DELIVERING A TECHNOLOGY-BASED CASE IN A TECHNOLOGICAL WAY: THE SMARTCART CASE Developments in Business Simulations and Experiential Learning, Volume 32, 2005 DELIVERING A TECHNOLOGY-BASED CASE IN A TECHNOLOGICAL WAY: THE SMARTCART CASE Francine Schlosser University Of Windsor, Ontario* Fschloss@Uwindsor.Ca Cam Scholey University Of Waterloo, Ontario ABSTRACT This submission describes a technology-based business case used to deliver concepts related to entrepreneurship, technology and business. The case profiles a team of four entrepreneurs (recent graduates) who develop the SmartCart product. Instructors release the integrated case on a website, and update it daily with interpersonal and and financial crises. The case story is enhanced by icons, cartoons and websites. Students must create a business plan to launch the high tech innovation profiled in the case. The mode of delivery engages students by tying delivery method to course content in aspects of entrepreneurship and technology. The crises create an urgency and dynamism that resembles real-life situations. INTRODUCTION This submission profiles a technology-based interactive business case used to deliver concepts related to entrepreneurship, technology and business. Chiesl (1979) discussed the interactive case as one that combines two ways of bringing realism into the classroom: case method and computer simulation. In the SmartCart exercise, an interactive mode of delivery engages students by tying technology-based delivery method to technological course content. Instructors release the essentials of the case on a restricted website. Students access information by clicking on icons that represent characters and events in the case. They must check the website daily and receive updates related to new developments. A semi-dynamic approach combining case and simulation methods integrates the learning from first term masters’ level business courses. This method is appropriate because the case method provides learning outcomes related to 1) familiarity with business environment, 2) the application of sound concepts and techniques, 3) a systematic approach to complex problem analysis and solution, and 4) objective setting (Baillie, McIntire, Newell, Pierson, & Thavikulwat, 1984). In contrast, games emphasize managerial tools and tactics, often simulating competitive market forces. The objective of this case differs from gaming tactics because the launch and financing of a new product involves a more static look at the characteristics of market entry. The students are relatively inexperienced in business strategy, with little tactical knowledge. Therefore, the use of constraints demanding tactical response (often found in gaming and simulations) is limited to crises released to the students at timed intervals. OBJECTIVES The objectives of the SmartCart case are: • To integrate and apply concepts related to the study of entrepreneurship, business and technology • To demonstrate to students the importance of both planned strategy and tactical responses • To develop a seed plan • To develop an understanding of interpersonal issues CONTENT AND METHOD MATCH TO LEARNING OUTCOMES A team of entrepreneurs and their innovation are profiled. The featured innovation is not sponsored by an established company; instead it is rooted in an actual engineering student innovation at the University of Waterloo (a high-tech research-intensive university in South-western Ontario). This semi-dynamic case draws on the guidance of Estes (1974), who suggested that simulations engage students in learning how to manage a small business. Using simulations, instructors can “breathe life into short-term and long-range planning, budgeting and policies etc. that sound so common-place and dull as the student reads them in a textbook” (Estes, 1974, p. 229). Case delivery method combines the concept of progressive cases with shocks used in simulations. Much like the progressive case described by Whitney (1990), a business situation unfolds. Subsequent segments contribute new information to the case and influence managerial decisions. (Snyder, 1999) described the use of shocks to stimulate and challenge players in total enterprise simulations. As students play through the modules of a simulation they are faced with random non-stochastic 358 mailto:Fschloss@Uwindsor.Ca Developments in Business Simulations and Experiential Learning, Volume 32, 2005 shocks (Alston & Chi, 1990). These shocks simulate uncertainty and changing environmental information and require quick assessment and adjustment to the information. Although these shocks are delivered online, they do not appear to capture the dynamism of new products that have never been to market. Also differing from previous simulations, the importance of team relationships to product success is emphasized through the interpersonal experiences highlighted in the shocks. Web-based delivery of a new technological innovation situates the case within the program mandate.The students have technical backgrounds and are in their first year of a Masters degree in Business Entrepreneurship and Technology (MBET). Many intend to develop their own innovations into successful businesses. The SmartCart case targets this learning outcome by profiling how similar technical students plan to introduce their product to the market. Active learning is defined as anything that “involves students in doing things and thinking about the things they are doing” (Bonwell and Eison, 1991, as cited in Szczerbacki, Duserick, Rummel, Howard, & Viggiani, 2000). Accordingly, students work in teams to develop a business plan for seed capital. As the SmartCart is a new technology created by a University of Waterloo engineering student, it is a “live”, closely guarded secret. Effective resolution of the case issues reflects the level of pro- activeness, risk-taking and innovation present in the team members. Nulsen and Faria (1977, p. 217) discussed how the involvement of the administrator facilitates an “experimental decision-making laboratory”. Smith (1980) described the use of “live” cases to involve and excite students. Accordingly, instructors deliver the SmartCart case in a fun and interesting way. Targeting technical students, the case is delivered on-line, using animated cartoon strips, images and profiles of typical students, and is narrated by the main student character. Building on the concept of a live case, it engages the entrepreneurial style of the students in this program. The team’s story is developed using a cartoon or video. Product features are listed and depicted in pictures. CASE SUMMARY This case profiles a team of four entrepreneurs who develop the SmartCart product. The SmartCart is a system of networked shopping carts that interfaces with the grocery store’s inventory records. As customers pick up items for purchase, modifications are made to both the store inventory and the customers’ bills. All of this information is maintained in real-time so that when the customer has completed his or her shopping, all they need to do is pay the required amount, which has already been automatically tabulated. The team is challenged by interpersonal issues as they develop their product concept, research the market and prepare for seed funding application. Working in competitive groups, students must develop a seed plan for the SmartCart product. DELIVERY METHOD The instructor delivers the case as follows: 1) Release information on base case to website. Appendix A depicts the website layout and Appendix B is a print- out of one of the webpages. 2) Analysis Timeframe – two weeks (approx 15 hours / week) 3) Throughout the period, the instructor presents the students with 3 crises or updates. These updates will be posted to the website every two days. A two page summary of their resolution of each crisis must be submitted within 24 hours of the update posting. At the end of the two weeks they submit their business plans. The plans will differ depending upon how they have resolved the crises. 4) This method provides a variety of answers, and will be both challenging and interesting for the professors to mark. It will also provide the basis for interesting business plan presentations and discussion. STUDENT EVALUATION Student group submissions are evaluated by all faculty involved in the first term of the Masters program in Business, Entrepreneurship and Technology. Appendix C highlights implications for business areas involved in the seed phase of a start-up venture. These areas are expanded in the actual case teaching notes. FUTURE DEVELOPMENT OF THIS CASE VEHICLE The SmartCart case was premised on the business launch of a new technological innovation. Interestingly, this feature increased the risk of case redundancy because there was a potential for being “scooped”. Indeed, just prior to case delivery, IBM announced the introduction of its own “Shopping Buddy”; a concept very similar to that of the SmartCart. Consequently, effective delivery of this type of case involves annual adjustment, using the case and delivery website as a template for other innovative products. PRESENTATION AT ABSEL 2005 The case, updates, team member profiles, and the teaching notes exceed the page requirements for ABSEL 2005. This is a capstone case for the first term of the Masters Entrepreneurship and Technology Degree at the University of Waterloo with delivery in December 2005. Presenters intend to demonstrate the case website at ABSEL and communicate student feedback on the process. 359 Developments in Business Simulations and Experiential Learning, Volume 32, 2005 REFERENCES Alston, R. M., & Chi, W. F. (1990). The money game: A dynamic simulation including random shocks for money and banking courses. Development in Business Simulation and Experiential Exercises, 17, 176. Baillie, A. S., McIntire, R., Newell, W., Pierson, C., & Thavikulwat, P. (1984). The evolving business policies course - Is management gaming the logical pedagogy? Development in Business Simulation and Experiential Exercises, 11, 224-227. Chiesl, N. (1979). The dynamic aspects of interactive gaming puts the realism into gaming. Insights into experiential pedagogy, 6, 271-276. Estes, J. E. (1974). Managing the dynamic small business via simulation. Simulations, Games and Experiential Learning Techniques, 1, 224-230. Nulsen, R. O., & Faria, A. J. (1977). New horizons in simulation research. New Horizons in Simulation Games and Experiential Learning, 4, 217-222. Smith, J. R. (1980). Using a "live" case via video tape: A town and gown approach. Experiential Learning Enters the Eighties, 7, 98-99. Snyder, L. T. (1999). Applying shocks to TE simulations: A demonstration. Development in Business Simulation and Experiential Exercises, 26, 79. Szczerbacki, D., Duserick, F., Rummel, A., Howard, J., & Viggiani, F. (2000). Active learning in a professional undergraduate curriculum. Developments in Business Simulation and Experiential Exercises, 27, 272-278. Whitney, G. G. (1990). Progressive cases. Developments in Business Simulation and Experiential Exercises, 17, 218. 360 Developments in Business Simulations and Experiential Learning, Volume 32, 2005 APPENDIX A: SMARTCART WEBPAGE LAYOUT The Characters Icon (background on each person attached in Appendix C) The Story Icon Comic Strip Product Icon (conceptualization) Meeting updates (part of teaching notes Appendix D) P The Case Icon (case attached in Appendix B) • Source of the product pictures: http://www.future- Gordana Selina Carlos m Ti roduct Views* Meeting Update 1 Frame 1 One evening, the Lightbulb Club met … Frame 2 Gordana: We’re sooo frustrated with the long lineups at the grocery store! Frame 3 Selina: … and with the packing and unpacking! Frame 4 Carlos: Let’s brainstorm new ideas to make grocery shopping easier! Frame 5 Voilà – the Smartcart – A “technodream” answer to their woes! Frame 6 Tim: And – it can really work! Meeting Update 3 Meeting Update 2 store.org 361 http://www.future-store.org/ Developments in Business Simulations and Experiential Learning, Volume 32, 2005 APPENDIX B: SMARTCART SAMPLE WEBPAGE HOME - INTEGRATED CASE - ASSIGNMENTS - HELP ©2003 The Centre for Business, Entrepreneurship & Technology, University of Waterloo. All rights reserved. 362 Developments in Business Simulations and Experiential Learning, Volume 32, 2005 363 APPENDIX C – INTEGRATED CURRICULUM COVERAGE Course Topics Key Questions Strategy Nature of Strategy: Setting a vision Mission statements Initial goal setting Four partners, each with different areas of expertise, have created a working model. What should they do now? Marketing Customer Value Customer Management Concepts Emerging Customer Markets General Business Markets Investor Relationships Developing a Marketing Plan They have conceptualized a prototype, now who will finance them? They have one customer (Zehrs), how do they get more? Technology Management Technology Strategy Developing Technical Capabilities Transitioning from one to many Using innovation in strategy Now that we have built one, how do we build more? How many should we build? Operations Management Initial Design considerations Hardware and software design Effective System integration We cannot build them all ourselves. We must get others to help us. So we must design the product so that other differently skilled people can help us. Accounting Financial Statements Concept Creating Value using Accounting Performance Measurement What do we need to track? How do we do it? Why should we keep track of anything? Finance Risk vs. Uncertainty Decisions under risk Decisions under uncertainty What model should we use to plan our future when so much is unknown and not within our control. Tax Deductions to income Self Employed vs. Partnership Government Grants What will we have to pay tax on and how can we minimize our total taxes payable? Is there any government money that we could access to assist us in getting started? Law Types of entities Intellectual property Patents Partnership / shareholder Agreements What form of business entity should we create? What type of agreement will help us manage our various intellectual contributions? How do we protect our product from piracy? How do we handle partners who walk away? Organizational Behaviour Individual differences Leadership Team roles Developing relationships Conflict Motivating Communication How do we address differences in personalities, abilities and motivation? How do we develop strong internal and external relationships? How do we ensure clear communication (consider message, medium and noise issues). Table of Contents Volume 32, 2005 LEARNER BEHAVIOR IN THE ONLINE CLASSROOM EXPERIENCE THE EFFECTIVENESS OF A SIMULATION EXERCISE FOR INTEGRATING PROBLEM-BASED LEARNING IN MANAGEMENT EDUCATION DEMONSTRATION OF FOUR WEB-BASED SIMULATIONS THRESHOLD COMPETITOR: A MANAGEMENT SIMULATION ENTREPRENEUR: A NEW VENTURE SIMULATION MERLIN: A MARKETING SIMULATION MICROMATIX: A STRAGETIC MANAGEMENT SIMULATION LEARNING STYLES INFLUENCES ON SATISFACTION AND PERCEIVED LEARNING: ANALYSIS OF AN ONLINE BUSINESS GAME INTERNATIONAL INTERNSHIPS: DESIGN AND EXPERIENCES SIM MAP: TURNING ACTION-BASED LEARNING INTO SIMULATED CONSULTING PROJECTS NOTEL HEALTH SERVICES: A ROLE-PLAYING SIMULATION TEACHING EXPERIENTIALLY WITH THE MADELINE HUNTER METHOD: AN APPLICATION IN A MARKETING RESEARCH COURSE SIMULATING CUSTOMER LIFETIME VALUE: IMPLICATIONS FOR GAME DESIGN AND STUDENT PERFORMANCE VIRTUAL PROGRESS: SIMULATING ECONOMIC DEVELOPMENT ONLINE STRATEGIC MANAGEMENT: AN EVALUATION OF THE USE OF THREE LEARNING METHODS IN CHINA ADOPTION OF DISCUSSION-BASED TEACHING AND ASSESSMENT IN TEACHING STRATEGIC MANAGEMENT IN CHINA STUDENTS' VIEW ON THE USE OF CASE METHOD IN CHINA CHINESE STUDENTS' PERCEPTIONS OF BUSINESS GAMING EXPERIENCECSR - A CORPORATE SOCIAL RESPONSIBILITY SIMULATION CREATING DYNAMIC INTERACTION IN A VIRTUAL WORLD: ADD VALUE TO ONLINE CLASSROOMS THROUGH LIVE ELEARNING AND COLLABORATION: A DEMONSTRATION CAPABILITIES OF EXPERIMENTAL BUSINESS GAMING A COMPARISON BETWEEN SOLUTIONS AND DECISIONS IN A BUSINESS GAME VALIDATING BUSINESS SIMULATIONS: DOES HIGH PRODUCT QUALITY LEAD TO HIGH PROFITABILITY? ALIGNING ART AND EPISTEMOLOGY: ILLUSTRATIONS TO DISTINGUISH DISCOVERY FROM KNOWLEDGE BUILDING TUTORIALS USING WINK STUDENTS AS LAB RATS: THE ETHICS OF CONDUCTING NON-PEDAGOGICAL RESEARCH IN THE CONTEXT OF CLASSROOM SIMULATIONS AND EXPERIENTIAL LEARNING THE EFFECT ON GAME PERFORMANCE OF DIFFERENT MEASURES AND UNITS OF ANALYSIS IN QUANTITATIVE ANALYSIS ANALYZING AND THINKING WHILE PLAYING A SIMULATION COMPUTER BUSINESS SIMULATION DESIGN: THE ROCK POOL METHOD EXPANDING THE ROLE OF E-ROOMS IN DISTANCE LEARNING APPLICATIONS TO MANAGEMENT EDUCATION APPLICATION OF TRADITIONAL AND ONLINE JOURNALING AS PEDAGOGY AND MEANS FOR ASSESSING LEARNING IN AN ENTREPRENEURIAL SEMINAR DEVELOPING MANAGERIAL EFFECTIVENESS: ASSESSING AND COMPARING THE IMPACT OF DEVELOPMENT PROGRAMMES USING A MANAGEMENT SIMULATION OR A MANAGEMENT GAME INTERNATIONAL MANAGEMENT GAME Œ AN INTEGRATED TOOL FOR TEACHING STRATEGIC MANAGEMENT INTERNATIONALLY STUDENT EXPECTATIONS OF SIMULATIONS DISTANCE EDUCATION DELIVERY OF AN INTENSIVE SIMULATION BASED COURSE TEACHING SERVICE LEARNING USING A BUSINESS GAME ROLE-PLAY SIMULATION EDUCATIONAL PERSPECTIVE OF COLLABORATIVE VIRTUAL COMMUNICATION AND MULTI-USER VIRTUAL ENVIRONMENTS FOR BUSINESS SIMULATIONS SIMULATION PERFORMANCE & PREDICTOR VARIABLES: ARE WE LOOKING IN THE WRONG PLACES TO MEASURE THE RIGHT LEARNING? VIDEO CASE: JET-A-WAY INC. Œ FOCUSING ON DIVERSITY AND ENTREPRENEURIAL LEADERSHIP ACTIVE LEARNING: WHAT IS IT AND WHY SHOULD I USE IT? FACILITATING THROUGH COLLABORATIVE REFLECTIONS TO ACCOMMODATE DIVERSE LEARNING STYLES FOR LONG-TERM RETENTION ONLINE CUMULATIVE SIMULATION TEAM PERFORMANCE PACKAGE WHEN PROPHECY FAILS: A SMALL SAMPLE, PRELIMINARY STUDY USING EXPERIENTIAL LEARNING TO INTEGRATE THE BUSINESS CURRICULUM FORECASTING STOCK VALUE EMPLOYING PROGRESSIVE PRACTICES AND PRINCIPLES TO FACILITATE SEMINAR ROOM LEADERSHIP AMONG LEARNERS: SHARED POWER AND COLLECTIVE ACCOUNTABILITY INDIVIDUAL ACHIEVEMENT DOES NOT GUARANTEE TEAM PERFORMANCE: AN EVIDENCE OF ORGANIZATIONAL LEARNING WITH BUSINESS GAMES DECISION MAKING IN BUSINESS SIMULTION DESIGN ZUG UM ZUG 2015: COLLECTIVE BARGAINING AS A TWO-LEVEL GAME A NEW METHOD FOR MODELING INNOVATION AND R&D IN BUSINESS SIMULATIONS: ILLUSTRATED WITH A SIMULATION OF A NEW PRODUCT DEVELOPMENT PORTFOLIO DEVELOPING A MICRO SIMULATION EFFECT OF MARKET SHARE AND PRODUCTION EXPERIENCE ON COMPANY PROFITABILITY RE-DESIGNING A CURRICULUM THAT VALUES A WORK-INTEGRATED APPROACH TO STUDENT LEARNING HOW SIMULATIONS AND EXPERIENTIAL LEARNING FIT AS WE COMPLY WITH LEGISLATIVE AND AACSB ASSESSMENT GUIDELINES: HOW TO DEVELOP ACADEMICALLY SOUND COURSES THAT ALSO MEET STAKEHOLDER NEEDS EVALUATING SERVICE LEARNING: REFLECTION AND ASSESSMENT FROM THE STUDENT POINT OF VIEW SIMPLIFYING AND ENHANCING FINANCIAL ANALYSIS IN CASES AND SIMULATIONS OVERCOMING THE BUSINESS GAME COMPLEXITY PARADOX EXPLORING THE PREFERENCE IN LEARNING APPROACH AMONG THE HONG KONG UNIVERSITY STUDENTS: CASE STUDY, PROBLEM-BASED OR TRADITIONAL TEXTBOOK QUESTION AN EXERCISE FOR EXPLORING THE RELATIONSHIP BETWEEN JUNGIAN PSYCHOLOGICAL TYPES AND POLITICAL STYLE IN THE WORKPLACE EVALUATING THE DIRECTION OF RESEARCH IN ONLINE EDUCATION: ARE WE GOING ANYWHERE? AIS RAIL SYSTEM: A COMPUTER-BASED JOB-ORDER COST SIMULATION BLOOM BEYOND BLOOM: USING THE REVISED TAXONOMY TO DEVELOP EXPERIENTIAL LEARNING STRATEGIES DELIVERING A TECHNOLOGY-BASED CASE IN A TECHNOLOGICAL WAY: THE SMARTCART CASE USING THE INTERNET TO ENHANCE COURSE PRESENTATION: A HELP OR HINDRANCE TO STUDENT LEARNING TEACHING PRACTICES: A CLUSTER ANALYSIS OF STUDENTS IN HONG KONG TEACHING PRACTICES: A CLUSTER ANALYSIS OF TEACHING STAFF IN HONG KONG EVALUATING A SIMULATION WITH A STRATEGIC EXPLORATION TOOL A SYMBOLIC MODEL OF THE SIMULTANEOUS ACHIEVEMENT OF CONCRETE BENEFITS AND LEARNING BY PARTICIPATING GROUPS IN EXPERIENTIAL ACTIVITIES: ‚THE SPHERE OF EXPERIENTIAL LEARNING