two skill sets are required; each at different stages in the business life cycle.