Does Entrepreneurship Within a Corporation Really Exist?
Not too long ago, a business professor friend invited me to address a luncheon of university students enrolled in his class on entrepreneurship. I was honored to have been asked, but not sure I was the right person for the task.
“Your students would be better served by a high-tech entrepreneur half my age,” I told him.
“They’ve already heard from entrepreneurs,” he said. “I want you for balance. My class needs a perspective on entrepreneurship within the corporation — if that really exists.”
I went in assuming his students believed corporate management and entrepreneurship were principles of contradiction — the only contrarians would be members of the flat earth society. I figured it might be best to tackle the assumption head on by addressing the culture of corporate giants, particularly the “old economy” companies responsible for creating the preconception.
At one time it looked like “clout” and “scale” would prevail as the most powerful forces in business. Corporate giants dominated markets and gobbled up competitors; along the way they failed to cope with rapid change. Their competitive edge eroded because the people at the top, who considered themselves the corporate brain, failed to adapt or innovate. The brain viewed the masses below it as the muscle. The muscle never got to see the big picture. Bureaucracy and stagnation set in. The brain “cut the fat” to shore up profits. But strategic health continued its free-fall.
Eventually, the giants embarked on reinventing themselves by simplifying decision-making and acting with haste. Innovation and entrepreneurship made a comeback, albeit in measured bites. In the meantime, perennial innovators the likes of Apple, FedEx and Amazon extended their leadership over old-guard competitors. Large or small, we have bureaucratic companies, entrepreneurial ones and plenty in between. Innovators drive the marketplace, followers are the passengers and those who refuse to abolish redundancy are roadkill.
My friend’s students saw themselves as entrepreneurial thinkers, yet at graduation, most of them will begin their careers in a corporation. I told them not to worry; corporate life isn’t a death sentence.
“Your job,” I said, “is to choose an organization with a buoyant culture and a leadership team that’s not afraid of change. The change-makers are small- to medium-size enterprises that either lead niche categories or are hell-bent on knocking the big guy from the top rung of a mass market. In those companies you’ll find entrepreneurial thinking.”
When it comes to job hunting, several avenues are open to grads with an entrepreneurial drive. To assist in the selection process, I suggest seven basic search guidelines:
- Search for small players or divisions of large players in industries you like.
- Lean towards industries on strong growth curves.
- Check out the target company’s mission/vision statement. Does it inspire? If it doesn’t, move on.
- Research the reputation and the modus operandi of the CEO.
- Beware the entrepreneur. Several, such as Trump, still operate by the brain and muscle ethic.
- Explore corporations that value diversity.
- Don’t resist starting in the sales department. No one is closer to the customer than the front-line sales representative.
China's Push Toward Excellence Delivers a Global Robotics Investment Opportunity
Written by: Jeremie Capron
China is on a mission to change its reputation from a manufacturer of cheap, mass-produced goods to a world leader in high quality manufacturing. If that surprises you, you’re not the only one.
For decades, China has been synonymous with the word cheap. But times are changing, and much of that change is reliant on the adoption of robotics, automation, and artificial intelligence, or RAAI (pronounced “ray”). For investors, this shift is driving a major opportunity to capture growth and returns rooted in China’s rapidly increasing demand for RAAI technologies.
You may have heard of ‘Made in China 2025,’ the strategy announced in 2015 by the central government aimed at remaking its industrial sector into a global leader in high-technology products and advanced manufacturing techniques. Unlike some public relations announcements, this one is much more than just a marketing tagline. Heavily subsidized by the Chinese government, the program is focused on generating major investments in automated manufacturing processes, also referred to as Industry 4.0 technologies, in an effort to drive a massive transformation across every sector of manufacturing. The program aims to overhaul the infrastructure of China’s manufacturing industry by not only driving down costs, but also—and perhaps most importantly—by improving the quality of everything it manufactures, from textiles to automobiles to electronic components.
Already, China has become what is arguably the most exciting robotics market in the world. The numbers speak for themselves. In 2016 alone, more than 87,000 robots were sold in the country, representing a year-over-year increase of 27%, according to the International Federation of Robotics. Last month’s World Robot Conference 2017 in Beijing brought together nearly 300 artificial intelligence (AI) specialists and representatives of over 150 robotics enterprises, making it one of the world’s largest robotics-focused conference in the world to date. That’s quite a transition for a country that wasn’t even on the map in the area of robotics only a decade ago.
As impressive as that may be, what’s even more exciting for anyone with an eye on the robotics industry is the fact that this growth represents only a tiny fraction of the potential for robotics penetration across China’s manufacturing facilities—and for investors in the companies that are delivering or are poised to deliver on the promise of RAAI-driven manufacturing advancements.
Despite its commitment to leverage the power of robotics, automation and AI to meet its aggressive ‘Made in China 2025’ goals, at the moment China has only 1 robot in place for every 250 manufacturing workers. Compare that to countries like Germany and Japan, where manufacturers utilize an average of one robot for every 30 human workers. Even if China were simply trying to catch up to other countries’ use of robotics, those numbers would signal immense near-term growth. But China is on a mission to do much more than achieve the status quo. The result? According to a recent report by the International Federation of Robotics (IFR), in 2019 as much as 40% of the worldwide market volume of industrial robots could be sold in China alone.
To understand how the country can support such grand growth, just take a look at where and why robotics is being applied today. While the automotive sector has historically been the largest buyer of robots, China’s strategy reaches far and wide to include a wide variety of future-oriented manufacturing processes and industries.
Electronics is a key example. In fact, the electrical and electronics industry surpassed the automotive industry as the top buyer of robotics in 2016, with sales up 75% to almost 30,000 units. Assemblers such as Foxconn rely on thousands of workers to assemble today’s new iPhones. Until recently, the assembly of these highly delicate components required a level of human dexterity that robots simply could not match, as well as human vision to help ensure accuracy and quality. But recent advancements in robotics are changing all that. Industrial robots already have the ability to handle many of the miniature components in today’s smart phones. Very soon, these robots are expected to have the skills to bolster the human workforce, significantly increasing manufacturing capacity. Newer, more dexterous industrial robots are expected to significantly reduce human error during the assembly process of even the most fragile components, including the recently announced OLED (organic light-emitting diode) screens that Samsung and Apple introduced on their latest mobile devices including the iPhone X. Advancements in computer vision are transforming how critical quality checks are performed on these and many other electronic devices. All of these innovations are coming together at just the right time for a country that is striving to create the world’s most advanced manufacturing climate.
Clearly, China’s trajectory in the area of RAAI is in hyper drive. For investors who are seeking a tool to leverage this opportunity in an intelligent and perhaps unexpected way, the ROBO Global Robotics & Automation Index may help. The ROBO Index already offers a vast exposure to China’s potential growth due to the depth and breadth of the robotics and automation supply chain. As China continues to improve its manufacturing processes to meet its 2025 initiative, every supplier across China’s far-reaching supply chains will benefit. Wherever they are located, suppliers of RAAI-related components—reduction gears, sensors, linear motion systems, controllers, and so much more—are bracing for spikes in demand as China pushes to turn its dream into a reality.
Today, around 13% of the revenues generated by the ROBO Global Index members are driven by China’s investments in robotics and automation. Tomorrow? It’s hard to say. But one thing is for certain: China’s commitment to improving the quality and cost-efficiency of its manufacturing facilities is showing no signs of slowing down—and its reliance on robotics, automation, and artificial intelligence is vital to its success.
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