Course Description:
This course focuses on the strategic management of technology and innovation in established firms. The conceptual framework of the course is an evolutionary process perspective on technology strategy and innovation. The fundamental ideas underlying this evolutionary perspective are (1) that a firm's technology strategy emerges from its technological competencies and capabilities, (2) that technology strategy is shaped by external (environmental) and internal (organizational) forces, and (3) that the enactment of technology strategy, through the experience it generates, serves to further develop the firm's technological competencies and capabilities. Within this evolutionary perspective, the course draws on strategic and operations management, economics and organization theory for analytical tools to address important issues and challenges faced by managers in technology-based firms.
The course is research and theory-based but practice-oriented. Thus, our case discussions of various real life situations will require in-depth analysis to be complemented with specific action recommendations and willingness to commit oneself to a specific course of action. Using the cases, we will take on the perspective of various functional groups (such as R&D, manufacturing and marketing) and different levels of general management (business, project, corporate) involved in the process of technological innovation. We will examine what the key activities of each of the functional groups and management levels are, how these activities interlock, and how such complex systems of activities can be managed effectively.
Required Materials:
Course packet available at the bookstore--includes readings and cases. There is no required textbook for this course. In addition to this course packet, there are two readings on reserve in the Management library. Additional materials will be distributed in class as needed.
Part I: Integrating Technology and Strategy
*The substantive dimensions of technology strategy
*The ways in which technology strategy is enacted
*How senior managers integrate knowledge about the key issues relating to the firm's technology
with business and corporate strategy
*What skills are required to successfully run a high-technology firm
Part II: Technological Competencies and Capabilities
*Identifying a firm's distinctive technological competencies
*Understanding how distinctive technological competencies are used to develop competitive
advantage
*Allocating resources to areas of technological competence
*Choosing product-market strategies based on understanding the requisite technological
competencies
*Understanding and controlling sources of technology-based synergies
*Deciding which technology-based businesses to keep in the corporate portfolio
Part III: Determinants of Technology Strategy
*Technological evolution
*Industry context
*Organizational Context
*Strategic Action
Part IV: Enactment of Technology Strategy--Developing a Firm's Innovative Capabilities
*Technology Sourcing
*External sources of technology
*R&D alliances
*Corporate Innovation--Internal Corporate Venturing
*The role of corporate entrepreneurs and how to manage project champions/venture managers
Part V: Enactment of a Technology Strategy--Creating and Implementing a Development Strategy
*Selecting, developing and managing project teams
*Keeping various functional groups responsive to each other
*Linking user needs to internal technical capabilities in product design
*Keeping product development consistent with business strategy
*Managing strategic partnerships in new product development Course Grading
Case Executive Summaries (by group) 30%
Examination 40%
Participation 30%
Your case writeups and the project will be done in groups of three or four students. These groups will stay together throughout the semester.
Executive Summaries
For 5 of the cases (marked with an * on the schedule), each group must turn in an executive summary, not to exceed one page single-spaced, plus one page of exhibits. These are due at the beginning of the class in which the case is discussed. The summary should follow the suggested format attached to this syllabus.
Sections I, II, III, and IV should each be single-spaced, with double-spacing between sections. There is no need to restate the section headings. Obviously, with a one-page limit, you must be concise in your analysis. One page of exhibits is also allowed and should be used wisely to augment the discussion in the text portion of your summary.
Examination
One exam will be given in the course. The exam will be open book and given during the scheduled exam period.
Monday 3/10: Overview and Review of Syllabus
Read: Bower and Christensen, "Disruptive Technologies: Catching the Wave", HBR, 1995.
Wednesday 3/12: Claire McCloud 9-680-030
Monday 3/17: Designing a Technology Strategy
Read: Price, "Technology and Strategic Advantage", CMR and Burgelman, Maidique and
Wheelwright, "Designing and Implementing a Technology Strategy" in reserved readings in
Management Library.
Wednesday 3/19: NO CLASS
Monday 3/24: *EDS: Information Technology Outsourcing SM3
Wednesday 3/26: MIPS (A) 9-792-055
Monday 3/31: *Intel (C): Strategy for the 1990s BP256C
Wednesday 4/2: New Product Development
Read: "Creating and Implementing a Development Strategy"in reserved readings in library and
"Creating Project Plans to Focus Product Development", Wheelwright and Clark, Harvard
Business Review, March-April 1992, and "The New Product Development Map", Wheelwright
and Sasser, Harvard Business Review, May-June, 1989.
Friday 4/4: *Microsoft Multimedia Publications (A) 9-695-005
Monday 4/7: NO CLASS
Wednesday 4/9: Managing Innovation
Read: "Architectural Innovation", Henderson and Clark, Administrative Science Quarterly, Vol. 35,
1990, pp. 9-30 and "Technological Discontinuities and Organizational Environments", Tushman and
Anderson, Administrative Science Quarterly, 1986, pp. 439-465.
Monday 4/14: *Bendix (A) 9-378-257
Tuesday 4/15: Tour of Ford Glass Plant Time to be announced
Wednesday 4/16: Pilkington Float Glass 9-695-024
Monday 4/21: *Eli Lilly: Innovation in Diabetes Care 9-696-077
Wednesday 4/23: Guest Speaker
Final Exam
Claire McCloud
1. What are the pros and cons of Claire accepting the general manager's position?
2. What does Claire need to know about the technology?
3. How do the strengths and weaknesses of OWS compare with Claire's strengths and
weaknesses?
EDS Information Technology Services
1. What is your evaluation of EDS' strategy in 1992? How well does it fit the changing industry?
2. How are EDS' technological competencies evolving? How should EDS further develop them?
3. What are the strategic options for EDS? What course of action would you recommend?
4. How should EDS go about pursuing and implementing your recommendations?
Mips Computer Systems, Inc.
1. Mips had many alliances. Try to group them and identify the most important types of alliances in
the Mips network. What was the rationale behind each of these sets of alliances?
2. Stepping back from the individual alliances, what was the logic of the total network of alliances?
Did it create synergy or chaos?
3. When several competitors develop alliance networks, as the RISC players have done, what
drives competition among them? What appear to be the chief design variables or success factors in
these alliance groupings?
4. What should Bob Miller do now?
Intel Corporation (C)
1. What are the long term implications of Intel's exit from the DRAM business? How did Grove
handle the situation? Would you support U.S. Memories? Do you agree with Intel's decision to
remarket DRAMs from Samsung Semiconductor? What are the benefits and risks of that
arrangement?
2. What are the key differences between the DRAM and EPROM businesses? Should Intel exit
the EPROM business now that it no longer produces DRAMs?
3. Compare and contrast the arguments of Chou, Parker and Barrett regarding "technology
drivers". Are these arguments mutually consistent? If not, who is right? What are the implications
for Intel's technology strategy?
4. Does the strategy articulated by the marketing manager for Flash differ from the corporate
strategy? If so, how? Should Intel continue to invest in Flash? As the Flash manager, how would
you defend your position to senior management?
5. What are the dangers, if any, of Intel developing the i860? What are the benefits?
6. Is Intel still a technology leader? How well do the three corporate macro strategies outlined in
the case serve to guide Intel through the 1990s?
Microsoft MultiMedia Publications (A)
1. How does Microsoft manage product development projects?
2. Should the Football project be funded? Why or why not?
Bendix (A)
1. What is the environment Bendix faced in 1976? What is Bendix's strategy in 1976?
2. How does EFI fit in to Bendix's strategy?
3. What should Blumenthal worry about in 1976?
4. What should Bendix do?
Pilkington Float Glass
1. Compare the float glass project with the established plate glass making method.
2. What is your evaluation of Pilkington's approach to new product/process development?
3. Would you recommend the Board of Pilkington Brothers approve Alastair's request for $1.96
million to modify a redundant plate glass furnace for a full scale production line?
Eli Lilly: Innovation in Diabetes Care
TBA
Executive Summary (1 page, single-spaced, 1" margins)
I. Statement of the Problem
II. Recommendations
III. Discussion & Analysis of Recommendations
IV. Limitations and General Comments
Appendices (tables and exhibits as appropriate, 1-page limit)
Instructions for Writing the Summary
The Executive Summary is to be written in memo form from you to the decision maker in the case. The memo should consist of four paragraphs each of which concisely summarizes the corresponding section in your report. Memo form is as follows: TO: FROM: DATE: SUBJECT: Do not sign the memo.