KIEI-903: Corporate Innovation and New Ventures. Syllabus. Fall Professors Dean DeBiase & Paul Earle TA - J.J. Malfettone

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1 KIEI-903: Corporate Innovation and New Ventures Syllabus Fall 2017 Professors Dean DeBiase & Paul Earle TA - J.J. Malfettone

2 Overview Instructors: Dean DeBiase Chairman, Reboot Partners Senior Fellow, Kellogg Innovation Network Fellow, National Association of Corporate Directors Adjunct Lecturer of Innovation and Entrepreneurship, Kellogg Mobile: Paul Earle Principal, Paul Earle & Co. Adjunct Lecturer of Innovation & Entrepreneurship, Kellogg Kellogg 6Q Mobile: TA: J.J. Malfettone Associate Director Innovation & Enterprise Solutions, KPMG Senior KIEI Advisor Kellogg School of Management 14 Mobile: Office Hours: We have an open door policy. If you have questions or want to run concepts by us, us to set up a conference call at your convenience. We try to accommodate all requests. About the Course With classes conducted at top corporations, incubators, accelerators and startups, KIEI- 903 explores the emerging practice of corporate entrepreneurship, providing students exclusive access into the real innovation and growth challenges organizations are 2

3 facing today. Students are immersed in a traveling experiential learning curriculum, through interactive sessions with top business and civic leaders, and are encouraged to tap into the entrepreneurial movement. Students are steeped in experience design and design thinking, venture development, and startup partnering as methods to drive growth for large enterprises. Classes are held onsite at KIEI 903 Partner companies. Past partners have included Visa, Whirlpool, United Airlines, Hyatt, E&J Gallo, Exelon, Chase, CME, Motorola, McDonald's, PepsiCo, Target, Grainger, Accenture, KPMG, P&G, Northern Trust, United Healthcare, Salesforce, Steelcase, GE Ventures, Leo Burnett, AKTA, The Chicago Cubs, TechNexus, Lettuce Entertain You, U.S. Cellular, 1871, MATTER, Beam Suntory, PepsiCo, and Mars Wrigley, amongst others. Typically, the lecturers and hosts of these sessions are senior to the organization officer level and above. Past hosts have included Steve Easterbrook (then Global CMO and now CEO of McDonald s), Tom O Toole (then Global CMO of United Airlines), Maryam Banakarim (Global CMO of Hyatt), Subho Moulik (Chief Innovation Officer of Whirlpool), Lara Balazs (NA SVP of Marketing, Visa), and Stephanie Gallo (principal and VP/Marketing of E&J Gallo). Teams will work collaboratively to develop plans for new products, services and experiences, from the initial ideation to final concept phases of the innovation process, culminating in a final presentation to the lead partner s executive team. Fall 2017 Lead Partner Company Students will work collaboratively to develop plans for new products, services and experiences for a lead partner, which will be a top corporation in the consumer goods space. The identity of the Fall 2017 lead partner will be confirmed and announced a few weeks prior to the class beginning. Innovation Lab/Experiential Format Student teams work with the lead partner throughout the quarter, and are tasked with the creation of innovative ideas around their growth challenge areas, which are presented to the class by the company s executives. Teams are further tasked with targeting, developing, evaluating, vetting and refining their top idea through a concept development process, culminating in a final project deliverable and formal presentation to company s leadership team. Previous KIEI-903 lead partners have included Visa, E&J Gallo, Whirlpool, United Airlines, McDonald s Corporation, United Healthcare, Beam Suntory, Hyatt, and Procter & Gamble. Students will interface with executives tackling problems in real time. The Final Project requires that teams conceive a strategically-driven new product, service, or venture and develop a preliminary business proposition for it. Strategically-driven connotes an endeavor that is materially new for the company, and has the potential for a substantial 3

4 impact on that company s business (if not financially, then in other meaningful ways). Consider Procter & Gamble as a hypothetical example. A line extension for a new flavor of CREST would not be considered a strategically-driven innovation; a plan to enter the oral care provider business by rolling up top local dental practices, however, would be considered strategically driven. This definition can be situational, depending on the lab partner with whom we are working. Teams will be briefed by a senior executive from the Lead Partner at the outset, then begin work on developing a solution to the problem(s) the executive articulates, aided by frameworks and experiences from the class, and students own creativity and ingenuity. The final output will not be a business plan in the traditional sense, but rather a business proposition designed to compel senior management to invest in exploring the opportunity further (this is known as a pitch in some circles). This is a format that is most common in the real world of corporate innovation. The final concept/plan documents will be provided to the lead partner, who will be assigned full rights to the work product and any related intellectual property. You will also be expected to enter into a simple Non-Disclosure Agreement with the Lead Partner. In addition to the primary team project, students are also exposed to corporate and entrepreneurial innovation processes at a range of multinational headquarters and corporate innovation centers, as well as startups, incubators and accelerators, where students interact with management, through thematic discussions, debates and workshops, about the current market opportunities and growth challenges they are pursuing. The actual agenda of this fall s participating host companies and dates are in development and will be issued shortly before the class begins (as one might imagine, arranging this road show is logistically challenging; typically the moving parts don t finally settle until close to the end of the process). Prerequisites & Required Reading There are no traditional prerequisites, but a good working knowledge of the Business Model Canvas, Value Prop Canvas and Lean Startup techniques are very helpful and will allow you to hit the ground running. Therefore, KIEI 462 is highly recommended. Additionally, lessons and techniques from the following books will be discussed throughout the quarter, therefore they are highly suggested reading. Those who immerse themselves in these books generally do better than others in the class, and get more out of the class. These books are designed to be digested relatively quickly and easily, and as such we ask students to familiarize themselves with the content by week 3. Then the books can be handy reference points for the remainder of the class. Ten Types of Innovation: The Disciple of Building Breakthroughs by Larry Keeley 4

5 Value Proposition Design: How to Create Products and Services Customers Wants by Alexander Osterwalder Expectations & Grading Each team is assigned a subject matter expert (SME) by the lead partner organization and is provided access to independent mentor volunteers from the Chicago executive, entrepreneurial or civic community. It is expected that students work closely with these individuals, while of course being respectful of their time (remember, they are volunteers). Whether through your mentors or us, ask for feedback EARLY and OFTEN. And be proactive about it! Those who do spin their wheels less and end up with better concepts. There are no written case studies to read for KIEI903; our site visits to our organizational partners provide our examples and case study content. Students are expected to thoroughly research each partner company ahead of the session and arrive prepared and CONTRIBUTE in class discussions. Nearly all great ideas are built in an open, iterative and collaborative environment that is the environment we will create in this class, and preparation is required. We will provide loose guidelines and practices for ideation, concept development, and prototyping but it is up to YOU to dive deep, research, ask questions, and make parallels between weekly host companies and your projects. There is no secret formula here, and remember innovation is NOT a linear path. Breakthrough innovations also are a team effort. You will experience this over the course of the class, and more importantly, on the job if you choose to pursue a career in this field. Due to this, grading is allocated on a group basis, so quickly becoming a high effective team is critical. In the corporate world, if a group is dysfunctional then all members suffer. But fear not, if your group demonstrates rigor and good effort in the following areas then you will fare well. 80% of your grade will be based on your final deliverable: the innovation idea/proposition and your ability to effectively pitch it. Evaluative criteria are below. The remaining 20% will be based on timely completion of your weekly updates, team dynamics, effectiveness, and performance, and project management effectiveness, deployment decisions of your R&D budget (provided by lead partner), and other factors. 1. Idea to Concept Process Rigor: Your team s ability to take your offering from ideation to concept. Are you using the tools provided in the readings & lectures, leveraging your mentor, and using the many resources available to you? 2. Problem-Solution Fit: Your team s ability to identify a unique offering with a value proposition that addresses real pains/gains. Did the team dig deep enough 5

6 to gain market/customer insights? Did you perform enough test work to support your assumptions? Put simply, is it a good idea? 3. Final Pitch Effectiveness: Your team s ability to clearly present and defend your concept, process, and findings. Essentially, are you convincing enough? In the real world, being able to effectively persuade and energize people internally around your idea is a hugely important criterion of success. Regarding #1 above, we may have group check-ins and feedback sessions occasionally during class time, but time is a scarce resource in this class. Due to this, we stress the importance of reaching out to us before, after, or outside of class if you have questions, are stuck, or feel you are not receiving adequate feedback. As we highlight in the office hours section above, we try to accommodate as best we can. Other Rules of Engagement You are expected to attend every class, be on time and stay for the entire session (come early stay late if you can). If you have an unavoidable conflict and cannot attend class, please us 24 hours in advance. More importantly, understand that the purpose of this class is to get out of the building and we are doing so by visiting different companies across downtown Chicago (We are rarely in Wieboldt Hall). If this poses a logistical/scheduling problem for you, then you may not want to enroll. We expect you to dress properly; use business casual as your guide. Remember, we are guests of the companies we are visiting, and we must be respectful and mindful of the fact that we will be in a professional office setting, not at the beach or at the gym. This means no hats, no flip flops, no tee shirts, no ratty shorts please. Use your best judgment. We allow the use of laptops and ipads in the classroom. The only exception to this is when we have a guest speaker in these cases please minimize hardware utilization. Some classes with be photographed or filmed. This course adheres to the guidelines established in the Kellogg Honor Code and the Kellogg Code of Classroom Etiquette. 6

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