Mack Institute Thought LeadershipPrograms, Research, and Collaboration

Saikat Chaudhuri

Overview

New Research Initiatives

Collaborative Innovation Program

University-Wide Resources

Measuring Innovation

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Current Corporate Partners

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Mack Institute for Innovation Management

Programs and Opportunities

Visibility

Learning

Business-Critical Examination

Collaborative Innovation Program

Emerging Technology Workshops

Sirius Radio 111 Guest

Appearances

Bi-Annual Industry

ConferencesMack Talks

Focused Theme

Workshops

Partner Roundtable

Events

Speaking Opportunities

Case Competitions

Vehicle & Mobility

Innovation

Access to UPenn

Resources

Access to PhD

Community

Broad Impact Across Firm Customized Access

Thought Leadership: New Whitepaper Series

Navigating Digital Disruption: How to Thrive Through Innovation Management

The Essential Blockchain Road Map: A Smart User’s Guide to Implementing and Scaling

Mack Institute for Innovation Management

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Sample Projects with Corporate Partners

Sample Project Topics:• Digitizing Telcos: Developing a Strategic

Plan for a 5 -10 Year Horizon

• Consumer Behavior Analysis in the IoTSpace (Smart Home, AR, eHealth)

• Digital Product Strategy in Insurance

• Biomedical Big Data: Strategic Implications for Oncology

• Structure, Governance and Decision-making Processes in Telecom Corporate Venturing

• Manufacturing Footprint Optimization: Regional Source of Supply

CPG6%

Automotive6%

Tech13%

Pharmaceutical25%

Telecom19%

Financial Services

31%

2017-2018 Industry Sectors

University-Wide Resources

Wharton Innovation Doctoral Symposium

New Executive Guest Lecture Series

New Partnerships with Student Groups

Expanded Case Challenges and Competitions

• Citi Ventures Fintech Challenge

• Amazon HQ2 Philadelphia

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Fall 2016: Connected Strategies Conference

Spring 2017: Scenario Planning

Workshop

Fall 2017: Diabetes Care

Roundtable

Fall 2017: Global

Leadership Conference

Conference Speakers, Workshops, Roundtables

Impact Example: Merck

Spring: 2016 Biomedical Big Data Strategies

Fall 2016: HCV Treatment

Optimization

Fall 2016: Measuring and

Boosting Productivity

Spring 2017: Future State of Diabetes Care

Spring 2017: Connected

Strategies for Digital Healthcare

Fall 2017: Vaccine

Marketing Strategy

Collaborative Innovation Projects: MBA & Grad Student Teams

Measuring Innovation

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Measuring Innovation

Why have metrics for innovation

• Provide strategic direction by signaling shifts in priorities and guide resource (re)allocations

• Assess effectiveness of innovation spending

• Hold managers accountable and link incentives to reach targets

• Diagnose and improve innovation performance

Common flaws with measurement

• Encouraging incremental innovation vs. disruptive innovation

• Having too few vs. too many metrics

• Measuring what is available vs. what is needed

• Giving too much emphasis to output measures vs. process effectiveness

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Some Quantifiable MetricsInputs

1. R&D spending (percent of sales)

2. Human resources devoted to innovation

3. Pipeline of ideas/concepts

4. Number of R&D projects in active development

5. Percent of ideas/concepts from outside the firm

6. Ratio of ideas from inside/outside

Process effectiveness

1. Development activities

− Percent hitting gates on time− Percent meeting quality − Guidelines

2. Patenting activity

− Number filed− Number commercialized− Percent covered by patents

3. Budget vs. actual

− Time− Cost/investment

4. Average time to market

− Number of new products launched

5. Percent of projects that are major improvements

Performance outcomes

1. Percent of sales from new products in past N years

2. Success ratio (percentage of meeting financial goals)

3. Revenue growth

4. Return on investment in innovation (ROIC)

5. Percent of profits from new customers (or occasions)

6. Percent of profits from new categories

7. Average time to break-even/cash

8. Customer satisfaction

9. Profit growth due to new products/services

10. Percent of profits from new products in a given period

11. NPV of portfolio

12. Potential of portfolio to meet growth targets

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Innovation IndexDiscussion Questions:

• Innovation metrics currently in use

• Effectiveness of current measures on− Returns− Growth − Market impact

• Effective innovation metrics (to be used)

Appendix

A Central Node in a Knowledge Network

We act as the hub of a global network linking scholars, industry leaders, and students.

Corporate partners propose a pressing strategic challenge; the Mack Institute facilitates student teams to work on the project over the course of an entire semester

• Impact: Corporate partners collaborate with students to solve current challenges facing mid- to large-size established global firms, while exposing students to real-life challenges and management theories

• Participants: Penn graduate students working in parallel with corporate partners, guided by Wharton faculty

• Student teams (4‐5 members) are chosen specifically to meet the needs of the projects

Collaborative Innovation Program – MGMT 892

MGMT 892 Fall 2018: Team PersonnelTEAM PERSONNELEach project has a team selected and assigned by the Mack Institute. Team membership is fixed and is assigned based on a combination of project interest and personal skills.

• Team Leader: This member’s responsibility is to manage the process the team chooses to follow. A collaborative approach is encouraged to choosing the process, setting milestones, organizing team meetings or calls, and following up on agreed upon tasks and objectives.

• Team Scribe: It is critical that team decisions be documented along with the key discussion items. The designation of one person to be the formal scribe assures the team of consistently reliable documentation.

• Team Liaison: One individual needs to accept the primary responsibility of being the single point of contact for the team with the partner company. This responsibility includes communicating with the partner, questions, setting meetings or conference calls.

• Analyst: Although analysis is everyone’s job, one individual needs to be able to capture and characterize the presentation of information in graphs, charts, or to coordinate this activity

EXAMPLE TEAM PERSONNEL: Spring 2018 Telematics Project• Team Leader:

• ’18 Wharton MBA Candidate• VP, Singapore FinTech Consortium• Corporate Development Associate, AIG

• Team Scribe: • ‘17 Wharton MBA Candidate • Product Manager, NVIDIA• Principal Engineer, TRW

• Team Liaison: • ‘18 Wharton MBA Candidate• Product Manager, Cisco• Investment Banking Analyst, UBS

• Analyst: • ‘18 Wharton MBA Candidate• Product Manager, Uber• Investment Banking Associate, Deutsche

Bank

Highly competitive: 9 Projects, 36 student slots, 100 applicants per semester

Cross-disciplinary: Wharton, School of Medicine, Integrated Product Design, Engineering

• Confidentiality and non-disclosure agreements

• Peer and partner evaluations

• “No drop” policy

• Dedicated Wharton staff liaison to faculty and corporate partners

FULL ADMINISTRATIVE SUPPORT

• Problem framing & project mgmt.

• Corp. strategy, M&A, alliance management

• Incumbency, disruptive innovation

• Org. design

• Real options, discovery driven planning

• Design thinking

• Penn-wide resource access

CONCEPTS, TOOLS AND RESOURCES

• Decision-making under uncertainty

• Team management, esp. in globally distributed environments

• Boundaries & rules of engagement

• Learning goals (personal and team)

TEAM DYNAMICS AND SKILL DEVELOPMENT

• Introductory meeting

• Scope of work and deliverable definition

• Mid-point presentation

• Final presentation and executive summary

CORPORATE PARTNER INTERACTION

Course Design: Content and Structure

MGMT 892 Fall Semester: Important Dates

Late July: Project descriptions sent to students for team

recruitment

Week of August 7: Teams selected

August 28: Classes begin

September 4: Team kick-off meeting set

& NDAs signed

• Project scope document

• Bi-weekly meetings with team

August -September

• Mid-point presentation

• Pivot point if necessary

Mid-October• Final presentation• Deliverables via

slide deck and executive summary

Mid-December

MGMT 892 Example Project: Sensor TechnologyPROJECT TITLE: VALUE CREATION & COMPETITIVE LANDSCAPE FOR INDUSTRIAL IoT MARKET ENTRY

ORGANIZATIONAL BACKGROUND:Company C is a $14 billion global technology leader and a 75 year-old B2B company with strong engineering and manufacturing competencies. The company primarily designs and manufactures sensor technology used in nearly every industry.

OBJECTIVES AND DELIVERABLES:• Major scenarios for the company to enter the industrial internet of things marketplace in the

abovementioned business area• Scenarios where the IIoT markets could disrupt current business• Recommended strategies for entering these emerging markets• Is there an overall strategy for the company to create value by standardizing and aggregating sensor

data from multiple sources and systems?

PROJECT SUMMARY:The goal of this project is to investigate the value creation process and competitive landscape across the value chain for IoT with a primary focus on industries where Company C operates the most: industrial, sensors, medical, and energy. The value chain should cover major aspects of the industrial IoT space including cloud platform providers (analytics, storage, etc.), hardware manufacturers, system integrators, consulting services, embedded software providers, and component manufacturers. The scenario analysis should target a time span of five years.

Team Research and Design

Iteration

Project Scoping

Challenge Identified

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MGMT 892 Example Project: Sensor TechnologyPROJECT TITLE: VALUE CREATION & COMPETITIVE LANDSCAPE FOR INDUSTRIAL IoT MARKET ENTRY

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MGMT 892 Example Project: Healthcare CPG PROJECT TITLE: ALTERNATIVE APPROACHES TO GROWING MATURE SUB-BRAND PORTFOLIO

ORGANIZATIONAL BACKGROUND:Company C operates a broad portfolio of brands in the personal and home care categories with most brands within these portfolios active in the market for well over 50 years. These brands have largely been maintained and grown via both geographic expansion and by drawing in new customers.

OBJECTIVES AND DELIVERABLES:• Identification of alternate ways to grow a mature brand versus the existing line extension strategy• Identification of ways to validate these new growth models• Growth models may incorporate any number of marketing lever—new products, communication, business

models, etc. but should be executed within the current investment strategy.

PROJECT SUMMARY:Consumer expansion has been achieved via a sub-brand and line extension strategy. Sub-brands are used to target new consumer groups across functional, emotional, and/or social needs. This sub-brand strategy is now reducing in effectiveness as each line extension is largely cannibalizing the base. Therefore, there is a need to establish new growth models for the mature brands in the portfolio.

Team Research and Design

Iteration

Project Scoping

Challenge Identified

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MGMT 892 Example Project: Healthcare CPG PROJECT TITLE: ALTERNATIVE APPROACHES TO GROWING MATURE SUB-BRAND PORTFOLIO

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MGMT 892 Example Project: TelecomPROJECT TITLE: CORPORATE VENTURING, KEY OPERATIONAL CONSIDERATIONS

ORGANIZATIONAL BACKGROUND:Company C is a global telecom firm whose infrastructure includes sub-sea, terrestrial communications, data centers, fixed line, and wireless services. The organization reaches more than 240 countries, 99.7% of the world’s GDP, and 24% of global internet traffic.

OBJECTIVES AND DELIVERABLES:• Corporate venture fund structure, governance, and decision making processes

• Outline of investment committee constituents / key roles to fill• Roles and responsibilities of key roles in the fund• Investment committee decision-making process

• Performance tracking: what are best practices for CVC metrics? Strategic vs. financial considerations?

• Scenario planning framework on managing the investments• What would be the best approach for rapid prototyping as startups expect a quick turnaround from

initial discussions to PoC?

PROJECT SUMMARY:The Company has explored corporate venturing strategy considerations in the following areas and is looking to build out a venturing – partnership model. A full outline corporate venture fund structure, governance, and decision-making processes; performance tracking indicators (strategic vs. financial); and began broad scenario planning frameworks on managing investments will be crucial for this stage of the company’s growth. How can a case be built for a strong CVC organization and what are current best practices for other CVC arms? What is the proper organizational framework?

Team Research and Design

Iteration

Project Scoping

Challenge Identified

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MGMT 892 Example Project: TelecomPROJECT TITLE: CORPORATE VENTURING, KEY OPERATIONAL CONSIDERATIONS

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MGMT 892 Example Project: Pharma PROJECT TITLE: CROWDSOURCING FOR COMPETITIVE EDGE

ORGANIZATIONAL BACKGROUND:Company B embraces research and science, driving innovation in consumer health, medical devices and diagnostics, biologics, and pharmaceuticals.

OBJECTIVES AND DELIVERABLES:• In this project, we seek to obtain an in-depth understanding on how other industries have been leveraging

social media and crowdsourcing to drive Innovation. • The team will also to make a set of recommendations for the company to leverage social media and

crowdsourcing to achieve a competitive advantage toward driving innovation. • The recommendations should be based on research of experiences of other firms and your assessment of

Company B’s current innovation models and competitive positioning. The recommendations may range from strategy to specific tools and processes.

PROJECT SUMMARY:Working in an extremely competitive industry, any competitive edge that a company can invent or enhance provides great strategic advantages. To date, some companies have attempted to leverage Crowd Sourcing to innovate on their brands. This project seeks to explore the current landscape of tools or processes that companies have successfully implemented, and seek to bring these processes in-house to enable Company B to innovate ahead of competitors. Team Research

and Design Iteration

Project Scoping

Challenge Identified

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AOM BPS/TIM/ENT PDW, The Collaborative Innovation Program at Wharton

MGMT 892 Example Project: Pharma PROJECT TITLE: CROWDSOURCING FOR COMPETITIVE EDGE

ORGANIZATIONAL BACKGROUND:Company B embraces research and science, driving innovation in consumer health, medical devices and diagnostics, biologics, and pharmaceuticals.

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