smo 601 innovation and sustainability: the clean tech

Jennings, SMO 601 of 10 Spring Term, 2019

University of Alberta School of Business

Department of Strategic Management and Organization

SMO 601

INNOVATION AND SUSTAINABILITY:

The Clean Tech Revolution and Beyond1

Draft

Spring Semester 2019, Room: Business 1-06

May 13th-May 17th, 8:45 a.m. arrival, 9:00 a.m. start; normally, 4:30 p.m. finish.

INSTRUCTOR: Professor Dev Jennings Phone: (780) 492-3998

E-mail: [email protected] Office: 4-30A BUS

Office Hours: By appointment & with some time at the end of lunch for questions

OVERVIEW

Sustainability has become one of the predominant concerns of our time. It refers to creating an

enduring social and biophysical world, one that is vibrant and rewarding for not just the current

but for future generations. To create such a world, and retain our current level of modernity, seems

to require a holistic approach to technology, design, environmental fit, and performance; that is,

forms of clean technology – or “cleantech” for short. Innovation and Sustainability: The Cleantech

Revolution and Beyond (SMO 601) is a course that focuses on the process of creating technologies

and organizations that enhance current business and industrial operations by drawing on

sustainability principles, especially ecological ones. In SMO 601, we begin by focusing on energy

production (both non-renewables and renewables) then move on water, waste, agriculture and

green building in later sessions.

The overarching objective of SMO 601 is to augment your current knowledge about clean

technologies and renewable energies from the standpoint of organizational strategy and design.

Your org strategy knowledge will be built using a matrix structure for theory and topics addressed

in the course. Along one dimension are org strategy’s “four frames” for assessing firms: 1)

technology, 2) economic, 3) political, and 4) management. Along the second dimension of the

matrix are the standard environmental topics in clean tech, including carbon capture, utilization,

and storage (CCUS), solar and wind power, waste and water management, green building, and

electric vehicles (EVs). The cases range from AEP (coal) to Goldwind and LEED’s green building.

The specific way that we will join the four frames for green innovation strategy with different

clean tech topics is shown below in the “Week at a Glance.” From the big picture point of view,

the segments are designed to move from more analytic and quantitative segments to more

behavioral and qualitative ones, and from high tech, energy-focused segments to somewhat lower

tech, clean-up focused segments.

1 Other instructors have my permission to use this syllabus; but please acknowledge me as the source. Thanks. DJ.

mailto:[email protected]


Week at a Glance

Day 1 – Field &

Firm Level Strat

Day 2 –

Tech Frame

Day 3 -

Econ Frame

Day 4 -

Political Frame

Day 5-

Mngt. Frame

A.M. Green Innovation

and the Four

Frames- Field

Level with Coal

(AEP, etc.)

Tech with Solar at

D.Light,

BrightSource and

local AB solar

Econ with Energy

Start-Up at

StormFisher &

Clean Tech Forum

Policy with

Waste

Management at

Harvest Co. and

AB Innovates

Mgnt. with Green

Building at LEED

& Genzyme

P.M. Four Frames –

Field Level with

Caprica’s Choices

& Fracking in AB,

Tech with Wind at

Vesta & Goldwind

USA

Econ with Trade-

Offs investing at

GIM & Kholsa

Venture

Policy with

Water Negotia-

tion in Fiji vs. Fiji

case.

Integrating the

Four with EV use

at Tesla & BYD,

Wrap-Up ((Early

dismissal - 3:00ish)

* Note: all speakers and SKYPE-ed presentation are tentative, based on speaker availability.

This is a return to the one-week intensive format. A lot has to be done in the one week and not all

contingencies can be anticipated. Design flaws may become apparent as we progress through the

various segments. I thank you in advance for your understanding and your suggestions for

addressing any issues that may arise.

BACKGROUND AND MATERIALS

While there are no formal prerequisites for this course, the course is designed to work with SMO

502, “Strategy and Organization,” with SMO 659, “The Strategic Management of Technological

Innovation and Commercialization,” with SMO 638 “Corporate Sustainability”, and with the final

project courses for NREE and for TechCom. Furthermore, even though cleantech does not require

a science degree or courses in science, it is useful to have some background and/or interest in some

of the course’s science- and tech-based topics.

In the case of materials, there are some new texts on sustainability and some others on innovation,

but none that I have found that adequately covers these joint topics in a comprehensive and current

fashion. Therefore, we will have to rely on papers, cases, and other Web sources as the core

materials in the class, along with your own inputs. Most of the readings and sites will be posted

on eClass. Not all are listed in the syllabus, particularly links from The Economist or other sites.

The cases will be available in a course case pack, which is for purchase online at Harvard

Business School http://hbsp.harvard.edu/. The site for the case course pack is:

https://hbsp.harvard.edu/import/629625

We also have an addendum with two case on investing. The GIM case is part of the normal course

packet the Khosla case is now a secondary one.


http://hbsp.harvard.edu/




ASSESSMENT

The major assignments in this course are discussed below. The assignments weights are listed

beside the assignments.

Individual Class Participation 20.0%

Group Presentation of a Case 25.0%

Ind. or Small Team Final Project 55.0%

Total 100%

Individual Class Participation. Your participation in class is essential, both for your learning and

for that of your peers. Effective participation depends on quality and quantity of commentary and

on other contributions that might help the class overall. If you notice articles or videos – or if you

have some mini-presentation on a subject to offer, these too count as participation.

In order to help me evaluate your participation, I will record your contributions using a simple

scale for each segment, “0” = “no contribution; “1”= “present but minimal contribution”; “1.5”=

“a solid contribution”, and “2” = “wonderful contribution”. If you are absent, an “ab” will be

recorded. If you contact me in advance about the absence (and/or have a medical excuse), I will

not count the absence in your averaged participation score, though it does affect the sum. At the

end of the course, I will sum the total participation and generate an average segment participation

score. Your final participation mark will be a combination of these two score, relative to the class

average, plus some qualitative assessment of your contribution, as perceived by me. The class

average is normally pegged at the B+/A- line. If yours is above the average on both scores, so will

be your grade.

Group Presentation of a Case Segment. On the first day we will form anywhere from three-to

five-person groups, based on the class size. (Note that these will typically not be the same group

as that for the final project.) Each group will be given an option helping me present one of several

segments of cases that are going to be covered in the course. For instance, you may be offered the

chance to present a comprehensive overview of the wind industry, or an analysis of a water

management problem. Each group will then select one segment and present that segment during

the relevant class period.

Generally speaking, presenting the segment should take no more than fifteen minutes, with an

additional five-to-seven minutes for answering questions. Exercises within presentation are

strongly encouraged. I am likely to work with the group on the exercise, weaving in one of my

own with the group’s presentation.

More details on the presentation and on the grading template can be found in Appendix A.

Individual or Small Team Final Project. Individuals or two-to three-person teams will choose

one clean tech topic on which to work for their final project. The design of that project has some

flexibility, but is generally of two types: either a broad survey of a clean tech field, or a focused

analysis of strategic initiative (or business case) for a clean tech organization within a field. The

paper is envisioned as being 20-25 pages (double-spaced, 12 pt. font, 1’ margins) with some key


figures and tables in it, but not including more extensive references or appendices. The complete

paper, with all materials, front-to-back, should be no more than 35 pages. Thanks. The assignment

is due basically a week after the end of the course: Fri., May 24th by 4:30 p.m., thanks. Please e-

mail a Word or .pdf version of the report. A hardcopy is not necessary.

More details on this final project can be found in Appendix C.

ADDITIONAL COURSE POLICIES

Constructive vs. Disruptive Use of Technology in Class. Most of us have cell phones, laptops,

and iPads and other devices that connect us to the outside world. I ask two things of you: first,

please limit your personal and work-related communication to the outside to the breaks in class,

which occur every hour or hour and a half; second, if you are on the Web, please try to gather

information related to the topic at hand, and share that information via questions and comments

in order to enrich the session. Thanks!

Academic Integrity: The University of Alberta is committed to high standards of academic

integrity and honesty. Students are expected to be familiar with these standards regarding academic

honesty policies and uphold them. Please consult the online in the Academic Calendar and avoid

any behaviour that could potentially result in suspicions of cheating, plagiarism, misrepresentation

of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result

in suspension or expulsion from the University.

Special Needs: I would like to hear from anyone who has a disability that may require some

modification of seating, testing or other class requirements so that appropriate arrangements can

be made. Please see me before or after class.

Late Assignment Policy: Any assignment that is late will have ten percent (10%) deducted off its

percentage grade for each day that assignment is late up to a maximum of seven days. No papers

can be accepted more than seven days after the deadline. Sorry.

Grading Constraints: While there is no formal curving of grades in this class to fit a normal

distribution, the MBA and FGSR offices have requested that instructors submit grade distributions

with some spread; i.e., with means for upper level MBA classes just above the A- range and with

some grades in the B to B+ range. Higher grades and narrower distributions are reviewed by these

offices and returned for adjustment. I am bound by these university policies; my apologies in

advance.

COURSE OUTLINE

Day 1 – Overview, Cleantech and Non-Renewables (Coal and Fracking)

Readings


Winston et al. “Your Company Needs an Energy Strategy.” HBR,

https://hbr.org/2017/01/energy-strategy-for-the-c-suite

Nidumolu et al. “Why Sustainability Is Now the Key Driver of Innovation.” HBR.

Stewart Hart on sustainable value http://www.stuartlhart.com/

A.M. - Four Frames, Cleantech and Coal at AEP

a. Opening

b. Lecture and Exercises:

i. The Clean Tech Revolution and Beyond

ii. An Overview of Green Innovation Strategy and the Four Frames

c. Case

i. Energy basics, courtesy of Web resources and knowledgeable class members.

ii. Four Frames: Field Level. Vietor. 2010. AEP: Carbon Capture and Storage.

(PRIMARY CASE)

iii. Four Frames: Field Level. Schifrin & Kennedy. 2013. Natural Gas and Its Role in

the New Energy Dynamics (SECONDARY CASE)

P.M. - Cleantech and Fracking Cases as Examples, Final Projects and Presentations

a. Cleantech and Fracking

i. Final project details (see the syllabus).

ii. Four Frames: Field Level. Harris et al., 2011. Caprica Energy. Darden.

(PRIMARY CASE).

iii. Fracking background notes, courtesy of Joel Gehman. (BACKGROUND

READING)

b. Assigning Your Case Presentations - your top three choices and the assignment (see the

syllabus).

c. Potential Guest Speaker on Clean Business and Urban Planning.

Day 2 – Technology Frame, Solar and Wind

Readings

Anderson and Drejer. “Systemic innovation in a distributed network: the case of Danish wind

turbines.” SO!

Bower and Christensen. “Disruptive Technologies: Catching the Wave.” HBR.

Chesbrough and Appleyard. “Open Innovation.” CMR.

https://hbr.org/2017/01/energy-strategy-for-the-c-suite

http://www.stuartlhart.com/


Marshall and Brown. “The Strategy of Sustainability: A Systems Perspective on Environmental

Initiatives.” CMR.

A.M. Technology Principles and Solar Power

a. Review of readings and lecture.

Solar

a. Case Session

i. A Solar Success

a. Sorensen et al. 2012. dLight: Selling Solar to the Poor. (PRIMARY CASE)

ii. A Less Successful Solar Case

a. Shifrin and Kennedy. 2013. BrightSource. (SECONDARY CASE)

iii. A Potential Guest Speaker

P.M. Wind

a. Case Session

i. The Danish Miracle

a. Stenburg and Corsi. 2011. Vestas World of Wind. (PRIMARY CASE)

ii. The New Power House

a. Abrami and Koch-Weser. 2012. Goldwind. (PRIMARY CASE)

Day 3 – Economics Frame, Starting Up and Investing

Readings

Amram and Kulatilaka. “The Invisible Green Hand.” Milliken Institute.

Hargadon. “Misguided Policy? Following Venture Capital into Clean Technology.” CMR.

Hopkinson et al. “Managing a Complex, Global Circular Economy Business.” CMR.

Orsato. “Does It Pay to Be Green?” CMR.

A.M. Principles of Clean Tech Economics


Starting Up, Biogas

a. Case Session

i. Principles of start-ups

ii. Branzei et al. 2010. StormFisher (A): Power with Purpose. (PRIMARY CASE)


iii. Branzei et al. 2019. StormFisher (B)… (PLEASE READ AFTER SESSION)

P.M. The Investor, Biofuels

a. Case Session

i. Principles of Investing – Guest Speaker

ii. Bebb and Reichelstein. 2015. Sustainable Investment at Generation Investment

Management (PRIMARY CASE)

iii. Lassiter et al. 2012. Khosla Ventures: Biofuels Gain Liquidity. (SECONDARY

CASE)

Day 4 – Political Frame, Waste and Water

Readings

Esty and Charnovitz. “Green Rules to Drive Innovation.” HBR.

Haley and Schuler. “Government Policy and the Firm Strategy in the Solar Photovoltaic

Industry.” CMR.

Johnson and Suskewicz. “How to Jump Start the Clean Tech Economy.” HBR.

Markus et al. “Firms, Regulatory Uncertainty, and the Natural Environment.” CMR.

A.M. Policies, Politics and Waste


Waste Management

a. Case Session

i. Waste management principles

ii. Current Practice Background

a. Delshin et al. 2012. Harvest Organic Waste Recycling (A). (PRIMARY

CASE)

b. Anupindi and Hoffman. 2019. Dell: Upcycling Ocean Plastics through Supply

Chain Innovation. (SECONDARY CASE)

P.M. The Political Frame and Water Management

a. Case Session

i. Water management principles

ii. Cross-Border Issues


a. Gino et al. 2012. Fiji vs. FIJI. (PRIMARY CASE)

Day 5 – Management Frame, Green Building, EVs, and Integrating the Four Frames

Readings

Cohn et al. “Finding and Grooming Breakthrough Innovators.” HBR.

Lewis et al. “Paradoxical Leadership to Enable Strategic Agility.” CMR.

Lubin and Esty. “The Sustainability Imperative.” HBR.

Posner. “One CEO’s Trip from Dismissive to Convinced.” Sloan Mngt. Review.

A.M. Management and Internal Change

a. Top managers, teams, and change – see readings.

b. Implementation issues – see readings

Management and Green Building

a. Case Session

i. Toffel and Siesa. 2010. Genzyeme Center (A). (PRIMARY CASE)

ii. Larson and Meier. 2010. Rating Environmental Performance in the

Building Industry. (BACKGROUND CASE).

P.M. Management and Green Building Continued..., Course Wrap Up

a. Van den Steen. 2015. Tesla Motors. (PRIMARY CASE)

b. Gong and Zhu. 2017. BYD Electric Vehicle Road Map. (SECONDARY CASE)

c. Course Wrap-Up

d. Final Commentary - Cleantech and The Sustainability Imperative


APPENDIX A:

CASE SEGMENT PRESENTATION

On the first day we will form anywhere from three-to five-person groups, based on the class size.

Each group will be given the option helping me present one of several segments of cases that are

going to be covered in the course. For instance, you may be offered the chance to do present a

comprehensive overview of the wind industry, or an analysis of a water management problem.

Each group will then select ONE segment and present that segment during the relevant class

period.

Generally speaking, presenting the segment should take no more than fifteen minutes of material,

with an additional five to seven minutes of questions. Exercises within or as the presentation are

strongly encouraged. The team should provide a handout on the core of the presentation and also

be prepared for questions.

The grading template for the presentation is below.

Component Comments

CONTENT (45%)

Good Theoretical/

Conceptual Material for

Day’s Case & Topic

Details/Description Were

Rich and Informative

FORM (45%)

Entertaining &

Professional

Mechanics Were Good

(Timing, Structure,)

Questions (10%)

Addressed Content and

with Respectful Tone

APPENDIX B: THE FINAL PROJECT

Individuals or, alternatively, two-to three-person teams will choose one clean tech topic on which

to work for their final project. The design of that project has some flexibility, but is generally of

two types: 1) a broad survey of a clean tech field using the Four Frames, or 2) a focused analysis

of clean tech strategic initiative (or business case) using the green strategic analysis framework,


supplemented by the Four Frames. The paper is envisioned as being 20-25 pages (1” margins, 1.5

spacing, 12 pt. font), not including references or appendices. Please try to keep the total project,

all-in, under 35 pages. Thanks.

PROJECT TYPE ONE:

BROAD SURVEY OF A CLEAN TECH FIELD

Your task is to conduct an assessment of a renewables or clean tech field or industry using the

“Green Innovation Strategy and Four Frames Approach” discussed in this course. The field can be

one of your choosing, but should be discussed with the instructor.

The typical field report will follow the following outline and address the sets of questions below.

Also, be sure to consult your notes and slides from the classes to fill out more details on the Four

Frames.

A. Overview

1) Field Definition

accepted vs. common definitions

2) Field History

key points of field’s evolution

3) Field Structure

number of large/small firms, overall size, etc.

B. The Four Frames and How They Evolve Together

1) Technology, learning, and innovation

What are the variations (e.g., clusters) among the technology(ies), products, services in the

field, particularly around critical values?

What is the nature of the innovation and R&D process in the field?

How can you characterize the overall technical system of this field?

How does leaning occur in this system? And disruption?

Which technologies, firms and clusters, are truly exemplary of clean tech?

2) Economics, competition, and sustainability

How competitive is the overall environment?

What some of the key business models that have made (or seem likely to make) returns?

What is the structure of the industry (concentration, core/periphery, etc.)?

What do the consumer/client segments look like? Can you create a PCM?

What have the historical market trends and yields been – what about current ones?

What are some of the evident green positions in the field?

3) Policy and politics

What is the governance structure like in the field?

What are main policies and regulations in the field?


Who are the most powerful actors in the field? What about by region - n NORAM? the

EU? Asia?

How can a firm (or individual) engage with these actors (including avoid them)?

What are some of the key political trends – e.g. levels of green support?

4) Management, culture and org. change….

Who are notable leaders in this field? What are their visions/objectives?

What do the social networks and management/board ties look like?

What are the styles of management can be found or are favored in this field?

What is the underlying industry or regional culture like in the field?

Is there a lot of variation in corporate cultures?

How dependent is green innovation and execution on this culture?

Is changing the field or org. culture particularly difficult?

C. Integrating the Four Frames and Implications for Firms in a Fields

1. How well do the four frames fit together and reinforce each other?

Is there one frame that is stronger than the others; one that is at odds?

2. In light of the above materials, what are some main opportunities in this field and what

recommendation would you have for CT firms entering/ operating in it?

Short-long run opportunities?

By size of firm?

By country?

Capitalization requirements?

3. In light of the above materials, what are some of the main risks in the field?

Immediacy x likelihood x impact of the risk

Mitigation possibilities

4. Better and Worse Business/ Organizational Models

Noted Exemplars?

High profile Failures?

5. Standard or workable Implementation Methods

Field vs. firm vs. project level?

Structural vs. behavioural (process)?

Leader vs. multi-stakeholder driven?

D. References and Appendices

PROJECT TYPE TWO:


A FOCUSED ANALYSIS OF A STRATEGIC INITIATIVE (OR A BUSINESS CASE)2

Each person or small team should select an organization that is developing or interested in

developing a clean technology. For instance, you might examine solar roof panels as a commercial

business or the investment in a recycling technology by a large company. The organization should

be assessed using the green innovation strategy framework, supplemented by analysis using the

four frames. This method will be discussed explicitly in the course and applied to case analyses.

The typical company report will follow the following outline and address the sets of questions

below:

1) The Initiative

What is the initiative, e.g., the proposed product, technologies, services, and changes?

How “advanced” is this initiative in sustainability terms (e.g., see Nidumolu et al.)?

What are the current vision and strategy, especially as it relates to the initiative?

2) The Internal

What is the key clean technology (e.g.,, as a flow diagram and/or in systems analysis)?

How disruptive is the technology?

How do the organization’s value chain and supply chain and governance enable or impede

the initiative?

What are the organization’s key resources, capabilities, particularly relative to the

initiative?

3) External Environment

How is the organization positioning itself in the clean tech field? (e.g., in terms of Blue

Ocean strategy and disruption)

What are the laws and regulations aiding or impeding the organization’s initiatives?

What support does the initiative have among the organization’s stakeholders?

4) Current and Future Performance and Option Assessment

What is the current organizational performance using some version of a “Triple Bottom

Line” framework?

What does performance look like in terms of a green or carbon footprint?

How do NPV/BE of cap. and operating costs look vs. environmental and social license

benefits?

5) Your Final Recommendation, Defense of It, and Some Implementation Recommendations

What are you main recommendations, prioritized?

What type of risk mitigation strategies do you see as essential? What might be a positive,

neutral and negative scenario?

2 I do not envision these reports as being “live” or conducted in companies using interviews. If you do go this route,

please discuss it with me in advance and read all University of Alberta guideline regarding research ethics, which

can be found under the Research Ethics Board Web site. In future iterations of this course, I may apply for REB

permission for “live” cases; but this seems unnecessary in a one-week, intensive course.


What impact matrix can be used to summarize and choose among your options.

6) Congruent Implementation

Is this a social mobilization or a consultative/internal implementation?

How might you tailor it to be more congruent with the field and being “green”?

What might be a simple Gantt chart of the roll-out?

7) References and Appendices

What is a simple four frame analysis (just include a grid filled out)?

What are the key or additional tables and figures that support your text above?

What are the key sources (Web pages, articles, books, conversations) for your report?

TEMPLATE FOR EVALUATING THE FINAL PROJECT

The template for evaluating either form of final project is below. If you have any questions about

it and the weighting in it, please feel free to discuss it with me.

Criteria Syllabus’s Explanation Scoring Comments

Theory How well does the written material

reflect your understanding and

application of the conceptual

constructs presented in class? Are

you using terminology

appropriately?

35%

Data How well do you use info/ data to

justify your analyses, to make

appropriate inferences and to

support your arguments?

45%

Writing How effectively are you

communicating your analyses? Is

the writing clear? Are the

arguments logical? Is the data

presented clearly? Is the

communication style appropriate

for the intended audience?

10%

Creativity Is this analysis a routine or generic

application of concepts to data or

does the analysis customize

existing knowledge of strategic

management to create a unique

solution for this specific firm?

Does the analysis integrate

knowledge from a variety of

disciplines?

10%

Overall

smo 601 innovation and sustainability: the clean tech

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