Category Archives: Publications

Redefining education

Our latest piece at the Centre for the Edge is out: Redefining education.1)Peter Evans-Greenwood, Peter Williams, Kitty O’Leary (2015) The paradigm shift: Redefining education, Deloitte Australia.

When we did an Australian version of the Shift Index2)The Shift Index in Slides @ PEG we saw that while Australia has a pretty good digital foundation and society seems to be adapting to the shift fairly well, we’re not realising as much value as it could be. Or put another way, while we’re using digital technology to create new knowledge flows, we’re not as proficient at realising their value.

With the Shift Index complete we turned our attention to education, as it seemed logical that education would be the most effective fulcrum to use to improve our performance.

We took the major trends from the Shift Index – the move from stocks to flows, and from push to pull – and, as a bit of a thought experiment, applied them to the education sector to see what we came up with. This resulted in a slide deck The Future of the Education Sector3)The Future of the Education Sector @ PEG and now this report.

The major finding in the report is that our relationship with knowledge is changing, and consequently our relationship with education is changing. The snappy version of this is “Why remember what you can google?”. The longer story has interesting implications for the education sector as by changing what it means to be educated has all sorts of potential knock-on effects for education and educators.

The report is our attempt move the current debate beyond pedagogy and edu-tech, funding and Australia’s ranking on international league tables to consider if our changing relationship to knowledge (the shift from knowledge stocks to knowledge flows, highlighted in the report) is changing the role and purpose of education and (by extension) the education sector.

The report is on Deloitte’s web site, and I’d love to year your throughs.

References   [ + ]

1. Peter Evans-Greenwood, Peter Williams, Kitty O’Leary (2015) The paradigm shift: Redefining education, Deloitte Australia.
2. The Shift Index in Slides @ PEG
3. The Future of the Education Sector @ PEG

Setting aside the burdens of the past

The first report from the Australian Centre for the Edge on the Australian Shift Index, Setting aside the burdens of the past: The possibilities of technology-driven change in Australia, has just been published. (Press release here.)

We’ve worked hard on this over the last six months or so and I’m very happy with this report as an introduction to what we’ve done. If you’re interested in how technology is driving change both in business and in society in general, then I highly recommend that you head over and grab yourself a copy. (And if we’re in something like the same neighbourhood I’d love to catch up for a coffee to discuss. Or feel free to leave a comment below.)

The Shift Index was created as a tool to help us understand if the rapid pace and increasing uncertainty we feel in the business and social spheres is real, or if it is just an illusion created by the always-on environment we live. (This is a bit like how nationalised news brings us stories of shootings in other regions leading us to think that crime has increased, when in actual fact crime has been decreasing.)

As we say in the report:

The world is changing faster than ever. However, we can only respond to and manage a change if we can measure and understand it. If we want to respond as a community, then we need to find a way to quantify the change. We need to ask ourselves whether the perceived change is real, and if it is, how we can capitalise on it.

The short answer is that the world is definitely changing and that Australia, Australians and Australian businesses are successfully adapting to the changes. We can’t, however, rest on our laurels as the drivers of change are still present and it doesn’t look like they will dissipate for some time.

The concept behind the Shift Index is that developments in digital infrastructure (computing, storage and networks) is driving increases in information flows, and that these information flows are reconfiguring society by tipping the balance of power from the merchant to the consumer.

The framework we used as our starting point was developed by the US Center for the Edge, founded by John Hagel and John Seely Brown. The US Shift Index was developed in 2009 and has been updated each year since then.

Our goal with the Australian Shift Index was to take the US framework and build a comparable index for Australia, allowing us to take the lessons learned from the US index and translate them to our local context. At the same time, we tailored the index – tweaking or changing some of the metrics used – to create a version that is uniquely Australian and which can provide us with insight into the particular challenges we face here.

The methodology defines three groups of metrics:

  • The Foundation Index measures the price-performance of computing, storage and network technologies, the penetration of these technologies into society, and change in regulation to support the adoption of these technologies. This is the lead indicator in the Shift Index.
  • The Flow Index measures the resulting increase in information flows in terms of virtual flows (mobile phone and internet usage), physical follows (attendance at conferences, business travel, and money transfers) and flow amplifiers (social media and the like).
  • The Impact Index measures the impact of these changes across the Australian market (competitive intensity, labour productivity and stock price volatility), firms (asset profitability and the like) and people (consumer power, brand disloyally, returns to talent, and increased in executive turnover). This is the lag indicator for the Shift Index.

The result is three high-level metrics that quantify the the drivers for the change, the change itself, and it’s impact.

AU2012shiftindex

Image source: Centre for the Edge

There’s ten major findings in the report:

  • Fast adopters: Australians have a good track record for adopting new technology. Our challenge is to continue adapting, and to find opportunities to leverage these technologies within our institutions.
  • Tech-driven change: The permeation of cheap, powerful computing, communications and storage technologies is driving change and will continue to do so into the foreseeable future.
  • Knowledge flows: New technology has resulted in new flows of information at unprecedented volumes.
  • Higher competition: The Australian market has become more competitive as a result of new technology and knowledge flows.
  • Capital over labour: Australia’s focus has shifted away from labour and towards investment in new technologies for more efficient workflows.
  • Knowledge economy: Australia has shifted from an industrial and agricultural economy to a creative, service-based economy.
  • Unrealised potential: There is a big gap between our technological capabilities and the way we currently use technology to solve problems.
  • Economic strength: Australia’s economy is strong and demonstrates better asset profitability than the US.
  • Recession-proof: The global downturn in 2008 was only a pause in our progress and has not halted Australia’s transformation.
  • Future success: Our continued prosperity depends on how well our knowledge workers can find new ways of using technology to solve problems.

These ten findings are only the tip of the iceberg though. While the report answers some interesting questions, or raises even more questions, questions that we intend to delve into further.

Image source: macinate.

Technological Considerations of AML/CTF Programs

I had the chance in the last couple of months to review the (very old) chapter Technological Considerations of AML/CTF Programs chapter the I wrote with a couple of colleagues for LexisNexis’s Anti-Money Laundering and Financial Crime publication. The world has changed quite a bit since then so it was more like a recreation than a simple revision.

LexisNexis have kindly made an extract available, which you can find below via a Scribd embed. If you’re interested then head over to LexisNexis (or I suppose we can catch up for a coffee or something).

Outsourcing in an increasingly complex world

Outsourcing in an increasingly complex worldSometimes posts become a tad to long and unwieldily to drop onto the blog. One such post was a thing I put together around some work I’ve been doing over the last few years on outsourcing. A friend suggested that, rather than letting it languish, it could be interesting to clean it up and publish the result as a (short) ebook; which is what I’ve done.

Find the blurb below, and to can grab the complete text from the iBookstore or Lulu (epub) (Amazon is in the pipeline).

Outsourcing in an increasingly complex world

by Peter Evans-Greenwood

Support independent publishing: Buy this e-book on Lulu.

Pressure on margins is driving organizations to increasingly rationalize and externalize supporting functions as they search for more efficient and flexible delivery approaches.

Most common approaches to outsourcing center on establishing target service levels and a unit cost, treating the negotiation of an outsourcing engagement in a similar fashion to the procurement of other materials that the business needs.

Outsourcing, however, is becoming more complicated as we move functions closer to the heart of the business into the hands of partners and suppliers. This represents a shift from an approach based on paying invoices for the raw materials we need to run the business, to one based on delegating core, business-critical functions to suppliers, and then requiring them to deliver the outcomes that we need.

Crafting a successful outsourcing engagement in this environment requires us to align the supplier’s incentives, and therefore their objectives, with the client’s business drivers. It’s not enough to take a piecemeal approach, imposing additional requirements and constraints in the hope that these will shape supplier behaviour.

It’s a truism that what gets measured is what gets done; outsourcing is no different. Existing approaches to crafting outsourcing agreements attempt to shape supplier behavior by imposing large and inconsistent sets of requirements, with the result that both parties search for loopholes in an attempt to optimize their position.

A successful contract will be based on the customer’s business drivers, aligning supplier incentives with them to ensure that the agreement drives the right behaviors