1THE UNIVERSITY OF CONNECTICUTSCHOOL OF BUSINESS

MBA PROGRAM

NEW PRODUCT AND SERVICE INNOVATION MANAGEMENT (final version dated 3/27/2016; updates will be announced in class and posted on HuskyCT)

Course Number: MKTG 5230Pre-requisite: MKTG 5115 or (MKTG 5181 and MKTG 5182) Term: Spring 2016Classroom: TBA In-Class Hours: Apr 1 (5:00pm to 8:00pm), Apr 2 (9:00am to 5:00pm)

Apr 8 (5:00pm to 8:00pm), Apr 9 (9:00am to 5:00pm)Apr 22 (5:00pm to 8:00pm), Apr 23 (9:00am to 5:00pm)

Online Class Hours: April 24 through May 7 (10 hours asynchronous)Course Ends On: May 7, 2016Instructor: Dr. Girish Punj

Professor of MarketingOffice: BUSN 351 (Storrs Campus) E-mail: Girish.Punj@business.uconn.edu

CATALOG DESCRIPTION:

This course provides a framework and analytical tools for managing innovation based on best practices and research evidence. Students will learn how to enhance opportunities for innovation, how to identify ideas to pursue, how to integrate marketing and R&D in new product/service development, how to forecast sales, how to accelerate the new product process from design to commercialization, and how to make product investment decisions in both mature and emerging technologies under conditions of uncertainty. This course is directed at students preparing for positions in product management, product development and innovation, and consulting.

REQUIRED COURSE MATERIALS:

Some of the course materials listed below are available free of charge from the UConn Library database called Business Source Premier Others have to be purchased online for electronic delivery from Harvard Business School Publishing through the web links shown below. To locate the full text of an article do a search of the above mentioned database using the article title and publication name (i.e., Harvard Business Review) in the search fields.

Harvard Business Review Articles (HBR):

What is Disruptive Innovation? Collective GeniusFind Innovation Where You Least Expect It

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The Innovative Power of CriticismUsing the Crowd as an Innovation PartnerLeading Your Team into the UnknownBig-Bang DisruptionSurviving DisruptionCompeting on Customer JourneysDigital-Physical MashupsDesign Thinking Comes of Age Digital Ubiquity Transient Advantage Build an Innovation Engine in 90 Days

If you have difficulty locating the full text of any of the articles listed above please seek the assistance of a reference librarian in the UConn Library or send an e-mail to Shelley.Cudiner@uconn.edu and request her assistance.

The course materials listed below have to be purchased online for electronic delivery from Harvard Business School Publishing through the web link shown below.

Harvard Business School Case (HBS):

Uber: Changing the Way the World Moves

Register and Purchase the HBS Case at the following web link:

http://cb.hbsp.harvard.edu/cbmp/access/48731701

Please complete your purchase by April 1, 2016

Strategic Innovation Simulation: Back Bay Battery:

Register and Purchase the Simulation at the following web link:

http://cb.hbsp.harvard.edu/cbmp/access/48731806

Please complete your purchase by April 1, 2016

Readings on Current Topics:

Readings on a wide range of topics that relate to new product development that have been reported in the Wall Street Journal press will be used to supplement the above course materials. The readings cover 18 topics (see list below) and typically describe industry practices and trends relating to the management of innovation.

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What is Innovation? History of InnovationTechnological InnovationEntrepreneurs and InnovationGenerating New Product IdeasIdentifying Consumer Needs Nature of Innovation (Airplane Manufacturers) Nature of Innovation (Car Manufacturers)Defining Markets (Kellogg & General Mills) Defining Markets (Procter & Gamble) Product Concept Development Prototype Development Emerging Technologies (Virtual Reality & 3-D)Emerging Technologies (Autonomous Vehicles)Product Design & Positioning (Wrist Watches)Product Design & Positioning (Television Sets)Commercializing New Products (Pharmaceutical Industry) Commercializing New Products (Toy Industry)

The specific articles that comprise a topic (e.g., Prototype Development) have been collated together and posted on HuskyCT in a single PDF file. Thus, you will find 18 PDF files posted on HuskyCT, one corresponding to each of the 18 topics listed above. To keep up-to-date on future developments relating to innovation, I would encourage you subscribe to the Wall Street Journal. As a UConn business student you have free access to all WSJ digital products and can activate your subscription at the following web link:

http://ict.business.uconn.edu/busn-wsj/ Taken together, the course materials are intended to give you an in-depth exposure to the management of innovation and the formulation of a new product introduction strategy. Specifically, the Harvard Business Review (HBR) articles are intended to provide you with theories, concepts and best practices that relate to new product development. The Simulation and the Harvard Business School Case (HBS) are intended to provide you an opportunity to apply these theories and concepts. The Readings on Current Topics are intended to provide you exposure to current company and industry practices relating to the management of innovation.

TEXTBOOKS ON NEW PRODUCT DEVELOPMENT

Recommended: 3

Karl T. Ulrich and Steven D. Eppinger (2011)Product Design and Development (5th edition)McGraw-Hill Irwin ($180)

Others:

C. Merle Crawford and C. Anthony DiBenedetto (2014)New Products Management (11th edition)McGraw-Hill Irwin ($206)

Paul Trott (2011)Innovation Management and New Product Development (5th editionPrentice-Hall ($95) Robert G. Cooper (2011)Winning at New Products: Creating Value Through Innovation (4thedition)Basic Books ($18)

TEAM FORMATION

Some of the course assignments are team-based while the others are individual-based. For the team-based assignments you will work in two person teams. Please select your team member with great care preferably choosing a student with whom you have had a successful working relationship in other courses. It is important to finalize your team composition as soon as possible, because sign-ups for the course assignments that are team-based will be on a first-come, first served basis. You will have the widest choice of presentation topics and time-slots if you sign-up for your presentations (see details in next section) at your earliest convenience.

COURSE ASSIGNMENTS:

Current Topic Presentation (Team-based)

Each team (consisting of two students) will present a pre-assigned topic selected from Readings on Current Topics being used in the course (see list of 18 topics on pages 2-3 of the syllabus). The specific articles that comprise a topic (e.g., Prototype Development) have been collated together and posted on HuskyCT in a single PDF file. Thus, you will find 18 PDF files posted on HuskyCT, one corresponding to each of the 18 topics listed above.

The class session during which a particular Current Topic is scheduled for presentation is listed in the “Schedule of Activities” section of the course outline. Current Topics will be assigned to teams (consisting of two students) using a first-come, first-served basis.

Please sign-up for the Current Topic Presentation using the discussion board that has been set up 4

for this purpose on our HuskyCT course website at your earliest convenience and no later than 5:30pm on April 1, 2016. While signing-up for your Current Topic please make sure that it has not been already selected by another team and list the names of both team members.

[Deliverable: A 6-8 slide presentation to be made in class in about 8-10 minutes on the day the current topic reading is scheduled to be presented and discussed in class. Please provide me with a printed copy of your slides immediately prior to your presentation and send me an electronic copy after it is over]

HBR Article Presentation (Team-based) (purpose: to learn important theories, concepts and best practices relating to innovation and new product development)

Each team (consisting of two students) will present a pre-assigned article selected from the Harvard Business Review articles being used in the course (see list of 14 articles on page 1 of the syllabus). The full text of the articles can be downloaded from the UConn Library database called Business Source Premier To locate the full text of an article do a search of the above mentioned database using the article title and publication name (i.e., Harvard Business Review) in the search fields.

The class sessions during which particular HBR articles are scheduled for presentation are listed in the “Schedule of Activities” section of the course outline. HBR Articles will be assigned to teams using a first-come, first-served basis.

Please sign-up for your HBR Article Presentation using the discussion board that has been set up for this purpose on our HuskyCT course website at your earliest convenience and no later than 5:30pm on April 1, 2016. While signing-up for your HBR Article presentation, please list the names of both team members.

[Deliverable: An 8-12 slide presentation to be made in class in about 12-16 minutes on the day the pre-assigned HBR article is scheduled to be presented and discussed in class. Please provide me with a printed copy of your slides immediately prior to your presentation and send me an electronic copy after it is over]

Simulation Exercise (Individual-based): (purpose: to learn how to formulate a product innovation strategy)

Each student will play a web-based pricing simulation exercise that is intended to provide a real-world learning experience on how to make product investment decisions in both mature and emerging technologies under conditions of uncertainty

[Deliverable: An 8-10 page write-up (double-spaced using a 12 point font) sent to me electronically as a single WORD or PDF file by 11:59pm on April 30, 2016]

HBS Case Write-Up on “Uber: Changing the Way the World Moves” (Individual-based) (purpose: to apply theories and concepts relating to innovation and new product development to

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a practical business situation)

Each student will analyze the HBR Case “Uber: Changing the Way the World Moves” and prepare a written report. The assignment involves proposing a re-designed strategy that would enable the company to transform its business to be more in tune with consumer needs, better respond to competition, while complying with regulatory constraints.

[Deliverable: An 8-10 page write-up (double-spaced using a 12 point font) sent to me electronically as a single WORD or PDF file by 11:59pm on May 7, 2016]

Class Participation

Due to the intensive nature of the course, you are expected to attend all classes and actively engage in all in-class activities and discussions. For students seeking to enhance their class participation grade, selected from-the-podium (i.e., facing the class) participation opportunities will be available. Please contact the instructor for details on these extra participation opportunities.

Missing class or being consistently late for class will adversely affect your class participation grade. To compensate for such absence or tardiness you will be required to complete additional individual assignments. Please contact the instructor for details on these make-up assignments.

EVALUATION:

The evaluation system is designed to encourage advance reading of all assigned material, regular attendance in class, well prepared presentations and active participation in class discussions. The course assignments will be weighted as follows in determining your course grade:

Individual-based work:Simulation Exercise 25 percentHBS Case Write-up 20 percentClass Participation 10 percent

Team-team based work Current Topic Presentation 20 percentHBR Article Presentation 25 percent

Letter grades will not be assigned to individual course components, because it would not be meaningful to do so (note: no mathematical operations can be performed on alphabetical symbols). Instead, numerical scores will be assigned to each component. The numerical scores for each component will typically range from a high of 93-96 (denotes A level work) to a low of 83-86 (denotes B level work), with the potential of dropping down to 77-82 (denotes C+ to B- work) for inferior submissions.

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The numerical scores for each component will be summed (based on the above component weights) to calculate an overall numerical score. Next, a frequency distribution of the overall numerical scores for the class will be computed and students will be given an overall class rank. The course grade (i.e., letter grade) will then be based on the individual student’s class rank, numerical score and the statistical properties (i.e., mean, min, max, standard deviation) of the frequency distribution of numerical scores for the class. You cannot receive an A in the course if your overall class rank and numerical score is in bottom half of the class (i.e., your overall performance is below average)

SCHEDULE OF ACTIVITIES:

L=LectureCTP=Current Topics Presentation HBRP=HBR article Presentation

Important: Please note that the schedule below is subject to change at the discretion of the instructor and the consent of student teams affected by the change. The reason for any potential changes would be (a) better sequencing of course topics, and (b) more effective use of class time.

Date Activities 1 Apr (pm) 5:00pm – 5:30pm: Designated In-Class time for finalizing teams and completing

sign-ups for team assignments on HuskyCT

Introduction to the courseL: New Product Development Fundamentals

2 Apr (am) 9:00am - 9:30am: Designated In-Class time for working on course assignments

L: New Product Development Fundamentals (cont’d)

CTP: What is Innovation? CTP: History of InnovationCTP: Technological Innovation CTP: Entrepreneurs and Innovation

2 Apr (pm) L: Generating and Evaluating New Product Ideas

L: Managing Creativity

CTP: Generating New Product Ideas CTP: Identifying Consumer Needs

Simulation Exercise: Introductory Scenario opens for play

4:00pm – 5:00pm: Designated In-Class time for working on Simulation

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8 Apr (pm) CTP: Nature of Innovation (Airplane Manufacturers) CTP: Nature of Innovation (Car Manufacturers)

HBRP on “What is Disruptive Innovation?” HBRP on “Collective Genius” HBRP on “Find Innovation Where You Least Expect It”

9 Apr (am) 9:00am - 9:30am: Designated In-Class time for working on course assignments

L: Defining Markets and Identifying Customer Needs

CTP: Defining Markets (Kellogg & General Mills) CTP: Defining Markets (Procter & Gamble)

HBRP on “The Innovative Power of Criticism” HBRP on “Using the Crowd as an Innovation Partner” HBRP on “Leading Your Team into the Unknown”

9 Apr (pm) L: Concept Selection and Testing

HBRP on “Big-Bang Disruption”HBRP on “Surviving Disruption”

CTP: Product Concept Development CTP: Prototype Development

CTP: Emerging Technologies (Virtual Reality & 3-D) CTP: Emerging Technologies (Autonomous Vehicles)4:00pm – 5:00pm: Designated In-Class time for working on Simulation

22 Apr (pm) L: Product Design and Positioning

HBRP on “Competing on Customer Journeys” HBRP on “Digital-Physical Mashups”

CTP: Product Design & Positioning (Wrist Watches)CTP: Product Design & Positioning (Television Sets)

23 Apr (am) 9:00am - 9:30am: Designated In-Class time for working on course assignments

HBRP on “Design Thinking Comes of Age” HBRP on “Digital Ubiquity”

L: Product Development Economics and Managing Projects

CTP: Commercializing New Products (Pharmaceutical Industry) 8

CTP: Commercializing New Products (Toy Industry)

23 Apr (pm) HBRP on “Transient Advantage” HBRP on “Build an Innovation Engine in 90 Days”

Discussion of the Simulation Exercise & Case Write-Up deliverables

Course Evaluation (official UCONN and on www.ratemyprofessors.com)

Designated In-class time for working on Simulation

COURSE POLICIES:

Special Needs: If you are a student who needs academic accommodations due to a disability or for a religious observance, please contact me at your earliest convenience so that appropriate accommodations can be made.

Professional Integrity: Students in this course are expected to abide by the highest standards of ethics and personal integrity, and to adhere to all university policies regarding academic honesty. Academic misconduct can result in a failing grade for the course. A student who knowingly assists another student in committing an act of academic misconduct shall be equally accountable for the violation. Issues of academic misconduct are covered in The Student Code, Part IV: Student Conduct Policies and in Appendix A. (see http://community.uconn.edu/the-student-code/)

Intellectual Property Protections: Many of the course materials posted on HuskyCT are protected by US copyright laws. Presentations made by student teams in class and posted on HuskyCT have the same protection. Please protect the intellectual property (IP) of others just as you would like your own IP to be protected.

Conflict with Course Dates: You may not concurrently enroll in any other course for which there is a conflict with the scheduled course dates for this course. You may not enroll in the course if you are participating in a university event (e.g., a case competition) or work assignment (e.g., a business trip) that requires you to miss multiple class sessions.

Course Communications: Important course announcements will be sent your official UConn (i.e., PeopleSoft) e-mail address only. You are expected to comply with the instructions in these announcements in a timely manner (typically 2 business days). Failure to do so could adversely affect your performance in class.

Use of Laptops and Mobile Devices: Please bring a laptop to all in-class sessions as you will be needing it to work on the Simulation. The use of mobile devices while class is in session is not permitted. If you have to attend to an important message, please exit the classroom to do so.

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DETAILS ON THE CURRENT TOPIC PRESENTATION

Each team (consisting of two students) is responsible for presenting a Current Topic reading to the class and acting as discussion leaders. The specific articles that comprise a topic (e.g., Prototype Development) have been collated together and posted on HuskyCT in a single PDF file. Thus, you will find 18 PDF files posted on HuskyCT, one corresponding to each of the 18 topics listed above.

The purpose of the Current Topics readings is to gain exposure to events and issues relating to the management of innovation and new product development that have recently been reported in the business press. In some instances, it may be necessary to do a limited amount of online research (60 minutes maximum) to update the content of the readings that constitute a particular topic or to provide additional background information.

What is Innovation? History of InnovationTechnological InnovationEntrepreneurs and InnovationGenerating New Product IdeasIdentifying Consumer Needs Nature of Innovation (Airplane Manufacturers) Nature of Innovation (Car Manufacturers)Defining Markets (Kellogg & General Mills) Defining Markets (Procter & Gamble) Product Concept Development Prototype Development Emerging Technologies (Virtual Reality & 3-D)Emerging Technologies (Autonomous Vehicles)Product Design & Positioning (Wrist Watches)Product Design & Positioning (Television Sets)Commercializing New Products (Pharmaceutical Industry) Commercializing New Products (Toy Industry)

Suggested Presentation Coverage:(nature of the innovation and past history; technological risk; consumer acceptance; marketing challenges; potential for success) Deliverable: A 6-8 slide presentation using attention-getting visuals (e.g., infographics, graphs, charts) to be made in class in about 8-10 minutes on the day the current topic reading is scheduled to be presented and discussed in class. Please provide me with a printed copy of your slides immediately prior to your presentation and send me an electronic copy after it is over.

Grading Criteria: While making your Current Topic presentation, attempt to 10

relate the business practices and examples depicted in the articles to theories and concepts being covered in the course. Treat the 4-5 articles included under a Current Topic as a set. Consolidate their content while preparing your presentation--instead of discussing them one at a time. Draw attention to the key facts and examples mentioned in the articles using attention-getting visuals. Highlight the business practices mentioned that you believe would stimulate class discussion.

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DETAILS ON THE HBR ARTICLE PRESENTATIONS

The purpose of the HBR article presentations is to learn important theories, concepts and best practices relating to new product development and the management of innovation. The articles have been selected to highlight product development decisions and scenarios that are normally encountered by firms. The typical HBR article presentation should draw attention to the key ideas mentioned in the article and the examples used to reinforce them. It should provide a basis for class discussion. A recommended format for these presentations is given below. No additional research on the companies or organizations mentioned in the article is needed.

RECOMMENDED SLIDE TITLES & SEQUENCE:

The Innovation or Product Development Situation or Issue or Problem (1 slide):

Relevant HBR Article Facts (3-5 slides): Present a summary of key points in the HBR article. Communicate the general content and tone of the article to the audience. Emphasize those facts which you believe are particularly relevant for class discussion.

Recommendations in the Article (3-5 slides): Highlight the recommendations made by the authors in the article. Relate them to new product development and the management of innovation.

Discussion Questions (1 slide): List three thoughtfully worded questions that you believe provide a basis for evaluating the recommendations made in the article Form opinions on the questions you select, but do not reveal them till you have heard from the rest of the class.

Deliverable: An 8-12 slide presentation using attention-getting visuals (e.g., infographics, graphs, charts) to be made in class in about 12-16 minutes on the day the pre-assigned HBR article is scheduled to be presented and discussed in class. Please provide me with a printed copy of your slides immediately prior to your presentation and send me an electronic copy after it is over.

Grading Criteria: In presenting and discussing the HBR articles your goal is to highlight the business practices and concepts mentioned in the articles by drawing attention to key facts and examples mentioned in the article. Present the article in a single unified manner by making sure that the presentation is well-integrated and the transitions between presenters is (i.e., rather than appearing like two separate presentations that have be patched together). Attempt to relate the HBR article to other course content

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using attention-getting visuals—but only to the extent it fits with such content.

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DETAILS ON THE SIMULATION EXERCISE

The purpose of the simulation is to apply innovation and product development concepts to a real-world scenario that involves making R&D allocation decisions for two different technologies in three different market segments over eight simulated years. One of these technologies is a “sustaining” technology while the other is a “disruptive” technology.

This online simulation enables you to assume the role of a business unit manager at Back Bay Battery Company which faces the dilemma of balancing a portfolio of investment strategies across products in the rechargeable battery category. You have to manage R&D investment tradeoffs between sustaining investment in the unit's existing battery business versus investing in a new, potentially disruptive battery technology. You must also decide which market opportunities to pursue, each of which offers differing short- and long-term payoff prospects. You manage the investment portfolios over eight simulated years. During this period you will have to address a number of challenges including timing and level of investment across both mature and new businesses, choices regarding market opportunities and inherent product performance characteristics, requirements to meet constraining financial objectives and constant trade-offs between investment options.

Helpful Hints:

The best way to approach investments in both the disruptive (Ultracapacitors) and sustaining (NiMH) technology is to seek to balance the twin goals of maintaining a healthy level of cumulative profit (so that funds are available to the company to invest in the disruptive technology) while also attempting to grow the disruptive technology (because that is where the future profit for the company is going to come from). If you focus too much in the first goal you will do poorly on the second, and vice-versa. Hence the objective is to pay attention to both goals and use a thoughtful approach to how the investments in the two technologies are to be made over the course of the simulation period.

Grading

The grade for the simulation will be partly (50 percent) based on a subjective (i.e., qualitative) assessment of the strategy you used for the simulation in terms of its soundness, consistency in execution, and other aspects that are indicative of a thoughtful approach to your decisions, and partly (50 percent) on an objective (i.e., quantitative) assessment of the your performance on key financial metrics.

To facilitate the qualitative assessment, please describe the rationale for the decisions made during Scenario A (Introductory Scenario) and a post-hoc (i.e., after the fact) analysis of the results you obtained. Remember to clearly articulate the strategy you used, the reasons for it, the extent to which the results obtained differ from the planned strategy, and an after-the-fact analysis of why that may have happened. For the quantitative assessment, please report the following information from you income statements: (a) the level of cumulative profit, and (b) the trend in revenue and contribution margin growth for ultracapacitors.

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The maximum number of runs you can make in the simulation is limited to 20. You are required to make a minimum of 10 runs. It is recommended that you base your simulation report on a coherent set of runs that show consistent results between the above minimum and maximum limits.

Use a first-person narrative style of writing. Organize your write-up using headings and sub-headings. It is okay to cut-and-paste charts and tables from your simulation runs to illustrate your investment strategy. But, please be highly selective while so doing.

Points to Ponder:

Best opportunities for new products are not visible early on. New applications can appear unattractive, but often represent the best long-term opportunities. Timing and level of R&D spending is difficult to gauge. Assessing emerging market opportunities is difficult using standard approaches.

Balancing dual requirements for simultaneously investing in core business and innovation is challenging. Constraining financial criteria and an organization's impatience for growth can make innovation difficult.

Deliverable: An 8-10 page write-up (double-spaced using a 12 point font) sent to me electronically as a single WORD or PDF file by 11:59pm on April 30, 2016.

Grading Criteria: See paragraph titled “Grading” above.

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DETAILS ON THE HBS CASE WRITE-UP

The purpose of the assignment is to analyze the case “Uber: Changing the Way the World Moves” as of the publication date of the case (which is November 1, 2015). The assignment involves proposing a re-designed strategy that would enable the company to transform its business to be more in tune with consumer needs, better respond to competition, while complying with regulatory constraints.

The specific task is to analyze the facts (including exhibits) and events presented in the case and relate them to concepts and theories you have been exposed to during the course while evaluating Uber’s strategy depicted in the case. Be selective in your coverage of concepts and theories, focusing only on those which you believe are of high relevance to the situation of the company as of the publication date of the case.

Helpful Hints:

Use a third-person narrative style of writing. Organize your write-up using headings and sub-headings (and sub-sub-headings if needed).

No additional research is necessary or desirable. Base your analysis only on the facts and events depicted in the case.

Use evidence-based arguments in doing your analysis, setting aside (for the moment) your own personal views relating to the product category (hence the third-person writing style).

Specific Questions to Answer:

Please start the answer to each question on a new page and number your answers so that they correspond exactly to each of the questions listed below.

1) Uber has become popular among consumers in a short period of time. What is Uber’s value proposition for Consumers? How has the company achieved such disruption? Is the value proposition for consumers sustainable? Justify your answers.

2) What is Uber’s value proposition for Drivers? What are the compliments and complaints that drivers have about driving for Uber? Is the value proposition for drivers sustainable? Justify your answers.

3) How robust is Uber’s business model? What are the strong and weak links in it? Is Uber vulnerable to competition? From the taxi/limo industry? From a disruptive competitor? Justify your answers.

4) Do you agree or disagree with Uber’s surge pricing policy? What are the risks of the policy to Uber? Given these risks, should Uber modify its surge pricing policy or let it remain the same? Justify your answers.

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5) Uber uses aggressive business tactics in its dealings with regulators and legal authorities. Do you agree with the use of such aggressive tactics while entering new markets and customer segments? Why or Why not?

6) Uber has achieved a high market valuation in a short period of time. How might they take advantage of such a valuation? What new business opportunities do your foresee for Uber? What might be some obstacles that hinder its further growth?

Deliverable: An 8-10 page write-up (double-spaced using a 12 point font) sent to me electronically as a single WORD or PDF file by 11:59pm on May 7, 2016.

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