Collaboration Between Academicians And Practitioners In Enhancing Accounting Knowledge

Collaboration between Academicians and Practitioners in Enhancing Accounting Knowledge
Nik Mohd Hasyudeen Yusoff
CEO and Thought Leader, Inovastra
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

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

Wikinomics
Inovastra’s view of value creation
Leadership
Strategy
Values
Value proposition
Internal resources
Value creation
Customers
People
Processes
Functionality
Platform
Intellectual assets
Feelings
Physical resources
Financials
Protocol
External network
Business partners
Institutional partners

Politics
Your
Competitors
Your
Competitors
Economy
Your
Customers
Your
Customers
Your
Customers
Society
Technology
Your
Business
Your
Suppliers
Your
Network
Partners
Environment
Wikinomics

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”

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

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

An
enterprise
vertically
structured
Vertical
Integration?
Market 1
Direct present
Market 2
Market 3
Direct present
Direct present
Network-Centric Competition

An
Enterprise
leveraging
on network
Network-
Centric?
Market 1
Direct present
Service Platform
Owner
Market 2
Market 3
Network
Partner
Network
Partner

Business
Services
Firm 3
Business
Services
Firm 1
Yes, we have solutions!
Problems
Subject
Matter
Expert
Clients
Knowledge
provider
Business
Services
Firm 2
Sorry, no capability

New services to new clients based on partner’s
capabilities
Business
Partner
New
Clients
New services based on partner’s capabilities
Business
Services
Firm
Existing
Clients
Existing services based on existing capabilities
New services based on newly acquired capabilities
Business
Partner
New
Clients
New services to new clients based on partner’s
capabilities and new distribution channels

Network-Centric Competition Principles
1 – Adapted from the Principles of Network-Centric Innovation, The Global Brain, Nambisan and Sawhney

Network-Centric Competition Management Features

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

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

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

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

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

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

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

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

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

More academic issues
to build up competency
Feedback to enhance
the teaching of new
accountants
Academicians
Real
life issues
with real
implications
Mixture of real
life and academic
issues

Opportunities for academicians
to add value to each components
of the value creation process is
huge but this need to be viewed
beyond a specific knowledge concentration
Leadership
Strategy
Values
Value proposition
Internal resources
Value creation
Customers
People
Processes
Functionality
Platform
Intellectual assets
Feelings
Physical resources
Financials
Protocol
External network
Business partners
Institutional partners

Financial
And Business
Reporting Supply
Chain
Source:
XBRL
International
Even financial
Reporting could
provide ample
opportunities
for value add

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

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

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

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

Collaboration Between Academicians And Practitioners In Enhancing Accounting Knowledge

by Nik Hasyudeen on Oct 20, 2009

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Collaboration Between Academicians And Practitioners In Enhancing Accounting Knowledge — Presentation Transcript