MBAD 698 Loyola Marymount University Information Age Strategy MBAD 698 01 Loyola Marymount University Summer Session I- 2007 Meeting Information: Day and Time: Dates: Place: Monday and Wednesday, 7:10 – 10:10 PM May 14 – June 22, 2007 Hilton room 119 Instructors: Names: Jeff Covert and Carlos Cruz-Aedo Contact: Jeff Covert 818-793-1264 jcovert@lmu.edu Carlos Cruz-Aedo 310-567-7349 ccruz_aedo@lmu.edu Support: Before and after the class; by appointment; by email and phone Class Collaboration/Information: www.lmu.edu/blackboard Summary This MBAD 698 course studies how to use technology to extend, and leverage strategy. Information technology is not a panacea, but can be used to accelerate and achieve strategic objectives. For example, Goodyear Tire stopped making prototypes in favor a virtual design process and saved 2.6% in cost of goods sold, which saved millions of dollars per quarter. DirecTV spends $3 for each customer’s monthly paper mailed invoice. Online billing accelerated their cash, reduced costs, and enhanced customer satisfaction for DirecTV’s five million clients. We study the work of Geoffrey Moore, Michael Treacy, Clayton Christiansen and others. The class has the following hands-on learning objectives: Identify strategic objectives, leverage technology conceptually, and the development of a successful capital business case. We will achieve these objectives by combining real world experiences, guest speakers, relevant reading, and case study. The class focuses on how to leverage technology, not configure or assemble technology, and therefore is business-driven. The tools and reading assigned in class are utilized today in many organizations. Case work will bring a level of familiarity to the tools and processes. These topics have been actual interview questions from previous students. At the end of the course you should be comfortable understanding, evaluating, and formulating an organization's business strategy and corresponding technology direction. This understanding will be from the perspective of a CEO, CFO, COO, CIO or business unit leader. Prerequisites A broad understanding of strategy and the usage of strategic alternatives is required. The minimal required course is: MIS (MBAA 609) and ideally the completion of a graduate-level business strategy course. Required Textbook: Strategic Management of Technology and Innovation Burgelman, Christensen, Wheelwright, McGraw-Hill Irwin (2004) ISBN: 0-07-253695-0 Case Study: 2006 Covert Cruz-Aedo 1 2/2006 MBAD 698 Loyola Marymount University The small teams will identify subject organizations from the popular press. A case outline will be provided to follow the progression from business drivers to strategy and from strategy to technology approach. Outstanding cases will be those that demonstrate creativity with the analysis and remain within the format. Class Participation: Each class will include group discussion. There is an incentive of 10% of the course grade for class participation. You are called upon to draw from your experience at work, readings or in any other kind of decision making situation. Try to interpret how textbook and lecture topics can apply to those situations. It is therefore, necessary for you to have read the assigned readings before you come to class and be prepared to share your thoughts and questions. If you are uncomfortable with these ad hoc comments you may present a 10 minute relevant topic for the 10% grade. Additional readings will be assigned as necessary. You are responsible for all readings assigned below as well as those assigned during the course of the semester. Grade Allocation: Individual in-class case 1 Quiz 1st Group Case Business Case research: 2nd Group Case Class Participation: TOTAL: 10 % 10% 20 % 20 % 30 % 10 % 100% Grading Policy: Letter grades are not given during the course of the term. At the end of the term the point scores are totaled and letter grades assigned accordingly. You may use the following scale to judge your performance. 95-100% 90-94% 87-89% 83-86% 80-82% 77-79% 73-76% 70-72% 65-69% <65% 2006 Covert Cruz-Aedo A AB+ B BC+ C CD F 2 2/2006 MBAD 698 Loyola Marymount University COURSE OUTLINE Date 14-May General Area Topic Course Overview Course Overview Create, Extend, Technology Literacy, Treacy 3 axis maps, Balanced Scorecard, Five Leverage Forces model 16-May Strategy Creation What is Strategy & Core Competence Electronic Arts 21-May Innovation Innovator’s Dilemma Examples from text 23-May Why Extend Strategy? Nypro Case 28-May Professor Only Management Perspective pp. 1-12 J/C Core pp. 102 -129 Strategic Intent pp. 550-562 EA pp 83 - 102 Innovator pp 208-223 J Quiz 1 Nypro pp 501-510 Individual Case J C University Holiday-Memorial Day 30-May Project Justification A complete capital business case Web research project assigned 04-June Group Case 1 U.S. Telecom Industry 06-June Discovery Driven Planning Product Lifecycle Discovery Driven Planning 13-June Relational Product Design Product Development 18-June Group Case II Otis Elevator 20-Jun Final Final Test 11-June Reading due Assignments due 2006 Covert Cruz-Aedo Living on the Fault Line 3 Project Justification Discovery-Driven pp 838 - 846 Competing on Capabilities pp 846 - 848 Team New Zealand pp 1005-1012 C Steve Smith – Honda Finance here -- C Business Case Research due J Capital DecisionMaking Exec Summary I J C -- -- C OR J? J/C 2/2006