Business leaders gain unique insights from Innovation Series

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IF MORE business leaders had heard the salient points of speakers at Innovation Series events in 2013, much of the debate raging across Australia right now would be taking a more constructive path.

But those who did attend Innovation Series events at least gained perspectives that can be applied to their own businesses and spheres of influence to help navigate extremely challenging times.

At a July Innovation Series event in Melbourne, Digital Business insights CEO John Sheridan explained the disruptive nature of the digital revolution for Australian business and demonstrated its dramatic impact already on the health services industries. Mr Sheridan’s localised insights, drawn from a digital business and economy project he is conducting with Victorian councils and Regional Development Australia, gave a series of signposts for business leaders to adapt to their own situations and industries.

Taking a helicopter view of the digital revolution for Australia,  head of CSIRO’s Digital Productivity Services Flagship, Ian Oppermann pointed out at the same event how better broadband for Australia through the NBN could be a catalyst for new digital business mobility and systems innovation. He gave examples of how digital innovation would have an immediate positive impact on the healthcare sector, leaving Innovation Series attendees with ideas on how to adapt such innovation to their own sectors – or run the risk of being left behind. 

Another such example came from another Innovation Series Melbourne event which tackled Australia’s challenged manufacturing sector – as it turned out, just prior to Ford’s announcement that it would cease manufacturing in this country, and about six months ahead of Holden’s – where three manufacturing industry leaders outlined the real risk to Australia from losing hi-tech manufacturing: a severe blow to entire sector’s ability to innovate.

Manufacturing experts Albert Goller, Goran Roos and Jim Walker all gave examples that demonstrated Australia must develop a much stronger a future in manufacturing if it wants to maintain its lifestyle advantages and improve communities.

Jim Walker, the CEO of the Co-operative Research Centre for Advanced Automotive Technology (AutoCRC), lamented the drift to Australian companies designing here, but moving to manufacture offshore – and both Ford and Holden now fall into that category.

“The big problem is that when you manufacture in another country, the next innovation comes from that country,” Mr Walker said. “The real innovation comes out of manufacturing. Long term R&D follows manufacturing. That does not seem to be widely understood in Australia.”

Mr Walker is well qualified to discuss the challenges facing manufacturers ‘at the coalface’ having for five years headed up QMI Solutions Limited, a company dedicated to improving the Australian manufacturing industry. Before joining QMI Solutions, he worked at Boeing Australia for nine years as general manager of Boeing Network Enabled Systems (NES),the business unit responsible for developing many of the nation's key defence communications and air defence assets.

Manufacturing Industry Innovation Precinct chairman, Albert Goller – a former chairman and managing director of Siemens Ltd in Australia and New Zealand – pointed out that the real opportunities in manufacturing in Australia resided in the small and medium sector and especially family companies which were in business for the long term. In that respect, he said, Australia’s opportunities could be seen as similar to Germany’s Mittlestand sector, which underpins the German economy – a point reaffirmed at the Innovation Series by Mr Walker.

Like Mr Goller, honorary professor of the Warwick Business School (UK), Goran Roos demonstrated how economies with even higher cost bases than Australia, such as Sweden and Switzerland, relied on manufacturing for their high standards of living and as the leading contributor to economic wealth.

Prof. Roos pointed out that Sweden mined its own iron ore – at much higher cost than Australia – created high grade metals that were difficult to obtain elsewhere, created products such as hi-tech tooling systems that were then employed in Sweden to make high quality industrial machinery which, in turn, was used to develop robotics used in car, truck and aircraft manufacturing.

Mr Walker also pointed out a fact rarely acknowledged: “Regional Australia is a hotbed of innovation,” he said.

 

INNOVATION MIND SET

The insights offered through the Innovation Series often spark collaborations through people who meet at the events – and no wonder with the innovative mind-set that permeates the series.

One who has been on both sides of the fence is Digital Business insights CEO, John Sheridan.

“The Innovation Series luncheons offer organisations a unique opportunity to stay abreast of innovations, new ideas and breakthroughs in industry, business, science and academia,” Mr Sheridan said. “Over the last few years, I have gained many valuable insights into subjects that are rarely covered in the mainstream media, yet are of critical importance to Australian CEOs and management teams. Vision, inspiration and networking on the menu at every luncheon.”

The series remains one of the few opportunities in Australian business to exploit the serendipity of a room full of like-minded innovative professionals and high level government staffers.

“There is nothing that is going to stand between me and attending the Innovation Series,” said Enterprise Connect North Brisbane Moreton Bay Innovative Region facilitator, Tony Krimmer. “With its incredible array of fascinating presenters – all at the cutting edge of achievement – this program of events provides an indispensable insight into a diversity of business game-changers.

“Actually, ‘attending’ is not the right word – the Innovation Series provides connections and conversations, with easy access to the speakers – they’re not protected from us. And, it’s a chance to mix and meet with national and international business executives, researcher ‘boffins of repute’ and to button-hole government decision makers.

“Being at the Innovation Series is being in the right place at the right time,” Mr Krimmer said.

Another who attends at every opportunity is BioPharmaceuticals Australia business development manager, Brett Whitecross, who remarked, “I thoroughly enjoy the Innovation Series luncheons – excellent opportunities to network and interact with representatives from a range of high-tech disciplines. I never miss them.”

A business leader and angel investor who has been involved with the series for many years – and compered many events in recent years – is Innovative Business Concepts CEO, John Kapeleris.

“The Innovation Series is an excellent forum to promote and showcase new ideas and business opportunities at the forefront of Australian innovation,” Mr Kapeleris said.

“I have found the Innovation Series a key driver encouraging collaborative networking between industry and academia.

“As a result I have established numerous collaborative business opportunities that have the potential to benefit the Australian economy through the creation of partnerships, new ventures and job growth.”

The Innovation Series has long been credited by business leaders as a catalyst for ‘bigger picture’ thinking.

“The Innovation Series has a remarkable ability to combine thought-provoking topics with speakers that provide practical ideas to take back and apply in my business,” BigPic and Your Commercial Foundations principal, Fiona MacNee said.

“ As a micro-business, the Innovation Series events offer an invaluable tool to ensure I engage with the macro issues that affect us all together, with the opportunity to learn how innovative businesses of five to 5000 employees are tackling these challenges.”

 

THINKING GLOBAL CHALLENGES

A good example of how the Innovation Series has helped lift the view of many business leaders was the Sydney session which focused on innovation to navigate global challenges.

Three global leaders in innovation – Vlada Majanovic from Cisco Systems in Silicon Valley, Australian CSIRO principal scientist Dr Stefan Hajkowicz and Deloitte Australia chief strategy officer, Gerhard Vorster – urged Australian business leaders to re-think their approaches to innovation in response to existing global conditions – and, perhaps more importantly, those anticipated to come.

All three, using a wide variety of examples, including those of the most successful  technology innovation area of all, Silicon Valley – urged Australian organisations to look long and hard at what they are doing, how they are doing it and – vitally – who is driving their organisations forward, in order to bring through game-changing innovation.

From Mr Vorster’s experience, opportunity usually emerges from “going back to basics” and examining internal and external perceptions of their businesses. A key skill of the business leader was in spotting impending profound change – such as the hardly-anticipated rise in ICT capability in India, which has had a dramatic global effect.

“It happened all right,” he said. “And once something like this happens, you don’t go back to how it was before.”

Mr Vorster said in too many ways Australian organisations were looking back longingly “at how it used to be” rather than embracing the opportunities to innovate and change. Australia had to up-shift its mind set, he said, away from the attitudes that hold it back, summing things up with an ironic phrase: “That may be okay in practice, but it will never work in theory.”

In his experience, successful innovators looked to the restless ones in their organisations who were tired of the old ways and were continually looking for better methods.

“These are often the troublemakers, dissatisfied with the status quo, who are usually the most innovative,” Mr Vorster warned.

He said Australia was facing a crisis in this regard, as recent international surveys showed that about 74 percent of companies, internationally, regarded themselves as being innovative. Yet the figure was just 55 percent in Australia.

The future was with those innovators “who do it, not prove it,” he said.

Vlada Majanovic said many Australian organisations and entrepreneurs had decent reputations for being innovative, but there was much it could learn from Silicon Valley, both in what to adopt and, perhaps, some elements to avoid.

Mr Majanovic, who is senior director for the Strategic Transformations division of Cisco Services Sales, said there was no doubt Silicon Valley was “the most successful innovation area” in the world “and the one that has made the most money”.

“Basically, in this context, there is Silicon Valley – and everyone else.”

He said the ways to fund innovative technology start-ups ranged from government grants, to business-enabled systems such as the IOS developer program and on to education initiatives including technology development centres, boot camps and start-up labs.

“It is all part of the ecosystem,” Mr Majanovic said, “but then there is Silicon Valley.”

He said Silicon Valley was so successful – and so powerful – that few Australian tech. start-ups could avoid it and none could ignore it.

It was a successful but imperfect system that revolved around “Build. Fund. Execute. Exit. Repeat …” Mr Majanovic said.

“All follow this path,” he said, “be quick, be quick …swim or sink fast. That is the thing. It is unique – people focus on IT – and there is very much an exit focus. People that are trusted are onboard fast.

“It is extremely local. In many cases companies will go from start-up to IPO in two years.”

He said it was ironic that Silicon Valley operates in a way that is opposite to the high technologies it promotes. He described the region as “a people network in 30sqkm”.

But Mr Majanovic criticised Silicon Valley for its short-term mentality.

He described one of the ongoing problems as “money does not understand technology. There is lots of hype,” he said, but a lack of focus on long-term value.

“I call it Wall St at its worst,” Mr Majanovic said.

Mr Majanovic acknowledged the views of Deloittes’ Mr Vorster in this space, saying, “If you cannot execute, you have nothing.”

Mr Majanovic said innovators and technology start-ups should remember that “the world is flat in the software business”.

 

INNOVATE OR PERISH?

Taking a higher level view was vital for business leaders and innovators, according to CSIRO scientist Dr Stefan Hajkowicz who highlighted the ‘mega trends’ Australian organisations must navigate.

He gave the issue of innovation a sense of great urgency, calling it Australia’s “innovation imperative”.

“Australia must make the jump … or it is stuffed,” he said. Competitors are already occupying what has been Australia’s economic and industrial space.

CSIRO research has identified key Mega Trends and ‘Mega Shocks’ that will directly impact Australian business in its report Our Future World: An analysis of global trends, shocks and scenarios.

Dr Hajkowicz said the biggest single shift going on right now is the GDP shift from the developed to the developing world.

This was highlighted by the fact that 1.02 billion Asians will soon be classified as ‘middle class’ mainly in China and South East Asia.

The traditional leading East Asian economy, Japan, will have more than 40 percent of its population aged over 70 by 2020, and other developed economies are not far behind.

The US and Australian economies are similarly being weighed down by health costs for ageing populations.

“Retirement may cease to exist in the future,” Dr Hajkowicz posed.

But in this, like other Mega Trends, Dr Hajkowicz sees opportunity for innovative Australian businesses, such as medical technology developers.

Plus, he said, healthier ageing populations have a greater propensity for travel and that was an opportunity for Australia.

Australia’s tourism sector, which has been hit by high dollar costs, could also be on the verge of a boom from new markets being created by the young and active Asian middle class. In fact, CSIRO has identified a market called Flashpackers that Australia may exploit – people who are active, cashed up and ready to travel to places on the recommendations of friends through social media, such as Facebook.

The CSIRO-identified Mega Trends also bode well for Australia’s agribusiness sector, with developing countries focused on providing food security. Australia’s potential in agribusiness is only limited by water availability, Dr Hajkowicz said.

Meanwhile Australia’s minerals sector may be tapering off, but its natural gas industries are only just starting to produce and may provide an energy advantage for Australia. Mining may go to cheaper source countries, but Australia’s innovative mining services may yet benefit, if companies can make the shift internationally.

“Growth for Australia may instead come from selling the know-how of mining.” Dr Hajkowicz said.

While Australian organisations may need to follow new business overseas, Australia will surely benefit from the fact that the weight of economic development is coming our way.

Dr Hajkowicz said in 1980 the world’s economic centre of gravity was in the mid Atlantic – but by 2030 that epicentre will be somewhere between India and China.

“Again, the big thing to watch is the GDP shift to the developing world,” he said.

That means business opportunity is inexorably coming Australia’s way. All it takes now is business flexibility and innovation.

There’s that word again.

The next Innovation Series even is in Brisbane on April 1, featuring Queensland Chief Scientist Geoff Garrett, CSIRO Futures leader Stefan Hajkowicz and SwarmFarm Robotics director Andrew Bate highlighting the latest innovations in the food and agriculture industries addressing the title, Agriculture, Robotics and Collaboration a recipe for global success?

Dr Garrett will outline the resources available to support the Australian agribusiness industry as one of the world’s most efficient producers; Dr Hajkowicz will present on the future of food; while Mr Bate looks into the many benefits of utilising ‘agbots’ to improve productivity, efficiencies and increase yields.

www.innovationseries.com.au

 

ends

POSTED MARCH 2014.