Why was the company categorized as High Innovation – Low Risk?
Entrepreneurs create goods and services and managers seek to establish a competitive advantage with the goods and services created. Entrepreneurs (people acting independently or as part of a corporate system to create new organizations or to instigate renewal or innovation within an existing company -Sharma and Chrisman, 1999) and Entrepreneurs identify and exploit opportunities that rivals have not observed or have underexploited. An appropriate set of resources is required to identify entrepreneurial opportunities with the greatest potential returns and to use a disciplined approach to exploit them (McGrath and MacMillan, 2000). The entrepreneurial and strategic actions linked to wealth creation are products of the firm’s resources.
Entrepreneurs make fast decisions and move forward knowing that at best 70% of their decisions are going to be right. Entrepreneurs are highly unlikely to be the scholars of their class. This doesn’t mean they are not smart. It’s just that they tend to focus on something that deeply fascinates them and then goes into hyperfocus mode. So don’t assume good academic grades or other indications of general intelligence are indicators of future entrepreneurial success. They’re not, focus and dedication make for successful entrepreneurs. They are quick to spot their mistakes and correct them. Good entrepreneurs can admit when their course of action was wrong and learn from it. Successful entrepreneurs must have extreme self-discipline because they have few resources, no reputation, and a very finite amount of time in which to succeed.
Here are the some examples which fall under one of the quadrants of the entrepreneurial strategic matrix:
High Innovation, Low Risk:
Quuppa was established in September 2012 by the team of engineers and scientists, who originally invented High Accuracy Indoor Positioning (HAIP) at Nokia Research Center. With the years of experience as the foundation, Quuppa team has commercialized its innovation and created a complete product platform – the Quuppa Intelligent Locating System™ – that is well suited for a wide range of industries and use-cases. Today Quuppa is a leading provider of Real-Time Locating Systems (RTLS), with partners and customers worldwide.
Why was the company categorized as High Innovation – Low Risk:
Innovation:
Quuppa has a revolutionary tracking system that uses different technology than competitors in the field. Their tracking system has superior accuracy, 3D-positioning, real-time data surveillance, and battery life for a year
Risk:
The company is still small and new and compared to that the opportunity for the product is remarkable. Product is also ready so future R&D would be product improvements most of the risks consist of successful sales and competitor innovations.
Low Innovation, High Risk:
Lapland Hotels Oy is a Design hotel -chain founded in 2008 that provides accommodation with designed rooms influenced by nature and the stories of Lapland around Finland mostly operated in Lapland area and in Ski-resorts but also found in the urban environment in Helsinki, Tampere, and Oulu. Lapland hotels exploit the surroundings of each hotel’s location and provide different services regarding the location yet remaining their own imprint in their services.
Why was the company categorized as Low Innovation – High Risk:
Innovation:
Regardless of the beautiful designs, the basic business idea of providing accommodation is not a unique, novel innovation. Providing services based on surroundings is an intelligent solution.
Risk:
Operating hotels require substantial initial capital and high investments. Decade(s) of commitment and trust for own business idea with an understanding of very low or no profit during the first years in operation. High competition on the industry but it is not anything unseen before.
References:
Sharma, P. and Chrisman, J. J. 1999. Toward a reconciliation of the
definitional issues in the field of corporate entrepreneurship.
Entrepreneurship: Theory and Practice, (23) (3): 11 27.
McGrath, R. G., and MacMillan, I. 2000. The entrepreneurial mindset. Boston: Harvard Business School Press.
https://www.laplandhotels.com/EN/
