25C00100 Entrepreneurship and Innovation Management Period V (2016) 6 ECTS

Course leader:

Myrto Chliova, PhD (myrto.chliova@aalto.fi) Teaching Assistant:

Virva Salmivaara (virva.salmivaara@aalto.fi)

Course Syllabus

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Contents Course description and objectives ............................................. 2How to complete the course ........................................................ 3Formation of groups ..................................................................... 4Group Assignments ..................................................................... 4Individual Assignments (equivalent to exam) ............................ 6Readings ........................................................................................ 8Class rules and suggestions ....................................................... 8Timetable and list of contents ..................................................... 9Description of Sessions and readings ....................................... 9Instructors ................................................................................... 13

Course description and objectives What are the main objectives and contents of this course? This course has three main objectives. The first objective of this course is for students to learn to recognize key concepts in entrepreneurship and innovation and become familiar with current approaches in academia and in the field of practice. Second, students should be better able to identify, create and evaluate entrepreneurial opportunities, and to apply innovative solutions in their own life and work, either as self-employed entrepreneurs or as company executives. Third, by the end of the course students should be able to critically reflect on and discuss the possibilities as well as the limitations of entrepreneurship and innovation. The first objective will be pursued through lectures that provide an overview of entrepreneurship and innovation and discuss the main insights from research and practice. The second will be facilitated through group assignments inside and outside the classroom, and the development and presentation of the students’ own entrepreneurial ideas. Students will have the opportunity to kick-start their own entrepreneurial project and to receive feedback that can help them with the further development of their ideas. Finally, the third objective will be enabled through invited presentations, focusing on representatives of Aalto’s and Helsinki’s entrepreneurship ecosystem, as well as readings and reflection exercises that encourage critical thinking. What should you know before you start the course? The course has been designed so that students from a variety of backgrounds can attend it and there are no prior course requirements. As this is an applied, hands-on course, students are expected to be present to at least 4/6 sessions, and to actively contribute to group work.

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What should you know after completing the course? After completing this course you will have developed an understanding of the definitions of entrepreneurship and innovation, the key issues surrounding these processes, and the current approaches employed to enable their successful implementation. You will also be more familiar with the entrepreneurial ecosystem at Aalto, in Finland and beyond. Furthermore, you will have experienced the very early stage of the venture startup process through engaging in entrepreneurial idea generation, development and its presentation to an audience. How can you extend your knowledge and skills in this area after the course? The Entrepreneurship Unit of the Aalto University School of Business offers an MSc in Entrepreneurship and Innovation, as well as a Masters’ level minor with the same name, for students interested to extend their knowledge and skills in this area. For more info, check: http://www.aalto.fi/en/studies/education/programme/entrepreneurship_master/ Further entrepreneurship-related courses are available to all Aalto students via the Aalto Ventures Program (avp.aalto.fi). Additional readings and resources on the main topics covered as well as further specialized topics will be suggested on this course’s page on MyCourses. Students are also encouraged to explore opportunities for further developing their entrepreneurial ideas through the mentoring programs that Startup Sauna and AaltoES offer.

How to complete the course In order to complete this course successfully you will need to:

1. Enrol via the Oodi online platform with a deadline of 7 days before the first session.

2. Be present at the first session so that you can be assigned to a group for completing your group assignments. Failure to attend the first session disqualifies you from assignment to a group, and therefore participation to this course. In exceptional cases, latecomers can take the course if they can form their own additional group of 3-4 students, however no changes will be made to the original teams to accommodate them.

3. Attend 4/6 sessions of this course. There is no need to inform the instructor or teacher

assistant of any absences or of the reasons for these absences, however you need to be present and sign the attendance sheet during 4 sessions at a minimum.

4. Complete the group challenge presentations and be ready to present them in class (20% of

final grade).

5. Develop with your group an entrepreneurial idea of your choice and a videotaped and live “pitch” for it (20% of final grade).

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6. Submit individual reflections based on the lectures’ and readings’ content, after each class (30% of final grade)

7. Submit a final individual report after the end of the course (30% of final grade).

The scale for evaluation that will be used for all assignments and for the overall grade ranges from 0-5, with 5 being the maximum grade, and 1 being the pass grade.

You are expected to submit all assignments (group and individual ones) on time and before the respective deadline. If you fail to submit any assignment on time, your grade for that assignment will be reduced by 25% for each passing day. For instance, if your submission is up to 1 day late, you can get a maximum of 75% of the grade of the assignment, up to two days a maximum of 50%, up to three days a maximum of 25%. You will no longer have an option to submit after three days have passed.

Please note that the grades you receive for both the group and the individual assignments are final. Grades are non-negotiable and resubmission is not allowed. If you fail the course or are unhappy with the grade you receive, you will need to retake the course in the following semester.

Formation of groups Students will be assigned to groups after the session of Tuesday 12th of April. Participation in this session is obligatory for students that wish to take this course. Groups will consist of 3-4 students. Latecomers can take the course only if they can form their own additional group of 3-4 students, however no changes can be made to the original teams to accommodate them.

Group Assignments 1.Groupchallengepresentations These presentations are based on the assigned group challenge for each session and consist of powerpoint slides that correspond to a 10-minute presentation. Groups need to be ready to present their slides, as one random group will be selected during each session to present their work in class. Deadlines You need to submit your presentation slides on MyCourses by 23.55 on the Sunday before each class. Here are in detail the submission deadlines for these presentations. More information on these assignments will be provided in class and on MyCourses.

Group Challenges Date When Where

Group challenge for Session 2: The awareness challenge

Sunday, April 17th 23.55 p.m. MyCourses platform

Group challenge for Session 3: The billion dollar idea challenge

Sunday, April 24th 23.55 p.m. MyCourses platform

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Group challenge for Session 4: The corporate innovation challenge

Sunday, May 1st 23.55 p.m. MyCourses platform

Group challenge for Session 5: The crash test challenge

Sunday, May 8th 23.55 p.m. MyCourses platform

Evaluation The group challenge presentations will be evaluated based on the slides submitted prior to class. Together, these assignments will correspond to 20% of your final grade for the course. As there are four such assignments, each will count 5% towards your final grade. The criteria for evaluation of the group challenge presentation slides are the following:

1. Evidence of collective, balanced teamwork 2. Evidence of effort expended to accomplish the challenge 3. Evidence of creative, out-of-the-box thinking 4. Transparent description of the process followed 5. Ability to critically evaluate and reflect upon the activity assigned 6. Connection of practical experience with theoretical concepts from the readings and lectures 7. Professional presentation: comprehensive content, coherent structure, absence of grammar

and spelling mistakes (tip: always run a spellcheck!) 2.EntrepreneurialideadevelopmentThroughout this course you will learn about the stages of the entrepreneurial process, and you are expected to apply this learning in order to develop with your group an entrepreneurial idea of your own choice. Groups will have to prepare a videotaped “pitch” of their idea, to be submitted on MyCourses, as well as a 3’ live “pitch” of the idea, to be presented in class to a panel of judges. If there is sufficient time all groups will be able to present their pitch in class. If not, judges will select the most promising teams to present. All groups will receive feedback on their idea. Deadline The videotaped version of your entrepreneurial idea pitch should be submitted on MyCourses by 23.55 pm on Sunday, May 15th. The live pitch will be presented during Session 6 on Tuesday, May 17th.

Entrepreneurial idea Date When Where

Entrepreneurial idea: videotaped pitch

Sunday, May 15th 23.55 p.m. MyCourses platform

Evaluation The development of the entrepreneurial idea will correspond to 20% of your final grade for the course. The videotaped version of the pitch submitted prior to class will count towards half of this

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20% (so will count 10% towards the final grade), while the live pitch delivered in class will count for the other half (10% towards the final grade). The criteria for evaluation of the entrepreneurial idea pitch (both videotaped and live) will be based on the ability of your group to communicate:

1. the existence and importance of the problem that your entrepreneurial idea will address 2. the advantages and uniqueness of the solution offered 3. the financial viability and coherence of the business model 4. the existence and importance of the potential market 5. the suitability of your team for delivering the solution 6. communication of a compelling motivation and story behind your idea

Peer Evaluation To ensure that group grades reflect approximately equal effort by all group members within each group, an additional peer evaluation will be conducted through MyCourses after the end of the course. Students will evaluate their group members in terms of the effort and collaborative attitude they exhibited towards the group, in each of the group assignments and entrepreneurial idea development tasks. For students that score an overall peer grade of less than 3 out of 5, their grade on all group assignments (including the entrepreneurial idea development) will be adjusted downwards by -1 out of 5.

Individual Assignments (equivalent to exam) The “exam” for this course consists of individual assignments to be submitted through the MyCourses platform. Individual assignments count towards 60% of the final grade, 30% being individual reflection assignments submitted after each class, and 30% being a final report after the course is over. Individualreflections Reflection assignments consist of a short reflection (300-400 words) on the key takeaway, concern or idea that each class triggered in you. This could be related to any readings for or any content we have covered during the session. Reflection assignments are not meant to be an assessment of teaching methods used in the sessions (you will have the opportunity to give feedback separately on such issues), nor a summary of the content we covered, but a critical reflection on something important that you have learned or thought about during each class. Individualfinalreport The individual final assignment should consist of around 1.200 - 1.500 words, and be a report and assessment of an entrepreneurship- or innovation-related current topic agreed with the instructor, relevant to a specific organization, industry or policy issue in Finland or in your country of origin or residence. You will need to identify one important issue or problem worth reporting on through researching the topic, and then gain further insight through at least one interview with a relevant expert (entrepreneur, business development executive, policymaker or other, with at least 7 years of experience, who cannot be a student, friend, relative or Aalto Personnel). The report should

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explain the issue identified and propose well-founded suggestions for improvements or future development. We will offer several topic suggestions but you are encouraged to propose a specific topic if you have a particular interest. You can find more detailed information on MyCourses.

Deadlines Reflection assignments will be due after the first, second, third, fourth and fifth session. These assignments have to be submitted by 23.55pm on the Wednesday following each of these sessions. The final report will be due through MyCourses, 2 weeks after the last session takes place, on the 30th of May, 23.55pm.

Individual Assignments Date When Where

Reflection on Session 1 Wednesday, April 13th 23.55 p.m. MyCourses platform

Reflection on Session 2 Wednesday, April 20st 23.55 p.m. MyCourses platform

Reflection on Session 3 Wednesday, April 27th 23.55 p.m. MyCourses platform

Reflection on Session 4 Wednesday, May 4th 23.55 p.m. MyCourses platform

Reflection on Session 5 Wednesday, May 11th 23.55 p.m. MyCourses platform

Final report Wednesday, June 1st 23.55 p.m. MyCourses platform

Evaluation The criteria for evaluation of the individual reflection assignments are the following:

1. Ability to critically evaluate and reflect upon the your personal learning from the respective class

2. Good knowledge of the covered material 3. Connection of practical experience in developing entrepreneurial skills throughout the

course with theoretical concepts from the readings and lectures 4. Use of concrete concepts and arguments in support of your answers 5. Professional presentation: comprehensive content, coherent structure, absence of grammar

and spelling mistakes (tip: always run a spellcheck!) The criteria for evaluation of the final report are all the preceding ones as well as:

6. Evidence of effort expended to gain knowledge and expertise on the topic 7. Evidence of creative, out-of-the-box thinking 8. Transparent description of the process you followed

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Readings Purchasing a textbook is not necessary for completing this course. Required readings are based on articles and other material listed on MyCourses, that you can access through Aalto library. The recommended textbook for students that wish to complement the required readings with a textbook, is: Barringer B.R. and Ireland D. (2012) Entrepreneurship: Successfully launching new ventures. Fourth Edition. Pearson. Additional readings and resources are suggested on MyCourses for students that want further exposure to specific topics.

Class rules and suggestions Please be on time and silence your phones, so that you do not create distractions for others. Respect your group members and keep in mind that your participation and effort in the group assignments also affects their learning and their assessment. Class participation is not demanded or graded. However, it is encouraged, as it makes the sessions more interesting for everyone involved. There are no stupid questions or wrong opinions, so feel free to speak up if you have something to share. Try to get the maximum benefit from our guest speakers by interacting with them as much as possible. Students that are particularly active participating thoughtfully in class can be awarded an extra bonus on the final grade, ranging from 0.5-1 grade points out of 5, at the instructor’s discretion. If you have any questions related to the design and delivery of the course, first consult the syllabus. If it does not provide the answer, please submit your question through the MyCourses platform. We will be answering questions through this platform, not through individual emails. We will share with you links for submitting anonymously:

a) content-related questions b) feedback for future improvement of the course c) other concerns e.g. any problems within groups

Also, feel free to approach us after the class to directly share any of the above directly with us.

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Timetable and list of contents

Date Time Place Content

Tuesday 12 April

12.15–16.00

U4 (U142), Otakaari 1

Session 1: Course overview and introduction to entrepreneurship and innovation Guest Speaker: Fredrik Siren (Richen)

Tuesday 19 April

12.15–16.00

U4 (U142), Otakaari 1

Session 2: Opportunity identification and creation Guest speaker: Petri Martikainen (Posterfy, VividWorks, Sarasino)

Tuesday 26 April

12.15–16.00

U5 (U147), Otakaari 1

Session 3: Customer development, design thinking and the business model

Tuesday 3 May

12.15–16.00

The Studio, Betonimiehenkuja 5 C, 02150 Espoo

Session 4: Corporate entrepreneurship & innovation Guest speaker: Ainomaija Haarla (Gold & Green Foods, Samuji, Aalto University)

Tuesday 10 May

12.15–16.00

U4 (U142), Otakaari 1

Session 5: Funding and revenue models of entrepreneurial ventures

Tuesday 17 May

12.15–16.00

U4 (U142), Otakaari 1

Session 6: Pitching entrepreneurial ideas

Panel Judges: Moaffak Ahmed (Superhero Capital), Greg O’Shea (Aalto University)

Description of Sessions and readings Session 1: Course overview and introduction to entrepreneurship and innovation In this session we will first cover the structure, agenda and evaluation of the course. Attendance in this session is mandatory, as we will only assign students that are present to the groups in which you will be working throughout this course. We will discuss the basic concepts of entrepreneurship and innovation, their historical and more recent definitions and the perceptions revolving around them, as well as the motivations and challenges of entrepreneurs and of entrepreneurial teams. We will also host a guest speaker that will share with you his personal story and lessons learned during his entrepreneurial journey. Recommended readings: Chapter 1: “Introduction to Entrepreneurship” of recommended textbook Session 2: Opportunity identification and creation In this session we will start with a selected team’s presentation of their work on the challenge assigned during the previous session. We will then focus on the key concepts of opportunity identification and opportunity creation, and unpack the processes that underlie them. Groups will

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start practicing opportunity identification and creation during the class, which could form the basis for the entrepreneurial idea they will be developing throughout the course. We will also host a guest speaker that will share with you his personal story and learnings on these and other topics. Group assignment for Session 2: The Awareness Challenge Prepare a powerpoint presentation of maximum 10 minutes/ 10 slides with your results on the Challenge assigned during Session 1, and be ready to present them in class to your peers. Detailed instructions can be found on MyCourses. Required readings: Shane, S. & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217-226. Sarasvathy, S. D. (2001). What makes entrepreneurs entrepreneurial? Working Paper. Available at: http://www.effectuation.org/sites/default/files/research_papers/what-makes-entrepreneurs-entrepreneurial-sarasvathy_0.pdf Recommended readings: Kim, W. C., & Mauborgne, R. (2000). Knowing a winning business idea when you see one. Harvard Business Review, 78(5), 129-138. Chapter 2: “Recognizing Opportunities and Generating Ideas” of recommended textbook Session 3: Current approaches to entrepreneurship and innovation In this session we will start with a selected team’s presentation of their work on the challenge assigned during the previous session. We will then cover three currently popular approaches for the development of entrepreneurship and innovation: a) the lean startup, which helps you with the early contact with and development of customers, b) design thinking, which helps with radically creative and empathic development of solutions, as well as c) the business model canvas, which streamlines the process of developing a viable business model that can best deliver your entrepreneurial idea. You will have the opportunity to practice some of these techniques in the classroom. Group assignment for Session 3: The Billion Dollar Idea Challenge Prepare a powerpoint presentation of maximum 10 minutes / 10 slides with your results on the Challenge assigned during Session 2, and be ready to present them in class to your peers. Detailed instructions can be found on MyCourses. Required readings: Blank, S. (2013). Why the lean start-up changes everything. Harvard Business Review, 91(5), 63-72. Brown, T. (2008). Design thinking. Harvard business review, 86(6), 84. Chapter 1 of: Osterwalder A. & Pigneur, Y. (2010). Business Model Generation: A handbook for visionaries, game changers, and challengers. Wiley. Available at: http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf

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Recommended readings: Chapter 6: “Developing an Effective Business Model” of recommended textbook Session 4: Corporate entrepreneurship & innovation In this session we will start with a selected team’s presentation of their work on the challenge assigned during the previous session. We will then focus on corporate entrepreneurship and the ways that you can be an agent of change even within the boundaries of an established organization. We will have a guest speaker, Ainomaija Haarla, who has extensive experience on corporate entrepreneurship and who will lead a live case during class. A short lecture will follow, to further explain the process and issues around corporate entrepreneurship and innovation. Group assignment for Session 4: The Corporate Innovation challenge Prepare a powerpoint presentation of maximum 10 minutes / 10 slides with your results on the Challenge assigned during Session 3, and be ready to present them in class to your peers. Detailed instructions can be found on MyCourses. Required readings: Christensen, C.M. & Bower, J.L. (1995). Disruptive technologies: Catching the wave. Harvard Business Review, 73(1), 43-53. Lepore, J. (2014). The disruption machine. What the gospel of innovation gets wrong. The New Yorker. Available at: http://www.newyorker.com/magazine/2014/06/23/the-disruption-machine Burgelman, R. A., & Välikangas, L. (2005). Managing internal corporate venturing cycles. MIT Sloan Management Review, 46(4), 26-44. Session 5: Funding of entrepreneurial ventures In this session we will start with a selected team’s presentation of their work on the challenge assigned during the previous session. We will then cover topics related to different options for the funding of new ventures, issues to consider when looking for funding, cases of successful and unsuccessful venture “deals” over the years, as well as advice on pitching your entrepreneurial idea in the last session. You will also have the opportunity to craft a very short pitch and practice it in class. Group assignment for Session 5: The Crash Test Challenge Prepare a powerpoint presentation of maximum 10 minutes / 10 slides with your results on the Challenge assigned during Session 4, and be ready to present them in class to your peers. Detailed instructions can be found on MyCourses. Recommended readings: De Clercq, D., Fried, V. H., Lehtonen, O., & Sapienza, H. J. (2006). An entrepreneur's guide to the venture capital galaxy. The Academy of Management Perspectives, 20(3), 90-112. Zider, B. (1998). How venture capital works. Harvard business review, 76(6), 131-139.

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Chapter 8: “Assessing a New Venture’s Financial Strength and Viability” of recommended textbook Chapter 10: “Getting Financing or Funding” of recommended textbook Session 6: Pitching entrepreneurial ideas In this session we will have over our guest speaker, successful entrepreneur and investor Moaffak Ahmed of Superhero Capital, as well as Greg O’Shea, serial entrepreneur and Aalto researcher, included in the panel that will judge your pitches and give you further suggestions for improving them. You will have to present your idea in less than 3’ to the jury and then a Q&A session of 10 minutes will follow after each pitch. While one (maximum two people) are advised to do the pitch, all group members should be present and ready to participate in the Q&A session. Group assignment for Session 6: The final pitch Provide a videotaped presentation of the entrepreneurial idea that you have developed with your group, after answering the questions of the template that will be given to you. Also be prepared to deliver a live 3’ pitch of the idea during the following session. The pitch needs to have substance (so you will need to perfect your idea) as well as good delivery (so you will need to practice your pitching skills)! Required readings & videos: Kauffman Founders’ School, Powerful Presentations video series Available at: http://www.entrepreneurship.org/Founders-School/Powerful-Presentations.aspx

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Instructors

Course leader: Prof. Myrto Chliova, PhD

Myrto is Assistant Professor of Entrepreneurship at the Aalto University School of Business, responsible for teaching the BSc course of Entrepreneurship and Innovation Management. Her research focuses on the ways that social value can be created through entrepreneurial action and the creation of new ventures. She studies both the actual effectiveness and the symbolic value of this phenomenon, also termed “social entrepreneurship”, using both quantitative and qualitative methods, and economic, sociological and psychological perspectives. Her work on the impact of microcredit on client entrepreneurs has been published at the Journal of Business Venturing and Frontiers of Entrepreneurship Research and has received the Journal of Small Business Management Award for the best paper on the topic of Public Policy in 2013. Myrto's latest research projects explore the emergence of the organizational category of social entrepreneurship, the conditions that enable the scaling of base of the pyramid ventures in developing contexts, as well as the outcomes of prosocial motivations of entrepreneurs. Myrto holds a PhD in Management, cum laude, from ESADE Business School in Barcelona. During her PhD, she has held visiting scholar positions at Wharton Business School in the US and Universidad de los Andes in Colombia. During her time in ESADE, Myrto has helped teach courses on Strategy, Entrepreneurship, Entrepreneurial Marketing, Social Entrepreneurship, and Statistics. She is also one of the authors of the book “Aprendiendo de las Empresas Sociales” published by ESADE’s Institute of Social Innovation. Myrto has an academic background in Business studies, having studied for her BSc in Marketing in the Athens University of Economics and Business, and received an MSc in Management with a focus on entrepreneurship, from Cass Business School of City University in London. Before joining the PhD program of ESADE, she had been working as a marketing executive for multinationals in the field of cosmetics and perfumes. She has also supported on a part-time basis the marketing of nascent tech startups in her native Greece.

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Teaching Assistant: Virva Salmivaara, PhD Candidate, M.Sc. (Econ.), M.Sc. (Pol. Sc.)

Virva is a PhD Candidate in Entrepreneurship at the Aalto University School of Business. Her doctoral thesis focuses on developing a novel multi-layered approach to sustainability-oriented entrepreneurship. It includes qualitative, quantitative and conceptual research on the conditions and processes of sustainable entrepreneurship on the EU, state and community levels. The thesis will be completed in 2017. Virva received a Master of Social Sciences majoring in communication from the University of Helsinki in 2002; and a Master of Business from the Helsinki School of Economics and Business Administration in 2008. Prior to starting her doctoral studies in 2013, she pursued a career in corporate communications, brand management and corporate responsibility for over a decade and held a position as the Senior Vice President for these functions in a multinational corporation. Simultaneously with her doctoral research, Virva has carried out policy work for the OECD by assessing policies on ‘inclusive entrepreneurship’ (namely the inclusion of the unemployed, youth, women, seniors, and immigrants) in Finland.