<ul><li>Despite the diversity of size, experience and industry sector, a common feature of born global enterprises is that the whole world is their potential market from the company's inception, bucking the more traditional approach to growth by pursuing success in domestic markets before entering offshore markets.</li><li>Perhaps the approach of these firms is best encapsulated by the advice given by several interviewees to prospective born global firms: ‘Know your industry; know who your competitors are in the world market; work out where you can add value and carve a niche; and do it!'</li><li>As international competition demands greater collaboration and a more rapid absorption of new knowledge, governments can help resident firms to connect to global webs of enterprise.</li></ul><p>Case study companies included different sized firms from four different states across a diverse range of industries:</p><ul><li><div align="left">Aconex Pty Ltd (VIC) – provider of an online document management and web collaboration system for construction, engineering and facilities management;</div></li><li><div align="left">Agenix Ltd (QLD) – a publicly listed company in the market for cardiovascular diagnostic products;</div></li><li><div align="left">BEELINE Technologies Inc (QLD) – pioneer of Global Positioning Systems (GPS) technology for hands-free Steering Assist™ in agricultural vehicles;</div></li><li><div align="left">Biota Holdings Limited (VIC) – a publicly listed company involved in the discovery and development of antiviral drugs;</div></li><li><div align="left">Cochlear Ltd (NSW) – a publicly listed company that designs and markets multi-channel cochlear implants for the hearing impaired;</div></li><li><div align="left">CSL Ltd (VIC) – a publicly listed company that develops, manufactures and markets vaccines and medications of biological origin;</div></li><li><div align="left">DSpace (SA) – pioneer of technology for commercial and defence satellite communications;</div></li><li><div align="left">Ellex Medical Lasers Ltd (SA) – a publicly listed company that designs and manufactures laser systems for ophthalmologists to fight blindness;</div></li><li><div align="left">Global Trust Centre (NSW) – an organisation that identifies needs and solutions to overcome security and trust problems in the digital world;</div></li><li><div align="left">Indigo Technologies Ltd (QLD) – pioneer of technology that reduces potentially toxic, fine particles emitted from coal fired furnaces in power stations;</div></li><li><div align="left">Infomedia Pty Ltd (NSW) – a publicly listed company that supplies electronic parts catalogues, primarily for the automotive industry;</div></li><li><div align="left">Micronix Pty Ltd (SA) – a publicly listed company that commercialises biomedical technology which facilitates accurate, inexpensive and real-time placement of a variety of catheters for a range of clinical applications;</div></li><li><div align="left">MYOB Ltd (VIC) – a publicly listed company that designs and supplies business management software, services and support for businesses and accounting practices;</div></li><li><div align="left">NOJA Power Switchgear Pty Ltd (QLD) – designer and supplier of low and medium voltage switchgear products;</div></li><li><div align="left">Rising Sun Pictures (SA) – provider of visual effects services for filmmakers, chiefly Hollywood studios;</div></li><li><div align="left">Technico Pty Ltd (NSW) – an agri-biotech company that provides supply-chain solutions by using proprietary technology to deliver early generation seed-potato products;</div></li><li><div align="left"><strong>tna </strong>Australia Pty Ltd (NSW) – provider of integrated turnkey solutions for food packaging and processing products; and</div></li><li><div align="left">The Wiggles (NSW) – provider of children’s entertainment (music, merchandise and theme parks) that encourages the participation of parents and guardians.</div></li></ul><p align="left"> </p>
2007-10-16T12:34:32+08:00
1
34
false
true
false
Born To Be Global: A closer look at the international venturing of Australian born global firms
0
1
2007-12-16T12:00:00+09:00
<p>This report focused on charting the experiences of 18 'born global' firms which ventured overseas shortly after their birth. In examining their successes and setbacks, the researchers were able to identify some key factors relevant to identifying and satisfying new global opportunities more adeptly, including agility, persistency and the ability to manage a range of business functions and risks simultaneously.</p><p align="left">In analysing the business case studies, certain patterns were discerned about the character and further development of born global firms. While these insights do not constitute a template for business success, they do provide an important set of lessons for enterprises that are export ready or seeking other ways to extend their international reach.</p>
<p><strong> CHAPTER 1:</strong> <strong>AIM, METHOD AND STRUCTURE </strong> Rationale for the Project The Contemporary Business Environment Trends Perpetuating the Born Global Enterprise Scope and Method Report Structure </p><p><strong>CHAPTER 2: LITERATURE REVIEW AND BACKGROUND ISSUES</strong> The Born Global Literature What Do We Know About Born Globals? The Born Global Firm and Extended International Presence </p><p><strong>CHAPTER 3:</strong> <strong>KEY INSIGHTS INTO DEEPENING AUSTRALIAN BORN GLOBAL FIRM ACTIVITY </strong>Introduction 1. Business Strategies that are not Cavalier but Confident and Cautious 2. Born Global Firms are Agile Learning Organisations 3. Collaborating and Connecting to Global Webs of Enterprise 4. Building New Markets by Serving Unmet Needs or Specialist Niches 5. Opportunities in Traditional Markets for Untraditional Enterprises 6. Geographic Distance can be an Advantage 7. Business Strategies that take Advantage of Globalisation </p><p><strong>CHAPTER 4: NATIONAL ECONOMIC BENEFITS OF BORN GLOBAL ACTIVITIES</strong> Introduction Analysing National Economic Benefits: Some Relevant Theoretical Issues Contributions to Employment and Public Revenue Participating in Global Webs and Facilitating Economically Relevant Knowledge Sustaining Local Clusters of High Value-Adding Activities Creating New Global Industries Within the Australian Economy Building up the Skills and Knowledge of Australian Residents Enhancing the Reputation of The Australian Economy and Australian Residents Policy Implications Conclusion </p><p><strong>CHAPTER 5: CONCLUSIONS</strong> Aconex Pty Ltd Agenix Ltd BEELINE Biota Holdings Limited Cochlear Ltd CSL Ltd DSpace Pty ltd Ellex Medical Lasers Ltd Global Trust Centre Indigo Technologies Ltd Infomedia Pty LtdMicronix Pty Ltd MYOB Ltd NOJA Power Switchgear Pty Ltd Rising Sun Pictures Technico Pty Ltd TNA Pty Ltd The Wiggles</p>
2010-02-02T06:36:24+08:00
<p>Speaking at a dinner to celebrate the first decade of the Australian Business Foundation, Professor Michael Enright gave an intriguing presentation which traversed globalisation, the real 'knowledge economy', the rise of China and India, and the unique ability of Australia to be 'Western' in the East. He certainly provided food for thought to a genuinely diverse audience of scholars, business leaders and government officials.</p><p>Reflecting on how an economy such as Australia might make its way in future global markets, Professor Enright observed that: 'Competitiveness for firms and locations will be based on individual activities or subactivities rather than complete industries.' This will provide openings, even for those located remotely in Australia, to partner with the best of breed from around the world, if firms have the skills to seek out those partners in the throng of the world market place.</p><p>Professor Enright also ran through some paradigm shifts that he sees unfolding around business in a global frame, not the least of which is the move away from affluent markets and towards accessible markets, and from selling to the world to learning from the world - the latter point resonating strongly with remarks from the Foundation's Chief Executive Narelle Kennedy about the importance of innovating by solving problems.</p><p>In wrapping up his presentation, and touching on globalisation itself, Professor Enright's crisp rhetorical insight was:'Is globalisation good or evil? I can't say, actually, but I would say get used to it!'</p>
2007-11-15T10:16:13+09:00
1
197
false
false
Decade of Discovery Dinner
0
5
2007-11-15T00:00:00+09:00
Uniquely positioned to contrast business in the East and West, Professor Enright treated the audience to insights into the future of business in Asia, and where Australia may fit into the jigsaw puzzle.
2007-11-21T13:53:09+09:00
<p>Re-examining the three industries of wine, mining and listed property trusts developed fresh insights into the critical success factors for fostering industry development. In particular, these industries shared certain industry characteristics and were exposed to transformative events within their industry that gave rise to an 'ecosystem' that was highly self supportinve and with a structure and culture that were strongly oriented towards growth and success.</p><p>Industry characteristics that each industry share include:</p><ul><li>inherent characteristics suited to Australian conditions - including resources, skills and aptitudes;</li><li>a cyclical growth path enabling consolidation and preservation of capital in the downward phase;</li><li>appropriate size - small enough to shape but large enough to matter;</li><li>focused market opportunities - breakthroughs in the structure of the industry;</li><li>'seeding' or fostering support by visionary entrepreneurial champions.</li></ul><p>Events that transformed the industries include:</p><ul><li>release of a seminal document that addressed key problems and focused industry on solutions/courses of action;</li><li>networking supported and encouraged by professional industry associations;</li><li>formal innovation strategies encouraging small company innovation;</li><li>cooperative regulatory environment for framing industry standards and structures;</li><li>the Australian Stock Exchange facilitated development of acceptable forms of investment.</li></ul><p>The result of these developments was a growth oriented industry structure characterised by:</p><ul><li>higher levels of integration, cooperation and clustering within the industry;</li><li>prominent and active industry and professional associations;</li><li>a skilled professional base;</li><li>an innovation mindset;</li><li>access to liquid financial and investment markets.</li></ul><p>Industry leadership and governments can actively intervene in a number of cost-effective and targeted ways to transform an industry including:</p><ul><li>stimulating industry clustering and growth;</li><li>fostering industry associations;</li><li>establishing specialist, industry focused tertiary courses;</li><li>leveraging industry leadership within professional associations;</li><li>supervising self-regulation by professional and financial institutions;</li><li>developing a targeted innovation strategy. </li></ul>
2007-10-16T15:38:00+08:00
1
51
false
true
false
Success Factors in Australian Industries: Levers for Fostering & Sustaining Growth Industries
2005-11-16T00:00:00+08:00
<p>In 2005, the Australian Business Foundation and Australian Stock Exchange Limited teamed up to revisit earlier research into three critical industries - wine, mining and listed property trusts. These industries were selected because each had transformed from being modestly successful and domestically based, to being world class, globally competitive and export based. </p><p>The aim of this study, conducted by Robert Bladier and Colin Ramsay, was to develop a synthesis of the earlier learnings to formulate some necessary ingredients that must be present or steps that must be taken for successful industry development. Understanding these critical levers that can transform an industry enables investors and investment markets to properly assess the characteristics of the industry which will attract capital investment. </p>
2008-07-11T12:26:07+08:00
2007-10-17T12:13:51+08:00
1
88
false
true
false
Knowledge Economy Opportunities for Australian Firms in the Asia Pacific Region
2004-02-15T12:00:00+08:00
<p>This briefing paper was produced for the Australian Business Foundation to stimulate debate and to explore options for engagement in the Asia-Pacific region. Through a series of industry case studies, this paper demonstrates that there are untapped opportunities for Australian business in high growth knowledge intensive industries in the Asia Pacific region. Although traditional commodity industries have contributed significantly to exports, the future lies in competing on superior knowledge and skills. Within these industries there are hidden strengths that could be capitalised on, ie, adding valuable services to traditional products to provide customised solutions and adopting more sophisticated sales and marketing techniques.</p><p>With a few exceptions, SMEs are lagging behind their competitors in adopting knowledge management approaches to capture their share of the export dollar in this rapidly growing regional economy. These businesses would be better served by government policy which supports the potential for Australian businesses to tap into global production chains through better knowledge management processes and capabilities, rather than focusing on information and communications technology hardware and infrastructure. </p>
2008-07-10T19:54:44+08:00
<h4>Purpose and Method </h4><p>This study aimed to provide an evaluation of the contributions made by foreign multinationals (foreign MNCs) to the Australian economy. Foreign MNCs include firms that integrate research, production and distribution across at least two countries but are headquartered outside Australia, as well as "multi-domestic firms" where the Australian subsidiary is simply a sales/marketing outlet controlled by head office. </p><p>The study was conducted during the first half of 2001 and was based on interviews with 30 foreign MNCs and a written survey of 56 smaller suppliers who had both foreign MNC and Australian customers. The key dimensions which were selected for examination were:</p><ul><li>The value chain, comprising suppliers, customers, and research and development (R&D).</li><li>Clustering and local integration.<strong> </strong></li><li>Strategic alliances, joint ventures, mergers and acquisitions (M&As). </li><li>Knowledge networks and global knowledge management. </li><li>Decision-making and reporting within MNCs </li><li>E-commerce. </li></ul><h4>Impact of Foreign Firms </h4><p>Overall, we argue that the impacts of MNCs are positive, but there are a number of negative impacts. In summary, the negative impacts are as follows:</p><ul><li>Many sales and marketing MNCs have limited links to Australian firms and a restricted impact beyond direct employment and investment in infrastructure.</li><li>There may be limited R&D and limited links with institutions in the national innovation system.</li><li>Many MNC respondents were reducing manufacturing capacity and had restricted clustering with suppliers. </li></ul>There are some areas where the impacts are not clear. These include: <ul><li>Strategic alliances, restricted by low levels of R&D and limited manufacturing in most sectors. </li><li>The impact of e-commerce on relationships with suppliers and customers. At present MNCs' focus is on finding the right business model and on domestic experimentation with e-commerce projects.</li></ul>There are positive impacts gained from MNCs that have a significant role in product and service development at regional or global level. In summary there are: <ul><li>Benefits in employment and exports from significant RHQs, although these benefits may not persist in the longer term.</li><li>Significant and long term benefit through centres of excellence. These are integral to the global success of the foreign MNC. They require substantial investment and, once established, may be less subject to arbitrary decisions regarding their location. They may also have greater links with the national innovation system and may link Australia's research groups with global expertise. These links may in turn help the foreign subsidiary bid for further regional or global mandates.</li><li>Benefits also accrue when the foreign MNC has sufficient access to internal knowledge flows, especially if they performed R&D in Australia.</li><li>Transfer of knowledge and expertise from foreign MNCs to Australian suppliers. </li><li>Training and skill development for Australian staff of MNCs, through international transfers and formal training programs.</li><li>Testing of new products and services in Australia, providing opportunities for Australian suppliers to increase their technical capacity ahead of roll-out of these systems across the firm globally.</li></ul><p>MNCs that had a regional or global mandate were much more likely to export, work with customers, transfer technology to customers and be in control of product development than local mandate firms. Thus, they are likely to have a greater positive impact on the economy as a whole.</p><h4>Implications </h4><p>It is crucial for Australia to access new technologies and management know-how in order to be internationally competitive. A "go-it-alone" strategy is not an option if Australians are to maintain their current high standard of living. The main implications are:</p><ul><li>Australia must refocus investment attraction in order to increase the size and depth of knowledge-intensive MNC activities. Policy should favour centres of excellence. The key sectors where a focused effort may provide dividends include ICT, pharmaceuticals/ biotechnology, food, education and health.</li><li>Australia must promote a dual business culture to enhance its international competitiveness and promote itself as a site for testing new products and services;</li><li>Australia should focus on expanding the number and significance of MNC centres of excellence, rather than on attracting RHQs. The Federal and State governments should also support Australian-based CEOs wishing to expand the range of products and services of their Australian operations.</li><li>Australia should draw on MNCs for new skills and competencies and make it more attractive for expatriates to help to build Australian firms, by learning from the experience of other countries that have targeted the skills, personal networks and capital of their nationals located overseas</li><li>Australia should capitalise on MNCs as demanding customers and standard setters. Australian suppliers must aggressively seek MNCs as customers, even though the short-term costs of product and service certification may be high. These developments can be mediated through the firms themselves, through industry associations or through MNCs seeking to build supplier competencies.</li></ul>
2007-10-17T16:05:13+08:00
1
94
false
true
false
Friend or Foe? Leveraging Foreign Multinationals in the Australian Economy
2002-01-16T12:00:00+08:00
<p style="margin: 0cm 0cm 10pt" class="MsoNormal">To what degree do multinationals influence, either positively or negatively, the growth, capacity and skills of Australian firms?<span> </span>This study found that multinationals are more friend than foe but that the relationship is fragile and firms and policy makers need to be smarter about engaging with them to maximise the benefits of access to global knowledge, skills and markets.<span> </span></p><p style="margin: 0cm 0cm 10pt" class="MsoNormal">By being demanding customers, multinationals contribute to better quality products and services which are more sought after in global markets.<span> </span>If firms and policy makers can encourage multinationals to set down deeper roots in research, innovation and product development here, Australian firms can continue to capitalise on skills and knowledge transfer for their own gain, and this investment will act as a magnet for further investment to encourage more sustainable relationships with multinational firms.</p>
<h5>1 Executive Summary </h5><h5>2 Context and Methodology </h5><ul>2.1 Introduction <br />2.2 Background <br />2.3 Why Foreign MNCs Are Important to Australia <br />2.4 Methodology <br />2.5 Limitations and Strengths of Study </ul><h5>3 Approaches to Measuring Host Economy Integration </h5><ul>3.1 Introduction <br />3.2 Value chain <br />3.3 Clustering and Local Integration <br />3.4 Strategic Alliances, Joint Ventures, Mergers and Acquisitions <br />3.5 Knowledge Networks and Global Knowledge Management <br />3.6 Decision-making and Reporting Within MNCs <br />3.7 The Impact of E-commerce <br />3.8 A Model for Measuring Integration </ul><h5>4 An Overview of Foreign MNCs in Australia </h5><ul>4.1 Introduction <br />4.2 Australia Has More Foreign Investment Inflows than Outflows <br />4.3 Net Inflows Create Jobs <br />4.4 US and UK Dominate as Sources of FDI <br />4.5 Service Sectors are Increasing in Importance <br />4.6 We Know Little About Relationships in the Value Chain <br />4.7 Reasons for Clustering are Unknown <br />4.8 Australia Has a Role in Global Alliances <br />4.9 Acquisitions Appear to Be Major Entry Mode <br />4.10 Foreign MNCs May Be Excluded from Global Knowledge Networks <br />4.11 Internal Competition within MNCs Influences Local Activities <br />4.12 E-Commerce Impacts on Relationships Between MNCs and SMEs is Unknown <br />4.13 Conclusions </ul><h5>5 Impact of Foreign Firms </h5><ul>5.1 Contribution To Building Australia's Capabilities And Critical Mass <br />5.2 Contribution To Australia's Global Reach <br />5.3 Contributions To Skills and Knowledge <br />5.4 Balance of Positive and Negative Impacts <br />5.5 Conclusions </ul><h5>6 Implications</h5><blockquote><p>6.1 Role of MNCs in the global and Australian economy <br />6.2 Refocus Investment Attraction <br />6.3 Leverage Australia's Business Culture Strengths <br />6.4 Create Regional and Global Centres of Excellence <br />6.5 Draw on MNCs for New Skills and Competencies <br />6.6 Capitalise on MNCs as Demanding Customers and Standard Setters <br />6.7 Conclusions <br />7 References </p></blockquote><h5>8 Appendices </h5>
2008-07-11T12:30:15+08:00
<strong>San Francisco<br /><br /></strong>If there is to be a definitive moment when the information technology tail could be said to have stopped wagging the corporate dog, history could well judge it to be a single phone call.<br /><br />It was the day at the beginning of this year that Ford president Jac Nasser called his newly appointed counterpart at General Motors, Richard Wagoner to congratulate him on his appointment.<br /><br />In the course of the conversation, the issue of the competing electronic marketplaces being constructed by the two companies since October was raised.<br /><br />By the end of the call, the two had agreed it was in the interests of both businesses to combine their efforts. By the time they told the world of their agreement on February 25, DaimlerChrysler had agreed it, too, would join.<br /><br /><strong>Internet-based markets for industrial goods and services have come a long way in a short time.</strong><br /><br />The pioneers, businesses such as Chemdex and E-Steel, had very simple visions. Just as eBay had employed the potential of the Internet for borderless communication to transform second-hand goods sales, they saw it as a platform to bring efficiency to the trade between businesses of specialised goods, such as industrial chemicals, or of surplus raw materials, such as metal.<br /><br />The basic notion of electronic markets, or exchanges as they are also called, draws on the principles of Economics 101. They allow trading parties to approach a situation of near perfect information in an international, open market, something never before possible outside of closed networks. (see related article <em>The Frictionless Economy</em>)<br /><br />They are sites where buyers and sellers can come together to trade goods and services, where buyers perhaps bargain with sellers over the price of generic products, or offer contracts for the supply of goods, specifying the performance criteria of the products at the same time.<br /><br />The nearest analogy to this original vision is the marketplaces that once existed in the centre of every town. Producers or traders could enter the market and display their products for buyers to sample and make an offer on. Buyers could also go from merchant to merchant comparing the price each would charge for a special order, and assessing which of them was capable of fulfilling it.<br /><br />Transactions could be completed on the spot.<br /><br />The next stage of the evolution of e-markets was proliferation and specialisation. There are now about 600 and the Gartner Group has predicted there will be 4000 by 2004. The chief executive of Chemdex, now Ventro, has reportedly said he was approached by one promoter who wanted built an e-market for the global ferris wheel industry!<br /><br /><strong>It Takes More Than Just a Trading Floor to Build a Bazaar</strong><br />But there have been other important developments in the past six months. Firstly, e-markets have discovered that it takes more than just a trading floor to build a bazaar. It also requires value-added services that, for example, allow these marketplaces to make the trade in goods and services truly global.<br /><br />General Motors, for example, had built into its exchange, a joint venture with Commerce One, the ability for designers and engineers to work on CAD/CAM models of automotive parts. Thus allowing work to go on through various international times zones and between workers in GM and its suppliers.<br /><br />Secondly, the big industrial companies have realised that they don't need to dance to the tune of information technology companies. They can build these markets themselves - and own them.<br /><br />And thirdly, there is the untold story of the failure that powers the latest trend.<br /><br />The most powerful argument for the industrial giants to seize control of the developing on-line procurement industry can be summarised in three letters - ERP.<br /><br />In the late 1990s, literally billions of dollars was invested in enterprise resource planning (ERP) software packages. <br /><br />These giant software packages promised to transform the internal nervous systems of large corporations. They offered an information system so seamlessly unified that orders were automatically recorded in marketing, production, procurement and sales forecasts, for example. The promised efficiencies were so dramatic and seductive that the big three vendors of the software soared to become the hottest software stocks in the world.<br /><br />There were only two problems. Firstly, the products didn't work. Secondly, the savings didn't come.<br /><br />The first problem made fortunes for consulting firms who were called in to install the ERP programs and help companies adjust and adapt their business practices to make best use of them. By some estimates, the price of consulting services to make the software work was as much as 10 times that of the products themselves.<br /><br />The failure of the savings to follow was an even greater disaster. Last year, Whirlpool and Hersey Foods blew the whistle on the ERP dream merchants within a week of each other when they blamed disappointing financial results on their experiences installing and trying to use ERP software.<br /><br />These were not isolated examples. A survey released by the Boston Consulting Group in March found that only 52 per cent of companies that had installed enterprise software packages in the previous three years felt they had achieved their objectives and a mere 37 per cent could point to a tangible financial impact.<br /><br />As a result, the entire ERP sector has fallen on difficult times. The producers of those packages, three or four years ago among the hottest stocks in the world, are being restructured or even taken over. The consulting industry today talks of expertise in "e-business" - helping companies move their information systems into the Internet rather than proprietary systems - not ERP integration.<br /><br />Today's hottest new idea, Internet-based procurement markets, offer a dream even more powerful than the ERP vendors. E-markets have the potential to slice cost out of the purchase of non-proprietary items, things such as standard fittings or office supplies, simply by opening the market for them to all qualified bidders. In effect, it allows buyers to participate in a reverse auction, where anyone participating in the market can try to bid at the lowest price.<br /><br />But they also promise to wire together supply chains in ways that are much more powerful than that. They promise to provide the platform to integrate supply chains in ways that corporate giants have been trying to achieve. Production lines are integrated to make genuine build to order processes possible (see related articles <em>Ford Drives Motor Industry Innovation</em>).<br /><br />Beyond that, there is the vision of collaborative design between original equipment manufacturers and their suppliers, working 24 hours a day by leveraging the Internet's ability to bring the same document to desktop in any country, any time zone.<br /><br />But with the lesson of the ERP revolution fresh in their minds, corporate leaders know that the bigger the vision, the bigger the price tag. And the more razor-sharp the line between success and failure, the higher the cost of stepping onto the wrong side of it.<br /><br /><strong>The Path to Realisation</strong><br />Little wonder then, that from late last year the off-line corporate world began to seize control of the evolution of the emerging new e-market business platforms.<br />First it was Ford and General Motors individually. Ford partnered with the established database software giant Oracle and GM with e-market builder upstart CommerceOne, each with the intention of creating a purpose-built marketplace for their procurement and design and development needs.<br /><br />The deals sent an important signal that the investment markets took a little while to understand. A small group of electronic marketplace pioneers - Ariba, CommerceOne, VerticalNet and i2 among the leaders - had come from nowhere to be valued at billions of dollars in a couple of years. But their fundamental value was based on the once novel notion that the information about a product or service could be decoupled from the good or service itself and be traded separately. Their strategy was to build marketplaces and attract off-line companies to transact through the markets. For each transaction that passed through their exchange, they would take a fee.<br /><br />But Motown realised that just because the information could be separated, it didn't have to enrich someone else. <br /><br />True, to realise their full potential value, the e-markets needed to be built as discrete information companies that could be publicly listed in their own right. But the ownership of them did not have to be in the hands of information industries companies, or their specialist venture capital and investment banking backers.<br /><br />In effect, Ford and GM declared that if they owned the supplier relationships, they wanted to capture a share of the value of the information exchange being built on those relationships. They needed to engage with information technology companies to build the information exchanges, but they could do it without handing away all of the value.<br /><br />Their example set off a tidal wave of similar deals. Retailing giants Sears & Roebuck of the US and French counterpart Carrefour, announced GlobalNetXchange in February, followed within a month by a rival site, WorldWide Retail Exchange, by Kmart, Target Tesco and Safeway.<br /><br />Aerospace leaders United Technologies and Honeywell engaged i2 to build MyAircraft.com to trade parts and provide technical advice and inventory management.<br /><br /><strong>Who is Calling the Shots?</strong><br />Some CEOs have made it clear that they intend to put the information technology suppliers firmly in their places as service providers. General Electric CEO Jack Welch was recently reported as declaring defiantly that GE saw information as being the core of its business and that no technology company would be separating it from the company. "A lot of smart young kids have capitalised on corporate America's misunderstanding of the Internet. But why would I ask a dotcom to come between me and my customers?"<br /><br />These developments set apart the e-market revolution from the ERP wave. Technology companies cannot rely on the rest of the corporate world simply to be their willing customers. In some cases, the off-line economy is the competition.<br /><br />As these markets have developed it has become clear that there is one thing above all that will determine who wins and who loses - the volume of transactions that flow through them.<br /><br />That means the choice made by off-line companies as to which markets they join, holds the key to the value of these new information exchanges. Eric Upin, senior Internet research analyst with leading San Francisco high tech investment bank Robertson Stephens, says there is presently a land grab for corporate customers and transaction volume. The markets built by large off-line customers have a clear early advantage because their owners can bring their own transactions into the new market quickly, creating immediate volume.<br /><br />But many among the IT community express confidence that they are ultimately in the strongest position. Veteran Silicon Valley venture capitalist Bill Mumford calls e-markets founded by off-line companies "buyer side exchanges" and argues suppliers will be suspicious of the motives of big customers in building them. VerticalNet CEO Mark Walsh dismisses them as "EDI (electronic data interchange) in drag", designed merely to screw down the prices of suppliers.<br /><br />Ford, General Motors and DaimlerChrysler have sought to reassure suppliers that this is not the case by offering to share savings from efficiencies.<br /><br />Nevertheless, it is clear that several models of e-markets are emerging, and that it will be many years until it becomes clear what model is the winner.<br /><br />Upin argues that no one model will win. Issues such as the number of participants in an industry will determine how that industry eventually moves to on-line trading.<br /><br />"These exchanges may take years to fully build. There's so many pieces. There's credit, insurance, there's import/export," says Upin.<br /><br />"In some industries, you may actually have some of the off-line or legacy companies become the exchange. I think that's going to be rare. I think it's more the exception than the rule. I think it will work where you have very concentrated industries."<br /><br />"If you're big enough, you can be the one buyer. Most industries don't have someone that is so big they can build their own exchange".<br /><br />"Most exchanges, I think, will be new companies, third party, that build anonymous, neutral exchanges on the buyer side and on the seller side to have a real two-way exchange," Upin says.<br /><br />Of course, one of the reasons venture capitalists and high tech investment banks are more enthusiastic about the pure-play market builders is that those built by companies with existing revenue have less need of their services. Venture capital got the new market builders started and investment banks underwrote their public listing.<br /><br />But the fact that it is the volume of transactions rival exchanges attract that will determine who wins and who loses puts the off-line corporate community generally in a much stronger position to call the shots than it was at the height of the ERP era.<br /><br />"In order to succeed today, you can't just be a pure web company and say, forget about the old world, we're just going to be a web company and do all this web stuff," Upin says.<br /><br />It's just the opposite.<br /><br />No one knows exactly what critical mass is, but what everyone does know is that you need to have a lot more stuff flowing through your exchange than any of your competitors. The way you do that is you sign up large industrial players, not only to have an equity position, but to agree to put so much of their supply on the exchange and to buy so much from the exchange.<br /><br />Even those exchanges built by the start-up information industry specialists will have to enlist experienced managers from old economy industries to their management teams to help them both understand the needs of the business and sign up partners.<br /><br />"You need to have a lot of off-line industry executives who have contacts in the industries."<br /><br />Despite the fact that he thinks the markets will take years to build, Upin says the pace at which they will evolve will be breathtaking. "It's who will win the race. You have to sprint the marathon."<br /><br />Michael Levin, the president of E-Steel, saw his business move closer to achieving critical mass, and market credibility, when US Steel joined its e-market late last year.<br /><br />But attracting the commitment of that company demanded that E-Steel become much more than Levin originally imagined. "When I started this, it was buyer meets seller and goes home," he says.<br /><br />"That's no longer interesting and it's no longer a sustainable competitive advantage."<br /><br />The customers demand that markets provide a range of additional services, including international credit services, community features, supply chain management and a steel futures market.<br /><br />Levin says his business has been "global from the get go".<br /><br />"That's what the Internet is all about. The only question is how fast you market and how you target your markets."<br /><br />The speed with which the industrial world is embracing the new models of organising themselves is "breathtakingly fast", disproving those who doubted E-Steel could win the support of an Old World industry, Levin says.<br /><br />"Two or three years ago when I started talking to people about this, the general reaction was either that I'd been out in the sun too long or, maybe one day."<br /><br />"Well it happened. It's not going to happen, it happened," he says.<br /><br />Yes, the revolution is here. But this time, the arms merchants are not enjoying the easy money they have in previous times of upheaval. This time, the buyers want to make sure the plane will fly, and are wary of bankrolling another Spruce Goose.
2007-11-05T16:34:23+09:00
1
174
false
false
E-markets and the virtual bazaar
8
3
2001-01-01T00:00:00+08:00
How corporate giants are returning to consumers the power of choice.
2007-11-05T17:46:43+09:00
<h4>Key Points</h4><p>Recognising that economic development increasingly relies on innovation, the Australian Business Foundation commissioned the present study to monitor further Australia's innovation performance, building on the findings of the Foundation's inaugural report, The High Road or the Low Road: Alternatives for Australia's Future?, published in 1997. </p><p>The current report provides a brief overview of key indicators of innovation, with particular emphasis on data that have emerged since the original study. A broad range of indicators is used in order to compensate for the limitations of individual indicators, to emphasise non-R&D measures of innovation and to examine performance in different aspects of the innovation process.<br />The indicators reviewed are: </p><ul><li>innovation propensities and expenditure; </li><li>R&D expenditure and employment; </li><li>training and skills; </li><li>venture capital; </li><li>machinery and equipment investment; </li><li>industry structure; and </li><li>trade patterns. </li></ul><p>Innovation depends on a series of different investments and activities undertaken by businesses and occurs within a framework of institutions and organisations which lie partly in the private and partly in the public sector. These include knowledge-generating and diffusion organisations and regulatory frameworks which together form what has become known as a country's National System of Innovation.</p><p>This report focuses only on innovation investments made within the private sector. The spotlight is on Australian businesses, although this in part relies on a public policy environment conducive to private sector innovation.</p><p>There are four key areas where Australia has performed relatively well over recent years:</p><ul><li>Knowledge-Based Service Industries </li><li>Machinery and Equipment Investment </li><li>Venture Capital Investment </li><li>High Skilled Jobs</li></ul><p>These trends, if continued, will help generate an industry structure better equipped to capture value from Australia's knowledge-base. In respect of these indicators, Australia seems to be developing a more sustainable development path – one more likely to pay higher wages, in return for higher levels of innovation and productivity. </p><h4>This report finds that Australia's innovation performance over the 1990s has been mixed. </h4><p>The report uncovered five particularly concerning negative trends in the following areas:</p><ul><li>Innovation Rates </li><li>R&D Personnel and Expenditure Levels </li><li>Australian Management Skills </li><li>Size of the Manufacturing Sector </li><li>Training Commitment</li></ul>On balance, therefore, Australia's innovation performance has not been up to world class standards over the past few years.
2007-10-17T16:14:20+08:00
1
97
false
true
false
Innovation Checkpoint 1999: Innovation in Australian Businesses
1999-12-16T12:00:00+08:00
<p>This report was commissioned by the Australian Business Foundation to check on Australia's innovation performance, particularly since the publication of the Foundation’s inaugural report <em>The High Road or the Low Road? Alternatives for Australia’s Future</em> in 1997.</p>
<h4>Figures and Tables</h4><h4>Preface </h4><h4>Executive Summary</h4><h4>Introduction</h4><h4>Section 1: Innovation Propensities and Expenditure</h4><h4>Section 2: Business Research and Development Expenditure</h4><h4>Section 3: Business Employment in Research and Development</h4><h4>Section 4: Training and Skills</h4><h4>Section 5: Venture Capital</h4><h4>Section 6: Machinery and Equipment Investment</h4><h4>Section 7: Industry Structure</h4><h4>Section 8: Trade Patterns</h4><h4>Conclusions</h4><h4>Appendix A: OECD Technology Classification of Manufacturing Industries</h4><h4>Appendix B: Commonwealth Government Support for Higher Education Research</h4><h4>Bibliography</h4>
2008-07-10T18:54:42+08:00
The Australian Business Foundation chose the scenario planning tool to help make sense of how the future could pan out for businesses, and to assist all those involved to anticipate and adapt to change, whether it is an unpredictable external shock or an as yet unimagined new opportunity.<br /><br />The critical questions addressed by the Australian Business Foundation in this project were: <ul><li>what are the alternative, plausible scenarios for the future of business in Australia? and </li><li>what are the most robust strategies, based on these scenarios, that maximise our ability to generate wealth and jobs, to integrate into global markets and to contribute to a rising standard of living for the Australian community as a whole?</li></ul>The summary report of the <strong>Alternative Futures: Scenarios for Business in Australia to the Year 2015 </strong>details the four alternative scenarios that were developed.<br /><br />After considering many different drivers of change, trends, forces and uncertainties, we came up with four possible worlds. Each worldview, or scenario, is independent from the others, although they all share common ground. The common ground included trends like the growth of information and telecommunications technology, globalisation of financial markets, and the advent of new technologies, as described above. We understood that a precondition for our future was an accelerating pace of change, and change of fundamental significance to business and society. We recognised the power of the complex interactions between people, technologies and the consumer drivers of technology applications, and the ramifications of these interactions for how businesses compete for the customer. We understood the importance of the opening Chinese economy, with its formidable ability to manufacture and supply large volumes of products at low cost and high speed into world markets, and its increasing ability to utilise high technology and achieve high quality. And we factored in demographic changes at home and abroad.<br /><ul>1. <strong>First Global Nation </strong>describes a successful Australia which adapts with flair and flexibility to the globalisation of world business and the challenges of an online knowledge economy. <br />2. <strong>Sound the Retreat </strong>sees a world in which geopolitical instability and cultural and social backlash override the benefits of economic globalisation, forcing Australia to revalue its bilateral business relationships as multilateral ones became impossible.<br />3. <strong>Brave Old World</strong> is a picture of Australia where our comfortable lifestyles, economic performance, adequate social security systems and laconic approach to the future conceal the need for strategic and concerted effort to make the transition to the global knowledge economy until it is too late.<br />4. <strong>Green is Gold </strong>looks at how global agreements on environmental management imperatives play out in Australia for business and the community at large. </ul><p>By 2015, of course, the world will have evolved rather differently from any one of the 1999 scenarios. There is no such thing as an infallible forecast. But understanding each of the worlds created here will help us come to terms with the complexities of living and working in the present.<br /><br />The full report of <strong>Alternative Futures: Scenarios for Business in Australia to the Year 2015</strong> outlines in detail each of the steps used to develop the four alternative scenarios of Australia. The value of the full report is in its intricate account of the systematic process and methodologies used in scenario planning. <br /><br />Fashioning these alternative scenarios is just the first step. The intention is to provoke reactions and thoughtful commentary from the widest possible range of audiences throughout Australia.<br />People are asked to reflect on three key questions:</p><ol><li>How robust or at risk is Australia, given these scenarios?</li><li>What are the critical responses Australia needs to make?</li><li>What do you and your sector/business/organisation/community need to do?</li></ol><h4>Why Scenario Planning</h4><p>Scenario planning is a tool used by many businesses to develop creative responses to existing and future challenges. This project is about looking beyond the bottom line, beyond the end of the next financial year, beyond the annual report to shareholders. It is about Australians, and especially those involved in business in Australia, engaging intellectually with possibilities for the future, and coming up with responses that can shape that future. <br /><br />This project was not undertaken with the aim of removing doubt, nor of predicting the future, nor even of wanting to 'get it right'. Rather, it was designed to help those involved with business in Australia — governments, investors, consumers, the young, educationalists, families and employees — to think more deeply about the role of business in Australia's future and to create sustainable strategies for business and social success. These scenarios on alternatives for business in Australia focus specifically on building views of the future which address the question: <strong>what can we do to maximise our ability to generate wealth and jobs, to integrate into global markets, and to contribute to a rising standard of living for the Australian community as a whole?</strong></p><h4>The Process</h4><p>Developing the scenarios involved research, consultation, analysis and commentary from a wide range of business, social and educational specialists. The scenarios were many months in the making and represent the distillation of material gathered through media monitoring, literature searches, research, opinion sampling, interviews with experts and focus groups.</p><p>To answer the question posed above, a key step was identifying the 'drivers of change', both for Australia and globally. Once these drivers had been identified, we could then move on to look at how these drivers might affect Australia into the future (in this case, 15 years into the future). This brought us to an examination of the four scenarios presented here, and hopefully the development of new ideas and approaches which can enable Australia as a community to achieve not only the most productive future for business in Australia, but the one that delivers the greatest benefits for all Australians.</p><h4>Drivers for change</h4><p>In undertaking this project, we considered many trends, forces for change and critical uncertainties: the 'drivers for change'. These are both factors which are operating now and those which are foreseeable over the next 15 years.</p><p><strong>Australia as a taker rather than shaper</strong><br /><strong>Globalisation and economic reform</strong><br /><strong>Environment and sustainability</strong><br /><strong>Technology and the interconnected world</strong><br /><strong>Knowledge economy and innovation</strong><br /><strong>Australian economic and social policies</strong></p><p>The Australian Business Foundation, in initiating this alternative business scenarios project, sought to achieve the following: </p><ul><li>add more substance to our knowledge about possible futures for Australian business and so enhance our ability to create a more prosperous Australia with benefits for all; </li><li>dramatically expand the debate and the mindsets about the best economic and industry policy settings needed for Australia to compete globally; </li><li>provide business with more knowledge to underpin their risk management and strategic planning decisions and their assessments of opportunities for new markets, technological advances and further market penetration; and </li><li>contribute a thoughtful and cogent business perspective to dialogues in the media and the wider community about the kind of society we want to create as we approach a new century and a new millennium. </li></ul>
2007-10-09T12:29:00+08:00
1
6
false
true
false
Alternative Futures: Scenarios for Business in Australia to the Year 2015
1999-01-16T12:00:00+08:00
Four alternative futures for Australian businesses
2008-07-10T19:22:43+08:00
<p>The study is divided into three parts, </p><ul><li><strong>Part One</strong> is a literature review which canvasses alternative intellectual approaches to economic development, based on innovation and knowledge as the drivers of growth.</li><li><strong>Part Two</strong> assesses the shape, structure and dynamics of Australian industry against the factors associated with the "learning" economy, particularly innovation capacity, business linkages, management depth, use and transfer of technology and workforce skills.</li><li><strong>Part Three</strong> draws on the findings of the earlier parts and indicates some directions for public policy which all concerned with economic growth in Australia should urgently consider.</li></ul><p>The study draws heavily on the work of the OECD on innovation-based approaches to economic development. The theoretical roots of this report lie in New Growth Theories, Strategic Trade theory and evolutionary economics.</p><p>The short-hand term we use is the "knowledge" or "learning economy", the features of which are an emphasis on the use and dissemination of information and technological progress as the basis for innovation, competitiveness and growth. The critical factor is a nation's ability to innovate and to do so on a continuing basis.</p><p>The research finds that economic success in the future is more likely with a pattern of economic activity and an industry structure that maximises innovation, learning, knowledge creation and dissemination. Firms in these economies are less obsessed with scale and cost, and more concerned about non-price competitive advantage gained from creative uses of information, technology, strategic linkages and skills.</p><p>Consequently, the policy challenge is to ensure that what we make and what we trade as a nation is well-represented in economic activity that is high return, knowledge intensive, high growth and globally competitive.</p><p>Part Two details a new way of looking at Australia's capability and performance, with particular regard to,<br />Industry Shares, Concentration and Linkages</p><ul><li>Skills, Employment and Wages</li><li>Innovation Performance</li><li>Trade Patterns</li></ul><p><strong>A selection of the main findings follow:</strong></p><ul><li>Australia's manufacturing sector has contracted in relative terms at the fastest rate across the OECD economies and it seems Australian manufacturing is in general not gaining employment in industries with higher R&D intensities, contrary to OECD trends.</li><li>The linkages within and between industries in our economy are shrinking, a trend inconsistent with the characteristics of an innovative, learning economy.</li><li>There appears to have been little net increase in value-adding to our natural resources since the mid 1970s.</li><li>Many of Australia's industries are increasingly concentrated, with already 0.4% of businesses employing nearly 40% of all workers. The position of SME's versus large firms is likely to deteriorate in the absence of greater networking and use of cooperative arrangements, and wages and working conditions in SME's are likely to come under increasing pressure.</li><li>Australian business R&D expenditure is below OECD averages but has grown faster than the OECD countries since the introduction of the 150% tax concession. Most R&D take up has been in the medium-low and low-tech sectors of manufacturing. Australia's services sector R&D rates highest in the OECD.</li><li>Australia's overall internationally poor R&D performance is largely the result of our industrial structure which is concentrated in low-tech industries.</li><li>Manufacturing has been measured as one of the most innovative sectors of the economy. Innovative firms tend to show better performance in sales and export growth.</li><li>Australia's trade structure has serious built-in negative biases, like our poor and deteriorating terms of trade, costs of investment in productive equipment imports, etc. </li></ul><p><strong>There are 10 policy pathways for Australia if we wish to take the high road not the low road. These are:-</strong></p><ul><li>Acknowledge the importance of the structure of the Australian economy. </li><li>Integrate trade and industry policies. </li><li>Shift the economy towards greater knowledge and innovation intensity. </li><li>Improve cooperation and linkages. </li><li>Target key productivity drivers. </li><li>Ensure programs are performance-based. </li><li>Build global distribution channels and capability. </li><li>Invest in education and research infrastructure and training. </li><li>Focus public policy and private sector attention on innovation and knowledge as the bases of competition. </li><li>Deal with real industries and their dynamics.</li></ul>
2007-10-17T17:50:22+08:00
1
102
false
true
false
The High Road or the Low Road: Alternatives for Australia's Future
1997-08-16T12:00:00+08:00
<h3>SUMMARY REPORT: Table of Contents</h3><p><strong>Background<br />Introduction</strong></p><h4>Part One: Economic Growth in Modern Western Economies</h4><p><strong>Theoretical Background</strong></p><ul><li><div>The Neoclassical Approach</div></li><li><div>The Evolutionary Approach</div></li></ul><p><strong>The New Economy</strong></p><ul><li><div>Learning Economies</div></li><li><div>Learning Firms</div></li><li><div>Networking</div></li><li><div>National Innovation Systems</div></li><li><div>The Importance of Industrial and Trade Structures</div></li><li><div>Summary of the Main Points From the Literature</div></li></ul><p><strong>The Importance of Industrial and Trade Structures<br />Summary of the Main Points From the Literature</strong></p><h4>Part Two: Australia in a High Tech World</h4><p><strong>Australia's Industrial Composition and Linkages</strong><br />The Role of Manufacturing<br />Industry Concentration<br />Cooperation and Networking<br />Industrial Structure and Input-Output data<br /><strong>Human Capital: Skills, Wages and Employment</strong><br />Management Skills<br />Scientists and Engineers<br />Trainaing<br />Employment and Wage Trends<br /><strong>Australian Industry Innovation</strong><br />R&D Expenditure<br />Other Innovation Measures<br /><strong>Productivitiy Growth<br />Australia's Trade Patterns<br />Summary of Australia's ProblemsPart Three: The Way Forward</strong></p><p><strong>Path One:</strong> Acknowledge the importnace of the structure of the Australian Economy<br /><strong>Path Two:</strong> Integrate trade and Industry policies<br /><strong>Path Three:</strong> Shift the economy towards greater knowledge and innovation intensity<br /><strong>Path Four:</strong> Improve the operation of business networks<br /><strong>Path Five: </strong>Target key productivity drivers<br /><strong>Path Six:</strong> Ensure programs are performance-based<br /><strong>Path Seven: </strong>Build global distribution channels<br /><strong>Path Eight:</strong> Invest in education and research infrastructure and training<br /><strong>Path Nine:</strong> Focus attention on innovation and knowledge as the bases of competition<br /><strong>Path Ten:</strong> Seal with real industries and their dynamics<br /><strong>Concluding Remarks</strong></p><p><strong>Figures and Tables</strong></p><p><strong>Figure 1</strong> Percentage Change in Manufacturing Share of GDP, Various OECD Countries, 1970-90<br /><strong>Figure 2</strong> Industry Employment Growth 1985-95 v. Industry Innovation Propensity<br /><strong>Figure 3</strong> Industry Employment Growth 1985-95 v. Industry Wage Rate<br /><strong>Figure 4</strong> Industry Employment Growth 1985-95 v. Industry Training Commitment<br /><strong>Figure 5</strong> Industry Employment Growth 1985-95 v. Industry Productivity<br /><strong>Figure 6</strong> Australian Business R&D as % GDP<br /><strong>Figure 7</strong> Australian Machinery & Equipment Investment as % GDP<br /><strong>Figure 8</strong> Change in Equipment Capital Stock* per Worker 1965-90<br /><strong>Figure 9</strong> Non-Manufactures Trade Surplus v. Manufactures Trade Deficit % GDP<br /><strong>Figure 10</strong> Australian Manufacturing Trade Balance by Knowledge Intensity (% GDP)<br /><strong>Figure 11 </strong>Manufactures Trade Deficit by Technology Classification Various OECD Countries, % GDP, 1992</p><p>Table 1 Growth in Australian Employment by Beoad Occupational Group, 1986-96</p><h3>FULL REPORT: Table of Contents</h3><h4>Part One Dynamics and Capabilities of Modern Western Economies</h4><p><strong>Introduction</strong><br /><strong>Chapter One: Summary of Traditional Approaches To Economic Growth and Trade</strong></p><ol><li><div>The Traditional Growth Model</div></li><li><div>Problems with the Traditional Model</div></li><li><div>New Neoclassical Growth Theories</div></li><li><div>Implications of the New Growth Theories for Public Policy</div></li><li><div>Limitations to New Growth Theory Approaches</div></li><li><div>Classical & Neoclassical Theories of Trade</div></li><li><div>Problems with the Standard Trade Models</div></li><li><div>Strategic Trade Theory</div></li><li><div>Conclusions</div></li></ol><p><strong>Chapter Two: Innovation-Based Approaches to Industrial Development</strong></p><ol><li><div>Background</div></li><li><div>Evolutionary Analysis</div></li><li><div>Models of the Innovation Process</div></li><li><div>Conclusions</div></li></ol><p><strong>Chapter Three: Knowledge Generation, Diffusions and Use</strong></p><ol><li><div>Background</div></li><li><div>Networked Nations</div></li><li><div>The Generators of Innovation: Firms & their National Support Systems</div></li><li><div>Path Dependence, Cumulative Change & Industrial Structure</div></li><li><div>Conclusions</div></li></ol><p><strong>Chapter Four: The Learning Economy</strong></p><ol><li><div>Background</div></li><li><div>Knowledge & Learning</div></li><li><div>Complementary Assets</div></li><li><div>Learning & Management</div></li><li><div>Knowledge Distribution Power</div></li><li><div>Technological Infrastructure</div></li><li><div>Conclusions</div></li></ol><p><strong>Chapter Five: Internationalisation & Human Resources</strong></p><ol><li><div>Trade Liberalisation and the Learning Economy</div></li><li><div>Human Resources: Knowledge, Employment & Wages</div></li><li><div>Conclusions</div></li></ol><p><strong>Chapter Six: Conclusions: Industrial Structure & the Learning Economy</strong></p><ol><li><div>The National Level</div></li><li><div>The Industry Level</div></li><li><div>The Firm Level</div></li><li><div>Moving to a New Economic System</div></li><li><div>Where to Next?</div></li></ol><h4>Part Two Australia in a High Tech World</h4><p><strong>Introduction</strong><br /><strong>Chapter Seven: The Industrial Structure of the Australian Economy</strong></p><ol><li><div>Industry Shares</div></li><li><div>Employment Shares</div></li><li><div>Cooperative Business Linkages</div></li><li><div>User-Producer Relations</div></li><li><div>Industry Concentration</div></li><li><div>Conclusions</div></li></ol><p><strong>Chapter Eight: Human Resources: Skills, Employment & Wages</strong></p><ol><li><div>Management Skills</div></li><li><div>Science Skills</div></li><li><div>Employee Skills, Wages & Employment</div></li><li><div>Conclusions</div></li></ol><p><strong>Chapter Nine: Australian Industry Innovation</strong></p><ol><li><div>Business Research & Development</div></li><li><div>Other Measures of Innovation</div></li><li><div>Innovation and Firm Performance</div></li><li><div>Australian Innovation Compared</div></li><li><div>Australian Productivity Growth</div></li><li><div>Machinery & Equipment Investment</div></li><li><div>Infrastructure</div></li><li><div>Human Resources Management Programs</div></li><li><div>Conclusions</div></li></ol><p><strong>Chapter Ten: Australia's Trade Patterns</strong></p><ol><li><div>Trade and the Learning Economy</div></li><li><div>Australia's Trade Patterns Described</div></li><li><div>Australia's Trade Patterns in a 'Learning Economy' Context</div></li><li><div>Conclusions</div></li></ol><h4>Part Three The Way Forward</h4><p><strong>Chapter Eleven: Policies and Pathways</strong><br /><strong>Pathway One:</strong> Acknowledge the importance of the structure of the Australian economy<br /><strong>Pathway Two:</strong> Integrate trade and industry policies<br /><strong>Pathway Three:</strong> Shift the economy towards greater knowledge and innovation intensity<br /><strong>Pathway Four:</strong> Improve cooperation and linkages<br /><strong>Pathway Five:</strong> Target key productivity drivers<br /><strong>Pathway Six:</strong> Ensure programs are performance based<br /><strong>Pathway Seven:</strong> Build global distribution channels and capability<br /><strong>Pathway Eight:</strong> Invest in education and research infrastructure and training<br /><strong>Pathway Nine:</strong> Focus public and private sector attention on innovation and knowledge as the bases of competition<br /><strong>Pathway Ten:</strong> Deal with real industries and their dynamics</p>
2007-10-29T17:56:13+09:00
The Australian Business Foundation sought to assess and report on the following issues: <ul><li>analyse the extent to which investments in high value added, knowledge intensive industries can generate higher economic growth and sustainable employment opportunities, both directly and indirectly; </li><li>assess Australia's potential for creating more and better jobs from a greater investment in knowledge intensive activities; </li><li>examine why Australia may fall short of our potential in these areas, given our skill endowments and market characteristics; and </li><li>derive some implications which could assist policy makers.</li></ul>The study provides an input into the development of a policy environment which can maximise the creation of sustainable jobs in more modern, high value added industries. Such a policy approach is required to meet community concerns about jobless growth and rising levels of unemployment fuelled by the tendency in the more mature parts of industry for productivity growth to outrun output growth leading to higher output but few jobs.<br /><br />This study draws out from a reasonably broad based survey of companies operating in high growth and knowledge intensive industries, a better understanding of the potential these industries have to grow and provide high quality sustainable jobs. <br /><br />The research concentrates on high growth firms and knowledge intensive industries, and examines their performance with respect to growth in output, exports and jobs. It also sought to identify the factors underlying competitive advantages; potential for future growth and sustainable job creation; and the elements in the policy environment which nurture growth in these industries. The industries we have concentrated on are:<br /><ul><li>information technology (including software) and telecommunications; </li><li>pharmaceuticals; </li><li>medical and scientific instruments; </li><li>machine tools and tooling; </li><li>automotive (including design); and </li><li>shipbuilding (specialist vessels). </li></ul><p>These industries are all relatively knowledge-intensive and have primarily grown through export growth and provide high quality jobs. In general these industries employ highly skilled people not just in their product development, engineering and design, but also increasingly in production. They account for over half of total business expenditure on research and development (R&D) and over one third of exports of elaborately transformed manufactures (ETMs).</p><h3>The Winning Companies</h3><p>Within these industries we have focused our attention on a group of companies which demonstrated 'winning companies.' They share a set of common characteristics: </p><ul><li>they operate in fields characterised by high returns and growth; </li><li>they have demonstrated a high capacity for innovation; </li><li>they rely on technology and 'brainpower' as a source of competitiveness; and </li><li>they have shown that they can succeed in global and regional markets.</li></ul>The companies we surveyed have a very distinctive view of the basis of their competitive advantages. The emphasis is on delivering greater value to customers than their competitors rather than producing standardised products at low prices. They gave top rating to the following four factors: <ul><li>technology; </li><li>R&D; </li><li>quality; and </li><li>workforce skills.</li></ul><p>Low costs were important, but were not seen as being a key source of sustainable competitive advantage. The winning companies have adopted a high focus niche market approach. They have sought leadership through concentrating their efforts on mastering a small number of products, services and processes. </p><h3>Winning Companies - key characteristics</h3><p>High focus - niche strategy</p><ol><li>Innovation - rapid product development</li><li>People are the key resources</li><li>Close relationships with leading edge customers</li><li>Strategic alliances for technology, manufacturing and marketing</li><li>Close linkages to the science and technology base</li><li>Capturing the value chain</li><li>Mandates for MNCs subsidiaries</li><li>Growth through exports</li><li>Exploiting opportunities in Asia</li></ol>On the basis of our survey and interviews with the winning companies, we consider that a set of policies is needed to nurture the winning companies and the high growth and knowledge intensive industries of which they are such an important part in order that they can achieve their full potential as contributors to economic growth and job creation. Some elements of such a policy framework are already present but others are either inadequate to the task or are not present. <br /><br />The measures needed include: <ul><li>A Vision for the Development of High Growth and Knowledge Intensive Industries </li><li>Support for R&D and Innovation </li><li>Support for Investment </li><li>Support for Exports</li></ul>
2007-10-17T17:48:36+08:00
1
101
false
true
false
Winning Companies and Jobs
1997-07-16T12:00:00+08:00
2007-10-29T17:43:47+09:00