BUSN572 Innovation and New Ventures
Instructor
Andy Borchers, DBA
Bill Riffe, PhD
1700 West Third Ave.
Flint, MI 48504
Phone:
810-762-7983 (Borchers)
810-762-7849 (Riffe)
Dr. Borchers Office Hours
Monday/Thursday – 1-3pm
Tuesday/Friday 10-11:45am,
Other times by appointment
Credit Hours: 4
Term: Fall, 2007
E-Mail: aborcher@kettering.edu
wriffe@kettering.edu
Dr. Riffe’s Office Hours:
Monday 9-10
Tuesday / Friday 8-12
Thursday 1-3
Course Description: Credit: 4 (4-0-0-4) Four Lecture Hours
Prerequisites: Junior Standing
This inter-disciplinary course focuses on the creation or startup of a new organization based on
an innovation in product, process or delivery. Particular emphasis is placed on creating new
products or services in response to a human need, testing at several stages of the new product
development process, gaining initial customers, gaining distribution, obtaining financial support
and managing the new organization. This is a "hands on" course where students will actually
develop some new product idea and/or prototype, conduct various types of market research and
write initial business plans. The course is flexible to support students interested in a variety of
fields including fuel cell, international and developing country business and biomedical.
Required Material:
Timmons and Spinelli (2004) New Venture Creation: Entrepreneurship for
the 21st Century with PowerWeb and New Business Mentor CD, 7th
Edition ISBN 0073285919
Internet Access – both e-mail and WWW
Outside Sources (instructor provided)
Selections from Affuah, A. (2004). Business Models A Strategic
Management Approach. New York: McGraw Hill.
Christensen, Overdorf (2000). Meeting the Challenge of Disruptive
Change. Harvard Business Review.
Web Resources
BlackBoard: blackboard.kettering.edu
Text websites – register per code provided in textbook
Course Objectives: By the end of the course students will achieve the following objectives:
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1. Students will demonstrate the ability to complete the ideation process and refine ideas
during commercialization. (Bill Riffe)
2. Students will demonstrate a knowledge and comprehension of the structure of an
industry of their choice by analyzing current firms, their market strategies and the impact
of regulation/deregulation. (Andy Borchers)
3. Students will demonstrate an ability to evaluate alternative product or service solutions
to consumer needs and to assess the commercial viability of a new product or service
offering. (Andy Borchers and Bill Riffe)
4. Students will demonstrate an ability to apply life cycle assessment and costing to
alternative product and service offerings. (Andy Borchers)
5. Students will demonstrate the ability to create a business plan for a new enterprise
based on an innovation in product, service or delivery that is economically viable and
environmentally sustainable. (Andy Borchers)
6. Students will demonstrate the ability to assess alternative funding sources for a startup
concern and to identify and propose remedies for new venture startup problems. (Andy
Borchers)
Approximate Grading Scale
Measurement
Creativity and idea generation (Riffe)
Meeting the Challenge of Disruptive Change
Entrepreneurial Mindset (Borchers)
Evaluating Alternatives and industry assessment (Borchers)
Financing a startup (Borchers)
Organizing a startup (Borchers)
Participation (Borchers)
Mini-test on Commercialization topics (Borchers)
Term Project (group)
Rocket Pitch (25)
Final Presentation (75)
Written Report (75)
Journal (Riffe)
Total
Point Value
175
25
25
25
25
25
25
75
175
50
625
The instructors will calculate a percentage grade based on points earned divided by points
available. Graduate student grades are scaled:
A
A-
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92.5-100
90-92.4
BC+, C or C-
80-82.4
70-79.9
B+
87.5-89.9
B
82.5-87.4
F
Insufficient
performance
Grades of I can be issued to students who are unable to complete course work during the term
and request it from the instructor. All grades of “I” must be made up within 6 months, per
Kettering University Policy, or they change to grades of 65. Graduate students have 3 months to
complete work or the grade will turn to an F.
Policies
1. Help - Students are encouraged to contact the instructors during office hours, after class, or via
E-Mail if they are having difficulties in the course.
2. Attendance - Students are strongly encouraged to attend all classes and take careful notes.
The instructor reserves the right to sanction students if they have more than two absences
during the term. When a student reaches 4 absences, he/she must meet with the instructor
to explain why he/she shouldn’t fail the course.
3. Conduct - Students are expected to conduct themselves in a professional manner at all times
and to be courteous to their classmates. Smoking and the use of objectionable language are
strictly prohibited in the classroom. This classroom is a PORTABLE COMPUTER and
PHONE "FREE" ZONE. Turn off all portable computers, cell phones and pagers. Please
do not answer a cell phone in the classroom.
4. Academic integrity – The instructor expects students to do their own work at all times. While
it is acceptable to discuss homework and case assignments with others, students should first
attempt to solve assigned work themselves. In no case will copied work from another be
considered acceptable. With respect to papers, students must submit original work done
specifically for this course by the student. Further, students must cite all sources in keeping with
a standard citation style (such as APA). Any cheating on any assignments will result in a score
of zero and a warning. A second offense of cheating will result in a failing course grade and a
recommendation to the department head for further sanction. The instructor periodically checks
to ensure student papers are original using tools such as Turnitin.com. This may also mean using
multiple versions of an exam or checking sources.
5.a. Homework submission (Dr. Borchers’ assignments only) - Students should submit their
work via the Assignment area in BlackBoard. If a student needs to FAX or manually hand in
their homework, it is the student's responsibility to ensure the work was received and graded. Do
not email homework, use the BlackBoard Assignment feature. Please note the following:
a. Each paper must have the student's name prominently displayed.
b. If you post an attachment in BlackBoard, be sure you put your name in the attachment.
Also, be sure the attachment is in Microsoft Word or RTF format. Do not assume that
your instructor has any other computer application. Also, consolidate all of your material
into a single file - don't send pieces.
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c. Do not submit multiple assignments together (e.g. consolidate two papers together).
d. Try to submit your assignment on time. It will be difficult to complete the course by
the end of the term if you do not complete assignments during the term.
e. Do not submit multiple copies of the same assignment. If there is a problem in
transmitting electronically, the instructor will let you know and give you another
opportunity to send the document.
5.b. Homework submission (Dr. Riffe’s assignments only) = Students are asked to submit all
work by email by noon on Monday of each week unless otherwise directed. DO NOT USE
BLACKBOARD for these assignments. If a student needs to FAX or manually hand in their
homework, it is the student's responsibility to ensure the work was received and graded.
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Course Design
Academic Term – 12 weeks
Technical Problem
Space
Student
Created
Fuel
Cell
Creativity – Ideation and
Refinement
Dr. Riffe
A
Potential
Product
Bio-Med
Flint
Problem
Commercialization
and venture funding
Dr. Borchers
Developing
World
Environmental
Business
Proposal for
venture
3rd Party
Assessment
Business Case Assignments
Week
2-3
4-5
6-7
8-9
8-10
10
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Chapters in
Timmons
3
4-5
7-9
10, 12-14
6
All of the above
Section
Case Study
Entrepreneurial Mindset
Evaluating Alternatives
Organizing a Startup
Financing a startup
Business Plan Workshop
Test on Commercialization
Roxanne Quimby
Kurt and John Bauer
TBA
Jim Poss
BUSN-572
Term Project
Objective:
The objective of this project is to develop a product to meet a market need, design
and analyze the product in a paper study (prototypes are optional depending upon resources
available), create a business plan for a start-up company, and develop a marketing approach to
sell the product.
Teams:
Teams will be self-selected based upon the products selected by class vote.
Teams will consist of 2-4 persons. Each team member is expected to make continuing and
important contributions to the completion of the project.
Problem selection: The selected problem should incorporate technical aspects in a technical
solution to an identified market need. The goal is to use existing technology from one or several
disciplines in combination to create a solution. The goal is not to invent new technology. After
presentation by each class member of their idea for a product, the class will vote by secret ballot
and the top “vote-getters” will become the class projects for the term.
Problems like "creating fuel cell powered solutions to over the road trucker’s needs for heat and
power while resting" or "creating cost effective and environmentally friendly power backup
systems for hospitals" are great business problems. “making a more efficient fuel cell " isn't a
business problem - it is a technical problem.
Part I:
Product Development – Technological Track (evaluation included in Dr. Riffe’s
grading)
1. Idea Pitch – Students will individually prepare an oral presentation to their peers during
the first two weeks of class. These ideas will be narrowed down by class vote to a
working set of projects
2. After selection of a project and teams, teams are to prepare a class presentation on their
product that includes
a. Project name
b. Company name
c. Goal of the project
d. Reason why the product is needed in the marketplace
e. This information will be summarized into a five-slide, five minute “preliminary
pitch” after formation of the teams and their initial company organization. This pitch
needs to be a persuasive talk aimed at a potential funding source. This presentation
will be scheduled for presentation early in the term.
3. Teams will spend the term working TOGETHER to develop the product (Innovation)
including discussions of:
a. Design features
b. Materials of construction
c. Manufacturing approaches
d. Marketing directions
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4. Last Chance Pitch - Students will prepare a three-slide, three minute “last chance pitch”
near the end of the term to get additional input from the technical advisors. This project
will be scheduled for presentation late in the term.
Part II:
Business Plan
Students will document their results in four ways.
Elevator Pitch (no formal grade)
Students will prepare a 90 second, oral only presentation. One person per group will
speak. This should be well practiced, but not manuscript delivered.
Rocket Pitch (25 points)
Student groups will prepare a 3 minute presentation with a maximum of 3-4 slides.
One or two persons per group will speak. This should be well practiced, but not
manuscript delivered.
Final Formal Presentation (75 points for oral presentation – due at the final)
Final Formal document (75 points – due at the final exam)
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Rocket/Elevator Pitch
Assessment
1. Idea – Is your idea viable? Does it create customer value? Is it attractive, durable and
timely? Clarity of idea.
Score:
_______________
Comments:
____________________________________________
____________________________________________
____________________________________________
2. Persuasiveness – Have you persuaded your audience to support your idea? Have you
identified potential roadblocks and countered them? Clarity of persuasion.
Score:
_______________
Comments:
____________________________________________
____________________________________________
____________________________________________
3. Ask – is your request (for funding, support, etc.) consistent with the rest of your message?
Score:
_______________
Comments:
____________________________________________
____________________________________________
____________________________________________
4. Presentation – Is your presentation professional?
Do you comply with the time limits?
Score:
_______________
Comments:
____________________________________________
____________________________________________
____________________________________________
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Business Plan Rubric
Summer, 2007
f
Out of _75
/40
Written Report
Opportunity quality
Four anchors – customer value, problem solution, robust
moneymaker, good fit to founder
Likelihood of market acceptance
Likelihood of attracting needed financing
Report quality
Clarity of presentation
Convincing nature
Comprehensiveness/appropriateness of written portion
Correctness of projected statements
Overall visual presentation
/35
Report Subtotal
Presentation
/40
Opportunity Quality
Four anchors – customer value, problem solution, robust
moneymaker, good fit to founder
Likelihood of market acceptance
Likelihood of attracting needed financing
/35
Presentation quality
Professionalism
Appropriate level of detail – product, market, financial, team
Convincing nature – including call for action and fit to audience
Presentation Subtotal
Total
Comments:
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Disruptive Change
Objective:
Student will apply the concepts from “Meeting The Challenge of Disruptive
Change” to an organizational setting they are familiar with.
Assignment: 1. Read the article “Meting The Challenge of Disruptive Change”.
2. Take the on-line reading quiz in BlackBoard.
3. Identify two innovations you have either experienced in your co-op work
experience or have read about. One must be disruptive innovation and the other a
sustaining innovation. Do not use an example covered in the article.
4. Describe the change and apply the concepts from the article, especially “Fitting
The Tool To The Task”. Evaluate how successfully the organization negotiated
the change.
Evaluation: 25 points – 8 points for on-line quiz, 8 points for correctly identifying two
innovations, 7 points for application of article concepts, 2 points for format
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