Overview

This course explores the unique aspects of creating effective strategies for technology-intensive businesses. What are effective strategies for winning in markets with network effects? How can technology be leveraged to build multisided platforms? How can firms create and capture the value from intellectual property assets? What are the unique challenges of governing technology-intensive firms? And how can they build and sustain value in emerging technologies?

Industries covered range widely, including Generative AI, esports, autonomous vehicles, collaboration tools, cybersecurity, cloud services, e-commerce, social networking, browsers, semiconductors, operating systems, streaming media, intellectual property, mobile communications, electronic ink, blockchain, crypto currency, and wearable technology.

Course Content and Organization

The course is structured into six modules:

Network Effects: Technology-intensive businesses have unique attributes, which make their products increasingly valuable if more consumers buy their product or if more complements become available. What are the implications for market tipping, pricing and growth strategies?

Multisided Platforms (MSPs): The most important competitive battles in technology are no longer between standalone products or services, but between platforms. Many of the most successful companies are those who build multisided platforms (MSPs), which spawn large ecosystems of users and suppliers of complementary products and services. Why and how are MSPs different from “normal” firms? What are the key strategies for creating successful MSPs?

Tactics—Judo & Sumo Strategy: Many of the critical challenges in fast-moving technology businesses are tactical in nature: how and when do firms cooperate and compete with firms within their industry? How can small firms use their larger competitors’ size to their own advantage (judo strategy)? When and how can large firms impose their will (sumo strategy) against other players in their ecosystem, without running afoul of antitrust laws?

Managing Intellectual Property: A defining characteristic of technology industries is the disproportionate share of value which resides in intellectual property (IP) assets. We will explore the current challenges in the system of patents, how firms create IP and build business models enabling them to appropriate value from their IP.

Governance of Technology Firms: Start-ups and large firms in the technology world face special governance problems, especially asymmetrical information between management and boards.

Look Forward, Reason Back: Large-scale industry change happens faster in technology than in other markets. Cutting edge technologies have unique problems related to untested demand, uncertain performance, and the challenge of how firms can build and maintain their competitive edge in order to take advantage of new technological opportunities. This module explores how managers ‘look forward’ into highly uncertain environments, then ‘reason back’ to devise strategies for today.

Career Focus

The course should be of particular interest to those interested in managing a business for which technology is likely to play a major role, and to those interested in consulting, private equity or venture capital. The course may also be valuable for students who do not necessarily plan to pursue a career related to technology. Indeed, the concepts and frameworks covered (e.g., network effects, judo strategy, multisided platforms) apply well beyond technology industries.



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