Spring 2010 Designing Innovations in an iPod World Professor Youngjin Yoo Home Page: http://youngjinyoo.com e-mail: youngjin.yoo@temple.edu office hours: by appointment Professor James Moustafellos e-mail: jamescm@temple.edu office hours: by appointment MIS 5112 sec 401 / ARCH 3050 sec 401 Time: Thursday 7:20 - 9:55 pm Location: TUCC 620 (3 credit hours) (No class on 2/25 and 3/18. Instead, we will meet 9:30 am - 2:00 pm on Saturday, Feb 27) Background As we move into the digital economy, the ways by which companies create value is fundamentally shifting from products to experiences. As demonstrated by the phenomenal success of Apple Computer’s iPod, rapid convergence to digital technology opens up new opportunities to offer novel products and services that did not exist before. At the same time, emerging technologies like mobile computing, WiKi, and blogging make new forms of organizing possible. Consequently, the traditional boundaries across firms are rapidly redrawn in order to exploit unique innovation opportunities, again as recently evidenced by the collaboration between Nike and Apple. In this course, students will be asked to think how entrepreneurs and companies produce radically new products and services in this increasingly digital world. The course focuses on how organizations can design novel and desirable products and services. We will particularly focus on the transformation of meanings of familiar products and services by augmenting emerging digital capabilities. The course stands on three operative key words: experiences, digital technology, and design. First, in this class, students will learn how to start their inquiry by focusing on Spring 2010 Designing Innovations in an iPod World customer experiences. This is a radical departure from traditional innovation strategy that is based on core competencies, strategic resources, and industry analysis. This relentless focus on customer experience allows companies to take an “outside-in” approach in exploring innovation space. Second, students will discuss various roles of digital technology in designing experiences. Two aspects of digital technologies will be emphasized. First, students will learn how to explore emerging digital technology as a part of innovations in products and services. Here, students will study how new emerging digital technologies can be embedded into and integrated with non-digital products and services in order to deliver novel experiences to the customers. Second, students will learn the role of digital technology, particularly communication and coordination technologies, as an enabler of organizing forms that give birth to innovations. Finally, continuing innovations require new attitudes and methods to management problems. The organization needs to be dynamic, knowledgesharing, and value-adding partnerships in order to continue to innovate. Design will be a key element in achieving this rather daunting task. The design approach is a drastic contrast to a traditional problem-solving approach to management, which emphasizes the cost saving and efficiency gains through "best practices" and standard operating procedures. A design approach to management is driven by the belief and the commitment to put something remarkable into the world that has lasting consequences and value. It is supported by the commitment that things can get always better if we try hard enough. It emphasizes the mobilization of knowledge, social and financial resources from diverse actors who may not necessarily share the same goals. It respects diverse voices, and rejects the tyranny of “or” but embraces the possibilities of “and”. It is a commitment to work with the given constraints, while discovering its own identity that is Designing Innovations in an iPod World: Spring 2010 2 Spring 2010 Designing Innovations in an iPod World constantly projected into the world. It emphasizes the verbs rather than nouns as the focus of management activities. IBM, IDEO, NTT DoCoMo, Apple, GE, Samsung and P&G, just to name a few, are examples of companies that are pursuing design approaches in their transformation efforts in this changing economy. Students will learn design methods and principles. These methods and principles will be then applied to both experience design and organization design. Required Readings · Readings that can be directly downloaded from the source are all indicated in the syllabus. · Additional readings that are marked with an asterisk in the schedule section below are available through e-reserve service through the University Library. Readings with TWO asterisks need to be purchased directly from the Harvard Business School Web site. I have created a set of course materials at the Harvard Business Education web site. This email will provide you with information about the two steps you will now take to access your course material. To access the Harvard Business Education site, follow this link: http://cb.hbsp.harvard.edu/cb/access/5344668. If you have not registered with the Harvard Business Education site, it will be necessary to do so now. Once you have completed the brief registration process, you will be able to log in. Once logged in you will be able to access the material I have assigned for the course. For your reference, the course materials you need are also listed at the end of this email. Note that the format of classroom materials may differ. Most will be available in PDF and can be viewed with Adobe Acrobat Reader. Simulations and Online Courses require you to access them online. A few materials may require that a hard copy be shipped to you. All PDFs and eLearning content are available to you through your Harvard Business Education library for 6 months from the Designing Innovations in an iPod World: Spring 2010 3 Spring 2010 Designing Innovations in an iPod World date of purchase. For subsequent access, you will need to login at www.hbsp.harvard.edu and go to My Library->Courses. Suggested Readings The following books are great supplementary materials for those who are interested in this topic further. • Managing as Designing, by Boland & Collopy • Change by Design, by Tim Brown • Design-Driven Innovation, by Roberto Verganti • Designing Interactions, by Moggridge • How Designers Think: The Design Process Demystified, by Lawson • Designing Design, by Hara • On the Back of the Napkin, by Roam Grading The final grade for the course will be determined as follows: Class participation 20% Individual learning assignments 30% Group design workshops 50% Final letter grades are not determined according to a “curve” that specifies in advance the proportion of people to receive each grade. Instead, letter grades are determined according to the percentage of possible credit achieved by each student, computed by adding together scores for individual grading components multiplied by their percentage indicated above. This “criterion-based” grading is done to promote a cooperative climate in which assisting one’s classmates and/or studying in groups, which we strongly encourage, does not adversely affect one’s own letter grade. The course is graded using the letter grades A-F. Designing Innovations in an iPod World: Spring 2010 4 Spring 2010 Designing Innovations in an iPod World Scale 94 – 100 A 73 – 76 C 90 – 93 A- 70 – 72 C- 87 – 89 B+ 67 – 69 D+ 83 – 86 B 63 – 66 D 80 – 82 B- 60 – 62 D- 77 – 79 C+ Below 60 F The instructors reserve the right to adjust the grade cut off points upward or downward based upon the overall distribution of grades. Class participation: The course will be conducted primarily as a discussion-based class. It means that students are expected to participate in the discussion and contribute to the process of constructing knowledge. The class participation grade will reflect our judgment of the quality and quantity of students' contribution during class sessions over the course of the semester. Much research has found participative and active learning to be highly effective in terms of student learning and retention. There are few assigned readings for each class. You are expected to study the assigned course readings for a given day before coming to class. Students should be prepared to be called upon to discuss issues covered in the assigned readings. Criteria for class participation credit include attendance, punctuality, level of preparation, professionalism, answering questions, discussing readings, and contributing to group activities. Tardiness disrupts the flow of class activities and often leads to having to repeat announcements or instructions. Entering and leaving the room during the class similarly distracts both students and instructors and conveys a disregard for the material being discussed. You should display your name cards throughout the semester to enhance interaction. We encourage Designing Innovations in an iPod World: Spring 2010 5 Spring 2010 Designing Innovations in an iPod World you to engage in critical thinking, to challenge ideas without showing disrespect for others’ ideas. Please use judgment when raising issues in class – do not waste the class’s time on a personal matter – instead see one of us one-on-one. Effective participation has much more to do with the quality than with the quantity of your interaction. In other words, those who attempt to dominate air time for its own sake without contributing to the advancement of the discussion will not be rewarded for it. If a student is unable to attend a class session, it is the student's responsibility to acquire the class notes, assignments, announcements, etc. from a classmate. Individual Learning Assignments: There are six learning assignments, each count for 5% toward the final grade. The deadlines and the focus of the papers are as follows: Assignment 1 (2/4) Review of a movie (Choose one of the followings: Sketches of Gehry, Helvetica, and Objectified). What is the most important quote(s) or scene(s) that captures key idea of design in the movie that you watched? Why is it significant? What did you learn about design from that? Be specific. Designing Innovations in an iPod World: Spring 2010 6 Spring 2010 Designing Innovations in an iPod World Assignment 2 (2/18) You will be assigned to one of the topics related to homeless experiences in Philadelphia. You are expected to conduct an in-depth research and provide 2-page executive summary of your research. • current status: statistics • what are the key issues that a homeless person faces • what is currently being done for homeless problems • what are various types of costs (both quantitative and qualitative) that the homeless problem incurs on the community In addition, each student must learn intimately about one homeless person’s story including life history (what he/she was doing, how he/she became homeless, what are the social relationships, how long has that person been homeless, etc) and what are the key problems that person is facing. You can conduct a personal interview, read reports or books about a person, watch a documentary film, or talk to social workers who help homeless people. Assignment 3 (4/1) You will be conducting an ethnographic observation research on a bus shelter of your choosing in Philadelphia area. You must take at least 20 different pictures. Take at least 5 minutes worth of video clips. You will prepare a summary of key observations using some of the analytic frameworks we will cover in the class. Designing Innovations in an iPod World: Spring 2010 7 Spring 2010 Designing Innovations in an iPod World Assignment 4 (4/8) You need to study different types of tea ceremonies (rituals) and different types of tea and tools for tea ceremonies. You need to learn what are the steps that are involved, what are the meanings attached to it, and what are types of teas and tools that they use for the ceremony. You also need to learn the how it evolved. You will be assigned to one of the following countries. Assignment 5 (4/15) • Japanese tea ceremony • Chinese tea ceremony • British tea ceremony You will be assigned to a store from which you will be asked to buy a product and return it a few days later. The goal of your research is to document your experience in detail, using at least two different representation methods of your choice. In addition, you will make a note of the following aspects: Assignment 6 (4/22) • what were the breakdowns • who were the actors and tools involved • what dimensions of experiences were involved You will be assigned to one of the following types of games. You need to choose one game in that type and research its origin, history, rules, tools and different variants. • Board game • Action game • Video game • Games in a different culture Designing Innovations in an iPod World: Spring 2010 8 Spring 2010 Designing Innovations in an iPod World The goal of these learning assignments is to facilitate discussion in the class. All writing assignments for the course should confirm the format requirements: 11point Times Roman, double-space, and one inch margin all around. The papers that violate the format requirement will be penalized. Unless specified otherwise, all learning assignments cannot exceed 2 pages. You will lose 10% from final grade each passing day from the due date, until you submit your work. Group Design Workshops: There are five group design exercises. These are all done in class. In order to make the design exercise effective, they require students to do preparatory research on the topic or the problems. The topics of the group design workshops are: Workshop 1 (2/18): Homeless Workshop 2 (4/1): Re-designing the bus shelter Workshop 3 (4/8): Re-designing the tea ceremony experience Workshop 4 (4/15): Re-designing the retail customer return experience Workshop 5 (4/22): Designing a new game For each workshop session, you will be provided necessary materials to go through rapid design process, utilizing the results of the research that you conduct for your individual assignments. Therefore, it is critical that each team members come prepared. Depending on the workshop, the outcome will vary. Each team then needs to prepare a design portfolio. The portfolio documents both the process and outcome of the design project for each session. Each workshop summary needs to include 2 pages of text (one page for describing the design outcome and another page for the design process) ad one page for visual images from your work. In order to prepare the portfolio, it is critical that each team document their processes and outcomes for every workshop session. Designing Innovations in an iPod World: Spring 2010 9 Spring 2010 Designing Innovations in an iPod World There will be a peer evaluation at the end of the project. 70% of the team grade for the project will be adjusted based on the peer evaluation score in order to calculate the individual project score. Additional General Policies Grading Policy It is important to recognize that a grade reflects another’s evaluation and judgment of your work. Different reviewers might evaluate a paper or exam differently. You are encouraged to meet us at anytime to discuss the strengths and weaknesses of your course work (i.e., to gain understanding of your performance). Grade appeals on course assignments and exams, however, are discouraged. If you decide to appeal a grade, follow these steps: 1. Within seven days of receiving the grade, send us a written appeal. After seven days, we will not consider any grade appeals. 2. To file an appeal, prepare a written statement detailing why your are appealing your grade. Be sure to document your reasons by referring to grading standards, incorrect point calculations, etc.; stating simply that you feel you “deserve” a higher grade because you worked hard or based on a vague impression is not sufficient grounds for an appeal. 3. Submit the written statement together with the graded material. 4. We will consider your appeal and make a decision within a week. Regarding final grades, changes will be considered only in cases of alleged “arbitrary and capricious grading,” which can be defined as “(a) The assignment of a course grade to a student on some basis other than performance in the course; (b) The assignment of a course grade to a student by unreasonable application of standards different from standards that were applied to other students that were Designing Innovations in an iPod World: Spring 2010 10 Spring 2010 Designing Innovations in an iPod World in that course; or (c) The assignment of a course grade by a substantial and unreasonable departure from the instructor’s initially articulated standards.” This policy is intended to assure that grading is consistent and fair to all students. Two key ground rules apply: 1) you must appeal a grade within one week of the time the score for you exam, homework, or project is made available to you, and 2) class time will not be used to discuss grade appeals. Accommodation for Students with Disabilities Any student in this class who has a documented visual impairment, cerebral palsy, hearing disability or any other disability should contact the professor during the first week of class to discuss and arrange any instructional accommodation that may be necessary. Student who would like to serve as volunteer tutors, readers, or note takers for students needing special assistance are encouraged to contact the professor during the first week of class. Instructor Biographies Youngjin Yoo is Associate Professor of Information Systems and Irwin L. Gross Research Fellow at the Fox School of Business and Management at Temple University. Prior joining to Temple University, he was Lewis-Progressive Associate Professor of Information Systems at Case Western Reserve University. He holds a Ph.D. in information systems from the University of Maryland. He was a summer research fellow at NASA in summer of 2001 and spent a year as a research associate in 2003 – 2004 at NASA Glenn Research Center to study the implementation of the integrated financial management systems at NASA. Also in 2003 – 2004, he was a Glennan Fellow to study how to incorporate design approaches into management education. In summer 2004 and 2005, he was a visiting professor at Hong Kong City University. In spring 2006, he was a visiting professor at Tokyo University of Science in Japan and Zollverein School of Management and Design in Essen, Germany. He is currently holding a visiting Designing Innovations in an iPod World: Spring 2010 11 Spring 2010 Designing Innovations in an iPod World professor position at Viktoria Institute in Sweden. His research interests include design practices, the role of information technology for virtual teams, and ITbased new organizational forms. His work was published at leading academic journals such as Information Systems Research, MIS Quarterly, Organization Science, the communications of the ACM, the Academy of Management Journal, the Journal of Strategic Information Systems, the Journal of Management Education, and Information Systems Management. He also edited three books on ubiquitous computing and wrote several books chapters. He serves on editorial board of several leading journals including Management Science, Information Systems Research, Organization Science, the Journal of Strategic Information Systems, Information & Organization and the Journal of AIS. He has researched or consulted leading companies including Andersen Consulting, Moen, Bendix, Kirtland Capital Partners, E&Y, Lotus, NASA, Parker Hannifin, Poly One and the Department of Housing and Urban Development. He has received over $1 million in research funding from National Science Foundation, NASA, and Samsung Electronics. James Moustafellos is an Assistant Professor in the Department of Architecture of the Tyler School of Art at Temple University. He holds a Master of Architecture degree from Princeton University and a Bachelor of Arts degree from Columbia College, Columbia University. He is co-principal of Intellectual Property LLC, an interdisciplinary research and design studio based in Philadelphia. The goal of Intellectual Property is to use the design of architecture and everyday objects to explore social and cultural relationships. The studio’s research and design work comprises architecture, graphics and product design. Work by Intellectual Property has been exhibited most recently at the Slought Foundation in Philadelphia, presented at lectures at Temple University, Ryerson University, and the Wharton School of Business and conferences at Syracuse University and the ACSA National Conference in Chicago. Intellectual Property’s design ‘Frame of Referents” is in the collection of the Philadelphia Museum of Art. Prior to Designing Innovations in an iPod World: Spring 2010 12 Spring 2010 Designing Innovations in an iPod World accepting a position at Temple, he taught in the graduate program of the University of Pennsylvania School of Design and has served as a design juror at the University of Pennsylvania, Princeton University, and Philadelphia University. Previous design experience includes the office of Francois de Menil in New York, where his design work was published extensively in international design journals, won numerous awards including an AIA Honor Award and was featured in the exhibition ‘The Un-private House’ at the Museum of Modern Art. He also worked in the New York office of Kohn Pedersen Fox and the Tokyo office of Taisei Corporation. He is also the Grand Prize Winner of the 8th Annual Business Plan Competition of the Fox School of Business’ Innovation and Entrepreneurship Institute and the recipient of the Stanley J. Seeger Fellowship from Princeton University and the Robert Shellow Gerdy Prize from Columbia College, Columbia University. 1/21 First day of class In this class, we will present an overview of the course, its theme and major learning objectives. In-class learning exercises: key chain blank paper Designing Innovations in an iPod World: Spring 2010 13 Spring 2010 Designing Innovations in an iPod World 1/28 Innovation Lecture (1): Innovation in a Changing world We will discuss the changing nature of society, market and technology in a historical context. We will watch and discuss “Paradigm Shift”. Students must come prepared to discuss Apple’s iPod and Amazon’s Kindle case. Read various product reviews and think about what makes these two products really “click” with the consumers. Think about the similarities and differences between the two products and consumer experiences. Write a short essay (one page) summarizing your thoughts. This is an individual assignment. Case: • • Apple’s iPod, http://digitalenterprise.org/cases/itunes.html Design Thinking in Apple (HBS Case: 609066-PDF-ENG)** Readings: Design Matters, Boland and Collopy (http://design.case.edu/articles/Design%20Matters.pfd) • This Will Kill That, Victor Hugo, from Notre Dame de Paris, Book 5 Chapter II, (http://www.online-literature.com/victor_hugo/hunchback_notre_dame/24/) 2/4 Innovation Lecture (2): What is design? We will explore what is design and how it is different from management and art. We will discuss design methods and design thinking (approaches). Basic coverage of human-centered design process. Individual learning assignment 1 due: • Sketches of Gehry (http://www.sonyclassics.com/sketchesoffrankgehry/) • Helvetica (http://www.helveticafilm.com/) • Objectified (http://www.objectifiedfilm.com/) Readings: Design Thinking, Tim Brown, Harvard Business Review, June 2008** What is Design, Kenya Hara, from Designing Design (pp. 410-436)* Project: Teams will be organized and announced. The overview of the design project will be provided. Designing Innovations in an iPod World: Spring 2010 14 Spring 2010 Designing Innovations in an iPod World 2/11 Innovation Lecture (3): Emerging Digital World In this class, we will discuss the recent developments in technology, particularly digital technology, and discuss how these new technologies offer new opportunities to come up with new design. Readings: Tangible user interfaces (TUIs): A novel paradigm for GIS (http://tangible.media.mit.edu/content/papers/pdf/TUI_GIS04.pdf) Touch sensitive apparel (http://tangible.media.mit.edu/content/papers/pdf/TouchSensitive_CHI07.pdf) • You are in control: A urinary user interface (http://tangible.media.mit.edu/content/papers/pdf/yic_chi2003_posted.pdf) 2/18 Design Workshop (1): Designing for the Homeless We will learn the overall process of design thinking and watch ABC’s Nightline video on IDEO. Then, the entire class will engage in a structured brainstorming session in order to come up with a system of solutions for homeless populations in Philadelphia. Your team will act as consultants to the city of Philadelphia to improve the life experiences of homeless population in the city. Each group will be assigned to focus on specific aspects of their experiences. Individual learning assignment 2 due. Designing Innovations in an iPod World: Spring 2010 15 Spring 2010 Designing Innovations in an iPod World 2/27 Design Research: Ethnographic Data Collection & Analysis 9:30 am - 2:00 pm This is a five hour session to cover the entire process of design research. In this class, we will learn different ways to collect qualitative data. Teams will develop their research plan that they will carry on over the weekend. Team must decide basic parameters of data collection (who, when, where, what, why and how) from the session. Cases: • Blockbuster Inc. & Technological Substitution (A): Achieving Dominance in the Video Rental Industry (HBS Case: 704404-PDF-ENG)** • Netflix by Sayan Chatterjee * Readings: Managing change by design, Coughlan and Prokopoff, (http://www.ideo.com/images/uploads/thinking/publications/pdfs/PeterIlya_Ma nagingChange_2006.pfd • People and Prototypes, by Moggridge (http://www.designinginteractions.com/download) Experience modeling, by Morris and Lund (http://loop1.aiga.org/documents/edition003/sapientucd/03_sapientucdB.pfd) Discussion Questions: Compare and contrast Blockbuster and Netflix in terms of their basic business model. Develop strategic options for Blockbuster following design approach. How would you redefine the core product of Blockbuster (as an experience) and integrate the Internet in order to execute the strategy? What are key managerial challenges that one needs to overcome in order to successfully implement the digital strategy for Blockbuster? Designing Innovations in an iPod World: Spring 2010 16 Spring 2010 Designing Innovations in an iPod World 3/4 Innovation Lecture (4): Digital Innovation and Platform Innovation We will discuss some of the key ideas on innovations including the notion of disruptive innovation, Blue Ocean strategy and platform innovation among others. Case: iPhone vs. Cell Phone (HBS Case 9-708-451)** Read some articles on Google Android (http://en.wikipedia.org/wiki/Android_(operating_system)) Readings: Kim, W. C. and Mauborgne, R., Blue Ocean Strategy (HBR Article R0410D)** Gawer, A. and Cusumano, M. A., How companies become platform leaders, (SMR Article, 49201)** 3/11 Spring Break 3/25 Innovation Lecture (5): Innovation & Organization In this class, we will discuss why organizations fail to capitalize on innovative ideas and how innovation problem is an organizational problem. Case: • The problem of Sony * Readings: · Yoo, Boland and Lyytinen, “From organization design to organization designing,” Organization Science * • Boland, Collopy, Lyytinen and Yoo, Managing as Designing: Lessons for Organization Leaders from the Design Practice of Frank O. Gehry* Designing Innovations in an iPod World: Spring 2010 17 Spring 2010 Designing Innovations in an iPod World 4/1 Design Workshop (2): Transforming Bus Shelter In this class, we will apply designing thinking in re-designing bus shelter. The purpose of the design exercise is to re-imagine what a bus shelter can be by applying your insights that you gained through design research that you conducted. Here, your team will try to integrate some forms of digital technology and turn a bus shelter as place for a fixed purpose to a digital platform of multiple actions with multiple meanings. The goal is to learn how to conduct design research and generate new ideas based on the insights you gained from the research. Individual learning assignment 3 is due. 4/8 Design Workshop (3) : Designing Perfect Tea Experience In this class, your team will act as design consults to an American tea retailer, who has retail shops all around country. The company specialized in selling variety of teas. The company wants to transform its business from a tea retailer to a tea ceremony experience provider. Your team will be given specific design challenge. The class will follow a structured process for experience prototyping. Individual learning assignment 4 is due. 4/15 Design Workshop (4): Re-designing Return Process In this class, you will learn how to apply design thinking and methods to design a complex system, such as customer product return system. Based on your own research of product return, you team will conduct a structured brainstorming and rapid prototyping to design a customer product return procedure and system to maximize customer experiences. Teams will be asked to visualize their design concepts of the new system. Students will have to consider new digital tools and ecology and consider multiple, and often conflicting goals. Individual learning assignment 5 is due. Designing Innovations in an iPod World: Spring 2010 18 Spring 2010 Designing Innovations in an iPod World 4/22 Design Workshop (5): Designing a New Game In this final workshop, you will be asked to design a new game. Based on your research on different types of games, you are trying to design a complete new game. The design should specify rules, actors and their roles, artifacts, and space. The game needs to have some form of digital elements. You will be given specific constraints at the beginning of the workshop. Teams must design a game the outcome of the goal that has positive individual or social consequences. Individual learning assignment 6 is due. 12/14 Debriefing and Innovation Lecture (6): Designing an Artificial World We will reflect on what we learned and did throughout the semester. We will revisit some of the key lessons learned from design workshops. The final lecture focuses on the role of management and design in constructing a better world. Group project portfolio due. Designing Innovations in an iPod World: Spring 2010 19