VHL 3664 Innovation and new business models
In recent years we have seen entire industries disappear (video rental, photo shops) and we are facing high unemployment in professions where robots / software can take over (banks, real estate agents, financial brokers, and many others). At the same time, new industries and new opportunities are being created, for example through e-commerce and sharing economy (Uber, AirBnB).
Companies must innovate - they must create new products, services, and platforms. But even more important is developing new business models to generate sustainable earnings.
The first half of the course is mainly about innovation strategy: How should companies go about creating value for new ideas? We provide an insight into how companies can use both physical and digital channels to achieve their strategic goals, and how they can build a culture of innovation. We also address the important theme of value-based management.
The second part of the course is about developing new business models that will put innovations in the market. A business model describes the background to how a company creates, delivers and retrieves value. This value can be economical or non-economic (for example, environmental).
A business model is a perspective for commercializing an existing or new value proposition. A value proposition is a presentation of the content that makes customers pay for what the companies offer.
In this course, we look at three key perspectives in business models. The perspectives each have their own strengths and complement each other. During the course, the students will develop specific business models for companies, and be able to use these to develop viable and innovative strategies.
During the course the student will learn how to design a concrete innovation strategy. This applies to both large and small companies, and in a number of industries. The strategy must specify how a company should behave in both its physical and digital channels. An innovation strategy must be implemented. The best way to do this is to create a business model.
The course consists of classroom teaching, where active participation from the students is planned in solving assignments and presenting solutions.
The student will acquire the knowledge needed to create an innovation strategy and build a business model for this strategy. The student must be able to choose the best business models to achieve the strategic goals. This means that the student should have acquired knowledge of the following topics:
- What an innovation strategy is and why it is important for a company
- Understand why innovations need to solve problems that customers have
- Get insight into how multi-channel / omnichannel strategy can help achieve those strategic goals.
- Know how a company can create a culture of innovation and the importance of value-based management
- Get acquainted with the three key business models: Business Model Canvas (Osterwalder); Ten types of innovation (Kelley); and the Service Innovation Triangle (Furseth)
- Be able to evaluate which business model is best suited to solve various specific problems in the trade and service industry.
Be able to develop an innovation strategy that answers innovation and commercialization questions for the company's challenges today and tomorrow. This must explicitly take into account the company's strategies for both its physical and digital channels. The student should also be able to take the initiative to carry out a strategy process in a business, and be able to carry out a group work in developing a business model.
Become aware of the many opportunities that lie within an innovation strategy and understand the importance of developing today's business models. Students should also be able to reflect on when an innovation needs a new business model, and be able to include ethical and environmental (non-economic) perspectives in this.
- Key models in innovation strategy
- National and international examples of corporate innovation strategy
- Understand how the fields of innovation (creating value from new ideas) and business models can reinforce each other
- The importance of multi-channel strategy in the future
- The importance of understanding what value-based leadership is and how to create a culture of innovation
- How and why some of the world's largest companies (such as Kodak) went down in a few years
- Three key perspectives in business models and how business models can translate an innovation strategy into practice.
Most of the course consists of classroom teaching. Some guest lectures and cases from Harvard Business School are used.
Note: It is planned that the teaching takes place as 6-hour days, to ensure a mix of theory and practice for all topics.
The tasks are to reproduce, and then apply central models from the syllabus to specific companies, and arrive at a strategy recommendation. Each answer should be at min. 2 and max 3 pages. The tasks can be solved individually or in groups of up to 2 people. It is important to note the work requirements:
- Two out of three work requirements must be approved to pass the exam.
- You must answer all the tasks in the work requirements using your own words.
- You should mainly use the syllabus as a professional source for the answer. The use of any other professional sources should occur to a very small extent (max ¼ of the text).
- When using syllabus or other sources, accurate references should be provided. These must include page numbers in what you are referring to, and when referring to PPT presentations from the course, refer to Document Number and slide number.
- Don't use sources like Wikipedia, videos on Youtube, blogs or the like. instead of the syllabus, as they are usually inaccurate or inaccurate.
The work requirements are assessed Approved / Not approved.
Higher Education Entrance Qualification
Due to the Covid-19 pandemic, there may be deviations in teaching and learning activities as well as exams, compared with what is described in this course description.
The student is expected to have knowledge equivalent to the basic course in strategy: STR3605, or equivalent, and have insights into consumer behavior.
|Mandatory coursework||Courseworks given||Courseworks required||Comment coursework|
|Mandatory||3||2||The tasks are to reproduce, and then apply central models from the syllabus to specific companies, and to suggest a strategic recommendation. Each answer should be at min. 2 and max 3 pages. The tasks can be solved individually or in groups of up to 2 people. Two (2) out of three (3) work requirements must be approved by lecturer, to be allowed to sit for final exam. Important criteria for the coursework requirements are described under the section "Teaching and learning activities".|
|Comment coursework:||The tasks are to reproduce, and then apply central models from the syllabus to specific companies, and to suggest a strategic recommendation. Each answer should be at min. 2 and max 3 pages. The tasks can be solved individually or in groups of up to 2 people. Two (2) out of three (3) work requirements must be approved by lecturer, to be allowed to sit for final exam. Important criteria for the coursework requirements are described under the section "Teaching and learning activities".|
|Exam category||Weight||Invigilation||Duration||Support materials||Grouping||Comment exam|
Form of assessment:
Internal and external examiner
Examination every semester
|Form of assessment:||Written submission|
|Support materials:|| |
|Exam code:||VHL 36641|
|Resit:||Examination every semester|
Prepare for teaching
Student's own work with learning resources
Group work / Assignments
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.