BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University BUS M&L 855 INNOVATION PRACTICE Masters of Business Administration Program Max M. Fisher College of Business The Ohio State University Winter 2012 Call Number: 8749 Section 1:Tuesdays, Thursdays: 3:30-5:18 p.m. Room: 315 Gerlach Hall DRAFT: Pending final acceptance of guest speakers. All readings however are final as are instructions for purchasing and downloading readings. Faculty Instructor: Michael Bills Office: 252 Mason Hall Office Hours: by appointment Phone: 614.226.0072 Email: bills_36@fisher.osu.edu I. COURSE HIGHLIGHTS: The purpose of this course is to provide students with the opportunity to develop skills, and understanding of, the theory and application of innovation processes and a framework for its commercial application across various types and formats of businesses. The course explores emerging trends in innovation methodologies and the manner in which it has been successfully (and unsuccessfully) to the development of new and existing products, services, brands, business concepts and processes. This course is intended for graduate-level students with diverse business interests who are desirous of working on innovation initiatives within multi-disciplinary Innovation Teams that are increasingly responsible for this type of development and creation. II. COURSE DESCRIPTION: Leading edge companies, in reaction to disruptive and seismic shifts in the marketplace and in order to ensure continued viability, are increasingly investing in innovation. This ever-evolving effort to differentiate the perception of both their brand and products and services is a relatively new approach to ideation and creation that has required the establishment of new practices and methods and the inclusion of multiple areas of expertise that are radically different from the traditional R& D - based, siloed structures and linear work/product delivery processes historically found in most firms. The course explores: The history of new product, service and brand development Evolving definitions of innovation Types of innovation Levels of innovation Processes & methodologies for application Problem solution and resolution The role of creativity and middle-brained thinking Organizational & team structures Work styles & multi–disciplinary, cross - functional collaboration Differentiation from traditional R&D process The role of the consumer in new concept creation The “open source” and open innovation 1 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University Differences between invention and innovation Leadership styles and approaches that facilitate innovation The course examines various types of innovation including - product, service, digital, brand, process and concept innovation applied to a cross-section of businesses categories and sectors including: - Information technology Online/digital Hard-line consumer goods Soft-lines apparel and fragrance Computing and consumer electronics Fast moving consumer goods Beverage Food Service These topics are addressed by a combination of the course text, chapter excerpts from supporting texts, case studies, three academic articles and five general interest articles. There are also individual assignments and a team assignment. III. COURSE MATERIALS 1.) Primary Course Text: “The Game Changer” – How You Can Drive Revenue And Profit Growth With Innovation Author: AG Lafley (CEO - Procter & Gamble) with Ram Charan 2.) Course Packet: Required reading packet available in downloadable, electronic format from Harvardbusinessonline.com. Includes readings (articles and book/chapter excerpts) and case studies. NOTE: includes copyrighted material and therefore requires that each student purchase his or her own copy of the materials. All other required readings will be distributed on the first day of class. SEE INSTRUCTIONS FOR PURCHASING BELOW ON PAGE 6 3.) Additional and supplemental readings - may be handed out in class throughout the duration of the course. PLEASE SEE PAGE SIX FOR OTHER READINGS TO BE DOWNLOADED FOR FREE ONLINE AND THOSE THAT ARE HANDOUTS IN CLASS. IV. COURSE APPROACH The class is intended to be highly interactive and discussion-oriented therefore regular attendance is mandatory and vital to successful completion of the course. Critical participation and discussion are an important part of the course and therefore requires active involvement and contribution from all individuals enrolled in the course. An additional objective is for all participants to add to a growing body of work and opinions regarding innovation through both the individual and collaborative collection and delivery of assignments. This body of work will include examples of actual businesses and specific products, services or other concepts that can be considered and argued to be “innovative” as based upon the definitions provided by leading academics on the subject. The practice of innovation is both an art AND a science and as such is less quantifiable than many other business practices and areas of study. It is also an evolving practice. As such, no one body of writing or philosophy can be taught or learned that has been deemed the definitive authority. The course therefore reviews various perspectives and opinions on the topic. Therefore students must come to class fully prepared each day. Full preparation means that you have carefully read, in full, the entire reading assignment, and/or have completed any and all activities and/or other assignments as described in the course outline. Further you should be able and prepared to critically discuss the subject matter, apply it to a real or hypothetical case and be able to support and defend your perspective to the class. Successfully completing this course requires that you are willing and able to make such a commitment for preparation of this type and level. 2 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University V. COURSE REQUIREMENTS & GRADING Standards of Integrity and Conduct: each student in this course is expected to be familiar with and abide by the principles and standards set forth in The Ohio State University’s code of student conduct and code of academic conduct. You can review these documents or download a .pdf version at: http://studentaffairs.osu.edu/resource_csc.asp and http://www.gradsch.osu.edu/Content.aspx?Content=10&itemid=1 It is also expected that each student will behave in a manner that is consistent with the Fisher Honor Statement, which reads as follows: “As a member of the Fisher College of Business Community, I am personally committed to the highest standards of behavior. Honesty and integrity are the foundations from which I will measure my actions. I will hold myself accountable to adhere to those standards. As a future leader in the community and business environment, I pledge to live by these principles and celebrate those who share these ideals.” While most students have high standards and behave honorably, like every academic institution we sometimes encounter cases of academic misconduct. It is the obligation of students and faculty to report suspected cases of academic and student misconduct. Students can report suspected violations of academic integrity or student misconduct to faculty or to a program’s leadership. All reported cases of academic misconduct are actively pursued and confidentiality is maintained. Grading Policy and Practices: With the objective of establishing as dynamic and effective a learning environment as possible, the course requires a commitment on your part not only to attend all classes, but also to prepare fully and to participate. We will work together to create an environment in which open, rigorous discourse is the standard. Thus, each of you must be willing not only to share your ideas and analysis with your colleagues, but also be open to challenges of those ideas. The following are the fundamental principles for grading in this course: The requirements for this course are identical for everyone. This means it is not possible to “make up” for poor performance through “extra credit” work. Any exams cannot be retaken or taken at times other than the scheduled period except under circumstances of extreme hardship and as approved by the instructor. As required by school policy, grading will be based on relative rather than absolute standards. The average grade in this course will be a 3.5 or lower. A “B” (3.00) average in core courses and overall is required to earn a Fisher MBA degree from The Ohio State University. It is possible to earn any of the official OSU grades, from an “A” to an “E”, in this course. Sometimes cases of academic misconduct arise due to apparent confusion over the degree of collaboration allowed on assignments. University policy clearly states that it is each student’s responsibility to resolve issues that appear ambiguous directly with the faculty members. However, to help create clarity and avoid potential misunderstandings, we use the following letters to indicate collaboration allowed on each assignment: 3 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University N: No Collaboration of Any Kind Allowed T: Collaboration Only with Teammates Allowed A: Collaboration with All Fellow Students Allowed U: Unlimited collaboration with All Fellow Students and Other Parties Allowed There are 300 possible points to be earned through assignments for this course. Points are allocated as follows: • Class Participation - contribution to discussion: 60 points (U, collaboration with all fellow students) Value: 20% of overall grade. • Team Assignment/Group Project (1): 90 points total includes impact of peer assessment (see below) (T, team only) - Value: 30% of overall grade. • Individual Assignment (1): 60 points (N, no collaboration) -Value: 20% of overall grade. • Mid-Term Exam: Test: 90 points (N, no collaboration) - Value: 30% of overall grade. Class Collaboration: Attendance and contribution are extremely important. Attendance at each session is mandatory (see below). Most of your learning will occur in preparation for and participating in the case discussions. The course is designed to allow cumulative insights of your colleagues to contribute to the evolution of the class’s learning. Thus the entire in-class learning experience relies on each of you taking responsibility for contributing to the discussion. Class contribution will comprise a significant portion of your grade. As is the case in real-world work environments, you are judged by what you contribute. Even if you feel that you know the material, unless you share your insights with the class, no one can adequately evaluate your preparedness and contribution. It is only through consideration of many diverse opinions and viewpoints that we will move toward a greater shared understanding of the multi-dimensional and horizontal material that this course includes. Each day I may ask one or more individuals to “open” the discussion with a summary of the key issues along with his or her analysis of those issues. It is important that each of you be prepared to respond to the invitation to open discussion. In the unlikely event that you are not prepared for class, then please let me know beforehand so that we might spare both of us the embarrassment of my calling on you. You should be able to identify the key issues, problems and/or opportunities discussed in the article or case, to articulate and evaluate alternate approaches or perspectives, and to describe your view. It is important to appreciate that every student is an important participant in the class discussion, and that it is equally important that each of us listen carefully to one another and attempt to build on or constructively critique prior comments. Please resist the temptation to jump to topics that are not specifically open for discussion. It is also important to note that you are rewarded for your contribution, not just for your participation. Your contribution score will be based on how much you contribute to the class’s learning, not just by how much you talk in class. Some of the specific things that will have an impact on effective class participation and on which you will be evaluated include: A willingness to take intellectual risks and to test new ideas, rather than contributing only “safe” comments (e.g. repetition of facts from cases or readings without analysis or conclusions or repeating comments that have already been made by someone else.) Contribution of points that are relevant to the discussion. Are they linked to comments of others and to the themes that the class is exploring together? Do the comments add to our understanding of the situation? Are they incisive? Do they cut to the core of the problem? 4 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University Is there a willingness to challenge the ideas that are being expressed in a compelling and intellectually sound manner? Does the participant integrate material from the past classes or the readings where appropriate? DO the comments reflect cumulative learning over the course and the MBA curriculum, or does the participant merely consider each case in isolation? Is theoretical material applied effectively and appropriately? Finally, I understand that for some participating in class can be an intimidating experience initially, and I will try to help you as much as I can. Attendance: It is imperative that each of you arrives to class on time and fully prepared each day. While on time attendance is crucial for ALL sessions, it is particularly import during sessions featuring Guest Lecturers, therefore late arrival or unannounced and unapproved absence will not be tolerated. This course features many guest lectures from senior and executive level professionals from leading firms who volunteer their time, and in many cases, cover their own expenses for travel and accommodation to and from our class. Therefore it is unacceptable unprofessional and disrespectful to take advantage of their time and contribution by arriving late to their presentations. Individual Projects: A document detailing the individual project assignments is attached at the end of this syllabus. Group Project: A document detailing the group project will be distributed on the first day of class. The Group Project is to be conducted in your assigned teams. The team deliverable will be a point presentation. Each team member will be assigned the same marks. Following the delivery and presentation there will be a peer assessment survey of individual contributions to team efforts. The outcome of the assessment can cause an individual’s score to be raised or lowered. Group projects will be due 24 hrs. prior to the beginning of the class on the assigned dates. Disability Policy: Students with disabilities or requiring special accommodations should work directly with The Ohio State University Office of Disability Services (ODS). ODS is located in 150 Pomerene Hall. The ODS phone number is (614) 292 - 3307. Grade Appeal Policy: Grades on exams and assignments are intended to reflect the overall quality of performance of the student(s). If you think your grade on an exam or assignment does not reflect the quality of your performance, you may submit a clear, written explanation of your reasoning within one week following the return of your assignment or test. The written document need not be long but it must clearly identify the problem or issue of concern. I will carefully consider all such appeals. There will be no grading appeals after the one-week deadline has expired. VI. SEATING ARRANGEMENTS Please sit in the same seat each day. This assists in the ability to keep track of class participation and facilitates interaction amongst the class. Please select your preferred seat at the first session and will make a seating chart on that day. VII. OFFICE APPOINTMENTS I will be available to discuss any concerns to you on an individual basis either after class or in my office. You may arrange mutually agreeable time to meet by emailing me. So that I am prepared please specify in your email, the general topic that you would like to discuss so that I may be prepared and so that we can maximize the effectiveness of our meeting. Meetings are typically scheduled in 15-minute windows. If you believe you require more time, please request a longer appointment. NOTE: All readings, including text chapters, articles, and cases as well as assignments are to be submitted, and/or read, studied, critically considered and completed PRIOR to the date and time listed in each week’s course 5 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University description. Assignments are to be submitted electronically to CARMEN no less than 24 hours prior to the beginning of the class in which they are due.. The following schedule is intended to provide all pertinent dates and the timing of required assignments, tests, and readings as well as the sessions featuring guest lecturers (dates subject to change). To order the readings, cases and articles listed that are available from Harvard Business Online please follow the directions provided below. All additional readings and chapters will be provided as handouts on the first day of class unless otherwise noted as a free, online download. To order the cases and articles as electronic downloads click on the link below to order the course materials: http://cb.hbsp.harvard.edu/cb/access/11531526 If you have not registered with Harvard Business Online, you will be required to do so. This URL will provide you with a list of required materials for use in this course. Note that product formats may differ; some may require that a hard copy be shipped to you via airmail. Electronic course materials are in PDF (Portable Document Format) and should be viewed with Adobe Reader, available free at www.adobe.com. Students can access PDF files of course materials via a link on Harvard Business Online for six months from the date of purchase. You will have immediate access to the materials upon placing your order, for subsequent access, you must login to http://harvardbusinessonline.org I hope you find this a convenient way to access your course materials. For technical assistance, please view the Quick Tips section or contact Harvard Business School Publishing at 1-800-810-8858 or 617-783-7700. They are open 8am-6pm Eastern Standard Time. They can also be reached at techhelp@hbsp.harvard.edu Additional Readings: Please also download the following readings at no cost: “Why $0.00 is the Future of Business”- Wired Magazine at: http://www.wired.com/techbiz/it/magazine/16-03/ff_free “How Apple Got Everything Right…” Wired Magazine at: http://www.wired.com/techbiz/it/magazine/16-04/bz_apple NOTE: additional reading packets will be handed out during the first week of class: - Chapter excerpt from “The Rise of the Creative Class” 6 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION WEEK ONE: Defining Innovation Section 1: Introductory lecture, team assignments and course overview Section 2: Game Changer – Chapter One The Innovator’s Dilemma – Clayton Christensen WEEK TWO: Adapting & Applying Creativity Section 3: Game Changer – Chapter Two Cradle to Grave Design at Herman Miller Rise of the Creative Class Chapter Four Section 4: Guest Speaker: Gil Cloyd, former Chief Technology Officer, Procter & Gamble and former Chairman, Board of Trustees, The Ohio State University WEEK THREE: Consumer-Centricity Section 5: Game Changer – Chapter Three Using Product Design Strategically to Create Deeper Connections IDEO Product Development Individual Assignment due Section 6: Guest Speaker: Urko Wood, Innovation and Growth Strategy Advisor, Ohio Practice Lead, Strategyn Consulting, Inc. WEEK FOUR: Innovation Process Section 7: Game Changer – Chapter Four Innovation Processes 12 Different Ways for Companies to Innovate Section 8: Guest Speaker: Christopher Celeste, Founder, Playaway WEEK FIVE; Applying Core Competencies Section 9: Game Changer – Chapter Five (Product) RED (A) How to Use Theories of Disruptive Innovation to Predict Industry Change Section 10: Mid-Term Exam Instructor: Michael Bills Fisher College of Business The Ohio State University WEEK SIX: Structure & Organization Section 11: Game Changer – Chapters Six & Seven How Apple Got Everything Right By Doing Everything Wrong Why $0.00 is the Future of Business Section 12: Guest Speaker: Dr. Clay Marsh, MD, Sr Assoc VP for Health Sciences Research; Vice Dean for Research, and Professor of Internal Medicine, The Ohio State University WEEK SEVEN; Measurement & Scalability Section 13: Game Changer – Chapter Eight Measuring and Managing the Innovation Strategy El Bulli: The Taste of Innovation Section 14: Guest Speakers: Jeni Britton Bauer – Founder and John Lowe, CEO –Jeni’s Splendid Ice Cream WEEK EIGHT: Multi-Disciplinary Collaboration Section 15: Game Changer – Chapter Nine Innocentive.com Section 16: Guest Speaker: Dr. Nita Rollins, Futurist, Resource Interactive WEEK NINE: Culture Section 17: Google, Inc. An Inside View of IBM’s Innovation Jam Section 18: Guest Speaker: Brian Cummings, VP Tech Commercialization, The Ohio State University WEEK TEN: Leadership Section 19: Team Assignment Presentations Section 20: Game Changer – Chapter Ten Creative Leadership – Be Your Team’s Chief Innovation Officer Key: Red: Chapter of Course Text Green: Readings and Cases Blue: Guest Speakers Orange: Mid-Term Exam Yellow: Assignment Due 7 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University VIII. Calendar (Combined Readings, Lecture Notes, Speakers, Assignments, Tests & Dates) WEEK ONE: INTRODUCTION TO INNOVATION - A“Grey” Science & Art SECTION 1 DEFINING INNOVATION – What Does “IT” Mean? (Focus: Process/Hard-lines Innovation) A.) LOGISTICS: Getting started - COURSE OVERVIEW - SCHEDULE - EXPECTATIONS - SEATING - TEAM SELECTION – GROUP ASSIGNMENT B.) LECTURE #1 INTRODUCTION TO INNOVATION – A Working Definition & Course Overview - Laying the Foundation & Establishing the Fundamentals of Innovation: An overview of the history of product and service development, and the role “Ideation”, “Invention”, “Ingenuity” and “Innovation” have played in business over the preceding century. The implications and effects that Wall Street and financial markets, as well as the science of continuous improvement and operational excellence (e.g. Six Sigma/LEAN), has had on innovative business strategies and tactics and its impact on the culture of Innovation within the overarching business world. This course is a primer regarding the roots of modern day innovation process and the similarities and differences between traditional Research & Development Process. The lecture will provide a working, academic definition of the term Innovation and the specific skills, characteristics, capabilities and talents necessary to enact, and participate in, innovative concept, product, service and process development. Session 1 dissects the different types and levels of innovation as well as the emerging team structures and the complexion of these teams with a cross-section of corporations. Finally, the initial lecture introduces the theme of consumercentricity and the changing role of the consumer in the purchase process as the major impetus and re-occurring theme of the course. SECTION 2 A.) LECTURE #2 & CRITICAL DISCUSSION (Focus: CPG Innovation) An analysis of the types and levels of Innovation as well as a “straw-man” of a proprietary innovation process will be reviewed. Session 2 will also include in-depth, critical discussion of the implications “The Innovator’s Dilemma” and the initial chapter of “The Game Changer” as well as learning from the “What’s the Big Idea” case study. B.) TEXT – GAME CHANGER - CHAPTER ONE: “How and Why Innovation at Procter & Gamble Changed Its Game” C.) CASE/ARTICLE/READING #1: “The Innovator’s Dilemma” – Clayton Christensen – Introduction: “Why Companies Need to Understand and Manage the Forces of Disruptive Innovation” Harvard Business Chapter Product# 1713bc. Published: 6/11/97. 21 pages 8 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University WEEK TWO: ADAPTING & APPLYING CREATIVITY & DESIGN SECTION 3 ADAPTING & APPLYING CREATIVITY & DESIGN (Focus: FMCG & Environmental Sustainability) A.) LECTURE #3: Clearing Our Minds & Thinking Differently - The Established Role of Creativity & Design in Business - a discussion, brainstorm and critical analysis of the importance of thinking and acting differently in order to facilitate and receive innovation, including an introduction to the concept of “additive thinking” and ambidexterity. This lecture will emphasize viewing business challenges from a different perspective. Lecture 2 will focus on the creative process based on Gestalt Theory and Bauhaus-based design process and “design thinking”. We will discover why and how concepts and approaches like intuition, holistic thinking, cyclicality, collaboration, multi-disciplinary involvement and agnostic mindsets must blend with more traditional, rigorous and quantifiable business approaches and methods in order to encourage and create opportunities for innovation to prosper inside a firm. Lecture 2 will also present a top-line methodology for conducting and participating in brainstorm sessions. Section 4 will also include critical discussion of the Herman Miller, “Cradle to Cradle” case, the chapter excerpt from “The Rise of the Creative Class” and chapter two: “Innovation Transformation” from “Game Changer”. Section 4 will illustrate why being “creative” is not synonymous with being “artistic”, and that like linear logic, creative thinking can be taught, learned and practiced by all people in business. As we’ll learn in this section, it’s all about “perspective”. B.) TEXT - GAME CHANGER – CHAPTER TWO: “P&G’s Innovation Transformation” C.) CASE/ARTICLE/READING #2: “Cradle to Grave Design at Herman Miller: “Moving Toward Environmental Sustainability”. Harvard Business Case # 607003. Date: 5.30.08. Authors: Deishin, Lionel Bony. Discipline: Operations Management. 21 pages. D.) CASE/ARTICLE/READING #3: “The Rise of the Creative Class” Chapter Four: “The Creative Class” (pages 67 – 84). Author: Richard Florida. 17 pages. HANDOUT SECTION 4 A.) GUEST LECTURER #1: “Innovation as a Corporation’s Core Competency - From R&D to Consumer –centered Discovery” - Gil Cloyd, Former Chief Technology Officer, Procter & Gamble and Former Chairman, Board of Trustees, The Ohio State University WEEK THREE: CONSUMER –CENTRICITY SECTION 5 A.) LECTURE #4: STARTING WITH THE CONSUMER– HOLISTIC, PERSON FOCUSED INNOVATION: Giving Birth to New Ideas, One Person at a Time (Hard-line Product Innovation) - Week three will isolate and emphasize the importance of focusing first and foremost on the target consumer in order to create true consumer - centric innovation. We will discuss specific processes and research methodologies for consumer immersion and review how product design in particular is a great example of how businesses combine creativity and consumer-centricity in order to establish stronger and longer-lasting relationships. Forming emotionally compelling relationships is the key to innovation process through the embracement of multi-layered interaction with the end user. The concept of co-creation and the “pro-sumer” will be introduced in this session, as will Pepper and Roger’s philosophy of 1:1 marketing. This class section will also 9 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University include critical discussion of Chapter Three of the Game Changer, the IDEO case study and the article “Using Product Design Strategically to Create Deeper Connections”. B.) INDIVIDUAL ASSIGNMENT DUE: Product Innovation C.) TEXT – GAME CHANGER – CHAPTER THREE: “The Customer is Boss” D.) CASE/ARTICLE/READING #4: “IDEO Product Development” – Harvard Business Case # 600143. Author: Stephan Thomke. Revised 4.26.07 Date: 6.22.2000. Discipline: Operations Management 21 pages. E.) CASE/ARTICLE/READING #5: “Using Product Design Strategically to Create Deeper Consumer Connections – Harvard Business Article. Product and Reprint # BH 296 Authors: Charles Noble, Minu Kumar. Date: Discipline: 10.15.08 Marketing 10 pages. SECTION 6 A.) GUEST LECTURER #2: “Outcome Driven Innovation - Understanding The Jobs Customers Want to Get Done ”: Urquhart (Urko) Wood, Innovation and Growth Strategy Advisor, Ohio Practice Lead Strategyn Consulting, Inc. WEEK FOUR: INNOVATION PROCESS SECTION 7 INNOVATION PROCESS - Scalable & Repeatable Methods for Institution & Deployment (Focus: Food Service Innovation) A.) LECTURE #5: Process - the Key to Enacting Effective and Transformative Discovery & Change - in Lecture 4 we will review various processes created by a cross section of experts and agencies. Common to the majority of these processes is the placing of the end-user, consumer and/or customer at the center of the approach – from beginning to end. Together, we will discover that this integration and the cyclical nature of the process serve as the roadmap for a journey involving multiple disciplines and heterogeneous participants. Critical discussion of Chapter four of “The Game Changer” and the “Innovation Processes” reading will serve as background and evidence for this approach. Finally, we will begin to apply these principles via the “Innovation Radar” framework to the challenge of determining areas of focus for ideation and exploration. B.) TEXT - THE GAME CHANGER - CHAPTER FOUR: “Where to Play – How to Win” C.) CASE/ARTICLE/READING #6: “Innovation Processes” – Harvard Business School Press, Book Excerpt from “Strategy Maps: Converting Intangible Assets Into Tangible Outcomes” by Robert S. Kaplan and David Norton. Product #1579BC. Authors: Robert Kaplan, David Norton. Date:12.16.03. Discipline: Competitive strategy. 29 pages. D.) CASE/ARTICLE/READING #7: “12 Different Ways for Companies to Innovate” Harvard Business Press Article Reprint # SMR207 from MIT Sloan Management Review Date: 4.1.06. Authors: Mohanir Sawhney, Robert Wolcott and Inigo Arroniz. 6 pages. 10 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University SECTION 8 A.) GUEST LECTURER #3: Christopher Celeste , Founder Playaway WEEK FIVE: APPLYING CORE COMPETENCIES SECTION 9 OVERLAYING CORE COMPETENCIES (NFP) Innovation) (Focus: Consumer Electronics & Philanthropic Service A.) LECTURE #6: What “We Do” Matters…Just Not s Much as What “They Want” – reconciling two competing factors and making a case for innovation as a sustainable point of differentiation - while the end consumer, or more plainly stated – the person who purchases and consumes or uses the new product or service, is the starting point and focus of innovation development, the core competencies of a given company still play a significant, if different role in their creation. This lecture will address the “new” role that core competencies and brand attributes play in establishing a direction for innovation based initiatives. Critical discussion of these issues, as described within Chapter Five of “The Game Changer” and the “Product Red” case will take place in this session as well as a review of the case: “How to Use Disruptive Innovation”. B.) TEXT – THE GAME CHANGER – CHAPTER FIVE: “Leveraging What You Do Best” C.) CASE/ARTICLE/READING #11: “(Product) Red (A)” – Harvard Case #509013. Authors: Youngme Moon, Michael Norton, David Chen. Date: 7.12.08 Discipline: Marketing. 17 pages. D.) CASE/ARTICLE/READING #12: “How to Use Theories of Disruptive Innovation to Predict Industry Change” – Chapter Excerpt from: “Seeing What’s Next: Using Theories of Disruptive Innovation to Predict Industry Change” - Harvard Business School Press Reprint Product # 1742BC. Authors: Clayton Christensen, Scott Anthony, Erik Roth. Discipline: Competitive Strategy. 29 pages SECTION 10 A.) MID-TERM EXAM – The exam is worth 90 points and 30% of the final grade. The exam is comprised of responses to five short essay questions each worth a maximum total of 9 points for a total of 45 points which and then doubled. The exam is open book and open note and shall be completed inclass and written in longhand form, but not typed on your computers. The grading criteria for each of the five questions shall be as follows: Compelling nature of your perspective and defense of position (2 possible points per) Quality of recommendations and accuracy of response (2 possible points per question) Practicality and potential impact (2 possible points per question) Reference to, and explanation of, specific metrics and/or description of theories or frameworks as validation of your perspective (2 possible points per question) Effective reference of experts and/or corporate examples (1 possible point per question) 11 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University WEEK SIX: STRUCTURE & ORGANIZATION: SECTION 11 ORGANIZATIONAL STRUCTURES THAT FACILITATE INNOVATION & THE ROLE OF INNOVATION IN SERVICES INDUSTRIES A.) LECTURE # 7: How We Work is as Important as Why - while there are three basic types of organizational structures that enable and promote innovation, there are also three other inputs which impact its development. In Week 6 we will see how the consumer, third party partners, and financial organizations all impact the configuration of innovation teams and the innovative companies that they support. Traditionally organized companies are rethinking their vertical integration and tearing down the silos between divisions in order to create more dynamic and “open” cultures, physical facilities and structures in order to capture opportunities to win. But how much change is too much? Is there such a thing as too much innovation? Does one size or approach fit all types of organizations? Following the lecture, we will critically discuss all of these issues as outlined in Chapters Six and Seven of “The Game Changer” and the Wired Articles – “How Apple Got Everything Right…” and “Why $0.00 is the Future of Business”. B.) TEXT – THE GAME CHANGER – CHAPTER SIX & SEVEN: “Organizing for Innovation – Building Enabling Structures and Integrating Innovation Into Your Routine”- “ From Generating Ideas to Go to Market Strategy” C.) ARTICLE/CASE/READING #13: “PRINT OUT” – “How Apple Got Everything Right By Doing Everything Wrong”. Wired Magazine Cover Story Issue # 16.04 Date3.18.08 Author: Leander Kahney D.) ARTICLE/CASE/READING #14: “PRINT OUT” –“Why $0.00 is The Future of Business”. Wired Magazine Cover Story. Author: Anderson SECTION 12 A.) GUEST LECTURER #4: MEDICAL INNOVATION - “BLENDING ART & SCIENCE - INNOVATION IN HEALTHCARE” –Dr. Clay March, MD, Senior Associate Vice President for Health Sciences Research; Vice Dean for Research and Professor of Internal Medicine, College of Medicine; Executive Director of the Center for Personalized Health; Director of the Center for Critical Care and Respiratory Medicine, The Ohio State University. 12 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University WEEK SEVEN: MEASUREMENT & SCALABILITY – Risk Management & Assessment SECTION 13 Risk Management & Measurement A.) LECTURE #8: Rigorous Validation & Valuation Innovation – As Einstein said, “not everything that counts can be measured. Not everything that is measured can be counted.” While the art of innovation is fluid, the science of innovation is NOT immeasurable. Determining the cost of innovation based initiatives and its return on investment is critical to embracement by management and shareholders alike. Pre, inter, and post analysis is crucial to the perfection and effective execution of innovation. But as the quote implies, knowing what to measure and what to count is key to such evaluation and its risks and benefits are both tangible and intangible. Risk management is vital to the ongoing success of innovation platforms and knowing what to count, and how to count it, counts, as is a common and quantifiable definition of value. Operational excellence is not the enemy of Innovation, but instead poor planning and lack of strategic rigor. In Section 13/lecture 7 in the series will present both the measurable science and the un-measurable art of innovation and how they can coexist in harmony to create “elegant solutions” that all stakeholders can embrace, no matter their individual pre-disposition. We will also discuss the value of “failure” and how to protect and even encourage it while simultaneously limiting its risk to the organization. In addition to a review of chapter eight of “The Game Changer” we will discuss the case: “Measuring and Managing the Innovation Strategy…” to determine what, in the most intangible of categories, can be “counted”. B.) TEXT -“THE GAME CHANGER” – CHAPTER EIGHT: “Managing Risk of Innovation” C.) CASE/ARTICLE/READING #15: “Measuring and Managing the Innovation Strategy with an Innovation BSC” –Harvard Business Article. Product # B0707A. Authors: Holger Koehler, Scott MacGillivray. Discipline: Balanced Scorecard Discipline: Competitive Strategy. Date 7.15.07. 6 pages. D.) CASE/ARTICLE/READING #16: “El Bulli: The Taste of Innovation” - Harvard Business School Case # 509015 (Entrepreneurship) – The creative application of gastronomy to new business concepts. Authors: Michael Norton, Julian Villanueva, Luc Watghieu Date: 7.30.08 Discipline: Marketing. 21 pages. SECTION 14 A.) GUEST LECTURER #5: “From Cow to Cone - Local Food Movements and the Reimagining an American Staple or When Business Meets Art”, Jeni Britton, President & Founder and John Lowe, CEO, Jeni’s Splendid Ice Creams. WEEK EIGHT: MULTI-DISCIPLINARY COLLABORATION SECTION 15 INTER-DISCIPLINARY COLLABORATION – Different Rules - Different Teammates (Focus: Online Innovation) A.) LECTURE #9: Exercising New Muscles – to some, collaboration sounds fun, while to others, it is akin to a visit to the dentist! Modern business structures and processes have, for decades, encouraged silo-based expertise, keeping “like” disciplines and personalities together, 13 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University favoring a “baton hand-off” approach to team-based work. Innovation process however requires an entirely different set of skills not commonly taught to, or possessed by, “business” people. In lecture 8 we will discuss the foundations and tenants of successful collaboration borne of mutual respect, generative skills and common goal setting and incentive alignment. In today’s marketplace introverts and extroverts alike are required to successfully work in collaborative styles. Gatekeepers of legal compliance and finance are no longer the gatekeepers to “go/no go” decisions, but instead are equally responsible for achieving the goals of the initiative. Understanding and applying these tenants is of equal importance regardless of a person’s role or rank. Chapter Nine of “The Game Changer” and the “Innovcentive.com” case provide insight into how to develop these skills and how to enact changes to the culture, physical environment, communication processes and compensatory incentives to encourage and facilitate - the second most vital ingredient to successful innovation. B.) TEXT – “THE GAME CHANGER” – CHAPTER NINE: “Innovation is a Team Sport - A Courageous & Connected Culture” C.) ARTICLE/CASE/READING #17: “Innocentive.com (A)”– Harvard Business Case # 608170 Date: 6/10/08 (OB & Leadership) Authors: Karim Lakhani, Discipline: Organizational Behavior & Leadership. 22pages. SECTION 16 A.) GUEST LECTURER #6: “Digital Innovation & The role of Future Foresights” - Dr. Nita Rollins - Futurist, co-author, “The Open Brand” Futurist, Director, Resource Labs, Resource Interactive www.resource.com WEEK NINE: PUTTING IT ALL TOGETHER – CULTURE SECTION 17 A.) LECTURE #10: Putting Theory Into Practice – Over the preceding eight weeks, we have discussed how creative thinking, consumer-centricity, process, core competencies, organizational structures, human resource policy, measurement and collaborative skills all play an important role in the successful facilitation and execution of innovation. The lecture portion of session 17 will review three “best –in-breed”, but diverse organization’s approaches to innovation. P&G, Herman Miller and Google, while wildly different in corporate temperament, positioning and purpose, are widely recognized as innovation leaders. All three have boldly defined (and in at least one case, re-defined) their businesses as being first, and foremost about innovation. Critical discussion and dissection of the “Google, Inc.” case and the “…Inside View OF IBM’S ‘INNOVATION JAM’” will serve as the basis of our discussion concerning innovation facilitation along with multiple examples of similarly innovative businesses. B.) CASE/ARTICLE/READING #19: “Google Inc.” - Harvard Business School 806105. Authors: Kerry Herman, Thomas Eisenmann. Date: 11/9/06. 33 pages. Case # C.) CASE/ARTICLE/READING # 20: “An Inside View of IBM’s ‘Innovation Jam’. Harvard Business Case. Product #: SMR291. Date: 10/01/08. 11 pages. 14 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University SECTION 18 A.) GUEST LECTURER #7: Brian Cummings, VP Tech Commercialization, The Ohio State University WEEK TEN: GROWTH THROUGH LEADERSHIP SECTION 19 GROUP /TEAM PROJECT PRESENTATIONS SECTION 20 LAST DAY OF CLASS: THE FINAL INGREDIENT: YOU A.) LECTURE #11: Visionary Leadership & Support –a company’s inability to innovate is often caused by a severe lack of leadership. Because innovation is commonly misunderstood and mistakenly perceived as either “unmanageably magical” or conversely, merely a new fangled expression for “traditional R&D”, corporate leaders pay lip service while myopically enacting the operational focus they understand. As we have seen over the preceding nine weeks however, rapid, seismic, disruptive and paradigm shifting changes in the marketplace have conspired to make constant innovation an important and required aspect of modern business. In our final lecture and discussion, we will review the lessons from the final chapter of “The Game Changer” and from two articles – one describing the role of an emerging title: Chief Innovation Officer, and the other predicting even more radical change coming to the marketplace and thereby underscoring the urgency of the deployment of sophisticated innovation process across industries. In our final critical discussion we will debate which industries are most in need of innovation and proscribe an “cure to what ails” these sectors and the companies within them. A.) TEXT - “THE GAME CHANGER” - CHAPTER TEN: “The New Job of the Leader – Innovation & Growth” & Conclusion – “How Jeff Imelt Made Innovation a Way of Life at GE. B.) CASE/ARTICLE/READING #21: “Creative Leadership - Be Your Team’s Chief Innovation Officer” – Harvard Management Update Article Reprint # U0703A. Author: Judith Ross. Date 3.1.07. 4 pages. 15 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University ASSIGNMENT INSTRUCTIONS: INSTRUCTIONS: INDIVIDUAL ASSIGNMENT - Product Innovation: Utilizing the learning from the course thus far, research, identify and document a unique and compelling example of an incremental or transitional (substantial) PRODUCT innovation currently in the marketplace. Justify and critically rationalize your selection of this innovation based upon the compelling nature of the final solution marketed and offered to consumers and its relative success in the marketplace. Submissions will be assessed based on the relative level of change that the innovation brought to the A.) Marketplace, B.) Consumer or customer’s lives, and C.) Sustainable competitive differentiation that the new product provided the company. The creative process, team structure, level of emotional engagement derived from its use and/or the level of consumer-centricity deployed in the product development and launch can be utilized as the basis of your argument in order to successfully defend your selection (see recommended template at the end of this syllabus – a formal template will be provided on the first day of class). Examples already presented in the text, articles or cases that we have either already read, or by companies or products whose titles are in the case studies or articles that we will be reading in the course will not be deemed acceptable for submission. Additionally, this being a course on innovation, submissions can be as creative as you like, and creativity is encouraged. In order to assemble a “working library” of corporate innovations and in order to fairly and consistently assess and evaluate performance on the assignment, some consistent standards are required. Therefore each submission must not exceed 15 power-point (or equivalent) slides. Photos of the product as well as any preceding or competing products may be included in order to communicate the case. Any other photos, or logos that you consider compelling and supportive of the case may also be used. Finally, assignments must be submitted in electronic form. Please be prepared to discuss and defend your selection with the class. For the purposes of this assignment, any tangible product, currently in production, in any global market may be cited. MINIMUM REQUIREMENTS: 1.) Overview: Description of company and the specific product that you are profiling including financials. (can include logos, parent company, images of products, services, processes, concepts, etc.) (2 pts. maximum) 2.) Product showcased 3.) Rationale: overarching description of what makes this selection an excellent example of a incremental or transitional product innovation including but not limited to (25 of 30 point total) : CURRENT STATE – financial results (market-share growth, sales, etc) and current performance of products or services, leadership philosophy, etc. (5 pts. maximum) FACILITATED CHANGE - which the innovation brought to the organization and to the marketplace (5 pts. maximum). CONSUMER BENEFITS - the emotional and rational benefits and increases in affinity & loyalty (5 pts. maximum) SUSTAINABLE POINTS OF COMPETITVE DIFFERENTIATION (5 pts. maximum) CREATION PROCESS – type team structure, org. structure, degree of consumer-centricity, etc that the organization pursued with regard to new development of the product (5 pts. maximum). 4.) Summation – other interesting points or perspectives on product (2 pts. Max.) 5.) Details – company size, annual revenues, number of employees, location of headquarters, etc. (1pts. Max.) 16 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University GROUP /TEAM PROJECT ASSIGNMENT/PRESENTATIONS Working as a team of 5, and utilizing learning from the course thus far, research, identify and develop a final presentation AND formal deliverable detailing the most optimal example of a major brand and company of any type, and from any industry vertical that is, in your opinion most in need of deploying innovation process and practice in the development of new products or services. Describe how the selected company could and should employ innovation processes and practices in order to remain relevant and to ensure the long - term viability of the organization. Conduct secondary research into the company’s structure, leadership, culture and operations. Review and ultimately cite published accounts of the organization’s approach to product or service development, analysts reports and/or other published opinions and perspectives regarding the competitive nature of the organization’s offer, it’s strengths, weaknesses and relative need for top-line growth and value creation. Utilizing frameworks, models and philosophies from the course explain how the company and business you selected, could leverage these theories and tools in order to more successfully grow their top-line and in the process create value for shareholders and consumers/customers though new concept development and IP. Utilize the same format and template as described for the individual assignments. Presentations should include at a minimum: INTRODUCTION RATONALE - including but not limited to: - CURRENT STATE – financial results (market-share growth, sales, etc) and current performance of products or services, leadership philosophy, finances, etc. - FACILITATED CHANGE - which innovation could bring to the organization including description of what type of development you believe the company needs to remain relevant and viable both in the short and long-term. - CONSUMER BENEFITS –potential emotional and rational benefits and increases in affinity & loyalty - SUSTAINABLE POINTS OF COMPETITVE DIFFERENTIATION - how to leverage the selected company’s brand positioning and market perception to capitalize on these attributes to further their lead, disrupt the market and/or compensate for recently poor performance. - CREATION PROCESS – type recommended team structure, org. structure, degree of consumercentricity, etc that you would recommend for the organization to pursue with regard to new development SUMMATION: other interesting points or perspectives on the product or service direction you would recommend. INSTRUCTIONS: Assignments must be in power point format (or equivalent). Team submissions must NOT exceed 25 slides and should as best as possible convincingly address all aspects of: - WHY this organization is in need of increased competency in innovation - HOW specifically the organization can infuse innovation processes and practices - WHAT are the key product, service or process areas or dimensions upon which the organization should innovation Each team will present its assignment and will be strictly limited to (ten) 10 minutes, followed by a five minute Q&A period. The instructor and each student will rate your presentation and evaluate the quality of your submission. A scorecard/evaluation form is supplied at the end of this syllabus. 17 BUS M&L 855 INNOVATION PRACTICE THEORY, PROCESS & APPLICATION Instructor: Michael Bills Fisher College of Business The Ohio State University Team Assignment Evaluation Form: Numeric scores ranked from 1-5 (5 being the highest, 3 - average and 1 being weak) for each item. The following scores represent responses to the overall quality and content of the team assignments, as scored by each individual student or instructor. Innovation: Team #/Name: Team Members: Qlty. (1-5) 1.) Overall Quality of Presentation: ______ 2.) Overall Quality of Case: rational, logic, originality, insight. ______ 3.) Financial - viability & analysis of value. ______ 4.) Consumer Resonance – consumer-centricity, emotional and rational resonance. ______ 5.) Sustainable, Competitive Point(s) of Differentiation ______ 6.) Impact on Marketplace – game changer? ______ 7.) Societal Impact – effect of and on society , change to culture ______ 8.) Demonstration of knowledge of, and utilization of “innovation principles” in defense of case and argument. ______ 9.) Strength of Q&A ______ TOTAL SCORE (45 maximum): ______ Comments:____________________________________________________________________________ _ _______________________________________________________________________________________ _________________________________________________________________________________ ______ 18