Peter Cochrane

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Squaring the circle in business
Peter Cochrane
www.ca-global.org
COCHRANE a s s o c i a t e s
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Everything is speeding up

• Innovation
• Technology
• Computers
• Communications
• Information growth
• etc, etc

So why do we seem to be slowing down?
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Accelerating regulation control

• A huge over reaction
• Extremely intrusive
• Induces gross inefficiency
• Easily subverted
• Counter-productive
• Not suffered by China et al

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Regulatory frenzythe reaction

• Burdensome
• Superfluous
• A new form of sadism
• Repressed sexuality
• A desire to dominate control

not very popular then!
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The regulation industry a 1000 over reaction
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So we live in a society obsessed with risk!
Where is the opportunity analysis?
What about the upside/downside ratio?
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We live in a society obsessed with regulation!
Where is the freedom?
Where is the personal responsibility?
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CEOs Dilemma - regulation compliance

• We now assume total responsibility for the
  accuracy of all financial reports/internal data
  controls
• Sarbanes Oxley USA - 2002
• Bill 198 - Canada
• CLERP 9 - Australia
• Basel II

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CEOs used to worry about
RoI Return on Investment but times changeand
now RoI Risk of Incarceration
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RoI The dark side of the force

• Wall Street Journal June 24, 2005
• U.S. Sentencing Commission increases potential
  prison time for corporate wrongdoers
• Since 2002, the US Corporate Fraud Taskforce has
  secured gt700 convictions /guilty pleas involving
  1299 individuals

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Impact

• Loss of reputation and market cap
• AIG wiped out more than 35Bn in market value and
  suffered degraded credit rating
• Arthur Anderson went out of business
• Enron and Worldcom bankrupted

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Automation - we have to - get people
out of the loop - remove temptation -
remove fraud opportunity

• Gartner (2005) - SOX
• controls intensely manual
• most orgs intend automating
• AMR (WSJ 2005) - SOX
• Automation removes a large of people realizes
  a big-bang-for-buck

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Business reporting automation

• Eliminates fraud opportunities
• Everyone playing by the rules
• Improves investor confidence
• Gets us all closer to the truth!

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Estimated compliance technology growth
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Compliance now looks like accountancy!
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So, regulation and compliancy doesnt mean we
have to stop thinking for ourselves!
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Change is not optional!
If we continue doing what we have always
done.. We are going to keep getting what we
have always got!
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Opposing Forces
Virtualization
Compliancy
Freedom
Security
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Opposing Forces
Agile Adaptive Innovative Responsive Efficient Low
Cost
Virtualization
YES if you stay with the old ways of working
the old technologies!
Where youd like to be
Compliancy
Freedom
Where you are!
Torpid Rigid Rule Bound Process
Led Inefficient High Cost
Security
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So how do we get to be these things?
Dictatorship Centralization Hierarchy Controlism M
icro-management Rule bound Risk
obsession Today/yesterday focus Corporate
liability Personal liability Lack of ownership
Torpid Rigid Rule Bound Process
Led Inefficient High Cost
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Caveats?
Dictatorship Centralization Hierarchy Controlism M
icro-management Rule bound Risk
obsession Today/yesterday focus Corporate
liability Personal liability Lack of ownership
If you are making sausages all this works
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So how do we get to be these things?
Leadership Decentralization Zero
hierarchy Devolution Micro-management Rule
changing Opportunity obsession Tomorrow
focus Corporate opportunity Personal
opportunity Ownership
Agile Adaptive Innovative Responsive Efficient Low
Cost
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Caveats!
Leadership Decentralization Zero
hierarchy Devolution Micro-management Rule
changing Opportunity obsession Tomorrow
focus Corporate opportunity Personal
opportunity Ownership
In a fast changing, fast paced sector, we need
all this
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BIG predictions
Positioning systems gtgt Communications
SensorNets gtgt All Nets PodCasting gtgt
TV Radio HomeCare gtgt Hospital Care
Home Creativity gtgt Office Creativity
Robots gtgt People Machine Decisions gtgt
People Decisions We will become a part of the
network.
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BIG predictions
That means we will have to build in
more flexibility, adaptability, intelligence,
usability, and much smarter interfaces!
Corporate IT Depts are going the same way as the
typing pool . for exactly the same reasons!!
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So what of the technology?
A subset of devices and apps that do the
jobie give a good ROI
Firewall virus protection Most likely no
IT or Security Dept! Network and all support
services outsourced!
Its personal, up close, and responsibility lies
with the individual.. Of the user
Reliable global network access on the move to
people, sites, companies
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Thinking different
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Self reliance today
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Self reliance today
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Think wireless not wired!
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The dream.seamless access!
Cameras - VOIP - Sensors - Positioning
3m 30m
3km Ubiquitous
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WiMax
2.5/3G

An ecological view.Users Rule!
wifi
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Finding a signal
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Driving around London
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Driving around London

• 30,000 WiFi nodes
• 8,000 open

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Driving around the UK
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Driving around the UK

• 3,000,000 WiFi nodes
• 600,000 open (23)

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WiFi is never more than 3 blocks away!
32 Free sites 63 Low cost 5 Rip off hotels
gt70
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Connecting in the outback
8 Mbit/s
1 Mbit/s
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Mountain View GoogleNet
a new threat to the Telco???
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Getting more bandwidth today
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Device security today
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People Tracking Today
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Networking today
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Networking today
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Recording backing up - save everything
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Recording backing up - save everything

• In your office
• In your home
• In your case
• In your pocket

At least 3 copies in multiple locations
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We now live in a world of the infinite how
do you find and how do you choose?
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In an increasingly mobile terminal people
environment we have to think finding rather than
filing.
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(No Transcript)
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A different kind of search engine
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A different kind of search engine
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Appropriate technology
the essential toolkit

• Dont use technology because it is fashionable!
• Use technology because it gives a good ROI

• Ignore technology at your peril!
• Watch other sectors
• Be prepared to experiment

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Changing attitudes and expectations
Technology
New Entrants Pushing limits Experimenting Demandi
ng Exploring
Existing Workforce
Technology Capabilities
Trying to keep up Trying to change Struggling Giv
en up Going to die
Time
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IT Capabilitiesyoung and old
100
Young People
IT Capable
Managers
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People
Time
2005
1985
2025
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Where the action always is!
Echo- System
Business
Hot Spot
People
Technology
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What we should be focused on
I
deas nnovation nvestment
Return On
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What goes wrong?

• Technophobia
• Upfront costs rule
• Networking is poor
• Sharing - non existent?

And yet we have the technology and
experience to get it right!
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In the old world information and knowledge
meant control power
In the new world sharing information and
knowledge means influence
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The biggest problems we face?
Not technology! Not operational? The business
model/thinking is wrong People find it hard to
change
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Remember
If you are going to fail - then fail fast!
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Andsurvival isnt mandatory
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A world of opportunity risk.
Thank you, cochrane.org.uk ca-global.org
COCHRANE a s s o c i a t e s