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  • 1. Graduate School of Management and Technology COURSE SYLLABUS DMGT 850 Innovation and Sustainable Development (6 credits) Fall Semester, 2007 Professor Tom Mierzwa WebTycho sections Phone: 301-985-7372 tmierzwa(at).umuc.edu Course Description: A study of how technological innovation drives the long-term competitiveness of global organizations. The objective is to acquire skills in developing conceptual frameworks for managing sustainable organizational growth in both private and public sectors. Focus is on critically evaluating the actors and factors for technological innovation and developing concepts for managing technological innovations to improve the creation and delivery of new goods and services in a productivity-based international competitive environment. Discussion covers issues related to technology resources, technological capacities, capabilities and competencies, and technology strategies for sustained competitive advantage in the global marketplace. Decision-making roadmaps are developed and applied to ensure that technological and socioeconomic/ethical/legal considerations are integrated for desired results. Course Objectives: At the conclusion of this course, students should be able to: • Assess the significance and impact of technology’s progression, and the increasing complexity and risks to sustaining acceptable social and environmental conditions. • Demonstrate a clear understanding of the basic theories, concepts and principles of managing technology innovations and an ability to integrate them. • Demonstrate a clear understanding of key literature in the areas of innovation, sustainability, and technology management. • Analyze both organizational and national competitive status and develop practical innovation strategies that lead to sustainable competition. • Recognize market failures as a source of innovation opportunities at various market and government levels. • Evaluate technology management approaches and principles of sustainable development to the challenges of contemporary organizations operating in a competitive global environment 1
  • 2. Philosophical Outlook of this Course: This is a course about innovation set in a context of strategies for sustainability. From its origins in the Brundtland report to the United Nations, sustainable development can be described as meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. “Sustainable business development” refers to a holistic management construct that embraces the entire business system and supply chain from the origins of raw materials to production processes, finished goods and services, and end-of-product-life solutions. This course views sustainable development from a strategic and practical management perspective. This perspective encompasses a wide range of innovative corporate and governmental activity at the intersection of business and the environment that is transforming existing markets, creating new ones, and embedding sustainability principles in firms’ strategies. As such, sustainability is a rich and relevant platform for examining how innovation and technology influences can be both causes and potential solutions. The growing imperative to incorporate environmental impacts, health issues, community effects, and a longer-term fiduciary responsibility to stockholders into strategy provides a strong incentive for companies to seek innovative approaches that explore new market opportunities and reinforce sustainability. Required Texts and Materials: 1. Burgelman, Robert A., Christensen, Clayton M. and Wheelwright, Steven C. (2004). Strategic Management of Technology and Innovation, (4th Ed.), Chicago, IL: Irwin Publishers. [ISBN: 0-07-253695-0] 2. Rainey, David L. (2006). Sustainable Business Development: Inventing the Future through Strategy, Innovation, and Leadership, New York, USA: Cambridge University Press. [ISBN: 13-978-0-521-86278-3] 3. Laszlo, Ervin and Peter Seidel (Eds.) (2006). Global Survival: The Challenge and its Implications for Thinking and Acting, New York, USA: select Books, Inc. [ISBN: 1-59079-104-5] Recommended Books (additional resources to be added during the course): Khalil, Tarek (2000). Management of Technology: The Key to Competitiveness and Wealth Creation, Boston, MA: McGraw Hill Irwin. [ISNB: 0-07-336149-X] paperback. Stead, W. Edward and Jean Garner Stead (2004). Sustainable Strategic Management, Armonk, NY: M.E. Sharpe, Inc. [ISBN: 0-7656-1132-5] paperback Other Interesting Books on Sustainability and Business Development Hawken, Paul, Amory Lovins, and L. Hunter Lovins (1999). Natural Capitalism: Creating the Next Industrial Revolution, Boston, USA: Little, Brown and Company. [ISBN: 0-316-35300-0] paperback Benyus, Janine M. (1997). Biomimicry: Innovation Inspired by Nature, New York, USA: HarperCollins Publishers. [ISBN: 0-688-16099-9] paperback. 2
  • 3. Willard, Bob (2002). The Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line. Gabriola Island, BC: New Society Publishers. [ISBN: 0-86571-451-7] hardcover Hitchcock, Darcy and Marsha Willard (2006). The Business Guide to Sustainability: Practical Strategies and Tools for Organizations, Sterling, VA: Earthscan Publishers. [ISBN-10: 1-84407-320-3] paperback. Edwards, Andres R. (2005). The Sustainability Revolution: Portrait of a Paradigm Shift, Gabriola Island, BC: New Society Publishers. [ISBN: 0-86571-531-9] paperback. Nattrass, Brian and Mary Altomare (2002). Dancing with the Tiger: Learning Sustainability Step by Natural Step, Gabriola Island, BC: New Society Publishers. [ISBN: 0-86571-455-X] hardcover. Journal Articles (additional resource articles to be added during the course): 1. Dean, Thomas J. and Jeffrey S. McMullen (2007). Toward a theory of sustainable entrepreneurship: reducing environmental degradation through entrepreneurial action. Journal of Business Venturing, 22, 50-76. 2. Dijkema, G.P.J., Ferrao, P., Herder, P.M. & Heitor, M. (2006). Trends and opportunities framing innovation for sustainability in the learning society. Technological Forecasting and Social Change, 73(3), 215-227. 3. Glenn, J.C. & Gordon, T.J. (2004). Future issues of science and technology. Technological Forecasting and Social Change, 71(4), 405-416. 4. Goncalves, M.E. (2006). Risk and the governance of innovation in Europe. Technological Forecasting and Social Change, 73(1), 1-12. 5. Hardin, Garrett (1968). The Tragedy of the Commons. Science, New Series, 162 (3859), 1243-1248. 6. Kanter, Larry (2006). The Eco-Advantage. Inc. Magazine, November 2006, 79-103. Available online at: http://www.inc.com/magazine/20061101/green50_intro.htm 7. Mikkola, J.H. (2001). Portfolio management of R&D projects: Implications for innovation management. Technovation, 21, 423-435. 8. Muller, A., Valikangs, L. & Merlyn, P. (2005). Metrics for innovation: Guidelines for developing a customized suite of innovation metrics. IEEE Engineering Management Review, 33(4), 66-72. 9. Phaal, R., Farrukh, C.J. & Probert, D.R. (2004). Technology roadmapping: A framework for evolution and revolution. Technological Forecasting and Social Change, 71(1/2), 5-26. 10. Smits, R. (2001). Innovation studies in the 21st century: Questions from a user's perspective. Technological Forecasting and Social Change, 69(9), 861-883. 11. Orsato, Renato J. (2006). Competitive environmental strategies: When does it pay to be green? California Management Review, 48 (2), 127-143. 3
  • 4. Articles/Papers from the BCW Book to be reviewed in this course: 1. David Teece. Profiting from Technological Innovation: Implementations for Integration (p.32) 2. Alan Fusfeld. How to Put Technology into Corporate Planning (p.62) 3. Prahalad & Hamel. The Core Competence of the Corporation (p.102) 4. Michael Porter. What Is Strategy? (p.113) 5. Maidique & Hays. The Art of High-Technology Management (p.130) 6. George White. Management Criteria for Effective Innovation (p.172) 7. Abernathy & Utterback. Patterns of Industrial Innovation (p.202) 8. Clayton Christensen. Exploring the Limits of the Technology S-Curve Part I (p.208) 9. Clayton Christensen. Exploring the Limits of the Technology S-Curve Part II (p.227) 10. Christensen & Bower. Customer Power, Strategic Investment, and Failure of Leading Firms (p.245) 11. Christensen, Verlinden & Westerman. Disruption, Disintegration and the Dissipation of Differentiability (p.278) 12. Geoffery Moore. Crossing the Chasm — and Beyond (p.362) 13. Brian Arthur. Competing Technologies: An Overview (p.368) 14. Meza & Burgelman. Finding the Balance: Intellectual Property in Digital Edge (p.398) 15. Thomke & Nimgade. Note on New Drug Development in the United States (p.410) 16. Elting Morison. Gunfire at Sea: A Case Study of Innovation (p.431) 17. Henderson & Clark. Architectural Innovation: Reconfiguration of Existing Product Technologies and the Failure of Existing Firms (p.441) 18. Burgelman & Grove. Strategic Dissonance (p.478) 19. Burgelman. Interorganizational Ecology of Strategy Making and Organizational Adaptation (p.511) 20. Christensen & Overdorf . Meeting the Challenge of Disruptive Change (p.541) 21. Hamel & Prahalad. Strategic Intent (p.550) 22. Burgelman. Strategy as Vector and the Inertia of Co-evolutionary Lock-in (p.562) 23. Bro Uttal. The Lab that Ran Away from Xerox (p.671) 24. Burgelman & Sayles. Transforming Invention to Innovation: the Conceptualization Stage (p.682) 25. Christensen & Chesbrough. Technology Markets, Technology Organizations, and Appropriating the Returns from Research (p.690) 26. Cohen, Keller & Streeter. Transfer of Technology from Research to Development (p.708) 27. Cohen & Levinthal. Absorptive Capacity: A New Perspective on Learning and Innovation (p.716) 28. Henry Chesbrough. Making Sense of Corporate Venture Capital (p.773) 29. Thomke & Nimgade. Note on Lead User Research (p.794) 30. McGrath & MacMillan. Discovery-Driven Planning (p.838) 4
  • 5. 31. Geoffery Moore. Living on the Fault Line (p.846) 32. Burgelman. Managing the Internal Corporate Venturing Process: Some Recommendations (p.915) 33. Tushman & O'Reilly. Ambidextrous Organizations: Managing Evolutionary and Revolutionary Change (p.925) 34. H. Riggs. Communication between Engineering and Production: A Critical Factor (p.970) 35. Maidique & Zirger. The New Product Learning Cycle (p.977) 36. Clark & Wheelwright. Organizing and Leading 'Heavyweight' Development Teams (p.1012) 37. Clark & Fujimoto. The Power of Product Integrity (p.1023) 38. Wheelwright and Clark. Creating Project Plans to Focus Product Development (p.1051) 39. Wheelwright & Sasser. The New Product Development Map (p.1089) 40. Wheelwright & Clark. Acclerating the Design-Build-Test Cycle for Product Development (p.1098) 41. David Garvin. Building a Learning Organization (p.1162) 42. Burgelman & Doz. The Power of Strategic Integration (p.1174) 5
  • 6. Road Map: DMGT 850 - Innovation and Sustainable Development ► Learning Sequence Themes Outcomes Part I: Emerging issues and - Context and significance of Innovation and sustainability management the sustainability movement Sustainability in perspectives ► and its implications for innovation management. Business Part II: Landscape of Innovation - Concept digests of key Literature ► ideas and authors Mapping Innovation Landscape of - Concept digests of key and Sustainability Sustainability Literature ► ideas and authors Literature Technology and Innovation - Frameworks interpreted & Part III: Opportunity ► shared w/class Exploration of Key Life Cycle Thinking - Frameworks interpreted & Frameworks – for Sustainability ► shared w/class building a class Sustainability Value - Frameworks interpreted & knowledge base Propositions ► shared w/class Innovation Strategy & - Frameworks interpreted & Management ► shared w/class Part IV: Application of a Life Cycle - Portfolio of life cycles with Applications of Assessment to a product sustainability needs in an Strategy – building a or service ► enterprise. Application of a Sector .- Portfolio of sustainability portfolio of potential Analysis for opportunity- opportunities in a business sustainability finding ► sector management Application of Alternative - Portfolio of enterprise-level solutions Business Model for innovative strategies for sustainability strategy ► sustainable development Part V: Review of course ► - Integration of course Review, Assessment knowledge base learning, key concepts, and frameworks & Reflection Assessment of learning: - demonstrate mastery of comprehensive exam ► subject matter Reflections on future - gain a strategic and approaches to ► philosophical outlook on sustainability management sustainability management Course Requirements: 6
  • 7. The instructor expects the following from each student: 1. All students are expected to participate actively in on-line class discussions and also take part regularly (at least every other day) in various study group activities, review of conference postings, and assignment postings. 2. All assignments must be submitted in the assignment folder and also posted in the designated conference area (for sharing with all class members) by the date stated in the schedule. If students are unable to fulfill expectations for any particular assignment, they should seek approval in advance from the instructor. Basic Premise for Assignments in this Course: Mintzberg's recent paper “Developing theory about the development of theory" suggests that (1) Knowledge is a main source of innovation for socio-economic development; (2) Management knowledge is created by integrating existing disciplinary concepts into interdisciplinary frameworks; and (3) Management theories explain relationships that can be interpreted in operational circumstances. In this course, we will draw from the wisdom of many management gurus who have articulated concepts and espoused theories. Since we live in a dynamic world where change is the only constant and sustainability is becoming a challenge for operating an enterprise, a solid grasp on concepts of how to employ innovative management frameworks is deemed essential for meeting those challenges. As doctoral students, you are motivated by your own intellectual curiosity about the ideas, concepts and issues in this seminar. The assignments for this course are not seen simply as tasks to be completed, but are designed to help you develop your own conceptual frameworks to better understand sustainability through innovative management. In this course, we will focus on learning concepts from the literature, lessons from cases, and will practice these concepts in application papers to demonstrate an understanding of the contextual nuances of those concepts. Our intention is to move the class through a growth path from theoretical foundations to innovative sustainability management strategies. These assignments include: Assignment 1 - Concept digests from Sustainability literature Assignment 2 - Concept digests from Innovation literature Assignment 3 - Life Cycle Assessment Assignment 4 – Sustainability Sector Analysis Assignment 5 - Sustainability Business Model Guidance for Concept Digests: The “concept digests” you prepare are not annotated bibliographies but rather extractions of major ideas/concepts related to a specific area of innovation and sustainability management. Concept digests combine both narrative and graphic formats to explain the subject matter to your fellow class members in our learning community. You are expected to independently learn additional concepts beyond those covered in the class. [Sample format posted on our class web site.] Guidance for Life Cycle Assessment: In this assignment, you will select a major product or service and analyze its life cycle from “cradle to grave.” Drawing upon knowledge learned earlier in this course, each stage of the product or service’s creation, growth, development, consumption, and disposition will be described and its 7
  • 8. sustainability consequences mapped out. Technology, marketplace, and environmental influences that affect each life cycle stage should be identified and explained. Early in the course, students will propose specific products or services to analyze, and the instructor will approve topic choices. The format for this paper will be posted on the course web site, and papers should be about 8-10 single- spaced pages, plus graphics as needed. For a virtual presentation, up to 5 PowerPoint Slides presenting the main ideas must accompany each paper. Guidance for Sustainability Sector Analysis: In this assignment, you will explore a major business sector to discover and evaluate sustainability opportunities present in market failures that may be manifested in environmental degradation, inefficient production processes, un-met product re-use, or excess waste streams. Your analysis should identify typical and chronic problems associated with the sector along with public and private sector opportunities for improving sustainability. Early in the course, students will propose specific companies or businesses to analyze, and the instructor will approve topic choices. The format for this paper will be posted on the course web site, and papers should be about 8-10 single-spaced pages, plus graphics as needed. For a virtual presentation, up to 5 PowerPoint Slides presenting the main ideas must accompany each paper. Guidance for Sustainability Business Model: In this assignment, you will analyze an existing enterprise and its current business model. Based on your understanding of innovation opportunities and sustainability value propositions, you will propose an alternative business model along with likely sustainability opportunities and consequences, including costs and benefits. Early in the course, students will propose specific companies or businesses to analyze, and the instructor will approve topic choices. The format for this paper will be posted on the course web site, and papers should be about 8-10 single-spaced pages, plus graphics as needed. For a virtual presentation, up to 5 PowerPoint Slides presenting the main ideas must accompany each paper. Grading: The final course grade will be determined as follows: Assignment 1: Sustainability Concept Digest 10% Assignment 2: Innovation Concept Digest 10% Assignment 3: Life Cycle Assessment 10% Assignment 4: Sustainability Sector Analysis 10% Assignment 5: Sustainability Business Model 10% Participation Contribution 10% Comprehensive Examination 40% Total 100% Graduate School Grading Guidelines: According to the Graduate School's grading policy, the following symbols are used: A (90-100) = excellent B (80-89) = good C (70-79) = passing F (69 or below) = failure The grade of "B" represents the benchmark for the Graduate School. It indicates that the student has demonstrated competency in the subject matter of the course, e.g., has fulfilled all course 8
  • 9. requirements on time, has a clear grasp of the full range of course materials and concepts, and is able to present and apply these materials and concepts in clear, well-reasoned, well-organized, and grammatically correct responses, whether written or oral. Only students who fully meet this standard and, in addition, demonstrate exceptional comprehension and application of the course subject matter earn a grade of "A". Students who do not meet the benchmark standard of competency fall within the "C" range or lower. They, in effect, have not met graduate level standards. Where this failure is substantial, they can earn an "F". Policy on Academic Integrity and Plagiarism: Academic integrity is central to the learning and teaching process. Students are expected to conduct themselves in a manner that will contribute to the maintenance of academic integrity by making all reasonable efforts to prevent the occurrence of academic dishonesty. Academic dishonesty includes, but is not limited to, obtaining or giving aid on an examination, having unauthorized prior knowledge of an examination, doing work for another student, and plagiarism of all types. Plagiarism is the intentional or unintentional presentation of another person’s idea or product as one’s own. Plagiarism includes, but is not limited to, the following: copying verbatim all or part of another’s written work; using phrases, charts, figures, illustrations, or mathematical or scientific solutions without citing the source; paraphrasing ideas, conclusions, or research without citing the source; and using all or part of a literary plot, poem, film, musical score, or other artistic product without attributing the work to its creator. Students can avoid unintentional plagiarism by following carefully accepted scholarly practices. Notes taken for papers and research projects should accurately record sources to material to be cited, quoted, paraphrased, or summarized, and papers should acknowledge these sources. The penalties for plagiarism include a zero or a grade of “F” on the work in question, a grade of “F” in the course, suspension with a file letter, suspension with a transcript notation, or expulsion. Students are not permitted to submit an assignment or paper that already has been submitted for another course at UMUC or any other institution, even if it is entirely their own work. This includes cutting and pasting portions of previous papers or other written assignments. The penalties will be the same as those listed above for plagiarism. Course Evaluations: Feedback on each graduate course and instructor is important to the university, your professor, and to all students. UMUC has the responsibility to assess the effectiveness of classroom instruction, and each student has the responsibility to provide accurate and timely feedback through completion of the course evaluation form. This is a shared obligation for us all. It is therefore important that you complete the evaluation form for each course. This should be viewed as an additional course and program requirement. 9
  • 10. Technical Assistance and Webtycho Support: Understanding and navigating through WebTycho is critical to successfully completing this course. All students are encouraged to complete UMUC’s Orientation to Distance Education and WebTycho Tour at http://www.umuc.edu/distance/de_orien. The online WebTycho Help Desk is accessible directly in the classroom. In addition, WebTycho Support is available 24 hours a day, 7 days a week, at 1-800-807-4862 or webtychosupport(at)umuc.edu. Library Support: UMUC's department of Information and Library Services (www.umuc.edu/library/) provides round- the-clock chat and e-mail reference services. Librarians are available to take you through the actual steps of searching for information: logging in to a database, entering search terms, and retrieving articles. UMUC's Library Databases and E-Journals website is at www.umuc.edu/library/database. A guide to using UMUC's library databases is available at http://www.umuc.edu/library/database/articles.shtml. 10
  • 11. Course Schedule for DMGT 850 Week # Session Dates Themes, Readings, Assignments and Due Dates 1 Sustainability Management: Issues and Perspectives Sept 10 - 16 Assigned readings and issue scanning to establish significance of sustainability and its domain; posted issues, opinions, studies, influential forces, etc. 2 Landscape of Innovation Literature Sept 17 - 23 Individual students assigned sub-topics to search literature for key classic and contemporary works; Concept Digests – DUE Sept 23 3 Landscape of Sustainability Literature Sept 24 - 30 Individual students assigned sub-topics to search literature for key classic and contemporary works; Concept digests – DUE Sept 30 4 Technology and Innovation Opportunity Oct 1 - 7 Individual students assigned one key concept/theory, with on-going conference discussion managed by that student. 5 Life Cycle Thinking for Sustainability Oct 8 - 14 Individual students assigned one key concept/theory, with on-going conference discussion managed by that student. 6 Sustainability Life Cycle Assessment - DUE Oct 21 Oct 15 – 21 Students prepare and virtually present a life cycle analysis. Oct 19-20 Recap of Sustainability Life Cycle case presentations; guest speakers In-Residence TBD; Review all literature; evaluate concept digests; map domains of Class Session technology, innovation, and sustainability; settle remaining assignment at UMUC details; Review requirements for Comprehensive Examination. 7 Sustainability Value Propositions Oct 22 - 28 Individual students assigned one key concept/theory, with on-going conference discussion managed by that student. 8 Oct 29 - Nov 4 Sustainability Sector Analysis - DUE Nov 4 Students prepare and virtually present a sector analysis of market failures that represents sustainability problems and opportunities. 9 Nov 5 - 11 Integrating Innovation and Strategy for Sustainability Individual students assigned one key concept/theory, with on-going conference discussion managed by that student. 10 Nov 12 - 17 Sustainability Business Models - DUE Nov 17 Students prepare and virtually present innovative approaches to sustainability. 11 Nov 18 - 25 Review of Course Elements: Discussion of concepts and frameworks covered in sessions 1-5, 7, and 9 in preparation for comp. exam; 12 Nov 26 – Dec 2 Comprehensive Examination – assessment of learning; DUE Dec 2 (format TBD). 13 Dec 3 - 9 Reflections on Comprehensive Exam; Guided discussion on the significance of Sustainability for future management strategies. 11