«Published Annually Vol. 6, No. 1 ISBN 978-0-979-7593-3-8 CONFERENCE PROCEEDINGS Sawyer School of Business, Suffolk University, Boston, Massachusetts ...»
Education-Enterprise Model for University Based Incubation System
The Education Enterprise model (EE) model (Saurabh and Biswas et. al., 2010; Saurabh and Biswas et. al., 2009a; Biswas 2008) is a collaborative framework amongst academia, government and the private industry focused towards creating enterprises that are engaged in social entrepreneurship. The EE Model (figure 3) is based on the premise that industry creation can be an instrument of positive change through educational development. Social entrepreneurship is seen as an integral part of this approach where the empowerment of society takes precedence over all other factors of growth and development.
University-Industry collaboration couples the finding and diffusion of knowledge through entrepreneurship (Pandey & Kuznetsov et al., 2004). The positioning of the government with respect to the EE relationships is strategic as seen in figure 3. It is neither too close to influence the dynamics of the enterprise nor is too disconnected from the regulatory and infrastructural support of the EE dynamics (Saurabh & Biswas et al., 2010). The significance of EE model is the knowledge based regional development to recognize the opportunities of that region and fulfill the social requirements through enterprise creation backed by universities.
The EE model fosters the collaborative research output for startups. This collaboration is prevalent from last few decades and has gradually become more accepted as an element of the economic, social and environmental contribution to society (Dees, 1998; Drayton, 2002; Alvord et al., 2004; Mair & Marti, 2006; Peredo & McLean 2006; Zahra et al., 2009). Knowledge emerging from laboratories, class rooms and other sources of innovation inside universities needs greater funding structure for commercialization. Incubation and Entrepreneurship programme at HEIs like IIT Kharagpur and IIM Ahmedabad, India plays a key role to support the technology based start-ups companies within its premises of social output generation. These funding structures are dependent on the government schemes from seed grants for alumni, subsidized incubation spaces for good start-ups to angel funding for innovations.
Education plays a leading role in idea generation and innovation (Gibbsons et al., 1994; Nowotony et al., 2001; Nilsson, 2006). It has now transitioned from ‘director of learning’ to ‘facilitator of learning’ and develops the students’ social abilities (McCaffery, 2010). So, education interactions can work in a synchronous manner to achieve valued deliverables of social entrepreneurship through the E-E model. The growth of successful knowledge-based centers or HEIs is dependent mostly on three interrelated processes that create and transfer tacit knowledge (Chen & Choi, 2004, Scheel, 2002).
Adapting EE Model Concept for Co- incubation
Close collaborative relationship between the industry and academia as well as the local people lets the level playing ground for new product trials. The enterprise allocates resources based on market intelligence for technology and business infrastructure around universities. The industry brings trans-disciplinary solutions that provide access to wide range of expertise which ordinarily is not available to the academic institutions (Kruss, 2007) alone.
“Business incubation” is put forth as a preferred community-wide strategy to maximize prospects for economic betterment Conference papers © Knowledge Globalization Institute, Pune, India, 2012 in Indian country. The distribution incubator might also demand certain advantages from the earlier incubator. Consequently we need to look into the system of co-incubation which might originate and work providing them a proper architecture. It goes beyond a physical location to include a community approach and involve stakeholders to build the infrastructure, capital investment, education, government support, and cultural values to promote flourishing startup businesses/entrepreneurs. Only this collective effort provides the ‘incubation’ necessary to give existence and grow startup businesses/entrepreneurs; fostering healthier, dynamic communities for Indian society.
Small enterprises constitute the single largest job creation segment of our economy, although it is generally recognized that only a few make it through their first years (Cupl, 1990; Sherman and Chappell, 1998). Those who make up somehow follow the mentoring process of the incubation system i.e., knowledge from education and industry. The spreading of the application of EE Model to take advantage from the best of other incubators would lead to co-incubation.
Effective Cases using EE Model concept for Co-incubation
IIT Kharagpur has applied the EE Model for sustainable empowerment of the society through education and other EEEH delivery systems. The following cases from IIT Kharagpur depict the overlapped section of education and industry in EE Model. These enterprises have taken some or the other government support and are incubated at STEP IIT Kharagpur. They have also adapted co-incubation kind of practice during their existence in the incubation system of IIT Kharagpur.
a) Electrosoft Consultants Pvt. Ltd at STEP, IIT Kharagpur (www.electrosoft.co.in) works in the development of software and VLSI based tools for especially able children. They have received grant for innovative product development, being part of the incubation. Besides using the high end technology of the incubation at IIT Kharagpur, India, they are also using the hand holding of Finnish partners from Global Venture Lab-University of Jyvaskyla for product refinement and development. Hence, it has been able to create its sustainability through such network in partnership with IIT Kharagpur.
b) PervCom Consulting Private Limited is at Technology Business Incubation (TBI); IIT Kharagpur (www.pervcomconsulting.com) focuses on developing devices and system solutions for remote tracking, monitoring and management of objects, human beings and environment using Active sensors and actuators with wireless mesh networking technologies. The company has got innovation funds from being part of TBI and has obtained govt. venture fund through the partnership of Government incubation network of the state.
c) Data-resolve Technologies (www.dataresolve.com) provides quality solutions for data protection, internet security, identity theft and parental control. The company was started by student entrepreneur from IIT Kharagpur, India. The company was supported by Technology Incubation and Entrepreneurship Training Society (TIETS) seed fund incubation of IIT Kharagpur. The company has been facilitated by the partnership of GVL platform for entrepreneurial marketing. The company has also raised good venture funding from the branding of IIT Kharagpur incubation as well as GVL partners.
The three start-up cases mentioned above faced certain challenges of funding, product refinement, benchmarking and market, until they were provided facilitation from partnership support of the incubation system at IIT Kharagpur, India.
They also lacked a structured approach in designing their product and business goals. Besides the requirement of funds and other local mentoring support, all the three start-ups were able to achieve larger funds, mentoring network and international entrepreneurial trail market through the partnerships of incubation at IIT Kharagpur. However, these partnerships have also let the start-ups to widen their vision and concept of innovation internationally.
Business Architecture for Network of Networks (Incubators’ Networks)
Business Architecture (Zachman, 2003) defines the structure of the enterprises in terms of its governance structure, business processes, and business information. In defining the structure of the enterprise, business architecture considers customers, finances, and the ever-changing market to align strategic goals and objectives with decisions regarding products and services;
Conference papers © Knowledge Globalization Institute, Pune, India, 2012
partners and suppliers; organization; capabilities; and key initiatives. Business Architecture for co-incubation network primarily focuses on the business motivations, business operations and business analysis frameworks and related networks that link these aspects of the enterprise together. In order to develop an integrated view of co-incubators, many different views of an
organization are typically developed. The key views of the incubators within the co-incubation business architecture are:
A structured approach: There are numerous factors to consider when evaluating and selecting entrepreneurs in the network. This is assumed to be done by the respective incubation systems. Each option contains its own set of considerations and limitations based on elements including type of industry, product and most prominently, the proposed solution’s ability to address the challenges.
As gaining a fuller understanding of this process is one of the intended outcomes of reading this paper. As per the illustration above, STEP/TBI at IIT Kharagpur, India follows the structural approach to incubate the startup venture by evaluating the independent innovators/entrepreneurs on: relevance of primary business idea, identifying their needs and expectations, methods to fulfill these expectations, feasible success of startups, the economic impact of business idea, entrepreneurial skills and approach, technical feasibility, cultural or organizational impact on society.
Association with business goals and strategies: The business strategy view captures the tactical and strategic goals that drive an organization forward. The goals are decomposed into various tactical approaches for achieving these goals and for providing traceability through the cooperative association among the incubators. These tactical and strategic goals are mapped to metrics that provide ongoing evaluation of how successfully the organization is achieving its goals.
Business Capabilities: The business capabilities view describes the primary business functions of an enterprise and the pieces of the organization that perform those functions. This view further distinguishes between customer-facing functions, supplier-related functions, business execution, and business management functions. The cooperation between the incubatees or tenant companies in co-incubation network would provide better business capability in terms of market and business supply chain.
Value Stream: The value stream view defines the set the end-to-end set of activities that deliver value to external and internal stakeholders - transcending organizational boundaries. Value streams are the vehicle for viewing the business “in motion” and are the key aspect of business architecture that enables alignment of business processes with the business architecture Business Knowledge: The Business Knowledge view establishes the shared semantics (e.g., customer, order, and supplier) within an organization and relationships between those semantics (e.g., customer name, order date, supplier name).
These semantics form the vocabulary that the organization relies upon to communicate and structure the understanding of the areas they operate within. As in illustration of STEP/TBI at IIT Kharagpur, it provides the better ground realities to startup venture for local market as well as international market to its start-up companies through its GVL partners.
Focus on customer needs: Focuses on value with emphasis on value-propositions, and valuechains, that identify core business processes and process steps.
In addition to the above views of the enterprise, the relationships connecting the aforementioned views form the foundation of the business architecture. This foundation provides the framework that supports the achievement of key goals;
planning and execution of various business scenarios; and delivery of bottom line business value.
Benchmarking: “Benchmarking” is the process of identification, understanding and adapting finest practice and process that will lead to better performance. Benchmarking measures an organization’s products, services and procedure, to set up targets, priorities and improvements, most important to competitive advantage and/or price reductions.
Business Architecture of Co-Incubation System: Co-incubation architecture at IIT Kharagpur The co-incubation system looks upon networking as a key element in the success of start-up venture firms. The co-incubation or networked incubator concept has received much attention in the literature due to association of incubators and its capabilities to improve a firm’s performance. Firms associated with strong incubators network received higher support, reached faster growth rates, be more innovative and verified better ability to deal with market with a new product.
Conference papers © Knowledge Globalization Institute, Pune, India, 2012
Co-incubation efforts require input and support from a range of stakeholders. This includes organizations and people in government, local business, education, large regional employers, capital providers, and community leaders. For Coincubation, stakeholder cooperation best benefits startup businesses, support entities draw upon their networks to connect incubated businesses with resources, suppliers, clients, etc. A best success depends on regular collaboration and high levels of communication among incubators and incubates. Coincubation: A full range of care is available for startup businesses to address their requirements as they advancement in their development.
This paper has drawn the concept of this architecture from the existing model of IIT Kharagpur, India which has incubation system partnered with various private, government and international players. This architecture might not be the ideal one but it has sustained many start-ups in past and currently has forty start-ups.
Figure 4: Co-incubation network at IIT Kharagpur