Waikato Business News July/August 2018
Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.
Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.
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82 WAIKATO BUSINESS NEWS <strong>July</strong>/<strong>August</strong> <strong>2018</strong><br />
BAY NEWS<br />
The Groundswell effect<br />
Enthusiastic participants at the Start-up Weekend event during<br />
last year’s inaugural Groundswell Festival of Innovation.<br />
Photo/Richard Robinson Photography.<br />
Leading technology and business experts<br />
will illuminate the key challenges of digital<br />
transition during Tauranga’s second annual<br />
week-long festival of innovation.<br />
By DAVID PORTER<br />
The inaugural Groundswell<br />
Festival of Innovation<br />
in 2017 proved<br />
there are hundreds of innovators<br />
in Tauranga and the Bay<br />
creating remarkable products<br />
and services. And that they are<br />
more than willing to share their<br />
knowledge.<br />
This year’s festival - which<br />
will run from <strong>August</strong> 27 - September<br />
2 - is poised to build on<br />
that momentum, say the organisers<br />
and innovators taking<br />
part in what many believe will<br />
become an even bigger regular<br />
event on the city’s calendar.<br />
“What’s really special about<br />
Groundswell is the incredibly<br />
positive and collaborative<br />
atmosphere you experience at<br />
each event,” said Nigel Tutt,<br />
chief executive of Priority One,<br />
which initiated Groundswell.<br />
“Everyone who attends<br />
is genuinely interested and<br />
engaged, and it’s really encouraging<br />
to hear so many stories of<br />
innovation taking place across<br />
a diverse range of contexts.<br />
Not all businesses are innovation-led,<br />
nor do they have to be.<br />
But change is inevitable, and it<br />
never hurts to listen to others<br />
and hear thought-provoking<br />
stories of what is happening<br />
right now - and what is possible<br />
in the future.”<br />
Groundswell features a<br />
range of events from digital<br />
technology and clean tech, to<br />
fashion and textiles, to social<br />
and educational innovation,<br />
all featuring leading tech innovators.<br />
All events sold out last<br />
year, with attendance across<br />
the week reaching 5000, and<br />
the organisers are expecting an<br />
even bigger turnout this year.<br />
Jodie Tipping, the chair and<br />
founder of co-sponsor Cucumber,<br />
who is on the Groundswell<br />
organising committee, told Bay<br />
of Plenty <strong>Business</strong> <strong>News</strong> there<br />
were many exciting things happening<br />
on the innovation front.<br />
“But it was getting to a point<br />
a couple of years ago that you<br />
just weren’t hearing about them<br />
and that’s why we developed<br />
Groundswell,” she said.<br />
“My personal ultimate goal<br />
would be to see Groundswell<br />
become a movement of its own<br />
and not just a one-off festival,<br />
because innovation touches so<br />
many different organisations.<br />
“It’s not just tech or whatever,<br />
it’s very broad. The more<br />
we can create a community and<br />
awareness of things that are<br />
happening, the better it will be<br />
for our community.”<br />
Managing digital<br />
transformation<br />
One of the key challenges -<br />
especially for many of the<br />
small-to-medium enterprises<br />
(SMEs) that make up the great<br />
majority of business activity in<br />
New Zealand - is the sheer pace<br />
and scale of the digital transformation<br />
that has taken place in<br />
recent years.<br />
Liz Maguire<br />
One of the big<br />
quandaries we<br />
have in our world<br />
is how do you tell<br />
if something is a<br />
trend or a fad.<br />
– Liz Maguire, ANZ<br />
Liz Maguire, head of digital<br />
transformation for ANZ, who<br />
will be speaking at Groundswell,<br />
said that companies had<br />
to be across new technologies<br />
and work out whether they<br />
were going to be valuable to<br />
them.<br />
“One of the big quandaries<br />
we have in our world is how do<br />
you tell if something is a trend<br />
or a fad,” she said.<br />
“The fundamental reality is<br />
that people do not change their<br />
behaviour and adopt new technology<br />
unless there is something<br />
better about it for them.<br />
For the vast majority of people,<br />
there has to be a reason why<br />
you are going to use it.”<br />
As Isuru Fernando, IBM<br />
Isuru Fernando, IBM NZ<br />
New Zealand analytics & AI<br />
leader, told Bay of Plenty <strong>Business</strong><br />
<strong>News</strong>: “Disruption is all<br />
around us – with examples like<br />
Uber and Airbnb – companies<br />
that have reinvented business<br />
models.”<br />
Disruptive technologies<br />
such as Artificial Intelligence<br />
(AI), Internet of Things (IoT),<br />
or Blockchain were no longer<br />
the sole domain of large companies<br />
with big budgets, he added.<br />
“We are seeing many smallto-medium<br />
organisations right<br />
here in New Zealand making<br />
use of these technologies to<br />
power their ideas. They are<br />
able to start small, experiment<br />
and then build out the ideas that<br />
work, quickly and easily.”<br />
Fernando said IBM NZ<br />
was partnering with great local<br />
organisations and startups that<br />
were exporting their products<br />
and services all over the world.<br />
“And what is also interesting<br />
is that the large incumbent<br />
organisations in New Zealand<br />
are thinking like startups,” he<br />
said.<br />
“They are structuring their<br />
innovation teams to resemble<br />
those of small organisations and<br />
making a comeback by building<br />
platform business models<br />
using all of the data available to<br />
them, and turning it into insight.<br />
And they’re adopting Agile<br />
methodologies, using it as an<br />
innovation engine for business<br />
transformation and employing<br />
new ways of working to foster<br />
speed-to-market and competitive<br />
advantage.”<br />
Russell Craig, Microsoft<br />
NZ’s national technology officer,<br />
said that globally there was<br />
an incredible phenomenon of<br />
acceleration in the tech sector.<br />
“It’s very hard for everyone<br />
to keep up,” said Craig.<br />
“The challenge that people<br />
- particularly in smaller<br />
businesses - or non-commercial<br />
organisations, face at the<br />
moment is how to make the<br />
right choices.<br />
“The first challenge is trying<br />
to wrap your head as an organ-<br />
Russell Craig, Microsoft NZ<br />
isation around what’s actually<br />
happening in this area of digital<br />
transformation, because in<br />
many ways it’s quite an abstract<br />
concept.<br />
The challenge that<br />
people - particularly<br />
in smaller businesses<br />
or non-commercial<br />
organisations - face<br />
at the moment is how<br />
to make the right<br />
choices.<br />
– Russell Craig,<br />
Microsoft NZ<br />
“At the same time, most people<br />
are alert to some of the more<br />
obvious sweeping changes that<br />
are taking place. Look at the<br />
retail shelf space and the phenomenon<br />
of Amazon there.”<br />
Retailers were already facing<br />
the challenge with online<br />
shopping, and the media had<br />
been dealing with it, he said.<br />
“That’s going to extend to<br />
all our businesses in New Zealand<br />
eventually, no matter what<br />
industry they are in.”<br />
First find the relevance<br />
Craig said technology came<br />
second in terms of making the<br />
right choices.<br />
“First you need to understand<br />
how technology could<br />
be relevant to your business to<br />
help you change for the future,”<br />
he said.<br />
“It’s important to try and<br />
make things real at the local<br />
level. For example, with<br />
Airbnb, local businesses need<br />
to ask themselves what it is that<br />
consumers like about it. It’s the<br />
flexibility and convenience. If<br />
you’re a local motelier, how<br />
can you use digital to somehow<br />
match that customer experience<br />
of finding somewhere to stay?<br />
That’s all it’s really about.”<br />
Craig said one of the things<br />
he’d be talking about at Groundswell<br />
was trying to frame up the<br />
idea of digital transformation.<br />
“What does it mean from<br />
a global perspective? What’s<br />
happening in the technology<br />
sector, with particular relevance<br />
on the impact of technologies<br />
such as AI, machine learning,<br />
big data and analytics?<br />
“And obviously cloud computing,<br />
the technology platform<br />
that can enable any business<br />
from a local plumber through<br />
to Microsoft’s just- announced<br />
strategic deal with Walmart.<br />
Why did they partner with us?<br />
Because they need to compete<br />
against Amazon.”<br />
ANZ’s Liz Maguire said<br />
everybody was looking at how<br />
to handle the impact of digital<br />
transformation. She noted that<br />
the scale of change could be<br />
easily seen in the banking sector,<br />
with less than two percent<br />
of payments now happening in<br />
a bank branch these days.<br />
“There are amazing pockets<br />
of innovation in the country,”<br />
she said.<br />
“But my sense of it is that<br />
there’s a worrying amount of<br />
companies that haven’t done<br />
as much as they should have.<br />
I think there’s much more that<br />
could be done.”<br />
Maguire said there was a<br />
need to address the practical<br />
issues.<br />
We are seeing many<br />
small-to-medium<br />
organisations right<br />
here in New Zealand<br />
making use of these<br />
[disruptive new]<br />
technologies to power<br />
their ideas.<br />
– Isuru Fernando,<br />
IBM NZ<br />
“There’s lots of theory, there<br />
are lots of academic models.<br />
But the thing for many companies<br />
is, ‘where do I start? How<br />
do I get my board across this?<br />
How do I really understand<br />
whether what I’m doing is good<br />
for our customers? I’ve got 101<br />
things to do, so how do I really<br />
know which ones are important’.”<br />
Cucumber’s Jodie Tipping<br />
said that in both larger and<br />
smaller business there were<br />
people who are scared of technology.<br />
The more we can<br />
create a community<br />
and awareness<br />
of things that are<br />
happening, the better<br />
it will be for our<br />
community.<br />
– Jodie Tipping,<br />
Cucumber<br />
Jodie Tipping<br />
“They don’t really know<br />
what to do and what not to do,<br />
and I don’t think it’s just in the<br />
small business space,” she said.<br />
“We advocate ‘little and<br />
often’ - don’t be scared to try<br />
things. We work with organisations<br />
to understand what their<br />
customers are doing, to make<br />
sure they’re applying the right<br />
technology for the business<br />
they’re in.<br />
“Groundswell is an opportunity<br />
for the community to<br />
actually create what they want<br />
Tauranga and the region to be,<br />
rather than waiting for things<br />
to happen. I really hope it gains<br />
momentum.”<br />
Priority One’s Nigel Tutt<br />
said the organisers were excited<br />
about the breadth and depth<br />
that had emerged for this year’s<br />
event.<br />
“The Tauranga Art Gallery<br />
and Toi Ohomai School of Creative<br />
Industries will be alongside<br />
the likes of PowerSmart,<br />
Cucumber and Google’s leading<br />
education expert,” he said.<br />
“Bringing people together<br />
to create unexpected connections<br />
and have meaningful<br />
conversations is a big part of<br />
the festival - it’s how ideas like<br />
Groundswell came about and<br />
who knows what will come out<br />
of this year’s festival?”