NJIT - SCHOOL OF MANAGEMENT

Management of Technology Course No: MGMT 620 101 Professor: Manuel M Kakkanattu Tel: Fax : 732-428-7092 (evenings after 7:30 on days without class) 201-827-2191 (business hours) 201-827-3191 Semester: Fall 2011

Email: mmathewk@gmail.com Office Hours: NA

Email is the best way to contact me. TEXT: Strategic Management of Technology and Innovation. Fifth Edition. ISBN: 978-0-07-338154-1 Authors: Burgelman, R.A., Christensen, C.M. & Wheelwright, S.C. Please use Moodle to access the course notes and the handouts. Most cases are from the Textbook unless I have explicitly said that they are from a handout. Course Content The course focuses on the strategic management of technology and innovation. We take an evolutionary process perspective on technology strategy and innovation in this course. The ideas that underlie this perspective are: a. b. c. d. e. A firm's technology strategy emerges from its underlying technological competencies and capabilities; A firm's technology strategy is shaped by external (environmental) and internal (organizational) forces; The enactment of technology strategy within the firm serves to further develop its technological capabilities. The nature of capability development is recursive and events in the environment and organizational history can enhance or detract an organizations technology position. Technology and innovation are examined at the firm, industry and at the level of the technology itself.

We use this perspective at various levels of management (corporate, business, project) and study the process of creating change through technological innovation and internal entrepreneurship. We examine key activities at each of these levels of management, analyze how they interlock, and attempt to understand how such complex systems of activity can be effectively managed. The course is based on research and theory but is practice oriented. Our case discussions of various real life situations will require in-depth analysis to be complemented with specific action recommendations and a willingness to commit oneself to a specific course of action. Course Outcomes Upon completion of the course students should have the following skills: Analytical and Problem Solving Skills a. Have an awareness of the range, scope, and complexity of the phenomena, issues, and problems related to technological innovation and internal entrepreneurship. b. Be able to develop a conceptual framework for assessing and auditing the innovative capabilities of a firm. c. Be able to work out and define strategic management problems related to technological innovation and internal entrepreneurship. Oral and Written Communication Skills a.Be able to make oral presentations using visual aids and answer questions pertaining to the presentations. b.To develop skills to provide opinions in case solutions in an effective manner. (c) To analyze and write case analyses and term paper in a clear and concise manner. Leadership and Ethics a.Be able to work in groups for case presentations, term papers and in class exercises; b.Be able to build relationships with team members that foster cooperation toward group goals; c.Be able motivate team members and also have the ability to objectively evaluate the performance of other group members Technology Skills a.Use PowerPoint / Keynote for presentation Globalization a. To develop an understanding of technology in global industries b. To understand the impact of globalization and the complexity it brings. c. To have the knowledge to assess the needs of standardization versus local adaptation of products, practices and systems.

Performance Evaluation
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The following criteria will be used for your performance evaluation in this course. Attendance & class Participation Case Presentation Case Report Examination Term Paper (Group Project) In class assignments Total Grading Policy >900 850-899 800-849 750-799 700-749 <700 100 200 200 200 250 100 1050

A B+ B C+ C D

Student Responsibilities You should come prepared for every class. The quality of class time is considerably enhanced when you come to the class with the assignments already completed. My goal is to stimulate a lively dialogue. During the lectures, discussions, and case analyses, I will call upon students to share their understanding and insights about the readings and cases. Attendance and Class Participation Absence and tardiness significantly reduce the learning that can occur in class and tardiness is disruptive to other participants. Therefore, attendance and tardiness are considered as a part of the participation grade. If you must be absent or late to a class, it is courtesy to make arrangements with the instructor ahead of time. I will allow two absences without your grade being affected. If you are unable to participate more than two times, your class participation grade will be affected. Effective participation includes contributions that reflect preparation through reading the required material. Effective contribution should substantially improve the quality of discussion in the class. 2. Case Presentation and Report Students will be assigned to groups. Each group will be required to make one case presentation to the class and submit one written brief on a case being presented by another group. Questions will be provided to guide your presentation. Your answers to the case questions should include the theory covered in the articles assigned to you and the facts and figures provided in the case. In general do not restate the information in the case. Use the information to analyze issues and

recommend a course of action. Use industry information and current data to strengthen your recommendations. The

3. Examination There will be two exams. The exams will consist of multiple choice questions, short answers and essays. The exact format of the examination will be decided after discussion in class. 5. Group Project (Term Paper) The group project allows you to analyze in depth one or more aspects of the course in detail. This is an opportunity to apply what you have learned to your unique interests, technical background and /or current employer. You should work with others with common interests. In framing the term paper, the group clearly needs to identify a research question to address. The research question needs to be broken into sub-areas, which link to concepts, ideas covered in the class. Groups then need to go to published academic research, popular business press, collect material, formulate their position or opinion and argue the different points of view. Students should group themselves into teams of three or four persons. The project can be to study either: an individual company or a specific innovation or technological advance. No group should have more than four individuals. Each project should develop a specific topic related to the management of technology and innovation. Details of the objectives of this project will be discussed in class; however, you will have a large amount of latitude to design the project to fit your interests. I intend to be closely involved with each project to a) ensure the scope of your project is appropriate, and b) suggest references, etc. to help improve your project (and increase what you learn from the project). Possible topics are: 1. Industry evolution and transformation as a consequence of the emergence of new technologies and regulations Nanotechnology, Alternate Fuels, Healthcare, Genomics etc. Ethical Issues Concerning Technology, Stem Cell research etc. New realities of innovation and technology development Use of new mediums, social networking Facebook, twitter and its impact on technology diffusion, development and overall performance. Managing the Outsourcing process from the point of view of Intellectual Property protection and Workforce skill management Technical and Market analysis of a new emerging technology for a specific industry Issues related to the Standards war and how they play out in the context of a specific technology product Personal music, data storage etc. Impact of Green Management and Sustainable business practices on Innovation and technology management. The role of external agencies in technology development and standard setting

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9. How a new technology can transform an industry- in terms of practices, efficiency, and impact on profit 10. The social implications of new technology social alienation, increased efficiency in production and distribution. Paper Format The finished products of the group project will be: 1) 20-25 page (double-spaced) paper, with exhibits, references. (a) You need to use footnotes for references. Please submit a detailed list of references including websites. (b)The paper should have a clear motivation or research question, analysis of relevant theory and concepts and your summary of the answers that you have found for the questions raised. (c) All references including the website references must be fully cited and end noted. You need to use references from academic, business and technology journals. 2) A 15 20 minute oral presentation by the group. (a) All oral presentations will be accompanied with an animated PowerPoint slide presentation. (b) The presentations should be interesting and will need to keep the class engaged. (c) Presentations that are mere summaries of the paper are not acceptable. (3) All presentations will be evaluated by the professor and your peers. I will ask for your team project proposal a month and a half into the course in late October. A progress report, a list of references, and research questions will be due October 26th. The oral and written reports are graded as one submission. If the group cannot manage its own project (e.g., one member refuses to do his/her share of the work), you should discuss the problem with me, but only after all of your other management techniques and options have failed. Remember, this exercise is also a test of how you can work in a group and overcome hardships. NJIT Honor Code: Students are expected to comply with the University Honor Code. Any violations to the Honor code will be brought to the immediate attention to the Dean of Students. The University Honor Code can be accessed at: http://www.njit.edu/academics/honorcode.php Caveat: The instructor reserves the right to change or revise the syllabus during the course of the term and students will be informed in advance about the change.

Course Schedule INNOVATION AND TECHNOLOGY MANAGEMENT September 1st Conducted by Prof. Shanthi Gopalakrishnan
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Ice Breaker Exercise. Introduction and overview of the course. Reading 1: Integrating Technology and Strategy: A general Management perspective. Pg. 1-12 September 8th STRATEGY, TECHNOLOGY AND INNOVATION Reading 2: What is Strategy? (Handout posted on Moodle) Reading 3: The Core Competence of the organization pg.66-77 Business Week 1: Sonys Move into WebTV, June 27, 2010 http://www.businessweek.com/magazine/content/10_26/b4184038307399.h tm?chan=magazine+channel_news+-+technology In class Exercise September15 th Reading 4: How to put technology into corporate planning pp.62-67 Reading 5: The Art of High Tech Management pg. 226-252 In class Exercise September 22nd TYPES AND PATTERNS OF INNOVATION Reading 6: Exploring the limits of the Technology S-Curve: Component technologies. Pg. 259-277 Reading 7: Exploring the limits of the Technology S-Curve: Architectural technologies. Pg. 278-283 Reading 8: Patterns of industrial innovation pg. 253-258. Case 1a: Electronic Arts in 1995(Class discussion) pg. 164-179 Class Presentation by Group 1 Report Submission by Group 2 Questions 1. 2. 3. What has EA overall business strategy been? What is EA's technology strategy? How does technology strategy tie in to its business strategy? Clearly distinguish between technology and business strategy. Do an industry analysis of the hardware for the gaming industry using the Porter Five forces model. Has the overall structure of the industry changed? Explain.

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What are the advantages of developing hardware and software as opposed to software alone only in the video gaming industry?

Further Class Discussion Case 1b Electronic Arts in 2005: The next generation of convergence (pg. 199-225) 1. How has the convergence of the mobile phone, computers and television industries affected the gaming industry? 2. Do an industry analysis of some the relevant industries. 3. In 2006, what should EAs strategy be for the next five years? Why? How should it execute this strategy?

September 29th

EXAMINATION (2 hour)

October 6th

ORGANIZATIONAL CONTEXT AND INNOVATION Reading 9: Profiting from Technological innovation: Implications for integration, collaboration, licensing and public policy. Pg. 32-48 Reading 10: Strategic dissonance Pg. 563-576. Case 2: My SQL Open Source Database in 2004 pg. 284-304 Class Presentation by Group 3 Report Submission by Group 4 Questions 1.
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What is the level of success achieved by MySQL and what are the reasons for it? What are the different segments of the DBMS market and how do they differ? What is your analysis of the state of DBMS industry? How attractive is it for existing participants and new entrants? Are these issues different for the different industry segments you have identified? Identify and quantify the competitive advantages of MySQL and their sustainability in each market segment.
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What is the stated strategy of the company? How do the companys actions correspond to their strategy? What are the strategic options available to MySQL beyond 2004? What should it do?

In class exercise: Making SMaL Big: SMaL Camera Technologies pg. 350 363 October 13th UNDERSTANDING TECHNOLOGY ADOPTION: CAUSES AND IMPLICATIONS Reading 11: Eager Sellers & Stony Buyers: Understanding the Psychology of New Product Adoption Pg. 822-829 Reading 12: Crossing the Chasm - and Beyond. Pg. 429-434 Case 3: Infosys Consulting in 2006: Leading the next generation of business and information technology consulting Pg. 589-607 Class Presentation by Group 5 Report Submission by Group 6 Questions 1. How is Infosys doing in 2006? What is its strategic position in the IT industry and what are it distinctive competencies? Where does it fit in the industry value chain? How would you describe its culture? 2. Why did Infosys move into the IT consulting market segment? How big is this market and what is its structure? Why form a subsidiary to enter the market segment? 3. What are the rules of the game and how will Infosys try to change them? What do they mean by a Global Delivery Model? 4. How important are Client relationships and institutional knowledge in the consulting industry? Assess Infosys Consulting competency in these areas. Do they have a sustainable advantage? What is it? 5. How will IBM and Accenture view Infosys strategy and how can they respond? 6. What are the interface challenges between the parent and subsidiary? 7. What are the challenges in managing growth at the two companies? 8. Prepare an action plan to assess the companys strengths and weaknesses to stay ahead of the game in terms of strategic position, distinctive competencies & Culture.

October 20th

INTERNAL AND EXTERNAL SOURCES OF INNOVATION Reading 13: Making Sense of Corporate Venture Capital Pg. 792-798 Reading 14: Note on Lead User Research. Pg. 799-804 Reading 15: Living on the Fault line Pg. 855- 876 Case 4: Charles Schwab Inc. in 1999 Pg. 637-654. Class Presentation by Group 7 Report Submission by Group 8 Questions 1. What are some factors that describe the brokerage industry as of the early 1990s? (Note this is a description of the industry) 2. What were some of the key factors underlying Schwab's competitive advantage up until the mid 1990s? How have these factors reinforced each other? 3. How has the Internet affected the brokerage industry? Outline specific changes that the Internet brought about. 4. In 1999 what should Schwab do to protect and leverage its strategic position in the brokerage industry? Please prepare an action plan In Class Discussion Case 5 : Charles Schwab & Inc. 2007: Fixing and Redefining the Core business. 654-667

October 27th

EMERGENCE OF INDUSTRY STANDARDS Reading 15: Predators and Prey: A New Ecology of competition. Handout. Reading 16: The Standard Wars Varian, Hal (Handout) Term Paper Proposals with reference list due Case 5: GolfLogix: Measuring the game of golf (Group 5) Pg. 829 - 846 Class Presentation by Group 2 Report Submission by Group 1 1. 2.
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What should GolfLogix do? Should they go with the sell their services through the Course only or through retail only? Explore the pros and cons of the both options. Will Golfers like/use the GolfLogix Systems Compare and Contrast the complete system with the distance only system. Should GolfLogix offer the complete system? What should GolfLogix do? Discuss the role of GolfLogix in Garmins profile of products.
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In Class Follow-up GPS NAVIGATION Fore! Taking a swing at using GPS for golf http://news.consumerreports.org/cars/2010/06/using-gps-for-golf-skycaddiegolflogix-golfshot-iphone-apps-android.html Apple Tees up Golfshot GPS with International Promotion http://www.reuters.com/article/2009/12/01/idUS11077+01-Dec2009+BW20091201

November 3rd

CHOOSING INNOVATION PROJECTS Reading 17: Managing the internal corporate venturing process. Pg. 955-965 Reading 18: At 3M, a struggle between efficiency and creativity. Pg. 949-954 Case 6: HP& Compaq combined: In search of scale and scope Pg. 668 - 688 Class Presentation by Group 4 Report Submission by Group 3 1. 2. 3.
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Why did HP want to acquire Compaq? Describe, analyze and comment on the acquisition integration planning process. Describe, analyze and comment on the actual execution of the acquisition. Describe some of the integration tools developed by HP. How useful could they be for other firms integrating acquisitions? Why or Why not? What are the things that HP did well? What could they have done better?

In Class Exercise: Business Week 5: Apple vs. Google. January 14th 2010. http://www.businessweek.com/magazine/content/10_04/b4164028483414.htm?

November 10th

Reading 19: Organizing and Leading Heavy weight development teams Pg. 1053-1064

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Case 7: 3M Optical Systems-Managing corporate entrepreneurship Pg. 936948 Class Presentation by Group 6 Report Submission by Group 5 Questions 1. As Andy Wong, how would you handle the authorization for expenditure for the re-launch of the privacy screen? 2. As Paul Guehler would you approve the AFE if Wong had set it up for you? 3. How effective has Wong been as a front line manager in the #m context? How effective has Guehler been as a 3M division president? 4. What is it about 3M that makes it perhaps the most consistently entrepreneurial large company in the world? In class Exercise November 17th STRATEGIC ALLIANCES AND INNOVATION Reading 21: Collaborate with your competitors and win. Pp. 650-657 Business week 6: A Radical Rethink of R&D August 27, 2009 http://www.businessweek.com/magazine/content/09_36/b4145035674883.h tm?chan=magazine+channel_top+stories Case 8: Eli Lilly: The Evista Project pp. 990-1004 (In class Case Discussion) Class Presentation by Group 8 Report Submission by Group 7 Questions 1.
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What is a heavyweight project team and how does it differ from a traditional approach used for organizing development projects at Eli Lilly? What is your assessment of the performance of the two heavyweight project teams described in the case? What factors contributed most to these performance results? In the Pharmaceutical context how far back in the development process should heavyweight teams be deployed? Is the heavyweight project team an approach that you would recommend to Lilly for purposes of commercializing the Evista project? What additional recommendations would you make to Lilly management concerning the use of heavyweight teams going forward.

In class Exercise Business Week 5: Novartis Radically Remaking its Drug Business http://www.businessweek.com/magazine/content/09_25/b4136030131343.h tm
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EXAMINATION 2 (1 HOUR)

December 1st PRESENTATION OF TERM PAPERS Groups 1 to 4 December 8th PRESENTATION OF TERM PAPERS Groups 5 to 8. All Written papers due

Good luck. Work hard and enjoy the course. Class participation is crucial for this course. Make sure that you read current business news. Any changes in schedule will be announced in class.

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