Digital Disruption: threat or opportunity?

Digital Disruption refers to a broad range of changes that affect businesses and organisations and are experienced by all of us in our daily lives. Digital Disruption is brought about by the application of and innovation with digital technologies such as smartphones, social media, various other Internet services, as well as the digitisation of traditional media. More and more such services and digital media become integrated into our everyday equipment, such as cars or entertainment systems.

Digital Disruption is often portrayed as an obstacle or threat to established businesses and frequently seen as bringing about unwanted changes to our social lives. Indeed the term ‘disruption’ almost carries with it a negative connotation. For example, the invention of mp3 has fundamentally disrupted the music industry, online delivery threatens traditional retail models, new online delivery modes ask tough questions of incumbent media corporations and the recruiting industry has to cope with job seekers having direct access to information and organisations like never before.

But while these changes present challenges, Digital Disruption at the same time brings with it tremendous opportunities and promises to innovate, invent new services, connect people in new ways or make more informed decisions. For example, today it is easier then ever to connect and communicate with our peers, we can roam the world with amazing new navigational devices, the Internet opens up spaces for crowdfunding of non-mainstream ideas, new technologies allow us to invent new co-working arrangements or augment our experience of the physical world, such as in museums or when travelling.

Problems and questions however remain: While opening new worlds for some, does digital technology exclude others? To what extent will digital change improve or worsen environmental sustainability? What are the implications for labour relations? How do organisations have to adapt in order to be at the better end of these changes? In short, how do we balance opportunities and threats?

Join us on 5 September 2013 at DISRUPT.SYDNEY, a full day event with presentations, talks, hands-on workshops and expert roundtables, hosted by the University of Sydney Business School’s Digital Disruption Research Group at our new CBD campus facility. Learn about disruption and how to capitalise, be challenged in your thinking, and see digital change in a new light.

For more information and registration to this free event visit: http://www.disruptisydney.com 

Author : Associate Professor Kai Riemer
Chair of Discipline of Business Information Systems, University of Sydney Business School
Kai's research covers the areas of Enterprise Social Media, Digital Disruption, Technology Appropriation and Sense-Making, Virtual Work, and the Philosophy of Technology. You can read more at his blog. Also follow Kai on Twitter.

Poverty Alleviation and Profitability: A contradiction in terms?

There are very few experts globally who can claim to have an informed and researched opinion on Poverty Alleviation through Profitability. One such rare thought leader is Jaideep Prabhu a Jawaharlal Nehru Professor of Indian Business and Enterprise, Director of the Centre for India & Global Business at the Cambridge Judge Business School. He is also the co-author of the best-selling book Jugaad Innovation: Think Frugal, Be Flexible, Generating Breakthrough Growth. Jaideep is also a member of the University of Sydney Business School's Poverty Alleviation and Profitability Research Group. I caught up with him and Andrew Jenkins from BRAC recently to talk about the challenges ahead for organisations that are looking to engage with the poor consumer at a profit in a bid alleviate poverty.

According to Prof. Prabhu, the World Bank estimates that around 4 billion people around the world live at the Bottom-of-the-Pyramid, earning less than $3,000 PPP per annum, that is less than $9 PPP a day. This includes more than half the world’s population, many living in Africa, Asia, Latin America, and some other parts of the world. They are usually left out of the formal economy and so don’t have access to things that most of us take for granted, such as financial services, clean energy through the grid, healthcare and education. Traditionally the “solution” or approach to solving this problem has always been aid or big government projects. While some of that has been successful, he felt there is an increasing understanding that we need other ways to go about this – one of which involves business. For example, small businesses and in some cases very large corporations are beginning to offer market based solutions that meet the unmet needs of these people, while making them economically viable. A classic example for this is the mobile phone industry, where small and large companies have been profitable while providing solutions that have meaningful benefits to people in remote areas. People who didn’t have access to communication now have access to financial, educational and health services through mobile phones. So it may not actually be a contradiction in terms.

An important question therefore is when does a business decide to venture into a market where the consumer’s spending prowess is significantly less? Professor Prabhu observes that the motor or the incentive for companies now to get into this for the long haul is making itself apparent. Namely, the decline of growth in the west in their traditional markets – and the rise in opportunities in emerging markets. If you look at emerging markets like Bangladesh or India, the opportunities aren’t so much in the cities where it is already saturated, they’re in the smaller towns and in the villages because that’s where so much of the population is. So the financial motor is making itself apparent and that’s why you see this move of companies into this space. Andrew Jenkins agreed in principle to this notion but added that investment in these markets had potential to generate substantial ROI, given that the market is massive and the demand for goods and services is strong. A simple justification is the World Bank’s stats of those considered living below the poverty line.

While profits and social benefits can be the drivers, the sustainability and expansion of such initiatives will be key to successfully alleviating poverty. There still are many questions to be answered but it is in these kind of conversations where solutions are born.

Author: Jarrod Vassallo
Founding member of the Poverty Alleviation and Profitability Research Group. He is also guest lecturer at the University of Sydney Business School and a PhD candidate at Cambridge Judge Business School.

Poverty Alleviation and Profitability : Can businesses alleviate poverty whilst making profits?

The very notion of alleviating poverty through profitable ventures seems a counterintuitive concept, because businesses are meant to be entities that make profits at all costs. However business is still run by human beings and most of us do care about the impact we can make on the world. Based on evidence there are 2 methods by which a business can achieve that positive impact in society and yet stay profitable.

The first and more conventional philosophy is Corporate Social Responsibility. The fundamental expectation here for a business is to create a more positive profile or perception amongst all stakeholders such as employees, suppliers, consumers and shareholders. This is achieved by investing resources in poverty alleviation or for that matter in any initiative that will impact positively on society. But this approach does not completely address the profitability angle. Profitability breeds sustainability and so CSR will only address part of the question.

The other approach is to build profitable markets amongst poor consumers. This is achieved by giving them not only what they need but also what they want. One commonly adopted model is by marketing goods that can make an improvement to living standards in an aspirational way to create the desire and action that can eventually deliver profits. One good example is Unilever’s water filtration product Pureit which has been distributed to millions of poor consumers across the world. This did not just give this consumer base access to a basic necessity but also is something that they inherently want to have.

There are numerous case studies but not much has been done to address the question of poverty alleviation in a robust manner. The Poverty Alleviation and Profitability research group will aim to answer 3 key questions –

• How different is the poor consumer to a business in comparison to any other customer and how should these differences be interpreted? 
• What are the challenges organisations face when engaging these poor segments and then sustaining their strategies profitably?
• What is being done currently and how can businesses learn from this?

As a researcher, I feel there are more questions than answers at the moment but with more and more organisations seeing the benefit in emerging markets, it is critically important now than in any other point in time to identify frameworks that businesses can implement profitably and still address the big issue of poverty.

Author: Jarrod Vassallo
Founding member of the Poverty Alleviation and Profitability Research Group. He is also guest lecturer at the University of Sydney Business School and a PhD candidate at Cambridge Judge Business School.

How to turn your idea into a successful business

Ever had one of those shower moments where you find yourself mid-shampoo completely transfixed on a brilliant idea that you're sure no one has ever, ever thought of? If you're like me you'll appreciate how running water can quickly turn into running ideas; but how exactly do you take it from cold to hot all on your own?

Trust me, you aren't the only one alone in this, there are plenty of people struggling with how to get their ideas from dream state to a steady fill of reality. We all want to be the next big entrepreneur, right? Well, what you really need is a strong network and support system to help transition your great idea from your shower to the world.

The Sydney Genesis Entrepreneurship Competition is a program run by the University of Sydney that will assist with the development of your idea and your skills as an innovator and entrepreneur, and will also allow you to make key connections within the entrepreneur community.

I was lucky enough to win the 2012 Sydney Genesis 'Best Business/Tech Startup' category for my app WeSit, a babysitting app that connects parents to trusted sitters. While I'd already built a great network around me of potential users, I didn't know how to create and deliver a product that customers would pay for. Sydney Genesis provided the network that was able to guide me along that path. My shower dream then turned from cold to burning hot after landing a $20,000 deal with BlackBerry to build WeSit!

The Sydney Genesis competition is not just beneficial to the teams that win. The opportunities of simply entering and being involved in the program are more beneficial than you might think. You may even end up following in the footsteps of last years finalist, Tom Pastro, who went on to join Australia's premiere startup accelerator, Startmate, followed by 3 months spent in Silicon Valley pitching to investors! 

Just like you, Sydney University knows launching a business is a tough feat on your own, so the Sydney Genesis Competition offers students workshops, mentoring, networking and $10,000 in cash and prizes. Workshops are focused on actionable tasks that guide you step by step through the most difficult phase - getting started. Workshops are led by a mixture of Australia's leading entrepreneurs and investors, including Kim Heras (Pushstart), Marc Lehmann (Saasu), Mick Liubinskas (Pollenizer), Niki Scevak (Blackbird Ventures/Startmate), Petra Andrén (ATP Innovations), and Whitney Komor (TheBestDay).

So, if you don't want your idea to get washed down the drain and you're ready to turn your startup dreams into reality, submit your 1 page proposal to Sydney Genesis by 5pm this Friday 16 August, 2013.

Curious about Entrepreneurship?
Check out this list of startup resources on the Genesis website

If you want to get involved in the Sydney startup scene, check out these upcoming meetups, workshops and public talks: 

• Sydney Tech Startup Meetup, Open Coffee Meetup is on next Thursday 22 Aug
• Startup focused workshops run by General Assembly are on almost every day
• Technology Entrepreneurship Lecture Series with Uber Australia is on this Friday 16 Aug
• more events...

Author: Georgia Kia, current student at the University of Sydney Business School

Bonjour everyone!

It’s been almost 6 weeks in Paris and I cannot believe that it’s almost over. No more 1-euro baguettes and eating raspberry tarts for lunchtime dessert, I think I’m starting to develop Post-Paris Depression.

*Melancholic sigh*

Since my fellow students already blogged about how beautiful and magical Paris is, let me tell you more about my internship at the OECD (Yes, it’s the one with the Chateau!).

I work at the Directorate for Financial and Enterprise Affairs (DAF). At DAF, we write papers to identify and design the best practices and policies for governments in order to keep the global markets open, competitive, and sustainable.

Did I just hear you say writing papers, isn’t that what PhD or Honours students do? Yes, and I am neither of them. Here at the OECD, interns are given so many learning opportunities and never will you be left alone in the dark. Employees at the OECD can also take free French or English classes to improve help them improve their second language (I really need to take more French classes just so I can order something else other than croissants for morning tea).

What’s even better? The 2-hour lunch break and the obligatory morning tea. It is not uncommon to see people visiting the swimming pool or local shops during lunchtime. Now that’s what you call a good work-life balance!

If I were to summarise OECD in one word it would be “diversity”. Here, not only will you meet and work with the most talented people from all over the world, but you also work on tasks that are part of a bigger picture that affect the lives of millions.

You never forget your first sight of a new city

After more than 30 hours on the road, I’d been rather disappointed by the fact that my first impressions of Paris would be clouded by an intense desire to be unconscious. We’d arrived at this city on a grey morning, with the dawn that had chased us across the northern continents just skirting the horizon. The orange sky had made the glowing web of city below us so much more poignant to behold.

This first impression has been carried with me through my five weeks here, and whenever I close my eyes and think of Paris, that is still the first image that comes to mind.

On this trip, each of us had been assigned to different internship positions, and mine was at the OECD within the Public Affairs and Communications Division. I was given my own project of analysing the readership of the OECD Observer magazine, comparing it to online subscriptions and other OECD publications. In between this, I got to attend international forums, and stare out of my office to into the Seine.

When I was first told that I would be interning at the OECD, I’d felt an equal mixture of excitement and fear. It was very daunting, so be within such a huge, influential organisation! After 5 weeks here though, I could almost say that I’m entirely comfortable. Perhaps the most enlightening realisation I’ve gained here isn’t the skills I’ve learnt, but realising that each corporation is made up of people all of whom are willing to have fun and lend a helping hand. We even have our own interdivision football championships!

After the first week, we moved into accommodations at Cite Universitaire, a collection of college houses reputed to be more beautiful than the University of Sydney. There are three wings to each floor, accessed by two spiral staircases, all very movie-esque. The common kitchens are a perfect hub for conversation, and meeting new people from all over the world, speaking all their different languages. My neighbour on the right is German, and the other is Italian!

Paris is an endlessly fascinating city. It is a maze of winding alleys and small streets that feed into wide open boulevards. Around each corner is another architectural gem, statutes of sombre marble, gleaming gold domes or piercing copper spires. To find anything, first, you have to get lost.

To be honest, this is my first trip to Europe, and first time away from home. As I lie on an endless stretch of lawn infront of the International House writing this blog, with a church spire red in the 10pm sunset piercing the blue sky, I realise that this is the beginning of a lifelong romance. What better city to fall in love with than the city of love?

17h00: Off to Sciences Po.

There are 6 of us here at OECD La Muette and we meet after work each day by the couches in the lobby to head off to Sciences Po. When my colleagues first told me to catch Bus 63 which runs along the Seine and stops right outside the University, I really had no idea what to expect. Not only does this route take us through Trocadero with a picture-perfect view of the Eiffel Tower, but we also pass Invalides, Assemblee Nationale, Musee d’Orsay and Boulevard St Germain. Who needs a tourist bus when there’s the 63…

Author: Gloy Tuchinda, current student at the University of Sydney Business School

9h00: OECD – Organisation of Economic Co-Operation Development

When I tell people that I work in a Chateau, they don’t believe me. The main entrance is through the OECD building which is connected to Chateau de la Muette. It is a modern building filled with security guards, x-ray machines and diplomats who are visiting for conferences. My employee card gives me access to all the security glass doors so I can bypass the queues and x-rays in the morning.

On my first day, I asked my colleagues ‘So how often do you get to go to the Chateau?’and after a moment of awkward silence followed by hysterical laughter they replied ‘Gloy, we’re in the chateau right now!’. Built in the 16th Century, occupied by Louis XVI and Marie Antoinnette, the site of the first hot air balloon by the Mongolier brothers, and now the headquarters of the OECD….not bad for an office.

9h00 – 17h00: Daily routine at work

My job at the OECD involves analysing current political and economic developments in different regions, with a personal focus on Thailand. Each of my colleagues work on a different country ranging from China to Peru, Lithuania to Malaysia, and the office is usually echoing with conference calls in Chinese, French, Spanish, German and even Portuguese. The role of the OECD itself is to work closely with national governments to implement policies in member and non-member countries, to promote social and economic development through addressing issues such as education, sustainability, health care systems and agriculture – just to name a few.

As an intern, the OECD provides an amazing opportunity to discover what it’s like to work for an inter-governmental organization and the people you meet here come from the most exotic cultural backgrounds and have the most incredible stories to tell. At lunch time, everyone in the office has lunch together, which either involves a picnic on the lawns in front of the Chateau, or in the cafeteria. Lunch breaks provide a great opportunity to really get to know your co-workers and understand the career path that has led them to the OECD. They all help me out in the office such as giving me tips on accessing different resources, inviting me to join them in important meetings and even sharing local secrets of what to do in Paris over the weekend (i.e where to discover life changing baguettes and gelato, the best crepe shops in Paris, the most scenic bus route to take from the OECD to uni). Words cannot express how amazing it is to be accepted into such a fantastic team, and despite 40 long hours of work each week, somehow, I still walk into the office each day feeling so proud to be part of the OECD community.

Author: Gloy Tuchinda, current student at the University of Sydney Business School

8h30: Le Metro – A Parisian version of City Rail? Us against the metro

Each morning we would face the crowd of Parisians on their way to work and getting a seat was out of the question. When you’re wedged between an accordion player and a French business man, even breathing becomes a challenge. To get to the OECD headquarters, where a few of us work, we catch the 8:30 train from Cite Universite to Notre Dame, changing to RER C (the yellow line) towards Boulanvilliers. My favourite part of this journey is between Champ de Mars and Avenue Du Point Kennedy. We pass it every single day, but somehow, this 270 degree panoramic view of the Eiffel tower, just casually chilling in the Seine, still gives me goosebumps every time.

The station is a 5 minute walk from work through the Eastern Suburbs equivalent of Paris, Arrondissement 16. We pass rows and rows of cafes and the smell of hot baguettes and croissants in the morning has become part of our daily routine into work. Usually we stop by the same patisserie every morning to order a ‘café de crème avec un pain aux chocolat’ or something to keep for lunch. BMWs, Mercedes and Jaguars are all parked along the side of the road, so close they’re almost touching. I would hate to try parallel parking in Paris.

Author: Gloy Tuchinda, current student at the University of Sydney Business School