INNOVATION STRATEGY Spring 2012 Professor Sonali K. Shah [email protected].

edu 534 Paccar Hall Class Schedule Wednesdays 6:00-9:20 in Paccar 393 Office Hours Tuesdays 3:30-5:30 in Paccar 534 Individual assistance is available by appointment as well. I look forward to seeing you! Course Overview This course is intended for students who want to know what is going on at the leading edge of innovation practice. Well begin the course with a short overview that will help you understand the history of innovation in the United States. Well then discuss several core concepts that will provide you with a basis for understanding patterns of change that are induced by innovation: diffusion, technology evolution, industry life cycles, and appropriability. These topics concepts constitute the core of what is often referred to as technology strategy or technology management. Well then peer inside the firm and see what firms are doing to organize and promote innovation within their walls: well examine structured innovation processes, methods of experimentation and learning, the lead user method of product development, garner some tips on managing innovators, and host a guest speaker wholl tell us about some practices currently being used at Microsoft. Well then put on our hiking boots (figuratively!), and venture outside the firm. We often think of firms as the primary engine of innovative activity and industrial progress. However, when it comes to innovation, there are many sources of ideas besides firms. The use of open models of innovation is becoming increasingly frequent and is giving rise to a number of successful business models. Well work to understand four different social structures that are responsible for a great many of the innovations we benefit from on a day-to-day basis: universities, community-based innovation (think open source), start-up ventures, and prizes1. These are social structures you want to understand as firms become more open in their innovation processes, these are the organizations youll be working with to tap into innovations. And, guess what? They often have goals and visions that are far different from those of many firms. Hence, well view each of these as distinct social structure and examine issues of motivation, organizational structure, methods of intellectual property protection, and how each source interfaces with firms (i.e. issues to consider when negotiating and/or working with each source). Well wrap up by discussing two topics: innovation in the developing world and issues related to implementation (once youve sourced a great idea, how do you ensure that your organization adopts it?). Well learn through lectures, case discussions, and in-depth discussions with several guest speakers (all of whom are working on some amazing and fantastic projects). Learning in this course is based heavily on reading, analysis, and group discussion. The course is designed to develop your ability to recognize and analyze problems and opportunities that innovative organizations face, investigate causes of these issues, develop solutions, and implement these solutions. Lets create an open, energetic, joint-learning environment in which we all learn from one another!
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Government and private research institutions, independent inventors, consultants, and the R&D labs of other corporations are other important sources.

Course Materials Well use cases and a set of selected readings in this class. Be sure to download both sets of materials. o Harvard Business School Cases and Readings are available through the HBS website for approx. $40: http://cb.hbsp.harvard.edu/cb/access/13396149 o Other readings are provided for free in PDF format on Blackboard Be sure to bring a paper copy of assigned readings to class each day. This will help you recall details during discussions and make small group exercises possible. Heres a note from a past student: I found it critical to have a hard copy on hand during class as a reference tool for discussion. Trees are going to lay down their lives for my education, either at a copy center or on the laser printer at my house. My memory isn't good enough for me to keep track of multiple articles and contribute pithy comments. ;^) In order to facilitate thoughtful discussions, laptops, e-readers, and cell phones will not be used in class. Course Responsibilities There are three primary assignments for the course: cases memos, class contributions, and a term paper or consulting project. You choose the form and topic of your final project! Pick something you are excited about and that you enjoy thinking about. You will also get some choice over how each of these items is weighted for your final grade (more on this after the first week of class). The default option for weighting these assignments appears below. Percentage of Grade 25% 35% 40% 100%

Assignment Case Memos Individual Class Contributions Term Paper or Consulting Project Total

Paper copies of assignments are to be submitted at the beginning of the class session on the day they are due.

Case Memos During the semester, we will discuss a number of Harvard Business School Cases. Pick any five from the lists below and submit a brief memo (approx. 600 words, which is about one single-spaced page) at the beginning of class. Use the tools and frameworks learned in this class or in your core strategy or organization behavior class to structure your data analysis and form your opinions (you can include these in appendices, if youd like). Some tools and frameworks include: diffusion, s-curves, industry life cycles, appropriability, standards, motivations, individual identity, Porters Five Forces, value chain, VRIO/VRIS analysis, strategic coherence maps. Please make your arguments in terms of the ideas and theories weve discussed in this class, or in your strategy and organizational behavior classes. Using one or more frameworks will help you analyze a situation in a complete and systematic manner. Your memo should outline your recommendations and a plan of action for the company. Put yourself in the role of advisor or consultant to the company managers. Identify the key issues and problems facing the company and focus the majority of your memo on making specific recommendations with a supporting plan of action. Devote a paragraph to open and clear discussion of any risks, pitfalls, or weaknesses in the plan.

Details Please submit a paper copy of your memo to me at the beginning of the relevant class session You may work individually or in groups of 2-3 students (a group may jointly submit a single memo) Memos are evaluated on a pass (3.3)/redo basis, with the opportunity of bonuses (4.0) going to students who produce especially thoughtful and original work. If you do not receive a pass on a memo, you may submit another memo on a case we have not yet discussed in class Cases: Synthes, The Travails of Rubber, Apple, Inc. 2008, Whats the Big Idea, Bank of America, Innovation at 3M, The Langer Lab, Managing Creativity at Shanghai Tang, Intel Capital, IBM & Linux

Class Participation & Professionalism "Eighty percent of success is showing up." -Woody Allen The best way to ensure your readiness for each class is by completing the readings and preparing written answers to the preparation questions. Much of our class time will be devoted to discussion of assigned cases. To get the most out of class you must prepare conscientiously and participate actively in study group and class discussions. Failure to participate robs others of your perspective and increases the chances that the discussion will not be relevant to your interests and abilities. Please participate actively. What is conscientious case preparation? Read the case and additional readings thoroughly; identify principle issues to be addressed in the case; attempt to analyze these issues using your common sense and any appropriate tools or techniques, and note any action recommendations implied by your analysis. Alternatively, if you find yourself hitting a roadblock, try to articulate what your problem is. Oftentimes, identifying roadblocks is as valuable as a complete analysis. You should expect to spend between two and three hours preparing each case. For each case assigned, I have posed several preparation questions. Usually the questions are simply guidelines to help you get started on your analysis. You should not assume that answering all of the preparation questions necessarily constitutes a complete analysis. My general advice is always to read the preparation questions, but do not feel overly constrained by them. Do not be surprised if after conscientious preparation you still feel there are some loose ends in the case you are not certain about. Your test of whether you are learning the material and progressing adequately should be how you feel after the class discussion, not before. You are doing fine if after a class discussion you believe you could adequately handle a similar situation in the future. I will alternate between asking for volunteers and calling on individuals. If you are not prepared, please let me know before class, so we can all avoid feeling uncomfortable. Surprise essay or short answer questions may be presented in class as a means for you to show off what you know about selected topics, particularly the readings assigned for class. What do I say? You can contribute in many ways. You may, for example, offer insights or observations, ask questions, politely disagree with me or another student (i.e. you can disagree with an idea without discrediting the speaker), help others to articulate their point of view, or follow up on a fellow students comments with further insights or evidence2. There are usually many valid ways of looking at any issue we study, so, again, dont worry about being wrong you may be bringing a whole new level of discussion and insight into the discussion!

A contribution is a comment that uses logic, evidence, or creative thinking and is more than merely an expression of an opinion or feeling. It also possesses one or more of the following properties: 1) offers a different and unique, but relevant, insight to the issue, 2) moves the discussion and analysis forward to generate new insights, 3) builds on the preceding discussion and relates to personal experience in a way that helps to illuminate the ideas being discussed. Interesting and thought-provoking questions count as much as interesting answers.

Term Paper (Choose this or the Consulting Project assignment) This assignment is deliberately open-ended to give you the opportunity to think deeply about a topic that fascinates you. What phenomenon will you investigate? What problem will you try to solve? How will you apply a concept? The process of defining and honing a topic will take time and thought. Part of what I want for you to learn is what it means to ask and address interesting and useful questions. Choose a topic covered in class that especially interests you. Briefly explain the topic at the start of the paper: devote 1-2 pages to this. Have a thesis statement. Expand the topic in a direction that interests you! State and summarize where you are going with the topic and then do it. Devote the remainder of the paper to this. Its fine to draw from your personal experiences and views in addition to findings from extra reading and research on the topic. Primary research is encouraged, e.g. interviews with experts or the collection and analysis of data or information. You do not need to do any extra content readings, although you can certainly learn more from other sources. Do draw from class lectures and discussion, assigned readings, and other sources of information that you already have. Examples: Choose a topic covered in class that especially interests you o Free Revealing of Innovations by Some Innovators Briefly explain the topic at the start of the paper: devote 1-2 pages to this. o Here is how free revealing was described in class readings and lectures. Here is how it is thought to work, and what its advantages and disadvantages are thought to be. Expand the topic in a direction that interests you! o Voluntary free-revealing of innovations is very different from the efforts to protect innovations that economists and policy makers have long assumed are necessary to motivate individuals to innovate. o Here are my thoughts on why free-revealing will or will not occur in industry X and why, given the present conditions in that industry. Here is how I think free revealing could be encouraged or discouraged in this industry. o Finally, let me summarize my conclusions with respect to the value of free-revealing in industry X, how to encourage or discourage it, etc. Details Please work individually Length: 7-10 pages, double spaced, size 12 Times New Roman font, 1-inch margins Deliverables o Topic overview and one-page outline due Wednesday, April 25th. Who will you speak to or interview? What primary research will you conduct? o Final paper due at the beginning of the last class session (May 30th) Feedback: I am happy to discuss potential topics or your outline with you at anytime during the quarter. Please do not let commitments in other courses take away time from this assignment. Coming up with a good question can be difficult. Its unlikely that youll be able to put together a solid paper at the last minute Examples of thoughtful papers are available on the course Blackboard site (they appear all the way at the bottom of the Course Documents page, under the heading Final Papers)

Consulting Project (Choose this or the term paper assignment) The consulting project provides you with the opportunity to apply your analytical skills and strategic knowledge to a real-world business situation. The goal of the assignment is for you to apply what youve learned in this and other classes to benefit a firm of your choosing. You can choose to work closely with a small, high technology start-up or with an established firm looking to improve their innovation outcomes. The Seattle area is home to many innovative firms, both young and established, allowing you to choose from a wide array of industries. If youd like, I can suggest some startups with which to work and arrange introductions; please see me. You may work individually or with a team of up to three students. And, many of you are working on your own startups or at established corporations: this is a great opportunity to form a team around a problem that you are trying to solve. Note that it might be most beneficial for you to pitch your firm or department to your classmates and have your classmates form a team where you are the client (and not a team member). Speak to the firms founder or a high level manager and understand the firms business model, industry, and key challenges. Decide what you will do for the firm. Provide (a) strategic judgments identifying the key issues and problems facing the company with supporting evidence and sound logic; (b) specific recommendations with a supporting plan of action; (c) open and clear discussion of any risks, pitfalls, or weaknesses in the plan. Use the various frameworks, concepts, and techniques discussed in the course or otherwise known to you. Remember, however, that these are analytical tools and help in forming judgments about central problems and associated recommendations; they are not ends in themselves. Emphasize your judgments and present data/information, along with supporting analysis, in support of these judgments. Avoid merely rehashing facts. Details Please arrange to meet with your client firm within the first ten days of the quarter. Remain in contact with the client as you progress to make sure that the project that you deliver is something that the firm can use. Set up weekly or biweekly meetings with your team. Deliverables o Challenges Faced by the Company: Wednesday, April 11. After speaking to your client, summarize the challenges being faced by the company. Begin to investigate the industry and see if you can foresee any challenges that the company may face as well. o Project Statement: Wednesday, April 18. What can you do for this company? What will you do for this company? For example, will you investigate submarkets? Think through and assemble a detailed diffusion/marketing plan? Conduct an analysis of strategic and technological threats faced by the company? Focus on sincerely providing information and analyses that will help this firm move forward. These firms are excited to receive your assistance and have done and created some really cool innovations: you can both learn a great deal from one another. What will your deliverables look like? Plan to present your deliverables in the form of a slide deck and a written report. o Week 6 update: Wednesday, May 2. Are you on target? What information do you need? Do you have questions in applying frameworks? o Final project presentation/meeting with your client/final project due:on or prior to May 30 (depending on details, I can offer you some flexibility on this, if you see me on or prior to May 2)

Teaching Philosophy The course places particular emphasis on your ability to think critically and to communicate both verbally and in writing. The course also requires you to apply concepts to organizations with which you are familiar, thus challenging you to apply course frameworks to real-world phenomena and make practical suggestions for how an organization can change or improve its strategy. What you learn is just information until you learn how to use it. I want you to go away with an understanding of how to use and apply concepts, not just regurgitate concepts. This takes sincere effort and thought and is a skill that each of us can build, sharpen, and hone. Truly building your analytical and reasoning skills is difficult and time consuming, but building these skills will prove useful in your professional and personal lives. I am available to meet with you outside of class and to help support you in your learning.

Etc. Laptops, cell phones, pagers and other devices are not needed in class, nor will they be used. If there is a situation where you may need to take an emergency call, please let me know at the beginning of class. Please be alert for changes to the schedule that are announced in-class or via email. While it may be necessary to clarify or alter the course requirements or content during the quarter, I will only do so in the event that changes are needed to create a better learning environment or improve course content. If you would like me to re-evaluate your work, please submit the original assignment and a detailed, type written note explaining your request within 1-week. Grades may be adjusted up or down based upon the re-evaluation. Re-evaluations are final. I expect everyone to abide by the University Honor Code and the Foster School Code of Conduct. You will find that I have a somewhat informal and flexible teaching style. However, I have little tolerance for suspected cheating or disrespect towards fellow students or myself. Please remember that integrity and trustworthiness are your most important assets. Im happy to discuss the course or most any other issues of interest to you on an individual basis. Drop by my office hours or email me to set up an appointment.

The Quarter at a Glance Class Date Topic

Wednesday, March 28

Course Introduction Innovation: The Role of the Firm Historically & Today Diffusion: How Does a New Product Become Something that Everyone Wants?

Wednesday, April 4 Wednesday, April 11 Wednesday, April 18 Wednesday, April 25

Technology Evolution (S curves) & Industry Life Cycles Managing Through Market & Technology Evolution: Moving Targets Appropriability: Patents, Copyrights, Trademarks & Complementary Assets Standards, Platforms & Network Effects Structured Innovation Processes Experimentation & Learning The Lead User Method University-Industry Technology Transfer Guest Speaker: TBA

Wednesday, May 2

University-Industry Technology Transfer: The Good & The Challenging Prizes & Broadcast Search Guest Speaker: Erika Wagner, X-Prize Foundation & University of Washington; Jim Bennett, University of Washington (previously VP at Netflix)

Wednesday, May 9

Managing Innovation & Creativity (note: this weeks topics would normally be discussed after the session on standards) Innovation at Microsoft: Social Media & Search Guest Speaker: Jon Tinter, General Manager, Microsoft (note: this weeks topics would normally be discussed after the session on standards)

Wednesday, May 16

Sourcing New Products & Technologies from Start-Ups: Corporate Venture Capital Investing Sourcing New Products & Technologies from Start-Ups: Current Trends Guest Speaker: Jason Stoffer, Partner, Maveron. The venture capitalist perspective and insights on where the US consumer market is going

Wednesday, May 23 Wednesday, May 30

Community-Based Innovation: Working with Communities Community-Based Innovation: Innovation, Sharing & Entrepreneurship

Founding, Leading & Managing an Innovative Firm Guest Speaker: Madhavi Vuppalapati, Founder & CEO, Prithvi Information Solutions

Reading List & Preparation Questions Class Date Topic & Readings

Wednesday, March 28

Course Introduction Innovation: The Role of the Firm Historically & Today Readings Skim: The Bakeoff: Project Delta Aims to Create the Perfect Cookie" Malcolm Gladwell. The New Yorker, September 5, 2005 Preparation Questions What assumptions do we make when it comes to thinking about innovation? Where do innovations come from? Diffusion: How Does a New Product Become Something that Everyone Wants? Readings Note on Innovation Diffusion: Rogers' Five Factors, HBS #50575 "Crossing the Chasm. Chapters 1 & 2. Geoffrey Moore. Harper Collins, New York, 1999, pp 9-62 Netbooks Lose Status as Tablets Like the iPad Rise by Steve Lohr. New York Times, February 13, 2011 Preparation Questions What are the economic and non-economic factors that determine the diffusion of new technologies? How can firms best assess these factors and utilize them to increase the diffusion of a new product? Make sure that you understand what the chasm is and the stages that precede and follow it and the factors that cause a transition between stages

Wednesday, April 4

Technology Evolution (S curves) & Industry Life Cycles Case "Smaller: The Disposable Diaper and the Meaning of Progress" by Malcolm Gladwell. The New Yorker, November 16, 2001 Reading "The S Curve: A New Forecasting Tool" by R. Foster. Chapter 4 in Innovation: The Attacker's Advantage. New York, NY: Summit Books, 1986. ISBN: 9780333435113. Dominant Designs and the Survival of Firms by Jim Utterback. Chapter 2 in Mastering the Dynamics of Innovation. Boston, MA: Harvard University Press, 1994. Preparation Questions Make a list of those factors which you believe are most important in determining the rate at which technology improves. What are the managerial implications of the technology dynamic described by Foster as the S curve? How did diaper technology evolve? Does it fit the models outlined by Foster? Construct a rough S-Curve for the diaper industry Managing Through Market & Technology Evolution: Moving Targets Case Synthes (HBS 9-502-008) Preparation Questions Should Synthes develop bioresorbable internal fixation devices? If so, why and how? If not, why not? Where is the technology headed and why? Estimate the likely size of the resorbables market within five years.

Wednesday, April 11

Appropriability: Patents, Copyrights, Trademarks & Complementary Assets Case The Travails of Rubber: Goodyear or Badyear? (HBS #9-808-118) Please read one or more of the following Looking for an overview of what patents, copyrights, and trademarks are? Look no further: "Chapter 9: Protecting Innovation" by Melissa Schilling in Strategic Management of Technological Innovation, 2nd ed. Wondering how to make money from ideas generated by an established firm (or by a start-up)? Read this: "Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy." David J. Teece. Research Policy, 1986, vol15 (6). pg 285-305. Preparation Questions for the Case Why did Charles Goodyear fail to profit from the discovery of rubber vulcanization? To what extent was the patent system to blame? Is this a case of misguided entrepreneurial decision-making or a failure in the intellectual property system? In your view, did patents promote, or hinder, innovation during the time period covered by the case? Would your answer be different if the question was based on the way patent systems function today? Preparation Questions for the Gans-Stern and Teece readings What is the difference between the market for ideas and the product market? When does it make sense for a team of entrepreneurs to enter the market directly? Attempt to sell their ideas? Do the decision criteria change if the team is located within a large firm? How does the relative importance of appropriability vs. complementary assets change over the life cycle of an industry? Standards, Platforms & Network Effects Case "Apple Inc., 2008" (HBS# 9-708-480) Reading Shapiro, C. and Varian, H. R. The Art of Standards Wars. California Management Review, 41, 2, Winter 1999. Preparation Questions What were Apples competitive advantages? How do these change over time? Why did Apple fail to build on these advantages and lead the PC industry? Could Apple have succeeded despite the decision not to license the OS? How has the structure of the personal computer industry changed over the last 20 years? What are the implications for the profitability of personal computer makers? Has Steve Jobs finally solved Apples long standing problems with respect to the Macintosh business? The iPod-iTunes business has been a spectacular success. Has Jobs found a new formula to create sustainable competitive advantage for Apple? How would you assess Apples initial strategy for the iPhone? Why did Apple change so quickly to a different strategy?

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Wednesday, April 18

Structured Innovation Processes Case "What's the Big Idea?" (HBS# 9-602-105) In class case comparison: IDEO Preparation Questions Why does BIG seem better able to identify and bring to market innovative toy concepts, whereas the major toy companies feel they are in a period of a "lack of innovation" (p. 3)? How would you characterize BIGs innovation process, organization, culture, and management? How proprietary or defensible is BIG's system? Could one of the major toy companies replicate it? Why or why not? Can BIG replicate its system in other industries such as your own? Experimentation & Learning Case Bank of America (HBS #9-603-022) Preparation Questions How would you characterize Bank of Americas new system for developing new services? How would you characterize Bank of Americas innovation process, organization, culture, and management? Compare Bank of Americas approach to other product development systems with which you are familiar (or BIG). What are the differences? What are the similarities? Does it matter if it is a product or service that is being developed? What is the role of experimentation? How can companies maximize their learning from experimentation?

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Wednesday, April 25

The Lead User Method Case Innovation at 3M Corporation (A) (HBS 9-699-012) Preparation Questions How has 3Ms innovation process evolved since the company was founded? Does 3M, known as a hothouse of innovation, need to regain its historic closeness with the customer? How does the lead user process differ from and complement other traditional product development methods (think about what you learned in marketing)? Has the Medical-Surgical team applied the Lead User process successfully? Why or why not? 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 future of the lead user process at 3M? What are the risks to the Medical-Surgical business unit? University-Industry Technology Transfer Guest Speaker: TBA

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Wednesday, May 2

University-Industry Technology Transfer: The Good & the Challenging Readings "Drugs, Devices & Doctors." Paul Krugman. New York Times, December 16, 2005 Additional required readings will be posted on the course Blackboard site Case/Background Reading The Langer Lab - Commercializing Science (HBS#9-605-017). Note: this case is largely descriptive and shows us the inner workings of a very productive and successful academic lab. Well be using it more as background reading rather than to motivate a formal case discussion. Preparation Questions The Langer Lab produces a great number of students, patents, papers, and start-ups. What resources and capabilities are necessary for the system to work? Are these widespread? Heres another way to think about the same question: Why is this lab so productive? Can the model be replicated by other labs? Why or why not? What can universities do to encourage and support future Bob Langers? Will such policies change the nature of scientific inquiry? How? Think broadly (i.e. the answers to the following questions are not in the readings): What are the various ways that universities support industrial innovation? What roles do universities fill in society? What are the benefits of university innovation? What can be done to support these benefits, while lessening risks of problems and unethical behaviors? Prizes & Broadcast Search Guest Speaker: Erika Wagner, X-Prize Foundation & University of Washington and Jim Bennett, University of Washington (previously VP at Netflix) Reading & Preparation Prizes for Technological Innovation by Thomas Kalil. The Brookings Institution Discussion Paper. December 2006. Please go to Innocentive.com and www.xprize.org and familiarize yourself with how these prize structures are operating. Be ready to learn the basics of designing a prize.

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Wednesday, May 9

Managing for Innovation & Creativity (note: this topic would normally be discussed just after the session on Standards) Case Managing Creativity at Shanghai Tang (HBS # 9-410-018) Reading Leading Clever People. Goffee, Rob, and Gareth Jones. Harvard Business Review 85, no. 3 (2007): 72-79. How to Kill Creativity by Teresa Amabile in the Harvard Business Review, SeptemberOctober 1998 Preparation Questions What are some things you can do to lead and motivate innovators? What are some things that you dont want to do? What are the key tensions and challenges at Shanghai Tang? How did they come about? What advice would you give Raphael le Masne on managing creativity at Shanghai Tang? Innovation at Microsoft: Social Media & Search (note: this topic would normally be discussed just after the session on Standards) Guest Speaker: Jon Tinter, General Manager, Microsoft.

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Wednesday, May 16

Sourcing New Products & Technologies from Start-Ups: Corporate Venture Capital Investing Case Intel Capital: The Berkeley Networks Investment (HBS # 9-600-069) Reading "Making Sense of Corporate Venture Capital" by Henry W. Chesbrough, Harvard Business Review, March 2002 Preparation Questions Why did Intel decide to invest in Berkeley Networks? Why did Berkeley Networks invite Intel to invest? How does Intel Capitals investment process differ from that of private venture capitalists? What is Intel learning from its investment in Berkeley Networks? What is Berkeley Networks learning from its investment in Intel? If you were an entrepreneur, would you want Intel as an investor in your start-up? Why or why not? What should Keith Larson do? Sourcing New Products & Technologies from Start-Ups: Current Trends Guest Speaker: Jason Stoffer, Principal, Maveron. The venture capitalist perspective and insights on where the US consumer market is going

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Wednesday, May 23

Community-Based Innovation: Working with Communities Case IBM & Linux A (HBS # 9-903-083) Optional Readings and Online Resources The Cathedral & The Bazaar by Eric Raymond: http://www.catb.org/~esr/writings/cathedralbazaar/ Linux home page: www.linux.com Questions for Discussion How does the open source community manage itself? How does the open source model differ from proprietary models of software development? Why is an alliance with the Linux development community potentially attractive to IBM? What could IBM accomplish in conjunction with the community that it could not on its own? What can IBM offer that would be attractive to the Linux development community? What are the different options that IBM could take? How is the community likely to react? What are the risks and benefits of collaborating with this community? What barriers stand in the way of a successful alliance? What practices/strategies would have to change in order for a firm like IBM to collaborate with the open source community? Are these changes feasible? If you are Dan Frye how do you approach the community? Recommend a strategy and an action plan Community-Based Innovation: Innovation, Sharing & Entrepreneurship Reading Open Beyond Software by Sonali K. Shah. In Open Sources 2, edited by Chris Dibona, Danese Cooper and Mark Stone. OReilly Media, Sebastopol, CA. 2005. Preparation Questions Why do people contribute to user communities? How are innovation communities organized? What norms and rules govern innovation communities? How do user communities contribute to market emergence and development? How does the process of user entrepreneurship differ from the "standard" entrepreneurial process?

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Wednesday, May 30

Founding, Leading & Managing an Innovative Firm Guest Speaker: Madhavi Vuppalapati, Founder & CEO, Prithvi Information Solutions

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