12.07.04 NOTES: Tuesday@REI; Competition Based On Innovation Creating Unique Value

Submitted by Norm Roulet on Tue, 12/07/2004 - 16:47.

Chuck is an attorney focused on anti-trust, and it is his interest in that
which drove him to write and edit this book, featuring five chapters by Porter.

Imagine it is 1895 and there are no automobiles - just horse and buggies.
Chuck sees life here like that, and that "unique value economics"
offers unique new opportunity here now.

Three variables to economy - one is environment - globe - where economic
activity takes place - with two slices through that - "Five forces"
and type of competition being creating unique value or

Factor driven economy (input cost) or investment driven economy (efficiency)
or innovation drive economy (unique value) - you chose which you work in to
compete - the unique value model is where Chuck sees opportunity here

See Presentation Chuck makes here – remaining notes
refer to this!

Porter taught in every business school and his ideas are used by many
countries as foundations for their economies. He also teaches an internet
course in like 50 business schools - only three in US

Porter unique value economics is a positive sum model - grow the pie bigger
so everyone wins. Where does the money come from? For the first time in human
history is the real wealth is in applied knowledge and in a knowledge economy
wealth is unlimited. High wages and profits are possible.

Type of competition model - getting more efficient or creating unique value.
In Japan the focus has always been on driving for efficiency, driving prices
down - unless you create unique value you will fail - must chose to create
unique value to compete beyond basic efficiency model.

New "Diamond" role for government

Chuck talks about a few local companies that create unique value and excel
here - Nottingham-Spirk for SpinBrush, Nanofilm for their technology, Nordson
for their paint sprayer technology - and for that, which they manufacture here,
they have local researchers around the world to determine special needs in
different countries and bring the knowledge back here to manufacture. Another,
Chef's Garden, went from bankruptcy to making specialized fruit and vegetables
- their unique value

In conclusion, in Chuck's field, antitrust lawyers don't have a clue.

Question - how does this apply to education - see presentation page 15 -
need to teach "type 3 thinking" - problem solving - can be taught
later in life - lists "Metaskills" that are critical - from
Staudhammer and others...

Welch says confidence is critical

Attendee says there are schools like this called Giraffe Schools, Rosenberg
created in America, moved to Switzerland, and there are now schools like this
in Israel.

Chuck points out that with the internet the 77,000+ Cleveland k-12 students
can access innovative learning material and approaches

Phil Lane mentions Third Frontier network offers unique value for learning
but mainstream taxpayers think this is a waste of money - how do we get
mainstream acceptance? Chuck says start with the kids - show how all this helps
the children and so the economy

Discussion expands on new type of education - there seems to be an effort under way to develop a new learning system and devices for students to access a private network for learning.

Malaysia has developed a knowledge economy - K-economy - and been highly successful with that.

Goldman has done study of emotional intelligence - most important skill is how we relate to each other - heart.

Weller Book REI 12-7-04 presentation.pdf0 bytes
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