Strengthening the collaboration between academics and industry through the network-centric approach

1. Collaboration between Academicians and Practitioners in Enhancing Accounting Knowledge Nik Mohd Hasyudeen Yusoff CEO and Thought Leader, Inovastra Competitiveness Through Innovation and Strategy

2. Agenda Wikinomics Network-Centric competition Value creation through networks Applying the network-centric concepts in accounting knowledge development Concluding thoughts

3. 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

4. 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

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

6. 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”

7. 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

8. 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

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

10. 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

11. Network-Centric Competition 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

12. 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

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

14. Network-Centric Competition Network-Centric Competition Management Features

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. Applying the network-centric concepts in accounting knowledge development

25. Applying the network-centric concepts in accounting knowledge development

26. Applying the network-centric concepts in accounting knowledge development

27. Applying the network-centric concepts in accounting knowledge development 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

28. 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 Applying the network-centric concepts in accounting knowledge development

29. Financial And Business Reporting Supply Chain Source: XBRL International Even financial Reporting could provide ample opportunities for value add Applying the network-centric concepts in accounting knowledge development

30. Applying the network-centric concepts in accounting knowledge development

31. Applying the network-centric concepts in accounting knowledge development

32. Applying the network-centric concepts in accounting knowledge development

33. Applying the network-centric concepts in accounting knowledge development

34. Applying the network-centric concepts in accounting knowledge development

35. 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

36. 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

37. 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

38. 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