The case for Malaysia to change and how enterprises need to respond to the changing environment

1. Innovation and Change for Business Sustainability Nik Mohd Hasyudeen Yusoff CEO, Inovastra Competitiveness Through Innovation and Strategy

3. Source: NEAC

4. Source: NEAC

5. Source: NEAC

7. Source: NEAC

8. Source: NEAC

9. Source: NEAC

10. Source: NEAC

11. “We were successful in the past in transforming the economy from agriculture to industrial-based. We now have to shift to new economic model based on innovation, creativity and high value-added activities. Only then we will be able to remain relevant in a competitive global economy” 2010 budget speech

12. Source: NEAC

13. Key Strategic Thrust Relating to Innovation Thrust 1 – Move the economy up the value chain Increase the value add of manufacturing, services and agriculture Generating new sources of wealth in technology and knowledge intensive sectors Expending the market for Malaysian product and services

14. Key Strategic Thrust Relating to Innovation Thrust 2 – To raise the capacity for knowledge and innovation and to nurture First Class mentality Improving access to and quality of education system Nurturing top quality research and development, and scientific and innovation capability

16. Needs to serve customers

17. Needs to compete

18. Creates value and return to shareholders and stakeholders

19. Operates in business environment that keeps on changing

20. Is affected by global developments

22. How Does A Business Create Value? 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

23. Doing Nothing About Risk is Definitely Risky In ensuring business sustainability, the appreciation of risks and mitigation of risks at the strategic level is very important Key strategic risks are: Demand risk Competitive risk Capability risk

24. Politics Your Competitors Your Competitors Economy Your Customers Your Customers Your Customers Society Technology Your Business Your Suppliers Your Network Partners Environment Changing business landscape and risk profile

25. Politics drive government policies which would affect the economy and business climate Global and regional political developments add to the complications of local politics How far would the G-20 initiatives would affect you? Changing business landscape and risk profile

26. The inter-linkages between economies could not be denied anymore and any changes in other places would affect the local economic conditions The globalisation and regionalisation of business require businesses be involved in more than one economic regions Do you think the AEC 2015 will affect you industry and your business? Changing business landscape and risk profile

27. Rights Health Education Security Distribution of wealth New lifestyles Demography Which one of these elements would affect you business most? Changing business landscape and risk profile

28. Technology has been one of the factors that levels economies and markets Enables new business Destroy existing business Allows different ways of running businesses Would Web 2.0 makes your business model obsolete? Changing business landscape and risk profile

29. The Green Economy would be more visible in the years to come Rules and regulation, domestically and in the market you serve, would require businesses to assess the business models Is your business already affected by environmental issues? What will happen post Copenhagen? Changing business landscape and risk profile

30. Don’t be caught like a frog! Changing business landscape and risk profile

31. Changing business landscape and risk profile Turbulence is the unpredictable and swift changes in an organisational internal or external environment that affects its performance A business arrives at a strategic inflection point when its old strategy no longer works and must be replaced by new one if it want to ascend to new heights Strategic Inflection Point Level Of Chaos Time

32. Ability to Respond Swiftly to the Change is Critical Giving up the illusion that you could predict the future is a very liberating moment. All you can do is to give yourself the capacity to respond to the only certainty of life – which is uncertainty. The creation of that capability is strategy. Lord John Browne, Group Chief Executive of BP

33. Network-Centric Innovation

34. Network-Centric Innovation

35. Network-Centric Innovation

36. Services and it’s Economic Significance Trade in services grew by 18% compared to 15% in good in 2007 However, trade in services in only 19% of total world trade WTO International Trade Statistics 2008

37. Services and it’s Economic Significance Trade in commercial services in 2007 was highly concentrated in North America, Asia and Europe (representing 15, 29 and 50 per cent respectively of total commercial services trade). WTO International Trade Statistics 2008

38. Services and it’s Economic Significance Since the 1990s, the volume of exports of EU goods and services increased in a broadly similar pattern, both by about 6.5% per year on average. Consequently services maintained their share of roughly 22% of overall international trade during this period. European Union international trade in services, Analytical aspects

39. Moving Forward Malaysia need to move from thinking and talking to DOING Sustainability of business depends of the ability to create value in the ever changing environment Innovation needs brainpower including those outside of the organisational wall Services would be the key contributor to our economic growth