Entrepreneurial Management Innovation At Wipro Business Essay

Executive Summary

This study describes in item the invention procedure at WIPRO limited, India from the clip of its being and the go oning procedure. The study is derived from the writer ‘s relation to the company for 5 old ages in the IT concern sector of the company and based on past company studies. The study begins with a short debut to the company and simple definition of footings used in relation to the company. The single entrepreneurship of Ajim Premji, president of the company is discussed through its being. Later how the organisation matured into a corporate enterpriser is discussed with the current model chased. The following subdivision describes the factors that contributed to the success of this invention with a few barriers highlighted and suited recommendation provided based on the writer ‘s experience. The study helps in understanding entrepreneurial behavior and advanced results.

Introduction to the organisation

Wipro was founded in 1945 in India and is presently diversified from bring forthing vanaspati oil during its initial set up to Information engineering, consumer attention, illuming, technology and wellness attention sectors. The company has a long history of budding from independent entrepreneurship to corporate entrepreneurship after its variegation. Though founded during the early twentieth Century, this company came before economic liberalisation and adroitly used the chances offered by deregulating to turn concerns. At the same clip, they built strong organisational capablenesss such as undertaking direction, quality of executing and velocity. Arguably it is one of the few companies in India that changed its merchandises and services with the gait of technological alteration and demand. Wipro trades with concern in IT services, Product technology solutions, Technology substructure services, Business Process Outsourcing and other consulting related services. As of 2010 the company has employee strength of more than 100,000 and is classified as a big company in the IT sector.

We will write a custom essay sample on
Entrepreneurial Management Innovation At Wipro Business Essay
or any similar topic only for you
Order now

Presently the organisation is diversified into many concerns with Information Technology services playing a major function in Wipro ‘s success. Today the Indian IT companies viz. TCS, Wipro, HCL are renowned in the planetary market for their services. The assorted external factors taking to this state of affairs include the Indian instruction system, high quality applied scientists, low cost of creative activity and high technological substructure.

Approach to the papers

This study defines the assorted sorts of advanced results in Wipro and how it evolved over 50 old ages to its current province that can be classified into the OECD invention theoretical account. After this a few factors that have led to these advanced results have been discussed and farther classified as facilitators or barriers. Based on these observations a few recommendations are besides provided to better corporate entrepreneurship at Wipro.

Definition of footings

Academicians and practicians have defined corporate entrepreneurship in many different ways in the existing literature. A figure of writers emphasize that entrepreneurship chiefly Acts of the Apostless in underpinning invention ( Drucker, 1985b ; McGrath, 1996 ; Stevenson and Jarillo, 1990 ) .

Harmonizing to Schumpeter ( 1934 ) Invention is

1 ) The debut of a new good or a new quality of the good

2 ) The debut of a new method of production

3 ) The gap of a new market

4 ) The conquering of a new beginning of supply

5 ) The transporting out of the new organisation of an industry

It can be differentiated between 4 types of inventions, viz. “ Product Innovation ” , “ Procedure Invention ” , “ Selling Invention ” , and “ Organizational Invention ” ( OECD, 2007 ) . Corporate entrepreneurship is defined as the attempt of advancing invention from an internal organisation position, through the appraisal of possible new chances, alliance of resources, development and commercialization of said chances ( McFadzean et al 2005 ) .

Corporate Entrepreneurship ( McFadzean, 2005 )

From 1945 – 2000 single entrepreneurship

Azim Hasham Premji, the president of Wipro, was called upon to pull off Wipro when he was 21 old ages old at the sudden death of his male parent in 1966. He has steered the company to a rapid growing since so. In the 70 ‘s, he realized a turning demand for computing machines in India with a few makers. The company had no cognition about computing machine fabrication but Premji decided to venture into this and decided to join forces with scientists from the Indian Institute of Science ( IIS ) to fabricate hardware and subsequently package ( when the Indian market was liberalized in 1991 ) . Under his leading, the fledgling US $ 2 million hydrogenated cooking fat company has grown to a US $ 1.76 billion IT Services organisation functioning clients across the Earth.

Value based leading

Premji has established a strong value system in Wipro and believed that values non merely helped in accomplishing success but besides made that success more abiding and permanent ( 2003 ) . Based on the vision created by the leader the organisation made its way towards diversifying into assorted sectors and successfully introducing. Below are the mileposts in the value based leading that led to its growing until 2000

1977 – WIPRO was renamed to Wipro merchandises limited due to its broad scope of merchandises

1970 ‘s – First Indian company to fabricate mini computing machines

1980 – Wipro Technologies was created to fabricate computing machine hardware and related package

1988 – Wipro Biomed was established to market and service bio-analytical and diagnostics instruments. In 1989 it turned into a joint venture with GE and launched Wipro GE Medical systems limited

1998 – Premji decided to set about an image edifice exercising for Wipro and adopted the rainbow helianthus logo and the ticket line “ Applying Thought ”

1999 – First Indian company to have the SEI-CMM degree 5 enfranchisement which would assist the company in planetary concern development.

All these enterprises led by the leader made Premji one of the top 30 all clip great enterprisers in the universe ( Business hebdomad, July 2007 ) . The magazine said, “ After doing the company profitable and spread outing from nutrient oil to other consumer goods, Premji led Wipro into the nascent tech economic system in the seventiess. Premji is besides a hands-on director involved in daily operations, even doing gross revenues calls himself ” .

He believed in authorising people leting them to show their thoughts and raise voices freely. There radical policies would assist determine the leaders of tomorrow. Employees were free to give feedback in a transparent system and the direction at Wipro learnt what was haltering squad public presentation and what could be done to rectify any jobs.

Corporate entrepreneurship from 2000 onwards

From 2000 onwards the company focussed on invention as a step to prolong its competitory advantage. Since the launch of invention enterprises in 2000, Wipro had emerged as one of the strongest participants in the Information Technology ( IT ) industry. The company offered a comprehensive portfolio of merchandises based on advanced solutions. Innovation was a requirement at Wipro since it believed that this was indispensable to accomplish growing and competitory advantage. It was one of the values on Wipro ‘s promise statement that said, “ With extreme regard to human values, we promise to function our clients with unity through innovative, value for money solutions, by using thought twenty-four hours after twenty-four hours. ”

2000 – In September Wipro established ePeripherals Limited ( Wep ) diversifying into IT related concerns.

2004 – Wipro ‘s invention enterprises focused on the publication industry resulted in immense success therefore spread outing the solutions to other countries – finance, insurance, and fabrication. 900 employees working towards developing advanced concern solutions ( Business Week, 2006 )

2007 – As of March 2007, advanced enterprises contributed to 7.5 % of the toal grosss. Had a mark of 10 % by 2009 and successfully achieved it.

Invention council

Soon the invention council was formed and the attack aimed at beging thoughts from the employees. The gathered thoughts from employees were discussed at the IC with top direction reexamining the proposed thoughts and analysing how they would assist the company speed up growing and increase the quality of its new merchandises. Thus it offered a underside up attack to innovation although the feasibleness was considered by the top direction. And with selected 1s, the company granted support, engineering and resources to convey into action. This encouraged the employees to propose more advanced thoughts and by the terminal of 2006 the council had 200 lasting employees to manage petitions.

Working model for invention at Wipro

The invention enterprise at Wipro began with in deepness survey of successfully introducing companies like Nike, 3M Technologies and Home Depot. A 2 member squad was formed to confer with with academicians, experts, industrialists to chart out an invention enterprise. However after thorough scrutiny it was observed that no bing invention theoretical accounts could be replicated at Wipro. Hence by following a ground-up attack a focused invention theoretical account was built based on the demands of the company besides sing authorized client thoughts. Harmonizing to Oslo Manual for mensurating invention there are 4 types of invention merchandise invention ; process invention ; selling invention and organizational invention. However the working model of invention at Wipro classifies invention at Wipro as Process Innovation, Technology Innovation, Delivery Innovation and Business Innovation.

Applied invention model

Wipro ‘s applied invention was a 360 grade attack to concern that focussed on four spheres – concern, procedure, engineering and bringing. This would assist Wipro technologies work collaboratively with its clients to cut down the cost of a undertaking, rush up the procedure of bringing and place new chances for concern.

Invention at Wipro ( Divakaran Mangalath, 2006 )

Procedure invention

As portion of its invention procedure Wipro applied the rules of thin fabrication and six sigma to its procedure of package design and development. This helped it increase productiveness by 10 % since it reused tools and constituents. It was apparent that after thin rules of technology were applied to over 700 undertakings, 20-30 % nest eggs were recovered for the company ( manager ‘s study, 2007 ) .

Delivery Invention

This included the package mill theoretical account and the planetary bringing theoretical account. The mill theoretical account integrated several IT maps into a centralised supply concatenation leting common countries of work to be grouped for better quality and clip salvaging. Wipro observed 10-15 % decrease in rhythm clip of demand to bringing of merchandises. It was globally used across undertakings and Wipro was credited with open uping the practical distributed package development theoretical account that enabled companies to pull off big undertakings through virtually distributed squads.

Technology invention

The company was involved in making IPs ( Intellectual Properties ) that efficaciously enabled its clients to cut down clip in the merchandise life rhythm and better the success rates of the merchandises. Eg: the company developed a plug-n-play patent and IP that helped cut down the merchandise ‘s time-to-market by 20-25 % . Besides they were the largest bank of patents in bluetooth, radio LAN and IEEE 1394.

Business invention

To better its relation with clients, the company focussed on concern solutions that were specific to the related industry. Wipro ‘s concern inventions included Data Privacy and Master Data Management, Clinical Data Management, Integrated Publishing platform, seller managed stock list, retail pharmaceutics, etc. Wipro besides developed the GCC ( Global bid centre ) with IT substructure for its clients. The clients were happy to supervise, name, shop and secure applications as and when needed.

The results of corporate entrepreneurship

In 8 old ages, by the terminal of 2008, invention became an built-in portion of merchandise development procedure. Since the cyclic procedure has been inculcated in the employees, the “ time-to-market ” was significantly decreased for new merchandises and besides the merchandises used leading-edge engineering.

A work flow solution – Flow-Brix was estimated to bring forth grosss in the scope US $ 75,000 – US $ 1 million.

Invention had spread across all sectors of the organisation and i-Desk was the first one to enable easy HR direction – by a join forcesing workplace tool for workflow solutions for publication.

All these invention enterprises have been fruitful and besides helped the company pull prospective employees to make full 29 % of vacancies in 2006 ( Business hebdomad, 2006 )

Hence it was certain that the invention procedure enabled a strong merchandise portfolio and besides brought good gross watercourses. In Wipro engineerings, the company was concentrating on consultancy services which would farther heighten its image in the planetary package industry.

Internal organisational factors to see for successful invention

Consequence of leading

In Wipro it was non merely enrolling the right sort of people, but besides in proper preparation of its people. Employees were mandated to patronize internal preparation Sessionss with major duties showered on them although they may non look good prepared for the function. Premji ( 2005 ) defined 8 leading qualities which were made a criterion against which new employees would be recruited and trained. He believed that preparation and development at assorted phases were designed by mapping people ‘s competences to specific functions in the Life Cycle Stage Development Plan.

Invention Culture

Premji besides placed extreme importance on invention and creativeness in developing a successful organisation. Stressing the importance of invention for the overall development of the organisation, Premji said, “ Invention is basically the application of high creativeness. It need non be restricted to merely merchandises ; it applies to services, employee attitude and across all degrees. Invention is a cardinal mentality pursued earnestly by an organisation. It is imperative to absorb the civilization of invention ” ( Manu B. 2006 ) . Analysts report that the unfastened and supportive civilization at Wipro gives employees the chance to develop their accomplishments and as a consequence, lend more to the organisation.

Management patterns

In order to come out with advanced merchandises and services, the top direction at Wipro committed itself to furthering invention in the organisation and promoting employees to come out with advanced thoughts.

Value system

The company besides strove to do it more clients centric. The company believes in the aim of “ customer-in ” where the voice of the clients is built in the merchandises instead than being “ product-out ” where the merchandises are sold by marketing its characteristics to the client. Premji besides believed that this value system has to stay integral even after his term of office which was openly admired by the rivals.

Organizational construction

In Wipro the organisational construction was besides responsible for transporting out invention enterprise in selected undertakings. The company emphasized the commercial viability of an thought along with invention. The construct was to make constituents with Intellectual Properties ( IP ) that would bring forth grosss over a period of clip instead than erstwhile gross from undertakings.

Invention scheme

Another attack to invention involved executives of several industry perpendicular concern units placing new engineerings that would be of importance to their clients in the close hereafter. The aim was to hold expertness in the new engineerings and come up with the merchandises and productive services that could be patented by Wipro. These Centres besides work with research institutes, engineering suppliers and besides supply a platform for the growing of the employees. The company was able to establish new merchandises continuously due to its invention scheme, which well reduced the clip between idea-generation and concluding merchandise development.

A few hinderances to effectual invention

Competitive competition

WIPRO was able to bring forth hardware and package for the domestic market, nevertheless due to high competition and low quality ; they decided that they could non export their merchandises in a market that had the niche merchandises from the large companies. They were non ready to take the hazard of viing with IBM, Intel, and Apple and decided to utilize the chance where doors were unfastened in the Indian market. If in the procedure, they were able to achieve the quality as these giants, they could hold made it to the bigger markets in no clip and could hold proven cost effectual than other options. But due to inaccessibility of high quality natural stuff and skilled resources, they had to restrict to the domestic market.

National civilization

India is a developing state and it takes clip for technological alterations to happen. Besides the initial cost of hardware and package related to new engineering is really high and non low-cost to most undertakings. Hence although the Innovation council decides on executable advanced thoughts posted by employees, rather frequently they are rejected due to inaccessibility of resources in the state. However the company is endeavoring to vie with planetary rivals in the technological field and this barrier can do a major impact on the invention scheme.


Top down attack

An entrepreneurial vision indicates the strategic purpose of the organisation. Stein ( 2002 ) proposed that the most admired companies set ambitious ends. This vision encourages persons to keep informal treatment with co-workers, friends and portion the cognition that they bring with different undertaking experiences. This helps polish the thought based on the critical analysis by more than one individual. Thus the vision compositor really motivates employees to endeavor to stand out beyond their capablenesss and modus operandis. Although invention and creativeness can non be forced on employees, this provides a platform to discourse, associate and bring forth new thoughts. This uninterrupted invention is besides possible merely when the employee understands and accepts the vision and strives to present it.

Team based activities

In Wipro engineerings undertaking work is besides carried out in squads. This inculcates an squad based civilization for working among employees. Although the employee is non forced to discourse advanced thoughts within his squad he can depend upon forums to happen people with similar involvements. As portion of cognition sharing the company encourages engagement in forums and blogging. Thus a webbed construction is created in sharing thoughts. For illustration, people working for different undertakings but with similar technological backgrounds can trust upon the forums for their needful expertness. In this manner simple tools created in one undertaking can be easy passed on to other undertakings with similar demands efficaciously cut downing clip to join forces with the Innovation council. This can besides be seen as a cognition direction enterprise that fosters invention.

A new position

The organisation can look upon advanced thoughts as a alteration direction procedure. The organisation has keenly created the Innovation council to take attention of the procedure. However the acceptableness of bing squads to these new thoughts is non calculated as a hazard. Peoples could be inflexible in accepting a fresh manner of making concern. They are more comfy with the everyday methods and could turn out a failure to the instance. Along with invention direction the organisation should besides see alteration direction as portion of the civilization. This would better acceptableness of thoughts and maintain the cyclic procedure of invention traveling on.


Wipro which began with the success of an single enterpriser has matured to a corporate enterpriser that fosters invention. The invention discussed about Wipro engineerings in peculiar can be applied to other industries excessively. Analysts feel that these internal organizational factors – civilization, leading, scheme give employees the environment conducive for uninterrupted invention and lend more to the organisation. However, the company has to rethink of its methods since close rivals like TCS, Infosys and CTS are besides doing immense investings in invention. Hence with increased competition, it is a challenge for Wipro to prolong the current place of the invention leader in the Indian market.


Hi there, would you like to get such a paper? How about receiving a customized one? Check it out