MAN 337 STRATEGIC INNOVATION AND CHANGE
Spring 2010
Professor Violina Rindova, Ph.D.
E-mail: [email protected]
Meeting Times and Location: Monday and Wednesday, 12:30 to 2:00, CBA 4.304
Office hours: Wednesday 2:00-4:00 or by appointment; Office: CBA 4.226
PURPOSE OF COURSE
In June 2006, Business Week observed that “making innovation work is the single most important
business issue of our era.” In fact it has always been a critical component of leadership, and the key to
the survival and growth of organizations. This course is designed to increase your effectiveness and skill
in analyzing, managing, and understanding issues related to strategy and innovation. It covers both
strategic choices and internal management activities.
This is an advanced management course on strategic management of change and innovation. The goals
of the course are to develop your analytical and creative thinking in combination; and to provide
you with skills to search for and develop creative and strategically viable solutions for environments
where change and innovation are key drivers of competitive success. As innovation requires the creative
synthesis of several functional areas, the course integrates perspectives from the psychology of creative
thinking, strategic management, organizational design and management. The course is designed for the
general manager - no technical background is assumed. Although we will cover a number of different
technologies and you will have an opportunity to learn about technologies of your choice as part of the
required course work, the course does not focus on specific technologies or on technological innovation
per se.
COURSE OVERVIEW
The course consists of three basic sections: In Part 1, we will look into innovative thinking as an
individual and organizational capability. Why are some people more able to be creative than others? What
do creative people do? And how about “creative organizations”? Are there things that organizations can
do to become consistently creative and innovative?
In Part 2, we explore different types of innovations in order to understand: a) how do innovations create
value and b) what different types of innovations create value? In this part our goal is to expand our
understanding of innovation, so that we can begin to see a broader range of opportunities for innovation at
the strategic level.
In Part 3 of the course, we move inside the organization and consider internal management issues related
to the generation of innovation amidst the complexity of work environments. In this section we are
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concerned with understanding how managers can create environments that encourage innovation, in both
new and established organizations. We will give special attention to organizational cultures and their role
in stimulating and enabling creativity and innovation. We finish the course by exploring these issues in
the context of large, traditional organizations in order to revisit the impediments to innovation and
managers’ ability to overcome them. How can leaders manage a change process, and act as architects of
strategic innovation? This involves a consideration of all the issues covered in the course.
Instructional Method
This is not a traditional lecture course. There will be very few lectures during the semester. Most of the
learning in the course is learning-by-doing – through the analyses of the cases we will discuss in class,
and the different independent research projects. To conduct effective analysis of the cases and your
research, you would need to read and work with the readings before class, to attend class and participate
in the class discussion, so that you can really engage in the strategic analysis of innovation cases. The
readings should provide you with tools for thinking about the cases; and you should have read and applied
them to the case analysis before you come to class. Consequently, we will not, as a rule, spend classroom
time reviewing the readings per se; I will assume that you have done the readings and you are coming to
class after you have applied them to your own analysis of the cases. If you have questions about the
readings, you are encouraged to raise them in class. You can raise conceptual questions either at the
beginning of class, or during the case discussion.
COURSE REQUIREMENTS
Class Contribution*
Group Innovation Project
(includes project presentation)
Mid-term Case Analysis
(includes presentation of analysis)
Mini Filed Studies (3)
30%
40%
15%
15%
*
As explained above, this is a learning-by-doing course that relies on the case-based teaching method.
Consequently, preparation and participation are critical and 30% of your grade will depend on these
elements. Missing a third of the classes or more will result in a failing grade for the class.
Class Contribution
In-class discussions are at the core of the learning in this course. The discussions will cover the readings
and cases listed in the schedule of classes below, as well as some additional conceptual material that I will
present in class. This course makes extensive use of the case method. This method has been found to be
particularly useful for developing professional skills in the art of diagnosing complex unstructured
problems. For this course to work as intended, it is critical that you come to class prepared to discuss the
reading or case assigned. To help you prepare for class discussion of the readings and cases, I have
provided you with preparation questions in the schedule of classes below. In general, you will be expected
to demonstrate 1) detailed knowledge of the content of the readings and cases assigned for each class; and
2) independent analysis using the tools provided in the readings.
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Given the importance of class participation to your grade, I have outlined below the important dimensions
of class participation. Your class participation grade will depend on how well your contributions
incorporate these elements. Since you cannot participate in class discussions if you miss all or part of
a class, your grade will be negatively affected by absences and tardiness. You will be allowed one
absence during the semester (you do not need to provide a reason), after which absences for whatever
reason will affect your grade for class participation. The template used for grading participation is:
absence = 0; missing part of a session plus minor contribution = 1; missing part of a session plus major
contribution = 2; attending whole session plus minimal contribution = 3; attending whole session plus
medium contribution = 4; attending whole session plus major contribution = 5. Also, disruptive actions
such as comments that distract or disrupt the class rather than contribute to the conversation, or web
surfing or e-mailing during class, take away from the class discussion and may result in a penalty in the
form of negative points. Class contribution will be graded for each class session.
At the very start of each case discussion, I will call on two students, randomly, to take 1-2 minutes to
answer a particular question about the case or give their view of the major issues involved. Similarly, at
the end of each case discussion, I will call on two students, again randomly, to summarize the key takeaway lessons to be learned from it. Class participation may also include unannounced in-class quizzes on
the material assigned for the class sessions in which the quizzes are held.
Many people are intimidated by the “obligation” of speaking up in class. Don’t be. Your anxiety will be
reduced only through practice. Here’s the secret to cutting your stress level: BE PREPARED. If you have
read the case and the readings carefully and have prepared notes with your analysis of the preparation
questions provided, you will succeed if you speak up. Please keep in mind that the only measurable
output of your preparation is your class discussion – but airtime is a scarce resource, so please use it
wisely. Comments based solely on a “gut reaction” generally do not add much value. Participation that
does not add any value is treated the same as not participating. Frequent non-quality contributions are not
rewarded and in some cases may be penalized. Students who find it difficult to speak in class should
schedule to meet with me early in the semester during my office hours.
What does class contribution entail? The criteria I use to evaluate your class participation are:
(1) Are comments relevant to the discussion?
(2) Do comments reveal solid grasp of the facts of the case and their implications?
(3) Do comments reveal use of appropriate tools (from the readings) to analyze the facts of the
case?
(4) Do comments add to the knowledge in the class, i.e. to they move the discussion forward or
do they repeat what has been said?
(5) Do comments show that you have listened to the discussion and that you are able to build on
the comments of others?
(6) Are you prepared to answer when called on in class? (Let me know before class if some
emergency has prevented you from adequately preparing.)
Group Projects
As we will discuss in the class, creativity and innovation are essentially group activities. Therefore, most
of the work in this class is group work. As soon as possible, I’d like you to organize yourselves into
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groups of 5 or 6. Please email me with the names of group members – one e-mail per group. I reserve the
right to add a member to your group if needed. You will complete two components of the class in your
group: your final innovation projects and the mid-term case analysis. Each of these projects also involves
a class presentation of your work. All members of the group will receive the same grade for each
assignment. I will not collect formal group-member evaluations, but you have the option to e-mail me, if
you have evidence that equal grades for all group members are not warranted. I will make the grade
decision based on the evidence. I will not, however, get involved in managing your group process.
Learning to work with others is an essential component of the learning in this class.
Final Innovation Project
The purpose of this project is to give you an opportunity to apply what you are learning in the class to a
realistic setting and increase your knowledge about a specific industry or technology.
Your assignment requires you to identify a real organization that meets two conditions:1) It pursues
innovation of some sort -- a potential product or process innovation, technology strategy, the
commercialization of a new technology, a new business model, a change in distribution system, or even
an innovation in managerial practice. 2) You can gain reasonable access to it. Access can be by phone or
in person. The organization can be a small team start-up that is pursuing a clearly identified opportunity,
or a unit of larger organization that meets the conditions above.
You will use the organization as a realistic setting to hone your ability to analyze strategic innovation and
change by: 1) analyzing the innovation potential of what the organization is seeking to do; 2) assessing
the organizational practices and the extent to which they support innovation; and 3) recommending a plan
of action for the management of the organization to improve its approach to innovation.
To this end, you would need to: 1) write the paper as a consultant’s report to a specific person in the
organization – the CEO or the person in charge of the innovation you are analyzing. You may use
fictitious names, but you must clearly specify a particular role whose occupant would read your report.
Assume your reader, like most real managers, has other pressing concerns and a general lack of
enthusiasm for your ideas. Convince your reader that your analysis can add value to the organization and
that it is crucial to do something. Be as concrete as possible in what you want the organization to do, and
why.
Following is a suggested guideline for the content of the assignment.
(1) Analyze the existing market and industry. What industry is the organization in? What are they
existing competitive alternatives to what it is trying to do? What type of tangible advantages does the
innovation offer and to whom? What barriers to its adoption exist? Are there barriers to competitive
imitation? Will the organization profit from the innovation and how?
(2) Analyze the management of the innovation in the organization: What is the organizational history of
this innovation? How has it evolved? How does it fit with/is supported by the organizational
practices? Does the organization as a whole have ability to manage innovation effectively?
(3) Make recommendations: Given your analysis above, recommend a plan of action for management to
pursue this innovation effectively or to improve on its innovation potential? How should management
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implement your recommendations? What cultural, strategic, and leadership issues have to be
managed in order to implement your recommendations? Anticipate problems that may arise in the
implementation of your plan.
(4) Present your methodology: Explain who was interviewed and what other sources of industry and
organization data you used. (Feel free to supplement your data collection with interviews of
competitors, customers, suppliers, or partners.)
Each project report should have a one page executive summary where your key observations, suggestions
and themes are succinctly discussed. Projects should be no longer than 15 pages of text (double-spaced,
12 pt font, 1” margins all around), plus no more than 5 pages for exhibits, 1 exhibit per page. Exhibits that
are not explained in the text will not be read. Final reports are due at the beginning of the last class, May
5, 2010. Late papers will not be accepted.
You will need to provide a progress report during our class on March 10. In the progress report, describe
the organization you have chosen to study, how you will gain access to the organization, data sources that
will be used, and the innovation the organization is pursuing/needs to pursue. You must have ‘closed the
deal’ on the organization in terms of obtaining agreements from specific people who will available for
you to interview. I will review these reports with each group during class time on March 10.
You will present your analysis and recommendations to the class on either April 26 or April 28, 2010. I
will assign the group presentation times randomly. You will have 15 minutes to present, and 10 minutes
of Q&A. Please turn in a hard copy of your presentation slides at the start of class. The presentation
should include a brief description of the organization, its competitors, and the innovation you are
analyzing. You should describe and categorize the innovation using concepts covered in class. You
should spend the bulk of the time on your recommendations explaining how they will be implemented,
taking into account the capabilities, leadership, culture, and innovation practices of the organization. You
can use the class discussion of your presentation and the detailed feedback I will provide in a subsequent
feedback session on May 3 to refine your analysis and recommendations before you submit your final
written report.
Midterm Case Analysis
You will complete your mid-term case analysis with your group. A detailed assignment and the exam
case itself will be distributed approximately one week before it is due. You may not discuss the case itself
or your write-up with anyone other than your team until after the exams have been turned in. The textual
body of your analysis should not exceed 5 double-spaced typewritten pages. Use 1-inch margins and a
12-point font. I will read only the first 6 pages, so please stay within assigned limits. Also, you may
include up to 3 additional 1-page exhibits with charts, tables, or figures. Exhibits that are not directly
explained, in order, in the main text will not be read. There should be only 1 exhibit per page. As we will
discuss the case in class on the day when it is due, late assignments will not be accepted. The mid-term
case analysis is due at the beginning of class March 1, 2010. In addition to the written paper, please
prepare 3-4 summary slides to share your analysis and recommendations with your classmates on that
day.
Mini-field Studies
Given the course goals to help you develop your skills to search for and discover creative solutions to
strategic problems, you will be required to conduct three mini-field studies on topics related to the
material we are covering in class. You should complete these assignments in partner teams of 2 or 3
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people. Details regarding each assignment are provided in the “Schedule of Classes” on the day when
they are due – February 17, March 8, and April 7. The observations and analysis from each assignment
should be presented in class using a brief (3-4 slides max) presentation. I will grade your work based on
the presentation in terms of how effectively you have used the readings and the field study to address the
assigned questions. No papers are required for these assignments but you must hand in a paper copy of
your presentation with your names on the cover page at the beginning of class.
COURSE MATERIALS
The cases and readings to be used in the course are available for purchase at University Co-op.
In addition, as per University policies, course-related information and materials will be available
throughout the semester on Blackboard. Syllabi, handouts, assignments and other resources will be
available within this site. Site activities could include exchanging e-mail and exchanging files. In
addition, class e-mail rosters will be a component of the sites. Students who do not want their names
included in these electronic class rosters must restrict their directory information in the Office of the
Registrar, Main Building, Room 1. For information on restricting directory information see:
http://www.utexas.edu/student/registrar/catalogs/gi02-03/app/appc09.html.
ADDITONAL COURSE INFORMATION
1. I care about your progress in this course and will be glad to do what I can to assist you. My
office hours this semester will be immediately after class on Wednesdays, 2:00- 4:00 pm. I’m also
available meet with you outside these times by appointment. To set up a meeting, please send me an email.
2. I will be posting a range of materials on Blackboard through the course of the semester,
including the syllabus, basic lecture notes (but not case notes), and other materials as required. Please
check Blackboard regularly. Class notes will be posted AFTER the class session.
3. Per McCombs and Management department policy, laptop computers, PDAs, cell phones, and
other electronic devices should be turned off at the start of class. Accommodations will be made for
students with disabilities.
4. If you miss class, please contact one of your classmates to obtain notes regarding what we have
discussed in class.
5. I expect all case analyses to be your own (and your group’s) work. This means that you are not
permitted to gather any additional information regarding the case via the internet or other means.
ADMINISTRATIVE POLICIES
Policy on McCombs Classroom Professionalism. The highest professional standards are
expected of all members of the McCombs community. The collective class reputation and the value of the
undergraduate program experience hinges on this. Faculty are expected to be professional and prepared to
deliver value for each and every class session. Students are expected to be professional in all respects. The
classroom experience is enhanced when:
•
Students arrive on time. On time arrival ensures that classes are able to start and finish at
the scheduled time. On time arrival shows respect for both fellow students and faculty and it enhances
learning by reducing avoidable distractions.
•
Students minimize unscheduled personal breaks. The learning environment improves
when disruptions are limited.
•
Students are fully prepared for each class. Much of the learning in the undergraduate
program takes place during classroom discussions. When students are not prepared they cannot contribute
to the overall learning process. This affects not only the individual, but their peers who count on them, as
well.
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•
Students respect the views and opinions of their colleagues. Disagreement and debate are
encouraged. Intolerance for the views of others is unacceptable.
•
Laptops are closed and put away. When students are surfing the web, responding to email, instant messaging each other, and otherwise not devoting their full attention to the topic at hand they
are doing themselves and their peers a major disservice. Those around them face additional distraction.
Fellow students cannot benefit from the insights of the students who are not engaged. Faculty office hours
are spent going over class material with students who chose not to pay attention, rather than truly adding
value by helping students who want a better understanding of the material or want to explore the issues in
more depth. Students with real needs may not be able to obtain adequate help if faculty time is spent
repeating what was said in class. There are often cases where learning is enhanced by the use of laptops in
class. Faculty will let you know when it is appropriate to use them. In such cases, professional behavior is
exhibited when misuse does not take place.
•
Phones and wireless devices are turned off. We’ve all heard the annoying ringing in the
middle of a meeting. Not only is it not professional, it cuts off the flow of discussion when the search for
the offender begins. When a true need to communicate with someone outside of class exists (e.g., for some
medical need) please inform the professor prior to class.
Remember, you are competing for the best faculty McCombs has to offer. Your professionalism and
activity in class contributes to your success in attracting the best faculty to this program.
Policy Regarding Re-reads of All Graded Coursework: In the event that you feel something
was missed in the grading of your work (be it mathematical error or other), please write a brief summary of
what you feel needs further attention and submit this re-read request with your original work with my
comments within 1 week of receiving your grade. If you request a re-read, I will read the work again from
scratch and your grade may go up or down. Each grade component is considered final one week after
given to the class and will no longer be open for re-reading or discussion. I do not accept personal
lobbying efforts for changing grades other than in writing.
Policy on Academic Accommodations: Upon request, the University of Texas at Austin
provides appropriate academic accommodations for qualified students with disabilities. Services for
Students with Disabilities (SSD) is housed in the Office of the Dean of Students, located on the fourth
floor of the Student Services Building. Information on how to register, downloadable forms, including
guidelines for documentation, accommodation request letters, and releases of information are available
online at http://deanofstudents.utexas.edu/ssd/index.php. Please do not hesitate to contact SSD at (512)
471-6259, VP: (512) 232-2937 or via e-mail if you have any questions.
Writing Center: I expect a high standard of written communication in your written reports.
Students struggling with this requirement are encouraged to consider using the Undergraduate Writing
Center, FAC 211, 471-6222: http://uwc.fac.utexas.edu/home). The Undergraduate Writing Center offers
free, individualized, expert help with writing for any UT undergraduate, by appointment or on a drop-in
basis. Any undergraduate enrolled in a course at UT can visit the UWC for assistance with any writing
project. They work with students from every department on campus, for both academic and non-academic
writing.
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SCHEDULE OF CLASSES
No.
1
Topic
Date
January 20
Course Overview
Kitty Hawk Assignment
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Part I
Thinking Innovatively
Jan 25
Creative Thinking and Practice
Readings:
Gregory Berns. 2008. From Perception to Imagination: How Iconoclasts Free
Themselves from Conventional Thinking
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Jan 27
Kitty Hawk Contest
Readings:
Roger L. Martin 2009. The Knowledge Funnel: How Discovery Takes Shape-How Design Thinking Produces Innovation, Efficiency, and Long-Term
Competitive Advantage
Case:
IDEO Product Development, 2007 (Read the whole case, but focus on p. 7-11)
Preparation Questions:
Please use the information from the whole case, but focus your analysis
specifically on the Palm V Project.
1. What is IDEO’s value proposition for Palm V? That is, what value does
Palm expect to gain from IDEO’s service?
2. Was IDEO able to deliver on this value proposition? How?
3. Identify the creative solutions implemented in the engineering and design
of Palm V. How did they come about? How were the problems identified
and the solutions developed? What were the costs and benefits of these
creative solutions?
4. Describe the steps in the “knowledge funnel” for the development of Palm
V. Were these steps serendipitous or predictable? Why?
5. Does IDEO manage and/or facilitate the perception-imagination
relationship? Provide specific examples.
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Feb 1
Creative Thinking as an Organizational Capability
Case:
IDEO Product Development, 2007
Preparation Questions:
1. How would you characterize IDEO’s design process?
2. How is its process affected by its culture? By its organization? And by its
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management?
3. Decision point: Should IDEO accept the Visor project as is? Should they try to
persuade Handspring’s management to change its aggressive launch schedule? Or
should they simply decline the project? Please consider both IDEO’s and
Handspring’s perspectives.
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Feb 3
Reading:
Hargadon & Sutton. 2000. Building an Innovation Factory. Harvard Business
Review
Case:
Phase Zero: Introducing New Services at IDEO (A)
Preparation Questions:
1. What is your assessment of the Simmons project? What criteria did you
use for evaluating it?
2. What is IDEO’s value proposition? What value do IDEO’s customers
expect from IDEO’s services?
3. How do Phase Zero Services compare to traditional (Phases 1-4) services?
What is required for success in Phase Zero?
4. To what extent is Phase Zero a good fit for IDEO? Should it continue to
grow this service? Why or why not?
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Feb 8
Case: Innovation at 3M Corporation
Preparation Questions:
1. How has 3M’s innovation process evolved since the company was founded?
Why, if at all, does 3M, known as a “hothouse” of innovation, need to regain its
historic closeness to the customer?
2. How does the Lead User research process differ from and complement other
traditional market research methods?
3. Has the Medical-Surgical team applied the Lead User research process
successfully? Why or why not?
4. What should the Medical-Surgical Lead User team recommend to Dunlop: the
three new product concepts or a new business strategy?
5. What are the risks to the new Lead User process at 3M?
Innovations
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Feb 10
Strategic Innovation
Readings:
Markides, C. 1997. Strategic Innovation. Sloan Management Review.
Case:
Titian versus Tintoreto, Business Strategy Review,2009 London Business School.
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Preparation Questions:
1. What are the key differences between Titian’s and Tintoreto’s art making
and art commercialization strategies?
2. Why do the authors characterize Tintoreto’s approach as “strategic
innovation”?
3. What were the costs and benefits of his strategic innovation?
In answering these questions be as comprehensive as possible.
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Feb 15
Technological Innovation
Case:
Research in Motion Ltd. (A)
Preparation Questions:
1. What are the major strengths and weaknesses of RIM in early 1998?
2. What is the value proposition of the proposed PocketMail wireless e-mail
solution? Is it an appealing one for end users in corporations and their IT
departments?
3. What are the barriers to its adoption?
4. What are the advantages and disadvantages of the different ways of selling
and distributing PocketLink?
5. Should RIM proceed with the PocketLink opportunity?
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Feb 17
Value Innovation
Reading
Kim & Mauborgne . Value Innovation. Harvard Business Review
Case:
Design Thinking and Innovation at Apple
Present Mini
Field Study 1
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Feb 22
Mini Field Study 1: Select an Apple product. Map its value curve relative to its
closest competitor. Do some of the elements of Apple’s “Design Thinking” explain
the difference? How has Apple’s Design Thinking affected the value curve of its
product? Create a table to illustrate your analysis. Come to class ready to present
your value curve and design thinking analysis.
Disruptive Innovation
Reading:
Clayton M. Christensen, Scott D. Anthony, Erik A. Roth. Seeing What's Next:
Introduction (How to Use Theories of Disruptive Innovation to Predict Industry
Change)
Case:
Global Wine War 2009: New World versus Old
Preparation Questions:
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1. Why were the French able to dominate the increasingly global wine
industry for centuries? What were their sources of competitive advantage?
2. Why were the Australians able to challenge the French dominance?
3. What does the strategy of the Australians have in common with disruptive
technologies?
4. What responses to the current situation would you recommend to the a)
French wine makers? b) the Australian wine makers? and c) the American
wine makers?
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Feb 24
Reading:
Kim & Mauborgne. Creating New Market Space. Harvard Business Review.
Case:
Howard Schultz and the Starbucks Coffee Company
Preparation Questions:
1. How did specialty coffee producers change the value curve of coffee?
2. What role did Starbucks play in the process?
3. Why did Starbucks emerge as the leader of the specialty coffee category?
4. How has its growth affected the value curve of coffee?
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March 1
Case Discussion Based on Group Presentations of Midterm Case Analyses
Mid-term
Case Analysis
Due
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March 3
Case:
Montague Corporation: Unfolding the Future of Cycling
Preparation Questions:
1. Is Montague’s “bicycle that folds” a good idea?
2. What is your evaluation of their product commercialization strategy?
3. Should they change their strategy dramatically or stay the course? What
are their alternatives? Explain the “pros” and “cons” of each alternative.
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March 8
Case:
Montague Corporation: Unfolding the Future of Cycling (continued)
Present Mini
Field Study 2
Mini Field Study 2: Visit a local bike store. First, interview one of the store
managers about 1) What are the trends in the bike industry -- What do users want
and what do bike makers offer? 2) What are the typical buying criteria – how
important are brand names and are users willing to take chances on small
companies? 3) What is their view of the future of folding bikes? Second, observe
(for an hour) how buyers look at bikes. What did you learn from this observation
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process? Third, observe (in your free time) what do bikers do with their bikes –
how do they park them, load them, store them, move them around, etc. Come to
class prepared (with 3-4 slides) to share your observations and to make
recommendations for Montague Corporation.
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March 10
Innovation Project Progress Reports Meetings
Managing and Sustaining Innovation
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March 22
Reading
Leveraging Culture for Innovation and Competitive Advantage
Case:
Cirque du Soleil
Preparation Questions:
1. Why has Cirque been so successful?
2. How does it create value?
3. Is its innovation-based strategy sustainable?
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March 24
4. What are the biggest challenges that Cirque faces? What should it do about them?
Case:
Keeping Google Googly
Preparation Questions:
1. What are the distinctive characteristics of Google’s organizational and
management practices?
2. How do these characteristics affect its ability to innovate?
3. Are these practices similar to or different from those of Cirque du Soleil?
4. What are the biggest challenges that Google faces? What makes you
optimistic or pessimistic about Google’s ability to handle them?
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March 31
Case:
April 5
Building an Innovation Democracy
Case:
City Year: National Expansion Strategy (A)
Preparation Questions:
1. What is City Year trying to accomplish? How would you describe their
mission?
2. Why is City Year so successful? Who are their competitors and how does
City Year compare?
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3. What is different about City Year? Are these differences a source of
competitive advantage?
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April 7
4. Which cities should City Year select for its national expansion? Why?
Case:
Creating a Community of Purpose
Present Mini
Field Study 3
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April 12
Mini Field Study 3: Visit a Whole Foods store. Interview at least 2 employees
about: 1) What they do at work and if opportunities for creativity and innovation
are present; 2) Do they experience Whole Foods as a community of purpose? 3)
Who do they see as their biggest competitor and why? 4) What do they believe
Whole Foods does better and what does it do worse than this competitor? 5) Does
the “community” make a difference in this regard and how? Prepare a 3-4 slide
presentation to share your findings in class.
Innovation in Large Firms
Case:
Sony EyeToy
Preparation Questions:
1. Is EyeToy an important product for Sony? How does it fit with Sony
Computer Entertainment Europe’s strategic objectives?
2. What are the reasons for the phenomenal success of EyeToy Play and the
failure of EyeToy Groove?
3. What EyeToy software should Sony focus on in the coming years? Which
of the concepts currently in the pipeline is the most attractive?
4. What is the ideal EyeToy development pipeline? Why?
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April 14
Case:
Change at Whirlpool Corporation (A)
Preparation Questions:
1. Is Dave Whitwam correct in thinking that Whirlpool needs strategic change?
2. Is the proposed change likely to give Whirlpool a competitive advantage?
3. Is the proposed strategy doable? Why?
4. How should Whirlpool go about implementing the strategy?
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April 19
Case:
Change at Whirlpool Corporation (continued)
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April 21
Design Thinking and Strategic Renewal
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April 26
Innovation Project Presentations
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26
April 28
Innovation Project Presentations
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May 3
Innovation Project Feedback Sessions Meetings
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May 5
Course Wrap-up
Innovation
Project
Reports Due
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APPENDIX: WHY WE USE THE CASE METHOD1
The case method is one of the most effective means of management education. It is
widely used in schools of business throughout the world, and this use is predicated upon the
belief that tackling real business problems is the best way to develop practitioners. Real
problems are messy, complex, and very interesting.
Unlike other pedagogical techniques, many of which make you the recipient of large
amounts of information but do not require its use, the case method requires you to be an active
participant in the closest thing to the real situation. It is a way of gaining a great deal of
experience without spending a lot of time. It is also a way to learn a great deal about how certain
businesses operate, and how managers manage. There are few programmable, textbook
solutions to the kinds of problems faced by real general managers in charge of innovation and/or
strategy. When a problem becomes programmable, the general manager gives it to someone else
to solve on a repeated basis using the guidelines he or she has set down. Thus the case situations
that you will face will require the use of analytical tools and the application of your personal
judgment.
Sources of Cases
All the cases in this course are about real companies. You will recognize many of the
names of the companies although some of them may be new to you. These cases were developed
in several different ways. Occasionally, a company will come to a business school professor and
request that a case be written on that company. In other situations, a professor will seek out a
company because he or she knows that the company is in an interesting or difficult situation.
Often, the company will agree to allow a case to be written.
Occasionally, cases will be written solely from public sources. This is perhaps the most
difficult type of case writing because of the lack of primary data sources.
In those situations where a company has agreed to have a case written, the company
must “release” the case. This means that they have final approval of the content of a given case.
The company and the case writer are thus protected from any possibility of releasing data that
might be competitively or personally sensitive. Public source cases, obviously, do not need a
release. Given the requirement for release, however, it is amazing the amount of information
that companies will allow to be placed in a case. Many companies do this because they believe in
the effectiveness of the case method.
Preparing for a Case Discussion
When you prepare for class, it is recommended that you plan on reading the case at least
three times. The first reading should be a quick run-through of the text in the case. It should give
you a feeling for what the case is about and the types of data that are contained in the case. For
example, you will want to differentiate between facts and opinions that may be expressed. In
every industry, there is a certain amount of “conventional wisdom” that may or may not reflect
the truth. On your second reading you should read in more depth. Many people like to underline
or otherwise mark up their cases to pick out important points that they know will be needed later.
Your major effort on a second reading should be to understand the business and the situation.
You should ask yourself questions like: (1)Why has this company survived? (2) How does this
business work? (3) What are the economics of this business?
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This appendix is based on a note was prepared by Dan. R.E. Thomas. It is intended solely as an aid to class
preparation.
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On your second reading, you should carefully examine the exhibits in the case. It is
generally true that the case writer has put the exhibit there for a purpose. It contains some
information that will be useful to you in analyzing the situation. Ask yourself what the
information is when you study each exhibit.
On your third reading, you should have a good idea of the fundamentals of the case.
Now you will be searching to understand the specific situation. You will want to get at the root
causes of problems and gather data from the case that will allow you to make specific action
recommendations. Before the third reading, you may want to review the assignment questions in
the course description. It is during and after the third reading that you should be able to prepare
your outlined answers to the assignment questions.
There is only one secret to good case teaching and that is good preparation on the part of
the participants. Since the course has been designed to “build” as it progresses, regular class
attendance and active participation are essential. The instructor’s role in the class discussion is to
help you develop your ideas through questioning. The instructor’s primary role is to manage the
class process and to insure that the class achieves an understanding of the case situation. There is
no single correct solution to any of these problems. There are, however, a lot of wrong solutions.
Therefore, my role will be to point out the faulty logic and assumptions and steer us toward
identifying several possible scenarios that would deal effectively with the problems presented in
the case.
The Use of Extra- or Post-Case Data
Effective cases analysis requires that you deal with the case AS PRESENTED. You
should put yourself in the position of the general manager involved in the situation and look at
the situation through his or her eyes. Part of the unique job of being a general manager is that
many of your problems are dilemmas. There is no way to come out a winner on all counts.
Although additional data might be interesting or useful, you are strongly discouraged from
acquiring or using extra- or post-case data prior to the case discussion. “Knowing what has
happened” can actually derail your analysis, as firms do many different things for different
reasons.
Some case method purists even argue that a class should never be told what actually
happened in a situation. Each person should leave the classroom situation with his or her plan
for solving the problem, and none should be falsely legitimized. The outcome of a situation may
not reflect what is, or is not, a good solution. You must remember that because a company did
something different from your recommendations and was successful or unsuccessful, this is not
an indication of the value of your approach.
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