David Hsu - Faculty Research in Knowledge@Wharton

Under New Leadership, Will Yahoo Find Its Way?

Wed, 18 Jan 2012 15:33:22 EST

When Scott Thompson was named Yahoo's new CEO effective January 9, he became the fourth person in five years to take charge of the ailing Internet giant. Experts at Wharton say that Thompson, who was previously president of eBay's PayPal unit, might be Yahoo's last hope for becoming relevant again as a player in online display advertising, a market which the media company once dominated. But his main challenge, they say, is the same as his predecessors': Define what Yahoo wants to be.

The New Software Pricing Model: Can the Older Giants Compete?

Wed, 09 Nov 2011 15:16:32 EST

Cloud computing is not only changing how users access software applications, it's also upending the pricing model for software products. Fading fast are the days when software packages were sold in boxes with a one-time, perpetual license fee. Instead, consumers and businesses are increasingly turning to subscription models and are buying only those applications they need for particular tasks rather than broad, general-purpose suites. How are Microsoft, Oracle and other established companies that have traditionally relied on the boxed approach adapting to the new reality?

Life after Steve Jobs: What to Expect from the Next Generation at Apple

Wed, 12 Oct 2011 14:52:54 EST

The death of Apple co-founder Steve Jobs jolted the tech industry and prompted questions about where the visionary company goes from here. With Tim Cook now at the helm, the company is expected to shift from a focus on one figure at the top to more of a team approach. But can Apple sustain the culture of innovation that Jobs cultivated -- and continue its string of hits in an increasingly crowded market?

Is RIM Riding on the Edge?

Wed, 28 Sep 2011 13:16:47 EST

This fall, Research in Motion (RIM) is launching an armada of new smartphone devices based on its latest BlackBerry operating system in a big bet that it can reverse an ongoing slide in market share. Once so popular among corporate customers that its products were dubbed "CrackBerry" by addicted users, the company has lost significant ground since the launch of Apple's iPhone and Google's Android-based devices. Can it recover? Wharton experts say it's a dangerous period for RIM, but some changes in strategy might help.

What's Fueling the Tech Patent Bull Market?

Wed, 14 Sep 2011 15:07:07 EST

Pick any company in the technology industry, and you are likely to find a patent lawsuit associated with it. Oracle is suing Google for Android royalties; Motorola and Microsoft are in court; Apple is suing mobile phone manufacturer HTC and is waging a high-profile battle with Samsung. "There's a state of open warfare around patents," one Wharton expert notes. Why are the stakes for patents rising so quickly, particularly in the mobile market? And is a "patent bubble" in the making?

Upheaval at HP and Apple: What's Next for Tech

Wed, 31 Aug 2011 15:20:29 EST

It's been a month of seismic change for the tech sector. Hewlett-Packard, the largest computer and printer maker in the world, may begin to transition away from hardware by jettisoning its PC division. Meanwhile, Apple is facing the end of an era, with the announcement that visionary leader Steve Jobs is relinquishing his role as CEO. Knowledge@Wharton asked Wharton management professors Saikat Chaudhuri and David Hsu to discuss the outlook -- and future opportunities -- for HP and Apple.

'Brain Drain' or 'Brain Exchange': What Is the Cost When Immigrant Entrepreneurs Go Home?

Wed, 22 Jun 2011 15:58:47 EST

For a majority of highly skilled immigrants who want to start companies today, the promised land is no longer the United States, according to a recent report from the Kauffman Foundation. Some experts say the flow of immigrants back home to countries like India and China is a "brain drain" that robs the U.S. of new jobs and companies, and requires an immigration policy overhaul. Others see the flow as more of a "brain circulation" that benefits economies on both sides of the sea.

With Its New Music Storage and Player, Can Amazon Deliver in the Cloud?

Wed, 11 May 2011 16:38:59 EST

With the new Cloud Drive and Cloud Player, Amazon.com is taking media management virtual, allowing consumers to store and access their music remotely on Amazon's servers ("in the cloud," as it is known) and deliver it on demand to computers, tablets and smartphones. Experts and analysts expect Apple and others to launch competing music-related "locker" services, just as Google did on May 10. Amazon's move, which raises a number of legal questions, is also part of an effort by the company to become more entrenched with consumers, and possibly take on Apple's dominance in digital music sales and tablets.

The Flap over Cisco's Flip: Why the Company Killed off a Popular Product

Wed, 27 Apr 2011 14:51:52 EST

The Flip, a quick and easy video recorder that captures spontaneous moments for instant uploading to YouTube, is about to fold. Cisco Systems, which bought the Flip just two years ago, is closing the business in a move that illustrates how rapidly evolving technology and business strategies can force major corporate flip-flops.

Another Tech Bubble? Separating the Froth from the Facts

Wed, 13 Apr 2011 15:12:19 EST

Valuations are growing aggressively for Facebook, Groupon and a handful of other social media darlings. But does that growth signal the coming of another tech bubble? Not necessarily, say Wharton faculty and other experts, who note that the main issues are the extent to which these valuations are supported by real staying power, and whether or not these companies are having an undue influence across the tech landscape.

Is Google Stuck in 'Perpetual Beta'?

Wed, 30 Mar 2011 14:25:28 EST

Last month, Motorola's Xoom tablet launched on the Verizon Wireless network. Soon after, complaints began to surface that the tablet's operating system -- designed by Google -- was prone to crashes when running third party applications. Experts say that while Google's typical strategy of launching new products, and then perfecting them according to user feedback, might work for Gmail and other online products, it doesn't translate well to hardware-based devices like smartphones. In fact, this "perpetual beta" mode, they say, might become a handicap as the search giant moves into new markets.

Can Skype Go Corporate?

Wed, 16 Feb 2011 15:29:54 EST

Right now, Skype is a go-to service for far-flung families and friends trying to stay in touch. It offers free or low-priced calls and the chance to converse face-to-face via a webcam. But the company, which is widely expected to launch an initial public offering in 2011, wants to move into the business communications market and become a place where deals are made by CEOs and rank-and-file employees alike.

For AT&T, Is There Life after the Verizon iPhone?

Wed, 19 Jan 2011 16:05:35 EST

As AT&T's exclusive partnership to offer the iPhone dwindles to its final days, many are already speculating about how Apple's deal to sell the device through Verizon will affect AT&T's bottom line. While conventional wisdom is that AT&T will face a challenging 2011 without sole rights to sell the iPhone, say Wharton experts, the company still has a chance to minimize any damage inflicted by Verizon.

Better, Faster, Customizable: Who Will Win the Browser Battle?

Tue, 23 Nov 2010 15:27:40 EST

In the world of web browsers, it's beginning to look a lot like the 1990s. Back then, the Internet was just starting to become an integral part of daily life and Netscape Navigator and Microsoft Internet Explorer vied for control of the market. This time around, the browser battle includes an increasing number of competitors, most notably Internet Explorer, Mozilla Firefox and Google Chrome. Newcomers like RockMelt, a start-up that promises to integrate web browsing with social networking, are banking on innovative new features to stand out. But does winning the browser space mean much in environments -- like mobile devices -- that increasingly focus on standalone web-connected apps?

Can HP's New Leadership Create a Vision for the Future?

Wed, 27 Oct 2010 13:14:17 EST

New Hewlett-Packard CEO Leo Apotheker and non-executive board chairman Ray Lane take over the reins at the technology giant November 1, and the to-do list is daunting. Apotheker, the former CEO of business software company SAP, will have to convince doubters he is the right leader for HP, do battle with rivals such as IBM, Oracle and Apple, and set the company's long-term strategy. In addition, Apotheker must maintain the efficiency the company enjoyed under former CEO Mark Hurd, while gaining the buy-in from employees that his embattled predecessor reportedly lacked.

In Search of Capital: The Outlook for Start-ups in 2010

Wed, 29 Sep 2010 15:30:23 EST

On the face of it, 2010 looks like a bad time to start a new business. Early stage capital, whether it is venture funds, angel investors or bank loans, remains tight. And while technically the recession has passed, consumers and businesses are still keeping a tight hand on their wallets. Despite the obstacles, however, start-up formation has increased recently, possibly due to laid-off workers deciding to pursue their entrepreneurial dreams. For those who can find creative solutions to the financing challenge, starting a new business now may turn out to be perfect timing.

Nokia: Playing Catch Up From the Front

Wed, 29 Sep 2010 15:30:23 EST

Stephen Elop, Nokia's new CEO, has one tricky to-do list and not much time. Although Nokia is the top mobile device maker in the world, its products are seen as a step behind that of many competitors. To revitalize its brand, Wharton experts say, Nokia must in short order develop smartphones that effectively compete with Apple's iPhone and Google's Android devices, make key decisions on the future of the company's software offerings and establish itself as a player in the United States.

Dell's Diversification Strategy: 'A Day Late and a Dollar Short?'

Wed, 01 Sep 2010 16:07:02 EST

It has been a battle of the balance sheets as rivals Dell and Hewlett-Packard continue to wrangle over who will win the right to acquire 3PAR, a little known data storage company. While the 3PAR bidding war, which HP is expected to win, is part of Dell's ongoing ambition to get a bigger foothold in high-margin enterprise technology services, the $53 billion company has also been chasing consumers with lackluster products. As one expert asks: "Dell sees the need for diversification, but does it see the need for transformation?"

VC 'Super Angels': Filling a Funding Gap or Killing 'The Next Google'?

Wed, 01 Sep 2010 16:07:02 EST

A new crop of small, nimble and tech-savvy venture capitalists are trying to bring back into vogue a more entrepreneurial, forward-thinking and risk tolerant model for investing in start-ups. Dubbed "super angels," these firms and individual investors fill the funding gap between angel investors and large VC firms. Although the sector boasts success stories, it also faces challenges -- including some industry observers who complain that super angels are cutting short the lives of companies that could be "the next Google" by selling them before they have had time to develop a market.

Are There Second Acts in the Lives of Aging Internet Firms?

Wed, 18 Aug 2010 16:14:34 EST

Yahoo is busy integrating social networking features from Facebook and investing in online content. Microsoft touts its new search engine, Bing, every chance it gets in an attempt to take on Google. And AOL, the ailing Internet services company, has spent the last year restructuring and divesting. At the recent Supernova conference in Philadelphia, Brad Garlinghouse, president of AOL consumer applications, described the company's transformation as an attempt at a "second act." Wharton faculty weigh in on what it would take to bring aging Internet companies like AOL up to speed.

Sprint's 4G Advantage: Game Changer or Not Enough to Call Home About?

Wed, 23 Jun 2010 15:52:02 EST

Sprint has been languishing in a distant third place in the wireless sector. Now it seems to have a chance to gain ground with a hot-selling phone and a fast next-generation data network, the first in the industry to be up and running. But it is far from clear, industry experts say, that Sprint will be able to sign up enough new subscribers to seriously challenge wireless leaders Verizon and AT&T. What's more, the company's first-mover advantage in the 4G world may be short lived -- and, so far, it has not come up with a blockbuster app that would keep it ahead of competitors.

Tarnished Brands at Bargain Prices: Will the Tech Sector's Latest Growth Strategy Pay Off?

Wed, 09 Jun 2010 16:48:25 EST

Growth spurts in the technology industry used to come in the form of ground-breaking startups. But the industry is maturing, and many companies are now large established firms. When these businesses want to increase their industry share, step into new markets or jumpstart their innovation engines, they often turn to mergers and acquisitions -- particularly when they can score a bargain by scooping up a former highflier that is down on its luck. But as companies in other established industries have learned, the hard work often begins after the deal closes -- and the buyer tries to get the erstwhile highflier back up in the air.

Going Mobile: How iAd and AdMob Move Apple vs. Google to a New Playing Field

Wed, 26 May 2010 16:26:29 EST

What spending in the mobile advertising industry lacks in heft, it more than makes up for in buzz. Witness Google's recent purchase of AdMob, which brings together the two largest mobile ad networks, and Apple's recent efforts to gain a stronger foothold in the market. The battle between the two major players could represent a tipping point for mobile advertising, Wharton experts and others say, and suggests that the sector could become a significant money-maker in the future.

'Act Now, Apologize Later': Will Users 'Friend' Facebook's Latest Intrusion on Privacy?

Wed, 12 May 2010 15:14:35 EST

With more than 400 million users, social networking giant Facebook theoretically has a lot to lose if it sidesteps privacy without consumers' consent. But each time the company introduces new features that make users' personal information available to an increasingly wide circle, the site continues to grow. This time, the company's new "Open Graph" plan -- an attempt to link Facebook users to other parts of the web by sharing their "likes" and other activities across sites -- has come under scrutiny. Will users revolt -- or will they adapt to Facebook's ever-shifting privacy policies and what some Wharton experts view as deliberately difficult opt-out procedures?

Smartphone Patent Battles: Dumb Move or Smart Strategy?

Wed, 28 Apr 2010 14:56:07 EST

In March, Apple sued rival smartphone maker HTC over patent infringements. Earlier this year, Motorola sued Research in Motion, maker of the BlackBerry, for similar reasons. And last year, Nokia sued Apple -- only to be counter-sued. According to experts at Wharton, the flurry of patent battles playing out in the smartphone arena is the mark of a young industry with billions of dollars at stake. And while companies like Apple have much to gain from aggressive patent protection, there are some potential downsides to that strategy as well.

Will Windows Phone 7 Reboot Microsoft's Mobile Strategy?

Wed, 31 Mar 2010 14:51:19 EST

Microsoft has a lot riding on Windows Phone 7, the company's attempt to revive its mobile strategy and introduce an operating system that is more consumer friendly. With the move, the software giant is hoping to recapture momentum in a U.S. smartphone market dominated by Apple's iPhone and Research in Motion's BlackBerry, with Google's Android platform quickly gaining buzz. But Wharton experts say it's unclear if the company's latest offering will make Microsoft "phone fashionable" again.

Grab Your Goggles: Will 3-D Be the Next Wave in Home Entertainment?

Wed, 17 Feb 2010 17:36:07 EST

James Cameron's three-dimensional (3-D) film Avatar -- now the highest-grossing film of all time -- is helping to set the stage for what could be the next wave in home entertainment: 3-D televisions and other electronics that aim to bring an immersive experience to mainstream living rooms. At the Consumer Electronics Show in Las Vegas in January, Sony and other companies unveiled plans to launch 3-D compatible televisions and other products, and 3-D content is already under development at networks such as ESPN. Still, Wharton faculty and other experts say it's unclear whether consumers, who have spent recent years upgrading to high-definition television, will reach for their 3-D goggles just yet.

Will Google's Nexus One Change the Wireless Industry?

Wed, 20 Jan 2010 16:35:09 EST

On January 5, Google launched the Nexus One -- its new "superphone" -- with a good deal of fanfare. Although the launch itself was quickly overshadowed by the online giant's surprise showdown with China over censorship, the company's attempt to rewrite the rules of the wireless industry has not gone unnoticed. Through its online store, Google is selling the Nexus One directly to consumers, sidestepping service providers that operate as device gatekeepers under the traditional sales model. The operation is off to a somewhat rocky start, leaving some observers to wonder whether Google can adapt to its new role in direct sales, but the bigger question is whether Google can alter consumer behavior and the economics of an entire industry.

Reel Time: The Incredible Shrinking Window for Movie Releases

Tue, 24 Nov 2009 16:13:30 EST

A decade ago, movie fans who wanted to forgo paying theater admission waited an average of five months before they could watch a film in their own living rooms. Today, the window between theatrical releases and distribution via other channels like DVDs and cable television has shrunk to four months or less -- and in some cases has even disappeared, with films making their debuts simultaneously in multiple channels. According to Wharton faculty, declining DVD sales and other pressures mean that studios are likely to continue experimenting aggressively with movie release timing. Still, the pleasure of watching a movie in a darkened theater is not likely to go away any time soon, they say.

Netflix: One Eye on the Present and Another on the Future

Wed, 28 Oct 2009 17:19:29 EST

In a year when DVD sales are falling and studios are facing major shakeups in their executive ranks, the movie industry has at least one success story to cheer about: Netflix. Despite the recession, the Los Gatos, Calif.-based company continues to thrive and is now in a race to transition to a business model focused on streaming content online while continuing to exploit its current model based on physical DVD distribution. According to Wharton faculty, Netflix has managed this balancing act deftly so far, but growing competition in digital distribution means that it may not have an advantage for long.

Early Tremors: Is It Time for Another Social Network Shakeout?

Wed, 14 Oct 2009 15:33:51 EST

Faint rumblings have begun in the social networking landscape. Facebook acquired smaller rival FriendFeed in August; Friendster, viewed as an also-ran in the U.S., has refocused its operations on the Asia-Pacific region; and News Corp., owner of MySpace, has reshuffled executives and restructured the unit as traffic to the site slows. Experts at Wharton say there's still a lot of growth left in the sector, but a round of consolidation, reinvention and restructuring is likely in the not-too-distant future.

The iPhone in China: Will Apple Connect with the World's Biggest Mobile Market?

Wed, 16 Sep 2009 16:45:37 EST

Global launches can be rocky, as Apple knows well. Last year, the company introduced its iPhone in India, but instead of the throngs of consumers seen at launch events in the U.S., the journalists assigned to cover the rollout reportedly outnumbered the customers. According to experts, the problems included a lack of marketing and a price tag set too high for Indian consumers. Now, as Apple prepares for an October launch of the iPhone in China in cooperation with service provider China Unicom, many are wondering if it will face similar hang-ups in the world's largest cell phone market.

Google Everywhere: As the Search Giant Grows, How Much Is Too Much?

Wed, 02 Sep 2009 16:37:02 EST

As it expands into new markets with additional products and platforms, Google is beginning to look a bit like Microsoft in the mid-1990s: A company with big ambitions and an ever-growing list of competitors. Its latest skirmish with Apple over an integrated telephony and voicemail management application for the iPhone is just one example of what is likely to come, according to Wharton faculty and other experts. In addition, they say, as Google tries to be virtually everywhere that consumers are, it needs to avoid making the same mistakes that Microsoft made, and it should pay close attention to privacy issues.

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.