Strategic Management of Technology and Innovation

Transcription

1 INSTRUCTOR 陳家麟 (Chialin Chen) Room 410, College of Management Building 2 TEXTBOOK R.A. Burgelman, C.M. Christensen, and S.C. Wheelwright, Strategic Management of Technology and Innovation, McGraw Hill, 5th Edition, COURSE SCHEDULE Session Theme Case Reading 1 Introduction Part One Introduction Module 1: Exploring Innovations 2 Managing Disruptive Technological Change Ecton Inc. II-4, II-5, II-14 3 Technology S-Curve and Discontinuity II-3A, II-3B 4 Dominant Design and Technology Cycles Hybrid Vehicles II-2, Utterback Idea Generation through Creative Design Thinking III-2, III-6 6 New Product Innovation IV-2, IV-3 7 Guest Speech: Managing Intellectual Property Module 2: Executing Innovations 8 Organizing Innovation Teams and Processes Part Two Introduction 9 Organizing the Value Net Intel Brandenburger Integration, Collaboration, and Licensing I-1, II-6 11 Utilizing Omni-channel Strategy Amazon.com Accenture Guest Speech: Venture Capital and Knowledge Economy Module 3: Exploiting & Renewing Innovations 13 Strategic Thinking for Innovation Management I-3, I-4, Krishna Strategic Positioning and Branding Apple Inc. in 2012 Urban Barriers to Entry and Blue Ocean Strategy Kim Standards, Network Externalities, and Strategic Lock-in Google Inc. II-7, II-8 17 Project Presentations 18 Final Exam Page 1 of 8

2 OBJECTIVES 1. Understand the key concepts and practices for exploring, executing, exploiting, and renewing innovations. 2. Acquire knowledge and skills needed for managers and entrepreneurs whose goal is to play a leading role in innovation-driven firms. 3. Learn how to build an organization to successfully and repeatedly bring innovations to market. CLASS CONTRACT 1. Choose and fix your seat in classroom (based on the seat you choose in the second week) 2. Form your discussion group (3~5 students per group, totally 10 groups) 3. Participate actively, both in the class and in the group 4. Complete the case assignments and readings before coming to the class LEARNING MATERIALS Cases Case 1. Disruptive Technology a Heartbeat Away: Ecton Inc. Case 2. The Future of Hybrid Electric Vehicles Case 3. Intel Incorporation, Case 4. Amazon in 2014 Case 5. Apple Inc. in 2012 Case 6: Google Inc. Each group is expected to submit a case report (totally 6 case reports for the semester) for each case above. The case report should not exceed two pages (not including the appendices). Each group will present ONE case (allocation of the case presentation will be determined in class). Each group presents 15 minutes for the case FINAL TERM PROJECT Each group is expected to do a final term project and present the work based on a venture proposal or the creation of an actual venture (e.g., iphone App; ebay etsy, or Amazon webstore business). The purpose of the final term project is to give you an opportunity to develop an actionable venture proposal that can potentially be submitted to a plan competition or, ideally, can serve as the basis of an actual venture. The venture plan should be no longer Page 2 of 8

3 than twelve (12) double-spaced pages of text written in 12-point font with 1-inch margins throughout. You may include up to ten (10) additional pages of graphics, charts, pictures, or tables as appendices. The venture plan should include the following major elements: (I) Executive Summary, (II), Value Proposition, (III) Business Model, (IV) Market and Competition, (V) Risk and Uncertainty, (VI) Financial Prospects, and (VII) Implementation Timeline. GRADING POLICY Class participation 15% Case reports (5% each case) 30% Project Presentations 15% Project Report 20% Final exam 20% COURSE DETAILS Session 1 Introduction 1. Reading: I-3, I-4 Module 1 Exploring Innovations Session 2 Managing Disruptive Technological Change 1. Reading: Part One Introduction (Pages 1-12) 2. Case 1: Disruptive Technology a Heartbeat Away: Ecton Inc. This case describes an innovating start-up company with a disruptive technology to the large, expensive echocardiography machines that leading cardiologists use to create images of heart functions for diagnostic purposes. Ecton's machine is small, cheap, portable, and can't create images as clear as those that large, expensive instruments can make. The entrepreneur is searching for a market for his product, and wonders whether he should sell out or try to build a successful commercial organization. 3. In-class video: Christensen on Disruptive 1. How does the Ecton machine differ from the existing technology in the market? What Page 3 of 8

4 attributes/features does it have that are similar to the conventional machines? What attributes/features are different? 2. Is the Ecton machine a sustaining or disruptive technology? 3. Where is Ecton positioning itself in the current ultrasound imaging marketplace? 4. What should be Ecton s Phase IV plan? Session 3 Understanding Technology S-Curve 1. Reading: II-3A, II-3B 2. Short-case: The Development of Modern Word Processers Personal information due Session 4 Dominant Design and Technology Cycles 1. Reading: II-2, Utterback Case 2: The Future of Hybrid Electric Vehicles Set in 2002, this case looks at the potential for hybrid electric vehicles in the United States. Looks at the pressures on the automotive industry to produce a commercially viable, environmentally friendly vehicle and the consumer behavior surrounding purchase of those vehicles. Traces efforts over the years to produce electric vehicles, hybrid electric vehicles, and fuel-cell vehicles. Presents the questions of whether and why hybrid electric vehicles will succeed where other alternative-fuel vehicles have failed. 3. In-class video: The Development of Toyota Prius 1. Is the hybrid technology a disruptive technology, sustaining technology, and/or dominant design? 2. What strategies did Toyota use to develop and promote hybrid vehicles? 3. Why did GM and Ford eventually decide to develop hybrid vehicles given their original plan to pursue the fuel-cell technology (which is generally considered more advanced than the hybrid technology)? 4. What would be the next dominant design in the market of alternative fuel vehicles? Page 4 of 8

5 Session 5 Idea Generation through Creative Design Thinking 1. Reading: III-2, III-6 2. In-class video: Design Thinking: Training Yourself to Be More Creative Session 6 New Product Innovation 1. Reading: IV-2, IV-3 2. In-Class Exercise: Developing Products on Internet Time Session 7 Guest Speech: Managing Intellectual Property The guest speech on Managing Intellectual Property is tentatively scheduled to be delivered by Mr. Vincent Shih (LLM, MBA), who is the Chief Legal Officer at Microsoft Taiwan Corporation. Module 2 Executing Innovations Session 8 Organizing Innovation Teams and Processes 1. Reading: Part Two Introduction (Pages ) Session 9 Organizing the Value Net 1. Reading: Brandenburger Case 3: Intel Incorporation, This case describes three stages in Intel's history: the initial success and then collapse in DRAMs and EPROMs, its transition to and dominance in microprocessors, and its move to become the main supplier of the building blocks for the Internet economy. Allows a rich discussion of industry structure and transformation in DRAMs and microprocessors, creation of competitive advantage and value capture, and sustainability. 3. In-class video: Intel Inside Page 5 of 8

6 1. What was Intel s strategy in DRAMs? What accounts for Intel s dramatic decline in market share in the DRAM market between 1974 and 1984? To what extent was Intel s failure a result of its strategy? 2. What strategy did Intel use to gain a competitive advantage in microprocessors? What threats has Intel faced in sustaining its competitive advantage in microprocessors and what strategies have been used to deal with each? 3. Why has Intel been able to sustain its advantage in microprocessors, but not in DRAMs? 4. Access the future prospects of Intel. What is the biggest threat it faces? Whom should it be most worried about? What strategies can be used to deal with these threats? Session 10 Integration, Collaboration, and Licensing 1. Reading: I-1, II-6 2. Short-case: Apple-Foxconn Value Chain Session 11 Utilizing Omni-channel Strategy 1. Reading: Accenture Report Case 4: Amazon in 2014 By 2013, Amazon had become one of the world's largest e-commerce players with over $60 billion in annual sales. Although its profitability had been uneven even after 18 years since its inception, its stock price had risen almost 17,000% since the company went public. During this time Amazon has spread its business across a variety of products and services that some see as unrelated. Was Amazon spreading itself too thin or were its investments positioning the company for the future? 3. In-class video: Inside Amazon: Secrets of an Online Mega-Giant 1. Discuss the main reason why Amazon has spread its business across a variety of products and services? 2. Describe Amazon s omni-channel retailing strategy? 3. Justify Amazon s strategic move toward the omni-channel retailing strategy. 4. What challenges Amazon is likely to face when implementing its omni-channel retailing strategy? Page 6 of 8

7 Session 12 Guest Speech: Venture Capital and Knowledge Economy The guest speech on Venture Capital and Knowledge Economy is tentatively scheduled to be delivered by Dr. Wei Lo, who is a Senior Manager at Fubon Financial Holding. Module 3 Exploiting and Renewing Innovations Session 13 Strategic Thinking for Innovation Management 1. Reading: I-3, I-4, Krishna 1987 Session 14 Strategic Positioning and Branding 1. Reading: Urban Case 5: Apple Inc. in 2012 On October 5, 2011, Steve Jobs tragically died of cancer. The recently retired CEO of Apple Inc. was a legend: he had changed Apple from a company near bankruptcy to one of the largest and most profitable companies in the world. Moreover, he had revolutionized several industries in the process, including music, phones, and computer tablets. The 'Apple Inc. in 2012' case explores Steve Jobs' successes and the challenges facing his successor, Tim Cook. Could Cook continue to revitalize the Macintosh? With ipod sales declining for four straight years, would Cook be able to continue the iphone's dominance of smartphones in the face of growing competition from companies such as Google and Samsung? Would Apple's newest creation, the ipad, continue to dominate the tablet market, or would the new competitors, ranging from Amazon to Samsung, steal, share and drive down profits? And could Apple thrive with Tim Cook rather than Steve Jobs at the helm? 1. Historically, what were Apple s major competitive advantages? 2. Analyze the market structures of smartphones and tablet computers over the last 10 years. How have the dynamics of the industries changed? 3. Evaluate Apple s strategies since Propose Apple s strategies moving into the next 10 years. Page 7 of 8

8 Session 15 Barriers to Entry and Blue Ocean Strategy 1. Reading: Sutton 1998, Kim Short-case: The Changing Markets of Microprocessors and Memory Chips 3. In-Class Video: Blue Ocean Strategy and the World Session 16 Standards, Network Externalities, and Strategic Lock-in 1. Reading: II-7, II-8 2. Case 6: Google Inc. The case describes Google's history, business model, governance structure, corporate culture, and processes for managing innovation. It reviews Google's recent strategic initiatives and the threats they pose to Yahoo!, Microsoft, and others. It also asks what Google should do next. One option is to stay focused on the company's core competence, i.e., developing superior search solutions and monetizing them through targeted advertising. Another option is to branch into new arenas; for example, build Google into a portal like Yahoo! or MSN; extend Google's role in e-commerce beyond search, to encompass a more active role as an intermediary (like ebay) facilitating transactions; or challenge Microsoft's position on the PC desktop by developing software to compete with Office and Windows. 1. Analyze the market structure of online search engines. What are Google s major strengths and potential weaknesses? 2. What were the underlying factors which led to Google s success in 2000s? 3. Evaluate Google s strategies since Propose Google s strategies moving into the next 10 years. Session 17 Term Project Presentations Session 18 Final Examination The final exam will be an in-class written exam. Page 8 of 8