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2026/2027  KAN-CEMAV1001U  Strategic Innovation and Business Growth: Leveraging AI and Sustainable Practices

English Title
Strategic Innovation and Business Growth: Leveraging AI and Sustainable Practices

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Start time of the course First Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 150
Study board
Study Board for Markets & Innovation
Programme Cand.merc. - Økonomisk Markedsføring (EMF)
Course coordinator
  • Claus Varnes - Department of Marketing (Marketing)
Please find contact information for Student Hub, student Guidiance Services etc. on My.cbs.dk
Main academic disciplines
  • Innovation
  • Management
  • Strategy
Teaching methods
  • Face-to-face teaching
Last updated on 27-01-2026

Relevant links
Learning objectives
The objective of the course is to provide the student with a deeper understanding of challenges and opportunities in managing development and innovation processes. The student will develop competences in analysing the complexity in product, service and process development, through a structured approach. Many decision-making situations in the student’s future career relates to uncertainty and risk, which is specifically the case within product, service and process innovation. This will challenge the evaluation of what might be relevant and/or irrelevant. The course seek to advance the students understanding and competences with a focus on managing innovation that contains strategic business challenges in innovation processes and work in a cross-disciplinary context. To be awarded with the highest grade (12), must the student without significant shortcomings, fulfil the following objectives:
  • Be able to apply relevant models, concepts and theories from the curriculum to an innovation and development case of interest.
  • Identify and analyse the relationships between models, concepts and theories mutually in relation to the management of product, service or process development and innovation case challenges.
  • Critically assess the value of the models, concepts and theories for management of product, service or process development and innovation.
  • Reflect on the value of the models, concepts and theories for management of product, service or process development and innovation in the context of sustainability and scarce resources
Examination
Strategic Innovation and Business Growth: Leveraging AI and Sustainable Practices:
Exam ECTS 7,5
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance, see also the rules about examination forms in the programme regulations.
Individual or group exam Oral group exam based on written group product
Number of people in the group 2-4
Size of written product Max. 10 pages
Definition of number of pages:
Groups of
2 students 5 pages max.
3-4 students 10 pages max

Note that the exam is a group exam. If you are not able to find a group yourself, you have to address the course teacher who will place you in a group.

Students who wish to have an individual exam might be able to write a term paper in the course. Please see the cand.merc. rules for term papers for more information.
Assignment type Synopsis
Release of assignment Subject chosen by students themselves, see guidelines if any
Duration
Written product to be submitted on specified date and time.
10 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Grading scale 7-point grading scale
Examiner(s) Internal examiner and second internal examiner
Exam period Autumn
Make-up exam/re-exam
Same examination form as the ordinary exam
Re-take is to be based on the same reports as the ordinary exam:

* if a student is absent from the oral exam due to documented illness but has handed in the written group product she/he does not have to submit a new product for the re-take.

* if a whole group fails oral exam they must hand in a revised product for the re-take.

* if one student in the group fails the oral exam the course coordinator chooses whether the student will have the oral exam on the basis of the same product or if she/he has to hand in a revised product for the re-take.
Course content, structure and pedagogical approach

The course's objective is twofold. 

First, understand the many components of managing product development and innovation. The course offers insights into innovation processes and methods for making smart decisions amid uncertainty. In general, new products have a 50% success rate, while new services have a somewhat lower percentage. The problem with success rates constitutes a challenge as many resources are allocated to non-profitable activities. Managing uncertainty and risk is therefore extremely important in development and innovation processes. As a result, methods for better portfolio management and decision-making, knowledge distribution, quality assessment, and the complexities of managing teams versus individuals will be discussed.

Second, will the course provide a framework for future product creation and innovation if resources become more scarce (e.g., more expensive)? Climate change and pollution from present production and consumption habits pose a threat to firms' future competitive advantage. Hence, businesses will need to address these challenges through product development and innovation. Business models and value propositions that will fulfil future needs will be distinct from existing solutions, necessitating the development of new competencies in innovation management. Many stakeholders advocate for a circular economy as a competitive business model. The course's second leg will teach students how to design circular economy businesses for sustainable development and innovation.

The instruction focusses on the practical aspects of managing innovation and development. We will use a solution-focused textbook as well as journal articles to problematise. The title of the course indicates that the turning point is new products and services, but we will also examine business models as another innovation kinds coupled with process innovation. 

Taking a fresh approach to future business difficulties rather than relying on outdated answers. Seeking to provide an awareness of how to use managerial techniques to reduce uncertainty and risk, but most importantly, making innovation an object of management. Furthermore, how to build incentives that promote effective performance in research and development within the organisation and in relation to market dynamics.
The following are key topics for managing product, service, and process innovation.

  • The Pentathlon Framework: A Basic Structure for Innovation and Development
  • Managerial strategies for ideation, selection, and execution
  • The importance of strategy and organisational culture in innovation processes
  • Business model design and innovation.
  • Design principles for innovation in the circular economy with limited resources.
  • Performance evaluation and portfolio management
  • Market inertia and socio-technological system transition

 

 
Research-based teaching
CBS’ programmes and teaching are research-based. The following types of research-based knowledge and research-like activities are included in this course:
Research-based knowledge
  • Classic and basic theory
  • Methodology
Research-like activities
  • Discussion, critical reflection, modelling
Description of the teaching methods
Teaching encompasses lecturing, group work, presentations, and discussions led by both students and teachers. The teaching style is informal to enhance the learning process. 

Two textbooks and paper-based instruction will be utilised. This presents an opportunity to adhere to a structured approach informed by textbooks and supplemented by in-depth insights from journal articles, providing students with a comprehensive overview and specific knowledge within the field.

Given that this is a quarter-semester course, will the lectures be condensed and the course pace is accelerated. This presents an opportunity for concentrated advancement; however, it also requires students to maintain a high level of effort to adequately prepare for the lectures. The course will feature visits from high-level corporate managers who will provide students with insights into the management of product development and innovation processes in operational businesses.
Feedback during the teaching period
Feedback is provided during the course at class in general. Meaning that all questions will be taken seriously and answered properly.

Group feedback, which is the main feedback event, will take place as a midt term evaluation and be given as part of the student groups presentation of chosen exam case. The groups will present what they perceive is a fine case for exams and the related theories that are envisioned to apply in order to understand the problem at stake. The teacher will on this background provide feedback on choice of case and the related proposed theories, in order to either adjust the approach or approve to work on.
Student workload
Teaching 30 hours
Preparation 147 hours
Exams and exam preparation 29 hours
Expected literature

Books:

Goffin, K. and Mitchell, R. (2025). Innovation Management – Effective Strategy & Implementation, Bloomsbury, 4th Edition.

 

 

Tentative list of journal papers:

 

  • Cooper, R.G. and Sommer, A.F. (2016). Agile-Stage-Gate: New idea-to-launch method for manufactured new products faster, more responsive, Industrial Marketing Management, 59, 167-170. https:/​/​doi.org/​10.1016/​j.indmarman.2016.10.006
  • Christiansen, J.K. and Varnes, C.J. (2009). Formal rules in Product Development: Sensemaking of Structured Approaches, Journal of Product Innovation Management, 26, 502-519. DOI: 10.1111/​j.1540-5885.2009.00677.x
  • Cennamo, C. and Gawer, A. (2016). Towards a theory of ecosystems, Strategic Management Journal, Vol. 39, pp. 2255-2276. DOI: 10.1002/smj.2904
  • Dattée, B., Alexy, O. and Autio, E. (2018). Maneuvering in poor visibility: How firms play the ecosystem game when uncertainty is high, Academy of Management Journal, Vol. 61, No. 2, pp. 466-498. https:/​/​doi.org/​10.5465/​amj.2015.0869Bentzen, E., Christiansen, J.K. and Varnes, C.J. (2011). What attracts decision makers´ attention? Managerial allocation of time at product development portfolio meetings, Management Decisions, 49, (3), 330-349. DOI 10.1108/​00251741111120734
  • Christiansen, J.K. and Varnes, C.L. (2008). From models to practice: Decision making in portfolio meetings, International Journal of Quality and Reliability Management, 25, (1), 87-101. https:/​/​doi.org/​10.1108/​02656710810843603
  • Borland, H. and Lindgreen, A. (2013). Sustainability, Epistemology; Ecocentric Business, and Marketing Strategy: Ideology, Reality, and Vision, Journal of Business Ethics, Vol. 117, pp. 173-187. DOI 10.1007/​s10551-012-1519-8
  • Bocken et al. (2016). Product design and business model strategies for a circular economy, Journal of Industrial and Production Engineering, Vol. 33, Issue 5, pp. 308-320. http:/​/​dx.doi.org/​10.1080/​21681015.2016.1172124
  • Cooper, R.G. and Dreher, A. (2010). Voice-of-customer Methods – What is the best source of new-product ideas?, Marketing Management, 38-43. https:/​/​www.stage-gate.com/​wp-content/​uploads/​2018/​06/​wp_40.pdf
  • Goffin, K., Varnes, C.J., van der Hoven, C. and Koners, U. (2012). Beyond the Voice of the Customer – Ethnographic Market Research, Research-Technology Management, 45-53, DOI: 10.5437/08956308X5504063Steffen et al. (2015). ´Planetary Boundaries: Guiding Human Development on a Changing Planet´, Science, Vol. 347, issue 6223, pp. 736-745.  DOI: 10.1126/science.1259855
  • Kaplan, R.S. and Norton, D.P. (2001). Transforming the balanced scorecard from performance measurement to strategic management, Accounting Horizons, 15, (2), 147-167. 
  • Rajala, R. et al. (2018). How does Intelligent Goods Shape Closed-Loop Systems?, California Management Review, Vol. 60, Issue 3, pp. 20-44. https:/​/​doi.org/​10.1177/​0008125618759
  • Braungart, M., McDonough, W. and Bollinger, A. (2007). Cradle-to-cradle design: creating healthy emissions – a strategy for eco-effective product and system design, Journal of Cleaner Production, Vol. 15, pp. 1337-1348. doi:10.1016/​j.jclepro.2006.08.003
  • Lewandowski, M. (2015). Designing the Business Models for Circular Economy – Towards the Conceptual Framework, Sustainability, Vol. 8, Issue 43, pp. 1-28. doi:10.3390/su8010043
  • Brown, S.L. and Eisenhardt, K.M. (1995). Product development: Past research, present findings, and future directions, Academy of Management Review, 20, (2), 343-378. https:/​/​www.jstor.org/​stable/​258850
  • Borland, H., Ambrosini, V., Lindgreen, A. and Vanhamme, J. (2016). Building Theory at the Intersection of Ecological Sustainability and Strategic Management, Journal of Business Ethics, Vol. 135, pp. 293-307. DOI 10.1007/​s10551-014-2471-6
  • Lieder, M., Asif, F.M.A., Rashid, A., Mihelic, A. and Kotnik, S. (2017). Towards circular economy implementation in manufacturing systems using a multi-method simulation approach to link design and business strategy, International Journal on Advanced Manufacturing Technology, Vol 93, pp. 1953-1970. DOI 10.1007/​s00170-017-0610-9 
  • Lieder, M., Asif, F.M.A., Rashid, A., Mihelic, A. and Kotnik, S. (2018). A conjoint analysis of circular economy value propositions for consumers: Using “washing machines in Stockholm” as a case study, Journal of Cleaner Production, Vol. 172, pp. 264-273. https:/​/​doi.org/​10.1016/​j.jclepro.2017.10.147
  • Hernes, T. (2010). Actor-Network Theory, Callon´s Scallops, and Process-Based Organization Studies, in Process, Sensemaking, and Organizing, United Press Scholarship Online. DOI:10.1093/​acprof:oso/​9780199594566.003.0009Frishammar, J. and Parida, V. (2019). Circular Business Model Transformation: A Roadmap for incumbent firms, California Management Review, 61 (2), 5-29. https:/​/​doi.org/​10.1177%2F0008125618811926Abdelkafi, N. and Taüscher, K. (2016). Business Models for Sustainability From a System Dynamics Perspective, Organization and Environment, Vol. 29, Issue 1, pp. 74-96. DOI: 10.1177/1086026615592930
  • Spring, M. and Araujo, L. (2017). Product biographies in servitization and the circular economy, Industrial Marketing Management, Vol. 60, pp. 126-137. http:/​/​dx.doi.org/​10.1016/​j.indmarman.2016.07.001
  • Heyes, G., Sharmina, M., Mendoza, J.M.F., Gallego-Schmid, A. and Azapagic, A. (2018). Developing and implementing circular economy business models in service-oriented technology companies, Journal of Cleaner Production, 177, 621-632. https:/​/​doi.org/​10.1016/​j.jclepro.2017.12.168
  • Tukker, A. (2004). Eight types of product-service systems: Eight ways to sustainability? Experiences from Suspronet, Business Strategy and the Environment, Vol. 13, pp. 246-260. DOI: 10.1002/bse.414
  • Vezzoli, C., Ceschin, F., Diehl, J.C. and Kohtala, C. (2015). New design challenges to widely implement Sustainable Products-Service Systems, Journal of Cleaner Production, vol. 97, pp. 1-12. http:/​/​dx.doi.org/​10.1016/​j.jclepro.2015.02.061
  • Tukker, A. (2015). Product services for a resource-efficient and circular economy – a review, Journal of Cleaner Production, Vol. 97, pp. 76-91. http:/​/​dx.doi.org/​10.1016/​j.jclepro.2013.11.049
  • Geels, F.W. (2002). Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case study, Research Policy, 1257-1274. PII: S0048-7333(02)00062-8
  • Göpel, M. (2016). What Political Economy Adds to Transformation Research, Chapter 2, The Great Mindshift, The Anthroposcene: Politik, Economics, Society, Science, pp. 13-51. DOI 10.1007/​978-3-319-43766-8_2
  • Unruh, G.C. (2000). Understanding carbon lock-in, Energy Policy, Vol. 28, pp. 817-830.
  • Unruh, G.C. (2002). Escaping carbon lock-in, Energy Policy, Vol. 30, pp. 317-325.
  • Linder, M. and Williander, M. (2017). Circular Business Model Innovation: Inherent Uncertainties, Business Strategy and the Environment, Vol. 26, pp. 182-196. DOI: 10.1002/bse.1906
  • Grönross, C. (2011). Value co-creation in service logic: A critical analysis, Marketing Theory, 11, (3), 279-301. DOI: 10.1177/1470593111408177
  • Roome, N. (2011). Looking Back, Thinking Forward: Distinguishing Between Weak and Strong Sustainability, The Oxford Handbook of Business and the Natural Environment. DOI: 10.1093/​oxfordhb/​9780199584451.003.0034
  • IDEO circular design guide - https:/​/​www.circulardesignguide.com/​
  • O´Brien, K. and Sygna, L. (2013). Responding to Climate Change: The Three Spheres of Transformation, Proceedings of Transformation in a Changing Climate, 19-21 June 2013, Oslo Norway, pp. 16-23.
  • Gyrd-Jones, R. and Kornum, N. (2013). Managing the co-created brand: Value and cultural complementarity in online and offline multi-stakeholder ecosystems, Journal of Business Research, 66, 1484-1493. http:/​/​dx.doi.org/​10.1016/​j.jbusres.2012.02.045
  • Ritzén, S. and Sandström, G. Ö. (2017). Barriers to the Circular Economy – integration of perspectives and domains, Procedia CIRP 64, pp. 7-12. doi: 10.1016/​j.procir.2017.03.005
  • Guyader, H. and Piscielli, L. (2019). Business model diversification in the sharing economy: The case of GoMore, Journal of Cleaner Production, Vol. 215, pp. 1059-1069. https:/​/​doi.org/​10.1016/​j.jclepro.2019.01.114
Last updated on 27-01-2026