David Hsu - Faculty Research in Knowledge@Wharton

As Smartphones Proliferate, Will One Company Emerge as the Clear Market Winner?

Wed, 27 May 2009 17:04:13 EST

Just as computer operating systems vied for dominance back in the late 1970s and early 1980s, smartphone makers these days are jostling for market share, hoping that their mix of capabilities -- ranging from web surfing to email to calendar management -- will ensure them a critical mass of customers. What the makers of such mobile devices as the BlackBerry, iPhone and Treo are trying to avoid is the outcome of that earlier race, when one company -- Microsoft -- ended up the dominant player.

All That Twitters Isn't Gold: A Popular Web Application in Search of a Business Plan

Wed, 15 Apr 2009 15:21:37 EST

The world may be buzzing about Twitter, but will the San Francisco-based messaging service with the high cool factor ever be a money maker? Or will it operate at a perpetual loss, as one Wall Street analyst suggested, "until the next cool Web 2.0 social networking concept comes along and Twitter tweets no more."

Job-less: Steve Jobs's Succession Plan Should Be a Top Priority for Apple

Wed, 07 Jan 2009 16:53:55 EST

Companies with strong corporate cultures can usually count on continued success if they can seamlessly transfer power to an executive from a strong bench of managers. But selecting the successor to Apple CEO Steve Jobs will be tricky, given the degree to which he is tied to Apple's identity, say Wharton faculty.

Will Its 'Chrome' Web Browser Put a Shine on Google's Long-term Strategy?

Wed, 03 Sep 2008 17:08:01 EST

Casual observers may have concluded that Google's introduction this week of its 'Chrome' web browser was a direct assault on the dominance of Microsoft's Explorer. But Wharton professors David Hsu and Kevin Werbach see a longer-term strategy at work.

Tuning in a Post-merger Strategy: Sirius XM Must Cut Costs and Build Its Case

Wed, 03 Sep 2008 17:03:03 EST

Now that the FCC has approved a merger of the two satellite radio companies, Sirius XM's big challenges are to stop the flow of red ink and settle on a strategy to compete with the myriad of other portable music providers. Says one Wharton professor: "They may have one more shot at a Hail Mary pass."

Will Technology Firms Bridge the Chasm Between Computer and TV?

Wed, 25 Jun 2008 15:40:07 EST

Hewlett-Packard, Netflix, Apple and others want to move content from the Internet to that big flat-screen TV in the living room. Wharton experts wonder if there is a market for this and indeed, whether consumers are even willing to accept interactive television. The best advice to companies for now: Hedge your bets.

Gadgets at Work: The Blurring Boundary between Consumer and Corporate Technologies

Wed, 16 Apr 2008 16:43:25 EST

The boundaries between work and play are beginning to disappear as consumer technologies -- including social networking tools, user generated content and wikis -- are increasingly adopted by corporate America. For technology companies, this emerging "consumerization" trend represents an opportunity, but it also brings new management challenges as companies struggle to embrace these technologies in a way that doesn't limit their usefulness but also doesn't result in lost time or money. And while there may be productivity gains for corporations that experiment with integrating the latest consumer gadgets, security remains the deal breaker, say experts at Wharton.

Microsoft and Yahoo: Does It Make Sense (and Will It Work)?

Wed, 06 Feb 2008 15:51:59 EST

On Friday, February 1, Microsoft announced it was making an unsolicited bid to acquire Yahoo for $44.6 billion in cash and stock, a 62% premium over Yahoo's stock price at the time. Yahoo is officially "evaluating" the offer and, according to reports, is talking to other companies as possible suitors. Meanwhile, Google seems determined to derail the deal, stating that it finds the proposed acquisition "troubling" and offering to help Yahoo come up with other options. Does the deal make sense, and if it goes through, how difficult will it be to meld these two giant technology companies into one? Knowledge@Wharton spoke with Wharton management professors Larry Hrebiniak and David Hsu to get their views on Microsoft's offer.

For New CEO John Donahoe, 'It's eBay's Game to Lose'

Wed, 06 Feb 2008 15:51:11 EST

On January 29, online auctioneer eBay unveiled plans to revamp the fees it charges sellers, reduce fraud and increase the volume of transactions. It's the first move by CEO-elect John Donahoe, who will take over the reins of eBay on March 31 in the wake of long-time CEO Meg Whitman's announcement that she plans to step down. Donahoe's mission is to reinvigorate a company that remains dominant in online auctions, but is vulnerable to increased competition from both large and small rivals. Wharton faculty and others offer Donahoe a game plan for moving forward.

Marketing Presidential Candidates on the Web Goes Mainstream: But Does It Get Votes?

Wed, 09 Jan 2008 15:30:15 EST

The January 3 Iowa caucuses and the January 8 New Hampshire primary showcased the 2008 presidential campaign's ongoing political dogfight as candidates battled for their parties' nominations. Under the surface, however, the scrum represents a tipping point in the use of the Internet as a campaign tool, say experts at Wharton. In many respects, the 2008 race resembles any sophisticated Internet marketing campaign that lets consumers swap information, connect with friends and perhaps make a purchase -- or, in this case, a donation. Indeed, selling a candidate may not be much different than selling any other high-end item, although possibly less effective.

The Benefits, and Potential Side Effects, of Sharing Medical Records Online

Wed, 28 Nov 2007 15:54:07 EST

On October 4, Microsoft launched HealthVault, a free web-based service that allows users to store their medical records online and eventually share them with doctors. On October 17, an executive at Google noted the company's interest in health information services. And on November 19, 23andMe announced a program that will allow consumers to pay $999 for the privilege of exploring their own genomes. These efforts could give patients more control over their medical records and let them share information with doctors, nutritionists or athletic trainers, among others. But the concept also faces serious hurdles, such as privacy concerns, the absence of an accepted standard for sharing medical information, and a health care industry that is reluctant to change, according to experts in the field.

Google: In Search of Itself

Wed, 14 Nov 2007 15:20:43 EST

In a span of four days earlier this month, Google launched an initiative to enable social networking tools to work across dozens of web sites and rounded up 33 partners to develop software to power a new generation of cell phones. While these efforts illustrate Google's determination to keep expanding its territory, they also increase the challenges faced by the $200 billion company. And they pose a question that seems to crop up more and more these days: Where is Google headed?

Venture Capital Firms Set Their Sights on New Ideas -- Not New Technologies

Wed, 08 Aug 2007 15:43:21 EST

Fast-growing social networking site Facebook and mobile messaging service Twitter didn't introduce break-through technologies, but they have become phenomenal success stories nonetheless. Increasingly, "web 2.0" companies like these are altering the traditional venture capital formula, which used to count technology differentiation as a key requirement when evaluating new targets. In many cases, technology has become a commodity, but a big idea can go a long way provided there's a rapidly growing audience. As VC firms look for new investments, several questions come into play: How should companies be evaluated when they rely on technology that is easily replicated? How much value does a big audience carry? What is the preferred exit strategy? Wharton faculty and VC experts weigh in on these and other questions.

Some Free Advice for Yahoo CEO Jerry Yang

Wed, 25 Jul 2007 14:40:29 EST

Yahoo co-founder Jerry Yang is about to find out that being a CEO is a lot different than being the ceremonious Chief Yahoo, as he was called until last month. Yang, who became Yahoo's new CEO on June 18, faces a daunting to-do list that includes reinvigorating the company, closing a performance gap with Google, thwarting challenges from social media sites such as Facebook, delivering financial results that make Wall Street cheer and charting a course for the future. His first deadline comes in about 100 days. Knowledge@Wharton asked faculty members for advice on how Yang should handle this management challenge.

In Biotech Startups, Knowledge Bridging Can Be the Key to Creativity

Wed, 12 Jul 2006 17:28:21 EST

In 2004, engineers at Massachusetts-based Bose Corp., a maker of stereo speakers and other audio equipment, introduced a startling new product that had nothing to do with sound: an automobile suspension. Bose's founder, Amar Bose, had suspected that his company's knowledge of the physics of acoustics could also help drivers defeat bumps and potholes. The suspension, now ready for the mass market, exemplifies a technique known as knowledge bridging -- taking expertise from one field, applying it to a completely different one and thus creating an unprecedented product or service. A recent study co-authored by Wharton management professor David Hsu, "Knowledge Bridging by Biotechnology Startups," suggests that knowledge bridging can help companies bring products to market faster and raise money more quickly.

What Do Entrepreneurs Pay for Venture Capital Affiliation?

Wed, 05 May 2004 13:10:03 EST

A software services company looking for an early-stage round of investment from venture capital funds gets four offers. Two of them value the company at $10 million, one at $12.5 million and one at $20 million. Any of the offers would net the software company approximately $8 million in cash inflows. It would seem to be a no-brainer. Accept the investment at the highest so-called “pre-money” valuation. So why did the company pick the $12.5 million offer? It’s a question that Wharton management professor David Hsu explores in a recent paper measuring the impact of “intangibles” – such as reputation and access to networks – on VC relationships with entrepreneurs.

Why Some Start-ups Choose Cooperation over Competition

Wed, 07 Apr 2004 14:56:28 EST

When faced with the challenge of getting its new AIDS drug, Fuzeon, on the market, Trimeris Inc., a small biotech company based in Durham, N.C., didn’t hire a sales force or marketing staff. Instead, it partnered with Hoffman-La Roche Inc., the Swiss pharmaceutical giant, to commercialize the drug. In a co-authored paper entitled, When Does Start-up Innovation Spur the Gale of Creative Destruction, Wharton management professor David Hsu argues that this sort of cooperation can work better in certain industries than the more traditional competitive model. It all depends on such factors as intellectual property rights, relationships with intermediaries and the need for sizeable investments.