Rotman Management

INNOVATIONS LIKE THE PRINTING PRESS, the electric light and the steam engine were catalysts in transforming their respective eras, permanently altering people’s lives. Today, it’s not just about one innovation: successive waves of disruptive technologies are emerging, converging and evolving into a digital ecosystem that is redefining how we connect, communicate and take collective action. Consider this: Since the year 2000, more than half of Fortune 500 companies have been wiped out, and many of those that remain are struggling to survive. Market expectations are evolving at such an astonishing rate that businesses simply can’t keep up. As a result, pursuing a transformation agenda is no longer optional; it is essential to survival. In this issue of Rotman Management we will share practical tools, insights and inspiration to help leaders carry forward…

You joined the Rotman School as a Professor of Finance in 2010 and went on to serve in senior leadership positions——most recently Vice Dean, Undergraduate and Specialized Programs. What drew you to the role of Dean? Lots of things. It’s very exciting to be at the helm of Canada’s leading business school and to be part of the ecosystem of an incredibly innovative and exciting city. Thanks to our exceptional students and faculty, the Rotman School is on an impressive trajectory. When I stepped down from my position as Vice Dean and into the role of Dean, it was rewarding to look back at the achievements of the previous five years; but it was far more exciting to think about the possibilities that lie ahead for the School. I view this as…

How do you define transformation as it applies to organizations? Transformation is a fundamental shift in a company’s functioning whose goal is to significantly improve current performance by better aligning with changing market conditions and demands. It typically encourages change at every level of the organization — from the executive level down to employees on the front lines. Of course, the first step in any transformation effort is recognizing that a transformation is needed. Some common drivers include falling market share or revenue; a major change in the market that your company is ill equipped to handle; and foreseeing a change in the customer base that will change the way business is done. Change is relentless in today’s world, which means transformation is no longer a one-time initiative. We are living in…

IMAGINE A TIME WHEN FRUIT IS GROWN INDOORS, year round, just beneath the grocery store that sells it; when genetic diseases like sickle cell anemia and muscular dystrophy can be prevented before birth; and when dieting is unnecessary, because a biometric test can indicate which foods you should eat and which to avoid. The foundation for all of these alternate realities already exists. In fact, some of these innovations are already moving from the fringe to the mainstream. Every day, innovators are learning more about how to manipulate molecules, engineer microorganisms and build biocomputing systems, marking the start of a new era in our civilization’s evolution: the Biological Age. What we build during this new age will unlock new business opportunities, mitigate or even reverse environmental damage and improve the human…

Andreas Park: You believe the scaffolding is emerging for “a historic disruption to our financial infrastructure.” Please explain. Campbell Harvey: The key characteristics of traditional centralized finance are familiar to all of us: central banks control the money supply; financial trading is largely done by intermediaries; and borrowing and lending are conducted through traditional banking institutions. Decentralized finance, or ‘DeFi,’ seeks to build and combine open-source financial building blocks into products that maximize value for users. DeFi will cover everything from exchange to savings and lending. It’s also about ‘tokenization’ — which I am very excited about. Say you drop into your local Loblaws to grab some items for dinner. When the time comes to pay, you will have choices to make: Your eWallet might include Canadian dollars as well as tokens…

MOST PEOPLE BELIEVE THAT BUSINESS COMPETITION takes place between companies: Boeing vs. Airbus; General Motors vs. Toyota vs. Volkswagen; Microsoft vs. Amazon vs. Google; Procter & Gamble vs. L’Oréal vs. Unilever vs. Johnson & Johnson. It’s tempting to think of these great companies as colonizing nations engaged in a world war, fighting for territory and position in multiple theatres of combat — and it’s quite likely many CEOs agree, to judge from the emphasis in the press on company market share. But it’s not actually corporations that compete — it’s the products and services they provide. For customers of narrow-body commercial jets, the B737 competes with the A320. For buyers of midsize sedans, Malibu competes with Camry, which competes with Passat. For shampoo buyers, Pantene competes with Fructis, which competes with…