Digital Innovation and Entrepreneurship

Amsterdam Business School

University of Amsterdam
2021-2022

General Information
Instructor: Jonathan Sitruk
Email: [email protected]
Virtual Office hours: Tuesdays 15:00-16.30

Teacher's Assistant:
Bart van’t Riet
Email: [email protected]

Upon completion of the course, students should

§ Realize how digital innovation is shaping many important industries and has changed the
innovation landscape.
§ Understand how open innovation, network effects, and data-driven innovation are all
important aspects of digital innovation that need to be addressed.
§ Comprehend how using digital innovation properly can help design and develop successful
entrepreneurial ventures.
§ Acquire the ability to work in a team and design, develop, and deliver a group project. Any
budding entrepreneur needs this skill.
§ Apply theoretical constructs learned during the course in order to see their practical
implications.

Course Material
Mandatory:
§ Parker, G. G., Van Alstyne, M. W., & Choudary, S. P. (2016). Platform Revolution: How
Networked Markets Are Transforming the Economy and How to Make Them Work for You.
WW Norton & Company.

Optional:
§ Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, Progress, and
Prosperity in a Time of Brilliant Technologies. Norton & Company.
§ Hurwitz, J., & Kirsch D. (2018). Machine Learning for Dummies, IBM Limited Edition.
Wiley Publishing.

Grading
1. Group Term Project (40%)
2. Final Exam (60%)

Attendance and Participation

It is crucial that you attend class regularly and participate actively. Concepts we cover are subtle
and challenging. Being passive will limit your learning while active participation will deepen your
knowledge as well as enhance the learning of others.

Participation consists of answering questions from the professor and others as well as asking
questions, volunteering opinions, and describing personal experiences. Make sure each contribution
adds new information and does not simply subtract air time.
You are expected to have read or watched the assigned materials before class. Materials should be
read at the level of comprehension at which it is possible to give coherent analyses or, failing that,
be able to ask informed questions. Your rich experiences and backgrounds should make it possible
to consider multiple ideas and examine the issues from a wide variety of perspectives.

Guest Speakers
In addition to the traditional lecture/seminar breakdown, the course adds in depth industry
perspectives using guest speakers. We are lucky to welcome 3 guest speakers this year. These high
achievers are taking precious time from their jobs to come and speak with you about a specific
related theme.

Be punctual for their talks. Be smart and explore their company beforehand to have a better idea of
the questions you may want to ask regarding their experience or the challenges their organization
faces. You are expected to ask pertinent questions and interact with our guest.

Group Term Project – Group-based activity

A group project is a key part of this course. Teams of 5 will form during the first week of class, and
students may select their own teammates. Every team member is expected to participate in the
group project. Teams can determine how members will contribute. For example, all members can
work together, or members can focus on graphics, writing, interviews, and analysis separately. Task
allocation is entirely up to the group as long as every group member participates equally.

The deadline for submitting the group term project is Sunday 18 October 2020 at 23h59. Any late
submission will not be graded. Upload the final project to the designated Canvas area.

Workshops and Project Progress Report – Group-based activity

You will have ample to work on your group term project during workshop. The workshop sessions
will cover different aspects of the group term project that you need to turn in. Workshops dedicated
to the group term project will be structured in an exercise-based manner allowing students to
gradually build their term project while applying concepts seen in class.

Students will thus be submitting Project Progress Reports, that is to say building blocks of the
group term project. The professor will introduce each part and invite students to start developing
them during the workshop.

Your team will have until the Sunday 12pm (noon) after the workshop to submit your project
progress report in the designated Canvas area.

Feedback Fruit Peer Evaluation – Individual-based activity

Prior to each workshop and during your own time, you will individually give two other teams
feedback regarding their Project Progress Reports, which will have been developed during the
workshops and submitted at 12pm Sunday (see previous point).

Using Feedback Fruit—a tool integrated in Canvas—students will provide feedback regarding the
quality of their peer’s Project Progress Reports. Students will judge their peer on various provided
metrics and will give open ended feedback when prompted.

Being capable of evaluating others’ work is a fundamental skill any bachelor student should
possess, especially one considering an entrepreneurial career. The benefits are threefold: 1) you can
benchmark your idea against others’, 2) you can get inspiration from others’ work to make your
work of higher quality, and 3) you will get the feedback from other students on the advancement of
you own project. If every student plays the game professionally and ethically, it is a win-win.
You are expected to upload the Feedback Fruit Peer Evaluation in the designated Canvas area by
Monday 12am (midnight). This gives you 1.5 days (from Sunday to Monday) to evaluate your peer.
If done right, evaluating the two Project Progress Reports should take you between 40-60 minutes
(20-30min for each report).

At the beginning of the lecture and based on the Feedback Fruit Peer Evaluation, the professor will
give non-team specific feedback regarding the progress the class is making as a whole on their
projects. The professor will point out good and not so good cases. Students will also have access to
their personal Feedback Fruit Peer Evaluation in order to see where there is room for improvement.

Collaboration on Assignments
Collaboration is encouraged when going over the reading material and working on your group term
project. Collaboration will be especially valuable in summarizing what you read and picking out
key concepts. Collaboration is NOT permitted on any test or exam.

Plagiarism
Simple rule: don't do it. Although I encourage study groups, it's simply part of academic integrity to
claim credit only your own unique contribution. Real people have received a failing grade for
plagiarism in this class. If in doubt, cite references for ideas and always quote text directly lifted
from another document. For written submissions, be sure to cite references for any related work that
provided the basis for your ideas.

Final Exam
The exam will consist of computer-based multiple-choice exam that will give you the opportunity
to apply the concepts you learned in class. It will be straightforward, fair and… hopefully fun J.

Detailed Outline
Week #1:
Lecture: Introduction
Overview:
- Course outline: expectations, timetable, readings, grading, etc.
- Introduction: why do platforms matter?
Readings (after class):
- 60 countries’ Digital Competitiveness, Indexed. HBR (2017)
- Parker et al. (2016), Chapter 1–Today
- Mollick (2019) – 10(ish) slide pitch. Accessible at: https://bit.ly/2EfdeTP

Seminar:
Guest Lecture: Boudewijn Wijnands from Deedmob
- Entrepreneurial journey
- Growth and community development

Week #2:
Lecture: Innovation and Open Innovation
Overview:
- Innovation
- Open Innovation
- Choosing between competitive markets & collaborative communities
- Open Strategy
- Where should organizations be more open?
Readings:
 - Boudreau & Lakhani (2009). How to manage outside innovation. MIT Sloan management
review, 50(4), 69-76
- Chesbrough, & Appleyard (2007). Open innovation and strategy. California management
review, 50(1), 57-76.
- Parker et al. (2016), Chapter 7–Openness
Optional Readings:
- Barnett (2016), Leading Amidst Change: Why Strategy Matters. Accessible at:
https://bit.ly/2fmQ6Gl
- Chesbrough, H. W., and A. R. Garman, “How Open Innovation Can Help You in Lean
Times.” Harvard Business Review 87 (2009), issue 12, pp. 68–76.
- Chesbrough, H., Open Innovation: The New Imperative for Creating and Profiting from
Technology (Boston: Harvard University Press, 2003).
- Driverless Cars Will Change Auto Insurance. Here’s How Insurers Can Adapt. Harvard
Business Review Online. Accessible at: https://bit.ly/2Aylyfd
- For Haier’s Zhang Ruimin, Success Means Creating the Future. Accessible at:
https://whr.tn/2EiTf6x (Podcast).
- Quora (2019), How Is Digital Transformation Different From Change Management?
Accessible at: https://bit.ly/2UuM3Lv

Seminar:
Workshop #1: Industry Analysis
- Challenges of the industry
- Frustration regarding current solutions

Week #3:
Lecture: Network Effects: Building Platforms & Communities
Overview:
- Network Effects & Network effects aren’t enough
- Dethroning established platforms
- How to design a platform?
Readings:
- Hagiu & Rothman (2016), Network Effects Aren’t Enough. – Hagiu, Rothman HBR 2016
- Parker et al. (2016), Chapter 2–Network Effects
- Suarez & Kirtley (2012). Dethroning an established platform. MIT Sloan Management
Review, 53(4).
Optional Readings:
- Aguiar & Waldfogel (2019). Platforms, promotion, and product discovery: Evidence from
Spotify playlists.
- Hagiu & Wright (2012). Do you Really Want to be an eBay?, HBR
- Kraut & Resnick (2012). Building Online Communities, Chapter 2–encouraging
contribution to online communities (Ren et al., 2012), Accessible at:
http://kraut.hciresearch.org/books
- Operti (2019). Tweet – Accessible at: https://bit.ly/2XTnQ3R
- Parker et al. (2016). Chapter 3–Architecture
- Powell (2018). A brief history of Australian food delivery services, Accessible at:
https://bit.ly/2DFCwwg
- Zheng (2015). Three Paradoxes of Building Platforms , Accessible at– Ming Zeng, Alibaba:
https://bit.ly/2TH6Kqi

Seminar:
Guest Lecture: Marijn Pijnenborg from Funda (among others)
 - Entrepreneurial journey
- Investment
- Platforms

Week #4: NO LECTURE OR SEMINAR

Week #5:
Lecture: Platform Launch & Business Model
Overview:
- Launch, Monetization, & Growth
- Managing your hub economy
- Failure: Reasons platforms fail
Readings:
- Lansiti & Lakhani (2017). Managing our Hub Economy. Harvard Business Review Online.
Accessible at: https://bit.ly/2wGuK17
- Parker et al. (2016), Chapter 5–Launch
- Parker et al. (2016), Chapter 6–Monetization
- Van Alstyne, Parker & Choudary (2016). Six Reasons Platforms Fail – HBR Digital Article.
Accessible at: https://bit.ly/1SCt0bT
Optional Readings:
- Brown (2015). Airbnb – The Growth Story You Didn’t Know – Accessible at:
https://bit.ly/1JLiMmG
- Gupta (2008). What is the Value of a Free Customer – HBR 2008
- Rich, Motoko (2010). With Kindle, Publishers Give Away E-Books to Spur Sales,
NYTimes.com, Accessible at: https://nyti.ms/2TxjMXB

Seminar:
Jan Joris Vereijken from Crunchr: data analytics

Week #6:
Lecture: Data-Driven Innovation
Overview:
- Failure Modes of Platforms
- Metrics: Platform critical success factors
- Expansion strategies
- Growth Ladder
Readings:
- Davendport and Rajeev (2018). HBR - Artificial Intelligence for the real world don't start
with moon shots
- Hao (2019) – MIT - This is how AI bias really happens—and why it’s so hard to fix
- Hurwitz & Kirsch (2018), Chapter 1–Understanding Machine Learning
- Shneiderman, B. (2016). Opinion: The dangers of faulty, biased, or malicious algorithms
requires independent oversight. Proceedings of the National Academy of Sciences, 113(48),
13538-13540.
- Zeng (2018). HBR - Alibaba and lessons from China's innovative digital giant
Optional Readings:
- Brynjolfsson and McAfeee (2014), Chapters 4, 5, and 6
- Parker et al. (2016), Chapter 9–Metrics
- Shields (2018). Integrating Analytics in Your Organization: Lessons from the Sports
industry. MIT Sloan Management Review, 59(2), p. 108-115.
Seminar:
Workshop #2: Platform Idea
- Platform idea
- Platform architecture
- Open innovation
- Value creation
- Network effects

Week #7:
Lecture: Entrepreneurial Strategy & Crowdfunding
Overview:
- Building new markets
- Taking existing markets
Readings:
- Gans, J. S., Stern, S. (2017). Multiple Paths to Value: Test Two, Choose One. IESE Insight
- Parker et al. (2016), Chapter 10–Strategy
- Van Alstyne, M. W., Parker, G. G., & Choudary, S. P. (2016). Pipelines, platforms, and the
new rules of strategy. Harvard Business Review, 94(4), 54-62.
- Younkin and Kashkooli (2016): Which problems does crowdfunding solve?
Optional Readings:
- Dushnitsky and Zunino (Forthcoming) Crowdfunding and Entrepreneurial Finance.
Handbook of Crowdfunding Research
- Mollick (2019) – Tweet – Accessbile at: https://bit.ly/2u03ckH
- Parker et al. (2016), Chapter 12–Tomorrow

Seminar:
Workshop #3: Launching and Growing a Platform
- Platform launch
- Platform growth
- Platform failure

Week #8: Final exam