MGMT 6520D Class 1 Learning Summary

This document summarizes the key learning points from the first class of MGMT 6520D, focusing on building innovative companies to achieve high performance. The discussion covered challenges in innovation, differences between managing established businesses and new ventures, and the 3-horizon concept (H1, H2, H3) using Google as an example. The class also explored four zones of business activities, performance implications across the horizons, and the timing of innovation. The session concluded with an analysis of Lenovo's acquisition of Motorola through the lens of the 3-horizon model, evaluating its strategies and lessons learned.

BUILDING INNOVATIVE COMPANY TO ACHIEVE HIGH
PERFORMANCE
MGMT 6520D (L1)
Roger Chen
Class 1
(June 22th, 2017)
(Learning Summary/Requirements)
1. We first discussed diversified Industry case. The key learning requirement from this
case study is to understand various challenges that companies may encounter when
pursing innovation. This introductory case study helps to understand the complexity
and difficulties of engaging in innovation in established companies.
2. We also discussed differences between managing established business in existing
companies and managing new, innovative ventures. These differences require
companies to develop different management systems to handle established and new
venture business.
3. We also discussed 3-horizon concept, and used Google example to illustrate the
characteristics of H1, H2 and H3 businesses.
4. Relating to the 3-Horizon concept, we also discussed Four zones (or Four types of
business activities in established companies).
5. Then we used a table (from McKinsey) to illustrate different status (or performance)
in H1, H2 and H3, and its implication to companies.
6. We also discussed 2 important questions: when is a good time to innovate (answer:
typically when H1 is good), and the level of challenges/difficulties of managing H2 or
H3 business (i.e., between H2 and H3, which is more difficult to create and manage---
the common situation is that H2 is more challenging. You need to articulate the
reasons).
7. We also discussed a hand-out suggesting some good practices on how to manage H2
businesses,
8. Finally, we discussed Lenovo’s 3 horizon business, examined Lenovo’s decision on
acquiring Motorola and its strategies of managing Motorola after the acquisition. We
used the 3 horizon concept, more specifically, from growing H2’s perspective to
evaluate Lenovo’s acquisition of Motorola and the lessons from this acquisition.