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Regular version of the site
2019/2020

Digital Product Development

Type: Mago-Lego
When: 3, 4 module
Language: English
ECTS credits: 3

Course Syllabus

Abstract

In the modern knowledge economies, some service industries are very innovative and highly dependent on information and knowledge. These industries significantly contribute to the economic growth. They are usually classified as knowledge intensive business services (KIBS). The course introduces the concept of KIBS with a particular attention to innovation activities and digitalization of these industries. The course focuses on the basic approaches for assessing viable business models for digital products. During the course, the students will discuss how to organize and manage the digital product team and which skills and competences are crucial to make this team high-performing. The course also includes the review of approaches for analyzing the level of technology adoption as well as to the identification of technological and consumer trends. During the seminars, the student will apply the concept of design thinking to initiate digital products. build their own minimum viable projects and test relevant product hypothesis in diversified teams.
Learning Objectives

Learning Objectives

  • Students will have insights on trends in knowledge-intensive business services, consumer and technological trends related to digitalization.
  • Students will be competent in analyzing business models for digital companies.
  • Students will know how to assess the level of technology diffusion and design a digital product.
  • Students will be experienced in creating multicultural, multidisciplinary, cross-functional teams for providing project deliverables.
  • Students will know how to create and defend a minimum viable project in the digital era.
Expected Learning Outcomes

Expected Learning Outcomes

  • Analyze consumer and technological trends in service industries
  • Analyze unit economics for different business models
  • Formulate and test the hypotheses for validating the digital product idea
  • Create a business model for the digital product and critically assess the fundraising opportunities for the digital product
  • Explain the relationship between business model elements
  • Manage the digital product lifecycle effectively
Course Contents

Course Contents

  • Hypotheses validation & MVP
    * MVP * Competitors overview * Customer Development vs. Design Thinking * Jobs-to-be-Done * Painkiller-Vitamin-Dopamine * ABCDX Segmentation Framework * Riskiest assumption test (RAT) * No-code
  • Business models
    * Business model * Business model innovation * Business model canvas * Value creation * Value proposition * Digital business model * Agile business model * Digital entrepreneurship * Digital platform, ecosystems
  • Unit Economics
    * AARRR Framework (Acquisition - Activation - Retention - Revenue - Referral) * Funnel estimation * RoI leverage approach * Unit economics for various business models
  • Fundraising
    * Crowdfunding * Fundraising * Business accelerator * Venture capital * Venture investors * Funding process * Pre-seed funding * Seed funding
  • Project Idea Assessment
    Requirements for a 10 min team presentation on generating an idea for digital product (service): • Team composition & diversity (background, experience, roles) • Target client profile, industry • Idea matching problems of target clients with the solution • Process, product or service • Degree of a novelty for an idea • “Pain points” and benefits for each stakeholder • Impact (social, cultural, environmental, for-profit)
  • Business Model Assessment
    Requirements for a 10 min team presentation on business model for digital product (service): • Customer Segments • Key Activities • Key Resources • Partner Network • Value Propositions • Channels • Customer Relationships • Cost Structure • Revenue Streams • “Rough and ready” prototype
  • Minimal Viable Product
    Requirements for a 10 min team presentation on defending a MVP for digital product (service): • Early customers • Value proposition (compared to competitors) • Your Solution • Early Metrics • Your market assumptions • In-house operations vs. outsourcing
Assessment Elements

Assessment Elements

  • non-blocking Team presentation on generating a project idea
  • non-blocking Team presentation on defending a MVP
  • non-blocking Team presentation on defending a project business model
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.5 * Team presentation on defending a project business model + 0.25 * Team presentation on generating a project idea + 0.25 * Team presentation on defending a MVP
Bibliography

Bibliography

Recommended Core Bibliography

  • Christoph Zott, & Raphael Amit. (2006). Exploring the fit between business strategy and business model: Implications for firm performance. Working paper. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.FF466C
  • Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008
  • Everett M. Rogers. (2010). Diffusion of Innovations, 4th Edition. [N.p.]: Free Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1976305
  • Handbook of antisocial behavior, Stoff, D. M., 1997
  • Osterwalder, A., Clark, T., & Pigneur, Y. (2010). Business Model Generation : A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=335366
  • Richard Shearmur, & David Doloreux. (2019). KIBS as both innovators and knowledge intermediaries in the innovation process: Intermediation as a contingent role. Papers in Regional Science, (1), 191. https://doi.org/10.1111/pirs.12354
  • Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27(3), 425–478. https://doi.org/10.2307/30036540

Recommended Additional Bibliography

  • Anna Cabigiosu, & Diego Campagnolo. (2019). Innovation and growth in KIBS: the role of clients’ collaboration and service customisation. Industry and Innovation, (5), 592. https://doi.org/10.1080/13662716.2018.1483823
  • Brown, T. (2009). Change by design : how design thinking can transforms organizations and inspires innovation / Tim Brown with Barry Katz. New York: Harper Collins. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edswao&AN=edswao.308063775
  • da Costa Aleixo Monteiro Melhorado Baptista, G. (2017). Mobile banking and mobile payment acceptance. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.58F041D3
  • Kotarba Marcin. (2018). Digital Transformation of Business Models. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BF63B999
  • LIEDTKA, J. (2018). Why Design Thinking Works. Harvard Business Review, 96(5), 72–79. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=131356794
  • Martin, R. L. (2009). Design of Business : Why Design Thinking Is the Next Competitive Advantage (Vol. First ebook edition). Boston, Mass: Harvard Business Review Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=674950
  • Tullis, T., & Albert, B. (2013). Measuring the User Experience : Collecting, Analyzing, and Presenting Usability Metrics. Amsterdam: Morgan Kaufmann. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=486121