DinarStandard Editors

Indonesia Top 100 Innovations, Maktoob CEO, IT in Islamic Finance, US Muslim market, Ummah Leadership

Oct 2009 Edition:   After a long break, we are back with a series of inspiring features that reflect the growing sophistication and diversification of economies in OIC (Organization of Islamic Conference) countries.

We lead off with an overview of leading business innovations from the largest Islamic country - Indonesia.  The innovations are compiled by the Business Innovation Center (BIC)at Indonesia covering products from food, energy, health & medicine, ICT, defense, transportation and other sectors.  Amidst the global economic slowdown, Indonesia is expected to have the fastest recovery in 2010 from amongst the OIC countries.  With a stabilizing and developing democracy led by its charismatic and popular President Susilo Bambang Yudhoyono, Indonesia is certainly a key market to follow in the OIC.

The other big story from the OIC markets has been acquisition by Yahoo of Arab world's largest online portal - Maktoob.com.  The transaction has been reported to be valued at $100 million.  This is a significant moment in the history for Arab based online ventures and is sure to draw much attention to this sector of the future.  We present an interview with Maktoob.com's CEO Mr. Samih Toukan.

Keeping with the technology theme, Expert contributor Ezzeddine Jaadi looks at the growing sub-sector of IT service providers uniquely catering the Islamic Finance industry.  Islamic Finance continues to grow globally riding on the growing sentiment and demands of Muslim consumers.  One major Muslim consumer market is the approximately 6 million strong American Muslim market.  However, given its size and affluence the market is still being severely undeserved.  We look at this untapped American Muslim market and profile an upcoming conference (American Muslim Consumer Conference (AMCC), October 31st, 2009 in New Brunswick, NJ, USA) addressing this growing market segment in the US.

Covering the overall challenges and opportunities across the OIC markets, Expert contributor Mr Arif Zaman discusses leadership development challenges for the Ummah - OIC countries as well as the Muslim diaspora.  However, there are indeed various OIC countries showing strong leadership in various Industries.  We look at the growing Pharmaceuticals industry in Bangladesh by profiling Beximco Pharma which is leading Bangladeshi pharmaceutical exports.  Another key OIC country - Saudi Arabia has been making strong progressive economic strides.  It has recently jumped up in the rankings of the Global Competitiveness Report by the World Economic Forum moving up to 24th rank.  Also, its launch of the impressive science and technology research driven University KAUST has been an encouraging development.  As many businesses explore opportunities in Saudi Arabia, we review a book that focuses on the business environment in Saudi Arabia - Business and Management Environment in Saudi Arabia by Author Abbas J. Ali.

We hope you enjoy this edition.  We look forward to your feedback.

    

Apple's i-Phenomenons and the Design factor

Apple's latest i-phenomenon -- the i-Phone has once again mesmerized the world of consumer electronics. Following the success of its sleek i-Pod music media players, the i-Phone is set to revolutionize the convergence of mobile devices - email, Internet, media player and mobile phone all packaged in one very impressive looking and functioning device.

The analysts and media, from Business Week, Harvard Business Review to The Economist, are all a-buzz trying to crack the Apple code on what makes it one of the most innovative companies in the world.   
 
Sure, as many say, its the Founder Steve Job's visionary leadership. But, the essence of his vision that sets Apple apart is his 'design thinking' mixed with the 'cool factor' that runs across every aspect of a users experience.  After-all, Mp3 music players were a plenty before i-Pods hit the market, but the i-Pod design and usability and its i-Tune tie-in galvanized the mobile music consumers.  Similarly, Nokia, Motorola, and Samsung have led the global mobile phone market, but are sweating the impact of i-Phone's ingeniousness. 
 
'Design Thinking' addressess business problems/needs with a non-traditional approach that involves intense user observance and employs creative problem solving involving people from various diverse tracks to develop 'out-of-the-box' solutions.  This approach applies to tangible products, user technologies, business services and even operations, and is fast becoming a key business growth driver.
 
IDEO is one of the most prominent consulting firms that specializes in this space and had also helped Apple design the first Macintosh mouse.  In a special edition on the Power of Design, BusinessWeek profiled IDEO as an innovative company that has "redefined good design by creating experiences, not just products.  Now its changing the way companies innovate."
 
To get some idea on what design thinking entails, I found a great presentation by Timothy Brown, CEO, IDEO given at MIT in which he covers their design thinking process of surveying the “landscape of innovation” focussing on people, their needs, technology and business, and their rapid prototyping methods to ideate and create solutions.
 
There will be a lot more we will focus on the process of design thinking.  In the meantime, the success of Apple's i-Phenomenon has once again re-iterated the importance of design thinking in every aspect of today's global competitive strategy.

What do you think about the power of design? Do share your thoughts by submitting your comments.

    

3rd World Islamic Economic Forum - Innovation & Global Partnership

Building upon its successful event last year in Islamabad , The WIEF hosted its 3rd Forum in Kuala Lumpur 27-29th of May 2007 aimed at boosting cooperation among business professionals engaged in Muslim world economies.  The Forum provided a mix of inspirational and practical advise to business leaders for lifting their capabilities and making a positive impact to the socia-economic state of Muslims globally.

Setting the inspirational tone for the Forum were Indonesian President Susilo Bambang Yudhoyono, Kuwaiti Prime Minister Sheikh Nasser Al-Mohamad Al-Ahmad Al-Sabah, Malaysian Prime Minister Dato Seri Abdullah Ahmad Badawi of Malaysia, and Mr. Musa Hitam, Chairman of the World Islamic Economic Forum Foundation.   

Prime Minister Badawai asked Muslims to take ownership of their destinies by focussing on eduation and innovation and engaging with the global community.  "We must break the shackles of rigidity and dogma that currently envelopes Islam and the Muslims. We must go beyond rituals and ceremonies in Islam.  As Muslims, we believe that God looks after us, that we can be the best of people. But we must earn the right to be best. We must re-discover our ability and passion for knowledge and innovation. The Muslim faith has a rich tradition of innovation and enterprise and we must reclaim that legacy," he said.

Most working sessions involved practical steps on Leadership Strategies, Innovation, and Industry Opportunities (telecom, energy & water, infrastructure, travel & toursim, retail & consumer, Islamic finance) by a panel of experts. 

A delegate brief prepared by PricewaterhouseCoopers(PwC) presented detailed analysis on each of these topics.  On the topic of "Building tomorrow's innovative company", the Brief highlights with some examples how innovation extends beyond Product innovation only and includes looking into Process innovation as well as Business Model innovation.  It also references a PwC Innovation Survey which points out that, "Top innovators generate over 75% of revenue from products not in existince five years earlier,"

The Brief also looked at the current state of competitiveness in Muslim majority countries referencing the World Economic Forum's  Global Competitiveness Index 2006, in which only Indonesia, Malaysia, Turkey and UAE had above average scores on innovation.  However, it also points to recent regional/ global success stories from the DS100 - Top 100 Companies of the Muslim World list. 

The Forum had over 900 participants from 65 plus countries providing ample networking oportunities.  The official outcome of the Forum was catured in its declaration which included endorsing a program to make affordable computers available to disadvantaged Muslims, to establish scholarships and internships for Muslim youth, and to support leadership training programs and collaborative university research.   The event also hosted a Young Leaders and Businesswomen Forum.

'Second Life' - Taking The Virtual Economy to Another Level

'Second Life' is an online 3D digital world where its 4 million+ registered users create their Avatar (online virtual persona) and explore this virtual world meeting people, playing games, shopping and even buying virtual land which allows them to open a business, build their own virtual paradise, and more!  In fact, one woman made $1 million buying and selling virtual Second life land. 

Second Life was started by Linden Labs of California, USA and now literally boasts its own economy (currency, land values, economic data).

The buzz and potential around the site is beginning to sound like that of Google a few years ago.  Businessess are actually buying virtual islands to promote their brands, products and services.  IBM has now acquired 24 Second Life "Islands." Other big companies with a presence include General Motors, Toyota Motors, Dell, Cisco Systems, Sun Microsystems and Reuters Group.

Invariably many Muslims may shy away from such a site by asking, “How distracting is such an indulgance from the realities of life?”  No doubt much immoral activity such as virtual second affairs etc. happen.  These do not reflect Muslim values. I have had interesting debates on this with friends and family.  Is it better to stay away from SecondLife or should it be seen as an opportunity to engage and foster good values?

As a business opportunity - with 4 million virtual residents and an amazing array of innovative marketing options, 'Second Life' just cannot be ignored.  If in the process, good values can be communicated and supported then better yet.  In some ways it’s not too different from the real world.

Oct Edition: Finding Innovation Opportunities

For business innovators such as the new phenonmenon's Google and eBay to the more established Proctor & Gamble and Samsung, 'change' serves as their biggest innovation driver.  This assertion is backed by none other than the legendary management consultant, Peter Drucker, who had said, "Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service."

The October DinarStandard edition is all about identifying and assessing the biggest change opportunities facing a new generation of business leaders from the OIC (Organization of Islamic Conference) member countries.  We lead off with DinarStandard's analysis of ten specific trends that provide the greatest opportunities for entrepreneurs to innovate and lead.  From the emerging capital markets and venture capital culture to the opportunities related to Web 2.0 social networks and unprecedented global connectivity, the ten trends broadly cover macro-economic, demographic, social, management, and science & technology developments.

Mr. Athar Osama, a senior executive of an international technology and economic development consulting firm, picks up on one of the trends category and provides an analysis of both current state of scientific research in the OIC member countries as well as strategies to further promote it.   

Mean while, Associate Editor, Mr. Sajjad Chowdhry juxtapositions some of the management opportunity trends addressed with that of the 14th scholar, Ibn Khaldun's.  He continues his series of drawing lessons from classical innovators by presenting Ibn Khaldun's thoughts on leadership and work, culling from the scholars' great magnum opus - the Muqaddimah.

Finally, Mr. Shahriar Amin, Deputy Brand Manager, GrameenPhone Ltd. provides a cautionary note against the growth objectives of the Opportunity Trends by discussing the negative impact un-checked growth can have on brands.

We hope the ten trends and the associated perspectives provide some practical insights for entrepreneurs.  These are not meant to be perfect, but provide enough perspective on opportunities that can drive innovation in the near future.

25 Most Innovative Companies of the World

The 2006 Most Innovative Company list just released by BusinessWeek/Boston Consulting Group has two key lessons on how the innovation sultans like Apple, Google, 3M, Toyota, and the rest of the 25 companies identified, approach the process of innovation.

First - innovation today is not just about new products; it is also about reinventing business processes and business models.  For example, Apple’s brilliantly designed Ipod coupled with business model innovation around its iTunes downloads has been its winning combination.   Procter & Gamble’s continued successes are now attributed to its new R&D process called ‘connect and develop’.  Through this program, P&G seeks 50% of its new products from outside the company.  The second lesson is - design is a key differentiator.  Apple again stays ahead of the pack with its focus on design.  The same is true for IKEA, Procter & Gamble and IDEO (the leading product design consulting firm).

The ranking also supports my favorite lesson for businesses in the Muslim world -- the need to think big and build entirely new markets that meet untapped global customer needs.  Google, eBay, and Amazon were all started by entrepreneurs from scratch just a few years ago and have changed the world in many ways.  They are now worth billions of dollars and are a blessing for their communities.  Google's big mission is "to organize the world's information and make it universally accessible and useful."  The question I pose to aspiring entrepreneurs from the Muslim world - Can you imagine to change the world in a similar way?

1001 Inventions Highlight Muslim Contributions to the World

From day one innovation has been an integral part of Dinar Standard.  Specifically, we’ve tried to showcase in our own way the contributions of the great Arab and Muslim innovators of yesteryear.  The newly opened exhibit entitled 1001 Inventions in Manchester, UK, does just this in a fascinating exploration of innovations and inventions that have contributed to world history. 

The exhibit is currently being showcased at The Museum of Science & Industry in Manchester from March 8 to June 4.  From there it will move around the UK to different museums. The exhibition is supported by a host of government and private sector initiatives and includes over 40 interactive exhibits of various kinds.  It is separated into seven different zones for discovery including: home, school, market, hospital, town, world and universe. An interactive web log also allows visitors to the exhibit’s website to record their comments and create discussions on various topics ranging from the world’s first soft drink to music and gardening. 

Besides its emphasis on the process of innovation one of the most striking objectives of the project is to show how people have worked together throughout history.  In its own words the exhibition’s website states, “The 1001 Inventions project strongly emphasizes how Muslims, working harmoniously alongside people of different faiths and races across Europe, Asia and Africa, were able to contribute extensively in many fields including science and medicine.” 

While we wrestle today with globalization and trans national movements of ideas and capital it is without a doubt that Muslims thrived in their own globalized culture centuries ago.  They commanded respect for their abilities and skills in a dog eat dog world.  The challenge for Muslims today is to do the same.