TechnologyInnovationandStrategy ENG565 Instructor:SanjivChopra Email:sanjivc@illinois.edu CourseWebsites: Online: http://online.engr.uiuc.edu/webcourses/eng565 Netfiles: https://netfiles.uiuc.edu/sanjivc/GE598IS TECWebsite: www.tec.uiuc.

edu

GE598ISTECHNOLOGYINNOVATIONANDSTRATEGY

CourseSyllabus Preparedby:SanjivChopra
INTRODUCTION This course is designed to help students develop strong conceptual foundations for understanding technological innovations. It will introduce concepts and frameworks for analyzing how firms can create, commercializeandcapturevaluefromtechnologybasedproductsandservices.Itwillalsohighlightwhy somefirmsthathavesuccessfullycommercializedtechnologyproductsasanewentrant,failtosustaintheir successastechnologychangesandevolvesaroundthem. KEYCONCEPTS 1. Technologicalinnovationandbusinessstrategy.Howdoinnovatingfirmsextracteconomicreturns fromaninnovationandwhataresomeofthebarrierstoit?Introducetheideasofbusinessstrategy, corecompetence,andindustryanalysisaimedatunderstandingwaystocapturethebiggestsliceof the value that is generated. In addition to the traditional ideas of strategy the importance of fostering dynamic firm capabilities in environments of rapid technological change will also be introduced. 2. Disruptive Innovation. Christensens disruptive innovation framework helps explain why successful companies often lose out in the face of disruptive innovation. Too often successful companiesintroducenewproductswhoseperformanceovershootsmarketneed.Theydothisvia sustaininginnovations,insearchofhighermarginsandtokeepcurrentcustomerhappy.Theyoften engage in sustaining innovation at the expense of developing disruptive products that have lower performanceandcheaperbuttargetemergingmarketswithhighgrowthpotential. 3. Technologyevolutionanddominantdesign:Intheearlystagesofindustrydevelopment,product designsareinastateofflux.Atsomepointafterconsiderabletrialanderrorinthemarketplacea designemergesthatmeetsawholesetofuserneedsinarelativelycompletefashion.Thisiscalled thedominantdesign,whichbyitsverynatureisproductdefining.Nooneaskswhetheracarhasa steering wheel or electric wipers! Once a dominant design emerges, the dynamics of competition change dramatically from the fluid phase to competition focused on price, quality and some differentiationleadingcompaniestofocusondifferenttypesofactivities. 4. Crossingthechasm.Technologyideasdontoftenfailtotransitionfromapromising,nascentearly adopterphasetomassmarket.Thegapbetweenthesetwophasesiscalledthechasm.Whatisthe secret to crossing the chasm? Identify a single beachhead (product application) of pragmatist customersinamainstreammarketsegmentandacceleratetheformationof100%oftheirwhole product needs. The typical product development prioritization process usually results in new features(something)foreveryone,butacompletesolutionfornoone. 5. ThetechnologySCurve.SCurveisausefulframeworkdescribingthesubstitutionofnewforold technologiesattheindustrylevel.AccordingtotheScurve,inearlystagesofatechnologytherate of progress in performance is relatively slow. As the technology becomes better understood, controlled,anddiffused,therateoftechnologicalimprovementincreases.Initsmaturestages,the technologywillasymptoticallyapproachanaturalorphysicallimit.TheScurveframeworkcanbe usedinbothcomponentaswellasarchitecturalleveltechnologydevelopment.

6.

Leaduserresearch.Leadusersarenotthesameasearlyadopters.Theyhaveaspecificneedand theyactuallyadopt,orchangetheproducttofittheirneeds.Awealthofinformationpertainingto product development resides in lead users. However it is not easy to find them and there are challengesinusingthismethodology. Networkexternalitiesandstandards:AdoptionofnewtechnologymaybeinfluencedbyNetwork Effects (the utility derived from the consumption of a service/good for a given user of a network depends upon the number of other users on the same network). Various consumer applications (Web,mobile,andcommunity)oftenexhibitpositivenetworkexternalities.Firstmoveradvantage, assembling allies, and availability of complementary products can help establish technology standardsinmarketwithstrongnetworkeffects.

7.

COURSEOBJECTIVES Throughcasestudies,astudentproject,andseveralanalyticalframeworksexploredinclass,thiscourseaims to equip students with a broad perspective on the central issues involved in innovation throughout the productlifecycle.Itaimstohelpstudentsbecomeevenbetterleadersoftechnologyandinnovation. COURSEMATERIALS REQUIRED: ENG565CoursePacket AdditionalreadingsandHarvardBusinessSchoolcaseswillbehandedoutthroughoutthesemester. REFERENCES: InnovatorsDilemma,ClaytonM.Christensen,2003,ISBN0060521996 CrossingtheChasm,GeoffreyA.Moore,2002,ISBN0060517123 StrategicManagementofTechnology&Innovation,Burgelman,Christensen,andWheelwright,Fourth Edition2004,ISBN0072536950 REQUIREMENTSANDGRADING ONCAMPUSSTUDENTS: Contacthours: One100minutelecturediscussionperweek.A100minutesessioniscountedas2contacthour.Thus,there are2contacthoursperweekx14weeks=28totalcontacthours. Grades: Gradesfor oncampus students will be determinedon the basisof attendance/class participation, midterm examandafinalgroupproject. 1.Classparticipation: Heavyemphasiswillbeplacedonclassattendanceandactive,thoughtfulclassroomparticipation. Whatdoesthatmean?Allstudentsareexpectedtohavecompletedeachsessionsreadings,andhave prepared an analysis of the issues raised in each case without exception. In evaluating classroom participation, I look for students who clearly articulate their analysis, back up their views with any relevantfacts,andmovetheanalysisforward.

2.Midterm: Therewillbea90minutemidtermexam(closedbook,closednotes).Thiswillconsistofasetofshort answerquestionsand/orshortcasestoberead,analyzed,andturnedinattheendoftheperiod. 3.Groupproject: Studentswillalsoberequiredtofinishagroupproject.Thesewillconsistofstudentsingroupsofthree orfour,exploringatopicrelatedtothedynamicsoftechnicalinnovation.Thefinaldeliverableforthe groupprojectwillbea15minuteincclasspowerpointpresentationandsubmissionofthepowerpoint slidesforgrading.Thegrouppresentationwillbe15minutesindurationandwillbefollowedby510 minutes of Q&A. I may also ask each participant to evaluate the contribution of the other group members(peerreview). Gradesforoncampusstudentsaredeterminedasfollows; Attendance Classparticipation Midtermexam Groupproject 10% 20% 40% 30%

ONLINESTUDENTS(DISTANCELEARNERS): Contacthours: Two50minutevideolecturesperweek.A50minutesessioniscountedas1contacthour.Thus,thereare2 contacthoursperweekx14weeks=28totalcontacthours. Grades: Gradesforonlinestudentswillbedeterminedonthebasisofhomeworkassignments,midtermexamanda finalprojectthatistobecompletedeitherindividuallyoringroups. 1.Homeworkassignment: Onlinestudentsareexpectedtocompleteeachsessionsreadingbeforeviewingtheclassvideoinorder to get the most benefit from the course material. Students will be expected to complete homework assignment covering content each major module of the course. These assignments have to be done withoutreferringtotheclassnotesorreadings(closedbook,closednotes). 2.Midterm: Therewillbea90minutemidtermexam(closedbook,closednotes).Thiswillconsistofasetofshort answerquestionsand/orshortcasestoberead,analyzed,andturnedinattheendoftheperiod. 3.Individual/Groupproject: Onlinestudentswillalsoberequiredtocompleteanindividualoragroupproject.Thiswillconsistof student(s)exploringatopicrelatedtothedynamicsoftechnicalinnovation.Youwillberequiredtoturn ina1012pageswrittenreportwithyouranalysisandrecommendations. Gradesforonlinestudentsaredeterminedasfollows; Homeworkassignments(12pagewriteups) 30% Midtermexam 40% Groupproject/Individualproject 30% 4

 GROUP/INDIVIDUALPROJECT Workingingroupsofthree(oncampusstudents),orindividually(onlinestudents)youwillexploreatopic ofparticularinterestrelatedtothemanagementoftechnologyandinnovation. Projectoptionsinclude: Analyze a contemporary (or anticipated near future, 05 year) disruptive innovation, and present action plan(s) for one or more key players involved (Music and video distribution over the web, IPTV, Inorganic semiconductors, hybrid automobiles, Active suspension technologies, Alternative Energy, Mashups, WiMax, Mobile TV streaming, Online education, Online peer to peer lending, etc.) Otheroptionsthattiedirectlytothecoursematerial Above all else, I want this project to be directly relevant, interesting and beneficial to you. As such, I am prepared to give considerable topic leeway, provided you establish a direct connection to the topics presentedbythecourseinbothyourproposalandfinaldeliverables.Forinstance,ifyouhaveanideafora new process or product innovation in a new firm or within an existing entity, and want to use this as an opportunitytoexploreandfurtherrefineit,byallmeansdoso. Therearethreedeliverablesforthisproject: a. Short12pageproposal. b. Writtenreport(approximately1012pagesinlength)foronlinestudents c. Powerpointpresentationforoncampusstudents.

ABOUTTHEINSTRUCTOR Sanjiv Chopra has worked in the technology industry in various Engineering and Management roles for overthirteenyears.Since2005,asEntrepreneurinResidenceintheCollegeofEngineeringattheUniversity of Illinois, Chopra has taught two popular graduate courses titled Technology Innovation and Strategy andVentureFundedStartups.AsapracticingentrepreneurChopraprovidesabalancedunderstanding ofstrategicandtacticalissuesthatconfrontengineersandentrepreneursindesigningandcommercializing technologybasedproducts. Chopra currently serves as a Senior Director of Industry Strategy in the Industries Business Unit (IBU) at Oracle Corporation where he advises potential clients on the business benefits of technologyenabled transformations. Chopra has also served in key management roles and advisory board of several venture fundedtechnologystartups.From2006until2008,Chopraservedasabusinessdevelopmentexecutivefor Xelerated, Inc. Xelerated is a Communications Processor company funded by preeminent venture capitalists,includingAccelPartners,SwedenbasedA/PFund.From2001untilJanuary2006Chopraserved astheChiefOperatingOfficerofIntersymbolCommunications.Intersymbolisaventurebackedtechnology company developing disruptive, mixed signal integrated circuits for optical communications industry. Intersymbol was acquired by Finisar Corporation (NASDAQ: FNSR) in March 2006. Prior to Intersymbol Chopra was the Vice President of Business Development for CapacityWeb, Inc, a venture backed supply chain software and technology provider. From 19911997 he worked in Silicon Valley, California for IntegratedDeviceTechnology(NASDAQ:IDTI)designinganddevelopingsemiconductorintegratedcircuits for the personal computer and communications industry. Chopra has also worked as a management consultantatBooz,Allen&Hamilton,apremiermanagementconsultingfirm. ChopraholdsaB.S.inElectricalEngineeringfromBIT,India,aMasterofSciencedegreeinElectrical EngineeringfromIowaStateUniversity,andanMBAfromNorthwesternUniversity,Evanston,IL.

LECTURETOPICSANDREADINGLISTFORONCAMPUSSTUDENTS WEEK1:COURSEOVERVIEWANDINTRODUCTIONTOKEYCONCEPTS READING: 1. PeterF.Drucker,TheDisciplineofInnovation,HarvardBusinessReview,NovemberDecember 1998. 2. ClaytonChristensen,MichaelOverdorf,MeetingthechallengeofDisruptivechange,Harvard BusinessReview,Vol.78,Issue2,Mar/Apr2000. WEEK2ANDWEEK3:DISRUPTIVEINNOVATIONANDMANAGINGTECHNOLOGICAL TRANSITIONS READING: Week2 1. SanjivChopra,ChooseToDisrupt,SiliconIndiaMagazine,May2007. 2. RememberLowlyMemoryChips?TheyreBackChangingIndustries,WallStreetJournal,2005. 3. ClaytonChristensen,MattVerlinden,Disruption,DisintegrationandtheDissipationof Differentiability,IndustrialandCorporateChange,Volume11,November5,2002pp.955993. (SKIPSECTIONS:4.1,4.2,4.4,4.6,5.1,5.2,5.4). 4. ClaytonChristensen,JosephBowerCustomerpower,strategicinvestment,andthefailureof leadingfirms,StrategicManagementJournal,March1996,Volume17,Issue3. Week3 1. ClaytonChristensen,et.al,InnovationKillers:HowFinancialToolsDestroyYourCapacityToDo NewThings,HarvardBusinessReview,Jan2008. 2. JamesUtterback,HappyAceeNanotechnology:Adisruptivetechnology?MITWorkingpaper, 2002. 3. HendersonandClark,(1990),ArchitecturalInnovation:TheReconfigurationofExistingProduct TechnologiesandtheFailureofEstablishedFirms,AdministrativeScienceQuarterly35.1990pp.9 30. 4. SanjivChopra,FocusOnArchitecturalInnovationSiliconIndiaMagazine,June2007. CASE: ContinuousCastingatUSXCorporation WEEK4ANDWEEK5:CROSSINGTHECHASM READING: Week4 1. GeoffreyMooreCrossingtheChasmandbeyond,pp362368,StrategicManagementof Technologyandinnovation,4thedition,RobertBurgelman,et.al. 2. GeoffreyMoore,CrossingtheChasm,HarperCollins:NY,pp.1225,3083 Week5 3. GeoffreyMooreDarwinandtheDemon,HarvardBusinessReview,July/Aug2004 CASE: Documentum,Inc. 7

WEEK6ANDWEEK7:INTRODUCTIONTOSTRATEGY READING: Week6 1. Porter,Michael(1996),WhatisStrategy?HarvardBusinessReview,November1996pp.6178. Volume74Issue6 2. Prahalad,C.K.andHamel,Gary(1990),TheCoreCompetenceoftheCorporation,Harvard BusinessReview1990.Volume68Issue. 3. MichaelPorter,TheFiveCompetitiveForcesThatShapeStrategy,HarvardBusinessReview,Jan 2008. 4. ClaytonChristensen,ScottAnthonySolvingtheDilemmasofGrowth,StrategyandInnovation, July2003. 5. Honda,inaFunk,TriestoRevivetheCivicsVirtues,WallStreetJournal,2005 6. ForU.S.Airlines,AShakeoutRunsIntoHeavyTurbulence,WallStreetJournal,2005 7. Optional:RobertS.Kaplan,DavidP.Norton,MasteringTheManagementSystem,January2008. PROJECTPROPOSALSDUE: Dueinclass:Onepageproposalforfinalprojectandidentificationofteammembers. Week7 READING: Strategyissuesinenvironmentsofrapidtechnologicalchange 1. DavidJ.Collis,CynthiaA.Montgomery,CompetingonResources,HarvardBusinessReview,July 2008. 2. DavidTeece,GaryPisano,AmyShuen,DynamicCapabilitiesandStrategicManagementStrategic ManagementJournal,Vol.18:7,1997. 3. KathleenM.Eisenhardt,DonaldN.Sull,Strategyassimplerules,HarvardBusinessReview,Jan 2001. CASE PowerPlay(A):Nintendoin8bitVideoGames WEEK8ANDWEEK9:TECHNOLOGYEVOLUTION READING: Week8 TechnologyEvolutionandDominantDesign 1. Utterback,James(1994),Dominantdesignsandthesurvivaloffirms.Chapter2inMasteringthe DynamicsofInnovation,HarvardBusinessSchoolReviewPresspp.2355andpp.79102 2. SanjivChopra,InPursuitofDominantDesign,SiliconIndiaMagazine,March2007. 3. AsHybridCarsGainTraction,IndustryBattlesOverDesigns,WallStreetJournal Week9 SCurvesforcomponentandarchitecturaltechnologies 4. ClaytonChristensen,ExploringthelimitsoftheTechnologySCurve.PartI:Component Technologies.JournalofProductionandOperationsManagement1,no.4(Fall1992) 5. ClaytonChristensen,ExploringthelimitsoftheTechnologySCurve.PartII:Architectural Technologies.JournalofProductionandOperationsManagement1,no.4(Fall1992) CASE: HewlettPackardsMercedDecision 8

WEEK10:MIDTERMEXAM WEEK11:PROFITINGFROMTECHNOLOGYINNOVATION READING: 1. Teece,DavidProfitingfromTechnologicalInnovation:ImplicationsforIntegration,Collaboration, Licensing,andpublicpolicy.ResearchPolicy15,no.6(Dec.1986):pp.185219.Volume16. CASE: AbgenixandtheXenomouse WEEK12:LEADUSERRESEARCH READING: 1. StefanThomke,AshokNimgade,NoteonLeadUserResearchpp794800,StrategicManagement ofTechnologyandinnovation,4thedition,RobertBurgelman,et.al. 2. GotaBetterLetterOpener,WallStreetJournal,July2006. 3. ClaytonChristensen,ScottCook,TaddyHall,MarketingMalpractice:TheCauseandtheCure, HarvardBusinessReview,December2005. CASE: Innovationat3MCorporation(A) WEEK13:STANDARDSANDNETWORKEXTERNALITIES READING: 1. Shapiro,C.andH.Varian(1999).TheartofStandardsWars,CaliforniaManagementReview,41(2): pp.832. 2. ThomasEisenmann,GeoffreyParker,MarshallW.VanAlstyne,StrategiesforTwoSidedMarkets HarvardBusinessReview,October2006. 3. David,(1985),ClioandtheEconomicsofQWERTY,AmericanEconomicReview.Vol75,No.2, May1985.pp.332337. 4. PekkaRantasaarri,NetworkEffectsandAdoptionofnewTechnology,HelsinkiUniversityof Technology. CASE: AdobeSystemsIncorporated WEEK14:GROUPFINALPRESENTATIONS

PREPARATIONQUESTIONSFORINCLASSDISCUSSION(ONCAMPUSSTUDENTS) Disruptiveinnovation: 1. Whydomostlargesuccessfulcompanieslosetheabilitytoentersmallemergingmarkets? 2. Whyareestablishedfirmsbetterpositionedtointroducesustaininginnovationsasopposedto disruptiveinnovations? 3. Howcanalargecompanydevelopnewcapabilitiestoembraceandinitiatedisruptivechange? 4. Whyareverticallyintegratedfirmsgenerallydominantattheearlystagesofanindustry? 5. Whatgivesrisetomoveawayfromverticalintegrationtospecialization(ordisintegration)? 6. Howdoesthelocusofprofitsshiftsatvariousstagesofanindustrysevolution? CrossingtheChasm: 1. Whatisthetechnologyadoptionlifecycle? 2. Whatistherecommendedhightechnologymarketingstrategy? 3. Whatistheproblemofthisstrategy? 4. Whatisthemainreasonthatcompaniescannotovercomethechasm,andtherecommended approachtocrossthechasm? INTRODUCTIONTOSTRATEGY Basicstrategy: 1. WhyisOperationalEffectivenessalonenotsufficienttoachievesuperiorprofitability? 2. Whatarethethreekeyelementsthatdrivecompetitiveadvantagethroughstrategy? 3. Whatisthegrowthtrapandwhatarethewaystoavoidthetrap? 4. Whatarecorecompetenciesandhowdoyouidentifysomethingascorecompetence? FiveForces: 1. DiscussPortersfiveforcesthatdeterminecompetitioninanindustry? Strategyinenvironmentsofrapidtechnologicalchange: 1. Whatisthealternativeviewofstrategyinhighvelocitymarkets? TECHNOLOGYEVOLUTION DominantDesign 1. Whatisadominantdesign?Howisitestablished? SCurve 1. HowdoesdominantdesignrelatetotheScurve? 2. WhenisanScurveanalysishelpful,andhowshoulditbeused? PROFITINGFORMTECHNOLOGYINNOVATION 1. Whataresomeoftheelementsthatdeterminewhetherornottheinnovatorwillreceive significanteconomicreturnsfrominnovation? 2. Howdoestherelativeimportanceofappropriabilityandcomplementaryassetschangeoverthelife cycleofanindustry? 3. WhatistherelationshipbetweenTeecesconceptofcomplementaryassetsandbarrierstoentry asdefinedbyPorter? MANAGINGTECHNOLOGICALTRANSITIONS 1. HowisthephenomenaoutlinedbyChristensenrelatedtoFostersScurve? 2. WhatdeterminesthesuccessorfailureofincumbentfirmsinHendersonClark? 10

TECHNOLOGYMARKETING:CROSSINGTHECHASM,LEADUSERRESEARCH 1. Whatisthechasm?Howdoyouknowyouareinachasm? 2. Whattechniquesdoestheauthorrecommendforchasmmanagement? STANDARDSANDNETWORKEXTERNALITIES 1. Howdostandardsandnetworkexternalitiesaffecttechnologicalcompetition? 2. Whataretradeoffsfacedbymanagersinsuchmarkets?

11

PREPARATIONQUESTIONSFORINCLASSCASEDISCUSSION(ONCAMPUSSTUDENTS) PowerPlay(A):Nintendoin8bitVideoGames 1. NintendosuccessfullyrecreatedthehomevideogamebusinessfollowingtheAtarieraboomand bust.Howdiditdoso? 2. HowwasNintendoabletocapturevaluefromthehomevideogamebusiness? HewlettPackardsMercedDecision 1. DoesthemarketneedtheMercedchip? 2. WhowillbenefitthemostfromtheintroductionoftheMercedchipinthemarketsservedbyESG? Whowillbenefitleast,andwhy? 3. WhatshouldJimDavisrecommend? AbgenixandtheXenomouse 1. DoesPharmacolorBioPartrepresentabetterwaytogoforAbegenix?Why? 2. WhatshouldScottGreerdo? a. GoitalonethroughtheendofphaseIItrials? b. SignwithPharmacol? c. SignwithBiopart? d. Somethingelse? ContinuousCastingatUSXCorporation 1. DoyouthinkKappmeyershouldsigntheproposal,andwhy? Documentum,Inc. 1. WhatdidDocumentumlearnfromitsexperiencewiththefirsttwocustomers? 2. ShouldDocumentumaccepttheMarshandMcLennandeal? 3. WhatisyourreactiontoMooresmethodofselectingthetargetmarket? 4. Whatisthedifferencebetweenahorizontalandverticalstrategy? Innovationat3MCorporation(A) 1. HowdoesLeaduserresearchprocessdifferfromandcomplementothertraditionalmarketresearch methods? 2. HastheMedicalSurgicalteamappliedtheleaduserresearchprocesssuccessfully?Whyorwhy not? 3. Whataretheriskstothenewleaduserprocessat3M? AdobeSystemsIncorporated 1. HowwasPostscriptestablishedasadefactostandard?HowdidAdobemakemoneyfrom Postscript,despiteitbeinganopenstandard? 2. WhichfirmiscurrentlyinastrongerpositiontocontroldefactostandardsintheeBookspace: AdobeorMicrosoft? 3. WhatshouldAdobedo?Howcantheywinthestandardswar?ShouldtheyfocusoneDocsor eBooks?WilltheeBooksmarkettiporwilltherebemultiplestandards?HowcanAdobemake moneyinthismarket?

12

LECTURETOPICSANDREADINGLISTFORONLINESTUDENTS Youmustcompletethehomeworkafterreadingtheassignedreadingand/orcasebutpriortoviewingthe lecturevideoforthattopic.PleaseconsulttheviewingscheduleontheVideoLecturespage. WEEK1:COURSEOVERVIEW READING: 1. PeterF.Drucker,TheDisciplineofInnovation,HarvardBusinessReview,NovemberDecember 1998. WEEK2:INTRODUCTIONTODISRUPTIVEINNOVATION READING: 1. ClaytonChristensen,MichaelOverdorf,MeetingthechallengeofDisruptivechange,Harvard BusinessReview,Vol.78,Issue2,Mar/Apr2000. 2. ClaytonChristensen,MattVerlinden,Disruption,DisintegrationandtheDissipationof Differentiability,IndustrialandCorporateChange,Volume11,November5,2002pp.955993. (SKIPSECTIONS:4.1,4.2,4.4,4.6,5.1,5.2,5.4). 3. SanjivChopra,ChooseToDisrupt,SiliconIndiaMagazine,May2007. WEEK3:INTRODUCTIONTOCHASMANDSTRATEGY READING: 1. GeoffreyMooreCrossingtheChasmandbeyond,pp362368,StrategicManagementof Technologyandinnovation,4thedition,RobertBurgelman,et.al. 2. Porter,Michael(1996),WhatisStrategy?HarvardBusinessReview,November1996pp.6178. Volume74Issue6 3. Prahalad,C.K.andHamel,Gary(1990),TheCoreCompetenceoftheCorporation,Harvard BusinessReview1990.Volume68Issue. WEEKS4:STRATEGY READING: 1. MichaelPorter,TheFiveCompetitiveForcesThatShapeStrategy,HarvardBusinessReview,Jan 2008. 2. DavidJ.Collis,CynthiaA.Montgomery,CompetingonResources,HarvardBusinessReview,July 2008. 3. DavidTeece,GaryPisano,AmyShuen,DynamicCapabilitiesandStrategicManagementStrategic ManagementJournal,Vol.18:7,1997. 4. KathleenM.Eisenhardt,DonaldN.Sull,Strategyassimplerules,HarvardBusinessReview,Jan 2001. 5. ClaytonChristensen,ScottAnthonySolvingtheDilemmasofGrowth,StrategyandInnovation, July2003. 6. Honda,inaFunk,TriestoRevivetheCivicsVirtues,WallStreetJournal,2005 7. ForU.S.Airlines,AShakeoutRunsIntoHeavyTurbulence,WallStreetJournal,2005 8. Optional:RobertS.Kaplan,DavidP.Norton,MasteringTheManagementSystem,January2008. WEEK5:STRATEGY&TECHNOLOGYEVOLUTION CASE PowerPlay(A):Nintendoin8bitVideoGames 13

READING: TechnologyEvolutionandDominantDesign 1. Utterback,James(1994),Dominantdesignsandthesurvivaloffirms.Chapter2inMasteringthe DynamicsofInnovation,HarvardBusinessSchoolReviewPresspp.2355andpp.79102 2. SanjivChopra,InPursuitofDominantDesign,SiliconIndiaMagazine,March2007. 3. AsHybridCarsGainTraction,IndustryBattlesOverDesigns,WallStreetJournal WEEK6:TECHNOLOGYEVOLUTION READING: SCurvesforcomponentandarchitecturaltechnologies 1. ClaytonChristensen,ExploringthelimitsoftheTechnologySCurve.PartI:Component Technologies.JournalofProductionandOperationsManagement1,no.4(Fall1992) 2. ClaytonChristensen,ExploringthelimitsoftheTechnologySCurve.PartII:Architectural Technologies.JournalofProductionandOperationsManagement1,no.4(Fall1992) CASE: HewlettPackardsMercedDecision WEEK7:PROJECTPROPOSALSDUE Aonepageproposalforfinalprojectandidentificationofteammembersisduethisweek. WEEK8:PROFITINGFROMTECHNOLOGYINNOVATION READING: 1. Teece,DavidProfitingfromTechnologicalInnovation:ImplicationsforIntegration,Collaboration, Licensing,andpublicpolicy.ResearchPolicy15,no.6(Dec.1986):pp.185219.Volume16. CASE: AbgenixandtheXenomouse WEEK9:MANAGINGTECHNOLOGICALTRANSITIONS READING: 1. RememberLowlyMemoryChips?TheyreBackChangingIndustries,WallStreetJournal,2005. 2. ClaytonChristensen,JosephBowerCustomerpower,strategicinvestment,andthefailureof leadingfirms,StrategicManagementJournal,March1996,Volume17,Issue3. 3. ClaytonChristensen,et.al,InnovationKillers:HowFinancialToolsDestroyYourCapacityToDo NewThings,HarvardBusinessReview,Jan2008. 4. JamesUtterback,HappyAceeNanotechnology:Adisruptivetechnology?MITWorkingpaper, 2002. 5. HendersonandClark,(1990),ArchitecturalInnovation:TheReconfigurationofExistingProduct TechnologiesandtheFailureofEstablishedFirms,AdministrativeScienceQuarterly35.1990pp.9 30. 6. SanjivChopra,FocusOnArchitecturalInnovationSiliconIndiaMagazine,June2007. CASE: ContinuousCastingatUSXCorporation 14

WEEK10:SPRINGBREAK WEEK11:CROSSINGTHECHASM READING: 1. GeoffreyMoore,CrossingtheChasm,HarperCollins:NY,pp.1225,3083 2. GeoffreyMooreDarwinandtheDemon,HarvardBusinessReview,July/Aug2004 CASE: Documentum,Inc. WEEK12:LEADUSERRESEARCH READING: 1. StefanThomke,AshokNimgade,NoteonLeadUserResearchpp794800,StrategicManagement ofTechnologyandinnovation,4thedition,RobertBurgelman,et.al. 2. GotaBetterLetterOpener,WallStreetJournal,July2006. 3. ClaytonChristensen,ScottCook,TaddyHall,MarketingMalpractice:TheCauseandtheCure, HarvardBusinessReview,December2005. CASE: Innovationat3MCorporation(A) WEEK13:MIDTERMEXAM WEEK14:STANDARDSANDNETWORKEXTERNALITIES READING: 1. Shapiro,C.andH.Varian(1999).TheartofStandardsWars,CaliforniaManagementReview,41(2): pp.832. 2. ThomasEisenmann,GeoffreyParker,MarshallW.VanAlstyne,StrategiesforTwoSidedMarkets HarvardBusinessReview,October2006. 3. David,(1985),ClioandtheEconomicsofQWERTY,AmericanEconomicReview.Vol75,No.2, May1985.pp.332337. 4. PekkaRantasaarri,NetworkEffectsandAdoptionofnewTechnology,HelsinkiUniversityof Technology. CASE: AdobeSystemsIncorporated WEEK15:ADOBESYSTEMSINCORPORATED WEEK16:FINALPROJECTREPORTSDUE

15

HOMEWORKASSIGNMENTFORONLINESTUDENTS Allonlinestudentsarerequiredtosubmittheirhomeworkassignmentbytheduedatementionedbelow. Thehomeworkmustbesubmitted(emailtotheinstructor)intheformofa12pageWordorAdobe document. Youmustcompletethehomeworkafterreadingtheassignedreadingand/orcasebutpriortoviewingthe lecturevideoforthattopic.PleaseconsulttheviewingscheduleontheVideoLecturespage. Homework#1Week2 1. Whydomostlargesuccessfulcompanieslosetheabilitytoentersmallemergingmarkets? Homework#2Week3 CaseContinuousCastingatUSXCorporation 1. DoyouthinkKappmeyershouldsigntheproposal,andwhy? Homework#3Week5 CaseDocumentum,Inc. 1. ShouldDocumentumaccepttheMarshandMcLennandeal? 2. WhatisyourreactiontoMooresmethodofselectingthetargetmarket? Homework#4Week6 1. WhyisOperationalEffectivenessalonenotsufficienttoachievesuperiorprofitability? 2. Whatarethethreekeyelementsthatdrivecompetitiveadvantagethroughstrategy? 3. Whatisthegrowthtrap?Whatdocompaniestypicallydowhentheyareinthegrowthtrap?How cantheyavoidthegrowthtrap? ProjectProposalsDueWeek6 Homework#5Week7 CasePowerPlay(A):Nintendoin8bitVideoGames 1.HowwasNintendoabletocapturevaluefromthehomevideogamebusiness? Homework#6Week9 CaseHewlettPackardsMercedDecision 1. DoesthemarketneedtheMercedchip? 2. WhatshouldJimDavisrecommend? Homework#7Week11 CaseAbgenixandtheXenomouse 1. WhatshouldScottGreerdoandwhy? Homework#8Week12 CaseInnovationat3MCorporation(A) 1. HowdoesLeaduserresearchprocessdifferfromandcomplementothertraditionalmarketresearch methods? 2. Whataretheriskstothenewleaduserprocessat3M? Homework#9Week13 16

CaseAdobeSystemsIncorporated 1. WhatshouldAdobedo?Howcantheywinthestandardswar?ShouldtheyfocusoneDocsor eBooks?WilltheeBooksmarkettiporwilltherebemultiplestandards?HowcanAdobemake moneyinthismarket?

17