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Page 1: Entrepreneurial Organization

Entrepreneurial organization

Renate Vince consulting services

Page 2: Entrepreneurial Organization

2

Competitive industry

•Shorter position of advantage

•Continuous innovations

•Too many players

Customer expectation

•High value at low cost

•Multi vendor - Best of brands

•Personalized services

Market

uncertaint

y

•Disruptive•Shorter trend cycles•Economic downturn

Strategies must focus on getting more efficiencies, delivering better and

new products and using technology more effectively without exploding

costs.

Current business scenario

Gestation

Inception

Growth

Maturity

Business development cycleCurrent business environment

Page 3: Entrepreneurial Organization

3

Competitive industry

Customer expectation

Market

uncertaint

y

Demands in the SME business environment

Gestation

Inception

Growth

Maturity

Growth consulting

Technology & production consulting

Marketing & competing strategies

Financial engineering

Team & management consultation

Problem definition

Environmental factors

Business growth

Page 4: Entrepreneurial Organization

Angel, FFF Vcs, Sttrategic investors / M & AStrategic alliances

RVCS Vision

Gestation

Inception

Growth

Maturity

Early stage Later stage

1st stage

2st stage

3st stage

MezzanineIPO

Seed capital

Growth consultingTechnology & production positioningMarketing & competing strategies

Financial engineeringTeam & management consultation

Enable business growth of SMEs through systematic management , product positioning & marketing strategies and financial structuring

Positive cash flows

Stakeholders value creation

Financial relationship

Manageme

nt decision

Page 5: Entrepreneurial Organization

RVCS ability to deliver

• Network of channel partners

• SME in domain & technology

• Bankers & investors• Financial structuring• Resource funding• Alliances with

institutions & investors

• Leaders with experience of running own companies, CEOs

• Team building

• Experienced people from the industry

• R & D depth• Strategy & Benchmarking

Sector expertise

Entrepreneurial skills

Product & Market capture

Investment management

Page 6: Entrepreneurial Organization

Service offering & value proposition

Growth

Technology & productsMarketing & competitionFinancials

Team & management

Customer

InnovationFinance

Process

Increase stakeholder value

Maximize economic value

Enhance customer satisfaction

Optimize internal cost

Establish growth areas

Holistic business consulting Well defined environment focus Constructive value proposition

Organization growth

Idea generation Start up Growth Maturity

Domains IT & ITES Telecom Education Medical systems Logistics

Investor relations Valuations Investment

management M & A Disinvestments

Page 7: Entrepreneurial Organization

Engagement modelOverview

• Introduction & understanding•Evaluate client preparedness for due diligence phase

Study

•Company assessment•Gaps definitions•Growth recommendations• Offering at T & M capped at 21 days max

Due diligence •Recommendation

requirements setup • Initial fund requirements execution

• Joint governance establishment

•Commission on funding @ 2% - 7% based on complexity

Collaboratio

ns

• Jointly manage organization growth as stakeholder participation

•Equity up to 20%

Partnership

Page 8: Entrepreneurial Organization

List of clients

•Oriental software Pvt ltd•Inception stage•funding of INR 10 Million

•Sales strategy & augmenting sales force

•Crane software •Inception stage•Funding of INR 20 Million

IT•Electrohms Pvt ltd•Idea generation•Working capital of INR 40 Million

•Sales strategy•Gwasf•Growth expansion•Sales strategy •Organization restructure

•Working Capital of INR 40 Million

SME

•Jupitor Organic Ltd•Growth stage•Private placement of equity shares of INR 20 million to •SBI mutual funds•Morgan Stanley

Pharmaceutical

Page 9: Entrepreneurial Organization

M1 Medical systemsFlyer

Sector Medical devices

Organization stage Concept

Assessment brief Organization

▪ – on paper Strategy

▪ – sound People

▪ – competent Product & competitrs

▪ proven & appreciated▪ Competition – more like to

cvolaborate Market -

▪ Diagnostic labs. Hospitals Financials

▪ Personally funded the idea , initial prototype and application of patent

Product / service description Palm sized whole body CT & MR

compatible stereotactic needle placement device that performs Biopsy, Aspiration, Injection drugs, electrode implantation, Stimulation, endoscope placement

Compelling reason Existing frames are expensive,

requires significant training, cannot be used on infants not disposable

Existing methods are costly and longer time for surtgical preparation

Mi;s prototype does it at a very low cost

Highly recommended by international experts in that field

Page 10: Entrepreneurial Organization

Brio TelecomFlyer

Sector Telecom

Organization stage Growth

Assessment brief Organization

▪ Pvt limited with strong delivery capabilities

Strategy ▪ Clarity of the market and solutions in

place People

▪ Very strong telecom skills Product & competition

▪ proven & appreciated▪ Competition – Dialogic; Don jin

Market -▪ Telcos, VAS providers

Financials▪ Has initial funding from investors

Product / service description Brio’s universal switching platform is

a generic telecom computing platform for wire and wireless (GSM / CDMA) networks. It efficiently handles incoming calla and provides VAS solution for PSTN / IP in terms of – VRS ( Voice response system); CNAS (Call notification & alert system) ; CRBT (Caller Ring back tones). Etc.

Compelling reason Though Dialogic capture 72% of

market share, Brios solution has better features and is priced low.

Has been accepted by BSNL , on mobile, STC and bhas a committed line of business

Analysis of market and capitalization of existing pipeline shows a potential of high revenues (156 CR INR)in next three years

Page 11: Entrepreneurial Organization

Thank you

Page 12: Entrepreneurial Organization

Pain points

Idea generation

• Business model

• Product & market niche

• Management team

• Competitive advantage

• Raise investments

• Raise the brand. Produce & differentiate

Start up

• Capture market share. Launch differentiated products

• Repeat customers

• Channels & revenue streams

• Management team expansion

• Invent second stage of growth

Growth

• Reinvent differentiation & competitive strategies

• Organization empowerment

• Broaden coverage – region & offerings

• Matrix based Management transformation

Maturity

• Balanced business team

• Adaptability to change

• Revenues through innovations

Page 13: Entrepreneurial Organization

Industry expertiseSMEs – Auto components, pharmaceuticals, Garment

Exit strategies

Process innovation

Channel expansion

Product innovation

Price reduction

Product promotion

Idea

Inception

Growth

Maturity

Decline

• A vibrant and dynamic SME sector of Indian economy, with over 11 million units providing employment to over 27 million people, contributes to nearly 40 per cent of the total industrial production and over 34 per cent of the national exports.

• Today, SMEs in India are grappling with fast changes at the market place that is transiting from a controlled economy to a free market set-up.

• They being the important members within the supply chain are also exposed to the competitive pressures either directly from the market place or indirectly passed on from their higher ups in the chain.

• Considering the strategic role played by SMEs, it is essential to examine how can they improve their performance through Product promotions, pricing, channel expansions & innovation strategies

Page 14: Entrepreneurial Organization

Industry expertiseIT and IT Es

 • The past few years have produced a

confluence of event that have re shaped global economy & the technology boom in India.

• Core business relationships & models are dramatically changing from• Product centricity to customer

centricity• Mass production to mass

customization• Protracted value chain to speed

based competition• Material value to Knowledge value

• This has lead to new opportunities in IT development• Customer relationship management• Middleware and system integration

tools• Computer / telephone integration

(CTI)• Convergence in electronic messaging• Device proliferation & supporting

technologies

Angel, FFF Vcs, Sttrategic investors / M & AStrategic alliances

Gestation

Inception

Growth

Maturity

Early stage Later stage

1st stage

2st stage

3st stage

MezzanineIPO

Seed capital

Criteria• Projects with the highest potential

business returns• Convince shareholder of the practical

approach to achieving business benefits from IT investments

• Quantify numbers to intangible benefits

Page 15: Entrepreneurial Organization

Service offerings Idea generation (Gestation )

Growth

Idea conceptualizatio

n & Vision

Professional advisory services

Technology & product

Checking uniqueness for the technology idea in order to avoid possible problems in

future

Developing of effective intellectu

al property strategies

Turning your inventions into profit-making

assets

Marketing &

competition

Identification of the market niche

Development of a business concept

targeting this market niche

Financials

Good understanding of

the venture financing process

Pre-seed capital: business angels,

development funds

Investment opportunity

selection criteria of different types of

investors

Introducing project to prospective

investors

Team & manageme

nt

Understanding of the need to share

company ownership and

management with professionals

Enable companies that have good technological / service idea and good market potential with business expertise, investments and resources to

commercialize

Page 16: Entrepreneurial Organization

Service offeringsStart ups (Inception)

Growth

Company Vision

Company entity and ownership

Business incubation

Technology & product

IPR Protection - inventions into profit-making

assets

Establishing intellectual

property management (IPM) system

Functional & design product specifications

Marketing &

competition

Defining market needs,

discontinuities, and

opportunities

Packaging – functional product

specifications

Marketing and selling strategy

Competitor analysis

Financials

Venture financing process

Fund to activity mapping

Fund sourcing

Investment selection criteria

Team & manageme

nt

Development of the doer and

decision maker skills

Selection of the best management support system at

lowest cost

Enable companies that have no product revenues and little expense history; incomplete team , good business plan, and the beginnings of product development with organization

restructuring, marketing strategies, product positioning and funding

Page 17: Entrepreneurial Organization

Service offeringsGrowth (Broadening lines)

Growth

Redefining business model

to align to growth

Company alignment to

business goals

Redefine company

structure to growth

objectives

Building strategic alliances and

business partnerships

Technology & product

Identification of strategic market

intervention areas

Development of the business and

technology strategy to

achieve this goal

Top management participation

Development of strategic

technology development partnerships

Marketing &

competition

Customer value propositioning

Fighting fires

Market analysis & trends

Redefining market

development strategy

Financials

Operational efficiencies

Working capital to support

strategic growth plans

Team & manageme

nt

Formal professional management

structures

Re skilling & training

Customer focused

management orientation

Enable organizations to broadening production lines, focusing on the main product; management style transition from informal to formal

Page 18: Entrepreneurial Organization

Service offeringsMaturity (Continuous innovation)

Growth

Continuous improvement &

innovation

 Value based positioning

Best of breed institutionalization

Proof of concepts for change

Strategic partnerships

Technology & product

Continuous innovation systems

Intellectual property management system

Project portfolio and prioritization systems

Top management participation

Agile systems to market changes

Business linked research systems

Marketing &

competition

Market watch anticipating

needs

Maintaining and defending market

position

Developing new market niches:

seeking, expanding, global penetration

Reinventing market development

strategy

Marketing partnerships

Financials

Operational efficiencies

Shift from venture capital towards asset

based financing

Strategic research cost sharing with

alliances

Divesture of segments

Team & manageme

nt

Change & customer

relationship management

Business linked decentralized management

structures

 Enabling to utilize the company’s established status on the market for further economic gain through continuous competitive

innovations .

Page 19: Entrepreneurial Organization

Industry expertisePharmaceutical

Business plan • Investment proposal• Science &

technology• IP position• Business model &

market• Equity structure• Competitive

situation• Use of funds• Management

Investment focus fit • Investment focus• Competitive

advantage• Investment

rationale

Company profile• Science & expertise• Patent protection• Business model• Market need• Management team• Business sense• Strategy• Valuation & terms• Co-investorsz

Reality checking• Science• Patents• Infrastructure setup• Facilities• Employees• Management team• Work process

Financial model & evaluation• Size of financial

round• Investment

schedule• Milestone definition• Valuation

Term sheet• Liquidation

preferences• Dividends• Board

compensation

Formal due diligence• Science & IP opinion• Audited reports• Legal opinion

Investment documents• Translate term

sheet into legal documents

• Shareholders agreement

Provide consultation in fund / joint venture engagements