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 » MIT OpenCourseWare » Sloan School of Management » Technology Strategy, Spring 2003

Assignments

Introduction

LEC # TOPICS READINGS ASSIGNMENT/READING QUESTIONS
1 Case: Corning Inc: Technology Strategy in 2002 Corning Inc: Technology Strategy in 2002

How would you characterize Corning's technology strategy to date? Has it been successful?

What should Corning's technology strategy be going forward? How much should the firm invest in R&D over the next five years? In which areas?

What additional information does Joe Miller need in order to make a decision?

Creating Value: Patterns of Change in Technologies and Markets

LEC # TOPICS READINGS ASSIGNMENT/READING QUESTIONS
2 S curves and Technological Trajectories Foster, R. "The S-curve: A New Forecasting Tool." Chap. 4 in Innovation, The Attacker's Advantage. New York (NY): Summit Books, Simon and Schuster, 1986, pp. 88-111.

What determines the limits of an S curve? Can such limits be determined ex post? How would one determine what to map on the vertical axis of an S curve?

On the course web site you will find an excel program that contains performance specifications for nearly every PDA ever introduced. Draw one or more S curves for the industry. Speculate about the industry's future evolution.

2 pager #1 due
3 The evolution of markets

Moore, G. "High-Tech Marketing Illusion." Chap. 1 in Crossing the Chasm. Rev. Ed. NY: Harper Collins, 1999, pp. 9-62.

Moore, G. "High-Tech Marketing Enlightenment." Chap. 2 in Crossing the Chasm. Rev. Ed. NY: Harper Collins, 1999, pp. 9-62.

Christensen, Clayton. "How can great firms fail? Insights from the hard disk industry." Chap. 1 in The Innovator's Dilemma. Harvard Business School Press, 1997, pp. 3-28.

How is the phenomenon outlined by Christensen related to Foster's S curve?

Go back to the PDA data: Has the industry seen disruptive innovations in the sense defined by Christensen? Is it likely to?
4 Case: EMI and the CT Scanner (A) EMI & the CT Scanner Case (HBS # 9-383-194)

Where is the technology headed, and why? 

Forecast the future demand for the CT scanner 

Why was the scanner initially so profitable? 

Is this likely to continue?

What strategy would you recommend EMI pursue, and why?
5 Case: Innovation at 3M Corporation Innovation at 3M Corporation (A) (HBS # 9-699-012) 2 pager #2 due

Capturing Value: Understanding Competition

LEC # TOPICS READINGS ASSIGNMENT/READING QUESTIONS
6 Appropriability: profiting from innovation & the market for ideas Teece, D.J. "Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy." Research Policy 15, no. 6 (December 1986): pp. 185-219.

What is the difference between the market for ideas and the product market? When does it make sense for a team of entrepreneurs to 1) Enter the market directly? 2) Attempt to sell their ideas? 

How does the relative importance of appropriability and complementary assets change over the life cycle of an industry?
7 Case: Surface Logix Surface Logix (HBS # N9-802-050)

What would you recommend that Carmichael Roberts do next?  

What should be Surface Logix's business model in the long term?
8 The Evolution of Value Chains Clockspeed chapter
9 Case: Abgenix and the Xeno Mouse Abgenix and the Xeno Mouse. (HBS # 9-501-061)

How do you think Abgenix can best exploit the Xeno Mouse?

2 pager #3 due
10 The Dynamics of Standard Driven Markets

Teaching Note: The Dynamics of Standard Driven Markets

Cusumano, Michael A., Y. Mylonadis, and R. Rosenbloom. "Strategic Maneuvering and Mass-Market Dynamics: The Triumph of VHS over Beta." The Business History Review (Spring 1992).

Why do some markets "tip" to a single standard?

Can you list the sources of the externalities that led to tipping in the case of VHS vs. Beta?

Do you think that the handheld market will "tip" to Windows CE or to Palm? Why or why not?
11 Case: Nintendo in 8 bit video games Power Play (A): Nintendo in 8 bit video games (HBS # 9-795-102)

What steps did Nintendo take to establish its standard as the standard in video games? 

How much money is Nintendo making? How much money are other players in the value chain making? 

If you were attempting to displace Nintendo, what would you do? Why?

2 pager #4 due
12 Case: Sun Microsystems, Inc: Strategy for Solaris

Sun Microsystems, Inc: Solaris Strategy (HBS # 9-701-058).

And if you are not familiar with Linux: 

"The Cathedral and the Bazaar" Raymond, Eric. At

http://www.tuxedo.org/~esr/writings/cathedral-paper-1.html 

"Choice, Linux and the Solaris Operating Environment"

At http://java.sun.com/features/2001/08/worldinno.html

Linux home page: www.linux.com 

IBM home page: www.ibm.com/us/

What are the costs and benefits of making Solaris "open source"? 

What should Sun do with respect to Linux? 

What should Sun's long term strategy be?
13 Case: Ember Inc Ember Inc.

 

Delivering Value: Organizational Competence

LEC # TOPICS READINGS ASSIGNMENT/READING QUESTIONS
14 Organizing for Innovation: Motivating and Integrating R&D

Teaching Note: Managing Innovation

Teaching Note: Incentives in research and development

 2 pager #5 due
15 Case: Siemens AG: Global Development Strategy (A) Case: Siemens AG: Global Development Strategy (A) (HBS # 9-602-061)

What should Siemens do with respect to NetManager?

More broadly, what longer term recommendations would you make to Siemens as to how they should organizatize their development activities?
16 Dealing with Discontinuities

Henderson, R.M., and K. Clark. "Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms." Administrative Science Quarterly 35 (1990): pp. 9-30.

"Managing Innovation in the Information Age." Harvard Business Review (January-February 1994): pp. 100-106.

How does Henderson and Clarks' explanation for the failure of established firms differ from Christiansen's?

Might there be other reasons that established companies have trouble negotiating discontinuities? List at least three.

What are the pros and cons of the various organizational mechanisms available to "deal with discontinuities"?
17 Case: Synthes Synthes (HBS # 9-502-008) Should Synthes develop "bioresorbable internal fixation devices"? If so, why and how? If not, why not?
18 Case: R.R. Donnelley and Sons: The Digital Division R.R. Donnelley & Sons: The Digital Division (HBS # 9-396-154)

Should Donnelley have entered the digital business in the first place? Why or why not? 

Given that they entered, was it a good idea to set up a separate division? 

What should Donnelley do now with respect to digital technology?
19 Case: Intel Capital: The Berkeley Networks Investment Intel Capital: The Berkeley Networks Investment (HBS # 9-600-069)
20 Case: Corporate New Ventures at Procter and Gamble Corporate New Ventures at Procter & Gamble (9-897-088) Compare and contrast the structure and processes that P&G has created with those created by Intel in the Intel Capital case. Do you expect P&G New Ventures to be successful? Why or why not? What recommendations would you make to Craig Wynett going forward?
21 Case: Alza/Ciba (1): Structuring a Deal? Half the study groups in the class will play the role of managers at Alza, half will play the role of Ciba.
22 Case: Alza/Ciba (2): Managing the Relationship, 1977-1979 Cases will be distributed in class 20

Technology Strategy in Practice

LEC # TOPICS READINGS ASSIGNMENT/READING QUESTIONS
23 Analytical Tools

Scharwtz, Peter. "The Smith & Hawken Story: The Process of Scenario Building." In The Art of the Long View. Doubleday, 1991, pp. 17-31

Luherman, Timothy A. "Investment Opportunities as Real Options: Getting Started on the Numbers." Harvard Business Review (1 July, 1998)

Wheelwright, S., and K. Clark. "Creating Project Plans to Focus Development." Harvard Business Review (March-April 1992): pp. 70-82.
24 Case: Medtronic We've got Rhythm! Medtronic Corporation's Cardiac Pacemaker Business (HBS # 9-698-004)

Why did things go so badly wrong at Medtronic? 

Of all the things that Medtronic did to "fix" it's process, what do you think was the most important? Why?

Wrap Up

LEC # TOPICS READINGS ASSIGNMENT/READING QUESTIONS
25 Case: Kodak (A)
26 Summary and Conclusions Final papers due!

Weekly 2 Pager Details

LEC # ASSIGNMENT DETAILS
Lecture 2 Plot and describe the relevant S curve(s) for your industry. Is the industry likely to be subject to "natural technological limits"? Why or why not? Has it experienced "disruptions"? Is it likely to do so soon?
Lecture 5 What are the most important determinants of diffusion in your industry now? Is this likely to change?
Lecture 8 How have the firms in your industry captured the value that they have created historically? Will this change in the future?
Lecture 9 Do standards create value in your industry/technology? Why or why not? Are they enough to cause "tipping"? If standards are not currently important, are they likely to become so in the future?
Lecture 11 What are the implications of network externalities for competition in your industry? Can standards be used to capture value? Can standards be easily changed?
 
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