*CREATING ENTREPRENEURIAL ENVIRONMENT IN UNIKL
MIAT THROUGH INTRAPRENEURSHIP PROGRAM.
Ahmad Maulan Bardai - [email protected]
Mulia bin Minhat – [email protected]
University Kuala Lumpur Malaysian Institute of Aviation Technology
(UniKL MIAT).
Lot 2891, Jln Jenderam Hulu, Jenderam Hulu, Dengkil 43800 Selangor DE
Tel: (603) 8768 8487
Fax: (603) 8768 8485
Abstract
Univesiti Kuala Lumpur (UniKL) has set its long term vision “to be a Premier
Entrepreneurial Technical” university. Malaysian Institute of Aviation Technology
(MIAT) being one of the campuses within the university spearheaded the change through
various initiatives, one of which is its Intrapreneurs Development Program.As a higher
learning institution, UniKL MIAT is faced with faculty and staff that are very much
committed to teaching and serving its students population. Additionally research has been
the only non teaching related activities, performed whenever is needed, whether to
support their own or their students’ academic studies.To draw their participation in other
activities especially entrepreneurship, requires exceptional reward, recognition and
exemption schemes.Many establishments would organise campaigns and training
sessions to try entice their staff participations even after offering exceptional rewards,
recognitions and exemption schemes. AT&T focused on providing skill training
especially in the area of business planning and project management. Harvard Business
School emphasises on curriculum on a total concept. A study in Massachusetts, USA on
new entrepreneurship program identified entrepreneurial training in the commercial
aspect of every individual’s technical areas as the key success factor.Many commercial
establishments uses product planning committee, new product department, product
manager and venture teams to generate new ideas and products from their employees.At
UniKL MIAT, an implementation model was developed based on some of the findings
from research conducted by Sussex University. This research, entitled “Scientific
Activity Prediction from Patterns with Herristic Origin” (SAPPHO) identified the critical
success factors in an Intrapreneurship Programs.Selectively some of these factors were
modified and integrated into the university intrapreneurship program philosophy, which
currently drive the seemingly working program.
Keywords: entrepreneurial technical university, intrapreneurs, intrapreneurship,
Aviation Technology.
Introduction
This paper was prepared based on a project paper implemented in Univesiti Kuala
Lumpur Malaysian Institute of Aviation Technology (UniKL MIAT).
The project called Intrapreneurship Program for UniKL MIAT Employee was approved
for implementation on 21st March 2007.
The project was initiated as an attempt to address issues faced by the institute in view of
the new direction of the university and the economic environment of its inception. The
university introduced the entrepreneurial direction while targeting to achieve self
sustenance in term of financial matters.
The questions attempted to be addressed were;
i.
How can UniKL position it self to be a premier technical university in each of the
industry identified? In the case of UniKL MIAT it is the aviation industry.
ii.
How will UniKL attracts the right blend of faculty members and subsequently retain
them when they are well exposed to the industry recruitment?
iii. How should UniKL increase its faculty participation in extra non teaching activities
with already high teaching loads?
iv.
How can these extra non teaching activities be converted into revenue generation
exercise?
v.
How can all these contribute to the learning activities of the students’ population of
UniKL MIAT?
vi.
How these initiatives can raise UniKL MIAT roles into a truly premier
entrepreneurial technical university in the country aviation industry?
In searching for the answers, previous literature related to technical university,
entrepreneurship, intrapreneurship, product development, innovation and product
marketing were referred to. These secondary researches revealed various study and
observations that has been done on the subject.
These management practices developed and documented in the earlier researches as
above, are made into good basis of understanding to entrepreneurs’ development and
management discipline. (1)
Based on these models, relating it to the author’s industry observations and observations
on the population of staff and faculty in UniKL MIAT, a modified model was developed.
Based on this proposition the project was implemented.
Observation on the impact of the project implementation indicates positive response from
among the staff and faculty.
Intrapreneurship in UniKL MIAT
1.
The Background
Universiti Kuala Lumpur Malaysian Institute of Aviation Technology (UniKL MIAT)
vision is to be a premier entrepreneurial technical university. Relating to its position in
the aviation industry, the institute must play the role of being the resources centre to
support the industry. Apart from playing the role of human capital development, UniKL
MIAT must also cater for the industry need for consultancy and R&D support.
Additionally the institute must be a catalyst to the growth of the industry in terms of
small and medium enterprise development as well its technology contents
development.(2)(3)
With these tasks, the university is faced with the challenge of maintaining right blend of
faculty resources comprising of educators, researchers and industry specialist. This also
means having the right composition of administrative and management teams. This is to
support effective implementation of the required activities in collaboration with the
industry.
To be able to attract these right resources and subsequently retain them requires
innovativeness in all aspects of management. The institute must allow a mix of lecturing
and practicing to discourage them from leaving for the industry. Additionally they must
be well rewarded at par if not better than what the industry are offering. Finally they must
be allowed to manage their time and teaching loading to enable their other activities such
as research, practicing their profession and contributing to the body of knowledge in
doing so.
The institute must therefore find ways to be financially strong to meet these challenges.
Their administration must be innovative in getting the optimum contribution by the
faculty in term of teaching, innovating and researching while encouraging progression in
their academic qualification. At the same time the reward system must be competitive not
only among the higher learning institution but also within the industry locally as well as
globally.
2.
The Issues
Managing human resources in the high learning institution demanded a very different
approach in view of limited career path especially amongst the academic faculty who
possesses high academic qualification coupled with high level of intelligence.
To ensure success in its Endeavour, high learning institution like UniKL must be good at
retaining their academic faculty while at the same time being able to attract more capable
and qualified Master and PhD degree holders.
A highly motivating incentive system must be developed to achieve the above mentioned
goals.
Being a technical university, UniKL academic faculty comprises of expertise that is
sought after by specific industry for their field of expertise.
Being entrepreneurial means creating a more conducive climate to encourage
development of entrepreneurs which to some extent perceived to be an opportunity open
to these academics faculty as well. To these groups who are entrepreneurial risk takers, it
will be taken as an opportunity to progress in their career path, through being an
entrepreneur and business person.
A premier technical university will mean playing key roles to support the specific
industry for the said technical field. The university expertise should be the reference to
which the industry refers to for advice. Its facilities should be a center for the industry to
seek assistance. These new additional role need to be developed. Someone needs to
develop these capabilities and organize the resources for it. This includes scheduling
these resources in between their core responsibilities i.e. lecturing.
In summary, the university needs to address its academic staff needs for career pathing,
income growth, innovativeness and engagement to the required activities. The right
approach will assure retention of existing staff while attracting new staff.
This paper is proposing an approach towards developing a procedures and guidelines in
allowing intrapreneurship amongst UniKL-MIAT academic staff.
3.
Literature Review
The issues mentioned above demanded various initiatives to achieve positive results.
One of the crucial issues is its ability to motivate and encourage high level of
participation and contribution by the academic staff of the university. This is especially
true as many of the activities and initiatives to be introduced are not the usual activities of
traditional universities. (4)
Therefore, a specific program need to be introduced to vigorously spur changes and
increased these staff participation and contribution towards successfully implementing
the required initiatives.
The program will also address policy issues in creating conducive climate for such
activities to happen. One of such program to be developed is the Intrapreneurship
program.
Intrapreneurship has been identified as one of the way to supplement the traditional
management model for developing new products, services and markets in its attempt to
create opportunities for growth. (5)
In order to understand this new management model in relation to its purpose of offering
new growth to mature business especially, the traditional theories of innovation are best
revisited.
New product development process constitutes of six main steps as shown in the following
diagram. (6)
New Product/ Innovation Process (Generic).
Start
Generate
New Ideas/
Innovation.
Idea/ Concept
Stage
Screening/
Analyse.
Develop
Continue?
Prototype
YES
NO
Continue?
YES
Test
Market
Limited
Production.
NO
End
Continue?
YES
NO
Market.
Full Production
The traditional approach focused on the organizing for new product or innovation. Prior
to discussing the various organizations that has been proven effective, it is important to
understand that product Innovation should be the responsibility of top management. This
justified by its long term value to the organization survival. It has been observed in many
organizations, top executive involvement in the new product development/ program is
vital determinant of its success. (7)
3.1 Key Success Factors in the Intrapreneurs Development Program
Much have been written about men of science, technology and commerce who have
invented how via their own individual efforts, commercially exploited new products,
production techniques and processes. Private individuals have continued to make
significant contribution to economic development/ growth via invention and the
formation of new businesses.
Nevertheless as has been observed in the developed as well as developing economy, the
main source of commercialise able new ideas is still the industrial firm.
A study by Rothwell, R and Townsend, J in “The communication Problem of Small
Firms”, R&D management; reported that out of 1,667 important post war innovation in
the UK covering a wide range of industries, 60.9% originated in industrial firm. Only
1.25% derived from private individuals. (8)
The increasing degree of concentration in industry, particularly in the science intensive
industries; have a high level of bureaucracy and red tape that abate individual
commitment and entrepreneurial behaviour.
Ideas and innovation from outside of industries faced many barriers towards
commercialization.
Creating environment conducive to intrapreneurship and individual commitment to
innovation become the key issues to reduce the above mentioned barriers.
In the USA, a study by Globe, S; G.W. Levy and Swartze, C.M, identified that technical
entrepreneurs or also called product champion is a major factors towards success. (9)
“Technical entrepreneurs and product champions are also found to be the two key success
factors in a study conducted by Langrish Et Al, in the UK. The findings stated these two
key success factors as outstanding person in a position of authority who makes a special
contribution and “Mechanical Genius” who possesses some unique form of knowledge
that would otherwise not have been at the disposal of the firm. (10)
A research project conducted by Sussex University- Scientific Activity Prediction from
Patterns with Herristic Origins (SAPPHO) identified the key success functions critical in
the success of intrapreneurship programs. (11) These are;
•
•
•
•
Technical Innovator.
Business Innovator.
Chief Executive.
Product Champion.
Nevertheless the one factor that differentiates between success and failure is the business
innovator with authority.
Pinchot, G III, in his book Intrapreneuring, Harper & Row, New York 1985 pointed the
most common barriers to change and entrepreneurship is the lack of funding. (12) In this
area is where intrapreneurial skills shine. Ability to apply lateral thinking which
circumvented a large organisation’s cumbersome decision making process is the key to
success. Off balance sheet financing, increasing your resources by employing someone
else’s capital is an example quoted by Pinchot in his book.
Pinchot pointed out the ten commandments of intrapreneurship as;
1
2
3
4
5
6
Come to work each day willing to be fired.
Circumvent any orders aimed at stopping your dream.
Do any job needed to make your project work, regardless of your job description.
Find people to help you.
Follow your intuition about the people you choose, and work only with the best.
Work underground as long as you can. Publicity triggers the corporate immune
system.
7 Never bet on a race unless you are running in it.
8 Remember, it is easier to ask for forgiveness than for permission.
9 Be true to your goals, but be realistic about the ways to achieve them.
10 Honour your sponsor.
3.2 Creating the Right Climate
Gifford Pinchot III defines intrapreneurs or internal entrepreneurs as “Dreamers who do”.
(13)
Therefore intrapreneurs are goal oriented and self motivated that are responding to
corporate rewards and recognition. They may be cynical to corporate system but
optimistic that they have the ability to outwit and manipulate it.
It is therefore logical whilst they are taking risks; they also need a mentor or protector
from within their company who will support them.
As a mentor, they must have the ability to solve most of the basic barriers to
intrapreneuring. These are Lack of Resources, Threat of withdrawals, or Lack of Funding
at every setback as well as political attack. These special skills include;
•
•
•
•
•
Being colleague not a boss.
Judging Intrapreneurs on results rather than methods.
Giving clear and frequent feedback.
Expecting mistakes – no recrimination.
Strategic vision as to where the company is going.
Mentor should also be in a position of authority within the company so that they are able
to protect their entrepreneurs.
3.3 Rewards and Recognitions
Majority of MBA program students relates on organization that rewarded innovative
ability meant promotion and a higher salary. (14)
Pinchot suggested “Let avoid promoting intrapreneurs to their level of incompetence. Let
them go on starting business for the corporation. Let us reward them with substantial
stock options and business for each start up. (15)
3.4 Training the Intrapreneurs
A study conducted by a group of International Management Centre, MBA graduates
conclude that the business schools traditional subjects, finance, marketing, organization
structures and team building need to be complimented with such subject as Leadership,
Determination, Vision and Innovation, to enhance the qualities of both the intrapreneurs
and the entrepreneurs. (16)
Lavitt, H, in the California Management Review, 1988, wrote “It has become rather
obvious that there is much more to modern management than what we are teaching in our
business schools. Some significant and painful changes seem in order”. (17) Business need
to adjust their training to emphasis the importance of intrapreneurship and
entrepreneurship, innovation, vision and leadership to be inline with what companies are
recognizing.
AT&T recognized the needs for skills in the area of negotiations, financial/ quantitative
analysis particularly that needed to write business cases and project management. Project
management skills are critical especially for orientation of group and activities
monitoring. Also enhance the ability to allocate resources. (18)
The Harvard Business School which pioneered the curriculum development in the field of
entrepreneurship opted on the thrust being that it is a total concept. The teaching
embraces a range of method including formal courses, field studies, and research and
extension services. (19)
American experience saw providing entrepreneurial training to technical areas in their
commercial aspects of their field. ( Steven H.H, Harvard’s Experience with a New
Entrepreneurship Program, The Art & Science of Entrepreneurship, Ballinger Publishing
Co, Massachusetts 1986). (20)
Among the areas covered include Strategic Management, Small Business, Lateral
Thinking, Operational Research, Venture Finance, Feasibility Analysis, Contingency
Planning and Chaos Theory.
3.5 Organising for Product Innovation
Product innovation or development has been critical towards the growth of many
companies. These growth opportunities through new products/ new markets need to be
encouraged.
The importance of these activities dictates the need for top management commitment.
This is a vital determinant towards successful management of innovation, new product
and new markets introduction. (21)
As such success is crucial towards the future survival of any companies; product
innovation should be the responsibility of the top management.
Traditionally these are managed by the following methods;
a.
Product Planning Committee.
This committee, members comprising of top management of the company, will provide
guidelines for the new product planning and development activities. After it successfully
passed through the introductory stages of development, the marketing responsibility will
be handed over to another unit.
This approach provides a better chance of wining approval for the project. However
usually decision making process will be quite slow.
b.
New Product Department.
This approach is being used by General Electrics and NCR USA.
This is a department which is permanent and its full time activities are developing new
products.
This department is staffed by few personnel reporting direct to the president. It is
responsible for setting up of new product program and guiding new products through the
development stages.
Full scale commercialization marketing will be done by the operating department.
c.
Product Manager.
In corporation like Procter & Gamble and National Biscuits Co, a product manager is
designated and he will be responsible for product planning.
This manager reports to the top marketing executive.
This product manager is also given the authority to help the various stages leading to new
products commercial marketing.
d.
Venture Teams.(22)
Another common approach is the formation of venture teams to manage product
innovation from idea stages to full scale marketing.
This is a cross functional team and operates in an entrepreneurial environment in the form
of a separate small business unit.
Upon its completion, products being turnover to another groups such as existing unit,
new division or new subsidiary company. This group will be disbanded at the completion
of the product development stage.
The members of the disbanded team may form the nucleus to the new company that is
established for the product. This approach will avoid bureaucratic foul up to hinder new
product development.
3.6 Why Product Fails
Research indicated many new products fail to be marketed due to the following
problems; (23)
1)
2)
3)
4)
5)
6)
7)
Inadequate marketing analysis.
Product deficiencies.
Lack of effective marketing efforts.
Higher cost than anticipated.
Poor competitive strength or reaction.
Poor timing of introduction.
Technical or production problem.
It is concluded that product failures are due to factors within the control of the company.
75% or more are due to marketing related shortcoming.
Manufacturer in response to the above findings proposed the following as the criteria for
the introduction of new product; (24)
1)
2)
3)
4)
5)
6)
7)
8)
There should be an adequate market demand.
Product must be compatible with current environment and social standard.
The product should fit into the company present marketing structure.
It should fit with existing production facilities, manpower and management
capabilities.
It should fit from the financial perspective.
There must be no legal objection.
Management in the company must have time and the ability to deals with this new
product.
The product should be in keeping with the company’s image and objectives.
3.7 How to Ensure Success
The research also found that organizational changes need to be carried out to
strengthened new product planning. (25)
Marketing research in term of evaluating market needs and prospect must be improvised.
And lastly screening and evaluation of new ideas end products need to be improved.
The concluded key success factors for product introductions are;
•
•
•
Product Advantage.
Marketing Advantage.
Creative Advertising Advantage.
4.
Framework of Proposition
From the above observations, it is therefore concluded that to be effective and to add
value to the intrapreneurship program, UniKL-MIAT must adopt the following approach;
The program must capitalize the existing facilities and expertise in screening new ideas.
By doing so, the product innovativeness will be able to effectively address the goals of;
i.
ii.
iii.
iv.
v.
vi.
Introducing new product to the existing market.
Introducing new product to new market.
Introducing existing product to new market.
By doing so there will be no issue of unfamiliarity of products and market. The
product will also be very competitive as no new overhead cost need to be introduced.
Training towards providing the staff masses with supportive skills such as
Leadership, Vision, Innovation, Entrepreneurship, Quantitative Analysis, Lateral
Thinking, and Project Management etc, as identified by the said research findings.
The organization must structure it self to induce the right climate to encourage
intrapreneurship as discussed earlier in the findings.
These conclusions are summarized in the following framework;
The Program Framework.
EXISTING FACILITIES
EXPERTISE in
FACULTY MEMBERS
New Product
New Market
Current Market
New Business
Unit
OUTCOME
STRUCTURE
SUPPORTIVE
CLIMATE
SKILLS
Current Product
New Market
New
Revenue
Source
Goal:
• Retention.
• Attraction.
• Self Sufficiency
The expected benefits to this program will be UniKL-MIAT ability to be a premier
university through its;
•
•
•
•
Ability to retain faculty members.
Attract the best faculty members.
Self sufficiency of the university financial state.
Provide entrepreneurship and career path to its employee.
The program philosophy is depicted in the following diagram.
The Program Philosophy.
pa
Ca
c it
y
i
Cr
ea
tiv
e
Expertise
i I i
Structure
Skills
Dr
iv
n
sio
Vi
e
i
Climate
I = INTRAPRENEURS
i = Innovation
Relating to the experienced during the thirty years in the industry and recent observation
of the scenario in UniKL MIAT, the above philosophical model was developed.
This philosophy revolves around existing expertise, supportive organization structure,
climates and possession of the necessary skills. The outcome expected will be creating
more innovation by the employees through the creation of capacity, drive, vision and
creativeness among the physical and human capital resources of the university. This
philosophy emphasized further support and assistance on organizing the innovation until
the stage where Intrapreneurs are produced.
This program philosophy if followed will ensure a stronger organization through
intrapreneurship incubation within the scope of its products and market.
Success will be assured as the organization will grow through the generation of new
innovation.
Sustenance will be achieved as leadership will not be a scarcity. Career pathing and
rewards when addressed effectively will ensure fresh involvement of staff into the
innovation process.
5.
The Implementation
In the implementation of this program, UniKL MIAT management approaches were
closely guided by the program framework.
Existing facilities were made to be the assets driving capacity and product lines by
allowing expertise in the equipments to innovate and create business activities.
Aggressive efforts were made by the institute to bring in industry expertise with years of
industry experience to play the role of Technical Innovator.
To create a supportive structure, the formation of the Program Management Office is
crucial. This team of industry expertise, entrepreneur’s development expertise and
academic researchers play the role of Business Innovators. Proposals from staff were
innovated into a business proposition that will work within the existing teaching loading,
rewards system and management of liabilities to the organisation in relations to services
delivered to its customers.
Supportive climates were created through a very flexible policies, guidelines and
procedures to ease project implementation.
Skills are acquired by the staff through internal talk, workshop and coaching clinics
organised regularly.
But most critical of all is the organisation support from the Entrepreneurial Champion
played by the Head of Campus. His willingness to take responsibility of the risk brought
about by these activities created the one major needed support to the program.
6.
Conclusion
In the whole of 2007, the average earning for non academic activities was only at RM
200 a year.
For this year, 2008 within the first quarter of the year, the figure has grown to RM 2,000
per employee.
The institute is already working on projects lined up through out the year. These are
expected to bring the average figures higher to RM 8,000 per employee per year.
These new activities will encompasses of research projects, short courses and consultancy
services.
The average hours spent by each of the faculty members in addition to teaching are being
closely observed. These are expected to grow towards a respectable figure of 20%, even
though still far below the targeted 15% to 45%, depending on their academic
responsibilities.
7. References
Drucker, Peter Ferdinand, Innovation and Entrepreneurship, Harper & Row, New York,
1985.
Fuller, S., What makes universities unique; updating the ideal for an entrepreneurial age,
Higher Education Management & Policy; 2006.
Senges, Maximilian., Knowledge Entrepreneurship in Universities, PhD Thesis:
Universitat Oberta De Catalinya, Barcelona, 2007.
Delanti, G., Challenging Knowledge: The University in the Knowledge Society,
Buckinghan (England), Open University Press, 2001.
Rothwell, R. and Townsend, J., The Communication Problem of Small Firms, R&D
Management, Vol. 3, 1973.
Stanton, J. William, Fundamentals of Marketing, Mc Graw Hill, 1987.
Ibid.
Rothwell, R. and Townsend, J., The Communication Problem of Small Firms, R&D
Management Vol. 3 No. 3, 1973.
Globe, S., Levy, G., Wand Schwartz, C. M., Key features and events in the innovation
process, Research Management, July 1973.
Langrish, J., et al, Wealth from knowledge, Mc Millan, 1972.
Rothwell, R. and Townsend, J., The Communication Problem of Small Firms, R&D
Management Vol. 3 No. 3, 1973.
Pinchot, GIII., Intrapreneuring, Harper and Row, New York, 1985.
Ibid.
Oliver, Carol., Sandra, Pass., Taylor, Jayne. And Taylor, Pam., Intrapreneurship and
Entrepreneurship amongst MBA Graduate, Management Decision, Vol. 29, MCB Press,
1991.
Pinchot, GIII., Intrapreneuring, Harper and Row, New York, 1985.
Oliver, Carol., Sandra, Pass., Taylor, Jayne. And Taylor, Pam., Intrapreneurship and
Entrepreneurship amongst MBA Graduate, Management Decision, Vol. 29, MCB Press,
1991.
Lavitt, H., California Management Review, 1988.
Shatzen, Linda. And Schwatz, Linda, AT&T, New Jersey, USA.
Steven, H. H., Harvard’s Experience with New Entrepreneurship Program, The Art &
Science of Entrepreneurship, Balinger Publishing Co, Massachusetts, 1986.
Ibid.
Stanton, J. William, Fundamentals of Marketing, Mc Graw Hill, 1987.
Hill, M. Richard and Hlavacek, D. James, The Venture Team: A new concept in
marketing organisation, Journal of marketing, 1972.
Hopkins, S. David and Bailey, L. Earl, New Product Pressures, Conference Bond Record,
1971.
Stanton, J. William, Fundamentals of Marketing, Mc Graw Hill, 1987.
Hopkins, S. David and Bailey, L. Earl, New Product Pressures, Conference Bond Record,
1971.