Technology & Innovation Strategy

Course Overview

Kevin Zhu
PhD, Stanford University
Professor, Rady School of Management, UCSD
https://rady.ucsd.edu/people/faculty/zhu/

Today’s Agenda
• Course framework & Syllabus
– Technology and business innovation for
competitive advantage
• Technology, strategy, and competition:
– Strategic and economic perspectives
• Impacts on industries:
– Technology as transformational agent
• Case study

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 Course Overview

Syllabus
Course Reader

Topics
• Technological change shakes up industries
• FinTech, Block Chain, AI… (ABCD5G)
• Creative destruction & incumbents
• Disruptive tech & new biz
• Innovation & Design Thinking
• Technology standards
• Open innovation in a flat world
• Tech finance & real options
• Wireless Healthcare
• Tech entrepreneurship: ABCD5G
• Real-world projects 4

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 Logic Structure
• Industry-level dynamics
• Disruptive technology 5000 ft

– New business
– Incumbents
• Firm-level decision making
Ground
• Execution

Tech Strategy & L2M

• This course prepares you for L2M
• Systematic frameworks about
Technology  Product  Market*
• M: think global, esp emerging markets
• Serve as judge

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 Intended Audience
• those who anticipate taking management positions in
technology-intensive firms (both start-ups and
established firms) where they must formulate strategy,

• those who anticipate investing in technology markets

and must analyze firm strategy, and

• those who anticipate contracting or consulting with firms

that do much of their business in technology markets.

• Irrespective of your area of specialization, technology will

play a fundamental role in your business and social life
in the years to come.

Information Updating
• The professor’s lectures (and slides) have
the latest information.

• If any conflict (with printed Reader, Ted…),

the lectures override any other sources of
information.

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 Choice of Cases
• All cases are carefully chosen

• To illustrate managerial issues and

business decisions

Mechanism of Learning
• Digital classroom
• Readings: Reader + Cavas + Web
• Lectures, guests
• Discussions, presentations
– Read, think, and be prepared to discuss the
assigned readings and cases
• Case studies
• Projects Active participation is critical

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 Assignments
• Case opening presentation (~1 per group);
• Brief case write-ups (~4);
• Term project (1).

One exam – note date,

mandatory attendance

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Deliverables
• Class participation (individual): 20%
• Assignments (group): 30%
– Case opening presentation(s)
– Case write-ups
• Exam (individual) 20%
• Project presentation/report (group) 30%

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 Case Study
• Case kickoff presentation
– Suggestions in Syllabus

• Case write-ups
– list one major takeaway (what you learned from
studying the case),
– list one concept from the “Required Readings” that is
relevant and useful to analyze the case,
– sharp and thoughtful response to assigned questions
of the case.

• See Syllabus for instructions

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Class Participation

• Read “required materials” before class

• Come to class prepared and ready to roll
• Participation is graded by:

Value added / Air time

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 Credit on Participation
• Upward:
– Active participation (+1)
– Valued-added, insightful comments (+2)
• Neutral:
– Attend class, but do not speak up (0)
• Downward:
– Missing class (-1)
– Arriving late, leaving early (-0.5)
– Cell phone rings…(-0.5)
– Using laptop for off-topic surfing (-0.5)
– Doing other things/distractions in class… (-0.5)

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If you have to miss a class…

• Make up the content:
– Read the case and required reading in advance;
– Turn in deliverables (case writeup);
– Read lecture slides (posted to Ted after class);
– Talk to your group members to learn what has been discussed in
class.

• Book-keeping:
– You didn’t earn the 1-point participation grade
– Will affect your grade

• What to do:
– Try your best NOT to miss a class
– Email TA if you absolutely have to miss a class

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 Logistics
• Read syllabus
• Form a group
• Sign up for case kickoff presentations
• Check Ted routinely
• Submit homework on Ted
• Bring your name tag

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Project: Purpose
• Opportunity to apply concepts to a real
issue
• Focused, detailed analysis
• Case study is okay

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 Project Topics
• If you are interested in …
– New technologies: biometrics, RFID, smart homes, …
– Bring new technologies to market, Go-to market strategies
– Transform industries: Tablet for education
– Wireless healthcare
– Open innovation
– Open source software, SaaS, cloud computing
– International business: BPO outsourcing; M&A
– MoSoLo: M-commerce, social media, mobile TV…
– Green tech – solar energy, smart/digital homes
– ……

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Big Data
• Financial Industry: Fraud detection and social
CRM
– How to use big data and predictive analytics to
improve fraud detection and customer satisfaction?
• Social Data:
– How to use unstructured data online and the social
network to help business?
• http://motivequest.com/
• http://datasift.com/
• http://www.infochimps.com/
• http://www.nielsen.com/us/en/nielsen-solutions/nielsen-
measurement/nielsen-online-measurement.html
• http://www.tnsglobal.com/

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 Crowd Funding
• Sustainability of crowd-funding platforms
– Kickstarter: http://www.kickstarter.com/
– Indiegogo: http://www.indiegogo.com/
• Opportunities for investors?
– https://www.crowdfunder.com/
– https://www.somolend.com/
• Lending
– https://www.kabbage.com/how-it-works

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Open Innovation
• Quirky: product co-creation
– http://www.quirky.com/shop
• Betabrand: co-creation in clothing
– http://www.betabrand.com/

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 Consumer Devices in Healthcare
• Fitness Trackers
– what’s the right direction?
• Fitbit, Jawbone Up, Nike+ FuelBand, etc.
• Scanadu
• Wearable Devices
– Google Glass
– Smart Watch

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Smart Homes
– Raspberry Pi http://www.raspberrypi.org/
• An ARM GNU/Linux box for $25.
• Home automation:
http://www.raspberrypi.org/archives/tag/home-
automation
– Canary
– Piper

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 Pitfalls
• Wait, wait…
• Write a general report on a broad topic
• Qualitative arguments w/o supporting data
• Copy other’s work or from the Internet
(a sure way to get an F)

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Culture in This Class

• Respect others
– but may challenge their ideas
• Build trust
• Equal opportunities
• Work hard and have fun

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 About You
• Your industry
• Company
• Background
• Future Careers

• Submit your Resume on Ted

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Your background

Require extra efforts Open mind,

contribute to class

Class fits majority

Resume … 28

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 The Teaching Staff

We are here to help you learn

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The Teaching Staff

• TA:
– Contact info
– Sign up for case opening
– Attendance notice

• Faculty Assistant:

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 Want to Know Your Professor?

• Web page:
https://rady.ucsd.edu/people/faculty/zhu/

• Office hours: 24x7 (~by email)

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Background
• Specialty:
– Technology + Econ + Mgmt

Technology

Management Economics

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 Industry Experience (1)

• Adobe Systems: Software Manager

– PDF strategy: Reader free to establish standard, $$$
from Distiller

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Industry Experience (2)

• Stanford Mgmt Co:

– Investment portfolio
– Venture Fund

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 Industry Experience (3)
• Advisory, Consulting, Customized Research
• For companies with biz issues such as:
– Innovation & Technology strategy
– Go-to market strategy
– Software development
– Mobile-Social-Local business
– International business
– IT-related planning, implementation and services
• ERP: Enterprise Resource Planning
• SCM: Supply Chain Mgmt
• CRM: Customer Relationship Mgmt

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Active in Research &

Knowledge Discovery
• Topics
– technology-enabled business innovations.
– technology adoption in global environments,
– economic impacts of IT on firms/industries,
– technology standards (esp. wireless standards),
– real options for technology investment.
– bio-tech (recent)
• published in the top academic journals
• serves on NSF research proposal review panels
• holds editorial positions at the top academic
journals.

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 Today: Enabling New S-
Curves via ABCD5G
Smart

T2O2E2
ABCD
T1O1E1

Traditional

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