• Session: Summer 2018 In-Residence
• Faculty: Dr. Katherine Ryan, kcryan@indiana.edu
• Open office hours as needed. Email or see me before/after class.

Course Description

This graduate course will enable you to explore principles, challenges, and strategies associated with effective organizational leadership. We will address four broad leadership competencies: vision, motivation, talent management, and change management. Learning outcomes will be achieved through readings, class discussions, case analyses, a simulation experience, and guided reflection of personal leadership capabilities.

Learning Outcomes

By the end of this session, you will have the capacity to:

• apply strategies for working effectively with others, in both a leadership role and as part of a team
• identify and interpret information relevant to solving a given organizational leadership problem
• plan, manage, and execute organizational improvement initiatives
• deliver ideas and facts in clear, concise, and compelling business presentations

Materials and Deliverables

All course information, assignment deadlines, and materials will be posted on Canvas or distributed in class.

Please complete assigned readings prior to class. Final grades will be assigned according to the default scale on Canvas.

Participation

Prepared and active participation is essential for completing this course successfully. This is the most valuable element of our shared learning experience and as fellow professionals, I know you appreciate thoughtful, challenging, and informed discussions. If, at any time, you feel that our shared norms of professionalism, civility, courtesy, or respect for diverse perspectives have been violated, please bring that to my attention immediately, and we will address and resolve the situation.

Policies and Resources

• Student Code of Conduct
• Special Accommodations
• Religious Observances
• Sexual Misconduct
  • As your instructor, one of my responsibilities is to create a positive learning environment for all students. Title IX and IU’s Sexual Misconduct Policy prohibit sexual misconduct in any form, including sexual harassment, sexual assault, stalking, and dating and domestic violence. If you have experienced sexual misconduct, or know someone who has, the University can help. If you are seeking help and would like to speak to someone confidentially, you can make an appointment with:
    • The Sexual Assault Crisis Services (SACS) at 812-855-8900 (counseling services)
    • Confidential Victim Advocates (CVA) at 812-856-2469 (advocacy and advice services)
    • IU Health Center at 812-855-4011 (health and medical services)
  • It is also important that you know that Title IX and University policy require me to share any information brought to my attention about potential sexual misconduct, with the campus Deputy Title IX Coordinator or IU’s Title IX Coordinator. In that event, those individuals will work to ensure that appropriate measures are taken and resources are made available. Protecting student privacy is of utmost concern, and information will only be shared with those that need to know to ensure the University can respond and assist. I encourage you to visit stopsexualviolence.iu.edu to learn more.

Class Notes

Day 1 (Sunday)

• Course introduction, review of ECBLS Student Guide, Preparation & Readings for Monday
• Welcome Reception & Dinner

Day 2 (Monday)

• Class Session: I-Opt, High-Performance Teams
• Technology Session: Introduction to Canvas, Zoom, and IU Box
• Class Session: Case Study, Preparation & Readings for Tuesday
• Group Dinner

Day 3 (Tuesday)

• Visit to Cook Headquarters
• Class Session: Talent Management
• Guest Session: Leadership Panel
• Class Session: Talent Management & Motivation, Preparation & Readings for Wednesday

Day 4 (Wednesday)

• Class Session: Leading & Managing Organizational Change; Case Study & Presentation; Preparation & Readings for Thursday
• Stone Age Institute (on-site all day; lunch included)

Day 5 (Thursday)

• Class Session: Leadership Perspectives, Simulation, Preparation & Readings for Friday
• Group Dinner at Uptown Cafe

Day 6 (Friday)

• Class Session: Course Summary and Review of Learning Outcomes
• Class Session: Value Chain Course Introduction 

Final Exam

• There is a final exam for this course. 
• Due date and instructions will be provided during the in-residence. 

Course Description

This course will present an overview of the economic foundations of the life sciences and healthcare value chain. In this course we will explain the idea of a business value chain with attention to underlying economic principles, and then apply those concepts to a specific segment of the life sciences or healthcare industries. It is designed to provide graduate students from a variety of business and non-business backgrounds with a solid introduction to the economic foundations of life sciences, with a special emphasis on healthcare. This course is intended to serve as a starting point for students to develop an inter-disciplinary discussion between business, life sciences and healthcare services industries.

Student Learning Outcomes

After completing this course, students working as individuals and in teams will be able to:

• Understand the core concept of value chain and be able to apply the concept and related tools to specific examples in the life sciences and/or healthcare industries.
• Examine a range of value chain issues in specific healthcare-related industries in order to broaden the understanding of each of these industries including the important issues/trends being faced there.
• Explore the role of “disruptive innovation” as a vehicle for improving the current configuration of the healthcare value chain.
• Apply available business research tools and value chain concepts to complete a detailed healthcare industry analysis with a specific focus on several companies within that industry, as well as the potential for disruptive innovation.
• Demonstrate mastery of value chain concepts and tools as they apply to health care related industries.

Teaching Strategy and Rationale

In this class, the goal is to use the online course environment to encourage and support a dialogue between students from a variety of backgrounds as we explore the financial underpinnings of the life sciences and healthcare value chain. One important element of the course design is the application of classic value chain concepts and tools to contemporary healthcare concerns. This provides a common body of knowledge and ideas which will be used to frame subsequent discussions for the class. Another teaching strategy in the class is the use of a regular, synchronous online meeting to provide students with an opportunity to “connect” with each other and the faculty and to ask relevant questions that may not be easily answered through asynchronous activities. We may also use these sessions to introduce students to subject matter experts in the specific areas being covered during the session. All synchronous sessions will be recorded for students unable to attend the actual session. Finally, this course will focus on developing students’ ability to apply these analytical principles to a specific industry. The final project will require just such a forward looking analysis and will emphasize the relevance of the course concepts to real business issues.

Assessment

Final grades in the course are assigned based on performance using the following weighting scheme:

• Value Chain Analysis Project (33%) Student teams will be asked to identify a healthcare industry segment, and to use  business research tools to: (1) create a value chain assessment of that industry, with an emphasis on profit pools, (2) to identify three firms within that industry and provide an assessment of the relative positions (i.e. strengths, weaknesses, etc.) of those firms within the industry, and (3) to provide a forward-looking assessment of a company with an emphasis on the most important problem/challenge facing the industry and the potential role of “innovative disruption” to address that issue.  There are several components to this project which are scheduled for delivery throughout the course and described in the schedule below.  (Called “Project” in the schedule below.)
• Zoom Sessions (20%) Zoom is a synchronous online meeting tool used every week during the course to summarize, engage in discussion and take time to explore any questions or issues that students may have.  We will also use the Zoom meeting to introduce upcoming material.  At the beginning of the course, students will be given a poll to determine the most convenient meeting time for the sessions.  Each session will be recorded so those unable to attend at the scheduled time will be able to review it.  If unable to attend (or actively participate) in the session, students can still receive credit for the session by reviewing the recording and writing a brief (one page) summary of the session.  This alternative write-up must be submitted by the end of the last day of the module during which the session occurred (Usually Saturday evening, unless otherwise noted in the course calendar.)
• Discussion Forums (13%) This will be a second means to promote class interaction beyond the Zoom sessions.  There are two components to this score.  The first is participation in the forums and class discussions (i.e. did the student make contributions, read other students’ work and make relevant, appropriate professional replies), the second is the quality of the participation (i.e. were the contributions insightful, did they demonstrate a real synthesis of material, did they add a valuable perspective to the class discussion, etc.). On Canvas, look on the Discussion topic pages for specific details as to each discussion.
• Final Exam (33%) The final exam for this course can be taken anytime during the last module.  Students will have two hours to take the exam once downloaded, while having the option to select any two hours during the week in which to take the exam.  The exam is exclusively an individual deliverable.

Course Policies

Academic Misconduct. There are many forms of academic misconduct, and all are taken seriously in this class. The expectation of the faculty is that each student will conduct themselves in a way that in spirit and detail is congruent with the Kellley Student Honor Code. For details see the following:

Faculty leading this course expects that EVERY CONTRIBUTION made by a student or team is original work (or that the origin of the work is clearly cited.) This includes:

1. Team Work. In the case of group assignments, the work submitted is to be that of your team ONLY. Your team is not to receive any information on an assignment from members of other teams. Likewise, you are not to provide information to members of other teams. If your team's assignment is judged to be highly similar to that of another team, both teams will be held equally culpable and will be dealt with accordingly. Penalties range from a "0" on the assignment with notification of the chair of the program in which the student is enrolled, to an F in the course and notification of the appropriate school and university administrators.
2. Individual Work. Individual assignments are to be done completely on your own. Unless written directions indicate otherwise, you are not to accept information or materials from anyone and you are not to provide information or materials to anyone. If your assignment is judged to be highly similar to that of another student, both students will be held culpable.  In today’s world it is very easy to search the web and cut and paste responses to a wide range of deliverables (from forums to final papers).  Such cutting and pasting, without proper attribution to the source, is another example of academic misconduct.  If any submission is judged to be highly similar to that of an unreferenced external source, the submitting student will be held culpable of academic misconduct.  Penalties are the same as above.     
3. Sharing Deliverable Content Information. You are not allowed to share content information or materials about a deliverable from a class session with anyone who has not already submitted the deliverable (e.g., no sharing of answers to homework problems; no sharing of information about case discussions, etc.). Conversely, if you have not yet submitted a deliverable or attended a session, you are not to request/receive information or materials about that session from students who have already completed.  Both requesting and providing this kind of assistance are acts of academic misconduct.  Penalties are the same as above.
4. Deliverable Affirmation. Before you or your team turns in a write-up or a paper, you must affix a “deliverable affirmation.” (usually on the cover page or at the end of the document.)  This affirmation states the following: “I have neither given nor received unauthorized aid on this assignment.”

The key is honesty in all areas of your behavior in this course—whether it is a forum post (posting something as your original work that was not), a Zoom session make-up (writing as though you reviewed a session when you did not),  a paper (not using original work or failing to cite sources), or an exam (using assistance). The list here should not be considered exhaustive—so please speak to the faculty if you have any questions at all.  

Late Work:  Submitting work on time is very important for the successful completion of this course. Please make every effort to submit work by the due date shown in the calendar below.  In general, submission mechanisms will be closed after the due date. Late submission is rare and only possible through prior arrangement with the instructor. All late work is subject to a penalty.

Grades:  We will follow the recommended grade distribution for graduate classes adopted by the Kelley School of Business faculty. That distribution of final grades is shown below.

MBA Grade Distribution

In the most likely scenario (15% A, 35% A-) the third category will contain 50% of the class. This means that median class score is an important performance line for assessing A/A- versus B+/B.

Formal Feedback: Grades will be posted throughout the course and formal feedback will be provided at the end. At ANY point in time if you are not confident about your performance, or want to discuss any issues or concerns, please reach out by email or phone. We will schedule a time to speak at length about your concerns at the first available opportunity.

Course Calendar

Section 1

Module 1 (during the opening in-residence week course)

• Making the Connections: Modern Healthcare as a Value Chain
  
  We will open the class with a face-to-face session together to discuss the connections that exist in the modern healthcare system, and how those connections can be conceptualized as a value network as well are assign project teams and conduct a survey to decide upon time for the Zoom Connect sessions.
  
  
• Reading (read after first session)
  • Why Is Innovation in Health Care So Hard? (HBR – Chapter 6, pp. 105–132)
  • Health Care Needs Real Competition. HBR article (online)

Module 2

• Course Introduction: Understanding the Value Chain Perspective
  

  In this module, students will be introduced to the classic ideas of competitive advantage and value chain analysis, which will be used as the starting point for our analysis of a range of healthcare related industries.

  This unit will also include an introduction to IU Library resources.
  
  
• Reading
  • "The Role of Disruptive Technology and Business Model Innovation in Making Products and Services Affordable and Accessible" (Christensen – Introduction and Chapter 1, pp. 1–36.)
  • Profit Pools: A Fresh Look at Strategy (online)
  • Apple Smartphone Profits, WSJ article (online)
    
    
• Suggested/Supplemental Reading
  • “Competitive Strategy: The Core Concepts,” chapter 1 in Competitive Advantage: Creating and Sustaining Superior Performance (Online—optional reading)
  • Bain_Brief_Healthcare_2020 (online)
  • Health-care profits, Economist article (online)
    
    
• Deliverables
  • Zoom Session 1
  • Discussion Topic 1:  Practice/Introductions

Module 3

• Innovation, Disruption, and How the Healthcare Value Chain will Change
  
  In this module students will be introduced to two models of innovative disruption and will be asked to evaluate the potential impact these models may have on changing the face of the health care value chain. 

• Reading
  • "The Technological Enablers of Disruption," (Christensen – Chapter 2, pp. 37–72.)
  • Fixing Health Care on the Front Lines, (HBR – Chapter 3, pp. 29–48.)
    
    
• Suggested/Supplemental Reading
  • CVS Deal is Leap of Faith, WSJ article (online)
  • Surgical intervention, Economist article (online)
  • New Threat for Health-Care Firms, WSJ article (online)
  • Healthy Returns, Economist article (online)
    
    
• Deliverables
  • Zoom Session 2

Section 2: A Value Chain Analysis of Key Healthcare Sectors

Module 4

• Hospitals and Health Care Systems
  

  This module focuses on hospitals and health care systems.  We will consider how Christensen’s model “fits” with some recent and relevant examples of front line innovation in this sector.

• Reading
  • “Disrupting the Hospital Business Model,” (Christensen – Chapter 3, pp. 73–110.)
  • “Fixing Health Care from the Inside, Today,” (HBR – Chapter 4, pp. 49–90.)
  • “Kaiser Permanente’s Innovation on the Front Lines,” (HBR – Chapter 5, pp. 91–104.)
    
    
• Suggested/Supplemental Reading
  • Prescription for the Future, Economist article (online)
  • Mayo’s Tricky Task, WSJ article (online)
  • The Problems at Hospitals Are Making Health Lines Blur, WSJ article (online)
  • Overseas Markets Beckon U.S. Hospitals, WSJ article (online)
  • Hospitals Invest in Outside Clinics, WSJ article (online)
  • Hospitals Fear Competitive Threat From Potential Walmart-Humana Deal, WSJ article (online)
  • What Does Knee Surgery Cost?, WSJ article (online)
    
    
• Deliverables
  • Zoom Session 3
  • Discussion Topic 2: The Kaiser Permanente Model
  • Project Part I:  Identify your Industry section, and the three firms to be considered in your analysis.

Module 5

• Physicians and Treatment Processes
  
  In this module we will consider “The Providers” and drill down further into the practice and process of health care delivery.  Does this approach work “with”, “against” or “in spite of” the value chain understanding of health care as a system?

• Reading
  • “Disrupting the Business Model of the Physician’s Practice,” (Christensen – Chapter 4, pp. 111–148.)
  • “Disruptive solutions for the Care of Chronic Disease,” (Christensen – Chapter 5, pp. 149–182.)
  • “Turning Doctor’s Into Leaders,” (HBR – Chapter 1, pp. 1–22.)
  • “Health Care Needs a New Kind of Hero: An Interview with Atul Gawande,” (HBR – Chapter 2, pp. 23–28.)
    
    
• Suggested/Supplemental Reading
  • Doctor’s Office of the Future, USA Today article (online)
  • Hightech Help for the Freelance Physician, WSJ Column (online)
  • Kaiser Permanente Cultivates the Digital Doctor-Patient Relationship, WSJ article (online)
  • From A&E to AI, Economist article (online)
    
    
• Deliverables
  • Zoom Session 4

Module 6

• The Pharmaceutical/Biotech Sector(s)

  In this module we introduce the pharmaceutical sector, beginning with key terms, market fundamentals, and key players.  We conclude the module by asking students to reflect on the pharma and biotech “value proposition” and assess the strength of that argument.  How well does Christensen’s premise reflect what’s been going in pharma the last few years?
  
  
• Reading
  • “The future of the Pharmaceutical Industry,” (Christensen – Chapter 8, pp. 261–310.)
  • No Magic Pills for the Drug Industry, WSJ article (online)
  • On Target, Economist article (online)
  • The Business of Saving Lives, WSJ article (online)
  • Pharma’s New Bind: Progress May Not Pay, WSJ article (online)
    
    
• Suggested/Supplemental Reading
  • R&D Costs Growing – Evaluate Pharma Report, Fierce Biotech article (online)
  • Growing Pains, Economist article (online)
  • Price War Squeezes Generic-Drug Firms, WSJ article (online)
  • Is the Big Clinical Trial Obsolete?, WSJ article (online)
  • Some Rejected Drugs Get a New Life, WSJ article (online)
  • Old Drugs Enjoy Second Life, WSJ article (online)
  • Drug Firms Learn from Hollywood, WSJ article (online)
  • Glaxo CEO Dispenses Bitter Pill to Fix R&D, WSJ article (online)
    
    
• Deliverables 
  • Zoom Session 5
  • Discussion Topic 3: Christensen’s Model and the Pharma Industry

Module 7

• Medical Device Sector
  
  In this module, the medical device sector will be the area of focus with some historic background as well as a review of the unique characteristics of medical devices. 

• Reading
  • “Future Directions for Medical Devices and Diagnostic Equipment,” (Christensen – Chapter 9, pp. 311–336.)
  • Silicon Valley Trails in Medical Tech, WSJ article (online)
  • Doing more with less, Economist article (online)
    
    
• Suggested/Supplemental Reading
  • Sales People in Surgery, Herald Times article (online)
  • Things are Looking App, Economist article (online)
  • All Sewn Up, Economist article (online)
  • A Solar Panel’s Inside Job, WSJ column (online)
  • Follow your nose, Economist article (online)
  • The biter bit, Economist article (online)
    
    
• Deliverables
  • Zoom Session 6
  • Project Part II:  Identify your data sources for the final project and the firm your team is developing recommendations for.

Module 8

• Who Pays and Who Sets the Rules?In this module we will discuss two very different healthcare sectors:  the Payers, and the Regulators.   

• Reading
  • “Disrupting the Reimbursement System,” (Christensen – Chapter 7, pp. 221–260.)
  • “Regulatory Reform and the Disruption of Health Care,” (Christensen – Chapter 11, pp. 369-418.)
  • A New Health-Care Model: Pay if it Works, WSJ article (online)
  • When Medical Innovation Meets Politics, WSJ article (online)
• Suggested/Supplemental Reading
  • Hospital Firm Retreats as Insurer, WSJ article (online)
  • Medical Miracles from FDA Inefficiency, WSJ article (online)
  • Insurers Sell Cheaper Health Plans, WSJ article (online)
  • Obamacare’s Failed Cost Controls, WSJ article (online)
  • Cigna Deal Shows Being a Health Insurer Isn’t Enough Anymore, WSJ article (online)
• Deliverables 
  • Zoom Session 7

Section 3: Important Trends in Emerging Healthcare Value Networks

Module 9

• The Future of Healthcare
  
  In this module, we will consider the most recent version of health care reform in the United States, and discuss where things could potentially go. In the discussion forum, students will discuss what is most likely to be the source of “disruptive innovation.”

• Reading
  • Why Disruptive Innovation is Still Healthcare’s Silver Bullet, CCI article (online)
  • Disruptive Innovation: Life After Clayton Christensen’s “Innovator’s Prescription.” Medtech Boston article (online)
    
    
• Suggested/Supplemental Reading
  • Guide to the Future of Medicine, Qmed Chart (online)
  • Disrupting Mr. Disrupter, Economist article (online)
  • Deloitte Top 10 Health Care Innovations article (online)
  • The Smart Medicine Solution, WSJ article (online)
  • An affordable necessity, Economist special report (online)
    
    
• Deliverables
  • Zoom Session 8
  • Discussion Topic 4: Greatest Potential for Disruptive Innovation

Module 10

• Project Presentations
  
  In this module, teams will present their analysis and recommendations during an extended Zoom Session.

• Reading
  
  • None
    
    
• Deliverables
  • Zoom Session 9
  • Project Part III: Final Presentations

Module 11

• Course Wrap-up:  Final Exam
  
  In this module, each student will take a final exam (sometime during the last week of the course). 

• Reading
  • None
    
    
• Deliverables 
  • Exam: (Two hour time limit.)
  • Submit Peer Feedback Form 

Course Materials

Required Textbooks

• Fixing Healthcare from Inside and Out. Harvard Business Review Collection.  Harvard Business School Press, 2011. ISBN  1422162583 (Referred to in the syllabus as “HBR”.)
• The Innovator’s Prescription: A Disruptive Solution for Health Care. Clayton M. Christensen, Jerome H. Grossman, and Jason Hwang.  McGraw-Hill, 2009.  ISBN 0071592086 (Referred to in the syllabus as “Christensen” in the syllabus.)

NOTE:  These books can be purchased new or used from many online sources. They are both also available in hardcopy or electronic formats for a variety of readers.

Required Readings

• “Health Care Needs Real Competition” by Leemore S. Dafney and Thomas H. Lee, MD, Harvard Business Review, December 2016
• “Profit Pools: A Fresh Look at Strategy,” by Gadiesh, Orit, Gilbert, James L., Harvard Business Review, May/June 98, Vol. 76, Issue 3
• “Apple Gets 92% of Smartphone Profit” by Ryan Knutson, Jonathan Cheng and Eva Dou, Wall Street Journal, July 13, 2015
• “No Magic Pills for the Drug Industry” by Charley Grant, Wall Street Journal, June 23-24, 2018
• “On Target”, The Economist, June 11, 2016
• “The Business of Saving Lives” by Tunku Varadarajan, Wall Street Journal, October 21-22, 2017
• “Pharma’s New Bind: Progress May Not Pay” by Denise Roland, Wall Street Journal, August 16, 2017
• “Silicon Valley Trails in Medical Tech”, by Michael S. Malone, Wall Street Journal, July 24, 2017
• “Doing more with less”, The Economist, November 11, 2017
• “A New Health-Care Model: Pay if It Works”, by Peter Loftus, Wall Street Journal, February 20.2018
• “When Medical Innovation Meets Politics”, by Kate Odell, Wall Street Journal, August 24, 2018
• “Why Disruptive Innovation is Still Healthcare’s Silver Bullet” by Michael Devonas, Clayton Christensen Institute for Disruptive Innovation, November 20, 2015
• “Disruptive Innovation: Life After Clayton Christensen’s ‘Innovator’s Prescription’” by Jessica Shanahan, Medtech Boston, November 4, 2014

Further Reading Suggestions (Optional)

• Redefining Healthcare: Creating Value-Based Competition on Results. Michael E. Porter and Elizabeth Olmsted Teisberg.  Harvard Business School Press, 2006.  ISBN: 1591397782.  Referred to in the syllabus as “Porter”.
• The Business of Healthcare Innovation. Lawton R. Burns (ed).  Cambridge University Press, 2012.  ISBN:  1107607779. 
• The Health Care Value Chain. Lawton R. Burns.  Jossey-Bass, 2002.  ISBN:  0-7879-6021-7.
• “Competitive Strategy: The Core Concepts,” chapter 1 in Competitive Advantage:  Creating and Sustaining Superior Performance.  Michael E. Porter.  The Free Press, 1985.  ISBN 06983750.
• Healthcare 2020. George Eliades, Michael Retterath, Norbert Hueltenschmidt and Karan Singh. Bain and Company, 2012.
• “Health-care profits”, The Economist, March 17, 2018
• “CVS Deal is Leap of Faith”, by Anna Wilder Mathews and Sharon Terlep, Wall Street Journal, December 5, 2017
• “Surgical intervention”, The Economist, February 3, 2018
• “New Threat for Health-Care Firms”, by Charley Grant, Wall Street Journal, January 31, 2018
• “Healthy Returns”, The Economist, July 28, 2018
• “Prescription for the Future”, The Economist, April 8, 2017.
• “Mayo’s Tricky Task: Revamp What Works”, by Ron Winslow, Wall Street Journal, June 3, 2017.
• “The Problems at Hospitals Are Making Health Lines Blur”, by Charley Grant, Wall Street Journal, January 20-21, 2018
• “Overseas Markets Beckon U.S. Hospitals”, by Melanie Evans, Wall Street Journal, April 23, 1018
• “Hospitals Invest in Outside Clinics”, by Melanie Evans, Wall Street Journal, September 26, 2017
• “Hospitals Fear Competitive Threat From Potential Walmart-Humana Deal”, by Melanie Evans, Wall Street Journal, April 2, 2018
• “What Does Knee Surgery Cost? Few Know, and That’s a Problem”, by Melanie Evans, Wall Street Journal, August 21, 2018
• “High-Tech Help for the Family Physician”, by Alyssa Finley, Wall Street Journal, March 25, 2017.
• “The Doctor’s Office of the Future”, by Jon Swartz, USA Today, June 17, 2017.
• “Kaiser Permanente Cultivates the Digital Doctor-Patient Relationship” by Melanie Evans, Wall Street Journal, May 28, 2018
• “From A&E to AI”, The Economist, June 9, 2018
• “R&D Costs Growing, Roche Shines and Novo High for ROI: It’s the EP Report”, by Ben Adams, Fierce Biotech, June 20, 2017.
• “Growing Pains”, The Economist, September 7, 2016.
• “Price War Squeezes Generic-Drug Firms” by Joseph Walker, Wall Street Journal, August 5-6, 2017
• “Is the Big Clinical Trial Obsolete”, by Lucette Lagnado, Wall Street Journal, May 30. 2018
• “Some Rejected Drugs Get a New Life”, by Denise Roland, Wall Street Journal, March 14. 2017
• “Old Drugs Enjoy Second Life”, by Denise Roland, Wall Street Journal, October 24, 2017
• “Drug Firms Learn from Hollywood”, by Denise Roland, Wall Street Journal, May 1, 2017
• “Glaxo CEO Dispenses Bitter Pill to Fix R&D”, by Noemie Bisserbie and Joann S. Lublin, Wall Street Journal, March 26, 2018
• “Sales People in Surgery”, by Sandra Boodman, Kaiser Health News, reprinted in The Bloomington Herald Times, November 20, 2016.
• “Things are looking app”, The Economist, March 12, 2016
• “A Solar Panel’s Inside Job”, by Daniel Akst, Wall Street Journal, January 7, 2017.
• “All Sewn Up”, The Economist, July 23, 2016.
• “Follow your nose”, The Economist, December 2, 2017
• “The biter bit”, The Economist, November 19. 2016
• “Hospital Firm Retreats as Insurer”, by Melanie Evans, Wall Street Journal, December 16, 2016
• “Medical Miracles from FDA Inefficiency”, by Allysia Finley, Wall Street Journal, January 27-28, 2018
• “Insurers Sell Cheaper Health Plans”, by Anna Wilde Mathews, Wall Street Journal, April 19, 2018
• “ObamaCare’s Failed Cost Controls”, by Joseph R. Antos and James C. Capretta, Wall Street Journal, December 21, 2017
• “Cigna Deal Shows Being a Health Insurer Isn’t Enough Anymore”, by Anna Wilde Mathews and Joseph Walker, Wall Street Journal, March 9, 2018
• “Disrupting Mr. Disrupter”, The Economist, November 28, 2015.
• “The Guide to the Future of Medicine”, by Bertalan Mesko, MD, PhD, Qmed, December 2, 2015.
• Deloitte Top 10 Health Care Innovations by Bill Copeland, Michael Raynor and Sonal Shah, Deloitte Healthcare Solutions, 2016.
• “The Smart Medicine Solution”, by Eric Topol, Wall Street Journal, July 8-9, 2017
• “An affordable necessity”, Special Report – Universal Health Care, The Economist, April 28, 2018

• Session: Nov. 26, 2018 through Feb. 9, 2019
• Faculty:Patrick E. Hopkins, peh@indiana.edu
• Graduate Assistant: Lindsey Dillard, ldillar@iu.edu
• School/Affiliation: Department of Accounting, Kelley School of Business

I. Course Description

• A696 is a graduate course in general accounting practice and theory, similar to the core accounting course offered in the traditional Kelley online MBA program. An important difference is this course will, when possible, emphasize issues and practices that are germane to life‐sciences companies. Fortunately, the structure and practice of accounting is fairly universal across companies and industries. However, we do sometimes observe idiosyncratic practices in life-science companies. Where practical, we will explore these differences.
• Both financial and managerial accounting will be included in this course. To achieve the below listed educational objectives, the course has been designed to use a mixture of problems and cases involving universal accounting concepts while also integrating real‐world information and decision‐making situations commonly encountered by life sciences companies.
• To be adequately prepared for this course, students should have satisfactorily completed a basic Introduction to Financial Accounting type course. If you do not have an accounting background, then I strongly recommend you complete (before the first day of A696) the Accounting Primer that is available at Canvas.

II. Student Learning Outcomes

• The objective of this course is to enable participants to better understand, acquire, and use the rich information set produced by most companies’ accounting systems. Students should also be able to identify the information produced by these accounting systems and request such information. The latter is not an insignificant achievement. As life sciences companies evolve—both in intra‐company terms, through a given products’ life cycle, and in inter‐company terms, through a changing commercial and regulatory environment—the information necessary to inform decisions must also evolve. This means information from existing sources must be sometimes evaluated differently and new sources of information developed. The knowledge gained in this course should enable each participant to better understand the role and capabilities of the accounting function as a source of information to guide the efficient allocation of resources across competing investments and projects.
• The course is intended to provide students with a general accounting skills set that is also informed by the life‐sciences context. The skill set includes a vocabulary, familiarity with the business transactions, understanding how those transactions are recorded, and recognizing how information is presented in financial statements. We will also focus on the ways that information internally produced and used by companies to assist managers in operational and strategic decision making.

III. Teaching Strategy and Rationale

• A precise accounting vocabulary is important for efficient communication, so the course will help students learn the vocabulary that accountants and managers use when approaching business issues. Knowing a precise accounting vocabulary will help you more clearly communicate with other managers and with potential investors.
• Understanding the role (and limitations) of accounting information in investment decisions and in project management is also important. Thus, we will link the accounting function to common accounting‐based performance benchmarks used by investors and managers (e.g., return on equity).
• Knowing what accountants can do and cannot do will help managers predict the likely financial effects of business decisions and also help managers to better leverage the capabilities of the accounting staff. Although managers technically do not “do” the accounting, “doing” accounting is the best means of understanding accounting. Therefore, students will be expected to demonstrate an understanding of the basic recording of common company transactions. Much of the accounting material will require students to demonstrate knowledge of how transactions and events ultimately affect reported performance and financial position.

IV. Assessment

• Here’s a breakdown of the various categories of assessment in the course:
  • 30% for My Business Course (MBC) Homework (count best 8 out of 10)
  • 30% for Pre-Class Preparation (count best 6 out of 8)
  • 40% for exams (2 @@ 20% each)
• As noted above, “doing” accounting is the one proven path to maximize the chance students will come closest to understanding accounting when this course is over. To provide you with incentive to “do” accounting, 30% of your grade will be based on successfully completing homework problems assigned via the My Business Course (MBC) online platform that accompanies both of our textbooks. A very nice thing about the MBC platform is that it provides immediate feedback on whether you successfully answered the exercises and problems. If you don’t correctly answer the questions, the problem will reset with different numbers and allow you to try again. You will be allowed to attempt the problems as many times as it takes to correctly solve them (i.e., if at first you don’t succeed, try try, again...). This system facilitates practice, which provides a better chance for mastery.
• We will also engage in pre‐class preparation and completion of mini cases that will provide the basis for our in‐class discussions. Unfortunately, it is difficult to make an introductory accounting course too case‐based. (You need to master the basics before engaging the case‐based nuances in accounting. For students of accounting, traditional Harvard‐type cases often provide stories about accounting, but generally do not promote efficient learning of accounting.) However, we will try to make sure you get your hands dirty with real financial accounting information (i.e., from the published financial statements of your employers, or, if your company is private, from the published financial statements of your publicly traded competitors). You are allowed to collaborate with your currently enrolled classmates to complete the weekly pre‐class preparation; however, you are not allowed to “copy” each other’s work. (Please note, this is the only deliverable for which you are allowed to collaborate with others prior to submitting it for a grade. Your MBC homework and exams must be completed without consulting others.)
• We will also have two exams. Immediately following the fifth module, an exam will be administered that covers basic financial statements (i.e., Income Statement, Balance Sheet and Cash Flow Statement) and selected financial‐accounting topics. This exam will comprise 20% of the final course grade. A final exam will also be administered at the end of the last week of class and will include managerial accounting topics (i.e., the final exam is not “cumulative”). This final exam will count for 20% of the final grade.
• In summary, 60% of course credit comes from completing effort‐based activities outside of exams and 40% comes from two exams. The purpose of the weekly assignments is to provide you with incentive to practice, practice, practice... Your two exams will include items that are a combination of short‐answer questions and problems, and will have the “look and feel” of the assigned pre‐class exercises and assigned MBC problems.
• To provide optimal scheduling flexibility for students, each exam will have (at least) a one‐week open window for completion; however, the exams must be completed within 150 minutes of each student initiating each exam session. (NOTE: The one‐week exam window is provided as a courtesy, not as a way to facilitate procrastination. The period during which Exam 1 is available overlaps with the beginning of Module 6; thus, students are expected to immediately begin work on Module 6 as soon as the Exam 1 is completed.) Exams will be open‐book but closed‐note, and will be primarily open‐ended, short‐answer and problem‐based. When completing and submitting all graded deliverables in this course (including exams), students are expressly prohibited from soliciting, seeking and using unauthorized assistance. Refer to the Academic Integrity section of this syllabus for further details.

V. Course Materials and Resources for Students

I will rely on the Canvas class page for disseminating assignment requirements and related availability/due dates. We will primarily rely on two MBA‐level texts in this course. These texts will be made available in a discounted bundle and are available directly from Cambridge Business Publishers (CBP). Visit myBusinessCourse to order the book bundle.

• Simko, P.J., K.R. Ferris, and J.S. Wallace. Financial Reporting for Executives and MBAs 4th Edition, Cambridge Business Publishers, ©2017, ISBN: 978‐1‐61853‐198‐8
• Hartgraves, A.L. and W.J. Morse. Managerial Accounting 8th Edition. Cambridge Business Publishers, ©2018, ISBN: 978‐1‐61853‐235‐0

Students may wish to purchase used textbooks because they are individually cheaper. Note that used textbooks do not include access to CBP’s MBC online learning platform (see the previous section for a description). Students who purchase used textbooks will also need to purchase from CBP subscriptions to MBC for each book (i.e., at $65 per book). So, used textbooks might be more expensive than the new‐book bundle after purchasing MBC access for a total of $130. Visit myBusinessCourse to access MBC for A696.

VI. Academic Integrity

Students are expected to adhere to the highest standards of academic integrity in all of their courses at the Kelley School of Business. This class is no exception. Please note that all deliverables in A696 are covered by the Academic Code of Conduct, described in the ECBLS Student Guide and by IU’s Code of Ethics. Unless specifically stated otherwise, all student submissions must represent the individual contribution of the submitting student. Providing or receiving unauthorized assistance on a graded assignments or exams is considered academic dishonesty and is expressly prohibited. Here are some examples of unauthorized assistance:

• Collaboration on exams being turned in for a grade. (Note: after exams are graded and returned, A696 students should feel free to try to gain a better understanding of the material by discussing the exams with classmates and/or accounting‐savvy colleagues. In addition, I hope you take the opportunity to collaborate with your colleagues on all other aspects of this class, including (and not limited to) exam preparation, understanding assigned readings, and discussion of problems and exercises that are included in the weekly assignment.)
• Unattributed use of materials from any source outside of the textbook and items posted at the A696 Canvas course site.
• Accessing and using solutions from publishers or other students.
• Accessing or using A696 materials from past semesters this course was offered. Students may only use A696 notes, problems, exams and solutions posted to Canvas during the semester in which students are enrolled in the course.

VII. Course Policies

Course policies are designed to clarify any questions you may have about the course. If you have questions or concerns about these policies or if something arises during the course of the term that impacts your ability to conform to these policies, please let me know as soon as possible.

• Late Work: Please make every attempt to submit your work by the deadlines shown in the course calendar. There is a strong connection between staying caught up with your work and your overall satisfaction, your success and the value of the course. If you cannot submit a deliverable on time, please let me know as soon as possible, and submit the work in the appropriate location as soon as possible. Late work may be subject to a grade penalty. Please make every effort to avoid this problem.
• Formatting Conventions: Unless otherwise specified, deliverables for “pre‐class preparation” must be submitted via the Canvas Assignments Tool—even if the deliverable is late. When submitting an electronic file, please adhere to the following conventions:
  1. The filename should be “LASTNAME_DELIVERABLENAME” using your last name and the name of the deliverable.
  2. The first line of the document or spreadsheet should contain the submitting student’s last name and the name of the deliverable.
  3. For weekly assignments, the second line of the deliverable should contain the names of individuals with whom the student consulted in completing the deliverable. (Note that my policies allow students to “consult” with other students on weekly “pre‐class preparation” assignments, but not on the MBC homework or exams.)
  4. The document should be formatted to print on 8.5" x 11" paper.
  5. Unless otherwise explicitly instructed, please restrict deliverables to a single MS Word File or Excel File. I really prefer for you to submit Excel files if there are any computations. When using Excel, please use the arithmetic functions for your computations. Using Excel in this way allows us to follow the processes used in solving the problems and allows much better feedback.
• Final Grades: Grades are based on combination of all performance measures across the term. The final grades in the course will be awarded in accordance with the Kelley School of Business MBA office grading policies, based on the quality shown in the deliverables. You will receive two grades for this course. The first is a Pass/Fail. The second is a standard letter grade.

VIII. Course Schedule

Chapters: “SFW” refers to the Simko, Ferris and Wallace (2017) financial‐reporting text and “HM” refers to the Hartgraves and Morris (2018) managerial accounting text.

• Review of Accounting Fundamentals¹
• Module 1, The Environment of Financial Report and the Role and Structure of Financial Statements^2, Chapters SFW 1,2
• Module 2, Reporting Financial Performance and Using Financial Statements for
  Investment and Credit Decisions, Chapters SFW 3, 4
• Module 3, Reporting Operating Activities—Revenues, Expenses and Working
  Capital, Chapters SFW 5, 6
• Module 4, Long Term Producing Assets & Investments, Chapters SFW 7, 8
• Module 5, Accounting for Financing Activities, Chapters SFW 9, 11
• Exam 1, Includes Modules 1–5
• Module 6, Using Managerial Accounting for Decision Making and Cost Estimation, Chapters HM 1, 2
• Module 7, Cost‐Volume‐Profit and Relative Cost/Benefit Analysis, Chapters HM 3, 4
• Module 8, Process and Activity‐Based Costing, Chapters HM 5, 6
• Module 9, Operational Budgeting, Profit Planning, Standard Costs and
  Performance Reports, Chapters HM 9, 10
• Module 10, Segment Reporting and Transfer Pricing, Chapters HM 11
• Exam 2, Includes Modules 6–10

¹ Students should review their prior texts on basic accounting and bookkeeping. If no text is readily available, then students should complete, before the first day of A696, the Accounting Primer available to ECBLS students.

² All assigned written pre‐class deliverables, slides and discussion files will be made available via Canvas.

• Schedule: Feb. 25 through May 4, 2019
  

  10 weeks beginning February 25. For studying and topics scheduling purposes, a “week” begins on Monday morning and ends on Sunday evening, with most graded work having a deadline of 11:45 p.m. on Sunday evening. Note that all schedule and deadline times are Indiana Eastern (Bloomington) time.

• Faculty:Michael J Oakes, Senior Lecturer in Finance, mjoakes@indiana.edu
• Contact: Official course communication to everyone from the instructor will come through “Announcements” on Canvas. See “Preparing for BA615” on Canvas for help with setting things up for forwarding via email and text. For individual communication: please use email mjoakes@indiana.edu.

Course Description

How do pharmaceutical firms like Merck decide which projects to fund? What sources of capital can a biotech firm tap? How do investors value such firms? How does Zimmer Biomet measure the financial viability of a new medical device?

Finance offers an analytical framework with which to analyze such issues, and this course is designed to help you learn and apply a set of key tools that fall out of that framework. The fundamental idea at work is one of value: valuing firm assets and activities, valuing alternative financial management decisions, and valuing the investments made by suppliers of firm capital—the shareholders.

Texts and Other Items

Required

1. Paid (online) access to the Aplia space for BA615. This includes an online textbook and a package of practice and homework problem sets. Aplia offers students the option of also purchasing a printed text at a reduced price. (The online text on Aplia is printable.)
   
   A one-page information sheet with instructions and appropriate access keys for the Aplia BA615 space will be distributed via email and/or is available in Canvas Module 00.
   
   As an FYI, the required course textbook (again, purchased when you register and pay online at Aplia) is: Corporate Finance: A Focused Approach, 6th. Ehrhardt and Brigham. South-Western Cengage Learning.
   
   
2.  Hardware and software needed to access online discussion sessions using the Zoom platform. See “Preparing for BA615” on Canvas for more details.

Recommended

A financial calculator. Highly recommended is the HP 10BII+.

Grading Criteria

Presentations

• 2 presentations
• Individual unit of assessment
• 10 points each
• 20% of grade
• Notes:
  • Twice during the term, you will have a chance to bring to the online sessions a brief presentation connecting a recent course topic to a current news item.
  • Graded pass/fail: Pass if you meet the requirements described in a rubric on Canvas > Modules.

Cases

• 2 cases
• Individual unit of assessment
• 100 points each
• 30% of grade
• Notes
  • These two cases offer applications across healthcare and life sciences businesses, markets, and situations.
  • Details are available in Canvas > Modules. And please look at the grading
    rubric for each.

Assessments

• 3 assessments
• Individual unit of assessment
• Various points
• 50% of grade
• Notes
  • Three assessments address the key topics of the course. They are available via Aplia and follow closely the text readings and practice problems. (But they also include elements from throughout the course, including Zoom sessions.)
  • You can start on these as early as March 25. Each is due by Saturday, May 4,
    11:45 p.m.
  • Much is unusual about these assessments in the course. Please see
    the details on Canvas.

Assignment of Letter Grades

Assignment of Final Letter Grade

Grading Notes

• An A+ may be awarded at the instructor’s discretion for superior work and
  critical thinking.
• For the level of study in ECBLS, it’s expected that the grade distribution ranges
  from about 80% to about 95%.

Course Learning Outcomes

When completing this course successfully, a student will be able to…

1. Evaluate financial performance by analyzing financial statements with key ratios, trends, and industry benchmarks.
   
   This will be assessed by scores from financial statement analysis portion of
   “Cavalier Hospital” case and scores resulting from financial analysis problem solving on
   Assessment 1. For each assessment, 80% of students should score at the “Met Expectations” (or above) goal of 85% or greater of the available points. See the assessment rubric available on Canvas for more details.
   
   
2. Evaluate capital investment projects by estimating cost of capital and risk-adjusted net cash flows using appropriate capital budgeting principles and tools.
   
   This will be assessed by scores resulting from the capital budgeting mini-case problem on Assessment 3. 80% of students should score at the “Met Expectations” (or above) goal of 85% or greater of the available points. See the assessment rubric available on Canvas for more details.

Attendance and Other Course Policies

Attendance

Attendance during online Zoom sessions is expected and recommended, but there are no points directly tied to attendance.

Late Work, Makeups

No late assignments are accepted, and there are no makeups for any graded work.

Caveat for Personal Emergencies or Other Situations

Genuine and documented personal emergencies or special situations may warrant some flexibility in course policies. This flexibility will be infrequent and considered on a case-by-case basis.

Communication

All official digital communication for the course should come through Canvas or via mjoakes@indiana.edu. Communicating through email is highly preferred.

Academic Integrity

As in all things at the Kelley School of Business, the Honor Code serves as a guide to proper ethical, and academic decision-making. It is expected students are familiar with the code.

The section on “Violations” in the Honor Code explains well the kinds expectations in place for the course.

IU Policies Related to Sexual Assault

The classroom environment, whether online or in face-to-face settings, should be a safe environment. What you should know about sexual misconduct: IU does not tolerate acts of sexual misconduct, including sexual harassment and all forms of sexual violence. If you have experienced sexual misconduct, or know someone who has, the University can help. It is important to know that federal regulations and University policy require faculty to promptly report complaints of potential sexual misconduct known to them to their campus Deputy Title IX Coordinator(s) to ensure that appropriate measures are taken and resources are made available. The University will work with you to protect your privacy by sharing information with only those that need to know to ensure the University can respond and assist. If you are seeking help and would like to speak to someone confidentially, you can make an appointment with a Mental Health Counselor on campus.

Find more information about sexual violence, including campus and community resources at http://stopsexualviolence.iu.edu/.

Outline and Class Schedule

Sun., Feb. 24: Preparing for BA615

No surprise, it’s important for you to find a moment very early this first week to review the prep information. The pages available to you on Canvas include:

• Essential Things
• How We Communicate
• Online Sessions via Zoom

Mon., Feb. 25 (Week 1): Lesson 1—Evaluating Financial Performance

• See details for readings and other activities on the Canvas course site.
• Wed., Feb 27, 9 p.m.: Online session via Zoom. (See Canvas for details and link.) A brief introduction and course orientation, followed by some work
  using financial performance metrics already addressed (at least in large
  part) in accounting.

Mon., March 4 (Week 2): Lesson 2—Case Analysis: "Cavalier Hospital"

• Find the case, accompanying spreadsheet, and assignment instructions on
  Canvas.
• Wed., March 6, 9 p.m.: Online session via Zoom. (See Canvas for details and
  link.) More work on metrics, looking at Pfizer. In addition, there will be time
  for any questions regarding Cavalier Hospital.
• Sun., March 10, 11:45 p.m.: Your response to the Cavalier Hospital case is due.
  Upload the documents via the Canvas assignment space.

Mon., March 11 (Week 3): Lesson 3—Understanding Time and Value

• See details for readings and other activities on the Canvas course site.
• Wed., March 13, 9 p.m.: Online session via Zoom. (See Canvas for details and
  link.) A review and discussion of the Cavalier Hospital case. It takes place during this new lesson week since you will have completed the work—and so can discuss your analysis—and will have the marked assignment returned. In addition, there is time for any questions regarding time value, which is this week’s lesson.

Mon., March 18 (Week 4): Lesson 4—Pricing Bonds and Stocks

• See details for readings and other activities on the Canvas course site.
• Wed., March 20, 9 p.m: Online session via Zoom. (See Canvas for details and
  link.) A session that looks like a bit of a lecture, with examples of solving bond and stock pricing problems.

Mon., March 25 (Week 5): Lesson 5—Stock Risk, Portfolio Risk

• See details for readings and other activities on the Canvas course site.
• Mon., March 25, 8 a.m.: Assessment 1: Performance and Time Value is
  available on Aplia. See Week 10.
• Wed., March 27, 9 p.m.: Online session via Zoom. (See Canvas for details and
  link.) A session that looks like a bit of a lecture, with examples of solving
  bond and stock pricing problems.

Mon., April 1 (Week 6): Lesson 6—Cost of Capital and Capital Budgeting

• See details for readings and other activities on the Canvas course site.
• Wed., Apr 3, 9 p.m.: Online session via Zoom. (See Canvas for details and
  link.) A session that looks like a bit of a lecture, with a walk through of one of
  the comprehensive problems from the text.

Mon., April 8 (Week 7): Lesson 7—Deeper Dive on Cash Flows

• See details for readings and other activities on the Canvas course site.
• Wed., April 10, 9 p.m.: Online session via Zoom. (See Canvas for details and
  link.) TBA, in order to take advantage of feedback from earlier sessions.

Mon., April 15 (Week 8): Lesson 8—Case Analysis: “Genzyme”

• See details for readings and other activities on the Canvas course site.
• Wed., April 17, 9 p.m.: Online session via Zoom. (See Canvas for details and
  link.) TBA, in order to take advantage of feedback from earlier sessions.
  Sun, Apr 21, 11:45 PM – Your response to the Genzyme case is due. Upload
  the documents via the Canvas assignment space. 

Mon., April 22 (Week 9): Lesson 9—Introduction to Real Options

• See details for readings and other activities on the Canvas course site.
• Wed., April 24, 9 p.m.: Online session via Zoom. (See Canvas for details and
  link.) In part, a review and discussion of the Genzyme case. It takes place
  during this new module week since you will have completed the work—and so can discuss your analysis—and will have the marked assignment returned.
  
  In another part, some help with basic ideas and problem solving for
  working with real options.

Mon., April 29 (Week 10): Lesson 10—Assessments

• Three assessments are designed to let you demonstrate an appropriate level of proficiency with the financial management concepts and tools addressed in the course. These will be available either in Aplia or Canvas. Look for an update later in the course.
• All three assessments must be submitted by 11:45 p.m. Saturday, May 4. But they are available to you soon after the relevant portion of the course is complete. You can start them at any time after they are open, depending on what works best for your schedule. They are timed, however. So once you start, you should be prepared to finish within the allotted time.
• There is an uncommon approach to these assessments in the course. It’s explained further on Canvas.
• Assessment 1: Performance and Time Value (Open Monday, March 25)
• Assessment 2: Bonds, Stocks, and Risk (Open Monday, April 15)
• Assessment 3: Capital Investments (Open, Friday, April 26)
• Wed., May 1, 9 p.m.: Online session via Zoom. (See Canvas for details and
  link.) This Wednesday night can also be an office hours-type session for anyone wanting any of the assessments.
• Sat., May 4, 11:45 p.m.: All assessments submissions due on Aplia.

Faculty Information

Joshua Gildea
Director, MBA Business Marketing (B2B) Academy
Fettig/Whirlpool Distinguished Lecturer
Department of Marketing, Kelley School of Business

• Office: Hodge Hall 2145
• Direct Office Phone Number: 812-856-0899
• Marketing Department: 812-855-8878
• Kelley Direct Help: 866-260-1702
• Email: jgildea@indiana.edu
• Help Desk Technicians: kdhelp@indiana.edu
• Office Hours/Consultations: Any time by appointment. My schedule is usually flexible. 

Canvas Calendar

Role of Canvas Schedule: The online Schedule Tab on Canvas contains all of the specific dates for activities and deliverables. Please pay particular attention to the contents of this calendar. It is the official source of course dates and overrides the syllabus calendar.

Course Materials

1. Required: Course Packet containing online cases/articles obtained from Harvard Business Publishing. 
2. Required: The packet of reading material from Harvard will be supplemented with slides, lecture notes and other handouts. Most of these additional materials will be available to you on the Canvas site under the “Schedule” tab.
3. Optional (for those who want more marketing background) – “Marketing Management”, Phillip Kotler and Kevin Lane Keller, Pearson Prentice Hall, 14th edition (2012), New Jersey. ISBN-10: 0132102927.

Course Overview

Classical marketing involves the identification and satisfaction of customers’ needs, wants, and desires through a process of exchange that creates value for both the marketer and the customer. Identification of needs, wants, and desires is typically achieved through some form of research. Satisfaction is achieved by a firm offering the customer the right product/service, at the right price, at the right time, and made available through the right outlets -- in short, using the right marketing mix. This sounds simple and intuitive, perhaps it is. However, although intuition has a role to play, marketing implementation is not that simple. Executing successful marketing plans involves a complex set of activities to master, requiring substantial knowledge, experience, and strategic thinking.

The preceding description of marketing is a rather “generic” definition. When it is applied to the industries of life sciences and health care, the marketing function becomes increasingly challenging. Given the complexity of the regulatory environment and the numerous variations of the life science value chain, marketers are faced with developing unique relationships with multiple customers, partners, influencers, and constituencies. Depending on the situation, these may include:

• Individual consumers
• Physicians
• Pharmacies
• Wholesalers
• Payers
• Group Purchasing Organizations (GPOs) and Independent Dealer Networks (IDNs)
• Organizational buyers such as hospitals and surgical centers
• Manufacturers, and
• Manufacturers’ representatives

Through a rigorous combination of lectures, discussion forums, relevant literature, and business cases in the life science industry, this course will introduce students to concepts that are considered critical in understanding the marketing function and its responsibilities in this complex environment. It will also sensitize students to the difficult decisions and activities that marketers undertake in achieving success for their products, services, companies, and ultimately their customers and patients. Finally, it will allow students to practice problem-solving techniques in dissecting complex marketing issues through the use of business cases.

This course is designed with the assumption that students have had little, if any, formal instruction in the marketing discipline. During the early part of the course, students will gain exposure to the essentials of buyer behavior and customer analysis. This exposure will dovetail into an examination of the tools marketers rely on to fulfill customer expectations. These tools include segmentation, positioning, market research, product strategy, pricing, and distribution. We will discuss these tools in the context of current issues in the life sciences arena such as direct-to-consumer promotional strategies, e-commerce, channel relationships, and value pricing.

Admittedly, there is a great deal of synergy between the issues and analyses discussed in marketing and the management decision techniques that executives are exposed to in accounting, economics, finance, information systems, operations, quantitative methods, and strategy. When used appropriately, marketing is the function that often helps to integrate and cement all of these areas from a business planning perspective. This course content will complement the other core courses in this program to provide students with an integrative approach in solving business problems and implementing successful business strategy.

Student Learning Outcomes

After completing this course, students should be able to:

1. Explain the role of marketing in creating successful business results. This will be accomplished by both theoretical concepts, as well as, benchmarking successful marketing practices of other industries that could be applied to the life science and/or healthcare companies.
2. Demonstrate how the fundamental principles of marketing are related and can be integrated to create sound business strategies.
3. Develop a methodology of determining customer/consumer needs and create initiatives that help increase sales, increase consumer satisfaction, and create positive ROIs.
4. Conduct a rigorous market analysis of a life science initiative by applying marketing research techniques that are appropriate for the life science and health care industries.
5. Create a comprehensive market plan that is linked to an overall business strategy within a life science or healthcare environment and design appropriate metrics to measure performance.

Teaching Strategy and Rationale

This course will utilize a variety of activities designed to engage students in participatory learning. Course components will include: online discussions/lectures, discussion forums, team-based case analysis, and an individual examination. The instructor’s teaching approach is one of learning from each other, particularly since most students will have varied and extensive practical experience in the life sciences field. Therefore, active student participation, particularly within discussion forums, is a key focus of the course and will be encouraged (and evaluated) throughout the course.

The content and assignments in this course will focus on practical application of key marketing concepts. It is my belief that the most successful business careers are the result of an individual’s ability to bridge or apply general academic principles within their own unique business circumstances. By concentrating on the life sciences industry, we have a unique opportunity to tailor the curriculum to be most meaningful to the student executive.

As mentioned previously, this course will use business cases as a key learning tool. Student case work achieves several goals:

1. stimulates student interest;
2. provides students with tangible examples of conceptual material;
3. enables students to practice and formalize a critical thinking process within a cooperative team environment;'
4. emphasizes the importance of ROI results.

Assessment

Student evaluation is based on a combination of team case write-ups, an individual final examination, discussion contributions, and a peer assessment from fellow teammates. Weighting and specific due dates are as follows:

• Participation & Discussion Boards, 20%, 200 points
• Team Case Memos
  • Biopure Case, 20%, 200 points, Due Date: June 14
  • Medicines Company Case, 20%, 200 points, Due Date: July 7
• Individual Final Exam: 40%, 400 points, Due Date: July 12–14

It is important that each team member contribute to the overall team assignments and general course discussions. At the conclusion of the course, a team evaluation exercise will be conducted. Each member will be asked to evaluate their team members individually. Final grades will be impacted by this allocation if unequal workload ratings are reported.

Team Case Position Memos: A key course objective is to maximize student experiences in dealing with marketing problems on a direct basis and in real-world settings. As a result, work on business cases is a major activity in this course. Practicing how to analyze complex issues to identify several central issues and offer practical solutions in a coherent format is your principal learning opportunity from this experience.

I have selected two cases in this short course which represent typical challenges in strategic marketing: Biopure and The Medicines Company. Issues raised in these cases are very relevant today, even though these cases were written a number of years ago. This provides us with a unique opportunity to understand how these companies have fared since the case issues were addressed. Older cases also help us see what trends looked like in their early stages of development. Trend identification is an expected skill for marketing managers to possess.

Similarly, succinctly communicating your analysis and recommendations to complex issues is critical to your successful business career. Therefore, to practice and develop this proficiency, each student team will prepare a written case position memo for the Biopure case AND the Medicines Company case.

The written assignments have the following learning objectives:

• To develop the ability to analyze a business problem/situation and identify and understand the core issue(s) that requires your focus.
• To identify creative and effective solutions to problems (with adequate support data and logic).
• To offer a framework for a “realistic” implementation plan (tactics).
• To effectively acknowledge the risks of your recommendation and strategies to mitigate these risks.
• To effectively communicate in writing your analyses and solutions/recommendations to the problem.

Grading criteria for the written deliverables will include the following:

1. Have you demonstrated good management insight into the business issue at hand? Do you see and understand the critical problem(s) and have you identified solutions?
2. Are your recommendations consistent with your assessment of the problem(s) and the information that you used to analyze the situation?
3. Are your recommendations practical and implementable with respect to the situation of the company, its resources, and the people involved?
4. Is your work professionally prepared such that you convey a comprehensive understanding of the issues and that a busy executive or manager can read once and clearly understand your position?
5. Have you sought and used good pertinent information beyond what was presented in the case?

Please note the following required format for case memos: The text of your written case memos should not exceed one page (maximum)—single-spaced, #11 font size with one inch of margin all around. You may (and it is HIGHLY RECOMMENDED) attach up to four pages of support appendices and tables (visuals) that are useful for the reader to clearly understand your memo positions. These attachments should be relevant and referenced in memo text to illustrate a key point. Where appropriate, please explicitly identify sources of information. Please see “Formatting Conventions for All Deliverables” in the Course Policies section of this document.

Here is a good, general approach to memo format:

• (quickly) summarize the major issue/purpose of your memo (1-2 sentences);
• provide a summary of your recommendations;
• provide a discussion of the analyses and logic that led to your recommendations, including expected financial implications if appropriate (bulk of the memo);
• include a brief implementation plan with timeline (can be an exhibit); and
• include a summary of risks and mitigation strategies (can be an exhibit).

Please write memos from the position of an “insider”. Therefore, DO NOT waste valuable text space documenting information that is already known and provided in the case write-ups. The use of headings, sub-headings, bullets and bold font are helpful in written communication of this type, as they enhance the “readability” of the document. And remember – solid justification to support your recommendations will distinguish a great memo from an average/poor memo.

Individual Final Exam: A major objective of the course is for students to thoroughly understand how major components of the marketing discipline can be integrated into a strategy that creates profitable growth. At the conclusion of the course, each student will be required to complete a timed, on-line final examination. Details of the exam will be discussed throughout the course.

Student Contributions to Class-wide Discussion Boards: A key ingredient in student learning at this educational level is shared interaction among classmates and the instructor. Since most students are currently employed by firms in the life science industry, each student will be equipped to contribute valuable experiences and ideas to the overall learning of the class. Since this type of interaction is proven to be valuable in a traditional class room setting, it will also be valued and encouraged in this on-line educational experience. Therefore, student activity in on-line (class-wide) discussion boards (on Canvas) will be monitored by the instructor. At the conclusion of the course, the instructor will evaluate each student’s course participation, both on quantity (i.e., number of posts based on relevant and professional observations) and quality (i.e., insightful content that stimulates further thought and discussion) of contributions.

Zoom Online Class Sessions: We will meet approximately once a week in the Zoom Online environment. Attendance and participation in all “live” Zoom sessions is expected. However, to compensate for scheduling/traveling conflicts, each student has the option to either attend the weekly Zoom session or complete a one-page (bullet pointed) paper summarizing that week’s session. The dates/times for each session may vary, so check the course calendar for the live session time each week. The summary paper is due 72 hours after the recorded session is posted on Canvas.

Final Grades: The final grades in the course will be awarded based on the quality and creativity shown in the deliverables. You will receive two grades for the course. The first is a Pass/Fail grade. The second is a standard letter grade. Overall grading distribution will conform to grading policies approved by the Kelley MBA faculty, which include the following distribution:

My concern in this class is your learning and professional development. I am always willing to discuss your course performance and ways in which you can improve.

Expectations of Honesty and Professionalism: In accordance with the Kelley School Honor Code, it is assumed that the work you present is 100% your own – you have neither provided nor accepted any “unauthorized” information (written or verbal) about the assignments in this course. “Authorized” reference resources to complete all assignments are limited to the slides, handouts, and materials made available in this class. (Any material obtained on the INTERNET is considered “unauthorized”). When preparing team case memos, please do not discuss the case with others outside of your team or access written documents other than the case write-up provided. Similarly, since the final exam is an individual exercise, preparing for the exam should be done individually.

Course Policies

Formatting Conventions for all Deliverables: Unless otherwise specified, please submit deliverables via the Canvas “Assignments” tab – even if the deliverable is late. When submitting a file, please adhere to the following conventions:

1. The filename should be “TEAM #_DELIVERABLENAME” using your team number and the name of the deliverable.
2. The document should be formatted to print on 8.5 by 11 paper, including all Excel spreadsheets.

Teams: I will place each student in a team. It is important that each team member contribute to the overall team assignments. Team evaluations will be conducted at the conclusion of the course. Individual participation scores will be adjusted by this allocation if unequal workload ratings are reported.

Role of Course Schedule: The course schedule included in this document contains all of the specific dates for activities and deliverables. However, as dates may change due to scheduling conflicts, please refer to the online Canvas Schedule tab for the latest information regarding due dates, Zoom session timing, etc.

Role of Optional Textbook: The textbook contains information in much more detail than we will formally cover in class. Therefore, I am not assigning the text as required reading. This particular text is an encyclopedia of marketing management concepts and practices. In that sense, it serves as a reference to supplement the PowerPoint slides, articles, and case discussions.

Student-Instructor Dialogue: Contact me (Professor Josh Gildea) with questions at any time. The online course delivery format allows me to customize my communication to adjust to your needs and thereby enhance your learning experience. I welcome communication at any time throughout the course via email or phone (see contact details at beginning of syllabus).

Instructor Bio

Joshua Gildea is a Fettig/Whirlpool Distinguished Lecturer of Marketing and the Director of the MBA Business Marketing Academy at the Indiana University Kelley School of Business. His current teaching assignments include Business Marketing Strategy & Management in the MBA and Undergraduate programs; Sales Management in the Undergraduate program; Marketing Strategy and International Marketing in the Kelley Direct MBA program; and, Marketing Management and Strategy in Life Sciences within the Kelley Executive Partners Program.

Prior to joining Kelley, Josh’s professional career spanned nearly 20 years in senior marketing and sales management positions within several mid-sized and large multi-national corporations and non-profit organizations. He has had broad based exposure in marketing, strategic planning, market research, field sales, customer service, agency management, and media planning. His experience spans various industries and markets including aerospace, consumer durables, manufacturing, industrial equipment, technology, software, and advertising and public relations. Josh’s professional experience includes marketing management positions with Microsoft and DuPont; product and sales management positions with General Electric and Carlisle Companies; and international marketing management positions with Vita-mix Corporation. Former clients and customers include Caterpillar, John Deere, Wal-Mart, Target, United Technologies, General Dynamics, Siemens, Symantec, and American Airlines.

Josh holds a Bachelor of Arts in Public Relations and Communications from Brigham Young University and a Master of Business Administration in Marketing from Indiana University’s Kelley School of Business.

C570 Course Schedule

Note: The Schedule Tab in Canvas is the official calendar of the course. The below syllabus calendar is only a guide and may change as the term progresses. The instructor will attempt to inform the class of major changes to the schedule, but students are responsible for regularly reviewing the Canvas Schedule tab.

Week 1 (5/21)

• Topics: Introduction to Marketing (importance, scope, and functional relationships) and Strategic Marketing & Planning (role and structure of corporate, division, and business unit planning)
• Reading
  • Article: Note on Marketing Strategy
  • Article: Rethinking the 4P’s
  • Article: Rethinking Marketing
  • Posted Article: The Clean Queen Situation
  • Any additional posted articles
• Assignments/Deliverables
  • Zoom Session 1: “What is Marketing and Why is It Important?”
    Thursday, May 24 at 8:30 p.m. ET
  • Discussion Board 1 (due before Zoom session)

Week 2 (5/28)

• Topic: Consumer & Organizational Buyer Behavior
  • The buying decision processes
  • Distinguishing characteristics
  • Role of: wholesalers, manufacturer’s reps., GPOs, IDNs, payers, physicians, pharmacies, hospitals, etc.
• Reading
  • Posted Article: A look at the buyer process model
  • Any additional posted articles
• Assignments/Deliverables
  • Zoom Session 2: “Comparing & Contrasting Consumer and Business Customers” Thursday, May 31 at 8:30 p.m. ET
  • Discussion Board 2 (due before Zoom session)

Week 3 (6/4)

• Topic: Market Intelligence (where and how to obtain usable market and customer information)
• Reading
  • Article: Turn Customer Input into Innovation
  • Article: Finding the Right Job for Your Product
  • Any additional posted articles
• Assignments/Deliverables
  • Zoom Session 3: “How to Obtain Actionable Information” Thursday, June 7 at 8:30 p.m. ET
  • Discussion Board 3 (due before Zoom session)

Week 4 (6/11)

• Topic: Market Segmentation and Targeting
  • Traditional and nontraditional segmentation criteria
  • Useful tools for targeting
• Reading
  • Article: Market Segmentation, Target Market Selection, and Positioning
  • Article: Marketing Malpractice
  • Case: Biopure Corporation
  • Any additional posted articles
• Assignments/Deliverables
  • Zoom Session 4: “Progressive Market Segmentation for Life Sciences”
    Thursday, June 14 at 8:30 p.m. ET
  • Discussion Board 4 (due before Zoom session)
  • Written Team Memo 1: Biopure Corporation (due before Zoom session)

Week 5 (6/18)

• Topic: Brand/Product Management Issues
  • Building brand equity
  • Developing and positioning a positioning strategy'
  • Marketing strategies for product life cycle stages
  • Ingredient branding and co-branding
• Reading
  • Article: Understanding Brands
  • Article: Holding Fast
  • Any additional posted articles
• Assignments/Deliverables
  • Zoom Session 5: “The Value of Creating and Maintaining Brand Equity”
    Thursday, June 21 at 8:30 p.m. ET
  • Discussion Board 5 (due before Zoom session)

Week 6 (6/25)

• Topic: Pricing Strategies
  • Conventional pricing strategies
  • Value pricing
• Reading
  • Article: Customer Value Propositions in Business Markets
  • Case: The Medicines Company
  • Any additional posted articles
• Assignments/Deliverables
  • Zoom Session 6: “Value Pricing and Life Science Distribution Channels”
    Thursday, June 28 at 8:30 p.m. ET
  • Discussion Board 6 (due before Zoom session)

Week 7 (7/2)

• Topic: Integrated Marketing Communications
  • Managing the sales resource
  • Risks and rewards of direct-to-consumer marketing in life
    sciences
• Reading
  • Posted Article: Dentsply Case Study
  • Article: And Now, a Word from Our Sponsor
  • Any additional posted articles
• Assignments/Deliverables
  • Zoom Session 7: “The Importance of IMC in Life Science Markets”
    No LIVE Zoom Session this Week. Video recording will be posted to accommodate holiday schedules.
  • Discussion Board 7 (due by 11:59 p.m. ET on 7/7)
  • Written Team Memo 2:
    The Medicines Company Case (due by 11:59 p.m. ET on 7/7)

Week 8

• Final Exam
• Final Examination Available on Canvas, July 12–14, 2018

Week 9

• Capstone In-Residence (Bloomington, IN)
• Final Marketing Discussion & Case Competition, July 19–20, 2018