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Connecting the Dots between Innovation and
Leadership
Published: October 04, 2006 in Knowledge@Wharton
At a recent Wharton roundtable discussion on leadership and
innovation, Wharton management professor Michael Useem,
event moderator, initiated discussion by posing a general
question: How are leadership and innovation linked? "How
exactly do we put those two together? How do we lead in a way
that generates innovation?" he asked, describing the synergy as
"a kind of high-octane fuel we ought to get as much of as we
can."

'Smart Growth': Innovating to Meet the Needs of the
Market without Feeding the Beast of Complexity
Published: October 25, 2006 in Knowledge@Wharton

I. Innovation vs. Proliferation: Getting to the Heart of the
Customer
What is the next big idea or market opportunity? The question
plagues CEOs of all growth-hungry companies as they race to scoop
their competition with a product or service that no one has thought of
before. But how do companies know what products and services their
customers want -- and will be willing to pay for -- next?
Henry Ford famously said, "If I had asked my customers what they
wanted, they'd have asked for a faster horse." In other words, the road
to true innovation is rarely illuminated by customers telling you what
to do next; they may often not know what they want next.

Will a New Theory Help Firms to Manage in a 'Flat'
World?
Published: October 25, 2006 in Knowledge@Wharton
The take-off point for the innovations that we now call
the "new economy" is generally traced to 1985, when
Michael Porter developed his value chain analysis. But
modern economics and the root of the theory of the
firm began long before that, in 1776, with the
publication of Adam Smith's treatise, The Wealth of
Nations. Since then, of course, technological, cultural
and other changes have shaken the theories
underpinning economic activity.

Henning Kagermann- Balancing Change and Stability in the Evolution of SAP's Enterprise Software Platform Our Server

Published: October 04, 2006 in Knowledge@Wharton
When Henning Kagermann became the sole CEO of SAP in
2003, a role he had previously shared with company co-founder Hasso Plattner, he faced a number of challenges, including an economic slowdown that hurt SAP's growth. Kagermann moved quickly to put in place a program to reshape the company's product offerings and adjust its market focus to position it for the next generation of software. But because major corporations use SAP's software to run nearly every aspect of their business, change at SAP requires a delicate balance between progress and stability.

Supply Chain Enterprise Systems- The Silver Bullet- Our Server

Published: September 06, 2006 in Knowledge@Wharton
Contemporary supply chains stretch around the globe -- a complicated matrix that reflects the easing of international trade barriers, an increase in global trade, and dramatic growth in business outsourcing and offshoring to low-cost suppliers. Needless to say, the trends toward globalization have significantly increased the number of players involved in bringing a product to a consumer. "If you were looking down on planet Earth, you would see a lot of ships moving from China to India, from Europe to the United States, along with a huge set of domestic activity with truck and rail and also internationally with air and cargo to support the sheer volume of international trade," said Paul R Kleindorfer, professor of operations and information management at Wharton.
But, Kleindorfer acknowledges, there is something "going on simultaneously with this huge set of activity that you may not see." Namely, an equally dramatic, "absolute revolution" in information, communication and management technologies that support supply chain functions and are known as supply chain enterprise systems. "The fabric beneath this increased trade is a fantastic ability to manage large volumes of data."

Oracle's Acquisition Binge- Trying to Cover All Its (Data) Bases Our Server

Published: March 08, 2006 in Knowledge@Wharton
For Oracle, the past few months have been one big shopping spree. On January 31, 2006, the enterprise software giant purchased longtime rival Siebel Systems, the leading provider of
customer relationship management software. On February 14, it acquired Sleepycat, an "open source" database maker; two days later it bought HotSip AB, a Swedish telecommunications
software company. Meanwhile, press reports suggest two more acquisitions will occur in the near future.
For many companies, Oracle's month would have been a year's worth of merger and acquisition activity, but for the Redwood Shores, Calif.-based firm, it's the norm. Oracle CEO Larry Ellison made a big splash in 2004 by announcing he would consolidate the software industry, starting with archrival
PeopleSoft, and he has been true to his word. Since Oracle closed the PeopleSoft deal in January 2005, it has averaged more than an acquisition a month.
The company is viewed by analysts as the leading provider of database software, which allows
customers to track everything from financial data to customer profiles. It has also expanded into
enterprise applications that run human resources, accounting and supply chain management functions.
While this software may not get the press of Apple's iTunes or Microsoft's latest operating system,
applications from Oracle and its main rival SAP serve as the nervous system of corporate America.

Death in the Middle: Why Consumers Seek Value at the Top and Bottom of Markets
"In the U.S. and around the world, the consumer markets are bifurcating into two fast-growing pools of spending," writes author Michael J. Silverstein in his new book, Treasure Hunt: Inside the Mind of the New Consumer. "At the high end, consumers are trading up, paying a premium for high-quality, emotionally rich, high-margin products and services. At the low end, consumers are relentlessly trading down, spending as little as possible to buy basic, low-cost goods and services." Between both piles lies a vast range of mediocre, medium-range products that Silverstein claims is doomed to decline. What implications does this have for companies and their brands? David Reibstein, a Wharton professor of marketing, discussed that question with Silverstein, a senior vice president of The Boston Consulting Group.

Podcast: George Day: Keeping an Eye on Distant Events that Can Make or Break Your Company

In Wharton marketing professor George Day's world, the term "peripheral vision" means the ability of companies to detect, interpret and act on distant signals, whether a rumor heard about a new rival, a newspaper article about a new medical device, or the popularity of a blog started by a dissatisfied customer. Day and co-author Paul Schoemaker have written a book entitled, appropriately enough, Peripheral Vision: Detecting the Weak Signals That Will Make or Break Your Company, designed to help firms avoid being blindsided by unexpected events. According to the authors, only 20% of companies have succeeded in developing peripheral vision well enough to stay ahead of their competitors. Day talked with Knowledge@Wharton's Mukul Pandya and Robbie Shell about his book.

Podcast: John Paul MacDuffie on Car Trouble: From Higher Gas Prices to Hybrids, and More..

Almost anyone who has been following the auto industry, especially in the U.S., will agree that lately it has had a bumpy ride. For one thing, the difficulties of GM and Ford have filled the headlines for several months now, and there has been lots of speculation about how severe these problems are. In addition, the auto parts maker Delphi, which was spun off from GM in 1999, is now in the midst of bankruptcy proceedings and actively negotiating with both the United Auto Workers union and GM. Yet another challenge is growing global competition: Virtually all the Japanese brands are showing an increase in market share in the U.S. And finally, questions continue to persist about advances in technology, especially as they concern the new hybrid models. John Paul MacDuffie, a professor of management at Wharton and co-director of the International Motor Vehicle Program, spoke about these issues with Knowledge@Wharton's Mukul Pandya and Robbie Shell.

Auto Industry Consolidation: Is There a New Model on the Horizon?

The turmoil and uncertainty among auto manufacturers and their suppliers have left people wondering when a shakeout can be expected. Two experts who follow the auto sector say consolidation will take place among suppliers to a much greater extent than among carmakers, which may not experience mergers and acquisitions at all in the near term but will be engaged in ever-shifting strategic alliances and joint ventures.

In particular, some private-equity firms are hungrily eyeing auto supply companies for investment opportunities, according to Wharton management professor John Paul MacDuffie and Christopher Benko, director of the PricewaterhouseCoopers Automotive Institute in Detroit.

The 2006 Gadget Parade: A New Era of Convergence and Convenience
Apple's iPod again ruled beneath the Christmas tree in 2005 after the latest model of the iconic music player was outfitted with a video screen. And as the new year begins, a long-anticipated era of convergence in consumer technology products draws closer, according to Wharton faculty and technology analysts. Meanwhile, cell phones that play video, e-mail delivered to handheld computers, telephone conversations over the PC -- and hundreds of other glimpses into Christmas future -- were on display at the annual Consumer Electronics Show in Las Vegas last week where the stepped-up presence of digital giants, including Microsoft, Google, Yahoo and Intel, signaled their ever-increasing interest in expanding from the office into consumers' living rooms.
Oracle's Acquisition Binge: Trying to Cover All Its (Data) Bases
For Oracle, the past few months have been one big shopping spree. On January 31, the enterprise software giant purchased longtime rival Siebel Systems, the leading provider of customer relationship management software. On February 14, it acquired Sleepycat, an "open source" database maker; two days later it bought HotSip AB, a Swedish telecommunications software provider. For many companies, Oracle's month would have been a year's worth of merger and acquisition activity, but for the Redwood Shores, Calif.-based firm, it's the norm. Oracle CEO Larry Ellison made a big splash in 2004 by announcing he would consolidate the software industry, starting with archrival PeopleSoft, and he has been true to his word. The real test, however, lies ahead: Can Oracle attract new customers?

Delhi in Davos: How India Built its Brand at the World Economic Forum
The emergence of China and India figured prominently at the World Economic Forum annual meeting in Davos last month. In India's case, however, another factor also was at work. Determined not to be overshadowed, Indian business and government leaders spent some two years and $4 million planning an elaborate branding campaign to ensure that the "India story" got prominent play and did not get lost amid the chatter at Davos. How does a country go about building its brand though such PR campaigns? And how can outcomes be measured to see if the campaign worked? Wharton professors who were at Davos and Indian business and government leaders say that while India's campaign at the summit was impressive, the country will now have to walk the talk on infrastructure investments and policy reforms if it wants to retain its credibility.

Beware of Dissatisfied Consumers: They Like to Blab
When consumers have a bad shopping experience, they are likely to spread the word, not to the store manager or salesperson, but to friends, family and colleagues. Overall, if 100 people have a bad experience, a retailer stands to lose between 32 and 36 current or potential customers. These are some of the conclusions of The Retail Customer Dissatisfaction Study 2006, conducted by The Jay H. Baker Retailing Initiative at Wharton and The Verde Group, a Toronto consulting firm, in the weeks before and after Christmas 2005. The biggest source of consumer dissatisfaction? Parking lots.

Leadership & Change	Executive Education	Strategic Management
Human Resources	Innovation	Managing Technology
Finance & Investment	Marketing	Insurance & Pensions
Health Economics	Real Estate	Law & Public Policy
Business Ethics	Operation Management

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Chapters & Articles

Access Knowledge@Wharton articles and read the latest chapters from Wharton School Publishing books in this section. Additionally, when you are a member, you can share your thoughts and comments with other readers, making your reading experience interactive. Visit this section frequently for the business information you need.

Current Research Papers

This page lists, alphabetically by faculty author, research papers which are "working papers," that is, the research is still in progress. Many of these papers have been submitted to refereed journals for feedback, but the authors also appreciate comments from peers and other readers. These papers will usually be published in a research journal or as a chapter in a book within a year or two (and are then removed from this list). Linked papers are in Adobe's PDF format ( ) unless otherwise indicated. Use search to find a specific topic in such key decision areas.

Wharton Centers & Initiative

Fast Fact:
In 1921 Wharton established the first research center at a business school (Industrial Research Unit), creating a new role for business schools as incubators for scholarly research that impacts business policy and practice.

Management and Leadership

Center for Leadership and Change Management
Michael Useem, Director

Increasingly, organizations worldwide are confronting turbulent markets, demanding shareholders, and discerning customers; and many firms are restructuring to meet these challenges. Their success depends largely on the quality of leadership that exists at all levels of management. Dedicated to building a basic and practical understanding of leadership and change, the Center explores and communicates effective strategies for restructuring.

SEI Center for Advanced Studies in Management
Jerry Wind, Director

The SEI Center seeks to identify and understand trends in management practice and their impact and to design and implement research programs to meet the future needs of management. The results will provide both educational material for faculty and guidelines for corporate action. The Center conducts a series of workshops, conferences, and lectures for the exchange of knowledge and information to gain a better understanding of how successful enterprises will be organized and managed in the 21st century and what these corporations should do today to prepare themselves.

Human Resources

Center for Human Resources
Peter Cappelli, Director

Since 1921, the Center for Human Resources (formerly the Industrial Research Unit) has been bringing academics and practitioners together, fostering interaction through multidisciplinary research, regular meetings, and frequent information bulletins. Today, the Center continues to explore the strategic role of human resource management in areas like labor relations, increased productivity, public policy, work and family issues, and workforce education. Wharton's Council on Employee Relations is the Center's program for management/employee issues.

Council on Employee Relations (formerly Labor Relations Council)
Peter Cappelli, Chairman

Finance

Financial Institutions Center
Franklin Allen, Richard J. Herring, and Carol A. Leisenring, Co-Directors

Technology, regulatory changes, and globalization are revolutionizing the financial services industry; and the Financial Institutions Center is dedicated to addressing the many important issues that result. Through coursework and communications designed for academics, financial practitioners, and policy makers, the Center helps industry members and students of financial services keep pace with the changes that affect their lives and their work.

Rodney L. White Center for Financial Research
Marshall E. Blume, Director

Through a wide range of financial research, a working paper series, a reprint series, and a highly respected annual seminar, the White Center has established itself as an important source of information to the financial community. Members have the opportunity to participate in groundbreaking financial research, and the center provides a number of research grants to Wharton faculty members each year.

Weiss Center for International Financial Research
Richard Marston, Director

Information is the key to evaluating risks and seizing opportunities in our global financial marketplace. The Weiss Center is the world's first research center devoted exclusively to an understanding of international finance. By sponsoring research on markets, financial instruments, and global economics, the center enhances the understanding of this complex subject for both current and future financial managers.

Retailing

Jay H. Baker Retailing Initiative
Stephen J. Hoch, Director

The Jay H. Baker Retailing Initiative links retail theory with practice by forming a partnership among world-class researchers, educators, students, and the global leaders of today's retail industry.

Service and Operations

Fishman-Davidson Center for Service and Operations Management
Morris A. Cohen and Marshall L. Fisher, Co-Directors

Through research and teaching, the Fishman-Davidson Center strives to understand the role of the service sector, the largest component of the economy in all developed countries. The Center's varied programs include a partnership with industry for sponsored research, a faculty-management forum and information exchange, and a variety of workshops that address an emerging paradigm: It is the services that physical goods provide, and not the goods themselves, that add value to the consumer.

See a sample of short articles that appeared in Knowledge@Wharton recently.

Technology

Wharton e-Business Initiative (WeBI)
Raffi Amit and Tom Gerrity, Directors

WeBI is a partnership between business leaders, Wharton faculty, and students to generate and disseminate new knowledge about e-business through research, academic programs, and strategic corporate partnerships. WeBI funds and conducts interdisciplinary research projects to address critical, emerging issues in e-business.

William and Phyllis Mack Center for Technological Innovation
George S. Day and Harbir Singh, Co-Directors

Bringing together leaders from business, government, and labor, the Mack Center provides a forum for probing critical issues, discussing research, and planning future study. As the umbrella organization for all of Wharton's technology management initiatives, the Center will support the research and publishing activities of Wharton faculty members, create an endowed professorship, and support a student-run conference. In the field of technological change, the Center sponsors the Emerging Technologies Management Research Program.

PLEASE NOTE: THE MACK CENTER HAS A NEW WEBSITE AT: http://mackcenter.wharton.upenn.edu EFFECTIVE APRIL 1, 2006

Emerging Technologies Management Research Program
Michael S. Tomcyzk, Managing Director

George Day
Geoffrey T. Boisi Professor, Professor of Marketing
Co-Director of the Mack Center for Technological Innovation

"Customer Relationships Go Digital" with Katrina Hubbard, to be revised for Sloan Management Review (PDF)

"Shakeouts in Digital Markets" with Adam Fein, to be revised for California Management Review (PDF)

"Diagnosing the Customer Relating Capability" with C. Van den Bulte, to be submitted to Journal of Marketing

"Winning the Competition for Customer Relationships" to be submitted to Sloan Management Review (PDF)

"Propensity to Answer Surveys on the Internet," with Katrina Hubbard and Elaine Zannuto, to be submitted to the Journal of Marketing Research

"Marketing and the CEOs Growth Imperative" to be submitted to Marketing Management (PDF)

"Wharton Marketing's 'Marketing Challenge'" (March 2005)

Executive Education

Program Faculty, Competitive Marketing Strategy

Program Faculty, Essentials of Marketing

Program Faculty, Pricing Strategies: Measuring, Capturing and Retaining Value

Program Faculty, Advanced Management Process

Marketing Metrics: Linking Marketing to Financial Consequences

Critical Thinking: Real World, Real Time Decisions

Executive Negotiation Workshop: Bargaining for Advantage

Wharton marketing professors

Peter Fader Frances and Pei-Yuan Chia Professor, Professor of Marketing	George Day Geoffrey T. Boisi Professor, Professor of Marketing	Americus Reed Arthur Anderson Term Assistant Professor of Marketing	David Reibstein William Stewart Woodside Professor; Professor of Marketing
Patti Williams, James G. Campbell Jr. Memorial Term Assistant Professor of Marketing	Wes Hutchinson Stephen J. Heyman Professor, Professor of Marketing	Dawn Iacobucci John J. Pomerantz Professor in Marketing	Barbara E. Kahn Dorothy Silberberg Professor of Marketing, Vice Dean and Director of Wharton Undergraduate Division
Z. John Zhang Associate Professor of Marketing	Jagmohan S. Raju Joseph J. Aresty Professor, Professor of Marketing, Executive Director Wharton Co-Sponsorship of Indian School of Business	Stephen J. Hoch Patty and Jay H. Baker Professor, Professor of Marketing, Marketing Department Chairperson and Director Baker Retailing Initiative	Lisa Bolton Assistant Professor of Marketing
David R. Bell Associate Professor of Marketing	Eric Bradlow The K.P. Chao Professor, Professor of Marketing and Statistics	Jehoshua Eliashberg Sebastian S. Kresge Professor of Marketing and Professor of Operations and Information Management	David C. Schmittlein Ira A. Lipman Professor, Professor of Marketing, and Deputy Dean, Wharton School

Wharton management professors

John Paul MacDuffie Associate Professor of Management	Michael Useem, The William and Jacalyn Egan Professor; Professor of Management

More from Dr. George Dayin Knowledge@Wharton

Why Some Companies Succeed at CRM (While Many Fail) - Full text of related paper Published: January 15, 2003 (Audio & Text)

Which Customers are Worth Keeping and Which Ones Aren't? Managerial Uses of CLV Published: July 30, 2003 (Audio & Text)

Getting Close to the Customer: Quantitative vs. Qualitative Approaches Published: May 05, 2004 (Audio & Text)

Surviving the Shakeout: Where B2B Exchanges Went Wrong Published: December 04, 2002

Making Customer Relationship Management Work Published: July 04, 2001 in (Audio & Text)

Staying Close, but Not Too Close, to the Customer Published: December 10, 1999 Our Server

New Economy or Old Economy, a Shakeout is a Shakeout Published: March 19, 2001 Our Server

Understanding Today's Global Marketplace Published: September 01, 1999 Our Server

New Strategies for Success Published: September 17, 1999 Our Server

Winning and Retaining Customer Loyalty Published: September 29, 1999 Our Server

The Wharton School, University of Pennsylvania

Management Department
Daniel A. Levinthal, Chairperson
2000 Steinberg Hall-Dietrich Hall

Professors
Amit, Raphael (Raffi)
Cappelli, Peter
Gerrity, Thomas P.
Guillén, Mauro
Hamilton, William F.
House, Robert
Kimberly, John R.
Klein, Katherine
Kobrin, Stephen J.
Levinthal, Daniel A.
MacMillan, Ian C.
Meyer, Marshall W.
Pennings, Johannes M.
Singh, Harbir
Singh, Jitendra V.
Useem, Michael
Weigelt, Keith
Winter, Sidney G.

Associate Professors
Barsade, Sigal
Henisz, Witold
Hrebiniak, Lawrence G.
MacDuffie, John Paul
O'Sullivan, Mary A.
Raff, Daniel
Rosenkopf, Lori
Siggelkow, Nicolaj
Thomas, Louis A.
Yakubovich, Valery

Assistant Professors
Benner, Mary J.
Berry, Heather
Campbell, Benjamin
Chaudhuri, Saikat
Conyon, Martin J.
Dushnitsky, Gary
Hsu, David
Kaplan, Sarah
McDermott, Gerald A.
Mueller, Jennifer S.
Rothbard, Nancy P.
Wulf, Julie

Finance Department
Michael R. Gibbons, Chairperson
2300 Steinberg Hall-Dietrich Hall

Marketing Department
Robert Meyer, Chairperson
700 Jon M. Huntsman Hall

Professors
Armstrong, J. Scott
Bradlow, Eric T.
Day, George S.
Eliashberg, Jehoshua
Fader, Peter S.
Hoch, Stephen J.
Hutchinson, John Wesley
Iacobucci, Dawn
Kahn, Barbara E.
Lodish, Leonard M.
Meyer, Robert
Raju, Jagmohan S.
Reibstein, David J.
Schmittlein, David C.
Wind, Yoram (Jerry)

Associate Professors
Bell, David R.
Van den Bulte, Christophe
Zhang, Z. John
Williams, Patricia
Zauberman, Gal

Assistant Professors
Bolton, Lisa E.
Drèze, Xavier
Iyengar, Raghuram
Reed II, Americus
Small, Deborah

Operations and Information Management Department
Karl T. Ulrich, Chairperson
500 Jon M. Huntsman Hall

Professors
Cachon, Gerard P.
Clemons, Eric K.
Cohen, Morris A.
Fisher, Marshall L.
Guignard-Spielberg, Monique
Harker, Patrick T.
Hershey, John C.
Kimbrough, Steven O.
Kunreuther, Howard
Ulrich, Karl T.
Zheng, Yu-Sheng

Associate Professors
Croson, Rachel T.A.
Gans, Noah F.
Hitt, Lorin M.
Schweitzer, Maurice E.
Terwiesch, Christian

Assistant Professors
Anand, Krishnan S.
Hill, Shawndra
Hosanagar, Kartik
Lee, Chris P.
Lee, Thomas Y.
Netessine, Serguei
Padmanabhan, Balaji
Simonsohn, Uri
Tucker, Anita L.
Veeraraghavan, Senthil

Statistics Department
Abba M. Krieger, Chairperson
400 Jon M. Huntsman Hall

Teaching Marketing Strategy

A site for teachers to share course designs and materials for the basic Marketing Strategy course has been created by Dr. Day. This website is designed to help instructors tap into a much broader base of experience and content than they could access through their own informal networks. It contains:

A course design and a suggested syllabus, based on George S. Day's book, The Market Driven Organization (available from amazon.com);

Lecture outlines, PowerPoint slides and suggestions for videotapes;

Suggested group projects and exercises to aid the learning process and keep the course abreast of the latest developments in e-Business;

A message board that will serve as a forum for faculty to exchange teaching tips and materials; and

Links to related websites.

Lectures

These are based on the lectures in the course outline (Adobe Acrobat PDF format or Microsoft Word format). Not all lectures are listed below, but for these sessions, a brief description and links to the presentations are provided. The web pages (html files) will allow you to view the presentations; if you wish to use the presentation slides for any purpose, you can download the PowerPoint files (in Internet Explorer, right click on the link and select "save target as"; in Netscape, right click on the link and select "save link as").

Session 1: Introduction to the Course

Although all Professor Day's students have had a 26-session introductory marketing course (and a required competitive strategy course) in the first year, he finds it useful to review with them:

That there is a distinction between marketing as an organizational orientation, general management responsibility and implementation
That segmentation is central to marketing thinking and analysis (hence the Marriott Hotels example)
That strategy is about choices, and
That there is a distinctive marketing decision process that can be used to analyze many of the cases in the course.

Slides for Session 1: Perspectives on Marketing

HTML page

PowerPoint

If time permits, the story of SWATCH is a good basis for a discussion of the range of choices that underpin a successful strategy.

Session 3: Becoming Market Driven

This session introduces the core concepts in the course: specifically that a market orientation entails culture, configuration and capabilities. Since the students have been assigned Chapters 1, 2, and 3 in preparation for this session, the session is used mainly to:

introduce a number of examples
demonstrate that it is the way the elements fit together that matters most, and
discuss the market sensing capability in some depth

To avoid having this session be a reprise of the assigned reading, briefly introduce the session with the first two slides of the PowerPoint presentation.

Slides for Session 3: Becoming Market Driven

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PowerPoint

Following those two slides, you can show a 12-minute video of Intuit which vividly demonstrates how the market sensing capability is embedded within the other elements. While this example is briefly mentioned on pages 10 and 11 of the text it really comes to life on the videotape and gives them a reference point of an exemplar of market orientation. The simple question, "Why is Intuit a market-driven organization?" elicits an active discussion.

Note: This videotape is part of The People, Service, Success series titles "Listening to Customer," and is available from Harvard Business School Management Productions at 1-800-248-1878. It is expensive, but worth it.

Session 5: Strategies for Achieving Advantage

This session is based on the Source-Position-Performance framework (which is more fully developed in Chapter 6 of the book, Market Driven Strategy, and the role of culture and capabilities as sources of advantage. The assigned reading of Chapter 4 of the text brings in the notion of organizing around processes – which students may or may not be familiar with from their first-year courses.

Because this is the first session of the section on "Positioning for Advantage," most of the time should be devoted to identifying superior customer value propositions using an adaptation of the value disciples of Treacey and Wiersema in their book, The Discipline of Market Leaders. You should also introduce value mapping as a tool to help students better understand the underlying concept of customer value. (A good source on value mapping is Chapter 4 of Roger Best, Market-Based Management.)

Slides for Session 5: Strategies for Achieving Advantage

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PowerPoint

Session 7: Gaining New Advantage

This session is a continuation of Session 5 that follows the application of those concepts to the easyJet case in Session 6. At the end of this case, the questions of the vulnerability of an advantage and gaining new advantages are raised.

The discussion of sustainability expands the usual discussion of causal ambiguity, imitability, credible retaliation and durability, to look specifically at the disruptive effects of the internet. Professor Day's preference is to introduce the internet throughout the course rather than treat it as a stand-alone topic.

The last segment of this lecture/discussion pulls together a variety of ways to identify new value strategies that draws on Kim and Mauborgne (HBR, January/February 1997) and Costas Markides (Sloan Management Review, Spring 1999)

Slides for Session 7: Gaining New Advantage

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PowerPoint

Session 11: Competing for Relationships

The session mainly builds on the content of Chapter 7 of the text. The attached presentation offers a flexible platform to approach the topic of customer relationship management from the standpoint of:

the behavior bases of relationships and the question of the benefits to the parties
strategic choices along the relationship spectrum (and the allied topic of countervailing forces that tend to thwart efforts to build relationships)
one-to-one marketing (based on the personalization potential)
the market relating capability (note that the model used in this presentation differs in several respects from the one in the chapter; notably that configuration has an expanded role).

Slides for Session 11: Competing for Relationships

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PowerPoint

Session 13: Managing Brand Equity

This topic is not explicitly covered in the text but fits naturally in the section on "Relating to Customers." The treatment of the topic is quite conventional and can be substantially elaborated if the instructor wishes. You should emphasize that brand equity is built on the continuity of a relationship, and that a strong brand has ownership of a meaningful value proposition in the customer's mind.

The Heineken N.V. case (HBS publishing 9-596-015) is used purely as an illustrative case to point out some of the issues on managing global brands. For that reason, a slide has been included on the "Features of Global Brands," that can be used as a template to discuss the case.

Lastly, a brief mini module on Valuing Brands is provided, largely to point out how difficult it is to arrive at a defensible value.

This lecture should set up the discussion of the Black & Decker case, which is a compelling illustration of how to build a strong brand. The videotape that can be ordered with the case at a nominal cost makes it clear that all the marketing elements must come together to reinforce the message and differentiate the company from the competition.

Slides for Session 13: Managing Brand Equity

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PowerPoint

Session 15: Value Migration and Channels

This is the introductory session to the course module on “Reaching Markets” It should be used to focus on the strategies of intermediaries (retailers and wholesaler-distributors) because they are at the center of the war over who will prevail in a net-enabled trading environment.

The scope of this session depends on what is covered in first year marketing. It is useful to remind students that (1) channel functions cannot be eliminated or avoided, and (2) intermediaries are firstly purchasing agents for their customers – which creates conflicting objectives.

The second theme of this session is the concept of value migration which is generally the flow of economic value from one outmoded business design to others that are better equipped to meet emerging customer needs. In the channel context, this means that power and value tend to migrate to the channel and end buyers.

These two theses need to be well understood before the student can fully appreciate the issues raised by online markets and exchanges, and especially the Free Markets case in the next session.

Slides for Session 15: Value Migration and Channels

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PowerPoint

Session 17: Online Exchanges

For the session on online exchanges, it is best to bring in an outside speaker from a dot.com such as VerticalNet to talk about this evolving concept.

Session 19: Strategic Perspectives on New Product Development

This is the first session in a short module on “Growing by Innovating.” It’s purpose is to elaborate on the need to continually offer new sources of customer value in order to grow the business. The vehicle for directly this search is the new product strategy which is a component of the business strategy that lays out where to look for new opportunities that leverage the capabilities. In this respect, it builds on the earlier session on positioning strategies. This discussion also explicitly introduces risk into the decision process.

Slides for Session 19: Strategic Perspectives on New Product Development

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PowerPoint

Session 22: Reshaping the Organization

The course should be concluded by addressing the question, “how would you build a market-driven organization; one that has a superior ability to anticipate and implement effective strategies?” The content for this session is Chapters 10 and 12. Don’t spend a lot of time on the six necessary conditions or steps in the change process, because they are covered fully in the last chapter. There is usually a lot of interest in the triggers to the change (what would motivate a firm to undertake such an arduous process?) and the concept of hybrid organizations. Here is where the concept of organizing around processes and the changing role of marketing can be brought in. The implications for the role of product and brand managers are significant. All this sets up the discussion of the Sony Europa case, which brings the formal part of the course to a close. The remaining sessions are devoted to group presentations and a brief summation of the concepts of the course with some speculations about the future.

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