04.ap hub meeting 26 april 2013 facilitator liew shin liat

Facilitator: Liew Shin Liat

ICMCI AP Hub Meeting

25 to 27 April 2013, Bangkok

1

Prologue – ASEAN

2

ASEAN Economic Community (AEC)

The Association of Southeast Asian Nations, or

ASEAN, was established on 8 August 1967 in

Bangkok, Thailand, with the signing of the ASEAN

Declaration (Bangkok Declaration) by the

Founding Fathers of ASEAN, namely Indonesia,

Malaysia, Philippines, Singapore and Thailand.

Brunei Darussalam, Viet Nam, Lao PDR, Myanmar

and Cambodia subsequently joined in, making up

what is today the ten Member States of ASEAN.

3

ASEAN Economic Community (AEC)

The ASEAN Economic Community (AEC) shall be

the goal of regional economic integration by 2015.

AEC envisages the following key characteristics:

a) a single market and production base

b) a highly competitive economic region

c) a region of equitable economic development,

and

d) a region fully integrated into the global

economy.

4

ASEAN Economic Community (AEC)

The AEC areas of cooperation include

human resources development and capacity building;

recognition of professional qualifications;

closer consultation on macroeconomic and financial

policies;

trade financing measures; enhanced infrastructure and

communications connectivity;

development of electronic transactions through e-

ASEAN;

integrating industries across the region to promote

regional sourcing;

and enhancing private sector involvement for the

building of the AEC.

5

ASEAN Economic Community (AEC)

In short, the AEC will transform ASEAN into a

region with free movement of goods, services,

investment, skilled labour, and freer flow of capital.

AEC is likely to offer various opportunities to

consultants and clients.

6

22th Asean Summit -- Brunei 24 & 25 April 2013

Leaders’ retreat to focus on move towards AEC

Economic integration … on track (77% complete)

Code of Conduct (COC) … and sea disputes

7

Plenary Session

Plenary Session -- “Tapping opportunities from ASEAN

Economic Community (AEC)” In this session, we will look at

opportunities arising from ASEAN and its new role, and other

related subjects in the region.

Some points for discussion:

What lessons we can draw from other regional economic

communities (e.g., Europe, Americas, Greater China etc)

What are the challenges (and opportunities) for

consultants? For clients?

Suggest some ideas on tapping into AEC opportunities

8

25 April Morning Session

“Re-inventing and innovating the consulting sector: new

business models”. We will examine the special challenges

arising from creating new business models, and managing

consulting innovation.

Some points for discussion :

What could be a suitable business model framework for

consultants to better create value in Asia Pacific?

How should consultants in Asia Pacific innovate?

How could consultants in Asia Pacific work better in

consulting innovation?

Defining business model

A business model describes the rationale of

how an organization creates, delivers, and

captures value

-- Business Model Generation,

by Alexander Osterwalder & Yves Pigneur

9

10

Business model canvass

Key Partners

(KP)

Key Activities (KA)

Value

Propositions

(VP)

Customer Relations

(CR)

Customer

Segments

(CS)

Channels (CH)

Key Resources (KR)

Cost Structure (C$)

Revenue Stream (R$)

11

Issues raised by The Economist

12

Challenges faced within the consulting industry

13

Idea hunter:

I : Interested

D : Diverse

E : Exercised

A : Agile

Source: /http://www.imd.org/news/Bill-Fischer-co-authors-new-book-The-

Idea-Hunter.cfm

14

The Idea Hunter:

“Breakaway ideas come to those who are in

the habit of looking for such ideas – all

around them, all the time … They understand

that game-changing ideas are already out

there, waiting to be spotted and then shaped

into an innovation.”

-- Bill Fischer, IMD Professor

Source: /http://www.imd.org/news/Bill-Fischer-co-authors-new-book-The-

Idea-Hunter.cfm

Management innovation in the UK consulting industry October 2011 Dr Joe O’Mahoney (Fellow at the Advanced Institute of Management and Lecturer at Cardiff University)

15

LSL Consulting

16

• Innovation is primarily driven by the need to differentiate from the competition’

• Innovations are most commonly initiated through ‘working with clients’

• Most respondents believe innovation has increased in the last five years

• More respondents reported the introduction of new or improved services in their consultancy

Key findings: innovation practices

17

• Most important enablers of innovation: Access to external research, high levels of autonomy and strong upward communication

• Main constraints on innovation: lack of time due to high utilisation rates, and low levels of risk taking by clients.

• Working with clients on innovation

• Procurement hampers the sale of innovative consulting services (both in private and the public sectors)

Key findings: enablers, constraints, working

with clients, and procurement

18

• Think small: not another BPR or TQM .. requiring ideas that are tailored for clients’ local needs.

• Share costs and expertise: universities, research institutes, clients and other consultancies share resources on interesting innovative activity

• Explore new frontiers: ... bringing fresh ideas in and listening to them; recruiting graduates that are not from business schools;seeking out different sources of research and knowledge; organising cross-silo spaces for discussion.

Recommendations -- consultancies

19

• Enable talent: providing consultants with autonomy and the ear of senior management; Innovation involves risk so loosening controls is no bad thing.

• Be proactive: clients and procurers taking risks, having conversations and enabling creativity; though communication, education and persuasion.

• Develop your people: training, conference attendance and professional, accredited staff were important enablers of innovation; ... continuous professional development .. a strategic capacity for consultancies.

– The value of the standards (EN16114)

– The Value of the CMC Certification

Recommendations -- consultancies

20

• Work with consultants: Co-working with consultancies: a closer match of solutions with client needs, more motivated and skilled employees, a potential sharing of intellectual property and association with ground-breaking ideas.

• Take risks: examine and prioritise the areas of client business where new ideas could put client ahead of the competition. Put aside some of client’s budget to work with consultancies on new ideas, if possible using a risk-reward form of payment so that risks are shared with the supplier.

Recommendations -- clients

21

Crowd sourcing consulting

Key Partners

(KP)

Key Activities (KA)

Value

Propositions

(VP)

Customer Relations

(CR)

Customer

Segments

(CS)

Channels (CH)

Key Resources (KR)

Cost Structure (C$)

Revenue Stream (R$)

Multina-

tionals

International

Consultants

Multiple

value / low

cost

Work

breakdown

22

25 April Afternoon Session

“Learning from Consulting Case Studies”. We will discuss

and share examples of consulting projects, to reflect and

distil good practices and get more visible outcomes from 3

case studies:

Some points for discussion:

What are the 3 common features in the consulting case

studies presented? 3 different features?

How would you do differently in these consulting

projects in the context of AEC?

List some good practices you may be able to adopt in

your own consulting & business practices

23

25 April Afternoon Session

“Exploring collaboration among consultants” --

In this session, we will have dialogues to explore

collaboration among consultants, and project opportunities

with clients.

Some points for discussion:

M&A projects

Innovation projects

Executive education