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Course Syllabus Page 1 Creating New Competitive Advantage through Design Thinking Management 341 Fall 2011 In Collaboration with College of Design in Pasadena Class Meeting Information* Fall 2011 Thursdays 1-4pm September 1 September 8 September 15 September 22 September 29 October 6 October 13 October 20 October 27 November 3 November 10 November 17 December 1 December 8 December 15, Burkle 14 (1021 N. Dartmouth Ave, Claremont) College of Design, Grad ID, RM 134 (1700 Lida Street, Pasadena) No Class KPCC, Pasadena *Class locations are tentative and subject to change. Instructor Information Name: Hideki Yamawaki (The Ito Chair of International Business and Academic Dean, ) Email: hideki.yamawaki@cgu.edu Phone: (909) 607-8494 Office Hours: by appointment Faculty Support: Kathy Holden, Email: Kathy.holden@cgu.edu Phone: (909) 607-9061

Course Syllabus Page 2 College of Design Name: Andrew Ogden (Professor and Dean, Graduate Industrial Design, College of Design) Email: andy.ogden@artcenter.edu Phone: (626) 396-2465 Name: Thomas Bertling (Director, Entertainment Design Department, College of Design) Email: Thomas.bertling@artcener.edu Phone: (626) 396-2409 Faculty Suport: Maritza Herrera, Grad ID department coordinator, College of Design Email: andy.ogden@artcenter.edu Phone: (626) 396-2464 Visiting Lecturers Katherine Bennett (designinvestigations.com) Lloyd Walker (precurve.com) Prerequisites Classes or Knowledge Required for this Course Priority is given to the second-year MBA students and Executive Management students who have completed MGT340 Strategy (MBA), MGT524 Industry and Competitive Analysis (EMP) or equivalent course on business strategy. Course Description Many corporations these days move away from analyzing existing opportunities and look to the creation of new options that they have not yet considered. An emerging approach is to see value in the designer s approach to solving problems. Creating Competitive Advantage through Design Thinking combines classroom and design projects to expose students to a new working environment of design driven companies. Working on design projects with College design students, Drucker students are expected to learn new ways in which to combine creativity, managerial skills and entrepreneurial sprit in holistic ways. In particular, management students will have opportunity to work with the designer s approach a deep understanding of the user/client, creative solutions to constraints and tensions, prototyping, and continuous modifications. Initial classroom study utilizes class discussion and workshops to focus on business strategy and creativity/innovation languages. The students are assigned to work on a design project in teams and expected to make presentations on March 1. Course Upon completing this course, the student will: Understand new relations of the world of business and the world of design

Course Syllabus Page 3 Develop ideas for ways to commercialize and market design projects Identify essential elements in the design of a new innovative project that enhance competitive advantage Have opportunities to work with designers at the world s leading design school, Collage of Design, Pasadena Experience multidisciplinary environment through design project Course Text or Online Resources Text: No textbook required. Suggested Readings: Roger L. Martin. The Design of Business: Why Design Thinking is the Next Competitive Advantage. Harvard Business School Press. 2009. Roberto Verganti, Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean. Harvard Business School Press. 2009 Evaluation and Grading In this course, you will be evaluated in the following way: Class participation 40% Assignments (final presentation of the product and short paper) 60% Total 100% Team Project and Presentation (TBD) Throughout the course, the students are assigned to projects and work in teams. A team consists of 2-3 Art Center design student and 3-4 Drucker management students. Each team works on a design project and is expected to formulate a strategy to market the project. Assignments (1) Final presentation of the product on December 8. (2) A short paper (8-10 pages) that describe the innovation process of your team (due on December 8)

Course Syllabus Page 4 Course Outline Week D1 Thursday September 1, 1 3pm Drucker Class kick off and overview Introductions Why design matters for management? (H. Yamawaki) Project description Week D2 Thursday September 8, 1 4pm Situational analysis Apply industry and competitive analysis to the project Identify the issues KPCC faces

Course Syllabus Page 5 Week 1 Thursday September 15, 1-4pm, College of Design, Grad ID and Drucker Joint Class kick off and overview Employ a human centered and systems thinking approach to the creation of new value Frame the problem or opportunity to establish the goals, priorities, and value criteria for the project Define the key framing questions for the project Introductions Strategic innovation and design thinking methodology (A. Ogden) Framing Tools and Team Building (A. Ogden) campus tour Readings Ralph Caplan, By Design: Why There are No Locks on the Bathroom Doors in the Hotel Louis XIV, and other Objective Lessons, McGraw-Hill, 1984 Richard J. Boland Jr. and Fred Collopy. Design Matters for Management, in Richard J. Boland Jr. and Fred Collopy (eds.), Managing as Designing, Stanford Business Books, 2004.

Course Syllabus Page 6 Week 2 Thursday September 22, 1 4pm,, Burkle Historical overview of analytical approach to business strategy Critical review of Industry analysis framework System Modelling Use industry analysis to evaluate industry attractiveness Understand industry dynamics and the limit of the five-force analysis System Modeling (A. Ogden) Introduction to industry analysis: (H. Yamawaki) Case: Apple 2006 (HBS 9-706-496) Presentation by Drucker MBA teams Reading Michael E. Porter, What is Strategy? Harvard Business Review, December 1996.

Course Syllabus Page 7 Week 3 Thursday September 29, 1-4pm,, Grad ID Get smart about the topic Understand the quantitative and systems context of the proposed area of innovation Design context tools Design context tools (A. Ogden) Design Investigations (Katherine Bennett) Team breakout sessions Readings Haire Mason. 1950. Projective techniques in marketing research, The Journal of Marketing, 14 (5): 649-656 Elizabeth B.-N. Sanders and Peter Kwok Chan. 2007. Emerging trends in design research. http://www.marketools.com/papers.html. Week 4 Thursday October 6, 1-4pm, Grad ID Imagine the most probable range of future contexts for the innovation Define the unmet wants and needs of the ideal customer Anticipate how both will change and how value will migrate Development of STEEP based future scenarios Definition of ideal user profile Refined values criteria framework Futures Workshop I (Lloyd Walker)

Course Syllabus Page 8 Week 5 Thursday October 13, 1-4pm,, Grad ID Generate idea Gather many ideas before choosing a direction Promote abductive reasoning (the creative leap) Keep incomplete, wild, and odd ideas in the mix Imagine the ultimate ideal solution far in the future and then bring it back to the present Creative idea generation and brainstorming methods (A. Ogden) Team breakout sessions Week 6 Thursday October 20, 1-4pm Introduce the social, market, environmental, human, business, and technological dimensions to business decisions Understand the changing context and adapt to the new environment Cost, differentiation, buyer s willingness-to-pay, business model innovation Industry dynamics, positioning, and repositioning (H. Yamawaki) Case: Ducati (HBS 9-701-132) Team breakout sessions: apply design context tools

Course Syllabus Page 9 Week 7 Thursday October 27, 1-4pm Identify the current competitive environment Explore future scenarios Identify emerging strategy Mid-term presentations (individual teams Week 8 Thursday November 3, 1-4pm Create new value for the customer Value creation and Blue Ocean Strategy Industry analysis and value creation (Hideki Yamawaki) Case: The Evolution of the Circus Industry (A) (BOS007) Team breakout sessions: apply the value creation approach to the project Reading W. Chan Kim and Rene Mauborgne, Creating New Market Space, Harvard Business Review, January-February 1999. (HBR 99105) Week 9 Thursday November 10 NO CLASS

Course Syllabus Page 10 Week 10 Thursday November 17, 1-4pm Understand business models and strategy Business models and corporate social responsibility Creating systems advantage (H. Yamawaki) Case: Patagonia (HBS 9-711-020) Team breakout sessions: evaluate and implement CSR in the project Reading Ramon Casadesus-Masanell and Joan E. Ricart, How to Design a Winning Business Model, (HBR R1101G) Week 11 Thursday November 24 NO CLASS (Thanksgiving)

Course Syllabus Page 11 Week 12 Thursday December 1, 1-4pm, Grad ID Team discussions and preparation for final presentation Week 13 Thursday December 8, 1-4pm Business Model based Design Presentations Final Paper Due Week 14 Thursday December 8, 1-4pm KPCC, Pasadena Final presentations