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Page 1: Collaboration Between Academicians And Practitioners In Enhancing Accounting Knowledge

Collaboration between Academicians and Practitioners in Enhancing Accounting KnowledgeNik Mohd Hasyudeen YusoffCEO and Thought Leader, Inovastra

Competitiveness Through Innovation and Strategy

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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

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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

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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

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Competitiveness Through Innovation and Strategy

YourBusiness

YourCustomers

YourCustomers

YourCustomers

YourSuppliers

YourNetworkPartners

YourCompetitors

YourCompetitors

Economy

Environment

Technology

Society

Politics

Wikinomics

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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”

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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

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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

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Competitiveness Through Innovation and Strategy

Anenterprisevertically

structured

Market 1

Market 2Market 3

Direct present

VerticalIntegration?

Direct present

Direct present

Network-Centric Competition

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Competitiveness Through Innovation and Strategy

AnEnterpriseleveraging

on network

Market 1

Market 2Market 3

Direct present

Network-Centric?

NetworkPartner

NetworkPartner

Service PlatformOwner

Network-Centric Competition

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Competitiveness Through Innovation and Strategy

ClientsProblems

BusinessServicesFirm 1

BusinessServicesFirm 2 Sorry, no capability

Yes, we have solutions!

Knowledgeprovider

SubjectMatterExpert

BusinessServicesFirm 3

Network-Centric Competition

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Competitiveness Through Innovation and Strategy

Applying the network-centric concepts in accounting knowledge development

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Competitiveness Through Innovation and Strategy

Applying the network-centric concepts in accounting knowledge development

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Competitiveness Through Innovation and Strategy

Applying the network-centric concepts in accounting knowledge development

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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

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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

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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

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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

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Competitiveness Through Innovation and Strategy

Applying the network-centric concepts in accounting knowledge development

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Competitiveness Through Innovation and Strategy

Applying the network-centric concepts in accounting knowledge development

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Competitiveness Through Innovation and Strategy

Applying the network-centric concepts in accounting knowledge development

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Competitiveness Through Innovation and Strategy

Applying the network-centric concepts in accounting knowledge development

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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

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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

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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

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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

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Competitiveness Through Innovation and Strategy