COURSE
NUMBER: MBA290K.1
COURSE
TITLE: Innovation in Services and Business Models
UNITS
OF CREDIT: 2
INSTRUCTOR:
Henry Chesbrough
E-MAIL
ADDRESS: chesbrou@haas.berkeley.edu
CLASS
WEB PAGE LOCATION: https://bspace.berkeley.edu/portal
MEETING
DAY(S)/TIME: Monday 4:00 - 6:00PM
PREREQUISITE(S):
None.
CLASS
FORMAT: The class will have both cases and lectures
REQUIRED
READINGS: We will use a course reader, plus articles from the web.
BASIS
FOR FINAL GRADE: Mixture of class participation, final paper, possibly a
smaller midterm project.
ABSTRACT
OF COURSE'S CONTENT AND OBJECTIVES:
This
is a new course, not only within Haas and the MOT Program, but within academic
campuses around the world. This course is an experiment to address a burning
issue in business today: most of the economic activity in developed economies
is services-based. Yet most of our knowledge about innovation is based upon
products, not services. A recent survey by the National Academies of
Engineering found that “the academic research enterprise has not focused on or
been organized to meet the needs of service businesses”.
This
is not an abstract concern for Berkeley students. More than 60% of the
graduating class from Haas took jobs in knowledge-intensive, service
businesses. Looking further on in one’s career, more than 63% of the INC. 500
companies in are services businesses. Service businesses represent the future
for the vast majority of Haas and MOT students.
Our
course will examine services innovation. It will also focus upon the business
model in creating and managing innovation in services businesses. We will also
consider how product-based businesses can - or cannot - transition to
service-based businesses. During the course, we will have outside visitors from
companies involved in services innovation. Here are some of the themes for the
course:
1)
Innovation in services is not the same process as innovation in products.
Services are intangible. They often are consumed as they are delivered. In
fact, the customer often co-creates the service experience with the supplier.
2)
Technology can enable new models of services businesses. Information is both
the key input and the key output for many services businesses. Little wonder
that more than 70% of information technology sold in the United States is
purchased by service firms. The selection, deployment and management of
technology in services is thus a critical element for
business success.
3)
Business models are a key enabler and a key differentiator for services
businesses. We will be quite precise about defining a business model, and
explore a variety of methods for articulating, designing, and managing business
models in services. Technologies are emerging to help model business processes
in useful ways. They can enable a richer exploration of alternative business
models that might differentiate the business from competitors.
4)
Standards, architectures, and platforms are essential tools to create leverage
and scalability for services businesses. When services businesses are largely
people-based, their ability to grow depends on the ability to hire and retain
sufficiently talented people. If, however, a firm can incorporate its knowledge
so that others can build upon it via standards, architectures and platforms,
the services business can grow beyond the constraints of its internal
personnel.
BIOGRAPHICAL
SKETCH: A popular Haas and MOT professor, Henry Chesbrough
is the author of Open Innovation: The New Imperative for Creating and Profiting
from Technology, published in 2003 by Harvard Business School Press, which was
named "One of the Best Business Books of 2003" by Strategy &
Business Magazine. Since publishing this landmark work, Chesbrough
has written two additional books: Open Business Models (HBS Press, 2006), which
received BusinessWeek’s award of one of the 10 best books of the year, and Open
Services Innovation (Jossey Bass, 2011), which
extends open innovation into services. He received his Ph.D. from Haas. Before
joining academia, he worked for ten years as a senior executive at Quantum
Corporation in the disk drive industry. Chesbrough's
work examines the management of innovation, with particular attention to new
models of industrial R&D, business model innovation, technology spin-offs,
licensing in and licensing out technology, corporate entrepreneurship, and
corporate venture capital. His academic research has been published in Research
Policy, Industrial and Corporate Change, Business History Review, and the
Journal of Evolutionary Economics. He has also published managerial articles in
the Harvard Business Review, California Management Review, and Sloan Management
Review.