- An entrenoveur uses innovation to develop a product or service that will disrupt a business paradigm.
- An entrepreneur starts and manages businesses, while accepting the business risks; a goal being to make a profit .
An entrenoveur’s path:
Whether resulting from searching for a novel idea, or resulting from an insightful flash, the entrenoveur owns an innovative idea that may have significant potential as a business opportunity. The entrenoveur will:
- Identify a novel idea, be it a flash of genius or from research.
- Through rigorous investigation and analysis, validate the idea and prepare a justification statement recommending development of the idea. Upon acceptance of the recommendation proceed with planning.
- Create a development plan:
- An enterprise may treat it as a formal project requiring a professional project manager.
- An individual will likely efficiently employ project management tools but not engage a professional project manager.
- Execute the development plan (while anticipating it will be replaced by a business plan when appropriate).
- Introduce the developed product or service to the practice of entrepreneurship in preparation for integrating it into a business.
The entrepreneurship intersection
- The entrenoveur will either employ entrepreneurial skills and, at the appropriate time, develop a business plan, or engage an entrepreneur to generate a business plan.
- The entrepreneur will execute the business plan, take the product or service to market, and manage the new venture. The entrepreneur may, or may not, be the entrenoveurial founder.
The life cycle
From inception growth of the business is subject to the success of internally induced organic growth. Each new growth stage could be expected to have a similar “s-curve” life cycle. Ultimately, continued growth of shareholder value is dependent upon the success of entrenoveurial input.
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 being more successful than a strategy that relies on internally generated growth. Acquisition for growth is only one source of innovative opportunity.
This graphic illustrates two significant differences in the contributions of the entrenoveur and the entrepreneur.
- First, the entrenoveur brings forward and justifies a novel idea, from the idea develops a product or service, and hands-it-off to the entrepreneur. The entrepreneur then prepares the product or service for the market and takes the actions required to market and sell the product or service. They each contribute to different stages in the life cycle.
- Second, the skill set of the entrenoveur is focused on converting a novel idea into a 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 differences between the practices of entrenovation and entrepreneurship. Two skill sets are required at different stages in the business life cycle.