Beyond the CEO - Driving Innovation and Growth
I've been contemplating the significance of innovation in Australian manufacturing lately. While we may refer to ourselves as the "lucky country," I'd argue that we’re actually the "innovative country."
Many are familiar with Australian-born inventions such as the electronic pacemaker, the black box flight recorder, and Wi-Fi. But it might surprise you that Google Maps, now used by billions daily, originated from a Sydney startup acquired by Google.
In an era where we increasingly import manufactured goods, like those in the automotive sector, I believe our competitive advantage for manufacturing lies in greater innovation.
Throughout the past year, I've had the privilege of collaborating with highly innovative companies producing everything from medical devices to farm equipment. These organisations excel not only in manufacturing but also in research and development, which sets them apart on the global stage.
But we can’t afford to rest, lest be left behind. That's why I'm advocating for the introduction of a new leadership role in high-growth Australian SME manufacturing businesses: the Chief Entrepreneur.
Admittedly, the Chief Entrepreneur isn’t a new idea. In the second episode of my new podcast, Manufacturing Tech Australia, Brad Parsons, member of the CSIRO Manufacturing Council Advisory Committee and Founder of Movus - an Australian company using IoT sensors and AI to optimise preventative maintenance - described the Chief Entrepreneur as a peer to the CEO, whose primary responsibility is "building the business of the future."
You might be wondering, "Why change if my business has been successful for years?"
A study by Innosight, a growth strategy consulting firm, revealed that the average lifespan of companies listed on the S&P 500 Index has been decreasing. In the 1960s, it was 33 years; by 1990, it dropped to 20 years. The study projects that by 2026, the average lifespan will further decline to just 14 years.
This trend underscores two key points:
In an era of rapidly evolving technology, continuous innovation and reinvention in both products and business models are crucial for maintaining a competitive edge and ensuring survival.
Our planning cycles must become shorter; Brad suggested that the world is shifting from five to ten years to a more agile three to five-year timeframe.
Granted, many Australian manufacturing businesses invest heavily in R&D and execute effectively under a CEO; but I’d argue that innovation extends beyond R&D and many organisations will soon be left behind.
For the CEO, simply balancing management, strategic direction, and day-to-day operations can be overwhelming. Furthermore, the mindset (and arguably skillset) required to disrupt your own business and truly innovate differs significantly.
The Chief Entrepreneur acts as a catalyst for change, championing innovation, fostering a culture of creativity, and ensuring the business remains agile and adaptable in the face of constantly evolving market conditions. Innovation encompasses more than just the development of new or enhanced products; it also involves recognising disruptive opportunities within the industry and future-proofing the business by adapting business models and establishing strategic partnerships with external organisations like startups, research institutions, and other industry stakeholders.
I believe that by establishing this role within Australian SME manufacturing businesses, we can better position ourselves to excel in the global market and uphold our reputation as the innovative country.
What are your thoughts? Is this a promising concept or an unfounded concern? How do you plan to foster innovation and challenge your own business models in the future? I'm eager to hear your insights.
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