Reference no: EM133204041

You have been appointed as the Manager for Innovation and Intrapreneurship at Bustech, a developer of business software providing a wide range of business management software for small to medium sized businesses. The company has been in business for 10 years, and the Board of Directors (the Board, one of which is the founder of the organisation) were comfortable with the position of the company in the market. In its 10 years of operation Bustech has developed a market dominant position, having achieved 30% of the market share in the Australian domestic market.

Although the Board and management were aware of smaller companies which have entered the market on the back of "low end developments in business management software" which were essentially cloud based and according to the Directors was not a significant market for Bustech as the margins were too low and not the main market for them or for Bustech.

The CEO (Chief Executive Officer) encouraged the Board of Directors to establish a new position of Manager Innovation and Intrapreneurship to manage the Research and Development Division of the organisation which previously reported to the CEO. The CEO had been aware of the changes at other organisations in the industry and decided that it was time that Bustech would "move with the times". One of your first responsibilities is to change the name of the R&D department to that of Innovation and Intrapreneur department. The CEO believed that this would represent the department and what it does.

On your first review of the department, you enquire of key staff regarding the innovative direction of the organisation, the response from many of the department staff is that 'we do what we are told to do by the CEO.' In many cases developments of new products is restricted to ensuring that the products offered are comparable to the other competitor in the market (Huge IT Ltd), which has approximately the same market share as Bustech.

In your office you notice a number of files which are dated six months earlier, you asked your assistant "where did the files come from", his response is "the files are from the CEO". On opening the files, you read a number of innovative suggestions from members of the staff none of which have been actioned or even replied to the sender.

Based on your knowledge gained from your entrepreneurial MBA you decide to discuss innovation and intrapreneurship with your peers, you call a meeting with the managers of the departments to discuss innovation in their respective departments and the organisation, you are met with a degree of cynicism and reluctance to be involved in any major innovation projects. One colleague doesn't even understand what the term intrapreneurship means, nor do they understand the process to recommend any suggestions. Many indicated that innovation was the sole responsibility of the CEO and the R&D department.

You understand from your discussion with the group that the process of obtaining funds for innovation is difficult with the approval process for major projects in excess of $5k being vested in the board of Directors. 

Question:

You determine that the leadership and middle management group need to take responsibility for developing a CE and innovation focus at Bustech. Prepare a note to these two groups to advise them of their respective roles in developing corporate entrepreneurship in the organisation.