University of Pennsylvania
School of Engineering and Applied Science
Syllabus
EAS 445/545 – ENGINEERING ENTREPRENEURSHIP I
Professor Tom Cassel
Room 310 Towne Building
tcassel@seas.upenn.edu
Office hours by appointment
Course Description:
Engineers and scientists create and lead great companies, hiring managers when and where needed
to help execute their vision. Designed expressly for students having a keen interest in technological
innovation, this course investigates the roles of inventors and founders in successful technology
ventures. Through case studies and guest speakers, we introduce the knowledge and skills needed
to recognize and seize a high-tech entrepreneurial opportunity - be it a product or service - and then
successfully launch a startup or spin-off company. The course studies key areas of intellectual
property, its protection and strategic value; opportunity analysis and concept testing; shaping
technology-driven inventions into customer-driven products; constructing defensible competitive
strategies; acquiring resources in the form of capital, people and strategic partners; and the
founder's leadership role in an emerging high-tech company. Throughout the course emphasis is
placed on decisions faced by founders, and on the sequential risks and determinants of success in
the early growth phase of a technology venture.
Prerequisite(s)
Junior, Senior or Graduate standing is required. The course is designed for, but not restricted to,
students of engineering and applied science and assumes no prior business education. The course is
cross-listed for graduate students who are expected to provide more in-depth case study analysis
and complete expanded assignments.
Course Materials:
Reading Pack (required), to be purchased from the SEAS Copy Center.
announced in class.
Availability to be
Additional readings and notes are handed out in class or posted from time to time on the
Blackboard course website.
Blackboard Course Website:
The Blackboard course website may be accessed at http://courseweb.library.upenn.edu. All course
announcements and assignments are posted on this site. Supplementary readings may also be
posted on this site from time to time.
Grading:
Course grades are determined approximately as follows:
ƒ
ƒ
ƒ
Class attendance and participation: 35%
Assignments and in-class quizzes: 45%
Term project:
20%
100%
Excessive unexcused absences are penalized. Extra credit opportunities, which may enhance a
course grade, are also provided from time to time during the semester.
Attendance and Participation:
Attendance at all class sessions is presumed. An unexcused absence results in an “F” participation
grade for the missed class. Excessive, unexcused absences result in additional grade penalties and
possible failure of the course. Late arrival for class may also result in a grade penalty.
In-class discussion is an important element of the course pedagogy. Substantive classroom
participation, which enhances the intellectual level of discussion, results in an “A+” participation
grade for that class. Thoughtful classroom participation, not simply “air time,” results in an “A”
participation grade for that class. Inattentiveness results in a participation grade of “C” or lower.
As a common courtesy to other students and the instructor, use of cell phones, laptops and other
distracting devices or activities are not permitted in the classroom.
Assignments:
Written homework assignments must be submitted at the beginning of class on the due date. Late
submittals generally will not be accepted. All work must be typed neatly and concisely on 8½ x 11
inch paper. Multiple pages must be stapled together. All individual assignments and quizzes must
be the product of a student’s own effort, consistent with the University’s Code of Academic
Integrity at http://www.vpul.upenn.edu/osl/acadint.html.
Quizzes:
In-class quizzes are given weekly during the semester. These are brief, open-notes, closed-case
tests, covering material assigned for that class session.
Re-Grading Policy:
All re-grade requests must be made in writing within one week of the day the assignment, quiz or
essay is returned. The request must be specific and identify the reason for the re-grade. If part of a
multi-part assignment is submitted for re-grading, the entire assignment may be re-graded at the
instructor’s discretion.
Term Project:
EAS445/545 requires a final term project in which students, working in teams, investigate an
innovative technology to assess its marketplace potential and to recommend initial positioning
strategies. The objectives of the term project are: (1) to shape a technology-driven discovery into a
customer-driven product; (2) to identify the target market(s) for the product; (3) to develop a
marketing strategy for penetrating first the early market and then the mainstream market; and (4) to
provide an assessment of the total market potential and a dollar sales forecast over time for the
product. The project serves to integrate material learned throughout the course and it requires
significant primary research. The specific assignment and due date will be provided in class and
will be posted on the Blackboard course website.
Course Outline (Spring Term):
The following course outline and schedule for a typical spring term is subject to change at the
instructor’s discretion. Students are advised to check the Blackboard course website regularly for
assignments and announcements.
Class
1
Lecture Topic(s)
• Introduction: Seizing the
Opportunity
2
• High-Tech Ventures: Overview I
3
• High-Tech Ventures: Overview II
4
5
6
7
8
9
10
11
Assignments Due
• Intellectual Property and IP
Strategy I
• Intellectual Property and IP
Strategy II
• Understanding Financial
Statements
• High-Tech Product Development
• Concept Testing
• High-Tech Market Strategy:
Crossing the Chasm
• Conjoint Analysis
• Decision Trees and Expected
Values
• Pricing Strategy and Market
Potential
• FDA Regulatory Process
• Present Value Analysis
• GUEST: Biotechnology Start-Up
Executive
• Term Project Guidelines
• Operations Strategy and
Strategic Alliances
• Louis Agassiz as a Teacher
• The New Venture
• Hewlett Packard: Creating, Running and
Growing an Enduring Company
• The Winning Strategy
• Vermeer Technologies (A, A-1, B, C)
• Intellectual Property and Strategy
• X-IT and Kidde (A)
• Palm Computing, Inc. (A)
• Product Development: A Customer- Driven
Approach
• The Sales Learning Curve
• Innovating for Cash
• Palm Computing: The Pilot Organizer
• The Power of Virtual Integration: Interview with
Michael Dell
• Product Development at Dell Computer
• Price on Value but Charge What the Market Will
Bear
• Biopure Corporation
• Questions for Guest Speaker
• The Era of Open Innovation
• Nucleon, Inc.
Class
12
Lecture Topic(s)
Assignments Due
• The Venture Capital Method
• Bootstrap Finance: The Art of Start-ups
• Angel Investing
14
• GUEST: Founder, Medical
Device Company
• Venture Capital: It’s More Than
Just the Money
15
• The High-Tech Business Plan
16
• Deal Structure and Term Sheets
17
• Negotiation Skills
13
18
19
• Capital Requirements and
Alternatives
• The Entrepreneurial Opportunity
of Disruptive Technology
• GUEST: Founder, Medical
Diagnostics Company.
20
• IPO Process and Considerations
21
• Leadership and Motivation
22
23
GUEST: Partner, Venture Capital
Firm
• GUEST: Founder, Software
Products Company
24
• Leadership and Vision
25
• Leadership and Crossing the
Chasm
26
• GUEST: Founder,
Communications Software
Company
27
• Leadership and Execution
28
• Leadership in High-Tech
Ventures
• Wrap-up: Harvesting and Giving
Back
• Questions for Guest Speaker
• Onset Ventures
• Venture Capital Problem Set
• Walnut Venture Associates (A): RBS Group
Investment Memorandum
• You Can Negotiate with Venture Capitalists
• Walnut Venture Associates (D): RBS Deal
Terms
• Johnson-Grace
• Palm Computing, Inc 1995: Financing
Challenges
• Exploiting an Age of Disruption
• Disruptive Technology a Heartbeat Away:
Ecton, Inc.
• Questions for Guest Speaker
• A Note on the Initial Public Offering Process
• Teleswitch (A, B)
• Why Incentive Plans Cannot Work
• Visionary Design Systems: Are Incentives
Enough?
• Questions for Guest Speaker
• Questions for Guest Speaker
• Level 5 Leadership
• The Spoiled Startup: Too Much Money is a Bad
Thing
• MIPS Computer Systems
• Note on the Hiring and Selection Process
• First Who … Then What
• Vinod Khosla and Sun Microsystems (A)
• Questions for Guest Speaker
Leading by Leveraging Culture
Momenta Corporation (A, B)
Managers and Leaders: Are They Different?
Reflections on (Schumpeterian) Leadership
Bridging the Gap Between Stewards and
Creators
• Growing Up but Staying Young
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