Archive for April, 2007

EDANZ Conference report day 1…..

Well…. Day one held an interesting variety of speakers. The highlight was Andy Lark who gave an interesting (if, IMHO, slightly biased towards the IT viewpoint of things) presentation. To paraphrase he identified a number of paradoxes for NZ exporters;

  • We live on an island…..but have export conferences because we are exporting less
  • Distance is dead…..unless you live on an island at the end of the earth
  • KG’s are a big part of our export strategy…. but winning economies are weightless
  • What we regard as most valuable….is less important than we think
  • If brands do in fact matter….why are our B2B businesses not winning
  • We’re the most entrepreneurial nation in the world……we’re great at building SME’s but not at selling to them

Andy was very entertaining but I have a couple of issues wih some of what he said.

He stated that the NZ brand is not overly important to our export markets. Maybe this is a case in the IT sector but my own business, Cactus Climbing, leverages heavily off the NZ image. As do a number of others.  There was discussion about the new technologies that allow collaborative business, Wiki’s, LinkedIn, SaaS, Skype etc etc and, while I am a believer and utiliser of all of them, the fact of the matter is that these things are tools that may or may not be relevant to particular business people. Sure in the IT sector all of the above are no-brainers but my contention is that unless having a blog is relevant to a particular CEO, it is counter productive for them to do so. Something that I’ve already raised in a previous post.

Andy’s contention was that NZ needs to create exponential exporters, businesses that can scale quickly into world class in terms of offering and turnover. I kind of disagree, I think given NZ’s fundamentals that NZTE should be targeting getting 100 $5mill turnover companies to $10 or $20mill turnover in a short space of time. It seems a lower risk strategy and more in keeping with the Kiwi ethos. Also it may well allow us to scale businesses slightly under the competitive radar - something that a country in our position might very well need to do.

Other speakers were Jane Hunter, CEO of Hunter Wines, who talked about overcoming the hurdles of CO2 and the food miles debate for NZ businesses. While it was an interesting topic she isn’t unfortunately the most animated of speakers.

Final presentation was by Steve Tew, Deputy CEO of the NZRU, he talked about managing the brand that is NZ rugby and growing it’s sales as a net exporter. Of course much of the talk ended up being parochial rugby talk but in between all that there was some interesting stuff.

As always at these sorts of conferences the most interesting part was the in-between networking. I met some interesting individuals and listened to some interesting perspectives on economic development for New Zealand

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Is Carbon trading the way forward?????

For awhile now I’ve been uncomofrtable about the whole carbon trading dialogue - it feels to me like greenwash, whereby middle class consumers can feel themselves absolved of guilt by making some token gestures towards environmentalism. I’m uncomfortable for the same reasons that I’m uncomfortable about Greenpeace membership drives and the plethora of new environmental magazines that seem to be coming onto the market. You know the ones that tell you it’s OK to build a 400 square metre house so long as you don’t use solvent based paints, or that it’s OK going for a weeks holiday to the Gold Coast so long as you use cloth grocery bags when you’re at the supermarket. I’m just not sure about it all.

An article in the NY Times has an interesting take on the whole carbon neutral trend.

I definately believe its something the NZ businesses ashould find out about fully before rushing headlong into. We are lucky here that Landcare, a reputable organisation, is running the CarbonZero service . At least we know that the advice and information we get from them is honest.

Interesting times huh?

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Well at least Rod Oram and I agree……

Interesting to read Rod Oram’s editorial in the SST yesterday. Specifically his comments that our laggardly performance in terms fo GDP growth may possible\y be due to “failure of ambition, management skills and strategy” in our businesses. I’d go further and say that one of the core reasons for our lack of performance are these very issues. Something that (hopefully) the EDANZ conference this week may address. I’ll report back on whether it does or not!

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The Telecom seperation debate

I see there have been a few postings in the last couple of days about the whole infrastructure provisioning issue as it related to the structural separation of Telecom. Both Rod Drury and Jim Donovan have posted some interesting comments. The fact of the matter is that we will never get an accurate estimate of costs - both capital and ongoing. On the one hand are the telco’s who obviously have a vested interest to put their spin on the debate, on the other is the government. This is where TUANZ should/could facilitate the debate to get some accurate analysis from which people can make a truly informed decision

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EDANZ Conference

The greater part of next week will see me, in my role as a board member of Enterprise North Canterbury, attending the Economic Development NZ Conference. The theme of the conference is “Growing an Export Economy” and it is a challenging time for this conference given the recent announcements by Fisher&Paykel Appliances that it will shift its NZ laundry appliance factory to Thailand and the possibility of Sleepyhead doing the same.

It is interesting to read about the incentives being offered to F&PA by the Thai government and perhaps time for us in New Zealand to look at these sorts of incentives. Talk fests and governments agencies can help, education is key, but at the end of the day these need to sit side by side with incentives to attract and retain businesses to our country.

In any case I’ll report back from the conference with any positive or novel concepts for dragging our economy out of its current mire.

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Director Find website

I see that, following on from his research about governance in New Zealand, Jens Mueller and his team have set up a website as a tool for both prospective independent directors, and entities needing the same, to meet.

Now in all my writing I have pressed for more governance in New Zealand, so don’t get me wrong, I’m in firm favour of anything that might lead to more higher calibre people being directors for more businesses. My concerns however lie in a couple of areas.

I do have some residual concerns about the “old boys, shoulder tap” state of governance in New Zealand, with a very small band of accountants and lawyers filling the majority of the directorial positions available. These individuals are not necessarily the right directors for young, new vibrant businesses. In fact sometimes these individuals are exactly the wrong person this sort of entity needs. Given that you’d think I’d be shouting about the new service from the rooftops.

My concern lies in the fact that, as the website is an entirely open platform, it may become a de facto place for unhappy middle management to sell themselves into another role. As such it may be providing a service to the individuals but it is also doing a disservice to the businesses using the site to find new independent directors.

I guess we just have to hope that the businesses selecting new directors have excellent assessment tools in place to ensure the right candidates are always chosen.

In any case we’ll watch developments and see how successful the site proves.

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Waving goodbye to the knowledge wave

The latest issue of Idealog magazine had this excellent piece by Vincent Heeringa. It’s amazing how wowed we were by the Knowledge Wave conference and how little came of it. My contention is that we didn’t have sufficient integration between business, education, local and central government and business thinkers to get traction. Something that we should, and need to remedy.

Anyone want to help organised a TED_NZ conference?

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Vector takes stake in NZ windfarms

Good to read today that Vector has taken (or will if the shareholders agree) a 19.9% stake in NZ windfarms. I’ve hoped beyond hope for awhile now that Geoff Henderson at Windflow would be successful in building an alternative wind turbine supplier to the European brands. Partly for parochial reasons but also from an economic growth perspectvie.

I also feel that the windfarms/windflow strategy of vertical integration among linked companies is a sound platform for a new entrant supplier. By owning the farms and the turbine technology they get to seed the market, test the product and not lose face in the event of the unavoidable teething problems.

Best of luck to them and hears hoping the windfarm turbines gain leverage from the deal

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Bruce Sheppard - moving to the other side

I read tonight that Bruce Sheppard has been appointed to the board of Christchurch bus information firm Connexionz. I wonder how he’ll react to some pesky shareholder holding him to account the way he’s historically held other directors to account????

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CEO’s blogs, yadda yadda yadda

I just hate all this hyperbole about CEO’s and blogs. I mean if a CEO sees value in having a blog and actually uses it regularly than fine - but if it’s just a trend bandwagon….

Over at No8 Ventures , Jenny Morel has her own blog last posting…. February 28th.

I mean why bother? Maybe I’m wrong and it’s good that she only writes when there’s actually something to say. But couldn’t she just post something on their website. I don’t know - sounds a little like hype to me….

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