Course objectives

Managers invest a lot in developing new innovations --- but should those resources be spent renovating existing products instead?

How do I balance “renovating” my existing product line effectively with innovating to maximize the impact of my company, organization, product, or service?

We witness fascinating innovations everywhere. Yet, whether it will meaningfully reach and be used by a broad set of customers --- thereby making the greatest long-term impact --- is a question of whether the product line is effective in facilitating the diffusion of innovations.

We explore these questions in the spirit of former Coca-Cola CMO Sergio Zyman’s idea of “renovating” an innovation --- “… true renovation is making changes to something that already exists, leaving the essence intact but giving it a new vigor and perhaps a new life.”

The central questions of the course are (i) how should one assess the quality of an innovation, (ii) how and when should a product or service be extended within a category and (iii) how and when should a product line or service be broadened into adjacent product categories. We explore these fundamental questions to uncover how to manage a product or service sustainably, and as the consumer and competitive landscape evolves and changes over time.

Career focus

Students looking at careers with any element of product management, marketing, business strategy, and innovation will learn essential frameworks and tools that will serve as a compass for decision making. The course will also be of interest to investors and stakeholders who need to assess the possible impact of these decisions.

The course is appropriate for students anticipating a career in which sensing opportunity for new products/services/business models and successfully bringing those ideas to market are key activities --- corresponding to the “innovation” part of the course title.

Another key feature of the course is that it addresses the notion of “renovation” of the product line over time. We seek out to understand how to successfully manage and sustain a company and the product life cycle over time for long-term success. The course will cover a wide variety of contexts and thus be useful for those starting their own companies or joining an established organization.

Course content and organization

The course is organized around three modules. Many of the cases were newly developed within the last past few years. These are augmented by several “classic” cases which have served as the foundation of courses on product policy at a host of business schools and companies around the world.

For many discussions, we will take a longitudinal look, i.e. examining the evolution of a story, rather than just a snapshot. Accordingly, there are many (B) case class handouts and/or slides to uncover the trajectory of the story.

MODULE 1: Why “AND” renovation? The Challenge of Market Evolution

This module maps out the key issues of the course focusing on the importance of the management of the product line over time. We will gain the dynamic perspective of assessing and understanding the development/trajectory of companies and products/services over time --- and the need for innovation AND renovation as a company evolves.

We discuss a case on Peloton in which the company nicely creates a category --- in class we will delve into later developments. We also cover the full history of Apple’s MP3 player, the iPod, which some have called “The Perfect Thing,” as well as the trajectory of the Pokemon Company, which has been able to sustain the popularity of the franchise for several decades. Our discussion into Carvana’s pioneering of the entirely on-line car buying experience sets the stage for our subsequent discussion into when and how to effectively innovation, and when and how to renovate.

MODULE 2: Sensing and Assessing Market Opportunity.

In this model, we will set out to understand useful approaches to judging the opportunity for success as well as familiarize ourselves with basic theoretical perspectives on the product life cycle. Cases discussed include Casper Sleep, a DTC mattress company, that sought to evolve over time from a single mattress offering to the “Nike of Sleep.” Patch attempted to make a marketplace for carbon credits, and sought to expand its scale and scope.

These examples demonstrate how assessing marketing opportunities comes hand-in-hand with foresight for perspective growth and subsequent renovation. Questions we discuss in this module include: What are the sources of marketing capital that companies and brands can use to successfully launch --- as well as subsequently renovate --- their products? How can one best learn quickly at the concept stage about the subsequent likely trajectory of a product or service?

MODULE 3: Product Line Extensions

Product lines tend to get longer over time: extending lines are part of the tool kit necessary in managing a product or service over time, and in satisfying customer needs more precisely and blocking competitive advances. Cases include Evernote, an online notetaking app. We will discuss the company’s reconfiguration of its product line and pricing in response to changes in the competitive landscape and consumer needs.

Some questions we consider in this module include: When does a product need a refresh? How long should the product line be? When should one worry about cannibalization? When not? How far can one stretch a brand?

MODULE 4: Product Line Breadth/Extending the Brand

While Module 3 examines line evolution within a given category, Module 4 looks at evolution of the company’s offering across product categories. Cases include Topgolf as it extends from its golf range/bar/entertainment complexes into related categories, e.g. golf simulators leased to hotels and casinos and “pop up” events at major sports stadiums.

We will continue to emphasize both empirical and theoretical perspectives to gain a grounded understanding of questions such as: Can companies manage the portfolio so that the different categories are complementary rather than competing? How far can one stretch a brand as it expands in scope?

The three modules taken together provide a comprehensive look at both the Innovation and Renovation of the product line over time, as well as at how to Optimize the Product Line Architecture.

Grading will be 50% class participation and 50% a final exam.

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