In 1980, the Sherman Act was instated to protect both businesses and consumers. This economic legislation ensures fair pricing while still allowing for open competition through the restriction of price fixing. Price fixing is defined as “an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold” (Price Fixing, Bid Rigging, and Market Allocation Schemes 2). Some examples of price fixing include the holding of prices, eliminating discounts, adopting a standard formula for computing prices, and not advertising prices.

Price fixing can also be used to discriminate against other small businesses. Setting a price only within a certain area in order to eliminate competition or create a monopoly is illegal. Many states have also adopted a “Below Sales Cost” law. This law states that they may not sell goods below their cost with an anti-competitive intent. Price fixing is harmful to individuals, small businesses, and corporations (Price Fixing: What is it? 2).

I agree with the current laws that are in effect against price fixing. If price fixing were allowed to take place in the marketplace, there would be a dramatic rise in prices in various products. Gas stations would collaborate, causing the price per gallon to rise overnight. If the local market was flooded with price fixing in products such as gas and food, there would be no choice but to purchase products at an inflated price. If large companies sold products at a price lower than cost, smaller family owned businesses would fail within weeks. Thanks to the Sherman Act, there is still fair competition in the marketplace, but it is not so fierce that newly developing businesses crumble under the pressure.

The Sherman Act is strictly enforced today under the Federal Antitrust Enforcement Department. In 2000, a settlement was made with three of the United States' largest music retailers. These retailers followed a practice known as “minimum-advertised pricing” (or MAP). Through MAP, these retailers subsidized ads by retailers. In return for this, the stores agreed to sell CD's at or above a certain price, providing them with an unfair advantage over consumers. The companies agreed to pay $67.4 million and distribute $75.7 million in CD's to public and non-profit groups to settle the lawsuit (USAToday.com 2).

Ensuring fair competition is essential to maintaining low prices in the marketplace. Although competition itself is not unethical, it is unethical when companies work together to intentionally and unnecessarily increase profits at the expense of the consumer. Without the Sherman Act, prices would skyrocket in every industry. Thanks to the Sherman Act, we can be sure that we are being charged fair prices in our local market.

A. The Covering Letter

This should be quite brief with no more than three paragraphs over one A4 page. The opening paragraph should mention what you are applying for and why. Try not to repeat your resume. instead, mainly summarise key points relevant to the post. The second paragraph should state why you are particularly suitable, especially in acquiring customers and giving value for money, and using certain key words the advert might have mentioned, while the third contains what you hope to gain from the post and any special skills/expertise you would bring to it in return.

The letter should stress your experience, knowledge and expertise that would suit that job and enhance the company's service and reputation. Mention the desire to face that next challenge in your development which the new company appears to offer and the enthusiasm and drive you would be bringing. The letter should be more professional and emotional in tone, i:e stressing the kind of person you are, your personality, your objectives, reliability, resilience, successes etc, with certain key words like flexibility, adaptability and challenge strategically placed. Overall, the letter should give a brief flavour of you while the resume fills in the details. End very hopefully, thanking them for a positive response soon.

B. The Resume

No resume should be longer than two A4 pages, and at the most, three. banking is now a global activity so be prepared to address that aspect in your resume. You could arrange the details in the following order for clarity:

1. Education - all your college and university experiences, along with your qualifications, especially if you are an older candidate. Include your high school if you are younger.

2. Current Post - This should have a brief outline of your present job, its responsibilities and roles, and the main skills you employ within it, especially the ones relevant to banking.

3. Professional Experience - This is where you would list your other key and recent jobs, making sure you outline what you did. Use certain key buzzwords associated with the finance field, so that your specific skills in handling the potential tasks are plain to see, and in accepted banking jargon. Highlight the experiences which actually match the requirement of the advert rather than just speaking generally.

4. Additional Experience - This part is suitable for all the things you might have done in between jobs or as voluntary work, again emphasising the relevant knowledge and skills gained within them that would be useful to the new post. These would also help to fill any noticeable gaps and give a more rounded picture of you.

5. Computer Skills - Mention the computer awareness you have, the different kinds of applications you are adept in and your actual experience in this field. Computers are our future and you being comfortable with them shows your adaptability and flexibility. Confidence in technology has to be your keyword, especially when computers are now essential to the vast amount of banking data.

6. Languages - This is another crucial aspect in our global banking world. Any language could be useful to your role, especially the main ones like English, French, Spanish, Hindi, Punjabi, Japanese and Chinese. These kind of linguistic skills can often be priceless to potential and existing customers.

7. Honours and Awards - List these clearly with brief explanations of why you received them, specially the most recent. Honours which match the new job field should come first.

8. Recent Training - List all the courses and training you have had, especially the ones that are relevant to this new job. Even the occasional one day course in banking functions shows that you wish to keep up with the trends and not hang back in old ways and mindsets. That is also how you would be able to compete with younger people who might be at the cutting edge of their profession.

9. Six Key Words (Optional) - These are words you would use to describe yourself or other people have used constantly to describe you. These would be useful as a snapshot to tell the recruiter what kind of personality you have and could work in your favour, especially if those words are also in mind for their ideal candidate.

10. References - List two key referees that can be contacted as recommendation and support for you. One is usually a business leader, like your last boss, and one personal, or both could be from past experiences. If you are younger, one should be a principal of your college or headteacher.

On the whole, you have to stress your experience, accomplishments and the results you are capable of producing, where people are also concentrating on money. In effect, how you would improve the bottom line. That's all banking businesses are interested in. If employers think you will make things happen, while being sensitive and adaptable, you are halfway in. A fine balance in demonstrating experience, clear objectives and a love of the profession itself will get you even farther.

To be successful in business you must be able to kill a Lion everyday according to that famous business man. Why such strong affirmation? Well, let's take a look at our health. Why do you need to be on your best every and each single day? I assume you know a little about health and medicine and that includes you know that you are deadly attacked everyday by deadly virus and bacterias inside and outside your body, all of them fighting with their life to kill you. They have no choice! If they want to survive they have to attack you.

This behavior is not exclusive for virus and bacterias. In the wild world or in the jungle you can see that all the animals share the same behavior. To eat they must kill and they fight with their lifes everyday and at the end of the day they must be glad to survive once again.

Now returning to business. If you fail and bankrupt probably you will go to the middle of the street. Since people will always choose the best option to spend their money, they will choose the best business and that means that or you fight with your life and with enough strength to kill a Lion or you risk being left behind by your competitor!

So what can you do to be a more aggressive person everyday? What can you do to incease both your physical and mental abilities to be ready to handle one more super stressful day? First of all reduce the amount of sex you have. What!? You may be asking. It just so happens that humans beings need sex, specially men, otherwise they will start to become super aggressive beings. It's just our nature. We need to mate to continue our specie and our body behaves like that. I don't know about your life but try to reduce your sexual activity to only once per week and see the differences.

The next thing to do is to practise a dangerous sport. The amount of adrenaline you will get from risking your body everyday will make all your senses be more aware of the environment and able to make decisions so much faster. I recomend you stunts like these.

Take also special care with all the food you ingest. Make a contract with yourself about eating only top qaulity food and getting rid of all junk food such as fast food and sweeties. I already reduced all junk food and coke to zero. All I eat is healthy food from now on and I intend to continue like that if I want to continue to be good at sports.

Finally get a good night and middle of the day sleep. Sleeping huge amounts of time is not generally good for health. It's so much better to take a little nap in the afternoon than sleeping an entire night. I never ever sleep more than five hours per night but I always sleep at least 30 minutes in the afternoon.

Good luck in business and take care!

Jefrey E. Garten on his book made his conclusion after interviewed with several CEO, " If the Leader of business make collaboration, between business with technology, so they will never afraid to face everything. When they success learn to overcome big inhibition at business of course". In internet we always connect with everyone and everywhere around the world, these CEO have to catch the chance, for Increase advantage at their Company. And Internet made their company so near to consumer. Not only useful for their relation with consumer and customers, but also supplier. And use Internet for business, for example : can sell the product to customer online, and know what the product customers's want, of course keep in touch with them and know what weakness of their product from customers directly. But if the company used Internet technology, will need employee with high talent. the next is assignment of CEO to manage company for all employee enjoy do the job for a long time.

In this case, occur Competition between a company with other company that use internet for Gun of their business too. and so many of company make web site on-line, like today almost all the company have a web site. so they could market their product directly for their consumer without interface. and all information about product known by costumers with just click on internet (web site).

Jack Welch ( Chairman & CEO of General Electric - GE - that ever come at "leader forum" in Yale School of Management ) said; " Internet must become enabler for basic of business strategy. Use Internet, what you want to do become so fast and efficient, but don't change your basic purpose for your business''. He said ; " We use Internet for work so fast and push fee from system, didn't need other interface for transaction." we have strategy and Internet make it work effectively.

War will occur between small dynamic companies, like dot.com company (example: Amazon.com) and may be running to become Big company, with Big Company like motor company (example : Daimler Chrysler). and follow competition in internet, In the end Daimler Chrysler made web site like Auto-bytel.com and CarsDirect.com, the purpose is service for customers and bought car on-line.

In cyberspace is deep evolution and absolute. so all of CEO from a company have to use Internet for Increase profit of their company and didn't leave by other companies that exploit Internet technology for their business. Internet Competition drive big company to collaborate them with small dynamic company or made competition both company.

For you as personal company, now time for start make preparation to use internet for your business promotion. and compete with small dynamic company too. And we as personal could join on Internet competition for business that with earning money, with join on Triond like me and you. Or join in affiliate programme or called Internet Marketing it's about business too but personal, right?

Business will be better with Internet, and It had been made Internet Competition (for Business). So let's make great Internet Competition.

#1 Assess Your Strengths

Are you a good writer? Practice and be the best writer you can be. If you enjoy kayaking, perhaps you can pitch a story to an outdoor publication. Maybe you are a civil engineer with an interest in green construction practices. Have a knack with computers? A repair service just might put a little more jingle in your pockets. The possibilities are endless - closet organization, auto detailing, business consulting, photographing special events, tailoring - ask a close friend or family member if you are struggling to find your niche.

#2 Determine Who Will Buy What You Are Selling

When Ami Moore, a Chicago Dog Trainer, started Doggie Do Right to coach dogs and pet parents to live together harmoniously, she networked endlessly. “I partnered with veterinarians, gave advice to pet parents of rehomed dogs and looked for opportunities to promote my business in online communities.” Her plan worked. In 2005, she hit six figures. Ami did several things right that you can do to home in on your target buyers. She turned to bona fide plugged in communities and turned them into referral sources to minimize her advertising costs.

#3 Evaluate The Competition

If you want to offer a scrapbooking tutorial and there are five scrapbooking stores offering lesson within a five block radius of you, find a different angle. Maybe you can specialize in a type of book or paper, or you've developed a technique none of your competitors use. Instead of a run of the mill cleaning service, use only all-natural products. The bonus is by positioning yourself as an expert, above all the fray, the perceived value of your services is greater… which means you can charge more.

#4 Pricing

Ami Moore chuckles when she recounts one of her former competitors. “He hung advertisements on doorknobs, wallpapered the community with fliers and had no takers. He reduced his prices and even offered free lessons. When he finally landed a paying dog training client, he was losing money.” Turns out the value of his service wasn't at issue - he was focusing on a planned community that banned dogs. Think about where you are looking for clients and what the marketplace is. Lawyers may have more room to pay $100 for advertising design than a trucking firm. While you build up your business, don't be afraid to be flexible on your pricing strategy.

#5 Promote Yourself

Networking is key, as illustrated by Ami Moore's success. But you need materials you can leave behind with prospects. Ami always carried an extra leash with her website imprinted on it to send home with someone who forgot one, had one too short for the park, or maybe the dog escaped the off-leash area. She had professionally printed business cards and brochures. As the revenue rolled in, she upgraded her dogdoright website and hired a publicist, which she thinks gave her better results than constantly advertising. Promotional items can be excellent if they are relevant to your target audience.

#6 Get Business Help

Most communities have a small business resource center funded by the local government, the SBA, or the Chamber of Commerce. These are all free services, or available for a nominal fee. You also gain access to SCORE, which are retired executives who may have expertise in your field. Why pay thousands in consulting fees if those same services are available at no cost? Invest $1,000 or so with an accountant to set up your books properly if you've never done it before. You will pick up a wealth of information from your consultation, and ensure you are on the right path.

Start your venture part time if you have steady income already. If it starts to take off, evaluate the pros and cons of doing it full-time. Will your gas savings, for instance, offset your loss of a 401k match from your job? Where will your health insurance come from? Once you make your decision to start your home-based business, don't be afraid to follow your dreams!

The objective of this report is to provide an understanding of the competition mechanisms between countries which are traditionally exporters - the “Old World” producers represented by European countries - and the so called “New World” countries which today compete for the supremacy of the traditional model of wine growing and production.

World Wine Producers

The distribution of the world wine producers is clearly detailed in the map below.

The Old World producers are located in Europe. France, Italy and Spain are the main producers, followed by Portugal, Balkan states, UK and Germany. The European countries are still detaining a dominant position and they accounted for 70% of world production and consumption in 1999 (by data acquired by Euromonitor).

The New World producers are scattered around the world and are represented mainly by: Australia, Chile, United States, South Africa, New Zealand, Argentina and Canada.

World Wine Exports

The world wine export are still dominated by the Old World producers (see diagram below), with only three countries (France, Italy and Spain) which account for 60% of the world volumes exports in 2003.

Among the New World producers, the largest exports are coming from Australia, Chile and United States.

Another interesting characteristic is showed by the diagram below where the value of wine in exports market are growing at greater rate than volume.

France Productions, Exports and International Image

France accounts for 20.3% or the world wine production, with one third of domestic production exported to other European countries (UK, Belgium, Germany, The Netherlands) and outside Europe (major clients are United States, Canada, Denmark and Japan).

In the most recent years, domestic sales of wine have declined constantly. The wine consumption is becoming more occasional. This is partially due to an aggressive anti-alcohol campaign and driving restrictions set by the local government, but also facilitated by a lack of marketing strategy: the wine market is loosing touch with the youth (the average age of wine drinker is gone up from 35 to 55) and young people are getting keener to beer or alcohol pops.

Lowered domestic sales may result in a greater emphasis on exports, however the recent trend showed how French exports continue to loose market share to the New World (see diagram below).

Global Trade Atlas-Global Trade Information Source 2004

Considering France international reputation and image, it is useful to analyse its strengths and weaknesses, taking into consideration the important differences existing between standard and premium market.

Strengths:

France remain quality leader in the premium market; its international image express Sophistication, Tradition and Charm.

Weaknesses:

There are many weak points to be addressed . The puzzling classification and labeling, the unreliable quality, the rigid “appellation d'origine controlee” which dictates strict rules on methods of production (see more details on par.6.4) . Its international image is often seen as intimidating, boring and old fashioned.

Success of New World over the Old World: Key Factors

The following analysis aims to elucidate the main reasons accounting for the New World success over the Old World. We identified the following key factors:

• Taste of Wine:

  Many people like the sophistication of wine but not so much the taste; Old World provides a wine which taste need to be acquired (more acidic, dry and harsh) and the rigid appellation controlee does not allow manipulations (the only exception is the adding of sugar known aschaptilization) . The New World wine is by contrast easy to drink (less acidic, sweet and fruity), therefore appealing to a wider range of consumers.

• Labels:

  Traditionally the labels of Old World wine are very cryptic. They are in foreign language, denomination of wine is by place of origin (by naming the specific vineyard or “chateau” or the region where the wine has been produced, following the terroir concept as “unique combination of subsoil and amount of days of sun and rain during the growing season”). New World wine labels are by contrast easy to understand. They are in English, with indication of grapes variety (i.e. Chardonnay, Cabernet Savignon, Merlot), and additional information like taste description and meal suggestions. With enticing attractive labels, New World wine is just more accessible and easier to understand than European wines. Recently, some producers from the Old World has responded to the new consumer needs and starting to provide fully descriptive labels in english.

• Image and Brand:

  Old World wine hold a strong image only in the premium market The Old World needs to build a global brand and strengthen its international image for the standard market to compete with the strong image and wine brands created by the New World producers (places associated with sun, youth and fun).

• Wine Quality:

  The unreliable and too often irregular quality of Old World wine is finding difficult to compete with the very regular quality provided by the New World.

• High Fragmentation:

  The archaic structure of production which still in place in the Old World is characterised by small family vineyards or huge cooperatives
  supported by government subsidies (and traditionally more preoccupied with maintaining low price rather than achieving better quality). In both cases their culture is far from the marketing orientation needed in the modern wine market. New World production is offered by few big companies with high capital and strong marketing orientation.

• Expensive Production:

  The high fragmentation and little scale of production does make difficult for Old World producers to be very profitable: often the costs are too high, allowing no margins to spend on promotion, market research and product development. They must compete with the large scale production of New World , always very cost effective and with large margins to invest in research and promotion.

Evaluation of Different Strategies

European old world's producers are meeting on a regular basis to discuss alternative courses of action in order to fight back the ever more pressing competition exercised by new world's producers. Different strategies have been suggested in one of these discussions by the Bordeaux winemakers: we will analyse positive and negative sides of each proposed strategy.

Premium & Standard Wine Market

Strategy No.1:

“Stick to what we have always been doing and build upon our unique terrier. After all the world's wine critics, wine enthusiasts and our local customers remain discerning and are loyal to our wines”.

Evaluation:

It is important to distinct between Standard and Premium wine market.

Old World wines may have struggled to stop the advance of their New World competitors in the mass market - at least in non-producing countries such as the UK - but the premium market has largely remained dominated by French, and to a lesser extent, Spanish and Italian producers.

“In the standard market, France's obsession with tradition and maintaining the status quo will result in the bankruptcy and collapse of many producers who refuse to recognize the competitive nature of the global wine market” (M. Parker, Jr., 2004).

The approach would be successful in the Premium market where increasing demand of fine wine from such countries like Asia, South America, Central and Eastern Europe and Russia will make rise considerably top wine prices. The Premium market will see growing demand and profits. (Faced with declining margins from "standard" wines, New World producers are also shifting their marketing focus to premium products- examples are Chilean drinks group CCU, establishing a joint venture with French wine maker Château D'assault in 2001 for the production of super-premium wines in Chile and America's E&J Gallo with its recent efforts to enhance the equity of the UK's number one Californian brand, Wine Cellars, which has been re-launched under the new name Ernest & Julio Gallo Sierra Valley).

Creation of an accessible French brand

Strategy No.2:

“Adopt Australian methods of wine production and branding for international markets. We must develop an accessible French brand, learning from British Diageo with their “Le Piat d'Or” or American Australian Southcorp with “Vichon”.

Evaluation:

Branding has proved to be a fundamental factor for the success of New World producers. In order for wine producers to develop an international brand for French wine French governmentrecently agreed to double financial support for the industry to € 15m (£9m). Consumer insights are inspiring the creation of accessible French wine brands that avoids the pretensions of the Old World to appeal to real people.

In particular in the UK, one of the major key markets for France wine exports, there has been an effort with the following brands and related advertisement campaigns:

• Burgundy'slogo and “Red Dress” ads

Press campaign: newspapers, food and wine pubs

Budget: £650,000

• Vin de Pays d'Oc : “It's all happening in the Oc”

Transformation campaign: address region's lack of clear identity, used in UK

Budget: £500,000

• Rhône “Think Red. Think Côtes du Rhône.”
• French Connection has become the fastest growing French wine brand; it is now listed as the number three French wine brand, and number 12 in the top 20 list of all wine brands sold in the UK (AC Nielsen).

The Global wine company (acquisitions and mergers)

Strategy No.3:

“Follow the example provided by French LVHM and Pernod Ricard and buy into the new world wines' position and marketing expertise (LVHM own Australian Green Point and Californian Domaine Chandon; Pernod Ricard owns Australian Jacob's Creek and South African Long Mountain)

Evaluation:

This is definitely the quickest way forward for Old World producers in order to acquire the marketing knowledge and strategic strength they so urgently need.

With growing consolidation in the global alcoholic drinks market, and given the highly fragmented nature of the wine market, there is strong possibility for further merger and acquisition activity in the new wine market (as new research from Euromonitor International have confirmed). Industry consolidation is likely to make life harder for the smaller local wineries in the short term. Lack of capital is a major barrier to growth for smaller players, and this factor drive them into acquisition by larger companies.

This trend will lead eventually to a new structure of the wine production model: we are going toward the global wine company of the future.

The new global wine company will have a truly global organizational culture, will develop a series of global brands at different price to meet consumer expectations, and will create extraordinary communication systems to support an enormously complex production and marketing interface.

Appellation d'origine controlee and competitive disadvantage

Strategy No.4:

“Seek the disestablishment of appellation controlee for many of our wine-growing areas so that we can develop the global French brand we need”.

Appelation d'origine controlee is the French system of designating and controlling both the geography and the quality of wines (as well as some food products).

Near the end of the 19th Century, French vineyards (as well as most all vineyards in Europe) suffered the devastation of vine diseases and pests accidentally introduced from America. European viticulture was very nearly destroyed before measures were found to deal with these problems.

In the intervening years, the available quantity of the fine wine was reduced to a trickle and French wine was in the highest demand. Fraud and adulteration were rampant and widespread until a series laws were passed in the beginning of the 20th Century aimed at ending these deceptions. The laws specify and delimit the geography from which a particular wine (or other product) may originate and methods by which it may be made.

The regulations are administered by a powerful quasi-governmental body, Institut National des Appellations d'Origine, or INAO, founded in 1935. Every imaginable facet from producer to consumer has been considered controlled or regulated and the use of AC terms on labels of French wine requires absolute compliance.

Evaluation:

We believe that this strict system of regulations lead to a competitive disadvantage for French and other Old World producers.

Competitive disadvantage deriving from expensive production (the mandatory use of expensive oak barrels to flavour instead of the cheaper oak chips widely used by the New World producers is one of the factor and also the rigid rules regarding the appellation upon which an Old World Chardonnay must be 100% compared to 85% for New World), not allowed manipulations in order to reach a better taste, and confusing labels practice previously mentioned. Furthermore, the historic reasons which lead to its creation are not justified today, at least with regards of its most severe rules and considering the standard wine market.

The Old World should seek the disestablishment of Appellation d'origine controlee at least for the lower category wine. Since in the Premium market the Appellation characterises the product as original and distinctive we would not consider this strategy as successful as in the lower market.

Protectionism versus being marketing oriented

Suggested strategy:

“We must protect our consumers from practices that undermine our European heritage; we need to use our political clout in the EU as well as in our own parliament”.

Evaluation:

We believe protectionism is not the answer.

The new global economy and competitive system should eventually lead to the point of mutual recognition that high quality wine can be made in many different places around the globe allowing the consumers to decide which wine they like best. In today's global community we should be reveling in the diversity of wines available to consumers, and we should be doing everything we can to promote appreciation of the wines that result from different terroir, viticulture, and wine making styles rather than erecting protectionist trade barriers to the free flow of wine around the world.

World wine market: long term predictions

We would like to end this analysis considering a few interesting predictions formulated by Mr. Robert M. Parker, Jr., wine advocate and undeniably the world's most prominent wine critic (recently published in the October 2004 issue Food & Wine magazine).

“The wine Web will go mainstream”: there will be a full range of Web sites tailored to disseminate information about new wines and new producers supported by experts, consultants, specialists and advisors which will assume the role of today's wine publications.

“World bidding wars will begin for top wines”: World's greatest wines will reach a prohibitive price due to the increasing demand coming from new developing countries, i.e. Asia, South America, Central and Eastern Europe and Russia. The most limited production wines will become even more expensive and more difficult to obtain.

“France will feel a squeeze”: “France's obsession with tradition and maintaining the status quo will result in the bankruptcy and collapse of many producers who refuse to recognize the competitive nature of the global wine market”.

“Spain will be the star, Southern Italy will ascend”: Both these countries continue to make regional wines as they have for centuries, but they have adopted the New World style to some extent to increase their share of the new wine market.

Spain will rise as a leader both in wine quality and creativity, benefiting from the combination of tradition with a modern winemaking culture.

In Italy the winemaking revolution has commenced and its rewards will become evident over the next ten years.

“Value will be valued”: Due to increased competition in the market, more high-quality and low-priced wines will generally be available.

”Diversity will be the word”: Quality wines will come from unexpected places like Bulgaria, Romania, Russia, Mexico, China, Japan, Lebanon, Turkey and perhaps even India.

Conclusion

In the modern wine market the Old world producers are seeing their share of the exports market decreasing rapidly as they start to recognise the urgency to change their mentality in order to challenge new competitors with strong marketing orientation.

In the recent years, New World producers have successfully taken market share from Old World competitors through a combination of successful factors. These are aggressive marketing and effective branding, consistent product quality and reliable supplies.

The Old World future ability to counter the ongoing threat from New World producers will depend on adopting an extensive marketingapproach: size, branding, distribution channels and new mergers in order to benefit from the new global economy will all play a fundamental role in determining its success.

 

This outbids Bill Gates and Microsoft who wants control of Yahoo to break Google's tight hold on the internet search engine and marketing markets. Google claim that Microsoft's bid might put free email and instant messaging services such as those provided by Hotmail at risk.

There are rumours that Eric Schmidt, Google boss, has approached Yahoo with a proposal that would help them fend off the advance of Microsoft. This is a massive battle of the giants. Competition laws prevent Google from buying up Yahoo totally, but they may be able to get what they want in other ways.

The news on the street is that Google may lend money to other potential bidders like Time Warner, or News Corp.

More than 50% of US internet searches are made through Google, with Yahoo in second place and Microsoft behind. There is so much internet power in the hands of these three companies that monopoly regulators in US and Europe are likely to be keeping a close eye on developments here.

Yahoo is still uncertain about joining forces with Microsoft to challenge Google's dominance.

The money discussed here around bids and counter bids, is like a giant game of internet Monopoly and less competition out there can only be detrimental to ordinary everyday users.

Another great example of competing companies has got to be gas stations. One gas station changes their price, and it starts a huge hurricane of competition to be the one with the cheapest gas, until one of the companies doesn't want to go any lower, and we have a winner!

Yet another thing that bugs me is being in the grocery store and having all of these different “fancy” products. For example, I want a bag of bagels, so I go to the bread isle, and what I see is as follows: extra flaky bagels, whole wheat bagels, white bagels made with whole wheat, white bagels with sesame seeds, whole wheat bagels with sesame seeds, and finally, extra large bagels. Where in the isle am I supposed to find a plain bagel? I don't want anything fancy I just want a bagel!

But of all of company competition, the one thing that absolutely bugs me most of all is when companies say that they are the best. Notice how nowadays, every product or company that is seen on T.V. is the best there is. Whoever they are, they have the best prices and they have the best quality. Most companies want you to go out of your way to save money. If you want to get five dollars of you have to go home, fill out a long form for a mail in rebate, Put it in an envelope, address the envelope, buy a stamp at the store, go to the post office and mail it, and then wait a few weeks for them to send you a check for five dollars. In my opinion, they know we are not going to bother, and that's why they make mail in rebates, it allows them to put a lower price on their flyer or ad, and then make more money at the cash register. That is my opinion on company competition.

This set of tools will also be useful to anybody who has an interest in designing, reviewing or reengineering business processes.

By using the tools provided here, you will be able to assess your present and likely future circumstances, determine what will provide the greatest benefit for your business and then make the decisions needed to make it happen. You will also be able to evaluate what impact your decisions are having and to take corrective steps if things don't turn out as you would have liked.

Unlike the cartoon below, what you will learn here is not all that difficult to understand and to apply. However, as is the case with this famous equation, there is a lot of power that I can help you to unleash - to the benefit of those who benefit from what your organisation does.

So, read on and, when you are ready, put The Decision Maker to good use.

How it all works

The diagram below (Figure 1) shows how The Decision Maker works. First, you need to know where you want your business or organisation (or team) to go. What is your vision or to use alternative phrases: what is your strategic intent? What are your business objectives? Where do you see your business in a year or two?

Then, you need to how you want to get there. You may have a business plan or a project plan or an idea of the means you want or need to use to achieve your objectives. If you do not have a business plan, you may just want to jot down - in the notes section at the back of this booklet - the five principal means you intend to use to achieve your objectives.

Figure 1: the decision-making model

The Strategic Navigation Model (Figure 3) is discussed and explained a bit later: it is the principal tool you will use to make the best decisions for your business or organisation.

We will then provide you with criteria to help you choose between competing options and, lastly, we will provide you with the means to constantly improve your decision-making, including a suggested reading list.

Let's start from the beginning, by discussing the art of decision-making, as it must be practiced in a changing, confusing and complex world.

This is a world where there are more charlatans than there are helpful ideas, more fake gurus than there are real leaders, more fads than there are lasting truths. Let's start to sort out the wheat from the chaff.

INTRODUCTION

There is no shortage of management “solutions” at present. The “solutions” are never cheap and they are never easy to implement. You have all heard of all or most or these and if you haven't, you will!

This is not an exhaustive list, but it will give you an idea of what is around:

• partnering
• the “learning organisation”
• accrual accounting
• risk management
• contestability
• outsourcing
• various leadership models
• Investors in People
• the seven (or eight or ten) principles of management/leadership/effectiveness/whatever….
• information mapping
• quality frameworks
• continuous improvement; and
• business process reengineering

Any of these familiar to you? I am sure you could add to the list, couldn't you?

How do you decide which of these things would be good for you, your business or your organisation? How do you decide whether any things are any good to you at all? Do you try each one and see how you go, wasting time and money in the process? Do you avoid them all, possibly missing great opportunities? Do you bounce from one fad to another, confusing staff and customers or clients alike?

The challenge is to design a framework that will enable you to assess the areas of management or business improvement that will contribute most to performance over the next several years. This is what The Decision Makertrong is all about.

THE APPROACH

The value of a “solution” should be determined by the extent that it addresses key weaknesses (i.e. real problems) without undermining existing strengths, (or the extent to which it provides substantial improvements to existing strengths). Neither you nor your business can afford to put effort and resources into activities that fail this broad test.

The test is simple, see Figure 2, below, at a very high or general level.

Figure 2: testing possible solutions

At this general level, the issues are:

1. what are the key areas in which the business/organisation must excel?
2. in each of those areas, is the business/organisation relatively weak or strong?
3. how can the current position of the business/organisation be established?
4. how can solutions be assessed and chosen?

This is interesting, but it is too broad to be useful. Figure 3, the Strategic Navigation Model, takes us to a greater level of detail, which is needed to make informed, effective decisions.

In looking at the model, please have in your mind a big decision you have to make or have had to make recently; for example, whether or not to replace a large piece of machinery, or a whether to purchase some new, highly touted computer hardware or software, or whether it is worth bringing in the expensive consultant your HR manager is desperate to hire. You get the idea?

The strategic navigation model

What follows are brief descriptions of the components of the model, which is pictured in Figure 3. You may want to have a look at the picture and then come back to the descriptions - but you're the boss, so if you want to do it the other way…go ahead!

The components of the model

The driver of the model is the organisation's strategic intent, which will change from time to time to reflect shifts in either the internal or external environments. The strategic intent is derived by asking questions such as: what business am I in? For example, am I in banking or in financial services? The answer can point to a very different set of risks and opportunities. Also, ask yourself what value you are providing to your clients or customers (internal or external, as the case may be). For example, am I providing acceptable quality at the lowest price? Or am I providing the best money can buy? Am I competing on price or timeliness or a combination? And so on.

If you need or want to get some more background in this area, there are many books that can help you. You may want to start with Competing for the Future, by Hamel and Prahalad (Harvard Business School); or On Competition, by Michael Porter (Harvard Business School); or Beyond the Boundaries, by Stace and Dunphy (McGraw-Hill). You can order all these books from any bookseller that specialises in business publications.

The planning process

The planning process contains an analysis of the current position, a method to form an understanding of the desired future position and an analysis of the gaps between the desired future position and the current position.

The deployment process

This process describes how things actually get done.

The capability development process

This process involves understanding the current skills and assets the organisation has, understanding what the future is likely to demand, plans to develop existing skills and assets so that they can meet likely future demands, and development plans for teams and for individuals.

The evaluation (learning) process

There are two parallel sub-processes here. The first sub-process starts with an understanding of the current operating environment, an understanding of the likely future operating environment, an assessment of the risk that future environment presents that are not dealt with in the current environment, and a plan to manage that risk.

Double-loop learning

The processes covered thus far involved single-loop learning - they enable the organisation to learn how to perform better. For example, having defined a desired future position, the organisation develops strategies to secure that position.

Important note

It is very important to understand that the model can be applied at the organisational (or corporate) level, at the divisional or business unit level, at the team or unit level or to groups. It can be applied to any segment of the organisation whose purpose can be defined with some degree of specificity.

This means that the model can be used by a team leader, a manager, an executive or a board or an individual entrepreneur. Of course, the level and scale of documentation will change according to the level at which the model is used. A large company will want detailed documentation and elaborate plans; a smaller unit or a small business will be content with much less. The model will work well either way.

Figure 3: the strategic navigation model

How does the model work?

As illustrated in Figure 4 (below), the model can be used to diagnose where an organisation or a significant component of an organisation is deficient. In the illustrated example, the organisation has not yet developed several key elements of various processes. Having identified what is missing, an analysis of the linkages, of the organisation's strategic intent and of the current operating environment can inform a process of prioritisation.

The model can also be used to design a new organisation or component of an organisation or to redesign what already exists. This is why it is a very useful tool for internal or external consultants.

If you want to use the model for consulting work, you may do so, provided you acknowledge the source and deal with the model fairly. Failure to do so may result in legal action, to protect the intellectual property concerned.

If you add to the model and improve it, we would appreciate being made aware of the changes and being allowed to use the improved version, in return for the chance to use the model in the first place.

Figure 4: example of the model in practice

For example, if the organisation is operating in a high-risk environment, preparing a risk management plan should take priority over developing a workforce development plan. Alternatively, where an organisation is intent on change that affects working conditions for staff, the workforce development plan may be accorded the highest priority.

To give you another example, if your focus is to provide personal client service, rather than the lowest cost product, you may want to invest in the capability of your staff (or partners) to deliver a quality service, rather than in a new computer system that will cut your costs by a small (though significant) amount. The question is, which of these choices will give you the best return on investment and the optimum position in the marketplace. Both these points must be picked up or you will lose.

By using this model it is possible to change the strategic intent of an organisation or its leadership without altering significantly the structure of the organisation. That is because the processes described in the model can deliver any output that is typical of any organisation. If these processes work, the organisation's structure can aid or impede the effectiveness or efficiency of the processes, but it will not stop them delivering the right results.

CHOOSING SOLUTIONS

Having ascertained where your strengths and weaknesses are, you will need a strategy or system to help us manage the volume of activity, sometimes contrary in intent and usually competing for scarce running cost dollars.

What follows is a process that will allow you to:

1. establish whether it has any discretion about implementing a particular internal or external “solution” and,
2. choose only those solutions that address problems, weaknesses, etc.

Figure 4: example of the model in practice

The first step is to establish the extent to which you have any discretion over implementation. The second step is to evaluate “discretionary” proposals.

5.1 CRITERIA TO EVALUATE PROPOSALS

Objective criteria need to be applied to all proposals before coming to the decision-maker (CEO, board and so on. The decision-maker would not consider proposals that do not meet the criteria. This would leave the decision-maker better placed to consider priorities and funding.

It is important to note that the depth of consideration of the criteria will depend on the scope, size and resource requirements of the proposal. It is it is intended that there be a common sense approach in this regard.

The suggested criteria are:

1. the proposal must address a well defined problem, issue or need (see above for discussion of identification of strengths and weaknesses)
   proposals will need to be able to prove that there is a definable problem(s)
2. the proposal should clearly identify the nature and extent of the problem, including the risks involved
   proposals will need to prove that there is a problem that is significant
3. the proposal should provide information about any solutions already in place to deal with the same problem, how long they have been going, how much they have cost and how they are working (against specific objectives/indicators)
   the proposal will need to prove that the problem is not already being properly managed
4. the proposal should identify and evaluate other potential solutions to the same problems:
   the proposal will need to prove that a range of possible solutions to the problem has been considered
5. the proposal must prove that the “solution” addresses the problem in a substantial way, including any leverage it might provide on other problems.
   the proposal will need to prove its capacity to address the problem.

With these criteria met, the decision-maker would be able to concentrate on relative importance/priority/merit and allocate scarce resources accordingly.

When companies like Ericsson announce progressive lay offs of twenty thousand staff, after a first quarter pre-tax loss of 5.4 billion Swedish kronor (US$500 million), you suspect that there is big trouble brewing. When a global giant like AOL-Time Warner announces a first quarter US$50 billion loss, your suspicions grow. It is no wonder that equities market melted around the world.

A quick perusal of the media might even have led you to conclude that the bricks brigade was justified in its belief that the fate of the clicks clique was sealed. Soon everything would be back to normal - as that word was understood in the business world for most of the second half of the 20th century.

It was (and remains) tempting to go along with that view, which is almost comforting in its implied certainty, its confidence that the world and the economy in the 21st century will grow and develop much as they did in the 20th century.

There is an alternative view, which we ignore at our great peril. That view is that we are at a point of inflection, a point from which even greater and faster waves of change are going to engulf and alter every aspect of our modern lives.

If we manage the transition well, the benefits could be considerable. For example, a credible study found that generalized use of e-commerce could increase Australia's gross domestic product by 2.7 per cent, around US$7 billion, by the year 2007. The prospects for the US would be comparable, as would be the case with any developed country.

Another study has shown that increased involvement by businesses in the Australian online economy would increase annual GDP by up to 2.6% and would also increase employment. Again, these findings would apply equally to the US economy.

This essay is an illustration of what an alternative view of our future might entail, as we move towards the middle of the first decade of the 21st century. We will start with a brief discussion of a fundamental and much misunderstood term, the new economy.

What is the New Economy?

The new economy is about the new tools, based on the acquisition and exchange of information, which enable new business models, industry structures and forms of organization. The emphasis is not on technology, but on modes of organization and on business models.

In the new economy, information and knowledge gradually replace financial and physical capital as the drivers of value creation. Information and knowledge are bracketed together because information per se is akin to an inert substance.

Information has no inherent power of action, motion, or resistance; one must add something to make it useful and that something is belief (in the form of expectations), derived from experience (or knowledge = information + belief).

The new economy is necessarily a global economy, developing beyond the range of international governance structures and challenging the form and the raison d'être that has supported nation states over the last couple of centuries. Countries themselves are being changed through economic pressure, while the emergence of truly global companies is leading to ever-greater size and greater capacity to challenge national governments.

The resources we need, particularly financial and human capital, are becoming more mobile. As a result, policy and industry changes abroad are being transmitted more quickly into our economy and society, increasing the pace of domestic change and decreasing the time for government policy responses.

In these circumstances, it is easy to see wisdom in the view that “governments should do much less…detailed short-term intervention...and [spend more time] thinking about the overall framework.”

What does this mean, in practice? It means that governments should be concerned with identifying fundamental frameworks and with building the national capability to navigate unpredictable and complex futures - for more than one possible future faces us, as we will see shortly. That capability may be described as a national innovation system.

Countries such as the USA and Australia are fortunate in this, as each country has some experience as a nation that would help to build such a system. Let us look at each country in turn.

Images of the USA

The USA is the largest and most powerful economy in the world and the most technologically advanced society. Throughout the middle and latter parts of the 20th century no one could doubt the strength of the US economy (and its military power). However, for a period that extended across the 1970s and the 1980s there was good reason to doubt the capacity of the USA to innovate.

Prior to the Clinton years, during the Reagan and Bush presidencies, the USA won the Cold War and became the only superpower, but the pundits saw these years as the prelude to the end of US economic supremacy. These were the years when most of us thought that Japan had usurped the place the USA had occupied as the pre-eminent innovator, and even Hollywood was impelled to present images of Japan rising, while the US star was waning.

The 1990s changed all that and, with the wisdom of hindsight, it was always going to be the case that the USA would remain at the top of the pile. Why is this so? As a visitor to the USA and as an observer of American society and culture, rather than a resident, my belief is that there are identifiable factors that drive innovation in the USA.

The first is history, as manifested in culture. The USA was settled and created by entrepreneurs and by non-conformists - though some of the latter proved to be conformists in disguise, starting with the Puritans. The process of conquest and settlement has created a myth that drives and sustains American self-confidence and fuels a risk-taking culture. Americans do not shun failure, as Australians do, for example. Being a bankrupt in a sunrise industry can be a badge of honor in the USA if failure was the result of a daring and innovative approach to business.

Then there is demography. Thanks to the continuing influx of migrants, especially Latinos, the USA remains a young nation and youth generally prevails over age and wisdom in the innovation stakes. Also, the American melting pot continues to provide opportunities for diversity and diversity is another important ingredient of innovation.

Thirdly, there is size. The sheer size of the American economy generates innovation. It is possible for the US economy to support a thousand flowers blooming, with the expectation that at least a few will provide an opportunity to make a buck. Smaller economies cannot afford this luxury; every dollar counts and small economies do not attract much investment to start with.

Let us not forget government. The US Federal Government is a powerful driver of innovation. Without US tax dollars spent in defense-related industries, such as aerospace, the USA would not be the creative powerhouse that it is today. Government purchasing funds large companies, which, in turn, fund large R&D efforts, knowing that, eventually the wheel will go full circle and that the US Government will purchase the innovations the R&D labs turn out.

Lastly, there is education. One might debate whether the average American is well educated, if a liberal education and awareness of the world beyond US shores were the benchmarks. However, the US university system is the best in the world and produces growing numbers of bright, knowledgeable and entrepreneurial graduates, outpacing any comparable system elsewhere. Moreover, because US universities are so well enmeshed in the world of business, there is synergy between educational and business objectives that benefits both.

I may have missed some factors, but I think the images I have chosen tell the right story, as they explain why the US innovation system is and is likely to remain the best in the world. Let me now offer a contrasting view, by painting a sketch of the country where I live, where I am not a mere observer.

Images of Australia

There is a pervasive view here and abroad that while Australians are early adopters of new technologies, Australia is not a “new economy”. Australia is generally regarded as an old economy, relying on primary industries or manufacturing to support its relatively high standard of living.

This is not helped by the images we project abroad. From Nicole Kidman to our golden beaches, to the Outback to selling our wines and our lamb and so on, our promotion of Australia abroad is in line with the view that it is a land of milk and honey, the proverbial lucky country - not a go-getting, entrepreneurial, knowledge-based society.

A factual example might help us to understand what is actually going on. In Australia ten years ago, mining, agriculture and manufacturing stock made up 74% of the stock market's value, with finance and services stock adding up to only 26%. Those proportions have reversed in the last decade, with mining, agriculture and manufacturing making up one third, and finance and services stock two-thirds.

Another pertinent fact: Australia is one of the leading countries in the world in terms of Internet infrastructure, penetration and use. According to benchmarking studies Australia was ranks highly in the world, together with countries such as the United States and Sweden.

Don't misunderstand me, it would be foolish not to sell Australia as a great tourist destination and exports of primary or manufactured products will continue to be very important economically and socially, even in the 21st century.

However, if Australia wants to attract the level of interest and investment required to build our future, it needs to project a more complex, sophisticated image. Australia needs to establish itself as a unique tourist destination, as a producer of resources for the world, and as an innovator in technology and its economic and social uses.

In the words of Michael Krokenberger, the 21st century will require us to build a “cool, light and dry economy”, based on “innovation, knowledge, doing more with less, value adding, being clever”.

This is not new for Australians - and there are lessons here that can be replicated elsewhere.

Building on Old Virtues

Over the years, Australians have pioneered many imaginative solutions to social, cultural, political and technological problems.

The Australian bent for innovation is due to many causes, including the circumstances of the original settlement by Europeans. The harshness of the natural environment, the fragility of the soil and the scarcity of water, together with the blend of many cultures that have settled in Australia, have demanded creative problem solving. Australians have a talent for crafting ingenious solutions to complex problems.

Some solutions responded to uniquely Australian problems, like the stump-jump plough for agriculture. Other great Australian ideas had more universal application, like the black-box flight recorder for aircraft. Many of these innovations have been widely adopted in other countries, often in societies that are larger, wealthier and more powerful than our own, such as the USA.

Australians do not innovate for the sake of novelty or in an effort to be different or to impose their preferences on others. They take a hard nosed and pragmatic approach, focused on realizing the undoubted social and economic benefits technology makes possible. The School of the Air and the Royal Flying Doctor Service are good examples of the positive results that can be obtained by marrying technological solutions to social needs.

A Vision for the Future

How is all this relevant to the rest of the world? Wherever we may be, we live in a global economy. All nations are in competition for the resources needed to make the transition from a traditional to a knowledge economy. There are global competitors, such as the US, the EU and Japan, and regional competitors such as, for example, Australia, Singapore, Korea, and Hong-Kong.

To be effective competitors, developed economies must position themselves as knowledge/service economies, in a world where other economies are catapulting over historical barriers to catch up to us and to overtake established leaders.

If this were a race, then first place would not be in doubt; it belongs to the USA, at least until the latter part of the 21st century, when China may return to the central position it has occupied for most of history. That leaves the rest of us to compete for minor placings, or, alternatively, to avoid oblivion, in the shape of cultural, economic and technological stagnation.

The world is changing fast. Ireland's GDP per head is now higher than Australia's, as is Singapore's. On the other hand, New Zealand, which used to be level with Australia or thereabouts is now way behind economically. Similarly for Argentina, powerhouse of the early 20th century and consigned to the economic doghouse in the early 21st century.

Every developed country has a choice to make: do we go forward, as the Irish have done, or do we stand still, as New Zealand and Argentina have done?

The Foundations of Positive Change

The aim in developed countries should be to promote competitiveness and participation in the global economy. This encompasses both social and economic objectives. There is a strong synergy between economic objectives (“competitiveness”) and social objectives (“participation”), because a sophisticated demand side is crucial to the development of an innovative indigenous knowledge economy.

As more people go online, the network externalities inherent in the technology grow, as do the chances of achieving a critical mass of online activity. Greater cultural receptivity to technology and its uses is likely to engender both greater demand and greater capacity, in a virtuous cycle.

Among its competitors, Australia has some inherent advantages. Australia has low research and development costs, relative to at least some competitors, and relatively sophisticated business service markets. Australia also has a sound regulatory framework - which may prove to be a growing weakness for the USA in the wake of Enron, WorldCom and so on - and an improving environment for competition.

However, smaller economies (such as Australia or Belgium or Thailand or Chile and so on) face significant challenges.

The scale and depth of markets for capital, skills and other resources are small compared to the USA or the EU. This means that countries need to specialize, but without painting themselves into a corner, without ending up in an “ecological” dead end. Australia, in particular, is a long way from the key global centers of economic activity and corporate decision-making - small countries need to compete for notice, for a place at the tables where decisions are made that will shape the future of the world.

Although Australians regard themselves as innovative, translating that into economic and social gains is hampered by a risk-averse culture (hence the importance of cultural receptivity). There is also a negative feedback loop between scale and capacity to manage risk.

The Keys to the Future

In most developed countries, government and private sector activity has focused on the supply side of the knowledge economy equation. For example, Australia has a deregulated telecommunications market and a legal and regulatory environment that facilitates the deployment of telecommunications infrastructure and the development of new communications products and services.

The Australian Government has also provided financial assistance to commercially disadvantaged communities to enable the deployment of telecommunications infrastructure.

In recognition of the potential demand that exists in such an environment, industry must continue to develop new products and services for electronic commerce, security and authentication, mobile communications and general information management. The telecommunications carriers must continue to deploy infrastructure (including broadband), but only in response to known demand.

With all that, the rate of increase in Australian households going online is declining as the number of connected, technically literate households reaches saturation point. All countries will reach this point, even the USA.

If the objective is continuing economic growth and increasing community connectivity, the emphasis must shift to the demand side, to focus on the needs of users of the technology, rather than the suppliers.

One of the main challenges for industry and government is to identify value propositions for users. New products and services need to be tailored to the community and be compatible with users' lifestyles. The technology must integrate itself into the cultural and social fabric and at the same time immerse people in it.

This kind of top down and bottom up integration is not easy to achieve. However, the development and widespread adoption of compelling applications in fields such as health, education, community development and entertainment will drive the further development of the knowledge economy.

To achieve this, application providers need to go beyond “digitization” and automation of existing services, to exploit new capabilities. There is a need to move beyond applications and content generated for the high user audience of males aged 13-25 years, those working in the high tech sector and white collar workers in IT intensive industries.

For this to happen, it will be necessary to tap into the needs and lifestyle expectations of retirees - a fast growing group with an interest in leisure and quality of lifestyle and recognize the trends in consumer demand towards greater customization and interactivity, giving communities the skills and tools to directly participate by making their own content. After all, what is relevant for most of us is what's happening in our local community.

This level of online adoption would embed the technology into the day-to-day lives of families and communities.

New Challenges

There are two main challenges facing the industry in the identifying and development of compelling applications: a shortage of widespread, affordable broadband infrastructure; and the apparent lack of commercially viable market for new, high-bandwidth content products.

In a deregulated market, telecommunications carriers will deploy broadband infrastructure only where there is sufficient demand. In the current environment, few risks are taken with demand forecasts and rightly so. Content publishers will purchase high-bandwidth, sophisticated content only when it is profitable to do so.

These challenges give further emphasis to the need for applications developers to identify and provide products that are culturally relevant and compatible with peoples lifestyles and have high levels of “embedded value” - these are “compelling applications”.

The development of compelling applications will require increased interaction between the technology and the creative sectors - between the scientists and engineers and the designers and artists - to encourage innovation and creativity.

There is also a challenge for government - national, state and local - to ensure that the decisions made in the past do not shackle innovation. Existing networks of interests, public and private, will and must come under pressure, as the new economy reshapes value chains.

The future will be better served by focusing on innovation, creativity, and on forging partnerships across traditional boundaries.

Creating the Future

Developed countries will want a diverse, creative, innovative and financially successful communication industry, where value is created through content and where business models drive technology - and are not driven by regulation. We all want communities and individuals to have access to the content they want, at a price they are prepared to pay. The means of delivery should not be a concern for the user.

We need service providers selling packages of services tailored for each market, with options tailored for individual preferences within those markets. The same range of services may be delivered by broadband Internet in one location, by digital television in another, and by a combination of technologies in yet another.

We may need regulations governing gambling, adult content and spectrum management, but the rest could be left to the market and to general legislation protecting privacy, intellectual capital and so on. The incipient regulation by stealth of the online entertainment in the USA may well be rued by those who want to grow the market, rather than short-term shareholder profits.

A diverse mix of communications technologies is the key to universal access. It may well be the case, for example, that cable services dominate in large cities where a large proportion of the populace is wired and technology savvy. Meanwhile, retirees in Florida may prefer high definition entertainment programming based on digital broadcasting infrastructure. Sports fans could keep up with their chosen sports by watching multi cast subscription television, by cable, satellite or whatever means is best in each area.

It may not be enough that many of the above services are currently available via the Internet. For example, Australia has one of the highest Internet penetration rates in the world, but Australian Internet take-up rates have slowed and may plateau at around fifty per cent, leaving a sizable proportion of the population without access to networked technologies.

Service delivery via the ubiquitous television set would not be a panacea, but would increase penetration significantly. The objective should be to ensure that people can gain access to government services through a selection of means appropriate to each community and the individual selects the means of delivery, as well as content. Commercial interests could value add to free government services, providing packages tailored to consumers.

For example, a small business may combine e-commerce capability with entertainment for the family and the capacity for narrowcast advertising in the local area. A local government authority may use its service delivery platform to provide services to ratepayers and to service small businesses in the area, in association with a commercial provider that provides access to the “outside world”.

To sum up, while the challenges before us are great, the possibilities are endless, flowing from an orderly transition from the regulated, technology-focused world of today to a world where the focus is on consumers and on content. In the USA, as well as in Australia, the future belongs to the innovators, not the regulators.

References:

• Ananova.com
• ABC.net
• NOIE.gov