ORGANIZING INNOVATION

Ian Paul McCarthy, Henry William Chesbrough

Obiettivi formativi

The aim of this course is to provide students with a combination of theoretical and applied knowledge on organizing innovation. The course focuses on both the challenges and opportunities firms face when organizing for innovation and engaging in the creation and commercialization of new products, services, and processes. The course also examines the challenge to building and maintaining an innovative organization, the role of creativity and prototyping, and how individuals can successfully innovate in organizations. Students also learn about recent insights on design thinking, and user driven or open innovation. It combines traditional lectures with case studies, in-class exercises, and group work. It is designed to be combined with the course “Management of Innovation”.

Prerequisiti

None

Risultati di apprendimento attesi

The key learning objectives are: • master different theoretical frameworks to think about how to organize innovation • gain knowledge how to translate theoretical frameworks into practical application • understanding the role of creativity in new product and new service development • learn about the tools to organize innovation in different settings • identifying core problems that may impede innovative performance • knowing how to manage groups that are innovating and how to develop and use firm’s capabilities to exploit innovative activities

Contenuti Del Corso

• New product development • Creativity and innovation • Design thinking and prototyping • User driven innovation • Open innovation • Organizing innovation processes • Marketing innovation

Testi Di Riferimento

This course has three types of reading: 1. The course text book: Strategic Management of Technological Innovation (6th edition) by Melissa Schilling. New York: McGraw-Hill Publishers. This book provides a comprehensive reference source for the language, theories, concepts and tools we will work through. 2. Cases: We will use these to understand how different aspects of technology management apply to different business situations. 3. Papers: These are intended to promote thinking about insights on theories, tools and issues not covered by the course text and cases. It is important that you carefully work through all the readings prescribed for each class. Doing so will help you to (i) make valuable contributions during class, (ii) participate in course exercises, and (iii) complete assignments and exams effectively.

Metodologie Didattiche

The course involves a significant amount of class discussion and group exercise activities where you will examine how the theory, methods and tools presented combine and relate to practice and problems in organizations. To participate in these discussions and learning activities, you have to attend the course sessions You will also carry out a number of learning exercises and simulations to experience some of the key decision making central to technology management. There will be group presentations, where groups of students will give a 15-minute presentation on the topic for that week.

Modalità di verifica dell'apprendimento

For attending students, assessment is as follows: • Individual Participation (40% or max 12 points) – see below for more information. • Group Presentation (40% or max 12 points) - see below for more information. • Exam (30% or max 9 points) – see below for more information. INDIVIDUAL PARTICIPATION Your participation grade is based on your attendance, preparation, and engagement toward the learning in this course. You are expected to attend all scheduled classes. The criteria used to assess participation are: • Preparedness and attitude (max 4 points) – Are you prepared for class and able to fully express foundational knowledge? Do your contributions use appropriate technology management language and concepts as introduced by the readings? Are you a good listener? Are you positive and cooperative? • Engagement (max 8 points) - Are your contributions insightful and do they enhance learning? Do you effectively identify and summarize key learning points? Do your contributions relate to, connect and apply appropriate theory, methods and examples within the course and between courses? GROUP PRESENTATION Each group is required to make a 15-minute presentation on the innovation topic assigned for that week. We will form groups in week 1, and number the groups, and then draw the order of sequence for the presentations randomly. The objective of these presentations is to give us all a good overview of what a general manager, not an innovation specialist, should know about the topic for the day. EVERY group member is expected to contribute to development and delivery of the presentation. Please submit the slides used in the presentation to me just before the presentation. Please list the names of all group members on the Title slide. The criteria for this presentation are as follows: • Does the presentation inform a general manager about the topic, in an interesting and compelling way, using illustrative examples. Would a general managers say, after watching the presentation: “I think I know the most important and fundamental things there are to know about (insert topic here)? (max 8 points). • Is the topic well presented by the group? Does it flow well, and is the audience engaged by it? (max 4 points). EXAM Duration: 60 minutes Instructions for the written exam: • Multiple choice questions have only one correct answer. • The points for each question are explicitly reported. • Nobody, including the instructor, can respond to any question during the exam session. Exam structure: • Four open discussion questions (4 points per question; 16 points max) • Four multiple-choice questions (0.5 points per question; 2 points max) FOR NON-ATTENDING STUDENTS Students who are not able to attend sessions for university-approved reasons, must advise the professor of this before the start of the second week of the semester that the course is delivered in. For non-attending students, the assessment is as follows: • Individual Assignment for non-attending students (70% or max 21 points) – see below • Exam (30% or max 9 points) – see the information above for attending students. INDIVIDUAL ASSIGNMENT (NON-ATTENDING STUDENTS ONLY) Based on the materials presented in the course, you will produce a comprehensive enquiry-based innovation audit that draws upon all of the course materials. You should contact the professor for details. The assignment should be between 2,500 and 3,500 words. It is to be submitted to the learning management system by 23.59 CEST on the day of the final session when the course is delivered. The grading criteria are as follows: Quality of the writing, structure and style (20% or 3 points) Credibility of the audit framework, its steps and logic (40% or 9 points) Credibility of the illustrative examples presented (40% or 9 points

Criteri per l’assegnazione dell’elaborato finale

None

Settimana 1

THE IMPORTANCE OF TECHNOLOGICAL INNOVATION We will review the course and examine what innovation management is, focusing on the process of innovation and how it shapes and defines industries, markets and society. READINGS Chapter 1 of course text Paper: Hargadon, A. and Sutton, R.I., 2000. Building an innovation factory. Harvard Business Review, 78(3), pp.157-157. Paper: Ahlstrom, D., 2010. Innovation and growth: How business contributes to society. Academy of management perspectives, 24(3), pp.11-24. QUESTIONS What is innovation? Why is innovation so important to firm success? How does innovation affect society, both positively and negatively?

Settimana 2

CREATIVITY AND INNOVATION We will examine how creativity underlies innovation, and the different entities involved (individuals, teams, organizations, governments and networks). READINGS Chapter 2 of course text Paper: Amabile, T.M., 1997. Motivating creativity in organizations: On doing what you love and loving what you do. California management review, 40(1), pp.39-58. Paper: Catmull, E. 2008. How Pixar fosters collective creativity. Harvard Business Review, 86(9): 65–72 QUESTIONS What is the relationship between creativity, invention and innovation? How are ideas generated? What makes an individual or organization creative?

Settimana 3

TYPES OF INNOVATION We will learn about how innovations can vary in terms of what they are and their impact, as well understanding the life-cycle of an innovation. COMPULSORY READINGS Chapter 3 of course text Paper: Bower, J., Christensen, C., 1995. Disruptive technologies: catching the wave. Harvard Business Review, (Jan-Feb), 43}53. Paper: Anderson, P. and Tushman, M.L., 1990. Technological discontinuities and dominant designs: A cyclical model of technological change. Administrative science quarterly, pp.604-633. QUESTIONS Think of examples of competence enhancing innovation versus competence destroying innovation, and architectural innovation versus component innovation. How do you recognize a disruptive innovation? What are some of the reasons that both technology improvement and technology diffusion exhibit s-shaped curves?

Settimana 4

STANDARDS, MODULARITY AND PLATFORMS We examine how innovation standards, modularity and platform can provide dimensions of value that shape which technology rises to the position of the dominant design. COMPULSORY READINGS Chapter 4 of course text Paper: Jacobides, M.G., Cennamo, C. and Gawer, A., 2018. Towards a theory of ecosystems. Strategic Management Journal, 39(8), pp.2255-2276. Paper: Shapiro, C. and Varian, H.R., 1999. The art of standards wars. California management review, 41(2), pp.8-32. QUESTIONS Why does a dominant design emerge, and why it is not always the most technological superior design that becomes dominant? Are dominant designs good for consumers? Competitors? Complementors? Suppliers?

Settimana 5

SPEED AND TIMING We will explore how being a fast first mover, an early follower or a laggard can impact innovation success and other effects of innovation speed and timing. COMPULSORY READINGS Chapter 5 of course text Paper: Katila, R. and Chen, E.L., 2008. Effects of search timing on innovation: The value of not being in sync with rivals. Administrative Science Quarterly, 53(4), pp.593-625. Paper: McCarthy, I.P., Lawrence, T.B., Wixted, B. and Gordon, B.R., 2010. A multidimensional conceptualization of environmental velocity. Academy of Management Review, 35(4), pp.604-626. QUESTIONS What are the trade-offs between early and late entry into an industry? Identify successful and unsuccessful examples of a first mover, an early follower and a laggard.

Settimana 6

CHOOSING INNOVATION PROJECTS We will learn about some of the tools and guidelines used to evaluate and choose innovation projects. COMPULSORY READINGS Chapter 7 of course text Paper: Nagji, B. & Tuff, G. 2012. Managing your innovation portfolio. Harvard Business Review, May: 67-74 Paper: Schilling, M., 2017. What's Your Best Innovation Bet? Harvard Business Review, 95(4), pp.86-93. QUESTIONS What are the advantages and disadvantages of discounted cash flow methods such as NPV and IRR? For what kind of development projects might a real options approach be appropriate? For what kind of projects would it be inappropriate?

Settimana 7

THE INNOVATION PROCESS PART I Focusing on new product development will examine how managers design organizational processes and contexts to innovate. COMPULSORY READINGS Chapters 10 and 11 of course text. Paper: Bonabeau, E., Bodick, N. and Armstrong, R.W., 2008. A more rational approach to new-product development. Harvard business review, 86(3), p.96. Paper: Cooper, R.G. and Sommer, A.F., 2016. The agile–stage‐gate hybrid model: a promising new approach and a new research opportunity. Journal of Product Innovation Management, 33(5), pp.513-526. QUESTIONS How does the design of the innovation process relate to type of innovation produced?

Settimana 8

THE INNOVATION PROCESS PART II Focusing on design thinking and the concept of ambidexterity we examine how managers design organizational processes and contexts to innovate. COMPULSORY READINGS Paper: Brown, T., 2008. Design thinking. Harvard business review, 86(6), p.84. Paper: Chen, Y., 2017. Dynamic ambidexterity: How innovators manage exploration and exploitation. Business Horizons, 60(3), pp.385-394. Paper: Birkinshaw, J. and Gibson, C.B., 2004. Building an ambidextrous organisation. Advanced Institute of Management Research Paper, (003). QUESTIONS How do individuals, teams and companies manage exploration and exploitation?

Settimana 9

INNOVATION AND TEAMS OVERVIEW As teams and team work are central to innovation we examine how the size and make up of teams impacts innovation. COMPULSORY READINGS Chapter of 12 of text. Paper: Sethi, R., Smith, D.C. and Park, C.W., 2002. How to kill a team’s creativity. Harvard business review, 80(8), pp.16-17. Paper: Segars, A.H., 2019. Creating a tribal approach for innovation in organizations. Business Horizons. Volume 62, Issue 3, May–June 2019, Pages 409-418 QUESTIONS Why are the trade-offs in choosing a team's size and level of diversity? What are some of the advantages and disadvantages of co-location? Are there some types of projects for which “virtual teams” are inappropriate?

Settimana 10

OPEN INNOVATION We will learn why and how companies share and intake knowledge from external parties to innovate. COMPULSORY READINGS Paper: HW Chesbrough, “The Era of Open Innovation,” MIT Sloan Management Review 44, no. 3 (spring 2003):35-41 Paper: Prpić, J., Shukla, P.P., Kietzmann, J.H. and McCarthy, I.P., 2015. How to work a crowd: Developing crowd capital through crowdsourcing. Business Horizons, 58(1), pp.77-85. Paper: de Beer, J., McCarthy, I.P., Soliman, A. and Treen, E., 2017. Click here to agree: Managing intellectual property when crowdsourcing solutions. Business Horizons, 60(2), pp.207-217. QUESTIONS What is difference between closed and open innovation? What are the risks of open innovation?

Settimana 11

USER INNOVATION We will learn about the rise of creative consumers, and how and why these individuals and groups of individuals adapt and modify propriety products and services. COMPULSORY READINGS Paper: Berthon, P.R., Pitt, L.F., McCarthy, I. and Kates, S.M., 2007. When customers get clever: Managerial approaches to dealing with creative consumers. Business Horizons, 50(1), pp.39-47. Paper: Thomke, S. and Von Hippel, E., 2002. Customers as innovators: a new way to create value. Harvard business review, 80(4), pp.74-85. Paper: Berthon, P., Pitt, L., Kietzmann, J. and McCarthy, I.P., 2015. CGIP: managing consumer-generated intellectual property. California Management Review, 57(4), pp.43-62. QUESTIONS Why do users innovate? How should companies react to user innovators?

Settimana 12

INNOVATION SIMULATION AND COURSE SUMMARY We will play a simulation where you are a business unit manager at a battery company. You have to manage R&D investment tradeoffs between the unit's existing battery technology versus investing in a new, potentially disruptive battery technology. We will also review the learning covered in the course. COMPULSORY READINGS Paper: Kanter, R.M., 2006. Innovation: the classic traps. Harvard business review, 84(11), pp.72-83. Case: Back Bay Battery V2 (2012) HBS Simulation Case Study Pre-reading. QUESTIONS None