Lecture Notes

0. Introduction
1 Creating, capturing, and delivering value with technology strategy

Is the strategy outlined for Motorola useful? Why or why not?

In your view, how should one define a strategy for a technology driven company? How should such a strategy differ from a technology strategy?

What should be the relationship between them?

When is a technology strategy useful? What should be its role?

I. Creating value: technology, market, and organizational perspectives
2 Case: eInk

What are the critical characteristics of electrophoretic displays?

What implications do these characteristics have for systems of which they are a component?

Which possible applications should eInk be targeting?

How should eInk prioritize its opportunities?

Should they target a smaller niche initially?

Which capabilities should eInk build?

3 Case: Apple 2006

What are the critical technological trajectories in the personal computer industry over the last 20 years?

Who are the relevant customers and how have their preferences evolved over the last 20 years?

How has Apple's PC strategy evolved?

What technology trajectories do they emphasize?

What customers do they target?

What capabilities have they built over time? How do these capabilities differentiate their offering?

How has Apple's iPod and iTunes strategy evolved?

How does the iPhone fit into the iPod/iTunes strategy?

How do technologies and customers differ for this product?

What is your recommended next step for the iPod/iTunes business?

4 Industry life cycles and evolution of markets Bring your questions and/or reflections on the content so far to class. (PDF)
5 Case: Novartis

How have innovations traditionally been developed at Novartis? How has this changed over time?

What role do biotechnology firms play in the Novartis innovation process?

What are the advantages and disadvantages of centralized R&D?

What other important issues are relevant to the design of Novartis's organizational structures?

How should Novartis restructure now?

6 Partnership case: Intel (A): photolithography strategy in crisis

What is Intel's view of basic research?

What are the strengths of Intel's approach to R&D? Do you see any weaknesses?

What would you recommend that Sandy Wilson do?

Of the three options outlined on page 10 of the case, which do you think makes the most sense and why?

7 Organizational of innovation: structure, processes and incentives Bring your questions and/or reflections on the content so far to class. (PDF)
II. Capturing value: appropriability, competition, and interdependence
8 Case: Abgenix and the XenoMouse

How do you think Abgenix can best exploit the Xeno Mouse? What should they do now?

Who else could capture value from the Xeno Mouse?

9 Appropriability: uniqueness and complementary assets Bring your questions and/or reflections on the content so far to class. (PDF)
10 Case: Ember: developing the next ubiquitous network standard

Should Ember integrate into chip manufacturing? Why or why not?

What are Ember's major competitive threats going forward?

What should Ember's strategy be?

11 Open standards, increasing returns, and propriety control Bring your questions and/or reflections on the content so far to class. (PDF)
12 Case: Red Hat and the Linux revolution

What are the major advantages of Linux over other operating systems?

What role do standards play?

What is Red Hat's strategy for creating and capturing value?

What role do partnerships play?

What should Red Hat do now?

13 Partnership case: Google and AOL

What value does Google create for users? How does Google capture value?

What are the major turning points in Google's evolution?

What role do partnerships play? What effect did Google's early partnerships (e.g., AOL) have on Google's evolution?

Who are Google's major competitors in every stage of its evolution? What are the major threats to Google's dominance in internet advertising?

What are Google's main competencies? Where does Google fit in the value chain?

What are the most important markets that Google should enter? Why?


Mid-course summary (PDF)

14 Horizontal / vertical strategies and the evolution of the value chain Bring your questions and/or reflections on the content so far to class. (PDF)
15 Case: Nokia, Apple iPhone, and Google phone

Today's class will focus on a comparison of the mobile phone technology strategies of Nokia, Apple, and Google.

What are the critical technology trajectories and customer segments impacting the next generation mobile phone industry?

What types of firms influence mobile technology standards and the adoption of technologies?

Compare Nokia, Apple, and Google mobile phone products and technologies. What differential value do they offer? What customers do they target?

Compare Nokia, Apple, and Google mobility value creation strategies. How do they fit with other lines of business?

Compare Nokia, Apple, and Google mobility value capture strategies. What role do uniqueness and complementary assets play?

How do the firm's capabilities differ? Compare the partnerships of each firm and describe their positions in the value chain.

What should each firm do?

Who will win the battle? Who will be most successful? Why?

16 Strategic management of platforms and ecosystems Bring your questions and/or reflections on the content so far to class.  
III. Delivering value: organizational dynamics and inter-firm relationships
17 Case: we've got rhythm! Medtronic Corporation's cardiac pacemaker business

Why did things go so badly wrong at Medtronic?

What role does rhythm play in Medtronic's line of business? What simple rules guide strategic decision making at Medtronic?

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

What should they do now?

18 Case: Toyota Motor corporation: launching Prius

What capabilities and technologies does Toyota possess related to hybrid technologies? What value does a hybrid car provide?

What are the critical decisions to be made? How should Toyota's executives make these decisions?

Should Toyota launch the Prius at this time or not? Why now? Why not wait?

19 Organizational dynamics: overload, time-pacing, simple rules, and probing Bring your questions and/or reflections on the content so far to class. (PDF - 3.2 MB)
20 Partnership case: Alza/Ciba (1): structuring a deal? Class 20 and 21 focus on a class-based exercise.


21 Partnership case: Alza/Ciba (2): managing the relationship, 1977-1979 Class 20 and 21 focus on a class-based exercise.


IV. Practicing technology strategy
22 Case: Kodak and the digital revolution (A)

All things considered, did it make sense for Kodak to invest in digital photography? Why or why not?

How would you evaluate their ability to execute their strategy? Why did the firm encounter difficulties? What might they have done differently?

What should Kodak do next?

23 Selected student presentations    
24 Conclusions and reflections Bring your questions and/or reflections on the content so far to class. (PDF - 1.4 MB)