Collaboration between Academicians and Practitioners in Enhancing Accounting KnowledgeNik Mohd Hasyudeen YusoffCEO and Thought Leader, Inovastra
Competitiveness Through Innovation and Strategy
Competitiveness Through Innovation and Strategy
Agenda•Wikinomics•Network-Centric competition•Value creation through networks•Applying the network-centric concepts
in accounting knowledge development•Concluding thoughts
Competitiveness Through Innovation and Strategy
Wikinomics• A business:▫Need to serve customers▫Need to be ahead of
competition▫Business environment keeps on
changing▫Affected by global
developments▫ Stakeholders beyond
shareholders▫ Innovation is key▫Profit is the result of risk taking
Competitiveness Through Innovation and Strategy
Leadership
Strategy
Values
People Processes
PlatformIntellectual assets
Business partners
Physical resources
Institutional partners
Value proposition
Functionality
Feelings
Financials
Internal resources Value creation
External network
Protocol
Customers
Inovastra’s view of value creation
Wikinomics
Competitiveness Through Innovation and Strategy
YourBusiness
YourCustomers
YourCustomers
YourCustomers
YourSuppliers
YourNetworkPartners
YourCompetitors
YourCompetitors
Economy
Environment
Technology
Society
Politics
Wikinomics
Competitiveness Through Innovation and Strategy
Wikinomics• “Thanks to Web 2.0, companies are
beginning to conceive, design, develop, and distribute products and services in a profoundly new ways. The old notion that you have to attract, develop and retain the best and the brightest inside your corporate boundaries is becoming null. With the cost of collaboration falling precipitously, companies can increasingly sources ideas, innovations, and uniquely qualified minds from a vast global pool of talents”
Competitiveness Through Innovation and Strategy
Wikinomics•Principles of Wikinomics▫Being open – Need to be
competitive requires access to global talent pool, more open standards being used, more transparency
▫Peering – succeeds because it leverages self-organization , a style of production that is based on sharing, participation and recognition
Competitiveness Through Innovation and Strategy
Wikinomics• Principles of Wikinomics▫Sharing– Smart firms are treating
intellectual property (IP) like a mutual fund — they manage a balanced portfolio of IP assets, some protected and some shared
▫Acting Globally - The new globalisation is both causing and caused by changes in collaboration and the way firms orchestrate capability to pioneer and produce things. Winning companies will need to know the world, including its markets, technologies and people
Competitiveness Through Innovation and Strategy
Anenterprisevertically
structured
Market 1
Market 2Market 3
Direct present
VerticalIntegration?
Direct present
Direct present
Network-Centric Competition
Competitiveness Through Innovation and Strategy
AnEnterpriseleveraging
on network
Market 1
Market 2Market 3
Direct present
Network-Centric?
NetworkPartner
NetworkPartner
Service PlatformOwner
Network-Centric Competition
Competitiveness Through Innovation and Strategy
ClientsProblems
BusinessServicesFirm 1
BusinessServicesFirm 2 Sorry, no capability
Yes, we have solutions!
Knowledgeprovider
SubjectMatterExpert
BusinessServicesFirm 3
Network-Centric Competition
Competitiveness Through Innovation and Strategy
BusinessServices
Firm
BusinessPartner
BusinessPartner
ExistingClients
NewClients
NewClients
Existing services based on existing capabilities
New services based on partner’s capabilities
New services based on newly acquired capabilities
New services to new clients based on partner’scapabilities
New services to new clients based on partner’scapabilities and new distribution channels
Network-Centric Competition
Competitiveness Through Innovation and Strategy
Network-Centric Competition
Principles of Network-Centric Competition 1
Description Examples
Shared goals and objectives
Common goals bring network members together
Customers community
Shared “world view” Common assumptions, mental models
Open Source Community
“Social” knowledge creation
Interaction among members as basis of value creation
Inventor networks
Architecture of participation
Systems, mechanisms, processes to participate
Open source community
Network-Centric Competition Principles
1 – Adapted from the Principles of Network-Centric Innovation, The Global Brain, Nambisan and Sawhney
Competitiveness Through Innovation and Strategy
Network-Centric Competition Management FeaturesNetwork-Centric Elements
Features
Network leadership Orchestrating the behaviour of network members and network activities in creating value to clients
Network governance A clear articulation of the roles and responsibilities of the members in the network
Supporting infrastructure
Knowledge management, project management, technology platforms, business tools etc which are core to the USP of the network
Intellectual property management and value appropriation protocols
Cover how intellectual property is developed, owned and shared as well as the value created through the use of the IPs are shared
Network-Centric Competition
Competitiveness Through Innovation and Strategy
• Could an enterprise build strategic relationships with like-minded enterprises to serve common customers or markets?
• What would bind these enterprises together?
• Who should lead the network? What are the reasons for this right of leadership?
• How would the members of the network benefit from the network?
• How should an enterprise structure itself internally to be effective in the network?
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
• Leadership – willingness to share strategic issues and rely on network partners based on agreed parameters
• Team – ability to understand the strategic relationship and execute plans holistically, need to do away with “Not Invented Here” and “We Know Everything” syndromes
• Internal processes and procedures need to be change to accommodate the network-centric strategy – training and re-training needed
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
• The Big-4 accounting firms are competing on Network-to-Network basis▫Global leadership but innovative structure to accommodate
various domestic regulation▫Offers diversified range or services and some do not identify
themselves as accounting practices but just by their brands▫Experts need not necessarily reside in all firms but could be
brought into the picture from various offices and jurisdictions
▫Share knowledge-base, intellectual assets, business platforms but RISKS are confined to respective jurisdictions
▫Sharing P&L on regional basis
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
• Boeing 787 Dreamliner project:▫Boeing (network leader) assembled global partners it
trust to create the plane, from concept to production▫Designs and development not only outsourced to
partners, they made financial investment as well▫Part of the strategy to shift Boeing from being a
manufacturer to a designer and assembler of airplanes▫ Facilitated by a sophisticated virtual Global
Collaboration Environment system▫Trust and shared understanding developed across all
members of the network
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
• Salesforce.Com – Leader in software as a service
• Salesforce.Com offers CRM system and provides the platform for external developers to build applications on
• The network leader is Salesforce who own the technology and make decisions on the platform
• Partners develop applications that compliment the core CRM and manage their on IPs
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
• Li & Fung – world largest sourcing company which does not own a single factory
• It assumes itself as a “network orchestrator”, working with more than 8,300 suppliers serve by more than 70 outsourcing offices in more than 40 countries and territories
• Li & Fung develops and manages networks and designs and manages specific supply chain to meet specific customer needs
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
•The principles applied by Li & Fung in orchestrating network are:▫Design and manage networks – competing
through networks, the best supply chain will win▫Control through empowerment – empowerment,
trust, training and certification to bind the network together, entrepreneurship is encouraged
▫Create value through integration – bridging borders and leveraging on company’s value and intellectual property across the network
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
• InnoCentive – an open innovation community which provide solutions to tough business, science and product development
• Launched by pharmaceutical giant Eli Lilly, a match making system links experts to unsolved R&D problems, allowing link to global experts without the need to hire them
•This approach recognises the fact that not all the smart people in the world works for a particular organisation
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
• International Enterprise Singapore iPartners programme
• Encourages Singapore companies to band together in pursuing international projects
• This would allow the consortia to:▫Combine resources▫Provide holistic solutions to customers▫Achieve economic of scale
• Lead by anchor companies which act as network leader and orchestrate the activities of the network members
• Aims to secure more than $3 billion in the next 5 years
Value Creation Through Networks
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
Basic education of accountants
Professional training
Competency assessment
Continuing professionaleducation
Innovation and growth
Academicians
Reallife issueswith realimplications
Mixture of reallife and academic issues
More academic issuesto build up competency
Feedback to enhancethe teaching of newaccountants
Competitiveness Through Innovation and Strategy
Leadership
Strategy
Values
People Processes
PlatformIntellectual assets
Business partners
Physical resources
Institutional partners
Value proposition
Functionality
Feelings
Financials
Internal resources Value creation
External network
Protocol
Customers
Applying the network-centric concepts in accounting knowledge development
Opportunities for academicians to add value to each components of the value creation process ishuge but this need to be viewedbeyond a specific knowledge concentration
Competitiveness Through Innovation and Strategy
FinancialAnd BusinessReporting SupplyChain
Source:XBRLInternational
Even financialReporting couldprovide ampleopportunitiesfor value add
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Possible InitiativesRound table discussion on specific issues
Flag out issues for consideration
List of capabilities and areas of interest, should be multi-disciplinary
Reference point for the industry to consider likely partners
Research exchange Clearing house to match between research needs and capabilities at universities
Virtual community building Use Web 2.0 tool such as Facebook, LinkedIn
Review of performance measures at universities
Align the needs to value add to industry with how success is defined
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
Competitiveness Through Innovation and Strategy
Applying the network-centric concepts in accounting knowledge development
• Corporations should leverage on the skill sets and knowledge based of academicians in exploring opportunities for innovation
• Academicians must appreciate that they need to add value to the corporations when provided research and consulting opportunities
• The skill sets required need not necessarily be from one source or limited to Malaysia only
• Both sides should understand the motivation and constraints of each side to ensure a successful collaboration
• Shared objectives and goals are critical, this may require long term relationship development
• Need be, conventional wisdom need to be challenged in order for this country to progress
Competitiveness Through Innovation and Strategy
Moving Forward Thoughts•The sustainability of a
business is dependent on how far it could innovate to create value to the market it serves and be relevant to the surrounding community
•Companies are now more open towards collaborative approach instead of relying on internal resources per se
Competitiveness Through Innovation and Strategy
Moving Forward Thoughts•Network-centric value
creation and competition would be more apparent in the future
•This creates opportunities for academicians to be involved in many ways
•However, understanding the needs of the practitioners would be key to a successful partnership
Competitiveness Through Innovation and Strategy
Moving Forward Thoughts•Corporations on the other hand
need to understand then constraint and motivations of academicians of formulating the collaboration
•Having a clear outcomes in mind which benefits both the academicians and corporations would be critical in a successful partnership
Competitiveness Through Innovation and Strategy
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