CYBER GOLD RUSH

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CYBER GOLD RUSH!

• Turning Knowledge into Gold
• Alan Cook Heather Duggan
• Institute of Value Management Australia
• October 2000

2
Cyber Gold Rush!

• Professional Practice becomes Competitive
  Business
• Demise of the Middleperson
• The Internet as Smart Knowledge System
• Life-long Learning or Radical Redundancy
• The Digital Divide

3
Professional Practice vs Competitive Business

• Law, accountancy, education and other practices
  are now looked on as businesses instead of as a
  profession. Practices that once had a place for
  elder statesmen are now replacing them with
  partners who are prepared to sacrifice a personal
  life, take on supervisory roles and still keep up
  the billable hours.

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Professional Practice Becomes Competitive Business
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Demise of the Middleperson

• Stockbrokers and other intermediaries are under
  threat
• Email between provider and customer cuts out
  middleperson and reduces cost
• Purchasers unite to increase buying power
• Producers unite to provide one stop shop

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The Internet as Smart Knowledge System

• The Internet informs and educates
• Schools and universities will change
• Big business has discovered education
• Any profession that provides a service based on
  knowledge may be affected by the development of
  smart knowledge systems on the Internet

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Life-long Learning or Radical Redundancy

• Rapid changes in telecommunications, business,
  education, finance, science and technology mean
  expertise will be transient as one innovation
  replaces another.
• A rapidly changing work environment requires
  frequent up-skilling of workforce.
• Outsourcing means more part-timers, casual
  employment or unemployment for some.

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The Digital Divide

• Even in the US, 50 million people do not have
  access to the Internet
• Internet illiteracy is comparable to inability to
  read and write 20 years ago.
• Division lack of any access
• Division lack of skills
• Division lack of high speed access

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How Will These Trends Affect Value Management?
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Systems Thinking Change Management

• Interdependency
• Complexity
• Organisations need to adapt to change
• The whole cannot be understood through analysis
  of individual parts
• Ownership of outcomes

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Change

• The old rules dont apply
• Yesterdays new rules dont apply
• The move to e-business is causing changes
• There is a trend to patent processes ( is that a
  market niche?)
• Move to knowledge rather than fixed assets
• Human Capital and Intellectual Capital as
  intangible assets

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A Mindset Change

• From a traditional, industrial mindset
• competition
• rules
• uniformity
• work for
• problem driven
• The world is a place we must fit into

• To a partnering, co-creating mindset
• collaboration
• guides
• diversity
• work with
• opportunity driven
• The world is a place we can create

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A Difference in Types of Assets

• Tangible Assets
• visible
• can be counted
• part of balance sheet
• depreciates
• can be duplicated
• best managed with a scarcity mentality

• Intangible Assets
• invisible
• difficult to quantify
• not accounted for
• appreciate/depreciate
• cannot be bought
• best managed with an abundance mentality

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Types of Change

• Incremental
• A to A
• Transitional
• A to B
• Transformational
• A to ?

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Transformational Change
Plateau
Chaos
Re-emergence
Death
Awakening
Birth
Transformational Change is the emergence of a
totally new state of being, out of the remains
of the old state - like a butterfly from a
caterpillar. Linda Ackerman
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Assessing Readiness for ChangeBeckhard Harris

• C (A B D) gt X
• where
• C change
• A dissatisfaction with status quo
• B desirability of the proposed change
• D practicality of the change
• X cost of change (real/perceived)

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Loss of...

• Security
• Competence
• Relationships
• Sense Of Direction
• Territory
• Control

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Sustaining Change

• The Elastic Band Syndrome
• Creating Felt Need
• Commitment
• Communication
• Engagement
• Leadership

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Change Management Plan

• Implementation Plan
• Communication Plan
• Engagement Plan
• Training Development Plan
• Evaluation Plan

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Changing How We do Business

• Is there a way to exploit the Internet ?
• Use of Technology
• Using conference technology, internet, voice,
  data and camera
• Decision making technology
• Groupware
• E-Business

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Organisational Learning

• Organisations that truly excel in the future will
  be those that discover how to tap peoples
  commitment and capacity to learn at all levels.
• Relationship between competitive advantage and
  learning well established.
• Value Management may be structured to facilitate
  and promote learning and from that to create
  ideas leading to value improved outcomes which
  have ownership of stakeholders.

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Cyber Gold Rush!

• Alan Cook Heather Duggan