Technical Entrepreneurship and Bill Gates Growth as a Technical Entrepreneur - Case Study Example

ENTREPRENEURSHIP By Insert Presented to Location Due Technical Entrepreneurship Introduction Entrepreneurship is a process which new ventures are invented or created by an entrepreneur. This is process in which an opportunity is identified, evaluated and developed taking into consideration the required resources for effective and efficient implementation. This process requires devotion of necessary effort and time assuming all the social, physical as well as the financial risks. According to Thomas Byers (2010) in his study provides that this process is accompanied with rewards of monetary, independence and personal satisfaction. Technology entrepreneurship in the current corporate world is a key pillar in the context of prosperity in firms, businesses and companies. Therefore technology entrepreneurship is also essential apart from the satisfaction of intellectual curiosity (Thomas Byers 2010). Technology entrepreneurship where specialized entrepreneurs using the various specific corporate assets to capture and create the desired value. Duening (2009) provides that what distinguishes this entrepreneurship with others is the creation of new products accompanied with various experimentations which is related to advent of technological and scientific knowledge as the related firm ownership of rights and assets (Duening 2009. Manny literatures of technology entrepreneurship have not fully explored and identified the final outcome of technology entrepreneurship, the channels and the ways in which these outcomes are delivered, ultimate outcome target and finally the interrelationship between technology entrepreneurship and the technological and scientific knowledge. It is important to note that technology entrepreneurship in modern times has become more advanced because it has been linked to the theory of the firm, the management theory and the aspects of management. Technical Entrepreneur Case Study It is notable that the technical industry has created many wealth entrepreneurs. This case study is based on the success of entrepreneur Bill Gates who is the co-founder of Microsoft Corp. Bill Gates as an entrepreneur had always vision of predicting the significance of innovation and the dynamic evolving of personal computers (Zhao 2008). This aspect throughout his career in Microsoft Corp enabled him to becoming famous software developer and among the wealthiest individuals in the world by 2006. In his tender age he dabbled computer programming which enabled him to sell his first computer program. He had already established himself as a technical entrepreneur designing computer programs finding business helping a power company in designing a program to light the city. When this business was interrupted he saw another opportunity in the computer word after the world first computer was invented. Designation of a system had earlier been designed by MITS but did not advance because it was a small firm and also going at a loss (Duening 2009). During this period the computer indicated a lot of potential development and Bill Gates was determined to advance it as a young technical entrepreneur. The engineers of that time had developed its hardware and hardly had any software written but it’s only used a computer language known as BASIC (Thomas Byers 2010). Bill Gates saw an opportunity and he was ready to embark on this entrepreneurial work and he thought he could solve this underlying problem. With his co-partner they spend a lot of time and effort writing BASIC computer language and they did not have any real machine to work on it. As a young technical entrepreneur with little knowledge they had little way in testing the programs he had designed. In testing their programs they relied most on their instinct knowledge, scientific coin-flips and theories. When he finally finished he could not believe with his co-partner that the software had really worked on the machine. With Paul Allen studying at Harvard University having been successful formed Microsoft Company which specialized in computer software and trademarked it in 1976. Encouraged and motivated with the success of MITS they were able to sell their advanced BASIC programs to other various manufacturers entering the personal computer field in full blast. Bill Gates adopted the strategy of convincing the software programmers at that time to use BASIC in running their programs (Thomas Byers 2010). This strategy facilitated the BASIC becoming famous and adopted by many individuals and programmers. The strategy was successful because it made BASIC a standard in the industry and propelled itself enabling him to continue advancing and adding new features to the BASIC satisfying the demand created. In the early stages of his technical entrepreneurship with his co-partner had a significant growth in the computer industry thinking of coming up with an appropriate software for running personal computers (Duening 2009). Microsoft company saw its first breakthrough in 1980 when they entered into a contract with IBM in coming up with an operating system to run its newly developed personal computer. The language that was used is the common MS-DOS. Bill Gates Growth as a Technical entrepreneur Bill Gates co-founded Microsoft Corp and started it like any other firm in the software industry. As a technical entrepreneur in his early years insisted proofreading all the codes which constituted any project they were creating and this led to adjustments which finally led to development of unique software products from Microsoft Corp. The contractual clauses which were included in his various deals signed contributed to his success as a technical entrepreneur and the Microsoft firm (Bolton 2004). He was able to license MS-DOS written operating system which enabled him to sell to other developing personal computers. This contributed to this operating system software becoming famous in the field of personal computing. When Paul Allen left the company due to illness in 1983 Bill Gates was left with the burden of overseeing the innovation and growth sustenance of the company. With the introduction of Microsoft Windows 1.0 in 1984 Gates attained the status of a billionaire after it was listed on the New York Stock Exchange. When Bill Gates introduced MS-DOS operating there were other three operating systems which brought stiff competition in the market. Bill Gates MS-DOS became the leader of the market attributed to its signings with big computer companies such as IBM. It is notable that the operating system format wars began when Apple Company released its first Macintosh computer. The operating system of this company was considered sophisticated and more user friendly and this prompted Bill Gates to be more entrepreneurial to counter this underlying competition (Bolton 2004). To counter this competition Bill Gates took advantage of the networks effects which were attributed to Microsoft operating system. This is because computers required using the same operating system in order to operate across networks. Gates MS-DOS value increased as more people used this operating system in their personal computers. This major challenge was the high switching costs but Gate’s MS-DOS windows system dominated this market during this period. Innovativeness of Bill Gates According to Bill Gates (1998) it will not be rational to deny that Bill Gates is a successful technical entrepreneur, it is important to note that his innovativeness and creativity has been challenged by other technical entrepreneurs (Bill Gates 1998). Computer science professors notably David Gelernter provides that Microsoft Corp. has created and developed its products through combination of already existing ideas in the underlying marketplace. In his argument he implies that it is not justifiable that Bill Gates is a pioneer in technical entrepreneurship. Another major critic is the opposition of Bill Gates in regard to the use of the web internet. On the other hand Bill Gates innovativeness is notable as he continued improving its windows (Oakey Technical entreprenenurship in high technology small firms: some observations on the implications for management 2003). Each of the subsequent versions introduced ran faster with improved features and frequently froze less. He encouraged third party computer and software programmers which developed windows-based programs and this enabled Microsoft’s own application to become highly demanded in the marketplace (Bill Gates 1998). During the early 90s Microsoft reportedly sold a million copies per month and studies showed that it was running approximately over 85% of the world computers. Bill Gates strategy of convincing computers producers to pre-install their software before selling consolidated Microsoft dominance in the marketplace. This strategy according to enabled Microsoft to post sales estimating over $ 19.7 thus made Bill Gate a successful Technical entrepreneur (José Aurelio 2008). It came into limelight that many companies in the market place complained of Bill Gates strategy that it retarded the development of new technology by the monopolization of its operating system. Upstart Diversity Strategy This strategy was adopted by Bill Gates in marketing his software programs in Microsoft Corp. This was characterized with the expansion and diversification of its products in addition they intensified their efforts of marketing and designing other computer languages. With the increasing demand and rising corporate fortunes Bill Gates and his co-partner could not be able to handle all the departmental activities in the company (Bill Gates 1998). They hired energetic and aggressive manager thus enabling them to concentrate on other functions such as designing and coming up with new products. Steve Ballmer was identified to fit the position obligated with hiring and market the products of the Microsoft Corporation (Oakey 2010). Steve Ballmer entrance into Microsoft Corp was very instrumental attributed to his leadership skills and the company continued to grow and prosper. With Bill Gates good entrepreneurial negotiation skills in place he was able to strike a deal with the giants IBM who were looking for software programs upstart. Microsoft Company also became the main chief advisers of IBM in regard to software issues. Gates was able to pitch in plans, insights and ideas to the management team of IBM and they were exited on the Microsoft technology integrated in their newly developed personal computer machine (Lesinski 2008). Gates further developed a graphics capability feature which was sought by IBM. Upon the completion of IBM new computer IBM announced that MS-DOS Microsoft Disk Operating System is integrated in the machine (Bill Gates 1998). The floppy disk designed by Bill Gates was to oversee all the functions inside IBM computer and had the capability of running other programs. All the IBM computers relied on the on this software developed by Microsoft Corporation. The MS initials represented Bill Gates Microsoft and this became one of Bill Gates milestone in becoming a pioneer the development of computers software’s. Growth of Microsoft Corporation Even after it’s the gold struck deal with IBM in 1980 under the entrepreneurial development and leadership of Bill Gates Microsoft continued to expand with its sales doubling. Bill gates continued developing new products notably the invention of Radio Shack Lap-size computer. By 1984 Microsoft had the highest hit of computer hardware and Microsoft corporate was worth $240 million under the leadership of Bill Gates. With the illness of Paul Allen Bill Gates was had increased responsibility of facilitating innovation, entrepreneurial functions and product development in Microsoft company. According to Oakey (2010) he states that the growth of Microsoft Company is attributed to Bill Gates always putting the company in an excellent position and ensuring that the company is far ahead in developing excellent products. With the perception that the lotus software is larger and that it does not have a blockbuster but the general situation is that the company is in a good position (Mayle 2006). Despite the registered success of Bill Gates in Microsoft Company his key major challenge is fostering credibility of his developed products. According to Oakey (2010) when they introduced its first version of windows they made it public but it took long for it to reach the marketplace. This also happened during the release of EXCEL a new business program and there was a negative perception by the potential clients. With the identification of these problems Bill Gates has been able to overcome them as he is most driven and totally unique entrepreneur (Bill Gates 1998). On his perception he attributes himself to the development of computer codes command that is argued by many that it makes computers be considered smarter than humans. Bill Gates management style Since the development of Microsoft Corporation Bill Gates has been responsible for the company product strategy and development. His entrepreneurial skills diversified the company products. Gates proved to be a real competitor in the market place and he was keen meeting Microsoft senior managers and program managers discussing in dept business strategies that secured the company long-term strategies. Bill Gates is considered to have played a significant role in the management, executive and software developments in Microsoft Corporation. Much tribute is laid on his early years as an active software developer notably in programming language of the company products (Bill Gates 1998). As a successful entrepreneur during his transition he was able to divide the company responsibilities identifying them to be day-to-day management and the long-term product strategy. This has facilitated the company into being one of the leading software’s developers in the current market place in the computer world. THEMES EMMERGING FROM BILL GATES TECHNICAL ENTREPRENEURSHIP CASE STUDY From this case study considering various aspects of the technology advancement and entrepreneurial development in most firms and companies a number of themes arise. In the context of this case study the following themes notable arise. First are the factors that influence the establishment of technology firms; Why, how and when do technology entrepreneurship impact the socio-economic development of a marketplace; Strategies used by technical entrepreneurs in firms to increased revenue and cost reduction; Relationship between technical entrepreneurs and the formation of technological firms and their growth; Internal practices used to operate and transform small technology firms; functions of technical entrepreneurship in firms. Functions of technical entrepreneurship in firms Technical entrepreneurship has a significant role in the establishment of technological firms and thus fueling the advancement and progress in the society. This aspect of technology in the corporate world fosters and motivates technological innovation and positive impact in the development of firms by entrepreneurs (Bessant 2007). The aspect of technical entrepreneurship enabled Bill Gates and his partner to become successful entrepreneurs. It ensured that he identified, selected, described and communicated the importance of the opportunity in the development of personal computers. It ensured that the developed Microsoft becomes a successful venture in software development (Cortada 2010). Gates as an entrepreneur was able to describe the value of the venture and designing the business model which enabled the company gain competitive advantage. Technical entrepreneurship ensures that there is selection of appropriate strategy which facilitates commercialization of their designed products which have been released in the market place (Khosrow-Pour 2002). With the designation of a competitive product strategy Microsoft Company has been able to have its products being more competitive. Technical entrepreneurship also plays a major role in contributing to the development of new firms and making a difference in the technological field. The core major aspects of this theme is generally the identification of opportunities, mobilization of resources and ensuring that visions are executing (Bessant 2007). These identified pillars have been ascribed by most successful entrepreneurs and this has facilitated the process of creating new technological enterprises. Most of the technological firms identified have great significance in the economy and the role of technical entrepreneurship is to engineer their growth (Cortada 2010). Firms notably adopting new technologies should integrate the aspect technical entrepreneurship and sound technological practices which foster innovation. Factors influencing formation of technology firms In this case study this is a key major theme in technical entrepreneurship in which it focuses on the external factors that plays a key role in the formation of technology firms. The essence of this theme is the description of the various systems which contribute to the development of technological firms such as Microsoft Corporation and Apple. This is attributed most to the traits and characteristics of the technical entrepreneurs. According to Cooper (2009) his studies shows that Bill Gates character and traits in regard to technological entrepreneurship plaid a significant role in the formation of Microsoft Corporation (Cooper 2009). Bill Gates and his co-founder were motivated and determined to form their own software company. Gates saw the opportunity as personal computers was taking the world into a new level. Gates was very innovative in all of his software developments that he made (Szirmai 2011). He kept modifying them introducing new features thus becoming the most sought software programs for personal computers in the market. There are also external events such as advent of new technologies which creates opportunity for entrepreneurs to start up technological firms (Cooper 2009). Firm’s spinoff as well as technological transfers also plays a major role evident in the case study regarding MITS whereby Gates and Allen had to adopt its hardware designs as they develop their software programs and operating systems. Finally under this theme is the commercialization capability whereby technical entrepreneurs are able to come up with programs that can be commercialized and sold in the market place. As the sales increase technological firms are established. Why, how and when do technology entrepreneurship impact the socio-economic development The focus of this theme is how technical entrepreneurial development impacts on the socio-economic development of a country, firms or regions. Many scholars have addressed and expressed this theme in their studies providing relationship between technical entrepreneurship and regional economies and the contribution of the underlying technological firms. According to Cusumano (2004) in his research provides this relationship categorizing countries in terms of their economies and their level of technical entrepreneurial advancement. The study indicated parity in developed, developing and least developed countries (Cusumano 2004). It is notable that countries with advance technical entrepreneurial development had developed economies compared to others. In the context of Bill Gates and Microsoft corporation case study it is notable that since its incorporation and continued development and innovation of software products the company has expanded and grown and has been listed and traded in New York stock exchange (Chen 2005). Therefore ascribing from this it can be argued that that Bill Gates entrepreneurial development at Microsoft Corporation plays a significant role in the growth of Americas Economy. In addition this theme addresses technological transfer which is attributed to emergence of second and third party technological developers. Technological development is a core drive of technical entrepreneurial development also in other sectors of the economy both technological and non-technological sectors (Minniti 2006). Strategies used by technical entrepreneurs in firms to increased revenue and cost reduction This theme addresses the challenge that firms face in regard to the management of the financial performance. Most entrepreneurs’ startups usually expect great financial results however in most cases they fail to achieve. In the context of the case study Microsoft Corporation under the leadership of bill Gates have had consistent profitability attributed to his ability to take care of the factors that are considered the profitability drivers. It is important for good entrepreneurs to address the key major areas of profitability (Bamford 2010). The success of Bill Gates in running Microsoft Company depended majorly on four major profit drivers which include the price, variable costs, fixed cost and volume of sales. It is notable that Bill Gates put emphasis on the price factor whereby his entire commercialized products price had a greater impact on their profitability. As compared to increase in the volume of sales Gates found that that approach increased the variable cost which impact negatively on the profitability revenue. Decrease in variable cost increases the margin therefore do not increase the overall revenue (Bamford 2010). Regarding the fixed cost their reductions always have less impact on the overall revenue. All these areas have been well taken care by Bill Gates adopting the most profitable approach. Bill Gates adopted the best approach for effective strategy of maximizing Microsoft Company profitability (Landstrm̲ 2005). The company has aggressively and competitively prices its products and services dealing with customers who see the value and they can develop products that they can deliver. The approach adopted is to ensure that all the unnecessary cost has been reduced and company profitability is given priority. Relationship between technical entrepreneurs and the formation of technological firms and their growth Technical entrepreneurship in the corporate world has become the channel in which technological firms are established. This trend has been increasingly become a common feature and has made a meaningful impact in the society. Technical entrepreneurship equips individuals in addressing various challenges of evaluating technologies in regard to commercial feasibility. In regard to the case study Bill Gates Technical entrepreneurship enabled him and his co-partner to determine the feasibility and how best to launch their venture. In addition to this is that it enabled them to attract the various resources required to start their Microsoft Company. These include corporate partners, capital venture and the relevant people who contribute to the company (Cooper 2009). Preparation of business plans and structuring the business relationships which facilitates the management at the early stages of its development is a major contributing factor of technical entrepreneurship. This ensures that the business venture initiated by the technical entrepreneurship have the required launch velocity which will ensure that it has a sustainable growth. Technical entrepreneurs with their technological innovation, strategic management and entrepreneurship facilitate to a grater extent organizational development and the development of commercialized products and technology based firms. This has also enhanced the development and establishment of technology based enterprises as well as entrepreneurs can integrate these knowledge and skills in development of new technological enterprises. Internal practices used to operate and transform small technology firms Like any other business Technological firms need to have internal practices that that ensures that it aligns its service provision with the needs of the business. This is used most by technological firms and businesses integrating it with the firm’s strategy. This ensures that technological firms deliver value as well as maintaining the minimum level of competency. Organizations can be able to plan, implement and measure its key major goals and objectives. Microsoft Corporation notably has a well established internal practice which facilitates smooth running of operations within the company (Bamford 2010). These internal practices cover the company life cycle of services, the entire organization, staff and all the stakeholders as well as the components which are required to deliver standard services to the customers. The overview of Microsoft Company internal practices entails company service strategy which focuses on the each day improvement of the company in regard to its services and prioritization of its investments on various products and services (Cortada 2010). This has helped Microsoft company under Bill Gates to continue to develop since its inception up to date. It is notable that the company internal marketing strategy designed by Bill Gates is largely driven by the market (Landstrm̲ 2005). Secondly is the transition of services and products which entails the delivery of services which the business needs to satisfy the demand needs. This aspect of organization internal practice ensures that operations are well managed in all levels of product development up to its delivery. Service operation is another major aspect in the context of Microsoft company internal practices. This is one of the best practices which ensure that customer demand and satisfaction is met. Delivery of agreed demand levels for the customers and end-users. Technical management, operational management and application management is prioritized and more importantly the corporation staff are highly engaged in the service operation (Landstrm̲ 2005). Conclusion The underlying themes of technical entrepreneurship are notably connected in various aspects. All of the above themes in the context of the case study are interconnected in various aspects which can be summarized. These themes emerge from the change in technology which is considered to play a major role in regard to technological venture and formation. The two aspects have a higher level of relationship and interdependence. There are external factors which compliment the technological change notable the invention of personal computers in the case study. The impact of this is on the economical development and contributions in other fields. Other key areas that the theme covers regard technological firms on how they reduce costs and increasing revenues. Finally is how technical entrepreneurship contributes in the operations and transformation of technological firms and the general technical corporate entrepreneurship. References Adam Szirmai, W. N, 2011, Entrepreneurship, Innovation, and Economic Development, Oxford : Oxford University Press. Arnold Cooper, S. A, 2009, Entrepreneurial Strategies: New Technologies in Emerging Markets, New York: John Wiley & Sons. Bill Gates, J. L, 1998, Bill Gates Speaks: Insight from the Worlds Greatest Entrepreneur, New York: John Wiley & Sons. Bill K. Bolton, J. T, 2004, Entrepreneurs: Talent, Temperament, Technique, London: Routledge. Charles E. Bamford, G. P, 2010, Strategic Management, New York: Cengage Learning. Chen, H.-H, 2005, Cooperative Performance: Factors Affecting the Performance of International Technological Cooperation, New York: Universal Publishers. Cortada, J. W, 2010, How Societies Embrace Information Technology: Lessons for Management and the Rest of Us, New York: John Wiley & Sons. Cusumano, M. A, 2004, The Business of Software: What Every Manager, Programmer, and Entrepreneur Must Know to Thrive and Survive in Good Times and Bad, Boston: Simon and Schuster. John Bessant, J. T, 2007, Innovation and Entrepreneurship, New York: John Wiley & Sons. José Aurelio Medina Garrido, S. M.-F, 2008,Cases on Information Technology Entrepreneurship, New York: IGI Global Snippet. Khosrow-Pour, M, 2002, Issues and Trends of Information Technology Management in Contemporary Organizations, Boston: Idea Group Inc (IGI). Landstrm̲, H, 2005, Pioneers in Entrepreneurship and Small Business Research, New York: Springer. Lesinski, J. M, 2008, Bill Gates: Entrepreneur and Philanthropist, New York: Twenty-First Century Books. Maria Minniti, A. Z, 2006, Entrepreneurship: The Engine of Growth, London: Greenwood Publishing Group. Mayle, D, 2006, Managing Innovation and Change, New York: SAGE. Oakey, R, 2003, Technical entreprenenurship in high technology small firms: some observations on the implications for management, Technovation, 679–688. Oakey, R, 2010, High Technology Entrepreneurship, London: Routledge. Thomas Byers, R. D, 2010,Technology Ventures: From Idea to Enterprise, New York: McGraw-Hill Education. Thomas N. Duening, R. A, 2009, Technology Entrepreneurship: Creating, Capturing, and Protecting Value. London: Academic Press. Zhao, F, 2008, Information Technology Entrepreneurship and Innovation: International Approaches, Hershey: Igi Global. Read More