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Technological Innovation Strategy

New York University


Stern School of Business
Spring 2020

MGMT-GB.3155.30
February 10, 2020 – March 30, 2020
Monday 6PM-9PM
Room: KMEC 5-90

Professor: Professor Prescott


Contact info: [email protected]
Office: Tisch 803
Office Hours: By appointment

Teaching Fellow: Sam Knopf


Contact info: [email protected]
Office Hours: By appointment

Required reading: Schilling, M.A. 2020. Strategic Management of Technological Innovation,


6th edition. New York: McGraw-Hill Publishers
Case Coursepack: Link to be provided
Selected readings noted in the schedule

COURSE OBJECTIVE
The purpose of this course is to expose you to the dynamics of industries driven by technological
innovation, and to train you to think strategically about technological innovation and new
product development and deployment. In this course, we will tackle such questions as:
• How and why are dominant standards chosen in “winner-take-all” industries?
• How do firms decide which new product and services to develop?
• How do firms decide whether go “go it alone” or collaborate, and how do firms develop
an effective collaboration strategy?
• How do firms make the difficult choice between protecting their technologies with
patents or copyrights, versus rapidly disseminating them to build installed base and
complementary goods?
• How can firms deploy their new innovation in a way that will maximize its chances for
success?

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The course will use a combination of lecture, discussion and exercises. Like the industries we
will study and work in, the course will be fast-paced, and every effort will be made to make the
class both challenging and exciting. Because of the fast-paced nature of the course, it is vitally
important that you come to class prepared and ready to discuss the topics. If you stay up on the
material you will learn more during the discussions and be successful at the assignments.

GRADE BREAKDOWN
Preparation and Participation:
Class Discussion and in-class exercises 30
Homeworks 40
Final Exam 30
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Total 100

Class discussion & in-class exercises: We will use a variety of in-class exercises to give you
opportunities to apply and deepen your knowledge of the course content. Some of these will be
turned in for participation points. I may also adjust your total for this grade based on the quality
of your voluntary participation in class. There is no way to make-up in-class participation or
exercises.

Homework: There are two homework assignments due during the semester, as indicated in the
course schedule. These are a combination of individual and team assignments. Homework is due
the date that they are noted on the syllabus. Assignments turned in late will be penalized.

Final Exam: The final exam will be a timed open-book exam in which you will apply the
concepts from the course.

CLASSROOM POLICIES
We will use the Stern default classroom policies, aside from the electronic usage clause:

Laptops, Smartphones, & Other Electronic Devices: May be used in class

Attendance: Required and part of grade. Faculty will excuse absences only in the case of
documented serious illness, family emergency, religious observance, or civic obligation. If you
will miss class for religious observance or civic obligation, you must inform your instructor no
later than the first week of class. Recruiting activities are not acceptable reasons for absence
from class. Absence from the first day of an intensive course will result in removal from the
course.

Arriving Late, Leaving Early, Coming & Going: Students are expected to arrive to class on
time and stay to the end of the class period. Arriving late or leaving class early will have impact
on the course grade. Students may enter class late only if given permission by the instructor and
can do so without disrupting the class.
(Note that instructors are not obligated to admit late students or may choose to admit them only
at specific times and instructors are not obligated to readmit students who leave class.)

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Late Submission of Assignments: Late assignments will either not be accepted or will incur a
grade penalty unless due to documented serious illness or family emergency. Instructors will
make exceptions to this policy for reasons of religious observance or civic obligation, only when
the assignment cannot reasonably be completed prior to the due date and the student makes
arrangements for late submission with the instructor in advance.

General Behavior: Students will conduct themselves with respect and professionalism toward
faculty, students, and others present in class and will follow the rules laid down by the instructor
for classroom behavior. Students who fail to do so may be asked to leave the classroom.
(Honor Code and Stern policy)

Collaboration on Graded Assignments: Students may not work together on graded assignment
unless the instructor gives express permission. (Honor Code)

SCHEDULE

Class/Date Topics of Discussion


Session #1 Introduction & Sources of Innovation
February 10
Readings: Text, Chapter 2, Case Study: SpaceX 2018 (NYU Classes)

Class Discussion: Be prepared to discuss the following in class:


SpaceX 2018 case
1. What was Musk’s goal in creating SpaceX?
2. What capabilities and personality traits have enabled Elon Musk to be
innovative?
3. How would you characterize the space industry? What does SpaceX do
differently from the incumbents in the space industry and why?
4. Do you think the space industry incumbents will change their methods of
producing space vehicles in response to SpaceX’s entry? Why or why not?
Bonus (not in case): How is Jeff Bezos’ company Blue Origin similar to or
different from SpaceX? What are each company’s advantages and
disadvantages?

NOTE: NO CLASS ON FEBRUARY 17TH DUE TO PRESIDENTS DAY


Session #2 Types and Patterns of Innovation
February 24
Reading: Text, Chapter 3

Class Discussion: Prepare and bring to class, ready to discuss:


1. Identify an innovation you find interesting.
2. Explain why you think the innovation is radical or incremental, and whether
it is competence enhancing or competence destroying (and from whose
perspective).

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3. Draw where you think this innovation is on the S-curve of performance
improvement.
4. Draw where you think this innovation is on the diffusion curve (i.e., what
category of adopters do you think it has reached?)
5. Does this innovation disrupt a different technology’s s-curve? Is this
innovation at risk of being disrupted by a different technology’s s-curve?

In-class Exercise: Technology Trajectories

Session #3 Standards Battles and Design Dominance


March 2
Reading: Text, Chapter 4

HW #1: Complete individually, due at the beginning of class Analysis of


mobile messaging and be prepared to discuss. Max 2 page word document or
10 page powerpoint.
Search on the internet to answer the following questions about the Messaging
industry:
1. What is the global market share of the major messaging applications,
which can include; Facebook Messenger, WhatsApp, Google Hangouts,
Kik, WeChat, and Slack.
2. Choose two messaging apps and analyze the services that each offers.
3. Then, from your own opinion, answer the following questions: Will the
market select one winner? Why or why not?Whose messaging service
offers the most standalone utility? (quality, beauty, functionality, etc.)
Whose ecosystem is “better”?
4. Are there likely to be different market segments that have very different
preferences for different dimensions of value in messaging application?
5. Finally, offer specific and actionable recommendations for the
technology’s owner/sponsor to increase its likelihood of success
Note: Use tables, bullets, and graphs to make your analysis concise and clear;
put any necessary descriptive info in an appendix.

In-class Exercise: Messaging competition


Please bring your answers to the questions above and be prepared to use them
in an in-class exercise. If time allows, discuss global mobile operating systems

Guest Speaker: Business Product Marketing Director, Facebook

Session #4 Collaboration Strategies


March 9
Reading: Text, Chapter 8

Prepare: Handpresso Cases (A), (B) & (C) (Coursepack)


1. What are the most innovative elements of the Handpresso concept?
2. Why do you think neither Illy nor Sara Lee jumped at the opportunity to
complete the development of the Handpresso?

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3. What kinds of partners and collaboration types did Nielsen ultimately form?
What were the advantages and disadvantages of these collaboration
relationships?

In-class Exercise: Global Strategy Game

NOTE: NO CLASS ON MARCH 16TH DUE TO SPRING BREAK


Session #5 Protecting Innovation
March 23
Reading: Text, Chapter 9, Case Study: Viagra in China (Coursepack)

Prepare: Viagra in China case


What are some of the differences between the US and Chinese intellectual
property protection regimes at the time of the case? What were some of the
challenges Pfizer faced in obtaining patent protection in China? What were
some of the challenges Pfizer faced in obtaining tradermark protection in
China? Why have Pfizer’s Viagra sales in China been less than stellar despite a
huge market? Analyze Pfizer’s IP strategy – would you recommend that Pfizer
had done anything differently?

HW #2: In small groups, due at beginning of class (2-3 pages): Find an


example of a current/recent innovation collaboration between two or more
organizations and using the material in the chapter and your research on the
collaboration, answer the following:
1. Who are the partners and what is the innovation they are trying to develop?
2. What does each party bring to the collaboration?
3. How is the collaboration structured? (e.g., licensing agreement, JV, etc.)
4. What do you see as the major advantages and disadvantages of this
collaboration? (Please consider both the decision to collaborate and the
structure of the collaboration)
Be prepared to discuss your conclusions briefly in class.

Guest Speaker: Innovation Director, Pepsi

Session #6 Crafting a Deployment Strategy


March 30
Reading: Text, Chapter 13

In-class Exercise: Teams will create a deployment strategy for a new


innovative product or service. You can pick your own, or you can select from a
list of examples I will bring.

Class Discussion: Present your team’s pitch for a deployment strategy and be
prepared to answer questions.

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Final Exam (Timed online, open book)
This schedule is a guideline only; the instructor reserves the right to change the schedule as
necessary.

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