BUSINESS MODEL INNOVATION
Cross-Functional MBA Course,
Created via Integration of BUSML 7218 (New Product Management)
and BUSMGT 7251 (Operations and Technology Strategy)
I. Course Instructors Aravind Chandrasekaran – Assistant Professor in Management Sciences
Office
Fisher 650
Telephone
(614) 292-4223
Fax
(614) 292-1272
Email
chandrasekaran.24@osu.edu
Office Hours
Tuesdays 5-5:30 pm or by appointment
Deborah Mitchell – Clinical Associate Professor in Marketing
Office
Fisher 512
Telephone
(614) 531-9992 (phone or text)
Email
mitchell.1120@osu.edu
Office Hours
Tuesdays 5-5:30 pm or by appointment
II. Course Materials A. Course Packet (CP), available through Harvard Business School Publishing. The packet
contains Harvard Cases and other reading materials. It will be available for purchase via a
link at the Carmen course website. (Note: Students are required to participate in an in-class
collaborative innovation game, “Launching Super Juice,” played on November 25, 2014.)
These materials will be provided separately.
B. Supplemental Reading Materials: Other Readings (HBR articles, other articles and notes)
will be provided by the instructors as posted at the Carmen website. The two Carmen
websites are now integrated and you will see only one class website (BUG 7251). Both the
instructors will have access to this website.
III. Course Overview and Objectives
An essential element of any business model is the design and the delivery of services and goods.
Many organizations are able to perform this function effectively in the short-term. But only a few
organizations demonstrate sustained performance over an extended period of time. We refer to
these organizations as pioneers in business model innovation. Business model innovation refers to
the ability to not only manage your current products, services and customers but also strategically
drive innovation and growth for the future by investing in operational and marketing capabilities.
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This integrated course has two broad objectives:
1) Develop a unifying framework that reconciles theories from operations & technology strategy
with those tied to product management on how to propel business model innovation in your
organization.
2) Equip students with hands-on innovation skills through the development of a new business
model, including the creation of a proposed new product or service and its launch plan.
To reflect these objectives the format of the course rests on two approaches. First, cases and other
material address various issues that affect an organization’s performance—including technology
decisions, design decisions, service innovation, supplier innovation, growth challenges and social
innovation issues.
Second, students go through several of the activities of developing an innovative new offering or
initiative in small teams, from the “fuzzy front end” to planning for launch. This practical, handson aspect of the course allows students to:

Understand the process of developing an innovation (product, service or initiative) within the
larger context of organization-wide innovation.

Learn how to integrate customer knowledge and operational capabilities into the design and
development process.

Learn how to integrate cross-functional frames and demands, including the role of marketing as
well as operations at various key points in the design and development process.

Learn and apply concepts and tools appropriate for the design and development of new products
and services
IV. Bases for Grading
Grade Components and their Contributions to Final Grades
Students in this combined course will receive two final grades (one for BUSMGT 7251 and one
for BUSML 7218). Across the semester your performance on three key components will
determine your grade in each course: (1) Final Exam, (2) Team Project (including interim project
deliverables and final project presentation/deliverable), and (3) Class Participation, In-Class
Collaboration Game and In-Class Experiments. How each of these components contributes to
the final grades received in the two courses are shown as follows. Note that the total amount of
points students can earn across the semester = 1000 points (500 points toward each course).
As shown in the following table, the team project is weighted more heavily in the BUSML 7218
final grade than it is in the BUSMGT 7251 grade. The final exam is weighted more heavily in
the BUSMGT 7251 grade than it is in the BUSML 7218 grade. The component consisting of
class participation, simulation and in-class exercises carries the same weight in BUSML 7218
and BUSMGT 7251 grades.
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Course
Component
Final Exam
Team Project
 Interim Deliverable 1
 Interim Deliverable 2
 Interim Deliverable 3
 Interim Deliverable 4
 Final Presentation, Report
Class Participation,
Collaborative Game,
In-Class Experiments
Total Points
(out of maximum of 1000)
Contribution tied to
BUSML 7218
100 points
(300 points total, broken
down across interim and final
deliverables as shown)
30 points
30 points
30 points
30 points
180 points
Contribution tied to
BUSMT 7251
300 points
(100 points total, broken down
across interim and final
deliverables as shown)
10 points
10 points
10 points
10 points
60 points
100 points
100 points
500 points
500 points
The final exam and team project count differently toward the course grades because course
materials delivered by Dr. Mitchell and Dr. Chandrasekaran tend to directly align more with one
or the other. While all the sessions are relevant to the team project and final exam, most sessions
led by Dr. Mitchell and the frameworks / tools presented in them will be more directly used in
the team project.
A. Final Exam
The final examination will be a combination of case analyses and essay questions. The material
for these exams can be based on anything covered in the lecture, text, other assigned readings
and videos and guest presentations. This will be a take-home exam. NO MAKE-UP, LATE OR
EARLY EXAMS WILL BE GIVEN, EXCEPT IN THE CASE OF MEDICAL EMERGENCY. More details
will be given during the first week of the class.
B. Team Project
The team project is intended to replicate the entire design and development process of a new
product, service or initiative. Although 14 weeks may seem to be a short time horizon, often
product or service development must be completed in a similar window.
You will need to form a 5-7 person team. Please note, there can be no teams with fewer than five
members. Please take the time to put together a team that will work together well in terms of
schedules, work places, and different skills. Across the semester and based on a structured approach,
as a team you will identify an opportunity for user-focused innovation, gather ethnographic data,
brainstorm ideas and translate the identified customer needs into a product or service concept and
identify operational capabilities to develop and launch your product or services. You will refine and
validate the concept by building a prototype (as realistic a mock-up or service blueprint as you can
get) and conducting tests with the target users. At key milestones you will turn in an interim
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deliverable, and receive feedback from both the instructors (See milestone questions for specific
templates for these deliverables). At the end of the Semester you will make a presentation as well as
turn in supporting materials that reflect your project work.
Please note, the team project requires focus on creating a new offering that is designed to
deliver superior value to a specified customer/user group. Your customers can be external or
internal depending on the type of innovation. A business case for the adoption of your
innovation, including the supporting financial logic, is required as part of the final
deliverable. You must have a clear target “customer” who will (or will not) perceive superior
value in the adoption of your innovative new offering. You must also have a “sound”
approach to design and deliver your product or service offering.
Here is an overview of the different steps, milestones and deliverables for the team project.
(Each deliverable should be submitted to Dropbox by the date listed below):
Date
Milestones and Deliverable (the latter are due by 5:00 pm in Dropbox)
Week 1
Due: List of team members and a team name (you don’t want to be just a number!)
(September 3)
Week 2
(September 9)
Due: Initial User / Customer Insights (Outputs of Observation and Empathic
Inquiry Related to Your Project; 6 pages or slides max in length, not including
photos and/or videos)
To conduct the observational research:
 As a team, choose a focus area for new product or service development. Be
specific in your definition of product or service category (e.g., think “Assisted
Living,” not “Institutional Facilities”…think “Oral Care,” not “Personal Care”
or “Consumer Packaged Goods”).
 Individually, find a venue for observation that will tell you something interesting
about people’s needs in your chosen category. Remember and use the guidelines
provided in class—at this point you are trying to observe and engage in
empathic inquiry solely to surface needs and gain surprising insights—NOT
to generate solutions or establish that you have an idea that is better than the
“competition” or status quo.
 Pick a place where you can see mainstream needs, extreme needs, cultural
attitudes and/or analogous behavior.
 Take 3-5 (or more) photos and/or shoot some video. Make notes about the
place and how people are interacting in the space.
 Make three interpretations of what you see. Don’t just stay at the easilyobserved surface level. Peel back the layers. Go deep. If you talk to any
consumers or users, utilize the principles of empathic inquiry.
 As a team, come together and synthesize all your different observations, “a-has,”
and so on. Using the tools provided in class, look for patterns, etc.
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

Summarize your process, what you learned and your most valuable insights.
Print out (samples of) your data, plus your interpretations & summary P.o.V.
(problem statement).
Week 5
Due: Outputs of Ideation and Initial Screening: Top 3 Concepts (6 pages or
(September 30) slides max)
To generate ideas, utilize a variety of the methods discussed in class and assigned
readings. Based on preliminary testing and screening, identify three concepts that
merit further consideration for product or service design. Make sure that all three
are relatively equal in their attractiveness at this point (i.e., do not have a preferred
idea and then include two “straw man”-type ideas to simply meet the requirement
for three ideas at this stage.
Week 8
(October 21)
Due: Proposed Concept with Initial Value Proposition and Supporting
Rationale (10 pages or slides max)
Based on subsequent screening and evaluation of the three concepts selected
previously using frameworks and tools from class, select your project concept and
research the marketplace or environment in which it will compete. From the users’
point of view, what are the next best options to adoption of your concept? What
and/or who are you competing with? How will the product or service be made?
What are some operational challenges/constraints do you anticipate during the
development process?
Your deliverable needs to include an analysis of the category, initial value
proposition (which may be modified later), and a description of your concept
screening and evaluation process (Why did you choose that concept? What are the
advantages and disadvantages of the product or service concept compared with the
status quo or other options?).
Week 11
(November 18)
Due: Outputs of Structured Prototyping; Draft Launch Plan
(max length of draft launch plan = up to 20 pages or slides)
A central part of new product or service development is the creation of a physical
prototype and plan on how to make or design the product or service. The prototype
may be a mock-up made with cardboard, plastic, clay, or whatever else you may
wish to use to “form” your idea (if it is a service it may be a storyboard or service
blueprint of the experience).
There are two elements of this Week 11 interim deliverable:
(1) Turn in a summary (one page max) on what you have learned from consumer and
stakeholder feedback regarding your prototype.
Include descriptions of any
modifications or other responses you’ve made in light of the feedback; attach a photo or
other representation of your current working prototype to the 1-page summary.
(2) Also turn in a year-one launch plan, including your market forecast and
reflecting your decisions about marketing and operational issues tied to launch.
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Your launch plan should be informed by your previous market research and the
consumer and stakeholder feedback on your product prototype. If your innovation
involves an internal initiative, your year-one launch plan should address internal
marketing and change management as well as operational issues.
Week 14
(December 9)
Project Presentations & Final Report
Please make sure to fully document the development process, including ideas which
are not subsequently acted upon. Your overall team project grade will be based on
ongoing deliverables, the final project report (created in part from weaving the
weekly deliverables into one document), the in-class presentation during the final
session, and peer evaluations. An outline for the presentation as well as your final
project write-up is shown on the project template document (See Carmen).
An important element of the presentation is its persuasiveness. The frame you
should adopt for the presentation is one of a “pitch”: You are trying to persuade key
decision-makers (e.g., a senior executive leadership team; investors; your boss; etc.)
that your proposed innovation is worthy of investment, resources and support.
General guidelines for successful projects are as follows:

Your innovation must be able to create significant value for a target group—value that can also
be captured. This is an obvious and critical aspect of being able to make the business case for
your proposed innovation. One good way to verify a market need is to perform a competitive
review and identify existing products or services (or the status quo) that try to meet the need.
Your innovative offering need not be a variant of an existing product or service, but the market
need addressed by your product should be clearly evident. The offering does not have to have
a tremendous economic potential, but should at least be an attractive opportunity for a firm.

There should be a demonstrable way to make or deliver your product and service offering.
Having an idea or having a customer without the operational capability to make the product or
design the service is useless. A successful project must involve operational decisions on where to
make, how to make, how to trigger a change in the system (for service design), how to design
your supply chain networks etc.

The new offering should require no basic technological breakthroughs. We do not have time to
deal with large technological uncertainties. In fact, we are more concerned that you have a
specific market need in mind and the right approach to make your product or service than that you
attempt to develop new technologies.

You should have access to more than five potential users of the product or service (more than
20 would be nice). You will need to talk with them, observe them and visit them with your
prototypes. Research, including repeated collection of primary data, is essential.

The most successful projects tend to have at least one team member with strong personal
interest in the target market and knowledge about the product/service functions.

Many products are really not very well designed. (See for example the badly designed
products documented at www.baddesigns.com.) Thus, if you choose to focus on product
innovation that satisfies these general guidelines, you will likely be able to develop a product
that is superior to what is currently on the market!
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C. Class Participation and In-Class Collaborative Game
Class Participation, including Cases and Exercises as well as In-class Experiments
Your class participation grade will depend heavily on the quality of comments made during
class, particularly during case discussions. A combination of Harvard Business Cases, Harvard
Business Review (HBR) articles and other mini-cases will be used to guide our class discussions.
You are expected to read these cases before class. Much of your learning will occur in preparing
and discussing these cases in class. During these discussions, we will also spend some time
evaluating your organization’s (current or previous) operational capabilities based on these
topics. Therefore, it is necessary to reflect on these readings and gather some background
knowledge before coming to class.
Quality of participation, i.e. insightful comments or questions, is much more important than
quantity. Also, a consistent level of participation throughout the semester will receive a much
higher score than a high level of participation for just a few classes. You are encouraged to check
with the instructors periodically to find about your participation grade. We have a no-laptop
policy in our class other than during the in-class game played on November 25. .
In-class Collaborative Innovation Game, “Launching Super Juice”
This game will be an opportunity to integrate the operations and marketing material learned
throughout the course prior to the final course wrap-up and team presentations. More details
regarding the game will be discussed in class. Note that the game will be played on November
25, 2014. The instructors will provide registration details before the game.
V.
Honor Code
Any use of case analyses or any other material in any format from other sections of this course or
any course taught at any time in the past or present will be considered a violation of the honor
code. The Ohio State University and the Committee on Academic Misconduct (COAM) expect
that all students have read and understand the University’s Code of Student Conduct, and that all
students will complete all academic and scholarly assignments with fairness and honesty.
Students must recognize that failure to follow the rules and guidelines established in the
University’s Code of Student Conduct and this syllabus may constitute “Academic Misconduct.”
VI.
Disability Accommodation
If you need an accommodation based on the impact of a disability, please arrange an
appointment with one of the instructors as soon as possible. We need to discuss the course
format and explore potential accommodations. We rely on the Office for Disability Services (150
Pomerene Hall) for assistance in verifying need and developing accommodation strategies. You
should start the verification process as soon as possible.
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Class Schedule
(Fall Semester, Term 1 & Term 2)
Readings found in Course Packet (CP) or posted at Carmen Website; AC – Professor Aravind
Chandrasekaran, Deb – Professor Deb Mitchell)
Introduction to the Course, Formation of Teams and Project Kickoff
Week 1: Tuesday (September 2)
Topic and Instructor(s): Introduction to Business Model Innovation (AC & Deb)
Read: Reinvent your Business before it’s Too Late: Watch out for Those S-curves (CP)
Four Steps to the Epiphany, Chapters 1 and 2 (Carmen)
Needfinding (Carmen)
Direct Observation: Some Practical Advice (Carmen)
Project Activity: Team Formation and Discussion of First Team Assignment
Due (after class): List of Team Members with Contact Information (post to Dropbox)
Front-end of the S-curve: Idea Generation & Operational Requirements for Innovation
Week 2: Tuesday (September 9)
Topic and Instructor(s): Ideation as a Response to Opportunity (Deb)
Read: Breakthrough Thinking from Inside the Box (Carmen)
Creative Sparks (Carmen)
Finding Your Innovation Sweet Spot (Carmen)
Synectics: A Problem-Solving Tool for Educational Leaders (Carmen)
In-class Project Activities: (a) Debrief of First Team Assignment (two teams randomly
chosen to share assignment outcomes); (b) Idea Generation Application
Due: Team Assignment, “Initial User / Customer Insights” (post to Dropbox prior to
class, plus bring a digital copy to class in case your team is selected to present).
Week 3: Tuesday (September 16)
Topic and Instructor(s): Managing NPD Teams (Deb)
Read: Cross-Functional Product Development Teams… (Carmen)
New Product Development Teams Success… (Carmen)
Skim: Pinto (Chapter 3), Project Selection and Portfolio Management (Carmen)
In-class Project Activity: Scoring Application
Due: Individual results from online DISC assessment (bring summary to class, be prepared to
discuss) (http://www.123test.com/disc-personality-test/ )
Week 4: Tuesday (September 23)
Topic and Instructor(s): Operational Requirements for Innovation (AC)
Read: Creating Project Plans to Focus Product Development (Carmen)
Skim: The Role of Organizational and Project Context for High-Tech R&D Projects
(Carmen)
Read: Innovation at 3M (CP)
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Week 5: Tuesday (September 30)
Topic and Instructor(s): Innovation Strategy and Disruptive Innovation Challenges (AC & Deb)
Read: Catching the Disruptive Wave (Carmen)
Skim: Business Schools Disrupted – NY Times” (Carmen)
Read: Braun: The Syncro Shaver (B) (CP)
Due: Team Assignment, “Outputs of Ideation & Screening: Top 3 Concepts” (Post to Dropbox)
Ramp-up your S-curves: From Concepts to Execution – Challenges and Opportunities
Week 6: Tuesday (October 7)
Topic and Instructor(s): Methodological Issues in Consumer/User Testing and Design (Deb)
Read: Concept Testing Note (Carmen)
A Practical Guide to Conjoint Analysis (Carmen)
Skim: Pretest Market Models: A Critical Evaluation (Carmen)
Read: A Giant Among Women (CP)
Week 7: Tuesday (October 14)
Topic and Instructor(s): Tradeoffs in Operations (AC)
Read: Eli-Lilly and Company: The Flexible Facility Decision (CP)
Ritten-House Medical Center (CP)
Week 8: Tuesday (October 21)
Topic and Instructor(s): Design Integration Challenges in Manufacturing and Healthcare (AC)
Read: BMW: The 7-Series Project (CP)
Skim: Healthcare Fanatics (Carmen)
Read: Apollo Medical Center (Carmen)
Read: Has Patient Experience Gone Too Far to the Right? (Carmen)
Due: Team Assignment, “Proposed Concept with Initial Value Proposition and
Supporting Rationale” (Post to Dropbox)
Week 9: Tuesday (October 28)
Topic and Instructor(s): Operational and Marketing Requirements for Growth (AC and Deb)
Read: Jet Blue Airways: Managing Growth (CP)
Launching Krispy Natural (CP)
Final Section: Product Launch and Transitioning to Next Curves
Week 10: Tuesday (November 4)
Topic and Instructor(s): Creating the Plan for Launch (Deb)
Read: Note on Innovation Diffusion: Rogers’ Five Factors (Carmen)
Eager Sellers, Stony Buyers” (Carmen)
Hasbro Games – Pox (A) (CP)
Week 11: Tuesday (November 18)
Topic and Instructor(s): Managing Supply Chain Decisions & Supply Chain Disruptions (AC)
Read: Restoring American Competitiveness (Carmen)
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Skim: Does America Really Needs Manufacturing? (Carmen)
Read: Renesas Electronics (CP)
Due: Team Assignment, “Output from Prototype Testing plus Launch Plan” (Post to Dropbox)
Special Topics and Course Wrap-up
Week 12: Tuesday (November 25)
Topic and Instructor(s): Collaborative Innovation Game – Launching Super Juice (AC and Deb)
Week 13: Tuesday (December 2)
Topic and Instructor(s): Social Innovation (AC and Deb)
Read: Disruptive Innovation for Social Change (Carmen)
Mistry Architects (A) (CP)
Samasource: Give Work, Not Aid (CP)
Week 14: Tuesday (December 9) - Team Presentations (AC and Deb)
Due: PowerPoint and Supporting Appendices / Materials (Post to Dropbox plus bring
two handout copies of presentation deck to class)
Date and Time TBD - Final Exam
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Business Model Innovation: Detailed Course Outline
September 2
Introduction to Business Model Innovation
Readings:




Reinvent your business before it’s too late: Watch out for those S-curves
Four Steps to the Epiphany (Chapters 1 and 2)
Needfinding
Direct Observation: Some Practical Advice
Class Topics & Key Learning Concepts:




Welcome and introduction to business model innovation, class structure, procedures and
assignments.
Challenges at various parts of the S-curves.
Evolution of NPD Models.
Team Formation and Preparation for Upcoming Team Assignment.
→ Due: List of Team Members with Contact Information (post to Dropbox after class)
September 9
Ideation and Response to Opportunity
Readings:




Breakthrough Thinking from Inside the Box
Creative Sparks
Finding Your Innovation Sweet Spot
Synectics: A Problem-Solving Tool for Educational Leaders
Class Topics & Key Learning Concepts:



Review of team assignment and discussion of key elements of “Inspiration.”
Introduction to “Ideation” and associated methods.
In-class activities, application of ideation methods.
→ Due: Team Assignment, “Initial User / Customer Insights” (post to Dropbox prior to class
plus bring a digital copy to class in case your team is selected to present)
September 16
Managing NPD Teams
Readings:



Cross-Functional Product Development Teams, Creativity and the Innovativeness of New
Consumer Products
New Product Development Team Success: The Team’s Knowledge Network Makes a Real
Difference
Project Selection and Portfolio Management (SKIM)
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Class Topics & Key Learning Concepts:
 Maximizing the effectiveness of NPD teams: key dimensions to consider.
 Importance of generative vs. evaluative processes during ideation.
 Screening approaches.
 In-class activities (application of individual DISC results; team application of screening /
scoring approaches).
→ Due: Each student should complete the DISC assessment at http://www.123test.com/discpersonality-test/ prior to class. Each student should print out and/or summarize briefly their
results (e.g., on a one-page sheet); bring assessment results to class and be prepared to discuss.
September 23
Operational Requirements for Innovation
Readings:


Creating Project Plans to Focus Product Development (Carmen) Skim: The Role of Organizational and Project Context in Managing High-Tech R&D projects (Carmen) Case: Innovation at 3M
Case Discussion 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 Lead User research process differ from and complement other traditional
marker research methods?
3. Has the Medical-Surgical team applied the lead user research process successfully? Why
and Why not?
4. What should the Medical-Surgical Lead User team recommend to Dunlop: the three new
product concepts or a new business strategy? What are the risks of the new lead user
process at 3M? What are the risks to the medical-surgical business unit?
Class Topics and Key Learning Concepts:
 How to manage different types of innovation
 Designing appropriate team and organizational context.
 Categorizing innovation based on goals and their nuances
 Introduction to lead-user innovation – pros and cons
September 30
Disruptive Innovation Challenges
Readings:
 HBR: Disruptive Technology: Catching the wave (Carmen)
 Skim : “Business School Disrupted” NY Times (Carmen)
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Discussion Questions tied to Readings
1. What is disruptive innovation? What are other examples on disruptive innovation
(especially in a service context)?
2. How could we identify disruptive innovation?
3. How to operationally manage disruptive innovation?
Case: Braun: The Syncro Shaver (B)
Case Discussion Questions:
1. Does the Syncro Shaver reflect disruptive innovation? Why or why not?
2. How should this “revolutionary new system” be communicated? Provide support for
your recommendations.
→ Due: Team assignment, “Outputs of Ideation & Screening: Top 3 Concepts” (post to
Dropbox prior to class)
October 7
Methodological Issues in Consumer and User Design
Readings:
 Concept Testing Note
 A Practical Guide to Conjoint Analysis
 Pre-test Market Models: A Critical Evaluation (SKIM)
Case: A Giant Among Women
Case Discussion Questions:
1. Does Giant use a “systematic” approach to design and testing? If so, how would you
characterize this approach?
2. Would it be appropriate for Giant to use (even occasionally) conjoint analysis in their
design and testing? Why or why not?
3. Would you use different methods for testing with technology concepts / designs as compared
to Giant’s testing with concepts / designs related to biking? Why or why not? In each case
(technology and biking), which methods would you be more likely to use?
4. Evaluate the notion of testing products and branding while using retail as a platform.
Who else has done this? Who has tried to do it, and failed? Why?
Class Topics and Key Learning Concepts:
 Understand and apply the strengths and limitations of testing approaches across a variety
of situations.
October 14
Tradeoffs in Operations
Case: Eli Lilly and Company: The Flexible Facility Decision (CP).
Case Discussion Questions:
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1. How has the competitive environment in pharmaceuticals been changing over the past
few years? What are the implications for the role of manufacturing with Eli Lilly?
2. How does each facilities option affect Lilly’s cost structure capacity management and
product development capabilities?
3. What type of flexibility does the “flexible facility” provide? What is the value of this
flexibility to Eli Lilly? How much is Lilly paying for this flexibility?
4. Given Lilly’s strategic goals, which option should Steve Mueller recommend? Are there
other options that Lilly should be contemplating? Is so, what are they?
Case: Managing Orthopaedics at Rittenhouse Medical Center (CP)
Case Discussion Questions:
1. What is your assessment of the 3B Orthopaedics model relative to that used for typical
procedures performed by the faculty practice surgeons? Which is better? What are the
key criteria for your assessment?
2. What are the possible sources of conflict between the two models of care? How might
they be reduced?
Class Topics and Key Learning Concepts:
 Understand the concept of tradeoff in operations. How to avoid tradeoffs?
 Challenges in service settings in managing multiple objectives.
 Structural and Infrastructural Elements.
October 21
Design Integration Challenges in Manufacturing and Healthcare
Readings:
 Health Care’s Service Fanatics: How the Cleveland Clinic leaped to the top of patientsatisfaction surveys (Carmen)
 Has Patient Experience Gone Too Far to the Right? (Carmen) Case: Apollo Medical Center (Carmen)
Case Discussion Questions:
1. What are some challenges in the current organizational design to delivering healthcare at Apollo? 2. What are some recommendations for Dwight Daniels? Can patient experience and conformance
quality be integrated at the care delivery level? Case: BMW: The 7-Series Project (A)
Case Discussion Questions:
1. What are the causes and consequences of BMW’s quality problems with newly launched
products? What should be done to improve “launch quality”?
2. What changes would you recommend in the way BMW develops new models? What
attributes of newly launched products would you expect to improve as a result of these
recommendations? Which attributes might deteriorate?
3. What recommendations would you make to Chairman von Kuenheim regarding BMW’s
strategy to compete against new Japanese entrants into the luxury car market?
Key Learning Concepts:
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


Understand integration issues in both Manufacturing and Healthcare.
Design for Manufacturing principles.
Integration challenges in healthcare. How to design operations to integrate multiple objectives.
→ Due: Team assignment, “Proposed Concept with Initial Value Proposition and Supporting
Rationale” (post to Dropbox prior to class)
October 28
Operational and Marketing Requirements for Growth
Case: Jet Blue Airways: Managing Growth
Case Discussion Questions:
1. How would you describe JetBlue’s operations strategy prior to November 2005 adoption
of the E190?
2. Compare the economics of the E190 and A320 for Jet Blue? What are the key drivers of
profitability for each type of plane?
3. Do you agree with JetBlue’s decision to add E190 to its fleet? What is the rationale for
your decision?
4. How should JetBlue slow down the growth of its fleet? Should it cut growth in A320
capacity or E190 capacity or both? Case: Launching Krispy Natural
Case Discussion Questions:
1. What is the problem in this case?
2. What do you think of the Pemberton strategic priorities? Do Krispy Natural crackers “fit”
with these priorities?
3. How do you read the test market data? Are we looking at the right indicators?
4. Should we go national? What share would you project, based on test results? Would you
change the plan (price? Push/pull money? Krispy reps?)
Key Learning Concepts:
 Understand the strategic implications of growth through operational diversification.
 Challenges associated with slowing growth of a young firm.
 Challenges in using brand extensions to achieve growth.
 Recognize the importance of perceived value to prospective consumers of a new product
vis-à-vis existing substitutes.
 Understand the assumptions and techniques for estimating markets and projecting sales.
 Appreciation of the high degree of uncertainty with new-product introductions and the
low “hit rate” in innovations for many firms.
November 4
Creating the Marketing Plan for Launch
Readings:
 Note on Innovation Diffusion: Rogers’ Five Factors (Carmen)
 Eager Sellers, Stony Buyers (Carmen)
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Case: Hasbro Games – Pox (A) (CP)
Case Discussion Questions:
1. Which of the two proposals do you support? Why?
2. Do you have any suggestions on how to modify the proposal you support to maximize the
adoption of POX (given the game’s novel characteristics)?
Key Learning Concepts:
 Understand factors that affect the rate of adoption among users / consumers.
 Understand how best to map product benefits to a marketing plan aimed at conveying
those benefits and overcoming barriers to adoption.
 Compare various communication approaches to launching a new product.
 Examine the scale and scope of the network relevant for adoption of an innovation with a
social or “network externality” component.
 Understand the role of “buzz” in affecting new product adoption; conditions for buzz ro
be more vs. less effective as a communications strategy.
 Understand how a viral campaign can be integrated into a traditional go-to-market
strategy.
November 18
Managing Supply Chain Decisions and Disruptions
Readings
 HBR: Restoring American Competitiveness (Carmen)
 Skim: Does American Really Need Manufacturing? (Carmen)
Case: Renesas Electronics and the Automotive Microcontroller Supply Chain
Case Discussion Questions:
1. How would you characterize customer demands for Renesas products? Does automobile
industry place unique demands on Renesas, compared to others like consumer products?
2. Why is Renesas’s product portfolio so fragmented?
3. How different are the economics of serving “Company A” vs. “Company B”?
4. What alternatives should Renesas consider to reduce its vulnerability to future disruptions?
Key Learning Concepts:
 Strategies for outsourcing, offshoring.
 R&D and Manufacturing
 Building capacity cushion in supply chains.
 Disruptions Mitigation strategies.
→ Due: Team assignment, “Output of Structured Prototyping, Testing and Launch Plan”
(post to Dropbox prior to class)
Collaborative Innovation Game: Launching Super Juice
November 25
(More details on the game will be given before class.)
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Key Learning Concepts:
 Importance of learning and iteration in a complex cross-functional project
 Collaboration between functions
 How to design an effective “search strategy”
December 2
Social Innovation
Readings
 Disruptive Innovation for Social Change (Carmen)
Case: Mistry Architects
Case Discussion Questions:
1. What is the vision Sharukh and Renu Mistry have for Mistry Architects?
2. Who is the client for the tsunami villages being designed by the firm?
3. How should the firm respond to the villagers request for a reinforced cement concrete roof?
4. How might an approach rooted in Design Thinking change the way the situation is framed, and
how innovation might occur? For example, what is the real need? (Describe using the “P.o.V”
framework.) What would synthesis, brainstorming and experimentation look like?
Case: Samasource – Give Work Not Aid
Case Discussion Questions:
1. How should Samasource fund their growth going forward? Should the company create
separate for-profit and non-profit business? Why?
2. Why doesn’t Samasource own their delivery centers when most competitors do? Is this a
good choice going forward?
3. How can Samasource manage improvement & learning in their delivery centers going forward?
4. How can Samasource continue to acquire top talent? What is the recruiting pitch that you
would make as Leila?
Key Learning Concepts:
 Issues in applying innovation models and approaches to the social sector.
 Balancing tradeoffs between financial and non-financial concerns.
 Microwork and Operations.
 Operations in not-profit settings.
December 9
Team Presentations
→ Due: Each team will present in class, plus post PowerPoint and Supporting Appendices /
Materials to Dropbox. Be sure to include your prototype or a representation of it as part of your
presentation. (Also please bring two handout copies of presentation deck to class for instructors.)
TBD
FINAL EXAM
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