SMO 330, Winter Term 2017 Entrepreneurship 101

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University of Alberta

SMO 330, Winter Term 2017 Entrepreneurship 101

Class: Wednesday, 2:00 – 4:50pm Location: Business School Building, BUS 4 – 13

Course Website: available via ULearn (https://ulearn.ualberta.ca/) Instructor: Dr. Tim Hannigan

Office: Business School Building: 2-45 Office Hours: By appointment

Office Phone: 780-248-1190

Email: [email protected]

Required Materials:

Mullins, J. & Komisar, R. 2009 Getting to Plan B: Breaking Through to a Better Business Model. Harvard Business Review Press

SMO 330 Case Pack ($3.95/case)

• Available @ Harvard Business Press online

Recommended

Texts: Blank, S. & Dorf, B 2012 The Startup Owners Manual. K&S Ranch.

Ries, E. 2011. The Lean Startup. Crown Books.

Course Description

University students with entrepreneurial aspirations often face a significant challenge. While they may have an idea for a new business, they are unclear about the process for how to take the idea and turn it into a reality. This reflects two major issues. First, despite popular accounts of

entrepreneurship and innovation, it is not clear how to engage in this process. Second, in order to successfully implement their idea, they lack team members with a broad set of skills and expertise, and most academic institutions are setup in such a way as to make such a team impossible to find and form. This course solves both of these issues. Entrepreneurship 101 is an interdisciplinary (i.e., cross-faculty) course for students interested in entrepreneurship and innovation. This course is designed to introduce entrepreneurship as an iterative process of opportunity recognition and value creation, and will examine issues around implementation.

The class has been composed into three parts. The first part of the course is designed to introduce

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an understanding of entrepreneurship and innovation as a multi-level process. We will address what entrepreneurs do in practice and how they assemble value with networks. By using case studies of evocative entrepreneurs from the 19^th, 20^th, and 21^st centuries, we will explore how

entrepreneurship is based on some common principles. Individual entrepreneurs often have diverse backgrounds and are both tenacious and resourceful. However, this entrepreneurial mindset is not limited to one discipline or personality type. Entrepreneurial action does not occur in a vacuum and is enabled by groups, platforms and ecosystems.

The second part of the course will focus on the process of assembling resources when creating a new venture. You will learn about the iterative process of opportunity recognition and value creation in addition to developing the analytical and conceptual skills required to assess the potential for a business model. Working on a team composed of students from across different faculties, you will generate an idea, use business modeling techniques to “flesh out” that idea and define a venture opportunity that is grounded in conceptions of value.

The third part of the course will cover material around running a new venture. This includes an operating model, funding, and market strategy. We will also touch upon issues around scaling once a venture is operating.

In addition to learning about entrepreneurial practices, students in this course will learn how to develop an entrepreneurial mindset. Together, these will contribute to an understanding of how to develop an idea for a new product or service into a market reality and an investable story.

Learning Objectives

• To introduce key concepts in entrepreneurship and innovation.

• Learning about entrepreneurial action through assembly of resources and networks.

• Learn to identify, develop and evaluate potential venture opportunities.

• Develop analytical and critical thinking skills through the process of completing an opportunity assessment for launching a new product or service.

Design of Classes

The classes are designed to complement different learning styles, however, participation is of particular importance. Entrepreneurship is a dynamic subject and much of this course is based on case studies and projects. Students are expected to attend every class.

The readings for this course have been compiled in a manner that is both accessible and non discipline-specific. We have a core textbook in Mullins & Komisar (2009) for many of the readings, however most of the material has been compiled from a variety of different sources. The weekly readings have been divided into essential and recommended. In order to effectively participate in class, every student will be expected to cover at minimum the expected readings. Every effort has been made to provide PDF copies on uLearn in a way that is consistent with University of Alberta copyright rules. All of the materials are available digitally through uLearn, the University of Alberta Library, or through the Harvard Business School Press (HBSP).

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Participation

Entrepreneurship is a collaborative and interactive process. Entrepreneurs find opportunities, adapt, and improve themselves by listening and learning from others. Participating in this manner does not simply mean speaking often. Individuals who contribute positively help the class as a whole in synthesizing and moving discussions forward. Participation is also a function of involvement in group exercises in class. Low participation grades will come from using distracting technologies in class and discouraging others. To this end, your participation will be made up of two components:

(1) peer evaluation: at the end of each class, you are to email me with the names of 10 other individuals whom you felt positively contributed to the class; (2) your self-evaluation: in this same email, I ask that you provide a self-evaluation (out of 5). This is an ongoing process, and you are welcome to provide a short blurb of explanation. I will use my evaluation in conjunction with the peer evaluation and self-evaluation to assess an accurate measure.

The participation portion of the grade is 10%, spread out over the term. Participation is evaluated in a number of ways and is correlated with attendance. It is impossible to earn participation marks if a student is not in class. Participation marks can be made up through short reading summaries arranged with the instructor. Students remain responsible for submitting work due even if absent.

Students should e-mail the instructor prior to any missed class. Students remain responsible for the material covered and assignments given during an absence and are to discern this information from their peers. Attendance at all class sessions is critical to the learning process and the participation component of the course. Please come to class prepared to participate in the day’s activities. At the beginning of each class, I will hand out name cards – I expect these to be handed back at the end of each class.

Participation extends beyond the classroom and out into the real world. Edmonton’s

entrepreneurial ecosystem is growing. I encourage you each to look for opportunities to get plugged in and bring this knowledge back to the classroom. If you have attended an event or identified resources useful to your classmates, inform me, and I will try to include them in class discussion.

Guest speakers

Entrepreneurship is a dynamic and applied subject. Throughout the course we will have practicing entrepreneurs share their perspectives as guest speakers in person or via Skype.

Online Resources

I will be tweeting out additional relevant readings via my twitter account, @thannigan. I encourage you to follow me so as to access this information.

Strategyzer.com – A Business Modeling Canvas tool

Steve Blank’s Tools for Startups Website: http://steveblank.com/tools-and-blogs-for-entrepreneurs/

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Confidentiality Policy

Throughout the course, students will be exposed to proprietary information from other students, guest lecturers and faculty. All such information is to be treated as confidential. By enrolling in and taking part in this class and its associated activities, students agree not to disclose this information to any third parties without specific written permission from students, guest lecturers or faculty, as applicable. Students further agree not to utilize any such proprietary information for their own personal commercial advantage or for the commercial advantage of any third party.

In addition, students agree that any legal or consulting advice provided without direct fee and in an academic setting will not be relied upon without the enlisted opinion of an outside attorney or consultant, in each case without affiliation to the University of Alberta, School of Business.

Receipt of this policy and registration in this class is evidence that you understand this policy and will abide by it.

General Course-Related Policies

Policy about course outlines can be found in Section 23.4(2) of the University Calendar.

The University of Alberta is committed to the highest standards of academic integrity and honesty.

Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at

www.ualberta.ca/secretariat/appeals.htm) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence.

Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.

Audio or video recording of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as a part of an approved

accommodation plan. Recorded material is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the instructor.

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Evaluation

Your grade evaluation breakdown is as follows:

Individual Contribution Team Contribution Participation:

• Attendance

• In-class discussions, exercises

10%

Practical works assignments (350 words):

• 3 Practical Work assignments (each 5%)

(5% x 3) 15%

Individual assignment: Entrepreneurial

Ecosystem Mapping 10%

Group Presentation: Business Model 15%

Written Group Assignment: Business

Plan 20%

Final Exam 30%

Grading

• Participation in class (10% of your grade). For more on this, please review Participation

• Practical work assignments (3 * 5%): in weeks 2, 5, 6, you will be asked to write 350 word reflections on the readings for that week. These should be helpful for tracking your progress in the course.

• Individual project (10%), mapping out part of the Edmonton based ecosystem*

• Group Project: i) presentation on Business Model (15%), ii) write-up of Business Model as a Business Plan (20%)

• Exam (30%) – covering the main concepts of the course

* When looking to recruit participants for your individual project, you must abide by the informed consent requirements in the Ethical Guidelines for Customer Research / Development document and as listed on the following site:

http://www.reo.ualberta.ca/en/HumanResearchEthics/InformedConsentProcess.aspx

Assignment format

All written assignments are due on Tuesdays at 11:59pm the night before class. They must be turned in on time. The late policy is that assignments will lose 20% of their grade for every day that they are late. Assignments should be submitted in either PDF or Word format via uLearn, unless otherwise instructed.

All written assignments should be submitted via uLearn, and should use the following file format:

SMO_330_Winter_2017_(Assignment Name)_(LastName-FirstName) Example: SMO_330_Winter_2017_PW1_Smith-John

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Course Outline

Date Topic Readings Evaluations

Class 1:

Jan 11/17

Welcome and Introduction to

Innovation & Entrepreneurship Johnson, S. 2011 (Ch 1);

Berkun, S 2010 (Ch 5)

Practical work 1 due, Jan 17/17

Class 2:

Jan 18/17

Micro view: What entrepreneurs

do in practice Mullins & Komisar, 2009 (Ch 1); Case: Utterback, J.M. 1994.

Class 3:

Jan 25/17

Entrepreneurial Action: How Entrepreneurs use Networks to Assemble value

Uzzi & Dunlap 2005;

Case: Burton, D. &

Lawrence, K. 1998 Class 4:

Feb 1/17 Macro view: Platforms, Networks

and Ecosystems Spigel, B. 2015; Case:

Chesbrough et al. 2014

Practical work 2 due, Feb 7/17

Class 5:

Feb 8/17 Entrepreneurial Opportunities,

Value Propositions Berkun, S. 2010 (Ch 6);

Case: Sobel, D. 2008 (Ch 5,6)

Class 6:

Feb 15/17

Finding your Business Model Pt (1): Experimentation,

Measurement, Leaps of faith

Mullins & Komisar, 2009 (Ch 2,3); Osterwalder et al. 2015 (Ch 1)

Individual Assignment due:

Entrepreneurial Ecosystem Mapping, Fri Feb 17 Reading week – no class Feb 22

Class 8:

Mar 1/17

Finding your Business Model Pt (2): Iterating and Pivoting to find a Business Model

Mullins & Komisar, 2009 (Ch 4); Wilkinson, A.

2015 (Ch 4) Class 9:

Mar 8/17

Group presentations:

business models, Mar 8/17 Class 10:

Mar 15/17

Venture Survival and Operations Mullins & Komisar, 2009 (Ch 4); Wilkinson, A 2015. (Ch 6)

Practical work 3 due, Mar 21/17

Class 11:

Mar 22/17

Strategy for a new venture:

Market definition, Competitive Analysis

Baron & Shane, 2008 (Ch 9); Seelos & Mair, 2008

Class 12:

Mar 29/17

Financing a New Venture, Learning about the Edmonton Entrepreneurship Ecosystem

Mullins & Komisar, 2009 (Ch 7); Baron & Shane, 2008 (Ch 6)

Class 13:

Apr 5/17 Managing for growth: Scaling up

the operation and organization Mullins & Komisar, 2009 (Ch 8); Sutton & Rao, 2014 (Ch 2)

Class 14:

Apr 12 Final Class – review / exam

preparation Group Assignment due:

Business Plan, Apr 12/17 Final exam: 20-Apr-2017 (Thursday) @ 2:00 p.m.

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Week 1:

Jan 11 Welcome and Introduction to Innovation & Entrepreneurship Essential Reading:

• Johnson, S. 2011. Where Good Ideas Come From: The Natural History of Innovation. Riverhead Trade. Chapter 1: “Reef, City, Web: Darwin’s paradox” [PDF available on uLearn]

• Berkun, S. 2010. The Myths of Innovation (1st ed.). O'Reilly Media. Chapter 5: “The lone inventor” [PDF available on uLearn]

Recommended Reading:

• Drucker, P. 1985. “The Discipline of Innovation” Harvard Business Review. [PDF available on uLearn]

Video: “Great Barrier Reef” BBC Documentary presented by David Attenborough, Episode 1: Clip demonstrating a biological ecosystem and the symbiotic relationship between clown fish and anemones

Part 1: A multi-level view on Entrepreneurship Week 2:

Tues Jan 17 - Individual Practical Work 1 due

Jan 18 Micro view: What entrepreneurs do in practice Essential Reading:

• Mullins, J., & Komisar, R. 2009. Getting to Plan B: Breaking Through to a Better Business Model.

Harvard Business Review Press. Chapter 1: “Don’t Reinvent the Wheel, Make it better”

• Case: Utterback, J.M. 1994. “Invasion of a Stable Business by Radical Innovation: Natural Ice Industry.” [purchase from HBS Press]

• Grant, A. 2016. Originals: How Non-Conformists Move the World. Viking: New York. Chapter 1:

“Creative Destruction: The Risky Business of Going Against the Grain” [PDF available on uLearn]

Video: Clip from “How We Got to Now” BBC/PBS Series presented by Steven Johnson, Episode 5: “Cold”

Week 3:

Jan 25 Entrepreneurial Action: How Entrepreneurs use Networks to Assemble value

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Essential reading:

• Uzzi, B., & Dunlap, S. 2005. “How to Build Your Network”. Harvard Business Review, 83(12): 53–

60. [PDF available on uLearn]

• Case: Burton, D., Lawrence, K. 1998 “Jerry Sanders” [purchase from HBS Press]

• Gladwell, M (1999) “Six Degrees of Lois Weisberg” The New Yorker 01/11/1999 [PDF available on uLearn]

In class activity: Mapping out social networks using LinkedIn data

Week 4:

Feb 1 Macro view: Platforms, Networks and Ecosystems Essential Reading:

• Spigel, B. 2015. The Relational Organization of Entrepreneurial Ecosystems. Entrepreneurship theory and practice. [PDF available on uLearn]

• Case: Chesbrough, H., Sohyeong, K., & Agogino, A. 2014 "Chez Panisse: Building an Open Innovation Ecosystem." University of California, Berkeley, CMR578 [purchase from HBS Press]

Part 2: Assembling Resources for a Venture Week 5:

Tues Feb 7 - Individual Practical Work 2 due

Feb 8 Entrepreneurial Opportunities, Value Propositions Essential reading:

• Berkun, S. 2010. The Myths of Innovation (1st ed.). O'Reilly Media. Chapter 6: “Good Ideas are hard to find” [PDF available on uLearn]

• Case Discussion: The Longitude Problem and Innovation Prize, John Harrison and his Clocks;

Sobel, D. 2008. Longitude. Harper Perennial: London, UK. Chapters 5: “Powder of Sympathy”, 6:“The Prize”, [PDF available on uLearn]

• Alvarez, S. A., & Barney, J. 2007. Discovery and creation: alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1(1-2): 11–26.

Video: Clip from “How We Got to Now” BBC/PBS Series presented by Steven Johnson, Episode 2: “Time”

Week 6:

Feb 15 Finding your Business Model Pt (1): Experimentation, Measurement, Leaps of faith

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Essential reading:

Chapters 2, 3: “Guiding Your Flight Progress: The Power of Dashboards”, “Air, Food, and Water:

Your Revenue Model”

• Osterwalder, A., Pigneur, Y., Bernarda, G. & Smith, A. 2015 Value Proposition Design: How to Create Products and Services Customers Want. Wiley. Chapter 1: Canvas [eBook available on UAlberta library-https://www.library.ualberta.ca/catalog/6999793]

Recommended reading:

• Ries, E. 2011. The Lean Startup. Crown Books. Chapters 5, 6: “Leap”, “Test” [PDF available on uLearn]

Fri Feb 17 - Individual Assignment due: Entrepreneurial Ecosystem Mapping

Week 7:

WINTER TERM READING WEEK – NO CLASS

Week 8:

Mar 1 Finding your Business Model Pt (2): Iterating and Pivoting to find a Business Model Essential reading:

Chapter 4, “Avoiding Rocks and Hard Places: Your Gross Margin Model”

• Wilkinson, A. 2015. The Creator’s Code. Simon & Schuster: New York, NY. Chapter 4: “Fail Wisely” [PDF available on uLearn]

• Ries, E. 2011. The Lean Startup. Crown Books. Chapter 8” Pivot (or Persevere)”

Week 9:

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Mar 8 Group presentations: business models

Part 3: Operating, Funding and Running a Venture Week 10:

Mar 15 Venture Survival and Operations Essential reading:

Chapters 5, 6: “Trimming the fat: your operating model”, “Your working capital model”

• Wilkinson, A. 2015. The Creator’s Code. Simon & Schuster: New York, NY. Chapter 6: “Gift Small Goods”

Week 11:

Tues Mar 21 - Individual Practical Work 3 due

Mar 22 Strategy for a new venture: Market definition, Competitive Analysis Essential reading:

• Baron, R. & Shane, S. 2008 Entrepreneurship: A Process Perspective South-Western Cengage Learning. Chapter 9: “Marketing in a New Venture” [PDF available on uLearn]

• Seelos, C. and J. Mair. 2008. Profitable business models and market creation in the context of deep poverty: A strategic view. Academy of Management Perspectives. [PDF available on uLearn]

Week 12:

Mar 29 Financing a New Venture, Learning about the Edmonton Entrepreneurship Ecosystem Essential reading:

Chapter 7: “It takes money to make money: your investment model”

• Baron, R. & Shane, S. 2008 Entrepreneurship: A Process Perspective South-Western Cengage Learning. Chapter 6: “Financial resources for New Ventures: How to get them, how to manage them” [PDF available on uLearn]

Week 13:

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Apr 5 Managing for growth: Scaling up the operation and organization Essential reading:

Chapter 8: “Can you Balance a One-legged Stool?: Multidimensional business models”

• Sutton, R., & Rao, H. 2014. Scaling Up Excellence. Random House Canada. Chapter 2: Scaling Principles [PDF available on uLearn]

Week 14:

Apr 12 - Group Assignment due: Business Plan

Apr 12 Final class – review / exam preparation

The tentative exam date for this class is: 20-Apr-2017 (Thursday) @ 2:00 p.m.