AUSTRALIAN SCHOOL LEAVERS ONLINE MAGAZINE
l o o h c s Leaving
...for your best future
.com.au
2014
July-Sept
EDITION
FREE eBOOK!
How to be Resilient – by Stacey Copas
time to future-proof
Australian entrepreneurship
preparing for uni advice on what your careers counsellor didn’t tell you
CQUniversity reasons to choose to study at CQUniversity
Kids At Switch is it time you switched your thinking?
ool Leaving sch.com .au PUBLISHER
leavingschool.com.au CREATIVE DIRECTOR
Stephen Sutherland GRAPHIC DESIGN + LAYOUT
Rhiannon Brown EDITOR
Jeff Gilling
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WHAT IF IT ALL GOES WRONG? How to handle and overcome setbacks
CONTRIBUTORS
> Stacey Copas > Jeff Gilling > Jamie Lee > Renata Cooper ADVERTISING
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STACEY COPAS – HOW TO BE RESILIENT Free eBook for Leaving School readers
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10 AUSTRALIAN ENTREPRENEURSHIP Ideas to ensure future economic growth
PREPARING FOR UNI Advice on what your careers counsellor didn’t tell you
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34 THE IMPORTANCE OF BEING PREPARED A lesson on adapting to change
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WHY CQUNIVERSITY Reasons to choose CQUniversity next year
JULES LEABRES What you should know before you leave school
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KIDS AT SWITCH Is it time you switched your thinking?
What if it all goes wrong? – Stacey Copas
There can be a lot of pressure at this time in your life. It is a lot to take on and it can be totally overwhelming. As you make the transition to life after school these pressures will increase. The reality of the matter is that things can go wrong and it is important to learn how to handle and overcome setbacks.
What if I choose the wrong path? What if I don't get the marks I need? What if I don't get into uni and what if I can't get a job? What if I get the courage to ask out the person I like and they say no? A lot of what ifs aren't there? The reality is things are going to go wrong and your plans won't turn out exactly as you would like. You will face rejection and disappointment. Right now you're probably thinking who let this article through? Don’t worry there is an upside to this.
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The good news is that there are things that you can do to make sure that when the wheels do fall off that you're resilient and optimistic to see the opportunity in an otherwise negative situation. Resilience is the difference between believing that it is all too hard and giving up or looking for what you can learn from it and use to your advantage. First thing to do is find the right support. Notice I said “right” support. Be sure to have people in your life who
will encourage and inspire you to keep following your dreams even in the darkest times. It is said that you become the average of the five people you spend the most time with, so take a moment to think about who those five people are. Think about the person you want to become – do the people you are around most have the qualities and lifestyles that you want to have? If not it is time to upgrade! It doesn’t just have to be the people you physically spend time with. It can be the books you read, what you watch or what you listen to. Respect yourself and make sure that everything you take in is of high quality. The better your input the better results you will see. Second thing is to take personal responsibility for your life and where you want it to lead. You are the master of your destiny – step up and accept the role. Make “if it is to be, it is up to me” your mantra. Have faith and belief in your ability to be the best person to take direction of your life. It is so
much easier to blame others or to have a sense that the world is unfair and owes us something. It doesn’t. You owe it to yourself and your future to take control rather than sit back and let things happen to you. There may have been things happen in your life that you feel gives you an excuse for not succeeding. Excuses are lies that we tell ourselves. Look for reasons to succeed rather than excuses to not. The third thing you need to be resilient and succeed in spite of adversity is to find purpose and inspiration in your life. Too often we feel that we’re just one little person and we wonder what possible difference we could make. Take a moment to think about the people you admire and what they have achieved. Like you, they too were just one person who at some point felt they were too insignificant to make a difference – but they got started. Think about what is happening around you that upsets you. It could be animals being treated badly, it could July –September 2014
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going through life with regular challenges and setbacks is setting a firmer foundation for your success be young people who are living on the streets or it could be seeing your elderly neighbour struggling to mow their lawn. There is something you can do with very little of your time to make a difference in these situations. Helping others is the quickest way to get out of feeling hopeless about your own situation. The reality is while it would be easier to go through life without challenge and adversity the longer you do this the harder you are going to fall when something does go wrong. Whereas going through life with regular challenges and setbacks is setting a firmer foundation for your success so that when something major does go wrong you’re equipped to deal with it. As Charles Darwin said “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”
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AL I C E SP R E F F O
free eBook for Leaving School readers Why This Book? Things go wrong. It is just a matter of when not if. How you react to challenges is going to determine your level of success and achievement. Whether you would like some strategies for getting great results under pressure in business, sport or life in general, this book lays out simple to implement strategies that are practical, relevant – and best of all that work. Learn how to rise back up when life knocks you down.
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visit staceycopas.com/leavingschool
Exciting, challenging, the next step in the rest of your life... starting university is all that, but it also has its shortcomings. Sheknows.com.au shares some advice on what your high school careers counsellor didn't tell you.
preparing for your ďŹ rst year of uni
Lectures will be boring Sometimes, you'll come across a lecturer who has the gift of the gab. They can make even the most mundane first-year subjects sound fun and have a way of keeping you awake and interested even after you've just rolled in the door from the best party of your life. The rest of the time, you'll get lecturers who are first and foremost academics — they may not be great with people, they may be a tad dry and the subject matter they're teaching really doesn't get interesting until you're in your second or third year. Try to pay attention as these people do know what they're talking about and have a lot of knowledge to impart. If you're really struggling, focus on your tutorials instead — this is where most of your learning will take place, so if you find yourself zoning out during lectures, make sure you pick up the slack by attending all your tutes.
Textbooks are expensive Think your course fees are bad enough? The cost of your textbooks — especially if you insist on buying brand new ones — will quickly add up. If you're on a tight budget, go second-hand and get in early as they'll sell out before you know it. Earlier editions of required readings are fine for most courses, even if your lecturer says they're not, so long as you pay attention in class and are happy reading up on any missing material in the library.
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you might not like it Did you know that one in every five students will drop out of university in their first year? According to Professor Karen Nelson, a specialist on student success and retention at Queensland University of Technology, high attrition figures are a big wake-up call for universities. "Students who arrive under-prepared emotionally, socially or academically for the demands of university life are at a higher risk of quitting," she says.If you're fresh out of high school, living away from home for the first time and learning to study independently, it's okay to feel like you're struggling. But if you start to feel like you want to chuck it all in, think long and hard before you do. Many students struggle during their first year and a number find the subject matter boring and unstimulating. If you're really passionate about a certain career, stick it out — you'll find your subjects will get a lot more interesting in the latter years of your degree.
Failing will not kill you Failing a unit happens to thousands of university students every semester. If you've never failed before then your first fail may come as a shock. Chances are you'll feel pretty upset, angry and disappointed. But the important thing to remember is that failing a unit will not kill you. In fact, it'll make you stronger. If you think you might be failing, get help early. Talk to your lecturer, your tutor or your campus counsellor and find out your options. You may be able to apply for special consideration, sit a supplementary exam or complete an additional assessment. If you do fail a unit then take a deep breath, look at how you studied and sit the unit again. Get back on the horse and charge forth.
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Time will fly Between classes, parties, coffee dates, new romances, tutorials, library sessions and campus sports, your first year of uni will fly by. Make sure you have a solid study timetable in place at the start of semester one or you'll find yourself struggling come exam time. At the end of the year, look back with pride at all you've achieved, enjoy your summer and get ready for next year.
July –September 2014
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It’s Time to Future-Proof Australian Entrepreneurship – Renata Cooper
The Australian economy is at an interesting period of transition. While the spirit of entrepreneurship and innovation is alive and well in Australia, some fundamental changes are needed to the system to ensure ideas fuel future growth.
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he Australian economy is at an interesting period of transition. Announcements of job cuts at Qantas, closure of both Holden and Toyota’s Australian plants, and SPC Ardmona’s call for help have all put serious dents in the validity of our manufacturing (and economic) future. The slow extinction of mining, which has been fuelling recent growth, adds another dimension to the economic outlook. PricewaterhouseCoopers (PwC) recently noted that Australia’s economy is likely to fall out of the world’s top 20 by 2050. Looking at where growth will come from in the next 20 years, Deloitte have
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predicted gas, agribusiness, tourism, international education and wealth management will step up to fill the gap left behind by mining. Economists believe that entrepreneurship and diversified spread of sectors will be key to shaping our financial future. If this is to be the fact that, and only, 50% nascent firms even reach operational stage needs to change. With the SME sector in Australia employing 70% of the workforce, it is crucial for the country to sustain and grow the entrepreneurial community. While the spirit of entrepreneurship and innovation is alive and well in Australia, some fundamental changes are needed to the system to ensure ideas fuel future growth.
Deciding on a future career? Use our career profiler to discover your dream job based on strengths and personality. www.acu.edu.au/mycareer For For support support or info info call 1300 ASK ACU ACU or email futurestudents@acu.edu.au futurestudents@acu.edu.au
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Innovation vs Success
Perception of Failure
Australian entrepreneurship is ranked high globally with 2011 Global Entrepreneurship Monitor (GEM) placing us second behind the US. However, we rank 20th in the OECD in terms of patents per capita, which accounts for less than 0.8 per cent of the world’s patents. Given the low long-term success rates of most businesses, definite steps need to be taken to foster entrepreneurs and innovation at a fundamental level. Mentorship, increased government involvement, more support from banks and other financial institutions will all help the long-term commercialisation of ideas. While start-ups need help in navigating the initial tough years, small businesses need support that gives them confidence to grow and maintain operations locally.
According to PwC, “fear of failure” is more common in Australia than in the US. Being risk averse and viewing failure as a bad thing is a trait that sets us apart from entrepreneurs in other developed economies. The discussion of possible failure and steps to address it should be encouraged rather than shunned. Many entrepreneurs cannot make their first idea stick, give up and get back into the workforce as an employee assuming business isn’t for them. Entrepreneurs tend to fail because of lack of proper preparation. Failure needs to be reflected upon so you can get it right the next time. Was the product right for the market? Could it have been priced differently? Were you competitive? How much research did you do? Were your expenses and investment significantly higher than your returns? Not every idea is brilliant and failure can teach us a lot. Reflection on the mistakes of the past gives us the opportunity to learn and get it right the next time.
Funding Changes
Importance of Education
Funding models in Australia need to change on two intrinsic levels: 1) increased awareness of and requests for funding by entrepreneurs at nascent stage and, 2) more funding available at VC stage. Over 70% of nascent firms seek external funding in the initial stages, choosing instead to use their personal savings and credit cards to fund their idea. We need more education on entrepreneurship at a general level (addressed in the next point) so innovators across the board know how to get funding at start-up stage. On the other hand, Australia regularly loses smart innovators and successful businesses to the US (especially tech start-ups) due to lack of a mature venture capital (VC) market. While it is easier to start a business in Australia (compared to many other countries) and the network of angel and VC investors is growing, we still have a long way to go in – especially in supporting businesses that need over $5 million in capital. It is the rare successful global business such as 99designs that has managed to maintain a presence locally whilst sourcing funding from the US.
The University of Western Sydney recently started a first-of-its kind program called ‘The Academy’ where students were brought together from different disciplines (medicine, law, arts, etc.) for common academic learning. The program shapes new leaders of tomorrow by teaching them skills that transcend sectors and specific roles. It teaches them to be achievers regardless of changing economic climates. Likewise, a fundamental change is needed in the education system to teach all students about entrepreneurship. Beyond business schools, entrepreneurship has not been promoted well in academic curriculum across all levels from high school to universities. This has to change if we want more innovators to create successful businesses that stay on Australian shores. Entrepreneurship needs to transcend from innovation and starting a business to creating a change in society and remaining relevant not just now, but in the future.
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Why CQ University?
Choices, choices, choices. Thinking about life after school can be scary. There’s so much to consider from what career you should be working towards to what you should be studying and what educational institution is the right fit for you. While there’s plenty of information out there to help you with career and study decisions (you may even consider seeing a career counsellor), finding a university or TAFE that is right for you can be a tough choice. Universities and TAFEs come in many different shapes and sizes, and while they all have their benefits, there’s one Australian institution that promises a comprehensive approach to your education and training. CQUniversity Australia is a national university with locations stretching from Cairns in the north to Brisbane and Sydney in the east, Melbourne and
Adelaide in the south and Geraldton in the west, and although it’s one of the fastest growing universities in the country, CQUniversity is still a regional university at heart. What does that mean? It means that it values its student’s experience; it promises personal attention with small class sizes and fantastic staff to student ratios; and it offers study options to students who may not otherwise have the opportunity to study at a uni, including the delivery of many programs via distance education. On July 1, CQUniversity merged with central Queensland’s vocational education provider, Central Queensland Institute of TAFE, delivering a new era in education and training. CQUniversity has become a more comprehensive university, offering a wider choice of programs July –September 2014
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Students now have more than 300 options to choose from, from short courses, certificates and diplomas to undergraduate, postgraduate and research higher degrees. and qualifications with seamless pathways into further study. Students now have more than 300 options to choose from, from short courses, certificates and diplomas through to undergraduate, postgraduate and research higher degrees. So what does this mean for students? It means that it is easier for vocational students to move on to degree-level study and it also means that degreelevel students can pick up vocational skills along the way. For example, a prevocational student could consider upgrading their qualification with a Bachelor of Engineering, or an engineering student may choose to study a vocational unit in welding, if
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they are looking for a career in the mining sector. Students can also benefit by selecting to complete a diploma in early childhood education as part of the first year of a Bachelor of Education – meaning they can gain work in the field before completing their degree. These are just two examples of the exciting pathways available at CQUniversity. Let’s face it, life is full of choices but making the right decision is sometimes difficult. However, with more comprehensive and flexible study options than ever before, the decision making process for choosing the right university for you has never been easier.
Studying from a distance Many CQUniversity students decide to study from their home base, rather than attend lectures and tutorials on a campus. It often allows them to have a job, continue to live at home, save money for the future, and to keep existing social networks intact. CQUniversity is a leading provider of distance education in Australia and is a pioneer in offering supported distance learning having established several distance education study centres in key locations around the country, taking the distance out of distance education. What’s more, CQUniversity offers many exciting programs by distance education including law, engineering, nursing and midwifery, and paramedic science to name just a few.
where to live Thinking about studying in central Queensland, but you’re not sure where to live? Living on campus at either the Rockhampton or Mackay Student Residences provides a fantastic option. You won’t have to worry about the costs associated with a rental property, such as electricity or bond, and conveniently classes are only a short walk away. The Mackay residence is self-catered accommodation, while the Rockhampton residence offers three meals a day. Living in a student residential community can be one of the most rewarding experiences you will have at this time of your life.
Student support CQUniversity students should never feel alone throughout their experience. The University provides students with academic advice and guidance to become the confident and independent learners they’re destined to be, or when they need help with academic writing, computing, maths or science. It’s like having a personal tutor at your fingertips. Other support services include career guidance, disability and equity support, personal counselling and student mentoring. July –September 2014
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Katie middleton steps up to deliver fitness challenge to gladstone When personal trainer Katie Middleton moved to Gladstone, Queensland, she was planning a year of full-time study, to focus on her Bachelor of Health Promotion at CQUniversity. But Katie’s dream to help get her community fighting fit has seen the 21year-old start her own business, offering fitness training priced for the student budget. And Katie says her work and study are the perfect combination to build her perfect career – delivering health and fitness education to schools. “It’s really upsetting to see kids who don’t even like exercise, and knowing it’s just they haven’t been given the opportunity to get involved and excited about it,” she said. “I was overweight as a child, but I got really fit when I got into sailing – and I’ve been into fitness ever since. “Having great coaches, and great support, really made the difference – I want to be able to give that to kids.”
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After finishing high school in 2010, Katie took on Certificates II and III in Fitness at ACP. While completing the Certificate IV at Shellharbour TAFE, she also took on a job as a personal trainer, gaining qualifications as an instructor for a raft of training programs. While her sailing involved national and international competition, Katie took a break to study last year, beginning her degree at the University of Wollongong. This year, she transferred to CQUniversity after moving to Gladstone – and chose to study by distance education. “Having that option makes managing work and study a lot easier,” she said. “When my partner gets up for work at 4am, I get up and do six hours of study – then have the rest of the day to focus on the business!” CQUniversity has supported her study transition, offering assistance through the Academic Services Learning Unit based at Gladstone.
And with the CQUniversity-CQ TAFE merger on July 1 this year, more health students will see the benefits, with plans to deliver Fitness qualifications to all students who complete the first year of a Health Promotion or Exercise and Sport Science degrees. The move will allow students to seek work opportunities while they study, and gain crucial industry experience – building on work placements that are already a valuable part of the program. While Katie’s extensive fitness experience makes her in demand in any gym, she’s determined to get the skills that will allow her to drive health and fitness habits for the next generation. “It’s a big challenge, and especially in this region, to get more kids – and their families – thinking about making healthy choices,” she said. “But making that my career is really exciting – really, I just want to help people.”
for more information: cqu.edu.au/study 13 27 86
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what I wish Iknewabout leaving BEFORE I LEFT
SCHOOL – Jules Leabres
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completed my High School Certificate in Western Sydney; lets just say my teenage years were eventful to say the least. I was pretty lucky to have attended a total of four high schools, because not only was I able to experience different cultures but I also had the chance to start again… and again… and again. One thing I found that was consistent while going from one school to the next was the level of bullying, whether it
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was physical or psychological. There was so much pressure to meet a certain level of social presentation – who was invited to the cool parties, who was dating the new girl, who got selected to represent the school and the list just goes on. There was also pressure from your peers to make sure you pass your assessments and exams. So it required constant, never ending maintenance to be listed among the elites of the school, whether for social or academic reasons. Just to add more pressure, you also experience your physical and emotional development phase as you are going through school. I remember my emotions were on fire while I was at
school – one day I cannot wait to marry the girl I am dating and the very next day I want to break up with her. As a young male, my testosterone was through the roof, I just had no idea how to handle the changes that were happening. So as you can see, there were so many things going on and to be honest, I did not find high school easy. I believe all teenagers experience high school in a similar way, even though some may have more fun, experience more bullying or be more popular than others. So going back to main reason why this article is here – what I wish I knew before I left school. I wish I didn’t focus on pleasing everyone. I was so caught up trying to please the ‘Academics’. How did I do that? Glad you asked… I remember attending an art gallery excursion. For hours and hours, we looked at paintings and try to determine what was the artist thinking when he was completing his piece. Are you serious! I was 16 years old!
I wish I didn’t follow the crowd. I was so scared of being me; I felt I didn’t have the right to be myself and to share my strengths with others. All I did was conform, without realising most of my peers felt exactly the same. The fear of being myself gave birth to a feeling of insecurity and this affected me long after high school was over. I wish I didn’t allow the opinion of others to affect me so much. I was so concerned about what people would say or think about me. I would often seek their approval by letting them have a say in my life, whether it be social or academic. I have good news for you though… high school is only 6 years of your life! You have so many more years ahead of you. You have yet to experience the best days of your life and the best memories are yet to be created! So enjoy every single day in school and do not worry if you fail or stumble… we are all human and capable of being imperfect. This is what I have learnt after many years of finishing high school, and I wanted to share my thoughts with you in the hope that they will help you along the way of a fun filled journey. “We are not what we do… therefore I can fail as many times as I need to succeed. Because I am neither my failures or success… I am simply me.” July –September 2014
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u
nparalleled and one of a kind in its field, Kids at Switch is a utopia for kids who strive to be financially savvy and start their own businesses through their passion and play.
– Jamie Lee
“W
e have to help our future generation tackle the future before the future tackles them... the best way to do this is through turning their passions into play, and moving this further into an unshakeable purpose.” – Jamie Lee, Founder
Frustrated by the holes in the current schooling system, education graduate Jamie Lee designed Kids at Switch to supplement these gaps with the hopes to instil into kids a sense of unshakeable purpose through financial literacy. Participants learn perseverance and resilience towards their passions and ultimately, their future goals.
Why do we teach
financial literacy? We teach young children about financial literacy skills and how to achieve their goals. The reason why we are doing this is to compensate for the gaps left by the current education system. You can think about it this way, we are currently preparing children for jobs that don’t exist yet, and the current system is ill preparing them for this rapidly shifting job market. July –September 2014
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Are allowances
allowing our kids to grow their financial mindset? As a kid, I never really got an allowance. I had a choice – either take the set allowance my mum gave me every week, or I could go and find my own way to make my own which could result in a higher return. Naturally, I chose to find my own way – constancy and stability were never traits of mine anyway (hence why I decided to go down the entrepreneurial highway). In Year 5, I started my first ever business: it was just at home, nothing that required rent or any sort of wages. It was all done fairly innocently at first – I had done all the calculations and knew I could get more money than if I got just my mum’s allowance. At six o’clock every morning, I opened my breakfast store. I got all my materials ready, excited to start the day. Then, at seven I would wake my entire family up, and how do I put this... persuade them to order food from me. I would
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take their orders, give them the food and then they’d have to pay me. To me, this business ritual was exhilarating – I loved the feeling of being rewarded for something I intrinsically loved doing. After a while, I didn’t even do it for the premise of extra pocket money – I did it because I genuinely wanted to make my family breakfast! My passion transcended my humble kitchen and into my school’s playground. I would set up a stall every recess and lunch where I would sell my origami creations and drawings in exchange for the ever prevalent gumnuts which littered the school fields. I was able to do what I loved whilst encouraging my schoolmates to help clean up the environment. I even had a team help me in this bartering process – we all learnt the disciplines of creative thinking, teamwork, responsibility and dedication, things that allowances
“A
llowances shouldn’t define the passion and motivation of a child... their intrinsic desires should motivate them, and their true passions.” – Jamie Lee, Founder
don’t teach you. Whilst the gumnut currency I had established was rather vexed and obsolete, I didn’t so much mind because A) it was not permitted to trade using actual cash on school grounds, and B) it was never about the money. The skills I learnt as an eleven year old through this cannot be easily quantified through a sum of money. Eventually, a competition started to pop up around me so I had to shut down the store – there was only so much corporate backstabbing I could put up with as a tween! My interest and play with business and commerce fostered my passion – making my desire to do what I love so intrinsically rewarding. Allowances remove this intrinsic desire, we should
work from will not from incentive. Kids who get paid to do household chores won’t do them unless they’re paid. What skills will they learn in the process? I don’t regret for a second not taking my mum’s set allowance. Starting my own business and learning the basics of trade and passion has definitely set me up to be the person I am today, placing me on the path I am now to helping kids realise their own passion through play and fostering in not only just myself, but them, the skillset of a true entrepreneur. July –September 2014
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The Importance of
Being Prepared – Jeff Gilling
“By failing to prepare, you are preparing to fail.” – Benjamin Franklin
r
obert Stephenson Smyth Baden-Powell was born on 22 February, 1857 at Paddington in London. He enjoyed a long military career. After his return to London from South Africa after the Second Boer War in 1903 he rewrote his military training manual Aids to Scouting. Scouting for Boys has since sold more than 100 million copies. Famously, the Scout motto is ‘Be Prepared’. Of this, Baden-Powell explained the meaning of the phrase, in part to mean: Be Prepared: by having disciplined yourself.....by having thought out beforehand any situation that might occur, so you know the right thing to do at the right moment, and are willing to do it.
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“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” – William Arthur Ward
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n coming issues of Leaving School we’re going to highlight some of the disruptive shifts that are shaping our changing world and identify some of the key trends for the foreseeable future so that students can best position themselves for the future: so they can Be Prepared. The last five years have been characterised by continued change across all sectors. Disruption in world financial markets, economic and political instability, geo-political, demographic, technological and environmental shifts reminds us that change is the norm. Because the world is in transition it means that companies, institutions and people have to change to adapt to the new order, they have to change to survive.
Now that’s bad news for many people, because most people do not like to change. But it’s good news for others though because where there is change there is sure to be opportunity lurking about someplace! In business and in life, being prepared is an essential ingredient for capitalising on new opportunities and establishing a strategic advantage. Innovation and strategic advantage hinge on your ability to anticipate trends and identify ‘the next big thing’. It is important to be across all of the key trends, to be informed and able to respond accordingly. To illustrate this, in this article we’re going to take a quick recap on the experiences of three global brands from the 20th century: Smith-Corona, Kodak and Encyclopaedia Brittanica. July –September 2014
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Smith Corona 38
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n 1989 the Smith Corona Company proudly advertised themselves as being ‘the best typewriter company in the world’. This was a company with a proud history of innovation. 100 years earlier they had invented the first typewriter with upper and lower case. In 1906, they had invented the first portable typewriter and in 1957, the first portable electric typewriter. More recently, they had invented the first personal word processor. Smith Corona knew how to identify new trends and opportunities. Sales were a record $500 million dollars and business, it seemed was booming. Smith Corona did not miss the emerging trend of personal computing. In 1990 they even observed that the industry was “in a period of transition between typewriters and word processors” and in 1991 formed a partnership with the Acer computer company. The partnership was a good strategy and the CEO even remarked of
their late entry to the market meant they faced stiff price competition computers: “They are a logical extension of our line”. In 1992, however, the computer partnership was a distraction to their main focus of relocating their typewriter production to a lower cost base in Mexico. Their late entry to the market meant they faced stiff price competition, and the partnership with Acer was ended. A former executive of the company has since noted that at the time they could not imagine their company going out of business, that it was “hard to imagine that the typewriter would be annihilated…”(!) July –September 2014
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KODAK I
“To be prepared is half the victory.” – Miguel de Cerventas
In February 2012 the Kodak Company filed for bankruptcy. Since the turn of the century Kodak’s share price had fallen 95 per cent as it was hit hard first by foreign competition and then by the digital revolution. Did Kodak see these changes coming? Did they see the new trends? These are questions worth asking. It is a largely unknown fact that the first digital camera was invented by Kodak themselves, in 1976. Steve Sasson, a then 26 year-old electrical engineer and the Kodak Apparatus
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Division Research Laboratory team demonstrated the technology to a number of people within Kodak in 1976 as "Film-less Photography." Considering Kodak's position as the world's leading producer of photochemical film it is hard to imagine the title of the presentation went over terribly well. After all, what company executive would embrace a technology with the potential to erode all their present revenue streams? Years later it turns out to be prophetic as Kodak struggles to reinvent itself as a digital company.
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ENCYCLO BRITANN W riter Tim Carmody told the fabled story of Encyclopaedia Britannica well in a 2012 issue of Wired Magazine, under the headline ‘Wikipedia Didn’t Kill Britannica. Windows Did’. Britannica was sold off in 1996 for $135 million “…long before Wikipedia was a crowdsourced gleam in Jimmy Wales’ open-access eye. In 1990, the company had $650 million in revenue. What happened in the six years inbetween was Encarta. As Carmody wrote, “An important part of Britannica’s story that is easy to forget now is that Microsoft pitched Britannica on developing a version of
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Britannica for PC’s in the 1980s, with their first version of Windows. After Britannica turned them down, Microsoft partnered with Funk & Wagnall’s, rebranding it Encarta and focusing on a lean, computer-specific program that could help sell personal computers beyond productivity applications like Word and Excel.” Apart from being a source of information, Encyclopaedia Britannica was marketed to many middle-class parents as a household totem. Historian Yoni Appelbaum wrote that from the beginning, Britannica’s cultural project was as much about the appearance of knowledge as knowledge itself. Britannica “sold $250 worth of
OPEDIA NICA books for $1,500 to middle class parents buying an edge for their kids.” So their primary reason for existence as a set of printed volumes was easily replaced by the personal computer, first armed with Encarta, then Wikipedia, Google and now “the robust information economy of the entire web.” Had Encyclopaedia Brittanica recognised the likely deleterious changes that were coming, they could have repositioned their business accordingly. The takeaway point from these examples is clear: To prosper in life as in business it is essential to be aware and prepared for the trends that are shaping our changing world, the world that you are a part of. July –September 2014
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