Venture Creation MGT 6165 Spring 2014 Course Syllabus Scheller College of Business Georgia Institute of Technology Jonathan Giuliano jonathan.giuliano@scheller.gatech.edu Office hours by appointment Overview This course is about creating ventures that are (1) based on or enabled by technological innovation and (2) launched as startups or formed within companies. While covering the venture creation and innovation process from conception to execution, the course emphasizes venture strategy for entrepreneurs, managers, and leaders. (The course uses the term entrepreneur to refer to the person leading and managing the venture creation process.) MGT 6165 takes a multidisciplinary approach to the theory and practice of venture creation. Objectives of the course are to help students (1) understand and apply the strategic process of venture creation and (2) improve their skills in generating and finding ideas for new ventures, creating and identifying opportunities, evaluating venture proposals, designing and planning ventures, organizing resources, staffing ventures, building teams, communicating persuasively (in oral and written formats), and developing systems to control risk and enable growth. The course involves case studies, exercises, and lectures by the instructor and guest speakers. Grades are given for class preparation and participation (30% of the final grade for the course), a project (30%), and two written reports analyzing case studies and making substantive recommendations and action plans in detail (each 20%, total 40%). Objectives Through this course, students should 1. Learn how to create, design, find, assess, and shape opportunities 2. Identify key variables, their interconnection, and their context in venture creation 3. Understand how to evaluate risk and how to shift probabilities toward success for the new venture 4. Integrate people and processes in venture creation 5. Develop a better sense of how to make decisions and execute strategies 6. Develop and present a venture-­‐creation plan 7. Understand their entrepreneurial interest and capacity Giuliano, Venture Creation, MGT 6165, Spring 2014 Course Syllabus, Georgia Institute of Technology, Page 1 of 7 Assessment Students’ grades for this course are based on their mastery of course material and their performance in three categories: Class preparation and participation: Arriving at every class fully prepared, leading discussions in class, taking an active role when others are leading discussions, and making insightful comments that demonstrate comprehension – this is the basis for assessing students’ class preparation and participation grade. The Socratic method is used to determine how well each student understands relevant theory, practice, and implications. This constitutes 30% of the course grade. Project: The elevator-­‐pitch competition requires each student to work in a team of five students who create and present an elevator pitch for a venture that the team proposes to launch. This constitutes 30% of the course grade. Case-­‐study reports: These are two written reports analyzing cases and presenting a recommendation and an action plan. Each report (approximately 2000 words) constitutes 20% of the course grade. Students must write concisely and persuasively. Both written assignments are due no later than the start of class on the date due, with one exception: students with a valid reason for a late submission and with written approval from the instructor before the due date may present a late assignment. For the final course grade, a student’s weighted-­‐mean numerical score (comprising class preparation and participation, the project, and case-­‐study report grades) converts to a letter grade within these brackets: • 90.00% and higher: A • 80.00% to 89.99%: B • 70.00% to 79.99%: C • 60.00% to 69.99%: D • Below 60.00%: F Honesty This course follows the guidelines established by Georgia Tech’s honor code and student handbook. Students must certify that all work is their own and must appropriately acknowledge all sources. Academic dishonesty includes cheating, fabrication, falsification, multiple submissions, plagiarism, and complicity in academic dishonesty. Office hours Students wishing to meet during office hours should send an email proposing times and dates to meet in person or, if urgent, for a telephone call. Students should receive a response to emails within a few hours but should expect that a response may take as long as 24 hours. Giuliano, Venture Creation, MGT 6165, Spring 2014 Course Syllabus, Georgia Institute of Technology, Page 2 of 7 Required reading The cases and notes are available for purchase and download from two web sites from the Harvard Business Publishing website: Course link: https://cb.hbsp.harvard.edu/cbmp/access/23507960 Coursepack Name: Venture Creation (Spring 2014) Course Number: MGT 6165 Reference Code: 23507960 Students must first register on the site to create a user name unless they already have one. Once registered, students can log in to download the course materials immediately. Afterward students can get to the course again by visiting hbsp.harvard.edu, logging in, clicking My Courses, and then clicking the course name. For technical assistance, the Harvard Business Publishing Tech Help line is (800) 810-­‐8858 and email is techhelp@hbsp.harvard.edu. Business hours are 8am to 8pm Monday through Thursday, and 8am to 7pm Friday. Here is a list of the PDF files to download: 1. A "Rich-­‐versus-­‐King" Approach to Term Sheet Negotiations 2. Achieving Profitable Growth and Market Value 3. Analyzing New Venture Opportunities 4. Applied Research Technologies, Inc.: Global Innovation’s Challenges 5. Baidu.com, Inc.: Valuation at IPO 6. Blink Booking 7. BP’s Office of the Chief Technology Officer: Driving Open Innovation 8. Business Model Analysis for Entrepreneurs 9. Capturing the Value of Intellectual Capital: Mastering the Legal Aspects of Business 10. Deal Structure and Deal Terms 11. Discipline of Teams (HBR Classic) 12. Early-­‐Stage Business Vignettes 13. Entrepreneurs At Twitter: Building a Brand, a Social Tool, or a Tech Powerhouse? 14. Envia Systems 15. Financing New Ventures 16. Funding New Ventures: Valuation, Financing and Capitalization Tables 17. How to Write a Great Business Plan 18. How Venture Capitalists Evaluate Potential Venture Opportunities 19. Identifying and Exploiting the Right Entrepreneurial Opportunity…For You 20. Leadership for Change: Enduring Skills for Change Masters 21. Legal Aspects of Entrepreneurship: A Conceptual Framework 22. Managing Collaboration: Improving Team Effectiveness through a Network Perspective 23. Managing Oneself (HBR Classic) 24. Managing Segway’s Early Development 25. NanoGene Technologies, Inc. 26. Note on Business Model Analysis for the Entrepreneur 27. Ockham Technologies: Living on the Razor’s Edge 28. ONSET Ventures 29. Open Innovation and Strategy 30. Recognizing Opportunities: Innovator as Entrepreneur Giuliano, Venture Creation, MGT 6165, Spring 2014 Course Syllabus, Georgia Institute of Technology, Page 3 of 7 31. RightNow Technologies 32. Sheila Mason & Craig Shepherd (Abridged) 33. Silver Sales Company 34. Spotfire: Managing a Multinational Start-­‐Up 35. Technology Transfer at US Universities 36. Term Sheet Negotiations for Trendsetter, Inc. 37. The Innovator's DNA 38. Why Entrepreneurs Don’t Scale 39. Why Teams Don’t Work 40. Zipcar: Refining the Business Model Recommended reading Since this course was first taught in 2010, the principles and practices of lean startups receive emphasis in every class. Now two books on the topic are available: 1. Blank, S. & Dorf, B. 2012. The startup owner's manual: The step-­‐by-­‐step guide for building a great company, Pescadero, Calif., K&S Ranch. 2. Ries, E. 2011. The lean startup: How today's entrepreneurs use continuous innovation to create radically successful businesses, New York, Crown Business. A highly recommended reference on strategy concepts in this course is Frank Rothaermel’s textbook on strategic management. Here is a web site to learn more about the book: http://flavors.me/ftrStrategy. Suggested reading Students will hear frequent reference to these books and may wish to consult them. 1. Byers, Dorf & Nelson. 2010. Technology ventures: From idea to enterprise, Boston, McGraw-­‐Hill. 2. Drucker, P. 2004. Innovation and entrepreneurship: Practice and principles, Oxford, Elsevier Butterworth-­‐Heinemann. 3. Hargadon, A. 2003. How breakthroughs happen: The surprising truth about how companies innovate, Boston, Harvard Business School Press. 4. Heath, C. & Heath, D. 2007. Made to stick: Why some ideas survive and others die, New York, Random House. 5. Kawasaki, G. 2004. The art of the start: The time-­‐tested, battle-­‐hardened guide for anyone starting anything, New York, Portfolio. 6. Kotter, J. 2007. Leading change, Boston, Harvard Business School Press. 7. Moore, G 2007. Crossing the chasm, Oxford, Capstone. 8. Ormerod, P. 2005. Why most things fail: Evolution, extinction and economics, New York, Pantheon Books. 9. Pfeffer, J. & Sutton, R. 2000. The knowing-­‐doing gap: How smart companies turn knowledge into action, Boston, Harvard Business School Press. Giuliano, Venture Creation, MGT 6165, Spring 2014 Course Syllabus, Georgia Institute of Technology, Page 4 of 7 Schedule Week Date Lecture and other activity Preparation for this week 1 7 Jan Obtain all required readings 2 14 Jan Am I an entrepreneur? What’s my strategy? How do I create, recognize, or find opportunities? Part 1 of 2 3 21 Jan 4 28 Jan 5 4 Feb Prepare the case: -­‐ Early-­‐stage business vignettes Read: -­‐ Recognizing opportunities: Innovator as entrepreneur -­‐ Managing oneself -­‐ The innovator's DNA How do I create, Prepare the case: recognize, or find -­‐ Sheila Mason & Craig Shepherd opportunities? Part 2 of Read: 2 -­‐ Identifying and exploiting the right entrepreneurial opportunity…for you What is an elevator -­‐ Open innovation and strategy pitch? -­‐ Technology transfer at US universities How do I screen, Prepare the cases: evaluate, and shape -­‐ ONSET Ventures opportunities? -­‐ Entrepreneurs at Twitter: Building a brand, a social tool or a tech powerhouse? Read: -­‐ How venture capitalists evaluate potential venture opportunities -­‐ Legal aspects of entrepreneurship: A conceptual framework -­‐ Capturing the value of intellectual capital: Mastering the legal aspects of business How do I plan a Prepare the case: venture? -­‐ BP's Office of the Chief Technology Officer: Driving open innovation Read: -­‐ Analyzing new venture opportunities -­‐ Business model analysis for entrepreneurs -­‐ Note on business model analysis for the entrepreneur -­‐ How to write a great business plan Giuliano, Venture Creation, MGT 6165, Spring 2014 Course Syllabus, Georgia Institute of Technology, Page 5 of 7 Schedule (continued) Week Date Lecture and other activity Preparation for this week 6 11 Feb How do I build a team? 7 18 Feb 8 25 Feb Submission and discussion of the 1st case-­‐study report How do I finance the venture? Part 1 of 2 Prepare the cases: -­‐ Ockham Technologies -­‐ Managing Segway’s Early Development Read: -­‐ A "rich-­‐versus-­‐king" approach to term sheet negotiations -­‐ The discipline of teams -­‐ Why teams don’t work -­‐ Managing collaboration: Improving team effectiveness through a network perspective Complete the 1st case-­‐study report: Blink Booking 9 4 Mar How do I finance the venture? Part 2 of 2 10 11 Mar How do I lead the venture? 11 12 18 Mar 25 Mar 13 1 Apr Spring holiday Elevator-­‐pitch competition How do I promote growth and realize value for stakeholders? Part 1 of 2 Prepare the cases: -­‐ Zipcar -­‐ NanoGene Technologies Read: -­‐ Financing new ventures -­‐ Funding new ventures: Valuation, financing and capitalization tables Prepare the case: -­‐ Term sheet negotiations for Trendsetter, Inc. Read: -­‐ Deal structure and deal terms Prepare the cases: -­‐ Applied Research Technologies -­‐ Spotfire Read: -­‐ Why entrepreneurs don’t scale -­‐ Leadership for change: Enduring skills for change masters Prepare for the elevator-­‐pitch competition Prepare the case: -­‐ RightNow Technologies Read: -­‐ Achieving profitable growth and market value Giuliano, Venture Creation, MGT 6165, Spring 2014 Course Syllabus, Georgia Institute of Technology, Page 6 of 7 Schedule (continued) Week Date Lecture and other activity Preparation for this week 14 8 Apr Prepare the cases: -­‐ Baidu.com: Valuation at IPO -­‐ Silver Sales Company 15 15 Apr How do I promote growth and realize value for stakeholders? Part 2 of 2 Review 16 22 Apr Submission and discussion of the 2nd case-­‐study report Review the major themes of the course to prepare for the 2nd case-­‐study report Complete the 2nd case-­‐study report: Envia Systems Giuliano, Venture Creation, MGT 6165, Spring 2014 Course Syllabus, Georgia Institute of Technology, Page 7 of 7