3Continent Master of Global Management 2013-2014
Graduate School of Business Administration
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Innovation Management
Instructor:Professor dr. Carla Irene Koen
Email:
Contents
Course Goalsp. 1
Intended Learning Outcomesp. 2
Class Processp. 2
Course Requirement and Expectationsp. 2
Brief Course Outlinep. 3
Readings and Course Preparationp. 4
Detailed Course Outlinep. 7
Course Goals
This course aims to
-Familiarisestudentswithinnovation, technology,entrepreneurship, and innovation management broadlyspeaking. The emphasis throughout the course is on the development and application of conceptual models, which clarify the interactions between competition, patterns of technological and market change, and the structure and development of firm capabilities.
-Provide students with a set of powerful analytical tools, which are critical for the development of a product innovation and technology strategy as an integral part of business strategy. These tools can provide the framework for deciding which technologies to invest in, how to structure those investments, how to anticipate and respond to the behaviour of competitors, suppliers, and customers.
–Stimulate discussion on new types of innovation, methods to enhance innovation in existing companies, and entrepreneurial initiatives.
–Built understanding on how to succeed in a venture – in both, a corporate and independent environment.
Intended Learning Outcomes
On successful completion of this course you will be able to
-analyze complex, interdisciplinary innovation-related questions in a start-up and established firm context
-support innovation and technological decisions with conceptual thinking and best practices from different sectors and countries
Class Process
The course utilizes interactive lectures, case analysis, in-class discussion, video, workshops, presentations, and independent reading.
Innovation is an exciting topic and requires interdisciplinary thinking and analysis. The course is developed to enable this process to take place.
Course Requirements and Expectations
Grading
Grades will be determined on the basis of
Class Dicussion, group assignment plus oral presentation(50%)
Individual Assignment(50%)
Innovation is an interdisciplinary team-based endeavour. Hence, the course emphasises and rewards team reflection, learning, & workat the same level as individual work.
Team Assignment
The team assignment consists of a case analysis to be carried out in teams of five participants and a PowerPoint presentation to be given in class during the last session on Thursday. The PowerPoint presentation needs to be handed in before presenting. The assigned cases and case questions are mentioned below.
Individual Assignment:
The individual assignment consists of a take-home exam with questions related to the topics of the course. The examination will be designed to test your level of understanding of and ability to apply the concepts covered during the Innovation Management course.
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Brief Course Outline
Monday 10 March 2014
-Session 1 Understanding Technological Change
-Session 2 & 3 The challenge of Disruptive Innovation
-Session 4 Understanding Market Evolution
-Session 5 Selecting Innovation Projects
Tuesday 11 March 2014
-Session 1 Selecting Innovation Projects (continued)
-Session 2 & 3Value Roadmapping
-Session 4 & 5 Benefiting from Innovation
Wednesday 12 March 2014
-Session 1 & 2 Business Model Innovation and Organization Change
-Session 3 & 4 Open and collaborative Innovation
-Session 5 Corporate Venturing and Corporate Venture Capital
Thursday 13 March 2014
-Session 1 Corporate Venturing and Corporate Venture Capital (continued)
-Session 2Business Case Analysis of High-Tech Ventures: Getting ready
-Session 3, 4, & 5Business Case Analysis of High-Tech Ventures: Presentations and discussion
Readings and Course Preparation
Articles/Book Chapters:
The articles support your understanding of the materials we will discuss in class and help you make your assignments. Some of the readings might look dated to you, but they are the classics, which anyone should read when taking a course in innovation management or interested in the subject.
-Foster, R. “Timing technological transitions.” Technology in Society, Vol. 7. pp. 127-141(1985).
-Bower, J. and Clayton, Christensen "Disruptive Technologies: Catching the Wave," Harvard Business Review, January-February 1995.
-Linowes, J, S. “A summary of crossing the chasm.”
-Wheelwright, S. and Kim B. Clark (1992) Revolutionizing Product Development, Chapter 5 “Structuring the Development Funnel,” pp. 111-132.
-Teece, David J. "Capturing Value from Knowledge Assets: The New Economy, Markets for Know-How and Intangible Assets" California Management Review, 1998, Volume 40, No 3, Spring 1998, pp 55-78.
-M.J. Eyring et al., Jan.-Feb. 2011, “New business models in emerging markets.” Harvard Business Review
-Koen, C. “Collaborative innovation in high-technology industries.” ISPIM, Conference paper, Barcelona, 2012.
-Birkinshaw, J. and Susan A. Hill (2005) "Corporate Venturing Units: Vehicles for strategic success in the New Europe." Organizational Dynamics, Volume 34, No. 3, pp. 247-257.
-Chesbrough, H.W. ‘The Era of Open Innovation’, MIT Sloan Management Review, Spring 2003.
Discussion Cases:
We will devotebetween 30 and 45 min. on preparation time in class, depending on the case,in order to discuss the cases and case questions in a team before plenary discussions take place.
Please read the cases in order to prepare for the team and plenary discussions.
Cases which need to be prepared by ALL participants
-Zopa. com (ECCH case)
-We've got Rhythm! Medtronic Corporation's Cardiac Pacemaker Business (HBS: N9-698-004)
-The bicycle of the future: technology planning in Biko
-Elio Engineering, Inc. Case I-1 from Robert Burgelman, C. Christensen, and S. Wheelwright (2009) Strategic Management of Technology and Innovation.” McGraw-Hill, pp. 13-31
-Ducati (Italy) vs. Harley-Davidson (USA) innovating business processes and managing value networks. Case Study 4 from TawfikJelassi and A. Enders (2008) Strategies for e-Business. Creating value through electronic and mobile commerce. FT Prentice Hall, pp. 343-355.
Cases, of which you only need to prepare the one, which is allocated to your team
For session 3 & 4, Wednesday 12 March 2014: Please prepare ONE case per team
-TEAM 1& 2:Koen, C. “Lunaris: Spin-off or Joint Venture?”
-TEAM 3 & 4:Koen, C. “Phenom: Collaborative Innovation with Supply Chain Partners.”
-TEAM 5 & 6: Koen, C. “CandelLed: Collaborative Innovation among SMEs”
-TEAM 7 & 8: Koen, C. “Fokker Elmo: How Partners from Analog Markets can help you protect your Position.”
For session 5, Wednesday 12 March 2014 and session 1 Thursday 13 March 2014: Please prepare ONE case per team
-TEAM 1, 2, & 3: Inxight: Incubating a Xerox technology Spinout. (HBS: N9-699-019).
-TEAM 45: Koen, C. “AMP AKZO LinLam Products: Incubating an AkzoNobel-AMP Venture.”
-TEAM 6, 7, & 8: Lucent Technologies: The future of the new ventures group (HBS: N9-601-102).
TEAM Assignment Cases
Below mentioned cases with case questionsform the team assignment part of the assessment of the course. You will be assigned ONE case to be solved in a team. Hence, similar to the above, you do NOT need to read all cases.
The cases are based on existing start-up companies in different life-cycles, each with different challenges, related to the life-cycle stage. The case companies are also operating in different sectors and different economies, western and emerging economies. The purpose is to learn about challenges in different sectors and countries.
All sessions (and readings) of the Innovation Management Course will help you to answer the case questions. You will get ONE session of 1.5 hours, on Thursday 13 March 2014 (session 2) to fine-tuneyour answers before the presentations and discussions start. I would encourage you to start preparing the assignment questions in advance.All course readings, as well as other knowledge and courses on, i.e. marketing and strategy, will help you with this team assignment.
For session 3, 4, & 5 Thursday 13 March 2014: Please prepare ONE case per team
-TEAM 1: Optima Environment SA: Turning a Wonder Tree into an Eco-business.
-TEAM 2: Electronic Arts in 2005: The next generation of convergence (HBS: SM-24D)
-TEAM 3: StubHub (A): January 2004 (HBS: SM-132A)
-TEAM 4:Pixim (A): August 2001 (HBS: SM-118A)
-TEAM 5: CX Technology, MIT Sloan Management, 09-092
-TEAM 6:E-commerce at Yunnan Lucky Air, MIT Sloan Management, 08-076
-TEAM 7:Compsis at a Crossroads, MIT Sloan Management, 07-044
-TEAM 8:PPS.tv and China’s online Video distribution market, MIT Sloan Management, 08-074
Detailed Course Outline
All sessions are mandatory and essential parts of the overall course and learning.
Monday 10March 2014
Session 1 (09.45-11.15) Understanding Technological Change
Session Purpose
-Introducing the topic of technology strategy
-Understanding why technological change is an important aspect of corporate and business strategy
-Evaluating methods that help to understand technology change
Discussion Topics
-the usefulness of the S-curve
-limits of the S-curve
-determinants of technological performance
-natural limits of a technology and its consequences
-evolution of customer characteristics as technologies move along the S-curve
Session preparation
-Foster, R. “Timing technological transitions.” Technology in Society, Vol. 7. pp. 127-141(1985).
Session 2 & 3 (11.30-01.00) (02.30-04.00) The challenge of disruptive innovation
Session Purpose
-Understanding the concept and importance of disruptive innovation in a service sector environment
-Assessing the impact of disruptive innovation on established organizations
Discussion Topics
-The challenge of disruptive innovation for existing organizations
-The role of disruptive innovation in changing value propositions and sectors
Session preparation
-Bower, J. and Clayton, Christensen "Disruptive Technologies: Catching the Wave," Harvard Business Review, January-February 1995.
-Zopa. com (ECCH case)
Session 4 (04.15-05.45) Understanding Market Evolution
Session Purpose
-Understand why forecasting demand is important
-Evaluate different methods that are instrumental in forecasting demand
-Identify different groups of adopters of new technology products and services
-Understanding the “crossing the chasm” concept
Discussion Topics
-Shapes of adoption curves
-Reasons for different groups of customers to adopt a product
-The usefulness of different market forecasting techniques
Session preparation
-Linowes, J, S. “A summary of crossing the chasm.”
Session 5 (06.00-07.30) Selecting Innovation Projects
Session Purpose
-Understanding the need for and role of (product/service) innovation & technology strategy
-Understanding the difference between risk and uncertainty
-Learn how to reduce risk and uncertainty
Discussion Topics
-How does one develop a technology and (product/service) innovation strategy
-Can one reduce risk when going for breakthrough innovation
Session preparation
-Wheelwright, S. and Kim B. Clark (1992) Revolutionizing Product Development, Chapter 5 “Structuring the Development Funnel,” pp. 111-132.
-We've got Rhythm! Medtronic Corporation's Cardiac Pacemaker Business (HBS: N9-698-004)
Tuesday 11March 2014
Session 1 (09.45-11.15) Selecting Innovation Projects (continued)
Session 2 & 3(11.30-01.00) (02.30-04.00)Value Roadmapping
Session Purpose
-To provide a structured framework for mapping and exploring potential value streams based on the selected technology
-To support the process of managing technology for value in the firm, providing input to technology strategy, planning, and exploitation
- To support communication between technological and commercial functions in the business
Session preparation
-The bicycle of the future: technology planning in Biko
Session 4 & 5(04.15-05.45) (06.00-07.30) Benefiting from Innovation
Session Purpose
-Build understanding of the relative importance of appropriability and complementary assets over the industry lifecycle
-Assess a firm´s position in the industry value chain
-Comprehending the basics of patents, and other innovation protection mechanisms
-Understand how to capture value when innovation cannot be protected
Discussion Topics
-The effectiveness of patents to protect innovation
-The importance of key resources
Session preparation
-Teece, David J. "Capturing Value from Knowledge Assets: The New Economy, Markets for Know-How and Intangible Assets" California Management Review, 1998, Volume 40, No 3, Spring 1998, pp 55-78.
-Elio Engineering, Inc. Case I-1 from Robert Burgelman, C. Christensen, and S. Wheelwright (2009) Strategic Management of Technology and Innovation.” McGraw-Hill, pp. 13-31
Wednesday 12March 2014
Session 1& 2 (09.45 – 11.15) (11.30-01.00) Business Model Innovation and Organization Change
Session Purpose
-Understanding the fundamentals of business modeling
-Understanding the impact of business model change on established organizations
Discussion Topics
-What is a business model
-What would you rather have, a better technology or a better business model?
-New business models and change in internal management and organizational requirements
Session preparation
-M.J. Eyring et al., Jan.-Feb. 2011, “New business models in emerging markets.” Harvard Business Review
-Ducati (Italy) vs. Harley-Davidson (USA) Innovating business processes and managing value networks. Case Study 4 from TawfikJelassi and A. Enders (2008) Strategies for e-Business. Creating value through electronic and mobile commerce. FT Prentice Hall, pp. 343-355.
Session 3 & 4 (02.30-04.00)(04.15-05.45) Open and Collaborative Innovation
Session Purpose
-Explore the limits of the closed innovation model
-Discuss the underpinnings of the open innovation model
-Discuss different open innovation governance modes
-Examining how firms can generate value from collaborative innovation
Discussion Topics
-What are the sources of new ideas and technologies?
-Should firms collaborate to innovate?
-For which kinds of companies, sectors, would you recommend collaborative innovation?
-For which stages of the innovation process would you recommend collaboration?
-How would you approach collaboration?
Session preparation
-Koen, C. “Collaborative innovation in high-technology industries.” ISPIM, Conference paper, Barcelona, 2012.
Cases
Please read (in advance) one case per student group of the cases mentioned below.
-TEAM 1& 2:Koen, C. “Lunaris: Spin-off or Joint Venture?”
-TEAM 3 & 4:Koen, C. “Phenom: Collaborative Innovation with Supply Chain Partners.”
-TEAM 5 & 6: Koen, C. “CandelLed: Collaborative Innovation among SMEs”
-TEAM 7 & 8: Koen, C. “Fokker Elmo: How Partners from Analog Markets can help you protect your Position.”
Session 5 (06.00-07.30) Corporate Venture and Corporate Venture Capital
Session Purpose
-Designing the organization for different types of innovation
-Understanding the organizational challenges involved with different types of innovation
Discussion Topics
-Is there a best way to structure a company for innovation?
-Can large firms increase their innovativeness by tweaking organizational structure?
-Why do companies like Xerox invest in basic research?
-Do companies make money doing this, or not?
-Is engaging in corporate venturing a good idea for established firms? Is a company better off growing through acquisition?
-What processes does Xerox use to manage its spinoffs? How do these processes compare to how it manages its core business?
-If you were an entrepreneur would you want to be funded and supported by Xerox?
-If you were a Xerox employee would you want to go to a Xerox spinoff?
Session preparation
-Henry Chesbrough (2003) Open Innovation, Chapter 1 “Xerox PARC. Harvard Business School Press: pp. 1-19.
Cases
Please read (in advance) one case per student group of the cases mentioned below.
-TEAM 1, 2, & 3: Inxight: Incubating a Xerox technology Spinout. (HBS: N9-699-019).
-TEAM 4 & 5: Koen, C. “AMP AKZO LinLam Products: Incubating an AkzoNobel-AMP Venture.”
-TEAM 6, 7, & 8: Lucent Technologies: The future of the new ventures group (HBS: N9-601-102).
Thursday 13March 2014
Session 1(09.45 – 11.15) Corporate Venture and Corporate Venture Capital (continued)
Session 2 (11.30-01.00) Business Case Analysis of high-technology ventures: Getting ready
Session Purpose
-Understand strategic challenges in ventures and start-up companies
-Assess venture business models
Session preparation
Please read and prepare one case per team of the cases mentioned below. For your case, prepare a PowerPoint presentation, which needs to be handed in BEFORE, presenting, explaining the following:
1)Please describe the firm’s value proposition(s). How is it different from the competition?
2)Which market segment(s) are targeted?
3)Please assess and explain the company’s expansion strategy (product, geographic). What, in your opinion, is the best way(s) to expand? What factors did you consider to come to this choice?
4)Does the company have an invention, knowledge, or an idea that can beappropriated (protected) and how? Please explain your opinion on how the company deals with its appropriation possibilities.
5)Please explain your opinion on how the company captures value? Please use the concepts of Teece’s article (1998) to support your argument.
6)Please explain your opinion on how the company is organized in order to deliver the value it creates? Does it use partnerships? Are these chosen strategically? Are they well-managed?
Cases
-TEAM 1: Optima Environment SA: Turning a Wonder Tree into an Eco-business.
-TEAM 2: Electronic Arts in 2005: The next generation of convergence (HBS: SM-24D)
-TEAM 3: StubHub (A): January 2004 (HBS: SM-132A)
-TEAM 4:Pixim (A): August 2001 (HBS: SM-118A)
-TEAM 5: CX Technology, MIT Sloan Management, 09-092
-TEAM 6:E-commerce at Yunnan Lucky Air, MIT Sloan Management, 08-076
-TEAM 7: Compsis at a Crossroads, MIT Sloan Management, 07-044
-TEAM 8: PPS.tv and China’s online Video distribution market, MIT Sloan Management, 08-074
Session 3, 4, & 5 (02.30-04.00)(04.15-05.45) (06.00-07.30) Business Case Analysis of high-technology ventures: Presentations
These three sessions are dedicated to team presentations and discussion, lasting max. 30 minutes each, incl. 15 min. presentation and 15 min. discussion.
The goal is to learn from individual cases, from different sectors in different countries, as well as from the analyses of your fellow colleagues.
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