A few ideas to share with the University of Ballarat Technology Park (UBTP) and Ballarat IT Specialist
(BITS) Breakfast of ICT professionals and other stakeholders from Ballarat and the broader region.
Collaboration is important for innovation and ultimately the creation of wealth
Russell Yardley21 July 20091 © 2009 Algonquin Investments Pty Ltd
Agenda
How do small businesses create wealth? New forms of organisation are emerging
because of the Web Collaborating to link people and
knowledge will impact all businesses Collaboration drives value creation and
ultimately wealth
21 July 20092 © 2009 Algonquin Investments Pty Ltd
Creating Wealth
21 July 2009© 2009 Algonquin Investments Pty Ltd3
Wealth comes from value created by our commercial activitieso Depends on confidence in the economyo Reliability of receipt of the benefits earned
(role of corruption/antisocial behaviour)
o Fairness in the results (pay scales – pay for performance???)
o How we see ourselves and others (stories/anecdotes)
How do small businesses create wealth?o They provide better value through specialisation
Continuous improvement/innovation Importance of productivity Demanding sophisticated suppliers and customers (Michael Porter)
o They build trust with suppliers/customers which lowers costs and creates new opportunities
o They know when to compete and when to collaborateo A business’ reputation for trust and specialisation grows their
businessAnimal Spirits by G A Akerlof & R J Shiller
21 July 2009© 2009 Algonquin Investments Pty Ltd4
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Co-ordination Co-operation CollaborationCo-ordinationo Driven by directiveo Focus on short term goalso Teamwork helps but not
essentialo Value created by individual
actiono Little additional valueo Trust not essential to
success
Co-operationo Driven by an immediate needo Can succeed even if
commitmentuneven
o Value is incremental & uneven
o Only one party may benefito Lower level of trust than for
collaboration
Collaborationo Driven by mutual self interesto Requires high level of
commitment on both sideso Creates new value o Value can be shared by both
partieso Often requires specialisationo Requires high levels of trust
Increasing levels of trust
21 July 2009© 2009 Algonquin Investments Pty Ltd6
Collaboration: What is it?
• It’s about creating capacity and capability in small groups of SMEs by combining their specialisations to achieve exceptional results
• It’s about each share of the rewards from these results being more valuable than those from solo endeavours
• The complex collaborative enterprise works because each SME is honed to do what it does best and is driven to meet its obligations to the group
• It is in each member’s interest to ensure that their fellow members are capable and do perform at the highest possible level
• It becomes self evident that all members should share resources and opportunities to maximise the enterprises rewards
Creating Wealth - Specialisation
21 July 20097 © 2009 Algonquin Investments Pty Ltd
Acumentum Instructional design (EBI - 1994) Interactive design (vic.gov -1997) Web application development
(ScenarioBuilder 2003) Lessons “Core” and “Enabling” skills The world catches up very quickly Internal trust is critical as you grow Executive leadership must be able to judge quality of all strategically
important specialisations of the business Value actually delivered must be valued by customers
New Forms of Organisations Emerging
21 July 20098 © 2009 Algonquin Investments Pty Ltd
New forms of organisation are emerging because of the Web Web 0.0 linking the technologists Web 1.0 linking information pages Web 2.0 linking people Web 3.0 linking knowledge
Film Production Company No Longer Major Studios Talent and rewards Skills, technology for pre & post production Who owns what?
Spielberg (Close Encounters) & George Lucas (Star Wars)
Networks/Alliances/Consortia What works best What drives most innovation What creates the most value for most stakeholders Who controls the essential ingredients
Knowledge in Context of People
21 July 20099 © 2009 Algonquin Investments Pty Ltd
Linking people and knowledge will impact all businesses The freelancer The Start-up Small business Business networks Large business
Reputation Management A record of what you have done and repeatedly
done with others Not what others say about you but its what
others have repeatedly done with you
Call a Friend (that you may not have met yet)
21 July 200910 © 2009 Algonquin Investments Pty Ltd
Someone out there knows what you need to know
Collaboration drivesOpportunities Identifies best skills and knowledgeMaximises your return on investment
Back at the Office Do you truly understand the real value you
provide your customers and that value which your suppliers provide you?
What is essential to that value and what could others do better than you to make you even better?
Can you create a better form of organisation to increase the value you provide your customers?
21 July 200911 © 2009 Algonquin Investments Pty Ltd
Let’s Keep this Conversation Going
Website: www.RussellYardley.comTwitter: rmyardley
LinkedIN: www.linkedin.com/in/russellyardley
Email: [email protected]
21 July 200912 © 2009 Algonquin Investments Pty Ltd