Whose knowledge is it anyway

1
Whose knowledgeis it anyway?

• Roy Green (NUI Galway)
• Chris Coughlan (HP)
• NCPP conference, November 28 2003

2
The big picture

• Europe must become the most competitive and
  dynamic knowledge-based economy in the world by
  2010
• Ireland is committed to this objective. But what
  is it, and how will we know if it has been
  achieved?

3
The pesky details

• Is a knowledge-based economy defined by the
  production of knowledge-intensive goods and
  services?
• Or by the consumption and diffusion of these
  knowledge-intensive goods and services through
  its economy?

4
Dismal science

• Mainstream economic models do not give a useful
  answer because they treat knowledge and technical
  progress as exogenous
• But our understanding has been increased by new
  theories of growth and innovation

5
World trade in highly RD-intensive industries,
1990 and 2000 ( of GDP)
6
Average annual growth in multi-factor
productivity compared with OECD average, 1995-1999
7
So far, so productive

• But is this enough to establish the basis for a
  sustainable knowledge-based economy in Ireland?
• What if we view Irelands success from a
  different perspective the generation of
  knowledge and its application

8
Technology balance of payments, 1998
9
Total researchers (per thousand labour force),
1990 and 2000
10
Investment in knowledge as of GDP, 1991 and
1998 (RD, Software, Higher Education)
11
Where to next?

• The future lies in the development of systems of
  innovation at the national and regional levels
• These systems are driven by technical,
  institutional and organisational innovation
  organisations moving up the value chain

12
Moving Up the Value-Chain?Increasing
Value?Value-add?What does all this mean?
Dr. Chris Coughlan Hewlett-Packard Information
Society Commission
13
Irelands Knowledge Economy
The Nine Economies Increasing Complexity

• Wave Interactions - Three Main Economies - Six
  Hybrid Economies
• agricultural agriculture
• industrial industrial
• digital digital

14
The Celtic Tiger and Beyond!
When the pace of change outside an organisation
becomes greater than the pace of change inside
the organisation the end is near John R.
Walter, Former President, ATT
15
KNOWLEDGE ECONOMY
2010
Transformation Strategies
Increasing Value
1960s
Connectivity Complexity - Convergence
16
2010
TRANSFORMATION STRATEGIES
Increasing Value
Shared Services/ICT/BioMed PPF (planned stable
economic environment) Education Quality
Skilled Manufacturing Quantity Semi-Skilled
1960s
17
2010
Celtic Tiger
TRANSFORMATION STRATEGIES
Increasing Value
Shared Services/ICT/BioMed PPF (planned stable
economic environment) Education Quality
Skilled Manufacturing Quantity Semi-Skilled
1960s
18
2010
Celtic Tiger
survive
TRANSFORMATION STRATEGIES
Increasing Value
decline
Shared Services/ICT/BioMed PPF (planned stable
economic environment) Education Quality
Skilled Manufacturing Quantity Semi-Skilled
1960s
19
The Knowledge Economy
2010
thrive
Celtic Tiger
survive
TRANSFORMATION STRATEGIES
Increasing Value
decline
Shared services Software Electronics PPF (planned
stable economic environment) Education Quality
Skilled Manufacturing Quantity Semi-Skilled
1960s
20
The Knowledge Economy
TRANSFORMATION STRATEGIES
2010
??
thrive
Celtic Tiger
survive
TRANSFORMATION STRATEGIES
Increasing Value
decline
Electronics, Software, Shared services PPF
(planned stable economic environment) Education
Quality Skilled Manufacturing Quantity
Semi-Skilled
1960s
21
The Next Transformation StrategiesMove up the
Value-Chain!

• Create High Value-skilled Employment
• Create a Research Environment which when
  industrialised will yield increase value
• Inhibitors
• Offshore Outsource
• Time lag from
• Theory - Technology - Application - Acceptance

22
How do we tackle the Inhibitors?

• Define what we mean by value and value-chain
• Develop a practical methodology for moving up the
  value-chain
• Identify an interim strategy needed in-between
  the lag from Research to Commercialisation
• Develop Indigenous Global Marketing and Sales
  Organisations

23
the Real Economic Strategy

• Continue to Increase GDP
• Close the gap between GDP and GNP
• Wealth Generation
• Wealth Retention
• Wealth Control
• Multiplier Effect

24
Moving Up the Value-Chain?Increasing
Value?Value-add?What does all this mean?
25
Vectors of Value
26
Vectors of Value
Value-Systems
27
Value-Systems

• Individual
• Value-chain (horizontal)
• Value-chain (horizontal vertical)
• Collective Network
• Value-web (integrating value-chains)
• Value-eCosystem (value-clusters)

28
The Individual Value-Chain Opportunity or
Problem?
Manufacturing
Sales Support
R D
Marketing
Shared Services
29
The Collective NetworkOpportunity or Problem?
Opportunities
SMEMNC
Manufacturing
Sales Support
R D
Marketing
Shared Services
30
Vectors of Value
Value-Systems
Value-Types
31
Value-Types
Value-Invent
Value-Control
Value-Capture
Customers
Value-Optimise
Value-Wrap
Value-Add
32
Value-Types

• Value-invent creating new potential value
• Value-capture realising value
• Value-optimise optimising value/achieving new
  efficiencies
• Value-add adding to current responsibilities
• Value-wrap enhancing value
• Value-control extending value beyond the
  boundaries
• (outsource-offshore)

33
Vectors of Value
Value-Systems
Value-Types
Value-Entities
34
Value-Entities

• Value Output/Value Transfer/Value Trading
• Products Services Utilities Next Value
  Entity?

35
New Value Entities and Outputsin a Knowledge
Society
PRODUCT -------- SERVICES -------- UTILITIES ---
??
Information Content
Data
Information in Context ? ?
AUTOMATED ------ INFORMATED ------ KNOWLEDGE
36
The Next Wave Transformation Strategies

• The Knowledge Economy will Emerge
• Leverage the synergies of a complex of mixed
  economies
• Work the value vectors on existing industries
• Interim integration strategy (value-chains/value-c
  lusters)
• Develop international marketing and sales skills
• Identify the key emerging technologies
• Fund their research
• Efficiently commercialise
• Develop global markets (International Marketing
  Sales)
• Quick go-to-markrt
• Understand the emerging new value entity
  characteristics
• Identify the emerging new value vectors
• Then start all over again!!
• Create the environment for the wave beyond the
  knowledge economy

37

• Conclusion

The Empires of the Future are the Empires of the
Mind - Winston Churchill
Dr. Chris Coughlan