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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL

Syllabus for Managing Innovation

Design Thinking: Why Innovation Matters

8:30AM Mon, Jan 25, Hawes Hall 203 (Classroom)

TOPIC
Building and Managing Innovation Systems

We will begin the course by reviewing IDEO -- one of the world's leading product development firms, and its innovation
culture and process. You have seen the case before but it is important to know it well since the course builds on the
insights from IDEO. The case issues will be revisited frequently throughout the course (incl. a potential field trip).

Emphasis is placed on the important role of prototyping and experimentation in general, and on the design of the very
successful Palm V handheld computer in particular. Dennis Boyle, a studio leader, is asked by the business start-up
Handspring to develop a novel hand-held computer (Visor) in less than half the time it took to develop the Palm V,
requiring several shortcuts to IDEO's legendary innovation process.

MATERIALS
IDEO Product Development

Course Overview

IDEO Case Summary

ASSIGNMENT
1. How would you characterize IDEO's product innovation culture, process and philosophy? What are the core
elements?

2. If you were running IDEO, what would you do? Would you accept the project as is? Persuade Handspring's
management to change its aggressive launch schedule? Or would you decline the project? In your discussions, please
consider the IDEO and Handspring perspectives.

3. Any questions about the course?

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Wed, Jan 27, Hawes Hall 203 (Classroom)

TOPIC
Innovation, Technology and Process Change

Many firms that are trying to increase their innovation productivity face management issues addressed in this case.
BMW, a firm known for product excellence, has decided that its proven development process need to be radically
reengineered. Integral to these efforts is the extent to which new information technologies can be leveraged for
increased development performance. But how should senior management transform the organization and what impact
will it have on its premium products?

MATERIALS
BMW AG: The Digital Car Project (A)

BMW AG: The Digital Car Project (B)

Ultimate Creativity Machine: How BMW Turns Art into Profit

ASSIGNMENT
1.What explains the success of BMW products? What role does its innovation process play? How does it work?

2.What are the risks if BMW changes its innovation process and/or organization too quickly and too radically? What are
the risks if they change too slowly? What could happen to the culture?

3.Should senior management use the derivative 3-Series project for implementing the new development process? Or
should they drive change through the flagship 7-Series project?

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Mon, Feb 1, Hawes Hall 203 (Classroom)

TOPIC
Design Driven Innovation

Bang & Olufsen is world-renowned for its highly distinctive products whose appearance, functionality are highly prized
by its loyal customers. In 2004, the firm begins experimenting with "supplemental innovation", attempting to integrate its
Idealab, whose purpose is to explore "extensions" to the company's product development process.

MATERIALS
Bang & Olufsen: Design Driven Innovation

Bang and Olufsen Website

Description of B&O Competencies

ASSIGNMENT
1. What is your assessment of the competitive situation in which B&O finds itself in 2006? What are they really good
at? What should they be worrying about?

2. B&O's radical design driven approach, which emphasizes (for example) "Manufacturing for Design" rather than
"Design for Manufacture", is at odds with conventional business wisdom at many points -- what are the advantages and
disadvantages of this contrarian approach? How does it help the company compete? Is it sustainable?

3. What is your assessment of the Idealab initiative? Is it a good approach to changing the design process at B&O?
Will the plan work?

8:30AM Tue, Feb 2, Hawes Hall 203 (Classroom)

TOPIC
A team from NASA will discuss course projects

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Wed, Feb 3, Hawes Hall 203 (Classroom)

TOPIC
Design Thinking and Innovation Management

Today we'll focus on Apple, looking at how their products and services are created and developed through the lens of
design and its management, from ideation to manufacturing. Having explored other companies in this module--IDEO,
BMW, and B&O, you can look at Apple in light of how they do this.

Rajesh Bilimoria, a VP/partner at Design Continuum (DC) and HBS MBA, will join the class and speak about design
innovation at the end of the discussion. DC is a top notch design and innovation consulting firm in greater Boston (their
work is very similar to IDEO).

MATERIALS
Innovation at Apple

Meet Rajesh Bilimoria

ASSIGNMENT
1. Is there an "approach" to innovation at Apple? If there is, how would you characterize it? Can it be imitated? Does
doing so need [a] "Jobs"?

2. How would you compete against Apple? Be specific. Is this a difficult proposition?

3. How, if at all, will Job's recent medical leave affect Apple and its products?

End of Design Thinking: Why Innovation Matters

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

Sources of Innovation: Where Products and Services Come From

8:30AM Mon, Feb 8, Hawes Hall 203 (Classroom)

TOPIC
New Paradigms: Customers As Innovators

Today we will discuss and think about entirely new models of designing product development processes. The internet
(and other technologies) allows established firms to experiment with such new models -- as long as they understand the
consequences for their business models.

Bush Boake Allen, a flavor and fragrance firm, is considering strategic options that would integrate customers into its
flavor development process via a new internet-based design platform. As this approach could result in dramatic
changes to the firm's business model and relationship with customers worldwide, Julian Boyden, President, CEO and
Chairman, faces serious opposition from senior managers.

MATERIALS
Bush Boake Allen

Customers as Innovators: A New Way to Create Value

ASSIGNMENT
Questions:

1. Please characterize BBA's traditional flavor development process? Draw a process flow chart. What are the roles of
R&D,marketing,manufacturing? What is the role of customers?

2. Please characterize the proposed internet-based development process (using the "Spider")? Draw a process flow
chart. How will the roles of R&D, marketing,manufacturing and customers change? How would it affect BBA's business
model?

3. As CEO Julian Boyden, which strategy would you endorse: (1) keep the Spider technology in-house; or (2) give only
large customers access to the new technology; or (3) make the internet-based technology available to any flavor
customer from anywhere in the world. With your recommendation, please be prepared to discuss the impact on BBA's
business model.

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Tue, Feb 9, Hawes Hall 203 (Classroom)

TOPIC
Integrating Customers into Development Processes/Lead User Research

The case describes the 3M Medical-Surgical Markets Divisions experience in escaping the cycle of incrementalism in its
innovation process with the aid of a new process called Lead User research. Initially perceived as a new methodology
for understanding future customer and market needs, a team from the Division applies Lead User research to the field
of surgical infection control and discovers not only new product concepts but also a promising new business strategy.

Professor Eric von Hippel, the world's leading scholar on innovation sources, will visit our class from MIT and speak
about state-of-the-art research about changes in innovation patterns.

MATERIALS
Innovation at 3M

Creating Breakthroughs at 3M

The Rise of User-Innovators: How Producers Must Adapt

Professor von Hippel's Presentation Today

ASSIGNMENT
Questions:

1. How has 3Ms innovation process evolved since the company was founded? Why, if at all, does 3M, known as a
"hothouse" of innovation, need to regain its historic closeness to the customer?

2. How does the Lead User research process differ from and complement other traditional market research methods?

3. Has the Medical-Surgical team applied the Lead User research process successfully? Why or why not?

4. What should the Medical-Surgical Lead User team recommend to Dunlop: the three new product concepts or a new
business strategy? What are the risks to the new Lead User process at 3M? What are the risks to the Medical-Surgical
business unit?

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Wed, Feb 10, Hawes Hall 203 (Classroom)

TOPIC
Management and Diffusion of Breakthrough Innovations

Today's case is about the Mahindra & Mahindra Group and its approach to innovation. The Group is among the top
industrial houses in India and its managing director Anand Mahindra has put innovation at the core of its growth
strategy. The Farm Equipment Sector, one of the Group's largest and most successful sectors, is developing a
revolutionary tractor outside its conventional development process with the help of a "Maverick" innovator. Not
surprisingly, the project encounters numerous obstacles and setbacks.

MATERIALS
Innovation at Mahindra & Mahindra (A)

Innovation at Mahindra & Mahindra (B)

Innovation at Mahindra & Mahindra (C)

Finding a Higher Gear

Mahindra Case Summary

ASSIGNMENT
Questions:

1. Why has M&M developed the MNPD process? What problems were they trying to solve? What potential problems
does the new process create?

2. Davasia decided early on to develop the Sactor concept outside the organization. Why? Do you support his decision?

3. Review the Sactor project. How important was Nayak to the project?

4. Should M&M continue the Sactor project? If yes, how should it be managed? If no, how do you communicate the
decision to M&M?

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Tue, Feb 16, Hawes Hall 203 (Classroom)

TOPIC
Innovation and Magic: Master Class with Jason Randal

We are expecting Jason Randal, one of the world's leading close up magicians, to be in class. Jason will share with us
his deep insights on how to innovate in a very competitive field. You should also be prepared to be surprised. For about
80 minutes, Jason will suspend the laws of physics. Enjoy!

MATERIALS
Jason's website
You can also check out Jason on YouTube.

THE REAL WORKModern magic and the meaning of life.by Adam Gopnik

Jason Randall "Fish" Case

ASSIGNMENT
The Real Work depicts Magic as far more than "tricks," no matter how awe-inspiring what magicians do appears to
those witnessing them. Magic, rather, is revealed to be a long-standing profession that demands effort, skill, and
dedication from those hoping to succeed, and comprises a range of "techniques" as well as impassioned debate about
how these are best to be deployed. Practitioners speak deeply about their craft and its evolution.

Thinking about the article and answering the following questions will help orient you to Tuesday's class.

1. Are there rules to (doing) Magic? If so, what are these?

2. Where do innovations in Magic come from?

3. How does one learn (to do) Magic? How does one improve one's skill? What is the role of testing?

4. Compare how magicians in this article discuss their work with how designers in previous cases/situations describe
theirs. What similarities do you find? What differences? How do you account for these comparatives?

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Wed, Feb 17, Hawes Hall 203 (Classroom)

TOPIC
Open Innovation and Problem-Solving Workshop

In the first year TOM RC class we covered the InnoCentive business model and how firms used them to solve tough
scientific challenges. Today's session will be an interactive workshop with Dr. Gabriel Eichler from InnoCentive's
Science Operations. Dr. Eichler works with clients to help them design problems that are going to be put on the
InnoCentive website.
In this workshop Dr. Eichler will lead an interactive session on the principles of problem design and how innovation
challenges can be constructed so that diverse solvers from around the world can submit solutions.
In the session we will focus on a specific NASA problem - the provision of medical care during extended Moon and
Mars missions - and use that as the basis for a concrete discussion about problem design.

MATERIALS
InnoCentive.com

General human health issues for Moon and Mars missions: Results from the HUMEX study

Gabriel Eichler's "Opening Innovation" Presentation

ASSIGNMENT
1) Read the case to get an overview of the InnoCentive business model and how they work with client firms.
2) Read the article on human health issues for Moon and Mars missions and develop an understanding about the
challenges of medical care in deep space.

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Mon, Mar 1, Hawes Hall 203 (Classroom)

TOPIC
The Globalization of Innovation

Note: Case was distributed to student mailboxes

Many firms today try to leverage global R&D networks to be more effective. Integral to their success is a clear strategy
that defines roles and responsibilities of different development sites. Today, we will examine global product
development at the Information and Communications Networks (ICN) division of the German electrical engineering
giant Siemens AG. Central to the case is the tension between control and independence, particularly when managing
across cultures and capabilities.

MATERIALS
Siemens AG: Global Development Strategy (A)

Siemens AG: Global Development Strategy (B)

How GE Is Disrupting Itself

ASSIGNMENT
Preparation questions:

1. How would you characterize Siemens' global development structure? Why does it have regional development centers
(RDCs) around the world? What is the advantage? What are the challenges?

2. What are the differences between RDC's in India, Germany and the U.S.? How were these issues managed?

3. What has gone wrong with ADMOSS and NetManager projects? Please consider the Bangalore and Munich
perspectives.

4. Decison point: how should senior management respond to the NetManager project crisis?

a) Let Bangalore solve it.


b) Move all decision-making to Europe.
c) Move entire project to Europe.

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Tue, Mar 2, Hawes Hall 203 (Classroom)

TOPIC
No Class Today -- Work on Your Projects

End of Sources of Innovation: Where Products and Services Come From

Business Innovation: New Models for Growth

8:30AM Wed, Mar 3, Hawes Hall 203 (Classroom)

TOPIC
Managing Innovation: Tools and Concepts

This "classic" case describes the principles, processes, and structures Medtronic used to dramatically improve its
product development performance. The case discussion will give us an opportunity to explore in-depth the elements of
a comprehensive strategy for improving innovation. It covers important and fundamental management concepts that
some of the best organizations are implementing and using today.

In other words, the case could be a "roadmap" for addressing common innovation challenges that you may face - as a
manager, consultant or entrepreneur.

MATERIALS
We've Got Rhythm! Medtronic Corp.'s Cardiac Pacemaker Business

Medtronic Summary Lecture

ASSIGNMENT
1.Review the history of Medtronics competitive situation. Why did Medtronic lose market share in the early 1970s and
1980s?
2.Which of the improvements in Medtronics new product development process strike you as having been crucial to
turning the company around?
3.What do the concepts of product line architecture and train schedule mean in the pacemaker business? How has
application of these concepts benefited Medtronic? What elements of Medtronics approach could be applied in a
different business setting?
4.Evaluate the nature of senior management involvement in Medtronics implementation of its product development
system. Which elements of the system requires the most senior management attention?

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Mon, Mar 8, Hawes Hall 203 (Classroom)

TOPIC
System Alignment in Innovation

Today we will focus on the Mumbai-based Dabbawala organization, which achieves very high service performance (6
Sigma equivalent or better). The case explores all aspects of their operating system and the challenges that the
Dabbawala organization faces in a rapidly changing environment. An outside consultant proposes the introduction of
new technologies and management systems, while the leading logistics companies (e.g., FedEx) come to Mumbai to
learn about the Dabbawala system.

MATERIALS
The Dabbawala System: Ontime Delivery, Every Time

ASSIGNMENT
1. Why do companies like Fedex visit the Dabbawalas? What do they expect to learn?

2. How would you characterize the "DNA" of the Dabbawala system (process, management, organization, culture)?
How does it deal with variation? Compare it to other systems that you have experienced or studied?

3. Tripathi, the consultant, proposes innovations to the Dabbawala system. How should Medge respond?
a. Stop Tripathi.
b. Focus on incremental innovations only (please list examples)
c. Change to web-based customer model.

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Tue, Mar 9, Hawes Hall 203 (Classroom)

TOPIC
Topic: Growing a platform for external innovation

TopCoder is an external innovation platform that uses crowdsourcing to create complex software solutions for its
clients. The case examines the logic of TopCoders business model and the challenges of running a two-sided platform
for innovation that relies on the firm managing both project demand and programmer supply. A central concern in the
case is the ability of the platform to scale by a factor of 10 in revenues.

Jack Hughes, TopCoder's Founder and CEO, and Ira Heffan, Chief Legal Counsel, will join us as guests.

MATERIALS
TopCoder: Developing Software through Crowdsourcing

ASSIGNMENT
1. If you were a senior manager at TopCoder, what are the main capabilities you would need to develop to succeed at
running the firm? Are these capabilities similar or unique from managing a more traditional firm?

2. As a client of TopCoder what would your main areas of concern be with this type of outsourcing? Has TopCoder
done enough to overcome them?

3. What are the barriers to entry in this type of a business?

4. The CEO believes that project demand will automatically create programmer supply. What are the reasons for
doubting this core assumption of the business model? What are the reasons for agreeing with him?

5. What changes are required in the firm to allow TopCoders to achieve 10X current revenues?

8:30AM Mon, Mar 22, Hawes Hall 203 (Classroom)

TOPIC

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Tue, Mar 23, Hawes Hall 203 (Classroom)

TOPIC
Bringing Experimentation to Service Innovation

The case describes how Bank of America is creating a system for product and service innovation in its retail banking
business. Emphasis is placed on the role of experimentation in some two-dozen real-life laboratories which serve as
fully operating banking branches and as sites for testing new ideas and concepts. As senior management is applying
the discipline of formal R&D to its services, it faces serious questions around its experimentation strategy, incentive
systems, and the management of development risk.

MATERIALS
Bank of America

ASSIGNMENT
Questions:

1. How would you characterize Bank of America's new system for new developing services? Focus on its process,
organization, management, and culture.

2. Compare Bank of America's approach to traditional product development systems. What are the differences?
What are the similarities? Is (financial) service innovation inherently more difficult than product innovation?

3. What are the roles of experimentation, iteration and prototyping? How can companies maximize their learning
from success and failure?

4. Decision point: Should Butler and Brady accept ten additional bank branches into its experimentation portfolio?
Why or why not? Please be prepared to discuss your specific plans on how they should respond to senior
management's offer.

8:30AM Wed, Mar 24, Hawes Hall 203 (Classroom)

TOPIC
Business Model R&D and Change

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COURSE PLATFORM HARVARD | BUSINESS | SCHOOL
Syllabus for Managing Innovation

8:30AM Mon, Mar 29, Hawes Hall 203 (Classroom)

TOPIC
Business Innovation in Large Organizations

In September 2003, Jeff Immelt challenged the business leaders at GE to come up with "Imagination Breakthroughs,"
innovative new projects that would serve as the centerpiece of GE's organic growth initiative. The case follows the
company as these changes are driven through the business units, focusing on GE Transportation as it launches a
series of groundbreaking, green products--from the Evolution Locomotive to the Hybrid Locomotive. The growth
process transforms the culture within GE Transportation, leading to a redefinition of the marketing role, the
implementation of a "growth leader" profile and new decision-making processes to encourage innovation and risk.

MATERIALS
GE Imagination Breakthroughs

ASSIGNMENT
Questions:

1.Why did Jeff Immelt start the Imagination Breakthrough (IB) initiative? What business problem is he trying to solve? Is
it working?
2.Why is business innovation so difficult? What are the organizational obstacles that get in the way of innovation? Can
the IB initiative overcome these obstacles?
3.What should be the Transportations business position on the Hybrid locomotive? Should they proceed, place it on
hold, or drop it as an IB?

8:30AM Tue, Mar 30, Hawes Hall 203 (Classroom)

TOPIC
Last Class: Review and Projects

8:30AM Tue, Apr 27, Hawes Hall 203 (Classroom)

TOPIC

March 04, 2010 Copyright 2010 President and Fellows of Harvard College Page 15 of 15