This course is a survey course about the management of corporate innovation and technology commercialization processes. It is intended to provide the concepts needed to help today's managers deal with their high technology environments. This course is designed for the following audiences:
Primary Text: Burgelman, Robert A. and M.A. Maidique, Strategic Management of Technology and Innovation, Richard D. Irwin, 1996.
Case Packet: Cases will be available through the bookstore and/or on the Internet.
Course Objectives: This course is a survey course and, therefore, does not concentrate on any specific area of the technological or product development process. This is in contrast with functional or technology focused courses offered by other disciplines. In this course, objectives include the following:
Course Perspective: The course builds on the conceptual frameworks developed in Strategic Management. We will take on the perspective of various levels of general management (business, project, corporate) in the process of creating strategic change through technological innovation and entrepreneurship. We will examine the following range of activities at each level of management, how they interlock, and how they can be managed effectively.
At the business level, strategy formulation and implementation concerning technological innovation and internal entrepreneurship is intrinsically intertwined. Thus, our case discussions of various real life situations will require in-depth analysis to be complemented with specific action recommendations and a willingness to commit oneself to a specific course of action.
At the corporate level, strategic management in large, complex firms requires a continued effort at balancing concerns of coherence, continuity, and stability with concerns of creativity, renewal, and change in the firm's activities. The capability to live with these tensions and to invent creative approaches to deal with them is an increasingly important part of the general management task.
At the operating level, the innovative capability of firms depends on the effective utilization of the entrepreneurial energy of individual participants at lower and middle levels in the organization. We will look at the mechanisms through which this entrepreneurial energy can be activated, developed, and harnessed to achieve both greater long-term viability and effectiveness at the level of the firm, and greater professional success at the individual level.
Course Requirements: Students will be required to analyze three cases (30% of the grade) and make two reports on readings related to the course (20% of the grade). There will also be a term paper for the course (30% of the grade). Since this course is based on case discussions, class participation will account for 20% of the final grade.
Individual Case Reports (30%): Each individual will analyze and write up three cases. Each write-up will be a maximum of five pages, double spaced in normal 12 point typeface. Each case write-up will be due at the beginning of the class session in which it is discussed. Each case write-up will be worth 10 points each. Cases will be accepted early, but not after the class is taught. The typical case will be evaluated on the following criteria:
Video students will be required to turn in the case prior to reviewing the tape.
Readings (20%): Each individual will be required to present a selected chapter of the text. They will prepare a short summary of the chapter as a handout. One student will be selected to provide a 10-minute summary to the class. Video students will be required to complete one reading in each half of the course.
Term Project (30%): Students are expected to identify a technology driven industry and conduct a detailed analysis of their industry and its competitors. The term project will require (1) an industry analysis and (2) a strategic assessment of the industry leader(s). Students may select the industry in which they currently work or intend to work. The report will be evaluated as follows:
Individual Participation (20%): Students are expected to contribute to the discussion of each case. Students will be called upon to lead the discussion. Unprepared studetns will be penalized two points on their participation grade. Attendance is mandatory since most learing occurs during the case discussions. Two absenses will result in a one grade penalty, ie., a grade loss from A to B. Video students will be required to complete a two page summary of the questions relating to each case.
Course Outline: This course is divided into four major parts.
Each part has a set of cases and readings. The list of case questions are designed to help focus the
preparation for class, not for written case analysis.
The first part deals with the integration of technology and strategy. It raises one of the unique questions in this type of course, the question of what skills are required to successfully run a high-technology firm. It also raises the issue of how top management should integrate knowledge about the key issues relating to its technology with business and corporate strategy.
Session 1 (9/25):
Reading: Burgelman et al., Technology, Innovation, and Strategy: A General Management
Perspective, p. 1.
This session will be used to introduce the course and its requirements. The above reading provides
an overview to the course and its concepts.
Session 2 (9/30):
Case: Boulton, Metamorph (A)
2. What is the strategy of the Information Access Center?
3. How would you evaluate it?
4. What recommendations would you make?
This case describes the difficulty of an entrepreneurial start-up in developing a strategy for the application of Metamorph technology. The problem comes in selecting the application that is most likely to succeed given the limited resources of the founders.
Reading: Burgelman et al., Designing and Implementing a Technology Strategy, p. 33.
Session 3 (10/2):
Case: Boulton, Three Bond Corporation: Serving the customer
2. What is your evaluation of the its strategy? How successful is it? What problems are there?
3. What alternatives are available?
4. What do you recommend?
This case addresses the problem of selling technology, as compared to products. It is concerned with what products Three Bond might develop to spread its risks from petroleum based technology.
Readings: Burgelman et al., Collaborate with Your Competitors -- and Win, p. 592.
Session 4 (10/7):
Case: Burgelman et al., Advent Corporation (C), p. 45.
2. What are Advent's distinct technological competencies? Please construct a matrix showing the technologies embodied in the segments of the audio business. How does this compare to the video business?
2. How would you characterize Kloss' style as a general manager?
3. What are the key issues and problems facing Advent? How would you deal with them?
This case describes the situation of a small consumer electronics firm in late 1970. Mr. Henry Kloss, the founder of Advent, discusses his approach as an entrepreneur and general manager, and contemplates the future of his venture. The case provides us with an opportunity to discuss technical competencies and the relationships between technology and product development.
Reading: Burgelman et al., The Core Competence of the Corporation, p. 64.
II. Creating and Implementing Product Development Strategies
The third part of the course concerns new product and new business development. Technology-based innovation projects require the integration of technical and human systems, and the management of complex interfaces between a variety of highly skilled specialties in the different stages of project development. Some of the key skills required in managing innovation projects concern:
Session 5 (10/9):
Case: Burgelman et al., Texas Instruments' "Speak and Spell" Products, p. 712.
2. How does the design-to-cost principle affect the product development process of "Speak and Spell"? Does this product fit with the corporate strategy? Why?
3. How do you feel about the way the "Speak and Spell" development process evolved? Why?
4. What do you think about the two chip versus three chip decision? Which one fits better with the product strategy?
This case describes the inception, development, and commercialization of a consumer product based on a major breakthrough in microelectronics technology. The case allows us to examine the interplay between corporate strategy and the new product development process in a well-established corporation.
Reading: Burgelman et al., The New Product Development Learning Cycle, p. 698.
Session 6 (April 17):
Case: Burgelman et al., EMI and the CT Scanner (A) and (B), p. 118.
2. What business strategy is needed for an industry leader? What is EMI's strategy?
3. What is your evaluation of EMI's business strategy?
4. What actions would you recommend to John Powell? Why?
This case describes how EMI, a UK-based diversified company pioneered the CT-scanner, a new medical diagnostic device. At the time of the case (1977), competitors have entered the market and EMI faces a number of strategic and operational issues.
Readings: Burgelman et al., Taking Technology to Market, p. 109.
Session 7 (April 22):
Case: Burgelman et al., Apple Computer (A), p. 673.
2. How did the strategy with respect to Apple III evolve? How did it fit with Apple's corporate strategy?
3. What were the critical interfaces between functional groups in Apple III's development process? How well were these managed? Why?
4. Given the current situation, which actions do you recommend? How would you carry them out?
This case describes the development of Apple's second computer product, the Apple III. It offers another opportunity to look at the product development process in an emerging company. Our focus will be on the link between product development and business strategy and the interfaces between different functional groups in the development process.
Readings: Burgelman et al., Communication Between Engineering and Production? p. 691.
Part III: Design and Evolution of Technology-based Strategies
The third part concerns the design and evolution of technological strategy. Technology has become a major functional area for many companies, especially for those competing in industries characterized by rapid technological change. From a strategic management point of view, key interrelated issues and problems concerning the use of technology include:
Session 8 (10/21):
Case: Burgelman et al., The Operating System Software Industry in 1994, p. 275.
2. What are the industry trends that will impact future competitive strategies?
3. What is your evaluation of the current competitive strategies in the industry? Why has Microsoft been such a dominant player? What is your assessment of their future position? What other strategies pose a threat?
4. What would be your strategy to dethrone Microsoft?
Reading: Burgelman et al., Organizational Determinants of Technological Change, p. 186.
The fourth part of the course deals with designing and managing innovative systems at the corporate level. Corporate management is faced with difficult decisions concerning the development and maintenance of a central R&D capability whose output can serve as substrate for the identification and inception of new, technology-based business opportunities. Another series of decisions concerns the design and development of structures and processes that will enhance the development of new ideas into new, viable businesses and will facilitate the emergence and support of internal entrepreneurs in the corporation. Some of the key issues and problems addressed in this part of the course are:
Session 9 (10/24): Industry Project Research Day
Session 10 (10/28): Industry Analysis of Term Project is Due
Case: Burgelman et al., Intel Corporation (D): Microprocessors at the Crossroads, p. 455.
2. What is your assessment of the Intel's current competitive position? What are the greatest threats? What new opportunities exist?
3. What are the changing success factors for the microprocessor industry? What firms are best positioned for the future?
4. What recommendations would you make to Intel? To other competitors?
This case describes the strategy and processes by which Intel has been able to develop a dominant position in the highly competitive microprocessor industry. We need to assess the changing competitive position and its potential impact on Intel.
Reading: Burgelman et al., The Power of Product Integrity, p. 770.
Session 11 (10/30):
Case: Boulton, Compaq Corporation: Initiating a price war.
2. What is the Compaq's PC strategy? How has Compaq changed its competitive competencies?
3. How do you evaluate their potential for future success? What new competencies will be needed with the increase in price-based competition?
4. What recommendations would you make to Compaq?
This case is about the turnaround of Compaq Corporation and its refocusing to become a low cost producer. It addresses the problems of responding to increasing cost-based competition.
Reading: Burgelman et al., Creating Project Plans to Focus Product Development, p. 838.
Session 12 (11/4):
Case: Boulton, Compaq Computer Corporation: Entering the Japanese market.
2. How are technology changes affecting the future structure of the Japanese computer market?
3. What strategies will be needed to compete in Japan? Who will be the leaders in the future?
4. What recommendations would you make to Compaq? To NEC? To the Taiwanese?
This case describes Compaq's entry into the Japanese market. After successful entry, what will it take to be successful?
Reading: Burgelman et al., Competition, Compatibility and Standards, p. 295.
Session 13 (11/6):
Case: EDS Information Technology Outsourcing, p. 90.
2. What product-market segments exist? What are the key success factors in each?
3. What will determine the winners and losers? What are the technological issues to be addressed?
4. What opportunities and threats must each player address? what companies are best positioned for future leadership?
Reading: Burgelman et al., Strategic Intent, p. 430.
Session 14 (11/11):
Case: Boulton, Sharp Corporation: Managing for the Future
2. What has been its LCD component strategy? What are its functional strategies? What is the competitive strategy and performance model of Sharp?
3. What threats or weaknesses could affect its future success? What opportunities and threats can you identify?
4. What critical issues and recommendations would you make for the future?
This case describes the leader of LCD technology. It addresses the question of how much one company should commit itself to a single technology.
Reading: Dimensions of Product Development in Japan, JTEC report on Electronic Manufacturing and Packaging in Japan (Chapter 2) on Internet at: hppt//itri.loyola.edu/ep/c2s1.htm.
Boulton, Note on the Liquid Crystal Display Industry (Internet/packet)
Session 15 (11/13):
Case: Boulton, Sharp Corporation: Developing Next-Generation Products
2. What is Sharp's consumer electronics strategy for the future? What are its functional strategies?
3. What is the competitive strategy and performance model of Sharp for consumer electronics?
4. What threats or weaknesses could affect its future success? What opportunities and threats can you identify?
5. What critical issues and recommendations would you make for the future?
This case describes Sharps approach to product development. It addresses the issue of product development strategies and how competitive requirements change.
Reading: Burgelman et al., Organizing and Leading Heavyweight Teams, p. 758.
Session 16 (11/18):
Case: Boulton, Xerox Corporation: The Document Company
2. What are the product-market segments? What are the key success factors?
3. What will determine the winners and losers? What are the technological requirements?
4. What opportunties and threats msut Xerox address? What are its strengths and weaknesses?
5. What recommendations would you make to Allaire?
This case concerns Xerox competitive turnaround and new competitive strategy. It addresses teh problems of developing and implementing a new vision for a large corporation.
Reading: Burgelman et al., The Lab that Ran Away from Xerox, p. 518.
Session 17 (11/20):
Case: Boulton, Xerox 2000: Leadership Through Quality.
2. What are the management and information models? How does this impact Xerox?
3. How do these changes affect Xerox's strengths and weaknesses? Opportunties and threats?
4. What are the remaining issues that must be addressed?
This case describes Xerox's new architectural model. It discusses the new management and information models being used to run the company. It raises issues about its implementation.
Reading: Burgelman et al., Architectural Innovation, p. 401.
Session 18 (12/2): Term Project is Due.
Case: Boulton, Xerox Corporation: Sales Force Automation.
1. What is the SFA? What are its goals?
2. What is your evaluation of the SFA project?
3. What are the critical issues that need to be addressed?
4. How much more funding would you recommend that the board allocate? For what projects?
This case describes Xerox's attempt at reengineering the company to become more competitive in the future. The challenge is how to do it. The SFA is the first project.
Reading: Burgelman et al., Designing and Managing Systems for Corporate Innovation, p. 493.
Requirements: 2 reading summaries, 3 cases analyses, 1 research report.
© Copyright 1996 by William R. Boulton. All rights reserved.