Mgt 511: Techn
nology Commercialization and thee Global Envvironment, Spring 20144
CRN 13793/8:
1
Th 4-630 pm, CRN
C
13976//9: Th 7-930 pm, GSM 2232
Instructor:
Contact:
Yorgos Marinakis, Ph.D., J.D., MB
BA
ymarinak@unm.edu
ation
Informa
1. Name
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Sign. If
I you want me
m to learn your
y
name ffor referencee letters and m
miscellaneouus
networking purposes, prin
nt a sheet off paper with yyour name oon it and placce it in frontt of
you during cllass sessions.
2. We’re
W
onlinee at UNM Learn
L
(learn
n.unm.edu).
3. Reasonable
R
accommoda
a
ation will bee given to anny individuall with a legittimate disabiility.
Please contacct the instrucctor privately
y for arrangeements. If yoou are a quallified personn with
disabilities who might need appropriaate academicc adjustmentts, please com
mmunicate w
with
me
m as soon ass possible so
o that we may make apprropriate arraangements too meet your
needs in a tim
mely manner. Frequently
y, we will neeed to coordinnate accomm
modating
acctivities with
h other offices on campu
us. Course m
materials cann be made avvailable in
allternative formats.
4. Academic
A
In
ntegrity And
derson Schoo
ol of Manageement facultty, staff and students com
mmit
to
o values of trrust, honesty
y, integrity, and
a accountaability. We w
will not tolerrate academic
dishonesty. By
B enrolling in any coursse at Andersoon, the studeent accepts the Andersonn
Academic
A
Ho
onesty Code and affirms the followinng pledge: I will not lie, cheat, fabriicate,
plagiarize or use any otheer dishonestt means to gaain unfair accademic advvantage. Anyy
violation of th
he code of co
onduct will be
b taken verry seriously aand approprriate sanctionns
will
w be applieed. FOR FUL
LL TEXT OF
O ANDERS
SON’S ACA
ADEMIC HO
ONESTY CO
ODE,
please visit htttp://www.m
mgt.unm.edu//honesty
5. Attendance.
A
“Students arre expected to
t attend all meetings off the classes in which theey
arre enrolled. A student with excessivee absences m
may be droppped from a ccourse by thee
in
nstructor witth a grade off WP or WF or the student may receiive a grade oof F at the ennd of
th
he semester. Absences du
ue to illness, or to authoorized University activityy such as field
trrips, athletic trips, etc., are
a to be repo
orted by the student to his/her instructor(s) and tto the
Dean
D
of Students Office.””
RED COUR
RSE MATER
RIALS FOR
R PURCHA
ASE ONLIN
NE
REQUIR
1. You
Y need onee book:
“W
Winning in Emerging
E
Markets:
M
a roaad map for sstrategy and execution” bby Khanna &
Palepu. You can
c buy the pdf
p for $17.50 through H
Harvard
(https://cb.hb
h
sp.harvard.e
edu/cbmp/ac
ccess/232256
624), or you can buy it on
n Amazon
(h
http://www.aamazon.com
m/dp/B00D57
7JFTC).
2. “CountryMa
anager” by Interpretivee Simulations. Look forr the email. C
Costs $39.955.
3. You
Y need to buy
b the Harv
vard Businesss Review cooursepack ffor ~$70 at
https://cb.hbs
sp.harvard.ed
du/cbmp/acc
cess/2322555
56
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4. Wall Street Journal. Student subscriptions for the Spring semester are at
WSJ.com/studentoffer. Be sure you use my name as your instructor, if prompted.
RECOMMENDED AUDIO AND VISUAL
Bloomberg Podcasts (free, on iTunes or at http://www.bloomberg.com/podcasts )
Bloomberg TV (free, http://www.bloomberg.com/tv )
The Economist Podcasts (free, on iTunes or at http://www.economist.com/multimedia )
Harvard Business Review Youtube Channel (http://www.youtube.com/user/HarvardBusiness )
OPTIONAL ARTICLES
Students may download the cited articles from UNM Research Databases.
We do not put articles on WebCT because that would be a violation of copyright law. It will take
you only a few minutes to locate and download all of the articles we cite. Here are two ways to
access articles.
1. a. Point your browser to this link:
http://elibrary.unm.edu/articles/resource.php?qid=60
b. Then select Business Source Complete. If you are off campus, you will then be prompted to
log in. c. That brings you to a search screen. From there you can search by article title, by author,
by keyword, or whatever else you want. Note that I included the article citations in the Syllabus.
The Powerpoints also show the citation information.
OR:
2. a. Point your browser to the UNM online catalog at http://libros.unm.edu.
b. From there select Journal Title, type in the title of the journal, and click Submit.
c. On the next page, click on links that include "...[electronic resource] UNM Online..." That will
take you to the journal webpage, where you can navigate to the desired volume and issue.
Some students like to find articles using Google Scholar (http://scholar.google.com). If you are
off campus, Google Scholar will let you see the abstracts but not the articles. You will then need
to use one of the above methods to retrieve the article.
NATURE OF THE COURSE
This course is custom-designed especially for you, with reference to Harvard Business School’s
modules, to the primary literature, and to student feedback. I select the simulations, cases and
articles, and make my own Powerpoints. At the end of the semester, you will have the
opportunity to provide feedback on the selection of materials. You will help design the course for
the semester that follows you.
One of my goals in this course is to cover material that you need to know but that you
will not cover elsewhere. Because most of you already have some coursework or background in
international business, we will be focusing specifically on the emerging markets portion of
international business. These markets are of great interest because, for many firms, emerging
markets contain more profit potential than developed markets. These markets require a different
set of skills than developed markets, and in this class you will acquire those skills. In the
technology commercialization section, we’ll begin with “the innovator’s dilemma.” This theory
explains why firms fail, in the face of disruptive innovation, precisely because they do
everything right. But because this phenomenon mainly afflicts larger firms, we’ll also look at
how small and medium-sized firms (SME’s) approach the challenge of technology
commercialization. They have their own unique set of problems, and they make their own unique
set of errors. We’ll also look at the strategies and the competencies required by these enterprises.
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The cases we cover will enable you to discuss the following aspects of the international
technology business:
How do identify and exploit institutional voids in emerging markets? (Mobile banking, Sarvajal)
How do you engage local competitors in emerging markets, and what are the business model
implications? (Novozymes)
How do you make products specifically for emerging markets? (Tata Nano)
How do companies stay competitive in high-growth industries? (Wii Encore?)
How do firms manage R&D investment tradeoffs between existing technology versus investing
in a new, potentially disruptive technology? (Back Bay Battery)
How do you launch a completely novel technology, and select a target application and target
market? (Emotiv)
How does technology assist in economic development? (Competing)
How do you manage technology in the international policy arena? (World Climate)
Performance Measures and Grading
Your grade will be determined as follows:
30 points for your CountryManager team simulation/presentation
20 points for your Back Bay Battery simulation
5 points each for your answers to case focusing questions. (40)
5 points each will be deducted if you miss Competing for Development and World Climate.
5 points each for your Zomeworks and Novozymes cases.
More details on these assignments, including grading rubrics, will be provided separately.
GRADING SCALE
95-100%….………...A
90-94%......................A88-89%……………..B+
85-87%……………..B
80-84%......................B78-79%……………..C+
75-77%……………..C
70-74%......................C68-69%....…………..D+
65-67%....…………..D
60-64%......................D< 59%..……………..F
How to Succeed in This Class
The focusing questions will help you prepare for the discussions. Participating in the classroom
case discussions will help you determine whether you sufficiently understand the cases. The
simulations will help you practice your new understanding and make this knowledge your own.
If you put these off to the last minute, you will not enjoy their benefit.
I am entitled to expect from you a minimum of 3 hours of homework and study each
week per credit hour. Remember, that is the minimum. “Homework and study” means sitting in a
quiet place without distractions (such as a library carrel) so you can concentrate. It does not
mean setting up in a café, opening up your laptop to Facebook, receiving and sending text
messages on your phone, looking up whenever someone new walks in the door, etc.
I suggest that you keep a study time sheet (see end of syllabus). If you want to discuss
your grade with me, the first thing I will ask to see is your study time sheet. The study time sheet
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is an excellent self-management tool, and will usually explain why you are dissatisfied with your
academic performance.
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MGT 511 - COURSE AGENDA
__________________________________________________________________
Part 1. Global Environment: emerging markets
__________________________________________________________________
SESSION ONE (Thursday, January 23, 2014)
Presentations: Introduction to the Course & Syllabus. Introduction to Interpretive Simulations’
“CountryManager.” Consumer research. Brand equity.
Presentation: Levels of uncertainty; shaping views.
Optional Articles: Courtney, Hugh G., Kirkland, Jane and Viguerie, S. Patrick. 1997. Strategy
Under Uncertainty. Harvard Business Review.
Hagel, J., Brown, J.S. and Davison, L. 2008. Shaping strategy in a world of constant disruption.
Harvard Business Review October: 80-89.
Form your teams. You will have access to the individual CountryManager for one week.
For next time: Read “Mobile banking for the unbanked” and Khanna & Palepu chapters 1-3. (in
coursepack). Read the CountryManager case (Buy the CountryManager simulation and read the
student manual, pages 7-22). Submit your answers to the focusing questions on UNM Learn
by Wednesday midnight before class.
Focusing questions: 1. Is mobile banking for the poor the next “killer app”?
2. What alignment of the various players would allow this market innovation to succeed?
____________________________________________________________________
SESSION TWO (Thursday, January 30, 2014): Identifying and Exploiting Institutional
Voids
Case: Mobile banking for the unbanked
Presentations: Adapating and Shaping strategies revisited: Kirznerian- and Schumpeterianoriented firm behaviors. Catalytic innovation. Khanna & Palepu chapters 1-3. Optimal plant
locations.
Optional Articles: Sundqvist, S., Kyläheiko, K., Kuivalainen, O. and Cadogan, J.W. (2012).
Kirznerian and Schumpeterian entrepreneurial-oriented behavior in turbulent export markets.
International Marketing Review, 29(2), 203-219.
Team play on CountryManager begins. You have 120 replays, so you can go back to any
year and start again.
Optional Article: Christensen, C.M., Baumann, H., Ruggles, R. and Sadtler, T.M. 2006.
Disruptive innovation for social change. Harvard Business Review December: 94-101.
Optional Videos: M-Pesa Ad (http://www.youtube.com/watch?v=zQo4VoLyHe0); Interview
with Nick Hughes (http://www.youtube.com/watch?v=J-PDSN-SrEk) .
For next time: Read “Sarvajal” and “Competing through Business Models (A)” (both in
coursepack). Submit your answers to the focusing questions on UNM Learn by Wednesday
midnight before class.
Focusing questions: Sarvajal: 1. What should Shah do about the problems in Vasai?
2. What are the strengths and weaknesses of the Sarvajal business model? How big can it get?
3. As Shah, are you in favor of the leasing model or opposed to it? Why? As a leasing company,
would you extend credit to Sarvajal in the form of leases? Would it be expensive? How
expensive?
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4. What other services in addition to water could use this business model if successful?
5. From a venture capital/private equity point of view, what is the exit/liquidity opportunity?
____________________________________________________________________
SESSION THREE (Thursday, February 6, 2014): Multinationals from the Developed
World
Case: Sarvajal.
Presentations: Graphical analysis of business models. Distribution coverage. Marketing plan.
Optional Articles: Casadeus-Masanell, R., and Ricart, J.E. 2011. How to Design a Winning
Business Model. Harvard Business Review Jan.-Feb.: 100-107.
Eyring, M.J., Johnson, M.W. and Nair, H. 2011. New business models in emerging markets.
Harvard Business Review January-February: 88-96.
http://www.youtube.com/watch?v=uLHwOsNLWKY
Optional Videos: Eight19 and Solar Aid explain pay-as-you-go solar
(http://www.youtube.com/watch?v=4UENEDV6V_g ); Point10tv : Anand Shah, CEO, Piramal
Foundation & Sarvajal - Part 1 (http://www.youtube.com/watch?v=1AR8xZu2w5c ); BP Stoves
in India (http://www.netroadshow.com/custom/bp/bpflv3.asp?cf=053008b ).
For next time: Read “Novozymes” and “Strategies for Competing in a Changed China” and
Khanna & Palepu chapter 4 (in coursepack). Submit your answers to the focusing questions
on UNM Learn by Wednesday midnight before class.
Focusing questions: 1. How should Novozymes relate to local competitors? By competing on
technological innovation only in high-margin verticals? Or through a separate subsidiary with a
new low-cost business model for commoditized verticals?
2. How should Novozymes react to the potential commodization of their type of product?
3. What if they converted their business process to software?
____________________________________________________________________
SESSION FOUR (Thursday, February 13, 2014): Emerging Giants from Fast-Growing
Emerging Markets; Globalization of Emerging Giants
Case: Novozymes.
Presentations: Competitive Strategies for Engaging Local Competitors in Emerging Markets;
combating commoditization; global R&D. Khanna & Palepu chapter 4. Pricing. Gross
contribution analysis.
Optional Articles: Khanna, T. and Palepu, K.G. 2005. Strategies That Fit Emerging Markets,
Harvard Business Review June: 63-76.
Khanna, T. and Palepu, K.G. 2006. Emerging Giants. Harvard Business Review October: 60-69.
For next time: Read “Tata Nano” and Khanna & Palepu chapter 5-7 (in coursepack). Submit
your answers to the focusing questions on UNM Learn by Wednesday midnight before
class.
Focusing questions: Tata Nano: 1. How big a bet should Tata Motors make on the Nano?
Rationalize your position.
__________________________________________________________________
SESSION FIVE (Thursday, February 20, 2014): Emerging Giants from Fast-Growing
Emerging Markets; Globalization of Emerging Giants
Case: Tata Nano.
Presentations: Khanna & Palepu chapter 5-7.
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Optional Article: Ray, S. and Ray, P.K. 2011. Product innovation for the people’s car in an
emerging economy. Technovation 31(5-6): 216-227.
Optional Video: Tata Nano launch ad (http://www.youtube.com/watch?v=3WB87eo_obU) .
For next time: Work on your CountryManager simulations.
__________________________________________________________________
SESSION SIX (Thursday, February 27, 2014)
Work in class in your CountryManager teams.
For next time: CountryManager Presentations.
__________________________________________________________________
SESSION SEVEN (Thursday, March 6, 2014):
Hard Copies of All Presentations Due Today at Beginning of Class
Class Presentations Today.
For next time: Read “Back Bay Battery” (simulation case) and “Catching the Wave” (in
coursepack). Submit your answers to the focusing questions on UNM Learn by Wednesday
midnight before class.
Focusing question: Catching the Wave: 1. Why did this happen repeatedly in the disk drive
industry? Why weren’t subsequent companies able to learn the important historical lessons about
the threat of disruptive technologies? 2. Where do you see disruptive technologies threatening
successful, established companies today? 3. If you were running one of the companies you
identified in #2 above, what strategy would you use to counter the disruptive threat? If you
wanted to enter the industry, what strategy should you use?
__________________________________________________________________
Part 2. Technology Commercialization
__________________________________________________________________
SESSION EIGHT (Thursday, March 13, 2014): Disruptive Innovation, Part 1
Presentations: Disruptive innovation, low end encroachment, incumbent inertia. Catching the
Wave. How to Play Back Bay Battery.
Optional Articles:
Schmidt, G.M. and Druehl, C. T. 2008. When Is a Disruptive Innovation Disruptive? Journal of
Product Innovation Management 25:347–369.
Optional Videos: Disruptive innovation explained
(http://www.youtube.com/watch?v=qDrMAzCHFUU ); Tech’s Rust Belt Takes Shape
(http://online.wsj.com/article/SB10001424127887323809304578431211400776432.html ).
For next time: Run the Back Bay Battery simulation.
__________________________________________________________________
SPRING BREAK (March 16-23)
For next time: Read “Wii Encore?” and “Which strategy when?” (in coursepack). Submit your
answers to the focusing questions on UNM Learn by Wednesday midnight before class.
Focusing questions: 1. Analyze the macro view of the video game industry and Nintendo’s
business cycle. 2. Discuss how technology companies can cope with a fast-paced environment.
3. Analyze the disruptive innovations that are affecting Nintendo. What options does Nintendo
have to respond?
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__________________________________________________________________
SESSION NINE (Thursday, March 27, 2014) Disruptive Innovation, Part 2
Case: Wii Encore?
Presentation: Dynamic/design capabilities; strategic management.
Optional Articles: Subramanian, A.M., Chai, K.-H.,Mu, S. 2011. Capability reconfiguration of
incumbent firms: Nintendo in the video game industry. Technovation 31: 228–239.
Teece, D.J., Pisano, G., and Shuen, A. 1997. Dynamic capabilities and strategic
management. Strategic Management Journal 18(7): 509-533.
Vergne, J.-P. Durand, R. (2011). The Path of Most Persistence: An Evolutionary
Perspective on. Path Dependence and Dynamic Capabilities. Organization Studies, 32(3): 365382.
Zomeworks and Novozymes assignments made available today.
For next time: Read “Emotiv Systems Inc.” (in coursepack). Submit your answers to the
focusing questions on UNM Learn by Wednesday midnight before class.
Focusing questions: 1. Should Emotiv keep trying to convince major console makers to endorse
its technology as part of their platform, or is just being PC-enabled sufficient for the launch?
2. If Emotiv manages to convince one of the console makers in time for a Fall 2008 debut, what
marketing strategy (price, channel, consumer promotions, etc.) would best facilitate rapid
adoption? How about if EPOC is only PC enabled?
3. What kind of demand could materialize for the EPOC if it is console enabled? How relevant is
the Guitar Hero analogy in answering this question?
4. Do any of the non-gaming applications for Emotiv’s technology seem like better alternatives
to gaming?
5. What do you think about Le and Do’s long-term vision for BCI technology?
____________________________________________________________________
SESSION TEN (Thursday, April 3, 2014): Technology Commercialization
Case: Emotiv Systems Inc.
Presentation: Zomeworks
Optional Videos: Tan Le: A headset that reads your brainwaves
(http://www.ted.com/talks/tan_le_a_headset_that_reads_your_brainwaves.html ); Linking Angry
Birds with Neuroscience (http://live.wsj.com/video/linking-angry-birds-with-neuroscience/9089F0C2-F190-4B2C-81C7-859B62D4C4BA.html ); Eye-tracking technology coming soon
(http://online.wsj.com/article/SB10001424127887324105204578382353581452288.html ).
For next time: Read “Competing for Development” (A through C). Submit your answers to
the focusing questions on UNM Learn by Wednesday midnight before class.
Focusing questions: Competing for Development: 1. What are the key trade-offs associated
with the U.S. $65, 000 investment? What are the implications of pursuing a mass production
strategy for the metal stove?
2. What is the right price for CHF’s metal stove? What makes it the right price? Is the
intervention sustainable at this price point?
3. What aspects of the CHF portfolio are likely to be affected by this decision? How would the
decision influence the current partnerships with the ITDG/PA and LBNL? What are the longterm implications of the US $65,000 investment for international donors and local organizations?
4. If CHF Sudan pursues the investments, what reactions do you expect from international
donors (e.g., USAID), local communities (especially organizations representing women IDPs)
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and new entrant NGOs selling cheaper stoves (e.g., Aprovecho and the Lifeline Fund)? How do
you anticipate, counteract or leverage these reactions?
______________________________________________________________________________
SESSION ELEVEN (Thursday, April 10, 2014): Technology & Economic Development
Role Play: TO BE RUN IN CLASS: Competing for Development (A) through (C)
Optional Videos: Darfur Stoves Project (http://science.kqed.org/quest/2008/05/20/producersnotes-darfur-stoves-project/ ; http://science.kqed.org/quest/video/darfur-stoves-project/ ); Oxfam
in Darfur: Building stoves, saving lives (http://www.youtube.com/watch?v=LozcmUINPHY ).
For next time: read your World Climate briefing.
______________________________________________________________________________
SESSION TWELVE (Thursday, April 17, 2014): Technology and Public Policy
Presentation: World Climate simulation.
Simulation/Role Play: TO BE RUN IN CLASS. World Climate: Negotiating a Global Climate
Change Agreement
(https://mitsloan.mit.edu/LearningEdge/simulations/worldclimate/Pages/default.aspx)
Course evaluations today.
______________________________________________________________________________
SESSION THIRTEEN (Thursday, April 24, 2014)
Class does not meet. Work on your Zomeworks and Novozymes cases.
______________________________________________________________________________
SESSION FOURTEEN (Thursday, May 1, 2014)
Class does not meet. Work on your Zomeworks and Novozymes cases.
______________________________________________________________________________
SESSION FIFTEEN (Thursday, May 8, 2014)
Zomeworks and Novozymes cases are due.
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Study Time Sheet
Date
Place
Subject
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Start Time
Stop Time