Knowledge@Australian School of Business - Video Interviews

A two-year study into the services sector – where 85% of employed Australians now work – shows intangible factors, such as progressive leadership, the employee experience and innovation, may have a far greater impact on an organisation's profitability than old-school number crunching, cost-cutting and capital considerations. As manufacturing dwindles in significance, a shift in focus to intangible attributes presents the new way forward for employers. Now the federal government-funded research project – led by Christina Boedker of the Australian School of Business –  is moving into phase two to develop intervention strategies to find effective ways to improve productivity, a field in which Australia is leading the way.

Sources of innovation have exploded over the past decade as companies no longer look internally for bright ideas but also tap into the public's smarts via the Internet. The possibilities are seemingly infinite, so pinning down exactly which next new things to develop requires a clear understanding of the big picture. Patrick Medley, managing partner of Global Consumer Products at IBM Business Services, identifies three game-changing trends coming from the evolution of smart phones – the gadget of the future – and cloud computing. It's early days yet, but could the days of the PC really be numbered?

Entrepreneur and innovator Michael Crouch, chairman and CEO of Zip Industries, once saw a big opportunity in a small white box with red taps. By fostering an innovative spirit and daring to be different, his business created the world's first instant boiling water system. Today Zip water heaters are in service in the royal household in Buckingham Palace and numerous offices and factories across the globe. Innovation – as an ongoing process and vital mindset within organizations – has become Crouch's driving passion. In an interview with Knowledge@Australian School of Business, he outlines how it could apply heat to Australia's tepid productivity record.

The cost of the devastation from Australia's recent natural disasters is still being counted. Floods in Victoria and severe storms on both sides of the country, along with the earthquake damage in New Zealand, have impacted on the lives of thousands. Strangely enough, these events often occur in clusters which means insurers are also hard hit. But, these days insurance companies can transfer their risk to the capital markets through catastrophe bonds. With these relatively new assets increasing in popularity, Julian Lorkin of Knowledge@Australian School of Business asks Morton Lane, head of the financial engineering program at the University of Illinois, about insurers' latest means of passing on risk.

From video games to remote surgery, virtual possibilities abound. In workplaces, distributed teams and simulations are considered smart productivity-enhancing ways of tapping into new technologies. However, the virtual world needs a reality check, argues Stanford University's Stephen Barley, an expert in the impact of new technologies at work. Cutting edge it may be, but virtuality is not directly reducing costs for business, instead it's increasing accuracy and accelerating turnaround times. At an Australian School of Business seminar, Barley outlined the upsides – and downsides – of succumbing to the lure of the virtual.

It's a year since the release of the report on Australia's Future Tax System Review, headed by recently retired Treasury chief Ken Henry. The review was just the start of the Labor Party fulfilling its election promise of a "root and branch" overhaul of taxation. But one year on, not many of the review's 138 recommendations – including a resources rent tax, a 5% cut in company tax and a leap in the personal tax threshold – have been enacted. However, review panel member, John Piggott, an economics professor at the Australian School of Business, says there are positive early signs of change, and several decades for reform.

Australia's superannuation savings may be the envy of the world with A$1.23 trillion now in the pot to help its ageing population live more comfortably in retirement. But Australia's approach to retirement saving is only half right, according to David Blake of the UK's Pensions Institute, who spoke at a recent Australian School of Business conference on longevity risk. Substantial super savings may have helped the nation to weather the financial crisis, but they will not go the distance as people live increasingly longer lives. It's time for Aussies to hedge their risks, and annuities are the way to go.

The latest novel push by authorities to bring more international tourists to Australian shores seems oddly timed. With the Australian dollar running at record highs, some suspect it will backfire. However, Larry Dwyer, a professor of marketing at the Australian School of Business, anticipates the opposite may happen. The new marketing drive may raise the consciousness of locals to the appeal of holidaying closer to home and, with domestic holidays accounting for 75% of tourism down under, this may be just the boost the industry needs. But this is no time for complacency, Dwyer cautions. Australia must look beyond its traditional attractions and focus on promoting a range of valued experiences for travellers.

Many of the world’s economies are still struggling to recover from the global financial crisis. The threat of a crisis Mark II is not out of the question, though it’s unlikely, says Anne Krueger, a former chief economist of the World Bank, and first deputy managing director of the International Monetary Fund from 2001 to 2006. Speaking at an Australian School of Business forum on global competitiveness, Krueger evaluates efforts to untangle the aftermath of the crisis and determines that there has been too little action, too late.

Australia, with its sound and well-managed financial system, stands to reap significant benefits from the economic growth in Asia. But a key question remains: how should Australia position itself in the Asian century? Reaching a consensus on this is crucial, according to Masahiko Takeda, deputy director of the International Monetary Fund in the Asia Pacific, and the fund’s division chief, Cheng Hoon Lim. The IMF experts acknowledge that the Aussie dollar is presently overvalued. Nonetheless, at a recent University of New South Wales forum, they insisted that there are plenty of potential opportunities for Australia in the Asian region.