The Great Internet Debate

Over the past few weeks we’ve heard a lot about the impact of the Internet on the retail sector as consumers continue to abandon traditional shopping for the cost-saving and convenience of online shopping.



However, what hasn’t been getting anything like as much attention is the effect that the Internet is having on the way companies source various resources required for the operation of their business. The Internet is enabling the phenomenon of crowdsourcing - a practice that involves companies posting an ‘open call’ on the web for the provision of a specific product, service or solution (to a problem). An open call invites contributions from anybody anywhere in the world who feels they can provide the required product/service/solution.



U.S. T-shirt company Threadless is an example of an organisation that uses this approach. In this instance, the open call invites people to submit new T-shirt designs, an online poll then determines the popularity of the submitted designs which then forms the basis for the decision by Threadless as to which designs go into production. The produced T-shirts are then sold on-line. Therefore, in this web-enabled business model, not only is the sales channel the Internet but the web-based product design is almost free (design ‘winners’ receive a modest payment) as is web-based market research (an on-line ‘community’ provides their opinion of the submitted designs for free).



As we’re in the early days of crowdsourcing, it’s too soon to be sure exactly what the impact of this practice will be on different industries and occupations. However, crowdsourcing has already led to an active debate as to whether it should be seen as a highly positive development because it is so inclusive, offering anyone with Internet access the chance to offer their services, or whether it is less laudable, even exploitative, because of all those who submit their work, only the winner receives payment. 



Author: Professor Richard Dunford – University of Sydney Business School

Challenging Assumptions

Questioning assumptions is a crucial exercise for anyone looking to establish themselves as a revolutionary thinker and problem solver.

Despite this, the critical analysis of textbook theory or accepted business practices is not something I see many students readily undertaking. It’s something I strongly encourage them to do. Afterall, if you look at history, the people who have changed the world are the ones who have questioned established thinking. Take Mahatma Gandhi as just one example. During his time most of the people who were fighting against the Indian Government were doing so using violent means. But he questioned the assumption that violence was a necessity and wondered if maybe there was a better way. When it comes to a business context, I try to illustrate that if you really want to be unique, then you too must think differently. If you don’t, you’ll probably just come to the same conclusions as everybody else.

One of the ways to challenge perceptions is to closely examine the assumptions of a particular framework or theory or practice and question why it has to happen that way. Consider the field of marketing as an example. We’re constantly bombarded with the idea that the best way to succeed in the marketplace is to understand the needs and wants of consumers and meet those needs better than everybody else. I don’t think there’s enough questioning of that fundamental assumption. Indeed, what if we asked the following questions: do consumers really know what they want? Do they know what kind of smartphone they want in five-years? Very few could tell you that, yet operating on the above assumption may mean that you’re constrained by their vision, not yours. Therefore you’re driven, not driving.

In the classroom I tell students that they may one day find themselves in a situation where 100 people are looking at the same management or marketing challenge. But by pushing key assumptions from the problem, they may well be able to come up with a solution that is truly unique.

Author: De Ranjit Voola – University of Sydney Business School

The Finishing Touches

In the current economic climate, possessing a distinctive personal brand and strong credibility is more important than ever.

From my own experience, I can say that the Master of Management degree is a program that allows you to achieve just that. Having already completed a commerce degree prior to enrolling, I was subsequently impressed by the constant opportunities to apply my existing knowledge in partnership with other students, staff, and corporate partners. The emphasis on accountability, adaptation and persistence was also a major selling point. And while the course definitely equips you with the skills for career self-sufficiency, it also constantly reinforces the importance of building strong corporate networks.

One of the best elements was the chance to showcase our abilities to corporate partners such as Deloitte, as well as non-profit organisations like Fitted for Work and Future Direction Network. Participating in team projects in conjunction with these organisations enabled us to gain invaluable experience in interacting with and pitching to senior executives. It was a great way to experience the reality of the commercial world in a safe space with a peer group that you could both learn from and teach.

These days, employers look for graduates who can contribute to company revenue from their first day on the job. Indeed, the next generation of managers needs to approach their careers with an attitude that reflects the complexity of the modern commercial environment. I think that few undergraduate degrees adequately prepare job candidates for the realities of this challenge. Many employers realise this. That’s why I feel the Master of Management has been so important to my professional development. It has enabled me to differentiate myself from the competition and plays an ongoing role in helping me develop my corporate career.

Brand Power

A respected and recognisable brand is the most valuable asset - tangible or intangible - that any company can possess.

Far more than just a logo or mere embodiment of an individual persona, a brand represents the very soul of a business. As that business grows, the brand evolves into its own entity, subsequently transforming itself into an enduring offering. From this point business direction becomes increasingly important, especially in today's social media savvy world. Some fundamental strategies to consider when developing an influential market presence are as follows:

• Maintain the focus on the end purchaser. To be successful, a brand must understand its audience thoroughly and satisfy their expectations throughout the interaction process.
• Remember your stakeholders at every level. From factory to furnace, ensure that your core values are evident to everyone at all times.
• Ensure your offering, whether that be a service or product, espouses your core brand values. Apple is a great example of this, having adopted the position of ‘intuitive design’ that resonates powerfully with users.
• Always strive to develop better, more compelling brand-aligned offerings that will continue to grow the brand value.
• Tell your story succinctly. You should be able to clearly define your brand difference in 25 words or less.
• Create communications that are distinctive and have cut-through. Ensure the pitch is consistent across all mediums so as not to dilute the overall brand message.
• Be aware of the impacts, benefits and costs of tactical and strategic plans, and understand the difference between the two. Remember: the businesses that survive are the ones that can see the big picture and know where they need to go.

Author: Michael Locke – Master of Management academic advisor / marketing consultant

A Model Of Efficiency

After the total failure of traditional economic models to warn of the impending GFC, it’s clearly time to explore new methodologies for predicting catastrophic financial events and developing new policy responses.

The concept of agent-based modelling is becoming increasingly viewed by international governments and top scientists as that much-needed solution. An emerging computational simulation method that focuses on the interaction of many complex systems, it’s an approach that can better enable us to foresee the possibility of extreme events and to better understand the factors that drive them.

Essentially, agent-based modeling (or ABM) is like a flight simulator for managers and policy-makers. It’s an artificial world in which researchers can seek to explain or understand certain phenomenon by reproducing the actual mechanisms that make them happen. It may come as a surprise to learn that computer simulation games like SIMlife, SIMPark and Second Life are all based on this same methodology. The only difference in this instance is that we’re using the technology to better understand the economic environment with a view to informing policy and management decisions.

The fact that agent-based models are calibrated against the real world means we can ask specific questions of that model. For instance: how sensitive is it to different types of social and economic stimuli? How many kinds of realisations of the world are possible? Examples of how this modelling is currently being used can be found in the work of leading economists who are investigating why poor decisions were made in the lead-up to the GFC.

It’s important to acknowledge that realistic modelling of the world cannot be achieved via the use of traditional modelling systems. That’s because they’re all built on linear assumptions. However, the real world is characterised by its highly non-linear nature (think extreme events like tsunamis, volcanic eruptions and market crashes), so it’s clear a different approach is required. Now, thanks to enormous computing power, revolutionary programming capabilities and user-friendly modelling environments, we have ways of validating ABM against the real world. I believe it really does represent the way forward for the world’s policy-makers.

No Shortage Of Options

I’d planned to do a Masters degree at some stage in my life but I didn’t know whether that was going to happen at age 20 or age 40.

Having completed my undergraduate degree in Marketing and Public Relations towards the end of last year, it was something I was certainly considering as a next step. Well, it was either that, getting a job, or going traveling. In the end, I think I felt I wasn’t really ready to leave uni, so I started researching different masters degrees options. Eventually, a friend put me onto the Masters of Management program. I saw it as a great opportunity to differentiate myself, develop the skills I'd learned, and gain the confidence to be a leader in my chosen field.

I was also attracted but the prospect of interacting directly with businesses and participating in amazing projects like the Deloitte Fastrack Challenge. I think that type of hands-on emphasis is a major advantage, and I also think that being able to go into a business interview at the end of the course and say that you’ve had all these practical experiences already will be a major advantage.

I’m currently halfway through and love the fact the course has attracted a really diverse range of students. In an undergrad environment you’re all taught to think one way, but here people go at ideas from so many different angles. That aspect has really surprised me. But probably the best part is that the actual student cohort is so much smaller than what I’m used to. It’s like being back in high school, with the same people in every class. We all help each other through.

Originally, I saw myself going into a marketing role after finishing university, but now I’m not so sure. The more I progress, the more I think that maybe that isn’t where I want to go. For example, the Fastrack Challenge has got me considering management consultancy as one possible future career path. One thing’s for certain: I have so many more options than I did a year ago.

The Value Of Ethics

Contrary to what many may believe, business success is about much more than the bottom line.

Increasingly, organisations are realising that producing tangible social benefits for the wider community is also crucial to corporate survival. It’s all a far cry from the argument of 1970s rightwing economist Milton Friedman, who famously stated that companies didn’t owe society anything and were only in operation to maximise shareholder returns. He felt that if shareholders wished, they could subsequently direct their own windfalls to charities or philanthropic causes. I don’t think that particular argument holds – then or now.

Indeed, the benefits of striving for both corporate and societal gain - something referred to as creating shared value - are significant. For starters, modern consumers take corporate behavior into account when making purchasing decisions. As such, meeting expectations around issues like the environment and animal rights can provide the competitive edge required for success and growth. The ability to attract and retain employee talent is also strongly linked with perceived social responsibility. More and more, young job seekers are caring about issues and broader society and want to work for organisations they’re proud to work with. They want to link up with organisations whose values are aligned with theirs. With career decisions made based on perceptions of how ethically responsible an organisation is, businesses are increasingly looking to align their brand with good causes and practices.

While the ideals of corporate-social responsibility versus business profitability are often presented as diametrically opposed propositions, it certainly doesn’t have to be the case. Both can be achieved simultaneously. Businesses can improve profitability while also delivering a wider social benefit. The real challenge for modern managers is to create this shared value, thus combining shareholder interests with the need to make a powerful community contribution.

Rules of Engagement

As a project advisor for the Master of Management program, I’m constantly impressed with the talent, enthusiasm and presentation skills demonstrated by participating students.

Indeed, some of the groups I’ve mentored have probably exhibited the type of acumen that you’d normally only see at a high-level board presentation. In guiding the teams, I find it’s often useful to impart four key guidelines that can prove invaluable when developing and presenting project concepts. These are as follows:

1. Establish a structure: Draw up a simple one-page picture or diagram that clearly shows how the available data and resulting analysis will be turned into final client recommendations. This will help guide the team more effectively and provide a good basis for communicating with the client.
   
   
2. Acquire the right information: The best projects are always supported by hard data. The question is: how do you know if the information you have serves the intended purpose? Firstly, outline your argument and highlight the strengths of the supporting information. Then critique the information in terms of how well it supports your assertion. This will clearly indicate the areas that need further research.
   
   
3. Communicate constantly: Check in with the client regularly and work on the client’s premises as much as possible. This eliminates communications inefficiencies and guarantees you regular face-to-face contact. Always keep them informed at key project stages. During the final presentation stage, you really just want to be confirming what they already know.
   
   
4. Tell a compelling tale: Make sure that a final presentation always tells a story. Frame the argument and then take the client on a journey, backing it up with strong supporting evidence. By the time you get to the recommendation slides, it should be a no-brainer. Also be sure to anticipate client questions ahead of time and have detailed responses at hand. This is always impressive.

Author: Damian DeGuara – management consultant/academic advisor

A Long Way From Home

I really wanted to study abroad and saw Australia as the ideal place, largely because of the good reputation of its universities and the fact I’d get to enjoy sunshine for most of the year.

The particulars of the Business School’s Master of Management degree also played a big part in my decision to enroll here. I have a degree in Social Work and my main aim is to get into management in that area. To achieve that aim these days you need some kind of business ability. While I had done some business components within my degree back in Germany, I didn’t think it was enough. I wanted to extend that knowledge and gain new skills, and then go back home and apply them.

One of the main reasons the degree appealed to me was that it was a one-year course. The equivalent program in Germany would have been two-years and would have entailed much less practical work. The idea of doing a business project instead of a thesis also impressed me. Although my limited business knowledge ensured that it was quite a sharp pace in the early stages of the course, this just added to the challenge and I think it’s actually worked out quite well.

The best thing so far is that we’ve done a lot of direct work, so instead of just learning about concepts we’re actually using them. I also like the way the Business Faculty make it possible for us to meet professionals from different areas of the corporate and NGO arenas. I’ve found this very interesting as you actually have the chance to talk to them about what they’re doing instead of just studying the theory in a classroom.

The New Reality

If the harsh realities of the post-GFC environment have taught us anything, it’s that the cornerstones of traditional management models no longer hold any relevance.

Consider the way in which companies once dealt with adverse financial conditions. In the past, a successful counter-strategy would have involved steps like the implementation of cost-controlling and exposure-limiting measures. However, when the GFC hit and radically altered the market fundamentals, businesses reported that these established models didn’t work. Since then, they’ve continued to struggle with the realisation that they have to think and act differently.

Like it or not, the world has changed. In fact, it’s pretty hard to think of an industry that will be the same 10-years from now. For example, the difficulties currently being experienced by the retail sector probably represent the new normal and not just part of a cycle that’s going to eventually deliver a return to the past. This means that organisations need to radically alter their approach if they hope to survive.

With this in mind, businesses need to innovate and come up with new ways of servicing customer needs. They need to develop sustainable business models that have lower costs and higher values. They need to take what they do now and adjust it to suit market circumstances. This will require managers who are able to identify new potential growth ideas and reward employees for breaking the constraints of previous business models.

The ability to attract and retain in-demand talent will also be vital, as it’s these people that will ultimately deliver business success. Finally, quality leadership will be more critical than ever. Highly successful managers will be those who are able to inspire their people with a vision of the future while also imparting a strong sense of the values and ideals for which an organisation stands.

Follow Nick @NickWailes on Twitter.

Kicking Goals

Australia’s oldest football club might seem an unusual place for a group of management students to apply their rapidly developing business acumen.

Nevertheless, our association with some dedicated Master of Management candidates has definitely yielded benefits for everyone involved. It all started about three-years-ago when we were asked to consider a role in the postgraduate program. We quickly came up with the idea of setting some students to work on some case studies dealing with the issues that Sydney Uni Football Club faces on a daily basis. Chief among these was the recruitment and retention of sponsors, looking at ways of giving them additional value in terms of why they should continue or perhaps commence an involvement with the sixth-oldest rugby club in the world. The issues of student engagement and the need to generate increased rugby participation rates were also canvassed.

In the end, the students (of which only one actually played rugby) came up with a set of recommendations to improve our business model, some of which we’d simply never thought of previously. For example, they looked at membership pricing structure and suggested ways of creating consistency between what members got for the money they outlaid. They also examined other prominent rugby universities around the world to see how they were achieving success in terms of engaging students and supporters. Tellingly, we implemented as many of their ideas as we possibly could.

For us it was a fantastic experience. The students were enthusiastic and bright, and there’s currently ongoing discussion as to what our next collaborative project will be. At the Sydney University Football Club we always try and associate ourselves with world-class brand names and individuals. It’s fair to say that our relationship with the Master of Management program is definitely a part of that.

Author: Ray Dearlove, General Manager, Sydney University Football Club