Rod Oram gave the closing keynote at Dynamics Day 2012. He discussed how data is driving business transformation and highlighted examples of New Zealand companies that are leveraging data and sustainability to succeed internationally. Oram also noted opportunities for New Zealand to double its economic growth through high-value exports and becoming a global leader in areas like sustainable dairy and Antarctic research. He believes New Zealand needs new management approaches and values to foster innovation, partnerships, and a more sustainable and prosperous future.

1. Dynamics Day
Closing Keynote

2. Don’t forget to hand in your
evaluation forms
Hand in to any of the Intergen
team.
Draw will be made over drinks
immediately after this final
session.
Dynamics Day 2012 Keynote

3. Data driven enterprise
Introducing Rod Oram

4. Rod Oram’s presentation to
Intergen’s Dynamics Day 2012
Auckland, October 31st, 2012
Game-changers
Data-driven business
Kiwiki on Facebook / Twitter @RodOramNZ
oram@clear.net.nz / +64 21 444 839

5. Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies

6. Then…. …Now
• 2007-09 • 2009-20??
• Sudden liquidity crisis • Long-running structural crisis
• Big, quick fix • Big, slow fix
• Pump in lots of money • Restructure economies
• Lots of political will • Lack of political will
• Lots of public support • Lack of public support
• Worked fast • Will work slowly
• Markets re-assured • Markets fearful
• Moved on to current phase • Very, very stuck

7. Saving Europe is simple
• All it would take is:
• French reform
• German extravagance
• Italian maturity
• …as The Economist opined May 12

8. People, planet
• Vision 2050
• A very challenging roadmap
for corporate development by
World Business Council for
Sustainable Development
• …NZ version just released

9. w
• q

10. Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies

11. Cradle to Cradle
• One product gives rise to the next
• …waste, by-products and recycling of one, become materials for the next
• …emulating nature’s cycles

12. Ray Anderson
• Founded Interface in 1973
• …15 years later world’s largest maker of carpet tiles
• His “mid-course correction” came in 1994, when he was 60
• 2020 goal: take nothing from the earth that could not be
rapidly replenished, produce no greenhouse-gas emissions, and no waste
• By 2007 Interface was about halfway up “Mount Sustainability”
• Greenhouse-gas emissions by absolute tonnage were down 92%
• Water usage down 75%
• 74,000 tonnes of used carpet recovered from landfills
• Savings of $400m each year from no scrap and no off-quality tiles more than paid
for the R&D and process changes
• As much as 25% of the company's new material from “post-consumer recycling”
• Sales had risen by two-thirds and profits had doubled
• Ray Anderson’s Economist obituary www.economist.com/node/21528583

13. The next 10 years
• Finance and capital conditions
• Finance more expensive and less available
• Market and regulatory constraints
• Less benign economic conditions
• Higher economic volatility; Increased risk
• Low carbon-economy
• New disciplines & technology
• Far greater resource efficiency
• Technology change accelerating
• Public losing trust in business
• Scepticism over Anglo-Saxon model
• More government intervention
“The Shape of Business”
Confederation of
• Social and demographic change British Industry
• New responses to retirement, pensions
• New business & government solutions www.cbi.org.uk
• E.g. more flexible working practices

14. Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies

15. Slowth
• We’re still recovering slowly…
…helped by rebuild of Christchurch
• Growth in year to June 2012
was 2.0%...
..could peak at 3% next year
…dominated by Christchurch
• But will then sink back to its
long-run slow growth average
of around 2%
• Why can’t we grow faster, longer by
earning a bigger living in the
world economy?

16. …we must double growth
• We need to more than double our growth rate to at least 5% a year
• …but our non-inflationary growth rate has dropped to 1.9%
• …and the growth trend will remain weak out to 2014, Treasury forecasts

17. Value creation & capture
• 1 Fonterra plant in NZ makes infant formula for Pfizer
• 8% Pfizer’s Chinese market share for infant formula
• US$12bn Nestlé paid for Pfizer’s infant formula brands
= 3 x Fonterra’s net asset value

18. Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies

19. NZ 2050
• …by a group of young leaders…
• …under the NZ Business
Council for Sustainable
Development…
• …which morphed into the
• Sustainable Business Council
• Download at:
• http://bit.ly/PxiG1B
• NZ site coming soon at:
• http://www.vision2050nz.co.nz
• Vision 2050 Global report at:
• http://bit.ly/Ox0HsK

21. Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies

22. Paradox
Abundance Scarcity

23. Re-invention
Scarcity Abundance

24. Poverty
Cows Scientists

25. Wealth
Lacto-pharmaceuticals
Milk powder

26. How about creating global centres of excellence in:
a
- Dairy nutrigenomics
- • Earthquake prediction, rescue & recovery
a
- 21st century city systems
- Antarctic research

27. Poverty
No.8 Game-changers

34. Wealth
Game-changers No. 8

35. LanzaTech…clean tech leader
• Commercialisation agreement with:
• Chinese Academy of Sciences
• Baosteel; next pilot plant in China
• Makes biofuel from industrial waste gases
• Turns greenhouse gas liability into profit
• World pioneer of the science
• Auckland-based; NZ Steel pilot plant
• Big venture capital backing
• US$100m of capital so far
• NZ: Stephen Tindall
• US: Vinod Khosla
• Chinese and Malaysian investors too

36. Poverty
Sustainability
Weak Strong

37. Wealth
Sustainability
Strong Weak

38. Zespri
• April 2009: Published its carbon life cycle analysis:
• Orchard operations make up 17% of total emissions for EU exports
• Packhouse & coolstore processes account for 11% of total emissions
• Shipping accounts for 41% of total emissions
• Repacking and retailer emissions amount to 9% of total emissions
• Consumer consumption & disposal comprises 22% of total emissions
• Bottom line: resource efficiency builds a more profitable, resilient business
• E.G. Kite-assisted ships save 22% of their fuel bills on average

39. Our future
• NZ Land: 270,000 sq km
• Australia’s 28x NZ
• NZ Oceans: 5.8m sq km
• 5th largest in the world
• Australia’s 1.4x NZ’s
• Huge responsibility:
• …to nurture
• …to use responsibly
• …to sustain us
• We need new values, systems, collaboration:
• …to be sustainable
• …to offer hope to the world

40. Poverty
Simplicity Complexity

41. Accounting
• Fra Luca Pacioli
• …Venetian monk, polymath, friend of the clever,
creative, rich and famous
• …including Leonardo da Vinci
• Published in 1494
Summa de arithmetica
• …which included the first full, public description of
the secret double-entry book-keeping system
used by Venetian merchants
• Basically, we’ve been double-entry book-keeping
(assets/ liabilities; credits/debits etc) ever since
• Financial accounting…
• …brilliant but limited, thus flawed

42. Management matters
• NZ government-funded study of
large and medium NZ
manufacturers
• Study by London School of
Economics and McKinsey…
…sub-contracted to University of
Technology Sydney
• Comparisons with 16 countries

43. Raising laggards has huge economic impact

44. Wealth
Complexity Simplicity

45. New management disciplines
• Relationships: from transactions to partnerships
• …particularly highly strategic ones
• Innovation: from incremental to radical
• To meet new needs…in new ways
• Open innovation and other forms of collaboration
• New opportunities for NZ companies to partner with global ones
• Sustainability: from fringe to mainstream
• Measuring and managing environmental flows through our businesses
• Push down the road to true sustainability
• Management: from tactical to strategic
• Need to collect, interpret and act on real-time data
• Everything we do today is a piece of our big picture

46. Integrated Reporting
• The next big initiative by corporates
and accounting bodies
• Seeking to make financial,
environmental and social
measures…
• …much easier,
more accessible and
more useful to corporates,
investors and the public
• www.theiirc.org

47. Agenda
• World
• Revolution
• New Zealand
• Opportunity
• Paradox
• Companies

48. Vanguard NZ companies
• An exciting new class of NZ companies is emerging:
• Hallmarks:
• Inspired products & services offering unique value
• Originality born of NZ roots
• Smart strategies for international markets
• Astute management skills to acquire & develop
human & technology skills; capital
• Confidence & skills to collaborate with
partners, suppliers, customers abroad
• Across the economy: domestic; import; export

49. Quadruple B businesses
• Building
• Billion $
• Businesses from the
• Beach
• Rod Drury…
• …serial entrepreneur
• …founder of Xero

50. www.3000.org.nz

51. … Johnny Rotten:
“You’ll have no future…
…if you don’t make one
for yourself”

52. Thank you