ImagineSydney Create | 2017

Hot pockets: capturing the value in Create ImagineSydney Create | 2017 Hot pockets: capturing the value in Create

How do Sydney’s regions perform in creating We know that innovation and capturing value? What are the strengths and weaknesses of each region? Beyond invention, is essential to Sydney’s how good are we at finding and implementing continued success. But new ideas?

unlocking its potential may To support and inform the debate, we have be simpler than we perceive developed the Create Heat Map. By bringing together a range of quantitative data sources, it to be. Innovation is all and the best of Deloitte and industry, economic around us, and everyone and strategy capabilities, we hope to provide concrete evidence on innovation activity in can play a part in its story. Sydney’s regions. Our approach is designed to evolve and improve over time to help Sydney’s individuals, businesses and government think about innovation at a more granular level.

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The Create Heat Map

The Create Heat Map uses a range of indicators to We do this because activity in absolute terms It uses data from a range of publicly measure the innovative performance of regions is driven mostly by employment. It stands to available and bespoke datasets, including in Greater Sydney. Specifically, it draws on our reason that more people working in an area from the Australian Bureau of Statistics, Create Heat Index, which seeks to illustrate the generates more activity. As such, absolute the Federal Department of Industry, innovation outputs (product, process, marketing measures of activity could disguise high- Census, and IP Australia. and organisational innovations) generated by performing regions, which may not show up each region, and the innovation inputs (like just by virtue of having a relatively smaller Further detail on how we constructed human capital, local institutions, collaboration number of workers. the Create Heat Index is available here. and investments) that support it. Our work is founded on the National Innovation It’s important to note that we’ve standardised Map, compiled by the Office of the Chief our Create Heat Index by regional employment. Economist, as well as the OECD’s Guidelines This means the Index is not a measure of for Collecting and Interpreting Innovation Data. the absolute amount of activity in an area. It builds on both of these sources by: Rather, it should be interpreted as how much ·· Adding a layer of geographic granularity innovative activity there is per employee. ·· Including more indicators

·· Indexing and compiling the indicators into a single measure.

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Bilpin – Colo – St Albans

Galston – Lauderdale

Richmond – Clarendon

Dural – Kenthurst – Wisemans Ferry Blue Mountains – North Windsor – Bligh Park

Newport – Bilgola Terrey Hills – Duffys Forest

Glenhaven Wahroonga – Warrawee Narrabeen – Collaroy Frenchs Forest – Belrose Blackheath – Megalong Valley Emu Plains – Leonay Doonside – Woodcroft

North Rocks Macquarie Park – Marsfield

St Clair Chatswood (West) – Lane Cove North Willoughby – Castlecove – Northbridge Ermington – Rydalmere Manly – Fairlight Parramatta – Rosehill North Sydney – Lavender Bay Horsley Park – Kemps Creek Homebush Bay – Silverwater Balmain Sydney – Haymarket – The Rocks Burwood – Croydon Double Bay – Bellevue Hill Cabramatta – Liverpool Chullora Erskineville – Alexandria Warragamba – Silverdale Coogee – Clovelly Arncliffe – Bardwell Valley Botany Padstow Blue Mountains – South Cobbitty – Leppington Kogarah Malabar – La Perouse – Chifley Ingleburn – Denham Court Cronulla – Legend: innovation Kurnell – Miranda – Yowie Bay Bundeena performance rank 1 – 20 The Oaks – Oakdale Campbelltown – Woodbine 21 – 60

61 – 100 Heathcote – Waterfall 101 – 200

201 – 250

Picton – Tahmoor – Buxton Douglas Park – Appin > 250

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The Create Heat Map: in focus North-west

Asquith – Mount Colah

Glenhaven

Wahroonga – Warrawee

Baulkham Hills (West) – Bella Vista

West Pennant Hills Pymble

North Rocks

Macquarie Park – Marsfield Lindfield – Roseville

Oatlands – Dundas Valley North Ryde – East Ryde

Ermington – Rydalmere Chatswood (West) – Lane Cove North Legend: innovation Girraween – Westmead Lane Cove – Greenwich performance rank Parramatta – Rosehill 1 – 20

Homebush Bay – Silverwater 21 – 60

61 – 100 Guildford – South Granville Concord – Mortlake – Cabarita 101 – 200 201 – 250

> 250

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The Create Heat Map: in focus North-east

Frenchs Forest – Belrose

Beacon Hill – Narraweena

St Leonards – Naremburn

Forestville – Killarney Heights

Freshwater – Brookvale

Willoughby – Castle Cove – Northbridge Macquarie Park – Marsfield

Balgowlah – Clontarf – Seaforth Chatswood (West) – Lane Cove North

Legend: innovation

St Leonards – Naremburn performance rank Mosman 1 – 20

21 – 60

North Sydney – Lavender Bay Neutral Bay – Kirribilli 61 – 100

101 – 200

201 – 250

> 250

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The Create Heat Map: in focus South-west

Homebush Bay – Silverwater

Homebush

Haberfield – Summer Hill Chester Hill – Sefton

Chullora Croydon Park – Enfield

Bass Hill – Georges Hall Greenacre – Mount Lewis Marrickville

Canterbury (South) – Campsie

Condell Park

Roselands Arncliffe – Bardwell Valley

Panania – Milperra – Picnic Point Narwee – Beverly Hills Legend: innovation Bexley Padstow performance rank

Monterey – Brighton-Le-Sands – Kyeemagh 1 – 20 21 – 60 Mortdale – Penshurst 61 – 100

South Hurstville – Blakehurst 101 – 200

201 – 250

> 250

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The Create Heat Map: in focus South-east

Sydney – Haymarket – The Rocks

Darlinghurst Glebe – Forest Lodge

Double Bay – Bellevue Hill

Redfern – Chippendale Petersham – Stanmore Bondi – Tamarama – Bronte

Waterloo – Beaconsfield Erskineville – Alexandria

Coogee – Clovelly Kensington – Kingsford

Kingsgrove (North) – Earlwood Mascot – Eastlakes

Arncliffe – Bardwell Valley Legend: innovation performance rank Maroubra Botany 1 – 20 21 – 60

61 – 100

Malabar – La Perouse – Chifley 101 – 200

201 – 250

> 250

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Hot pockets: some of Sydney’s most innovative regions

As shown in the previous maps, innovation happens Potential for growth everywhere. From Sydney’s western suburbs to eastern beaches, and from the Shire to the Hills – we find Outside of the hot pockets, systematic evidence that businesses and individuals some regions of Sydney have are doing new things to create and capture value. many ingredients that may set

Clearly, Sydney’s innovative activity, when ·· North Sydney them up for future success. measured on a per employee basis, is not – Includes health institutions, technology just confined to one or two areas; every companies and professional services For example: region is contributing to our city overall. organisations. ·· Westmead – already home to one of the largest ·· Pyrmont (including Ultimo) health precincts in Australia, significant further But some areas are excelling. By analysing the – Adjacent to the Sydney CBD, investment is going in to Westmead as a key part Create Heat Index, we can identify hot pockets; Pyrmont/Ultimo has been recognised of the Greater Sydney Commission’s Draft District some of the regions that, per employee, create by the NSW Government as a knowledge Plan for West Central Sydney. The precinct has and capture the most value: and digital-creative start-up hub. a vision to transform into “an innovative, ·· Sydney CBD (including Haymarket and The area is also host to the University contemporary and integrated centre…”. The Rocks) of Technology Sydney, and a well known For more details on the Westmead redevelopment, – Home to many large institutions, including start-up co-working space. click here the NSW Government, major offices of ·· Surry Hills ·· Parramatta – the second CBD, Parramatta ranks third the Big 4 banks, the Big 4 accountancy/ – Home to a key publishing company and in Sydney in terms of the number of people working in consulting firms, as well as major property major food retailers, along with some the area. An increasing number of large organisations and infrastructure players, and global of Australia’s fastest growing start-ups. are located in Parramatta, which is also home to the supply-chain logistics companies. University of Western Sydney. With Western Sydney’s ·· Macquarie Park (including Marsfield and continued growth, Parramatta has many of the North Ryde) ingredients for success. – Includes institutions such as the Macquarie University Hospital, Macquarie University and various technology firms.

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·· Neutral Bay (including Kirribilli) ·· Rydalmere and Homebush Bay – Home to engineering companies, (including Ermington) as well as a range of professional – Near the Parramatta CBD, Rydalmere is (Not) the usual suspects services and technology businesses, home to the Western Sydney University’s including innovative digital southern campus, leading international consulting and internet-of-things electronics and systems groups and fire Some of the best-performing regions are as companies, as well as cloud- safety equipment manufacturers, while we’d expect – Sydney CBD, Macquarie Park and based construction tender and Homebush includes logistics leaders, contract management organisations. the Olympic Park precinct and the North Sydney, for example, are all well acknowledged Charles Sturt University Sydney office. ·· St Leonards hubs and knowledge centres. – Home to Royal North Shore Hospital, ·· Turrella (including Wolli Creek, Arncliffe a range of supporting medical services, and Bardwell Valley) However, others – like Rydalmere and Turrella ·· Pyrmont (including Ultimo) as well as a number of advertising and – Neighbouring the Sydney International – are less obvious. Why do they feature? ·· Newtown (including Camperdown media companies. and Domestic Airports, Turrella is home and Darlington) to many logistics businesses, as well as These areas are all relatively residential ·· Surry Hills ·· Alexandria and Redfern (including other industrial activity. compared to the usual suspects. Because ·· North Sydney Erskineville and Chippendale) fewer people work in this area, the ·· Alexandria and Redfern (including – Home to major fashion retailers and It’s difficult to pinpoint one factor which innovative activity that we measure is Erskineville and Chippendale) kitchen appliance leaders makes these regions so successful. For less spread out on a per employee basis. ·· Waterloo (including Beaconsfield) – Also includes Australian Technology Park, example, Neutral Bay has the highest number So the same amount of innovation activity ·· Darlinghurst the NSW Government’s transport and of trademark applications per employee, (in absolute terms) will generate more ·· Potts Point and Woolloomooloo. logistics knowledge hub. This area hosts making it one of the best performing regions innovation per employee, and this would key media players, as well as construction on marketing innovation, but has low be reflected in the Create Heat Index. There is clear overlap between this list companies that include design houses performance on product innovation. and that presented previously. However, operating as testing grounds for new As a point of comparison, if we measure under this methodology, the level of concepts and self-initiated experimentation. Clearly, each area is unique and its innovation absolute levels of activity, we find the employment is the most significant One of the Big 4 banks is also expected performance can be the result of serendipity following regions as the most innovative: determinant of innovation activity. to move 10,000 staff to the area.22 as much as design. For example, the CBD is found to be more ·· Sydney CBD (including Haymarket and than four times more innovative than The Rocks) Macquarie Park, and more than six times ·· Macquarie Park (including Marsfield more innovative than Waterloo. and North Ryde)

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Driving innovation from the inside out

Adactin is a fast growing, award winning software testing services company based in Western Sydney. Founded with only two employees in 2011, it now employs more than 60 people, with offices in Canberra, Melbourne and now in Auckland, New Zealand.

The key to Adactin’s growth has been the Continuous improvement of its internal Sources of innovation and improvement have Adactin has also partnered with universities development of innovative software testing processes is also central to the Adactin way not only come from Adactin’s own employees in Sydney, offering training programs that technology. CEO Navneesh Garg explains: of working, as it seeks to add efficiencies to but also from clients: assist in the development and learning day-to-day activities and be innovative about opportunities for new migrants and “The way we innovate is in the way we test, the way it operates. Navneesh explains that “A client came to us and asked how we could university graduates. so much of the focus is on test automation “the other aspect of the innovation we pursue create a solution to their problem. So what and how we can speed up the way in which is more around the process side; we improve we did was create a utility for that customer, Navneesh hopes to maintain growth by we do testing. We can do smarter testing and become more efficient in the way we which then became a product line for us. driving talent to create ideas that solve instead of just doing the mundane work of work internally and deliver.” The way you solve those problems leads problems. “That’s something which helped manual testing.” to innovation.” us maintain growth and hopefully that The strength of Adactin’s growth comes can keep going for the next 3 to 5 years.” This approach allows Adactin to differentiate just as much from the people in the When the company does not have the itself from its competitors and grow: company. Human resources play a huge capability or capacity to develop a role in fostering innovation and ensuring specific product itself, Adactin partners “We were different from a lot of other that individuals, regardless of their discipline, and collaborates with others who have competitors we had, so we started innovating are constantly thinking. the expertise: early on, we started improving, improvising on the way we test and we used a lot of “We want to improve the way we do things, “When we know what we want but don’t technical tools that were available, that’s and that has led to creativity because we have that capability, we partner, we look probably bumped up our growth.” encourage people to work smarter, to create for able people who can help us, work new things if they can, to come up with new with us to develop something or give us ideas. So that’s the kind of environment we the required knowledge.” try to have within the organisation.”

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Creativity rising – what heats So, where is the biggest concentration of the mix workers in Sydney today? Exactly where you’d expect it – the Sydney CBD. With more than Shaping Future Cities: There are a few powerful contributors that 250,000 people working in the area in 2012, Designing Western Sydney heat up the innovation gauge, namely density, it has more than five times as many workers high-growth potential entrepreneurship, and as the next densest areas (North Sydney and collaboration. They are not intended to be an Parramatta). Other relatively dense areas One in ten Australians already live exhaustive explanation or list. Instead, they’re include Macquarie Park and Pyrmont/Ultimo, an insight into just some of the factors that as shown in Chart 1.1. in Western Sydney, and one million make innovative regions tick. more will live there by 2031. As our population centres continue to move Density west, so too will commercial opportunities. Shaping Future Cities: Designing Western Sydney, Regions with higher density (i.e. a greater Employment density will continue to increase in published by Deloitte in December 2015, is a blueprint number of people working in the area) are more the Greater Sydney Commission’s West Central for the economic transformation of Western Sydney 23 productive and specialised. This is because district, particularly as Parramatta emerges as that unites multiple stakeholder perspectives on how where there are a greater number of workers in a second CBD. But the CBD will continue to play to transform and restructure the region. It outlines the same area, there is an increased likelihood a pivotal role as the employment centre of our how best to enable people to work, live and play in the that they will overlap; the serendipitous coffee city for the foreseeable future. Western Sydney area and provides a blueprint for the shop meeting is more likely to occur where economic transformation of Western Sydney to create there are more people. This facilitates the 200,000 new jobs by 2020. exchange of information between individuals and across firms.24

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Chart 1.1 Hot pockets of density

Hornsby – Waitara

Castle Hill Frenchs Forest – Belrose

Lalor Park – Kings Langley Freshwater – Brookvale Carlingford Macquarie Park – Marsfield

Chatswood (East) – Artarmon

Parramatta – Rosehill

Homebush Bay – Silverwater North Sydney – Lavender Bay Rose Bay – Vaucluse – Watsons Bay Sydney – Haymarket – The Rocks Pyrmont – Ultimo

Croydon Park Legend: indicator Bondi Junction – Waverley performance rank Liverpool Bankstown 1 – 10 Mascot – Eastlakes 11 – 20

21 – 40 Panania – Milperra – Picnic Point Malabar 41 – 50

Sans Souci – Ramsgate 51 – 60 > 60

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Density can also encourage specialisation; a ·· Macquarie Park – medical technology An organisational ecosystem So where are Sydney’s tent pole tenants? concentrated number of businesses in a given – Another top performer is Macquarie Park. We use data from IBISWorld27 to identify some industry. Specialised areas indicate that the The co-location of Macquarie University Regions are supported by the businesses, of the top organisations headquartered in NSW, related economic effects are strong enough and the Macquarie University Hospital has institutions and people who work in them. as pictured in Chart 1.2. Most are located in the to attract economic activity from other areas, drawn a wide range of large international CBD – testament to the power of co-location. causing greater spillovers and linkages.25 medical technology businesses, which Large incumbents can underpin the culture A specialised region is likely to attract more collaborate and co-locate with the of a region, serving as a magnet and attracting However, when standardising for employment, workers from various locations. university and benefit from a pool of others to co-locate. Universities and TAFEs can we can see a new picture emerging. Macquarie skilled professionals and academics. be a centre of knowledge and collaboration, Park and North Ryde are home to the most tent Many of Sydney’s regions have some degree attracting high-class talent and new ideas. pole tenants per employed person; a sign of ·· Ultimo – creative digital of specialisation. For example, the NSW Gazelles – new ventures with high growth more growth to come in this area. – One of Australia’s largest hubs of digital Government has already recognised four potential – can create an exciting dynamic and creative talent is located in the area knowledge hubs in the greater Sydney area. and spur future growth. Similarly, St Leonards, North Sydney and around Ultimo, Pyrmont, Haymarket and And this specialisation can pay off in terms of Arncliffe are home to major organisations Surry Hills. The region includes a mix innovation – all four knowledge hubs (Sydney Clearly, the organisations which are already which could help to explain why these of digital media, software and design CBD, Macquarie Park, Australian Technology based in a region are a vital determinant of regions perform strongly in our index. companies, and also includes the Park and Ultimo) are recognised in our its potential to create and capture value. University of Technology Sydney. hot pockets. For example: Tent pole tenants ·· Sydney CBD – financial services Specialised precincts can be very effective At the foundation of successful regions are – There are well over 9,000 financial services at drawing specific resources. It’s important tent pole tenants – the large, well-established businesses in the CBD, making it the to remember, though, that diversity and businesses who are major employers in the most concentrated industry in the region. collaboration across industries is important area, holding up the tent. With the Big 4 banks, major insurers and to supporting overall innovative performance. Big 4 accounting firms all having a strong Beyond their own activity, tent pole tenants presence (if not a national headquarters) can create spillovers, which attract and in the CBD, this density continues to be support other businesses in the area. This renewed and reinforced. Specialisation idea is derived from the classic ‘anchor tenant’ in this area has led to more talent being hypothesis, where a large department store in attracted to the CBD for employment in a shopping centre creates demand externalities the financial services area. for other less well-known stores.26

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Chart 1.2 Hot pockets of tent pole tenants

Hornsby – Waitara

Castle Hill Frenchs Forest – Belrose

Freshwater – Brookvale North Rocks Macquarie Park – Marsfield North Ryde – East Ryde

Chatswood (West) – Lane Cove North Chatswood (East) – Artarmon Greystanes – Pemulwuy Parramatta – Rosehill

North Sydney – Lavender Bay Homebush Bay – Silverwater

Sydney – Haymarket – The Rocks Fairfield East Haberfield – Summer Hill

Chullora Bondi Junction – Waverley

Liverpool Bankstown Legend: indicator Arncliffe – Bardwell Valley performance rank Panania – Milperra – Picnic Point 1 – 10 Malabar – La Perouse – Chifley 11 – 20

Sans Souci – Ramsgate 21 – 40 > 40

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Chart 1.3 Hot pockets of high-growth potential businesses

Hornsby

St Ives

Castle Hill Frenchs Forest – Belrose

Pymble Freshwater – Brookvale North Rocks

North Ryde – East Ryde Manly – Fairlight

Chatswood (West) – Lane Cove North Greystanes – Pemulwuy Parramatta – Rosehill Cremorne – Cammeray North Sydney – Lavender Bay

Smithfield – Wetherill Park Rose Bay – Vaucluse – Watsons Bay Sydney – Haymarket – The Rocks Fairfield East Haberfield – Summer Hill

Chullora Bondi Junction – Waverley Liverpool – Warwick Farm

Bankstown Legend: indicator Arncliffe – Bardwell Valley performance rank Narwee – Beverly Hills 1 – 10 Panania – Milperra – Picnic Point Malabar 11 – 20

Sans Souci – Ramsgate 21 – 40 > 40

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Gazelles Once we’ve standardised for employment, Universities and TAFEs Small business is well acknowledged as the we find the greatest concentration of gazelles Research institutions are a traditional pillar powerhouse of the Australian economy. And is in Surry Hills, home to some of Australia’s of the Australian innovation system. Sydney gazelles – high growth potential entrepreneurial fastest growing start-ups, along with some is home to some of the best universities in businesses – will achieve their potential through of our most successful venture capital and the world, a hotbed of new ideas for creating innovation and entrepreneurship. other facilitators. and capturing value, whether through new products, manufacturing efficiencies, Gazelles often have profitability and growth Gazelles will continue to bolster innovation optimising organisational designs or creative as their main goals, and create value through activity in their regions, as well as fuel ways of reaching new markets. their innovative strategic practices.28 And broader employment growth. Previous they can grow quicker, and larger, than most studies have shown that while high-growth Universities generate knowledge spillovers. small businesses.29 firms are rare, they have a tendency to Beyond pioneering new products, they can generate a majority of jobs.30 The challenge help to attract new knowledge resources from We identify gazelles as selected entrepreneurial for government is to ensure they have room outside the region.31 Further, they provide a businesses with an annual growth rate of to grow, and incentives to stay in Australia pool of local talent for businesses and generate over 20%, which have maintained consistent while they expand globally. ideas that can be put to use by firms.32 expansion in both employment and turnover. Chart 1.3 highlights the regions with the Sydney’s universities are spread out across the greatest concentration of high-growth region, as shown in Chart 1.4. entrepreneurship firms. Universities can perform a vital role in Successful start-ups are ultimately the product facilitating conversations between local of capital, ideas and talent. Regions which spur industry practitioners about the potential or amplify these factors will be most effective of new and exciting technologies and in nurturing local gazelles. markets. These forums often produce ideas that inform future problem-solving in workplaces and universities.29

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Connection and collaboration start here

Ready to innovate and collaborate? With over 1,200 people and 850 start-ups using their space in the last five and a half years, Fishburners is Australia’s largest not-for-profit start-up hub.

“The main ingredients for innovation are what they’re working on, then suggest some mindset where they’re happy to talk. You put subsidises office costs to roughly half the things that allow people to try”, says people they should talk to, to increase their 360 people in a building that are all working on what they would normally be, which again Fishburners CEO, Murray Hurps. surface area.” scalable start-ups, and suddenly they start to contributes to generating demand that can collaborate between themselves organically, be filtered to build a high-quality population. “We have one goal which is the creation The creation of a space that maximises rather than because we’ve forced it. of new and highly scalable tech start-ups. interaction between the right people is key The connectivity of people is central to the To achieve that goal we do three things: to establishing these connections and the “Encouraging people to take that risk Fishburners process, which acts to surround The first of which is inspiring more people to chances for networking. Murray describes themselves is a massive problem, but also visitors with scalable start-ups. “The biggest develop a start-up. We hosted 592 events last the design of their physical space, as getting companies to realise that they can restriction to progress in our ecosystem is year, we do a bit of media, and expose as many attempting to “increase the touch points isolate the risk certainly, is as well. Anything the number of people who could be watching potential founders to inspiring content and between people.” For example, “there’s one that allows someone to financially take on the scalable companies and are not.” Murray people as possible. The second thing we do pathway through the building that everyone risk of starting up is a massive plus, that also mentions the changing market where, is attract and filter a high-quality population has to take – so that does help people collide allows people to begin, and anything that “niche companies that you might not find of scalable start-ups. with each other and have little impromptu pushes them harder to succeed upwards that interesting on day one traditionally, in a catch ups. There’s a kind of ‘ideas space’ would be my key focus areas.” year or two can become 10–20 million dollar “The last thing we do is connect those start- in the basement, which has whiteboards, revenue companies.” He sees the best kind ups to support. We don’t want to give advice bean bags, an event space, recording Fishburners supports start-ups by providing of output for Fishburners as the number of directly. We’d rather bring in people to give studio, coffee machine and restaurant style them with the physical infrastructure of start-ups that grow and get to a stage where advice, and also just connect people to others seating. The idea there is you want people a carefully-designed workspace and also the hub is no longer appropriate for them. who might have suggestions. So each month walking through, particularly visitors, in an connections to the opportunities needed we check in with every single start-up and ask environment where entrepreneurs are in a to further develop their company. It also

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Chart 1.4 Innovative regions by count of universities and TAFEs

Pymble

Macquarie Park – Marsfield Lindfield – Roseville

Eastwood – Denistone

Chatswood (West) – Lane Cove North

Ermington – Rydalmere St Leonards

Parramatta – Rosehill Hunters Hill – Woolwich

North Sydney – Lavender Bay

Lidcombe – Regents Park Rose Bay – Vaucluse – Watsons Bay Sydney – Haymarket – The Rocks Lilyfield – Rozelle Pyrmont – Ultimo Strathfield Surry Hills Newtown – Camperdown – Darlington Legend: indicator performance rank Canterbury (South) – Campsie 1 – 10 Kensington – Kingsford 11 – 20

Sydney Airport 21 – 40 > 40

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Collaboration In practice, it’s very difficult to measure that can support innovation and the collaboration. In the Create Heat Index, we use development of ideas for both attendees We’re all familiar with the idea of the garage self-reported collaboration by businesses in and the wider economy (for more detail, innovator – one or two people working in different industries; like previous reports on click here). isolation to create a new idea or business. Australia’s collaborative ecosystem, we note that, overall, Australia performs relatively To understand the frequency of conversations The reality is that most innovation does not poorly on collaboration. in Sydney, we worked with the Sydney happen in a vacuum; nor do organisations Business Chamber to conduct a survey of its commonly innovate by themselves.33 Many of But collaboration might not be so explicit. membership. We asked survey respondents the most successful examples of creating and Sometimes, just opening a conversation how many external meetings they had on capturing value come from people working can create the spark of an idea – even if it average, how far away these meetings took together, across firms, industries and sectors. doesn’t result in a continuing relationship. place, who organised the meetings and with A business funding and then commercialising A strong network can be the backbone of whom they were meeting. a product designed by a university. A small firm a collaborative one. adopting a customer relationship management This gave us, for the first time, a picture of system used by its big business client. A joint To what extent are we having these how often business leaders and staff have venture between an agricultural business and conversations? Place is, again, a key part conversations with external organisations, a food manufacturing business to sell fresh of the story. Sydney is highly dispersed, with and how this is shaped by geography. produce to an overseas market. a population of five million spread across over Of course, this is not comprehensive; for 12,300 square kilometres. Despite the role example, there were no survey respondents A firm’s capacity to innovate is strengthened that digital has played in collapsing barriers, in many regions. However, it provided us by a larger knowledge base, and the sharing it can be hard for a business in the south-east with a useful starting point. of cost and risk that results from external to be familiar with the names of regions in the collaboration.26 Bringing together diverse north-west, let alone knowing what businesses So, which regions in Sydney are the most ideas and capabilities can create value for are located there, and which of them might likely to have a conversation? everyone involved. be relevant. Businesses in areas around the CBD – like Central meeting points and business events Mosman, Pyrmont and Newtown – are most can be instrumental in starting conversations likely to have meetings inside their local region. across regions. The new International However, businesses which are further from Convention Centre Sydney, for example, is the CBD are more likely to collaborate outside seen by its CEO, Geoff Donaghy, as a space their local region.

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Nourishing all the right spaces

SumoSalad’s Green Label store concept is a recent example of the company’s innovative and holistic approach, one that has earned it the coveted Australian Innovation Award as part of the Ebeltoft Retail Innovation Awards 2016.

SumoSalad’s mission is to make Australia “SumoSalad is delighted to be one of two SumoSalad is constantly researching local Given that it operates within the food healthier. Launched in 2003, it is now winners of the Australian Innovation Award and global food trends as well as customer industry, customer research is especially Australia’s largest healthy fast food for our healthy, eco-friendly and sustainable behaviour to ensure it is evolving and at the important to ensure the organisation restaurant, with 120 outlets across the ethos. It’s such a huge achievement and really forefront of consumer demand. The company continues to meet and exceed customer nation and the world. Though the business cements what Sumo stands for,” says Luke works closely with research organisations needs and wants. For a quick service has evolved significantly over the years, Baylis, CEO and co-founder. and the government on a quarterly basis. restaurant, it is not always about being the fundamental philosophy to provide Lawrence Mitchel, SumoSalad Chief Customer good – it is about being better, healthier, great tasting, good quality, and real food Another recent innovation is the store-within- Officer, describes this collaborative approach fresher, and more adventurous. to their customers remains the same. a-store retail concept, which can be seen as a fundamental ingredient to innovation: Most importantly it is about always at The Foodary by Caltex. Luke is excited to innovating, because SumoSalad sees its Innovation is a key driver of SumoSalad’s be part of The Foodary and to help change “Innovation must be shareable, by taking customer-orientated approach as its success. While remaining true to the the way people think of food bought at a bits and pieces and forming something even main driver, in that innovation ultimately company’s beliefs and core ethos, it looks service station. better – that’s what makes it contagious.” needs to provide excellent value and be to create a physical in-store experience useful to its customers. that conveys freshness and redefines the “SumoSalad and Caltex Australia complement traditional idea of fast food. With its new each other well. Now, when customers stop concept store, SumoSalad has partnered to fuel their car, they can also fuel their with leaders in the food industry to provide bodies with tasty, wholesome food.” The customers with unique offerings such as partnership enables Australians to make breakfast jars, charcoal meats, a yoghurt healthier food choices while commuting. bar and an in-store lettuce wall. It also serves local community members who don’t otherwise have access to great value, nutritious and energising foods.

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A special thanks to About our contributors the series

Deloitte Access Economics The role of place is paramount to the future of Australian prosperity. And as the purpose of Kathryn Matthews place continues to evolve, shaping the future of our cities will be central to the creation of smart, Jessica Mizrahi flourishing and productive communities. TheImagine Sydney series sets out to address this through Rumesh Stoner strategies that drive economic and social development in Sydney. It is a long term commitment and Will Walker plan to co-create a broader narrative around the themes of Create, Work, Live, and Play to propel this state’s prosperity beyond the next decade.

Sydney Business Chamber The Hon. Patricia Forsythe Paul Orton Luke Aitken ImagineSydney Create ImagineSydney Live ImagineSydney Work ImagineSydney Play Available late 2017 Available 2018 Available 2018

Other series you may be interested in:

University of Technology Sydney Professor Roy Green Associate Professor Renu Agarwal Associate Professor Christopher Bajada Dr Maruf Chowdhry Shaping Future Cities – Shaping Future Cities – Shaping Future Cities – Dr Sanjoy Paul Western Sydney Queensland Coming soon Adelaide Coming soon Mr Stephen Mikhael Soco

Where is your Digital disruption: Positioning for prosperity? Get out of your own way: The purpose of place: What’s over the horizon? next worker? Short fuse, big bang? Catching the next wave Unleashing productivity Reconsidered Recognising opportunity in uncertainty Read the full report 53 of 53 For more information visit www.shapingfuturecities.com.au

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