The course provides a high-level view of business for non-business students. It will cover business principles relevant to the software industry in four areas: Competitive Strategy, Finance, Accounting and Human Resources. The course is organized as a series of case studies and lectures. It will progress from an emphasis on "tools" to a more high-level look at competitive dynamics in high-tech industries.

Grading: Grades will be awarded as follows

Understanding financial statements: Short quiz on April 2 20%

Understanding the numbers that drive the business. Take home assignment on April 16^th 20%

Take home assignment on human resources 20%

Two take-home assignments on technology strategy 20%

Class participation 20%

Proposed class Outline:

March 27 Intro .Class outline.

By the end of the first two sessions, participants should be able to:

• understand basic accounting definitions, concepts, and principles,
• read and interpret basic financial statements,
• analyze the effect of accounting transactions,
• understand the relationship between income and cash flow,
• perform ratio analysis,
• discuss the uses and limitations of financial reports,
• discuss the use of accounting measures in performance evaluation.

Teaching Methods: A combination of class discussion/lecture based on a primer entitled "Financial Accounting Tools for the Non-Financial Manager" as well as other materials and readings which will be handed out before these sessions begin.

Materials Used: "Financial Accounting Tools for the Non-Financial Manager" by S. Sefcik.

Text: "Analysis for Financial Management," Chapters 1 and 2. 6^th ed., by Robert C. Higgins.

By the end of the two sessions, participants should be able to:

• Define cost terms (e.g., fixed, variable, sunk, and opportunity cost)
• Estimate costs using account analysis or regression
• Perform cost-volume-profit analysis including calculation of the break-even point
• Discuss the meaning and use of the contribution margin (the increase in profit Explain why the percentage change in profit is generally greater than the percentage change in sales associated with a one unit increase in volume)
• Explain why the percentage change in profit is generally greater than the percentage change in sales
• Explain the circularity of setting product price by marking-up cost
• Use accounting information to analyze business decisions
• Use discounted cash flow techniques (including NPV) to evaluate investment decisions
• Explain why a balanced set of performance measures are needed to drive a company’s strategy for success

Teaching Methods: A combination of lecture/discussion and case analysis

Text: Managerial Accounting Chapters1,4,6,10 (John Wiley & Sons, 2001), by James Jiambalvo.

• Goals that work
• Building teams and promoting effectiveness
• Conflict management and negotiation skills
• Creating motivating jobs and rewarding performance
• Selecting the right person for a job

Communicating supportively and techniques for tough management situations

Lecture: Innovation, competition and competitive strategy in high-tech industries

This will cover the following issues

• How does rapid technological change alter the basis of competition in an industry and what are the implications for competitive strategy?
• The role of dominant designs in technology
• The evolution of competition
• Technology Paradigm Shifts

Case Study: The Videogame industry

Readings: Christensen, C. M. (1992). Exploring the limits of the Technology S-Curve.

Bower, J. L. and C. M. Christensen (1995). "Disruptive Technologies: Catching the Wave." Harvard Business Review (January-February, 1995): P. 43-53.

May 15 Technology Strategy II

Lecture: Technology strategy

This will cover:

• How should technology and competitive strategy be integrated.

• How strategy drives technology investment decisions
• Managing the product development process

Case: Materials Technology Corporation

Readings: Wheelwright, S. C. and K. B. Clark (1992). "Creating project plans to focus product development." Harvard Business Review(March-April 1992): P 2-14.

Clark, K. B. (1989). "What Strategy Can Do for Technology." Harvard Business Review (November-December 1989).

Clark, K. B. and T. Fujimoto (1990). "The power of product integrity." Harvard Business Review (November-December 1990): P. 107-118.

Lecture: Competitive Strategy and New Product Introductions

This will cover

• The technology lifecycle in the marketplace
• How do you establish a new product in the marketplace
• What determines new-product introduction success?

Case Study: TBD

Readings:

Hill, C. W. (1997). "Establishing a standard: Competitive strategy and technological standards in winner-take-all industries." Academy of Management Executive XI(2): 7-25.

Moore, G. A. (2001). Crossing the Chasm -and Beyond. Strategic Management of Technology and Innovation, Mc-Graw Hill Irwin. P. 265-272.

A whirlwind tour of entrepreneurship

• Idea generation
• Defining the customer and the market
• Raising money: The role of friends and family, angels, banks, VCs, Corporate partners and Investment Bankers
• Shipping a product
• Exit strategy: Acquisition or IPO