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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.

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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?”

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