In order to deal with the converging forces of innovation and economic globalisation, economies must become more adaptive, insightful, intelligent communities of practice by focusing on harnessing Informed Navigation

1. An Adaptive Response to the
Converging Forces of Innovation and
Economic Globalisation
March 2010
Neil Movold
Managing Director
SB2 International Ventures Limited
Best way to Predict the Future, is to Create it!

2. 1.0 - Today’s Challenges

3. New Zealand and the Global Economy
“To survive in a world of shrinking economic distance, New
Zealand business must organise itself in complex systems
spanning many countries, tapping into differences in costs, skill,
resources and tastes to maximise overall returns.” (source: Office of the
Minister for Economic Development – Advancing Economic Transformation, 2007)
“Enhance global knowledge transfer by assisting New
Zealand firms and industries to locate, transfer and
absorb new knowledge and technologies from
overseas.” (source: Office of the Minister for Economic Development –
Advancing Economic Transformation, 2007)
“New Zealand’s vision need to be firmly connected to the
global economy in ways that are in the best long-term
interests of all New Zealanders. Achieving this will come
about through strengthening connections between local
businesses and the global economy. This needs to be done
through (1) more sophisticated and integrated in-market
support, (2) greater fostering of international investments
and partnerships, and (3) promoting increased collaboration
offshore.” (source: Export Year 2007 – Platform for the Future)

4. Need to Manage Innovation Ecosystem
“Given our unusual RS&T funding profile... ‘low rate of collaboration and
ideas flowing from universities and research institutions to business’… this
is not compatible with a future in which New Zealand will have to face
many challenges to improve its productivity and maintain its relevance to
the world.” (source: Office of the Prime Minister’s Science Advisory Committee, ‘Improving translation of
publicly funded research for economic benefit’, Sep 2009)
“One reason that improving the commercialisation of science is challenging is
that the process of commercialising science is complex, involving numerous
connections and relationships among participants and institutions. That is
why it is referred to as an ‘innovation ecosystem’. (source: ‘Standing on the shoulders of
science: Getting more value from the innovation ecosystem’, The New Zealand Institute, Dec 2009)
“The issue of going to scale is critical for a small country far from its potential
markets. Consideration must be given to what stage in the innovation chain should
international partnering opportunities be sought on the way to market. (source: Office of the
Prime Minister’s Science Advisory Committee, ‘Improving translation of publicly funded research for economic benefit’, Sep 2009)

5. The Evidence-Based Policy “Paradox”
Policy is about solutions for the
Future – looking forward
We can project trends going forwards… but
all trends eventually change over time

6. The Evidence-Based Policy “Paradox”
But conventional “evidence” is about
the Past – a typical economic
development approach

7. Diversity of Opinions
Everyone involved in the Paradox resembles one of these
partially sighted persons

8. 1.0 - In Summary
• The impacts and challenges of Economic
Globalisation are strongly linked with a country’s ability to
embrace Innovation
• The Evidence-Based Policy Paradox is alive and well!
• There are a myriad of opinions around what these
impacts and challenges are and how to deal with them that is
leading to various silo approaches and inadequate
steps forward

9. 2.0 - But Wait! … the World
is Evolving and Getting
More Complex!!

10. Turbulent Times and Many Forces at Play!
Globalisation
Regulation
Competition
Customer Demand
Technology
Market Changes

11. The Need for Adaptability

12. Influence Has Been Revolutionized
A large portion of new ideas
and formal collaborative
relationships come from
external contacts

13. The Massive Filtering Problem
Even once found, few systems currently offer clues
about an external contact’s trustworthiness,
communication skills or willingness to help
What People Value in Expertise:
o Trustworthiness
o Communication Skills
o Willingness to Help
o Experience
o Currency of Knowledge
o Awareness of Other Resources
o Extent of Knowledge

14. Findability as Alternative to Search is Now Key!
The cost of not finding the right people
and information is too great!!

15. 2.0 - In Summary
• While time is spent assessing the current economic
situation, the world is evolving with new realities and
becoming more complex
• Many forces and changes in society are outpacing the
ability to educate for change using historical approaches
• Growing external networks and realm of influence are
revolutionizing business and economic growth
• Traditional search and introduction approaches to finding
the most appropriate external contacts are becoming
inadequate – Findability is now the key!

16. 3.0 - How to Approach a
Solution?

17. We are Dealing with Complex Times
Complex times require a toolkit that allows for:
o managing high levels of uncertainty
o understanding intent in a rapidly changing environment
o doing more with less
o making decisions in inherently complex environments
o managing knowledge critical to the organisation and nation
o evaluating impact of initiatives
o making invisible issues visible

18. Solving the Paradox
It is NOT about:
Predicting the future based solely on
preconceived ideas and the past
It IS about:
Exploring possibilities for the future to
ensure that strategies are robust

19. Solving the Paradox
It is NOT about:
Just accumulating, extracting and recording what
everyone knows
It IS about that… AND:
Looking ahead, beyond usual timescales and
looking across, beyond usual sources while
fostering innovation and Communities of
Practice to harness intangible assets

20. Harnessing Collective Intelligence
The trends are undeniable and the opportunities compelling
“No one knows
everything, everyone
knows something...“
Pierre Lévy (1997)

21. We Cannot Ignore Technologies Available to Us

22. Adjusting to the 21st Century Society

23. It’s Not the Technology!
“... it’s the emerging social practices”
Howard Rheingold

24. Approach Needs to Embrace Legacy

25. The Cost of ‘What We Don’t Know, We Don’t
Know”
“People had to be aware of their
lack of relevant knowledge and
be prepared to explore the area of
their ignorance with suitable
questions and help from other people
in similar positions.”, source: Reginald Revans
“… the lackof efficient and
reliable search often results in
delayed decision, quality of work
and missed opportunity which
does not get classified in the right
bucket.”, source: Search2.0

26. 3.0 - In Summary
• Complex times requires a Toolkit approach
• The primary focus must be one of embracing social practices, with
secondary focus on the evolving interconnection of these practices and
technology
• We must break free of the dependency on pre-conceived notions
• The focus must be on looking ahead, fostering communities of
practice, while harnessing intangible assets
• Awareness of the cost of the “what we don’t know, we don’t know”
culture
• Harnessing collective intelligence, a transdisciplinary approach is
necessary to take into consideration the complexity of the problem,
integrating understandings, approaches, data, methods, and arguments
from more than one discipline

27. 4.0 - Pulling It All
Together – Informed
Navigation

28. Building Competitiveness & Innovation
It is about:
o Embracing complexity
o Knowing that there is no one right
answer
o Working within the contours of the
Organisation, the Nation and the World
o Knowing that context is key

29. Its All About Informed Navigation
Informed Navigation is not about searching, but finding; not about access,
but sharing. Informed Navigation recognizes that human beings do not
seek and utilize information as individuals, but as communities.

30. Value of Informed Navigation
o Targeting the right knowledge and insight to
develop a finely-tuned strategy
o Providing a deep, forensic analysis of internal and
external contacts and opportunities that would not
otherwise be found
o Mapping a highly qualified value network of
synergistic partners, development opportunities and
funding
o Providing in-market support, advice and
engagement, going past introductions to
complement and extend public sector approaches
o Sharing risks and rewards, co-creating
accelerated and sustainable success

31. Supporting Two Converging Forces
Supporting Structures and Systems -
harnessing and fostering the convergence of Open Innovation and Economic Globalisation,
while firmly grounding both to the ability to access Resources, Capital and Pathways to Market

32. Creating a New Reality for Success
This Value Creation comes together by understanding the Purpose
and Nature of International Organisations, Markets and Society and
mitigating risk by ensuring that activities are Extending and
Complementing existing programmes

33. Identifying Value Creating Opportunities

34. Multi-Sector Integrated Approach
This approach provides the following measures of success:
• Investing in skills and knowledge
• Increasing international business connections
• Investing in infrastructure for a stronger economy
• Lowering business costs
• Strengthening the environment for innovation
• Forming key partnerships to strengthen the economy
• Increasing business exports and international readiness
Three Key Stakeholder Groups:
1) Public Sector
2) Private Sector
3) Academic / Research
Three Core Drivers for Success:
1) Enhance Collaboration
2) Drive Economic Growth
3) Accelerate International Success
Business influencing / guiding Public and
Academic/Research Sector support

35. Multi-Layered Stakeholder Engagement
This approach and focus spans across countries

36. International Co-Creation of Value
Facilitating and managing the “docking” of
selected value network partners and
resources with the competencies to fit
an organisation’s individual needs
e.g. Research
&
Development
(Academic e.g. Business
e.g. Logistics Sector)
Services Services In- Market Partners
(Private Sector) (Private Sector) and Resources
SOLUTION: (Public, Private and Academic
Organisation’s / Research Sectors)
International
Readiness and
e.g. Market e.g. Financial
Success
Analysis Services
(Public Sector) (Private Sector)
e.g.
Manufacturing
Facilities
(Public Sector)
Domestic Partners and
Value occurs by mitigating the risks created by an
Resources individual partner’s bounded areas of focus and expertise
(Public, Private and Academic /
Research Sectors)

37. The International Expressway
On Ramps = Government, Incubators,
Investors, Organisations,
EDAs, Academic / Research, etc.
Off Ramps = License, Trade, Capital Markets,
Entry / ROI
Market Access and Growth, Investment, Gateway
Physical Presence, Partnerships etc.
Entry / ROI
Gateway

38. Where Should We Be Looking For Off Ramps?
Regions in the Sector Synergies / Niche Market Opportunities
World which have: Sector Synergies / Niche Market Opportunities
BRAINS + MONEY + CULTURE
Culture
 Demand-based, Outward Focused Innovation
 Entrepreneurship has Deep Roots
 Increased Speed (commercialisation, innovation)
Money Brains
 Improved Scope
=  Scalability
 Multi-dimensional Innovation
 They “Huddle Well”

39. These Regions are Intelligent
Communities of Practice

40. Why Are They Different?
Intelligent Communities of Practice:
• Promote awareness and collaboration
• Strong levels of trust and integrity
• Identify and leverage high-value individuals
• Share best practices
• Stable and diverse economic growth
• Have superconductivity of connections
• Produce unintended consequences
Assumptions:
• Learning is fundamentally a social phenomenon
• Knowledge is integrated in the life of communities that share values, beliefs, languages, and
ways of doing things
• Real knowledge is integrated in the doing, social relationships, and expertise of these
communities
• The processes of learning and membership in a community of practice are inseparable
• Knowledge is inseparable from practice
• It is not possible to know without doing. By doing, we learn.
• Empowerment – or the ability to contribute to a community – creates the potential for
learning

41. Intelligent Community Indicators
Source: John Jung, Intelligent Community Forum (www.intelligentcommunity.org)

42. What Makes These Communities Successful?
They actively engage in “Future-Proofing” – Creating Intelligent
Futures and building on a new economy with the following elements:
1. High Quality INFRASTRUCTURE
2. Exceptional EDUCATION creating, attracting and sustaining SKILLED WORKERS
3. Attracting INNOVATION and CREATIVITY
4. Building on COLLABORATION and inspiring Superior LEADERSHIP
5. Effective and stable GOVERNANCE
6. Excellence in ARCHITECTURE and URBAN DESIGN
7. Nurturing CULTURE and DIVERSITY
8. Attracting RISK CAPITAL, Incubating and Commercializing
9. Promoting DIGITAL INCLUSION
10. Ensuring SUSTAINABILITY
11. Ensuring HEALTH and SAFETY
12. Effective MARKETING and ADVOCACY
Source: John Jung, Intelligent Community Forum (www.intelligentcommunity.org)

43. 4.0 - In Summary
• The problem is complex and there is a necessity to embrace the
contours and contexts of its complexity
• An Informed Navigation approach provides needed knowledge,
insight, engagement and influence
• Informed Navigation provides a key support and engagement
mechanism for the two converging forces of Open Innovation and
Economic Globalisation
• Value creation is achieved through a multi-sector integrated
approach, recognising the need to understand the relationships
between resources
• Domestic efforts to deal with the complex problem cannot be isolated
from international activities, which should be centred around engaging
Intelligent Communities of Practice – parallel activities must occur!

44. 5.0 - Discovering and
Understanding Relationships

45. Flow of Discovery
Discovery is less about predicting precisely
right about what someone wants
It is more about the entire flow of discovery,
with all the hits and misses

46. Co-Creating Value Through Flow of Discovery
1
2
3
4
5
6 8
7

47. If People Were Perfect
If people were perfect, we wouldn’t need
to collaborate – we would just clone!

48. The Necessity – Understanding Relations
Between Resources (Contours & Context)

49. Problem of Two Separate Worlds
Intangible assets and human interactions represent 50-70% of
business value and activity, yet management practices are
poor to non-existent
THE PROBLEM: Human interactions and business transactions
are treated as two separate worlds
Source: Intangible Asset Magazine, Jan 2009, Accenture 2004

50. Utilizing Tangible and Intangible Assets
Transactions
Roles Deliverables
Utilize Assets Realize Value
Tangible and Intangible Assets
Transactions
Transactions
Roles Deliverables
Roles Deliverables
Utilize Assets Realize Value
Utilize Assets Realize Value
Tangible and Intangible Assets
Tangible and Intangible Assets
Participants in a Value
Network, either individually or collectively, utilize their tangible
and intangible asset base by assuming or creating roles that convert those assets
into more negotiable forms of value that can be delivered to other roles through the execution
of a transaction. (Source: Verna Alee, ValueNetworks.com)

51. The Informed Navigator’s Value Network

52. 5.0 - In Summary
• Findability is more about the entire flow of discovery than precision
predictability
• The flow of discovery can be harnessed to co-create economic
value and potentially unpredicted new value creation
• It is a necessity to understand the relations between resources in
the flow of discovery, with particular focus on the various contours and
contexts involved
• Discovering the tangible and intangible assets utilised between
resources will bridge the gap between human interactions and business
transactions
• Informed Navigation centres its strength around the relationships
necessary for fostering co-creation of more negotiable forms of value

53. 6.0 - An Action Learning
Case Study

54. Intelligent Communities of the World
Nearly 90 cities and regions around the world are officially recognized as Intelligent Communities
Source: Intelligent Community Forum (www.intelligentcommunity.org)

55. Case Study: Why is it Canada’s Technology
Triangle (CTT)?
Diverse. Innovative. Entrepreneurial.
Creative. Enterprising.

56. Case Study (CTT): World Class Academic / Research
Institutions
University of Waterloo (UofW) Wilfrid Laurier University (WLU)
• World’s largest Mathematics / Computer Science Faculty • Canada’s second largest Business and
• World’s largest Co-operative Education Program (12,000+) Economic School
• Canada’s largest Engineering School – fully Co-op • Schlegal Institute of Entrepreneurship
• No. 1 reputation ranked University in Canada • Largest Business Co-Op Program
• One of Canada’s most research intensive Universities • 12,000+ students
• Spins off 25% of all technology start-ups in Canada
• Policy 73 – You Make it, you Own it, end of story!
• New School of Pharmacy – 1st in decades in North America Conestoga College
• Centre for Entrepreneurship, Business and • Highest ranking Polytechnic Institute in
Technology – MBA in Entrepreneurship Ontario for 9 consecutive years
• 25,000+ students • 83,000+ students
On a regular basis, Microsoft hires more Over 150 Research Institutes, many world
graduates from UofW than from any other
institute in the world renowned, including:
Bill Gates’ only Canadian visit on recent North • Institute of Quantum Computing
America University tour was to UofW on 21st • Perimeter Institute of Theoretical Physics
February, 2008
• The Centre for International Governance Innovation (CIGI)
• Giga-to-Nano Electronics Laboratory
University of Guelph (UofG) • The Centre for Wireless Communications
• One of Canada’s most research intensive Universities • Waterloo Centre for Automotive Research
• Largest MBA in Agriculture in North America • Schlegel Centre for Entrepreneurship
• World leader in agriculture and bio-science research • Guelph Food Technology Centre
• Understood to patent more bio-science patents than any other research • Academic Council on the United Nations System
institution in the world Over $344 million in R&D.
• College of Biological Science – only one of its kind in Canada
• 18,000+ students

57. Case Study (CTT): A World Class Eco-System Evolving

58. Case Study (CTT): Tapping Into the Ecosystem

59. LignoTech is a bio-composites company based in Ashburton, New Zealand
SB2 facilitated a 3 day intense in-market visit to Ontario in July 2009
Their in-market objectives:
1. To identify a location to establish their North American Headquarters
2. To identify a location to establish a Centre of Excellence and Pilot Plant
facility
3. To identify opportunities to raise capital (USD$5 to $8 million) to deal with 1.
and 2.

60. Harnessing Informed Navigation - Down to
Business!
30+ Multi-Sector Organisations
40+ Decision Makers / Influencers
Not a Show and Tell visit!

61. Summarising

62. Evidence Based Paradox!
Collective Intelligence
Findability is Key!
Getting on planes … failing!
Understanding Relations
Innovation is Co-Created!
Engaging Communities of Practice
Culture
Money Brains
Knowledge and Insight

63. How Can This Work?
Behaviour, habit & culture changes
always come first Culture
Monetization is a possible consequence Money Brains
(not a starting point!)
Every large and engaged audience can
be turned into economic value
Attract the right people by providing
relevant content with context
Get and hold their attention – build trust
Think Followers not Users
Offer added values to convert followers and
intangibles into currency

64. Start Simple With Small Steps!

65. Untap the Potential

66. Inventing the Future!

67. Neil Movold
Managing Director
neil@sb2ventures.com
www.sb2ventures.com

68. APPENDIX:
Understanding the
Tangibles and Intangibles

69. Research and Innovation
Research is the transformation of money into
• Knowledge new to the offering
• Knowledge new to the company
• Knowledge new to the industry
• Knowledge new to the world
Innovation is the transformation
of knowledge into money
“The traditional focus on direct support to R&D has been reduced and more
attention has been given to improving market and systems
mechanisms for sustained innovation performance” (OECD)

70. True Innovation
True innovation is not the
making of novel units of
output but the designing and
creating of new markets
through service provision
Source: Steve Vargo, sdlogic.net

71. Value is Always Co-Created

72. Is It About Open Innovation?

73. Open Innovation means that Companies (or Countries / Individuals) should make
much greater use of external ideas and technologies in their own
business, while letting their unused ideas be used by the other counter parties
(Cross-borderly).
Source: Chesbrough, 2006

74. Enterprise Behaviours to Open Innovation:
• Networking
• Collaboration Knowledge can only
ever be volunteered:
• Corporate Entrepreneurship
• IP Management it cannot be conscripted
• Research & Development
Open Innovation Issues:
• It’s really uncomfortable (generational
issue)
• Governance, control
• What is the asset?
• Shared assets
• Openness (tools, content, process)
• Vulnerability
Collaboration
Sensemaking
Knowledge
Ideation Insight
Collective Intelligence
People + Interest

75. Why is Insight Important?

76. The “Ah Ha” Moment
Insight – 2 Types
1. As seen from Cognitive Science Community
• To name the process by which a problem solver
suddenly moves from a state of not knowing how
to solve a problem to a state of knowing how to
solve it
• Complex, deep, qualitative, unexpected, and
relevant
• A Moment of Enlightenment or
Spontaneous Insight
2. As seen from Information Visualisation
Community
• An individual observation about the data by the
participant, a unit of discovery
• An advance in knowledge or a piece of
information
• Knowledge Building Insight

77. Insight and Units of Knowledge
Insight as knowledge and information is more or less units of
Knowledge
Partial
Situated Tacit
Explicit Scientific
Intuition Living

78. Lack of Insightful Decisions

79. Tacit and Explicit Knowledge are Inseparable
“While tacit knowledge can be possessed by
itself, explicit knowledge must rely on being
tacitly understood and applied.
Hence all knowledge is
either tacit or rooted in
tacit knowledge. A wholly
explicit knowledge is
unthinkable.”
Source: Michael Polanyi “Knowing and Being”

80. The Swing in Approach
Source: The Gilbane Group

81. Apprehending the Inner Nature
Insight is the act or result of apprehending the
inner nature of things or seeing intuitively
Source: Websters

82. Informed Navigation: Different Perspectives
Perspectives filter an information space
according to particular situations
Perspectives A and B preferentially
select different types of resources and
relations
Source: Mark Gahegan, University of Auckland

83. Informed Navigation: Remembering Situations
of Use
Same Resource
resource
Different Situations
Source: Mark Gahegan, University of Auckland

84. Collaboration Teaches Context
“Human collaboration is what wraps
context around and within a knowledge
element/object”
Source: Richard Close

85. Combining Tangibles and Intangibles
Concepts
Tasks Knowledge
Resources
Nexus
Places
Tools
People

86. Intangibles are Real
They are real assets that accumulate
as a result of specific observable,
manageable activities
They are real negotiables that
can be traded for other tangible and
intangible value
They are real deliverables
that build relationships