Haas NewsWire - January 16, 2007
New Chesbrough Book Shows Companies How to Foster Innovation
In a new book that already has drawn glowing reviews, Haas School Adjunct Professor Henry Chesbrough calls on companies to break down their walls to foster innovation.
Although just released in December, Open Business Models: How to Thrive in the New Innovation Landscape, already has received a Wall Street Journal review calling the book, "one that B-school students and lay readers alike will enjoy." BusinessWeek also included it on its list of the 10 best innovation and design books of 2006.
In Open Business Models, Chesbrough argues for companies to look outside their boundaries for the best ideas and to capitalize on their own unused ideas through licenses and sales to other firms, even competitors. This new open approach requires new performance metrics, new processes, and changing long-held views about innovation and intellectual property, he says.
Such change is essential in today's world of rising technology development costs, shorter product life cycles, and widely distributed knowledge, argues Chesbrough, executive director of the Center for Open Innovation. The center is part of the Institute for Management, Innovation, and Organization.
Chesbrough illustrates how an open business model works with detailed case studies of companies such as Proctor & Gamble, IBM, and Qualcomm. Chesbrough, who received his Ph.D. from Haas in 1997, also offers a framework of six business model types -- with examples such as Wal-Mart, Dell, and Apple -- and a diagnostic test to enable managers to open up their own companies.
Open Business Models is published by Harvard Business School Press. It builds upon Chesbrough's earlier book, Open Innovation: The New Imperative for Creating and Profiting from Technology, which was published in 2003 by Harvard Business School Press.
Students Planning Conferences this Spring
This semester, Berkeley MBA students are organizing two new conferences focusing on sustainable energy and healthcare. Joining those conferences are the Berkeley Asia Business Conference and the Women in Leadership Conference, which are also returning in the spring.
The new Business of Healthcare conference, hosted by Healthcare@Haas and the Berkeley BioBusiness Association, takes place on Saturday, February 3. Kevin Young, executive vice president of commercial operations for Gilead Sciences, and Mary Ann Thode, president of the Northern California Region for Kaiser Permanente, have been announced as keynote speakers. For more information, visit http://www.haashealthcareconference.org/.
March 21 marks the inaugural UC Berkeley Energy Symposium, presented by the Haas student group Berkeley Energy and Resources Collaborative. Taking "Challenges, Opportunities, and the Role of UC Berkeley in Creating a Sustainable Energy Future" as its theme, the conference will feature speakers including William Banholzer, chief technology officer of Dow Chemical Company; Robert Birgeneau, chancellor of UC Berkeley; Nobel Laureate Steven Chu, director of Lawrence Berkeley National Laboratory; and Severin Borenstein, E.T. Grether Professor of Business Administration and Public Policy and director of the UC Energy Institute.
"Reflections on Asia: Growth and Sustainability" is the theme of the seventh annual Berkeley Asia Business Conference, which will be held on Saturday, February 10. Its keynote speakers include Ron Hosogi, principal of Hosogi & Associates and former Microsoft general manager, and Edward Tse, Booz Allen Hamilton managing director for Greater China. For more information, visit http://berkeleyabc.org/2007/index.html.
The Women in Leadership organization will explore "Innovation: Beyond Business as Usual" at its 11th annual conference on Saturday, March 3. More than 400 attendees are expected to participate in this perennially sold-out event, which promotes the wide variety of career options, professional networks, and lifestyle choices available to women.
IDEO’s Tom Kelley, MBA 83, to Speak on Innovation, January 29
Are you a Cross-Pollinator? Do you work with a Hurdler? Or a Storyteller? These are just a few of the roles that Tom Kelley, MBA 83, author of The Ten Faces of Innovation, suggests people can play in an organization to foster innovation and new ideas -- and fend off creativity-stifling naysayers.
Kelley will speak about The Ten Faces of Innovation on January 29, from 7:30 p.m. to 8:15 p.m. in the Wells Fargo Room. This DeanÂ’s Speaker Series event is part of Jennifer AakerÂ’s class "Creativity and Innovation in Marketing." Aaker is the Thomas W. Tusher Chair in Global Business. The event is open to the entire Haas School community. A light supper will be provided, and space is limited.
Inspired by the roles he has seen emerge at IDEO, the leading Palo Alto, California, design firm where he is general manager, Kelley will share engaging stories of how businesses have used innovation and design thinking to transform customer experience. IDEO is credited with designing the original Apple mouse, Oral-BÂ’s soft-grip kidsÂ’ toothbrushes, and even a portable defibrillator now kept on all major airlines that allows a layperson to administer a heart-resuscitating shock to victims of cardiac arrest.
Berkeley MBA Student Wins Innovation Essay Contest
Inspired by the theme "Innovate to Differentiate," first-year Full-time MBA student Katie Lindgren took top honors in an essay contest sponsored by IndiaÂ’s Businessworld magazine. Lindgren placed first among three international winners in the competition for her essay titled "Embracing Your Inner Geek." In her essay, Lindgren argues that embracing one's "inner geek" offers great potential for innovation.
The essay contest was part of the inaugural Infocom Future Leadership Awards, a new initiative by Businessworld to select and nurture future business leaders. More than 500 students entered the competition.
Lindgren and the other winners traveled to Calcutta, India, in December to claim their awards at the opening ceremony of Infocom, IndiaÂ’s largest information and communications technology conference. The awards were presented by the president of India, A.P.J. Abdul Kalam.
LindgrenÂ’s essay began life as a speech for Senior Lecturer William SonnenscheinÂ’s "Leadership Communications" course. Says Sonnenschein, "Leadership Communications emphasizes authenticity and taking risks. Ms. Lindgren's speech embodied those principles. She communicated authentic leadership by opening herself to her audience, and inspiring those who heard her to open themselves to innovation and change."
Haas School Takes First Place at JP Morgan's Good Venture Competition
Four Berkeley MBA students took home the top prize at the first annual JP Morgan Good Venture Competition in the graduate division.
Launched in the fall of 2006, Good Venture is a socially responsible case competition that invites students from around the country to submit funding proposals on behalf of various nonprofits. Winners of the competition secure funding from JP Morgan for the nonprofits in their proposals.
Working under the guidance of Kellie McElhaney, executive director of the Center for Responsible Business, Julia Gilfillan, Ellie Kelly, Rob Kaplan, and Shaolee Sen, all Full-time MBA 07s, beat out 65 other graduate teams from 41 schools, including Harvard, Northwestern, and the University of Chicago. Their chosen nonprofit, Lenders for Community Development, will receive a $25,000 donation from JP Morgan.
The Lenders for Community Development, based in San Jose, Calif., provides individuals and families in the Bay Area with the financial tools and training needed to help them build assets such as a home, a small business, or an education. "This award Â… will support our clients as they gain financial management skills, build assets, and create long-term financial independence," says Eric Weaver, the executive director of Lenders for Community Development.
At the competition finals held on November 30 and December 1, 2006, six finalist teams met at JP MorganÂ’s New York headquarters to present their cases before a panel of judges that included investment bankers and a member of the JP Morgan Foundation. The Haas School team, all of whom have all worked in nonprofits, pitched its cause in a 45-minute presentation. The winning team was announced at an awards ceremony following dinner.
Zettelmeyer Shows Cruising the Internet Helps Some Car Buyers
Shopping for a new car can drive even the most relaxed consumer over the edge, but new research by Florian Zettelmeyer, an associate professor in the Haas Marketing Group, found that the Internet can bring some relief by boosting a buyer's negotiating power.
Checking a car's invoice price online and using an Internet car buying referral site can help consumers get a lower price at the dealership, Zettelmeyer found in a study of 1,436 car purchases. He outlined his findings in an article titled "How the Internet Lowers Prices: Evidence from Matched Survey and Automobile Transaction Data" in the May 2006 issue of the Journal of Marketing Research.
Zettelmeyer, with co-authors Fiona Scott Morton of Yale University and Jorge Silva-Risso of UC Riverside, found that buyers paid about 1.5% less for a car when they checked the Internet for the invoice price and used an online car buying referral service. That equals about $375 based on an average car price of $25,000 and represents about 22% of dealers' average gross profit margin per vehicle.
One surprising result, however, was that the Internet did not help consumers who actually like bargaining get a lower price at the dealership. That's because good bargainers, by definition, are able to negotiate well with little information, Zettelmeyer explains.
Zettelmeyer has also recently shown that buyers get a lower price when car manufacturers offer consumer rebates rather than dealer rebates. Those findings, outlined in the article "$1000 Cash Back: The Pass-Through of Auto Manufacturer Promotions" in the September issue of the American Economic Review, suggest consumers should check the Internet to find out about dealer rebates before buying a car.
"It turns out whether or not you are informed makes a huge difference in what you pay," Zettelmeyer says.
In related research, Zettelmeyer and co-authors Jorge Silva-Risso of UC Riverside and Haas School Adjunct Professor Meghan Busse found that 70% to 90% of customer rebates from car manufacturers trickle down as discounts to car buyers. But only 30% to 40% of dealer rebates from manufacturers are passed down to buyers by dealers. That difference equates to about $500 for a typical promotion. Zettelmeyer believes it is caused by the fact that consumers often don't know about dealer rebates.
"The Internet here is a great equalizer in a way because it differentially helps those people more who have so far been worse off in car buying," Zettelmeyer concludes.
Haas Alumnus Norman Mineta Wins the Medal of Freedom
Former Transportation Secretary and Haas School alumnus Norman Y. Mineta, BS 53, was awarded the Presidential Medal of Freedom by President George W. Bush at an awards ceremony on December 15, 2006. The ceremony took place at the White House.
The Presidential Medal of Freedom, which is the nationÂ’s highest civil honor, recognizes high achievement in public service, science, the arts, education, athletics, and other fields.
In addition to being the longest-serving US Secretary of Transportation, Mineta has served as an Army intelligence officer, the mayor of San Jose, Calif., a US Congressman, and a Cabinet member under US Presidents of both the Democratic and Republican Parties.
Secretary Mineta was appointed Secretary of Transportation in 2001. In that position, he is credited with "improving transportation security and restoring confidence in air travel after the terrorist attacks of September 11, 2001," according to his Medal citation.
"On September the 11th, 2001, [Secretary Mineta] led the effort to bring thousands of commercial and private aircraft swiftly and safely to the ground," said President Bush in a speech honoring Mineta. "Norm was calm and he was decisive in a moment of emergency."
Laura Tyson Returns to Teach at Haas
Professor and former Haas School dean Laura D'Andrea Tyson returned from her post as dean of the London Business School this month to resume her faculty position at the Haas School of Business.
Tyson will teach International Business in both the Evening & Weekend MBA and in the Berkeley-Columbia Executive MBA Program this spring.
Tyson served as dean of the Haas School from July 1998 until December 2001, when she went on leave to become dean of the London Business School. She has held a faculty appointment at the Haas School since 1990.
She previously went on leave from Berkeley when President Bill Clinton appointed her chairman of the President's Council of Economic Advisors in 1993. She served in that post until 1995, when she was appointed chairman of the National Economic Council. She returned to campus in 1996.
Berkeley MBA Students Spanned the Globe on Winter Study Trips
Many Berkeley MBA students interrupted their well-deserved winter vacations frolicking in the sun or snow this past month to embark on study trips and student treaks to Israel, India, Wall Street, Washington, DC, and other locales.
Thirty-two students visited with former Israeli prime minister and Nobel Peace Prize recipient Shimon Peres on a student-initiated trip to Israel. Trip organizer Danel Mayer, MBA 07, tapped into his own network to arrange the itinerary, which also featured visits with former Israeli prime minister and finance minister Benjamin Netanyahu and Haas School alumnus Joseph Bachar, Ph.D. 87, IsraelÂ’s director general of the Ministry of Finance. Associate Professor Steven Tadelis served as the trek's faculty advisor. The trip caught the attention of several Israeli media outlets, which reported on the students' activities.
The Clausen Center for International Business and Policy organized two Seminars in International Business over the break. Clausen Center Executive Director Sebastian Teunissen led a trip to Bangalore and Mumbai in India, where students visited Dell IndiaÂ’s research and development center and BollywoodÂ’s Mehboob Studios. Lecturer Frank Schultz led a trip to Sao Paulo and Rio de Janeiro in Brazil, where students visited the Brazilian stock and futures exchanges and global steel manufacturer Gerdau.
More than 20 members of the Haas Finance Club made their annual trip to Wall Street, packing three days with alumni meetings and visits to Goldman Sachs, Morgan Stanley, and Merrill Lynch. Banking was also of interest to the Pacific Rim Club, which sent ten members to Hong Kong to meet with alumni and executives from Citigroup, Credit Suisse, and Lehman Brothers.
The Global Initiatives at Haas club traveled to Washington, DC, to explore international development issues such as microfinance and education. Twelve participating students visited ten organizations, including Population Services International and the World Resources Institute.
Berkeley Entrepreneurs Forum Takes an Inside Look at Consumer Electronics
With the consumer electronics industry grabbing headlines at CES and the Macworld Expo, the 2007 spring program for the Berkeley Entrepreneurs Forum opens January 25 with "Can Startups Penetrate the Living Room? Emerging Goliaths of Consumer Electronics."
Tim Wilson, partner at venture capital firm Partech International, will moderate a panel of CEOs from three consumer electronics startups -- Tom Willey of Discera; Neville Street of Casabi, and Amit Jain of Spudnik -- who will reveal strategies for operating in this competitive, but lucrative market.
The spring program runs from January to April, with an event from 6:30 to 8:30 p.m. on the fourth Thursday of each month in the Arthur Andersen Auditorium. On February 22, a panel will discuss the topic "Your Brain in 2010." The March 22 topic will be announced in the coming weeks.
The series ends on April 26 with the finals of the Ninth Annual UC Berkeley Business Plan Competition. More than 200 teams submitted business plans for last yearÂ’s competition.
Now in its sixteenth year, the forum brings investors and aspiring entrepreneurs together to network and to share ideas. Each event begins with an hour of mingling over drinks and hors dÂ’oeuvres. A discussion with professionals from leading Bay Area companies on a specific aspect of entrepreneurship follows. Past guests included Google CEO Eric Schmidt and Cisco Systems founder John Morgridge.
Early registration tickets are available for $35. Tickets can also be purchased at the door for $45. A special pre-registration rate of $5 per event, or $20 for a season pass, is available to students.
For more information on the Berkeley Entrepreneurs Forum, visit http://entrepreneurship.berkeley.edu/bef.asp.
Berkeley MBA Students Win a People's Choice Award at Innovation Challenge
Students from the Haas School won the third place People's Choice Award at the 2006 Innovation Challenge, hosted by the Darden Graduate School of Business at the University of Virginia.
The Innovation Challenge is the largest MBA innovation challenge in the world. Contestants are asked to work in cross-functional teams to create solutions to real-world problems facing the contest's sponsors. The sponsors included Hilton, DaimlerChrysler, Whirlpool, and GE Money.
The team consisted of Bill Leung, Vandana Bharvani, and Wilson Chen, all MBA 08s. The students, who are enrolled in the Evening & Weekend MBA program, were selected by their fellow competitors to receive the honor for their work in the Whirlpool competition.
The challenge had a record-breaking number of participants. Several Haas School teams were part of the 440 teams and 88 universities from 15 countries that entered the competition.
For more information on the competition, visit http://www.innovationchallenge.com/.
UC Berkeley Honors Haas Employees with SPOT Awards
UC Berkeley recently recognized seven Haas School employees who last fall went beyond the call of duty in serving faculty, students, and staff with spirit. These managers, supervisors, and other non-union members of the school mark the first recipients of the Spot Award Program. The program, established last September, honors workers across the university who demonstrate extraordinary ability to collaborate, provide inspired service, and take initiative in their jobs and projects.
The winners are:
Sue Clifton, Development and Alumni Relations, who worked with dedication to ensure that development programs, services, and donor relations were not disrupted by staff vacancies;
Tyson Nagler, Business Services, who recovered $9,000 in petty cash from individuals who received the funds in 2003 and who had left UC;
Ellen Wilson, Career Services, who created an excellent Real Estate Speaker Series to connect professionals with MBA students;
Michael Chung, Masters in Financial Engineering, who provided top-notch customer service to students having problems with the Research Terminal Service from off-site;
Xiaoyan Ma, Computing Services, who led the Alumni Relations and Computing team to transition the lifelong email forwarding service to an internal HCS server; and
Christine Blaine, Career Services, who ensured that the Career Management Conference was a great success.
The winners received cash awards of $250 each.
In addition, June Wong, faculty assistant, has been honored with the HEART (Haas Employee Accomplishment Recognition Team) award for her willingness to increase the number of faculty she supports.
Visit http://recognition.berkeley.edu for information on how to nominate a supervisor or colleague for the Spot Award.
Haas in the News
Cynthia Kroll, senior regional economist for the Fisher Center for Real Estate and Urban Economics, was quoted in a December 31 Oakland Tribune article titled "Changes in industry, technology next order of business," regarding the prospects for the Bay Area economy in the new year. For the full article: http://www.insidebayarea.com/search/ci_4928804
Danel Mayer, MBA 07, and Heather Stevens, MBA 08, were quoted in a December 29 Jerusalem Post article titled "Berkeley students take lessons from local business," regarding their trip to explore the business environment in Israel. For the full article: http://www.jpost.com/servlet/Satellite?cid=1164882003064&pagename=JPost%2FJPArticle%2FShowFull
Henry ChesbroughÂ’s book, Open Business Models: How to Thrive in the New Innovation Landscape, was mentioned in a number of news outlets:
+ A December 27 USA Today article titled "Mass collaboration could change way companies operate." For the full article: http://www.usatoday.com/tech/columnist/kevinmaney/2006-12-26-wikinomics_x.htm
+ A December 21 Wall Street Journal review titled "Ideas for the Taking."
+ A December 6 BusinessWeek online article titled "Best Innovation and Design Books for 2006." For the full article: http://www.businessweek.com/innovate/content/dec2006/id20061206_492064.htm
+ A December 4 BusinessWeek online article titled "Thriving in the New Innovation Landscape." For the full article: http://www.businessweek.com/innovate/content/nov2006/id20061128_624702.htm?chan=
Solomon Darwin, executive director of the Center for Financial Reporting & Management, was quoted in a December 22 Fulton County Daily Report article titled "Lawyers flocking to Â‘mini-MBAÂ’ classes," regarding the involvement of attorneys in accounting matters.
John Morgan, the Gary & Sherron Kalbach Chair in Business Administration, was quoted in several new articles regarding the artificial inflation of reputation scores through fake transactions.
+ A December 19 Wall Street Journal article titled "How sellers find ways to trick eBay Â‘reputationÂ’ rating system."
+ A December 11 Post Standard article titled "Online buyers beware: SellersÂ’ shipping charges can be shocking."
+ An Inc. Technology article titled "Setting Up a Business on eBay." For the full article: http://technology.inc.com/internet/articles/200610/ebaybusiness.html
+ A January 11 article titled "Study: eBay sellers gaming the reputation system?" For the full article: http://news.com.com/2061-10803_3-6149491.html?tag=blog.list?tag=nefd.aof
Alexandre MasÂ’ study about the relationship between pay and performance was featured in a December 19 Central Valley Business Times article titled "Does worker pay affect performance?" For the full article: http://www.centralvalleybusinesstimes.com/stories/001/?ID=3868
Kroll was quoted in a December 15 Oakland Tribune article titled "Agency looks at future of region." For full article: http://www.insidebayarea.com/business/ci_4844847
John Quigley, the I. Donald Terner Distinguished Professor in Affordable Housing and Urban Policy, was quoted in a December 14 Roseville Press Tribune article titled "Minimal consequence; California raises hourly pay, but effects are marginal." For the full article: http://www.thepresstribune.com/articles/2006/12/13/news/top_stories/02wage.t
Nora Silver, director of the Nonprofit and Public Management Program, was quoted in a December 13 Contra Costa Times article titled "Holiday giving moves to a higher level: Alternative gifts help humanity," regarding the trend toward donating to charitable organizations in honor of others. For the full article: http://www.contracostatimes.com/mld/cctimes/news/local/states/california/16228472.htm
The Haas SchoolÂ’s "Leading Through Innovation" branding project was featured in a December 12 Wall Street Journal article titled "M.B.A. Track: How to Keep Your School From Being Brand X."
Catherine Wolfram, associate professor in the Haas Economic Analysis and Policy group, was quoted in a December 8 Oakland Tribune article titled "Chevron spends more; you may spend less," regarding the prospects of gas prices for consumers.
Happening at Haas
BAY AREA ALUMNI - 3rd Annual Haas Celebration in the East Bay
Tuesday, January 23, 2007
6:00 p.m. - 8:30 p.m.
William F. Cronk Conference Center
Dreyer's Grand Ice Cream Holdings, Inc.
5929 College Avenue, Oakland
The East Bay Chapter of the Haas Alumni Network invites you to the Third Annual Haas Celebration in the East Bay. The evening includes a special discussion on "Corporate Responsibility: A Passing Fad or A Business Strategy Here to Stay?" The evening includes cocktail reception, panel discussion and a DreyerÂ’s Ice Cream tasting.
To register, visit http://guest.cvent.com/EVENTS/Info/Summary.aspx?e=664fb73b-662e-452c-81d5-61ebe40e941f.
For questions, please contact email@example.com.
BAY AREA ALUMNI - 9th Annual Nonprofit and Public Management Leadership Dinner
Tuesday, February 20, 2007
6:00 p.m. - 9:30 p.m.
The Nonprofit and Public Management Program, in conjunction with Net Impact and the Alumni Relations office at the Haas School, is hosting the Ninth Annual Haas Nonprofit and Public Management Student-Alumni Leadership Dinner. Leon Panetta, former chief of staff to President Bill Clinton, former California representative to the US Congress, and a member of the Iraq Study Group will be the keynote speaker.
For more information, please contact Nora Silver at firstname.lastname@example.org.
BAY AREA ALUMNI - Haas Celebration in Silicon Valley
Wednesday, February 28, 2007
6:00 p.m. - 8:00 p.m.
Menlo Circus Polo Club
190 Park Lane, Atherton
Mark Kvamme of Sequoia Capital will offer a keynote about venture capital.
For more information, please contact email@example.com.
BAY AREA ALUMNI - Haas Celebration in San Francisco
Wednesday, March 21, 2007
5:30 p.m. - 8:00 p.m.
Two Folsom Street, San Francisco
The San Francisco Chapter of the Haas Alumni Network and the Haas School of Business invites Bay Area alumni to the Haas Celebration in San Francisco, an alumni networking event and presentation with Gordon Moore, chairman emeritus of Intel Corporation, and Scott McNealy, chairman and co-founder of Sun Microsystems. The evening includes a cocktail reception, an art gallery viewing, and a presentation. Registration information will be announced soon.
BAY AREA ALUMNI - All Alumni Reunion Conference
Saturday, April 28, 2007
9:00 a.m. - 2:00 p.m.
The conference will focus on "Leading through Innovation: The Haas School in Action." Its speakers will include Dean Tom Campbell, Associate Professor Steven Tadelis, and Adam Berman, the Haas School's executive director of Curriculum Innovation. A luncheon will follow the conference in the Haas Courtyard.
For questions, contact firstname.lastname@example.org.
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