MGT4460. Innovation and New Business Creation: Creating, Exploiting and Managing Discontinuities
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1 MGT4460 Innovation and New Business Creation: Creating, Exploiting and Managing Discontinuities Graduate School of International Management International University of Japan Winter 2015 Instructor Toshiro Wakayama Office: 312 Phone: 427 Office Hours: After class or by appointment Introduction This course is about innovation, not invention. Innovation, by definition, refers to the whole process of going from idea to market acceptance, through design, development, production, market development and sales. Thus, while invention can be accomplished by an individual effort, innovation is almost always a collective organizational effort, requiring serious managerial attention. Despite the full-fledged managerial attention by competent managers and executives, innovation often fails. Innovation poses formidable challenges even to many well-run companies because it induces discontinuities of various kinds. Such discontinuities are seen not just in technology advances, but also in market changes, organizational changes, industry dynamics, and the very process of formulating innovation strategies 1. While many companies simply try to accommodate discontinuities (and often fail to do so), some great companies can exploit and even create discontinuities to leapfrog competition. This course examines innovation and related issues of new business creation, mainly in the context of established firms. Learning Objectives The learning objectives of the course are two-fold: Learn a set of concepts and frameworks for understanding and analyzing key managerial challenges companies are facing in managing innovation and new business creation (see Topics below); Develop capabilities for strategic thinking, particularly through repeated exercises on systematic strategy analysis of case materials. 1 Andy Grove, a former CEO of Intel, calls such discontinuities strategic inflection points. 1
2 Topics 1. Redefining the Basis of Competition through Disruptive Innovation 2. Discovering Customer Values in Use Circumstances 3. Getting the Scope of Innovation Right for New Business Creation 4. Aligning your Business with Shifting Industry Structure 5. Exploiting De-commoditization for New Business Creation 6. Embracing the Conflicting Themes of Exploration and Exploitation 7. Reinventing the Process of New Business Creation 8. Revitalizing the Organization for Innovation-driven Growth 9. Leveraging Emerging Economies for New Business Creation 10. Developing Capabilities for Global Innovation Required Materials Articles: Disruptive Technologies: Catching the Wave, Bower and Christensen, Harvard Business Review, 1995 Finding the Right Job for your Product, Sloan Management Review, Christensen, Anthony, Berstell and Nitterhouse, Sloan Management Review, 2007 Skate to Where the Money will be, Christensen, Raynor and Verlinden, Harvard Business Review, 2001 Building Breakthrough Businesses within Established Organizations, Govindarajan and Trimble, Harvard Business Review, 2005 The Ambidextrous Organization, O Reilly III and Tushman, Harvard Business Review, 2004 How GE is Disrupting itself, Immelt, Govindarajan and Trimble, Harvard Business Review, 2009 Coevolving Local Adaptation and Global Integration: The Case of Panasonic China, T. Wakayama et al., in Global Strategies for Emerging Asia, A. Gupta, T. Wakayama and S. Rangan (editors), Jossey-Bass/Wiley, Cases: Gallardo s Goes to Mexico, PDF-ENG, Harvard Business School, 2005 (Revised). Pandesic Pandesic The Challenge of a New Business Venture (A), PDF-ENG, Harvard Business School, 2005 (Revised). Pandesic The Challenge of a New Business Venture (B), PDF-ENG, Harvard Business School, 2005 (Revised). Apple Computer 2002, PDF-ENG, Harvard Business School, 2005 (Revised). Apple Inc. in 2012, PDF-ENG, Harvard Business School, 2012 (Revised). Stone Finch, Inc.: Young Division, Old Division, 3214-PDF-ENG, Harvard Business School, 2010(Revised) Emerging Business Opportunities at IBM (A), PDF-ENG, Harvard Business School, 2005(Revised) GE s Imagination Breakthroughs: The Evo Project, PDF-ENG, Harvard Business School, 2008(Revised) 2
3 References (not required, reserved at MLIC) Blue Ocean Strategy, W. C. Kim, and R. Mauborgne, Harvard Business School Press, 2005 Grading Final exam: 40% Class Participation: 30% Peer Evaluation: 30% Prerequisites What is Strategy? M. Porter, Harvard Business Review, November-December Introductory course on Strategic Management: e.g., MGT 1050 Strategic Management at IUJ. 3
4 Weekly Schedule Week 1 Redefining the Basis of Competition through Disruptive Innovation Course Overview Disruptive Technologies: Catching the Wave, HBR Week 2 Discovering Customer Values in Use Circumstances Finding the Right Job for your Product, SMR Gallardo s Goes to Mexico Week 3 Getting the Scope of Innovation Right for New Business Creation : None Pandesic The Challenge of a New Business Venture (A) Pandesic The Challenge of a New Business Venture (B) Week 4 Aligning your Business with Shifting Industry Structure : None Apple Computer 2002, , Harvard Business School, 2005 (Revised). Week 5 Exploiting De-commoditization for New Business Creation Skate to Where the Money will be, HBR Apple Inc. in 2010 Week 6 Embracing the Conflicting Themes of Exploration and Exploitation The Ambidextrous Organization, HBR, April 2004 Stone Finch, Inc.: Young Division, Old Division Week 7 Reinventing the Process of New Business Creation Building Breakthrough Businesses within Established Organizations, HBR Emerging Business Opportunities at IBM (A) Week 8 Revitalizing the Organization for Innovation-driven Growth : None GE s Imagination Breakthroughs: The Evo Project Week 9 (morning) Leveraging Emerging Economies for New Business Creation 4
5 : How GE is Disrupting itself, HBR : None Week 9 (afternoon) Developing Capabilities for Global Innovation : Coevolving Local Adaptation and Global Integration: The Case of Panasonic China : None Week 10 Wrap-up session (morning) Guest Speaker (afternoon) Speaker: TBA Title: TBA 5
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