2. Learning and Creativity

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    Learning in Organizations

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    Organizational Learning

    Learning is a feedback process

    Organizational learning embraces both adaptive and generalearning

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    Paradigm shifts

    Information and knowledge society

    Lifelong learning

    Companies, networking

    Information and communication technologies (ICT) e-business, e-commerce, e-learning, e-government, e-, m-

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    Organizational Learning

    Continual expansion to create desired results

    New patterns of thinking are nurtured

    Collective aspiration is set free

    People learn to learn together

    New knowledge and capabilities remain even if individuals leave

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    Four different orientations to theorizing lea

    The behaviourist orientation. The behaviourist movement in psychology has lookedexperimental procedures to study behaviour in relation to the environment.

    The cognitive orientation. Where behaviourists looked to the environment, those pto the individual's mental processes. In other words, they were concerned with cogor process of knowing.

    The humanist orientation. In this orientation the basic concern is for human growth

    The social/situational orientation. It is not so much that learners acquire structuresunderstand the world, but they participate in frameworks that that have structure. involves participation in a community of practice.

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    Three types of organizational learning (ArgyrSchn)

    1. SINGLE-LOOP learning

    "Adaptive learning" focuses on incremental

    change. This type of learning solves problems but

    ignores the question of why the problem arose in

    the first place. (Low level)

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    Three types of organizational learning (ArgyrSchn)

    2. DOUBLE-LOOP learning

    Generative learning focuses on transformational change thathe status quo. Double loop learning uses feedback from pato question assumptions underlying current views. When cofeedback, managers and professionals need to ask not only reasons for their current actions, but what to do next and evimportantly, why corrective actions are to be implemented.

    level)

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    Senge Five Disciplines

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    Senge Five Disciplines

    Systems thinking, is the discipline that

    recognizes the interconnection between parts that

    make up a whole. Managers within the

    organization must learn to think at the 'systems'

    level, giving more importance to the long-term

    impact of system dynamics instead of the short-

    term problems encountered in each part of the

    system.

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    Senge Five Disciplines

    Personal masteryrefers to the discipline of an individual becontinuously clarify and deepen his personal vision, focus henergies, develop patience, and openly and honestly see reexists. (Personal Gap Analysis)

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    Senge Five Disciplines

    Mental Modelsare, according to Senge, "deeply ingrained assumgeneralizations, or even pictures and images that influence how understand the world and how we take action."

    Mental models represent an individual's ability to compare new id

    internal images of how the world works. These mental images, if iwith new ideas, can prevent the latter from being turned into real

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    Senge Five Disciplines

    Shared vision refers to the ability of a group to form and hold a co

    picture of a desired future that its members seek to create.

    According to Senge, a shared vision is "a vision that many people

    committed to, because it reflects their own personal vision. Shared

    for learning organizations because it provides the focus and energlearning." (teamwork)

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    Senge Five Disciplines

    Team learning, according to Senge, is "the process of aligning and developin

    of a team to create the results its members truly desire."

    Achieving personal mastery and having a shared vision are important to a le

    organization, but not enough.

    People need to be able to learn together, so they can act together. Team leawith a 'dialogue', or the process of 'thinking together', wherein its members

    personal assumptions and enter into a state of genuine group awareness an

    thinking.

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    Rationale of learning organisationsWhy Learning Organisations Work

    1. The People Develop

    - Greater motivation- The workforce is more flexible

    - People are more creative

    - Improved social Interaction

    2. Teams and Groups Work Better

    - Knowledge sharing

    - Interdependency

    3. The Company Benefits

    - Breakdown of traditional communication barriers

    - Customer relations

    - Information resources

    - Innovation and creativity

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    Action imperatives for the success of a learniorganisation

    Awareness

    Organisations must be aware that learning must take place at ajust the Management level.

    Once the company has excepted the need for change, it is thenfor creating the appropriate environment for this change to occ

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    Action imperatives for the success of a learniorganisation

    Environment

    Centralised, mechanistic structures do not create a good environment.

    Therefore a more flexible, organic structure must be formed It is necessary

    to take on a new philosophy; to encourage openness, reflectivity and accep

    uncertainty.

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    Action imperatives for the success of a learniorganisation

    Leadership

    Leaders should foster the Systems Thinking concept and encourage learning

    the individual and organisation in learning. It is the leader's responsibility to

    restructure the individual views of team members.

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    Action imperatives for the success of a learniorganisation

    Empowerment

    The Focus of control shifts from managers to workers. The wor

    become responsible for their actions; but the managers do not

    involvement. They still need to encourage, enthuse and co-ord

    workers.

    Equal participation must be allowed at all levels so that memb

    learn from each other simultaneously.

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    Action imperatives for the success of a learningorganisation

    Learning

    Companies can learn to achieve these aims in Learning Labs.

    These are small-scale models of real-life settings where management teams

    to learn together through simulation games.

    They need to find out what failure is like so that They can learn from their mthe future. These managers are then responsible for setting up an open, fle

    atmosphere in their organisations to encourage their workers to follow thei

    example.

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    Strategy (Argyris and Schn)

    Phase 1Mapping the problem as clients see it. This includes the factors and relationships that define the

    relationship with the living systems of the organization.

    Phase 2The internalization of the map by clients. Through inquiry and confrontation the interventionists

    develop a map for which clients can accept responsibility. However, it also needs to be comprehen

    Phase 3Test the model. This involves looking at what testable predictions can be derived from the map

    practice and history to see if the predictions stand up. If they do not, the map has to be modified.

    Phase 4 Invent solutionsto the problem and simulate them to explore their possible impact.

    Phase 5 Produce the intervention.

    Phase 6Study the impact. This allows for the correction of errors as well as generating knowledge for futu

    work well under the conditions specified by the model, then the map is not disconfirmed.

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    Innovation and Creativit

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    Innovation and creativity

    creativity is manifested in the production of a creative workexample, a new work of art or a scientific hypothesis) that isoriginaland useful.

    innovation begins with creative ideas,

    creativity by individuals and teams is a starting point for innovatiois a necessary but not sufficientcondition for the second

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    What Is

    Creativity?

    Combining new ideas in

    unique ways or associati

    ideas in unusual ways

    What IsInnovation?

    Turning creative ideas int

    useful products, services

    or methods of operation

    rea v y env ronmen n an

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    rea v y env ronmen n anorganization

    Encourage sensible risk-taking

    Take responsibilityfor both successes and failures

    Allow mistakes

    Allow timefor creative thinking

    Rewardcreativity

    Encourage creative collaboration

    Implement Creativity in the selection process

    Steps to Personal Creativity (i di

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    Steps to Personal Creativity (indiv

    1. Accept that you can be creative

    2. Question traditional assumptions

    3. Expand your problem-solving styles

    4. Employ creativity techniques

    5. Practice thinking in new ways

    6. Learn when your creative thinking is best

    Six Distinct but Interrelated Resources Req

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    Six Distinct but Interrelated Resources ReqCreativity

    Intellectual abilities The creative skillto see problems in new ways and escape the bounds of conventio

    The analytic skillto recognize which of ones ideas are worth pursuing and which a

    Knowledge One needs to decide to use ones past knowledge, but also decide to not let the kn

    a hindrance rather than a help.

    Styles of thinking

    A divergent styleis particularly important for creativity.

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    Six Distinct but Interrelated ResourcesRequired for Creativity

    Personality

    Willingness to overcome obstacles, willingness to take sensible risktolerate ambiguity, and self-efficacy

    Motivation

    Intrinsic, and task-orientedmotivation is essential to creativity

    Environment

    Supportiveenvironment for crowd-defying ideas

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    Forces of Innovation:Market Pull - R&D Push

    Market pull looking for the best way of satisfying a newly emerging customer demand

    improvement of the existing products, extension of the existing offer or decrease o

    impulses for continuous, incremental innovations or for process innovations

    Research and development push looking for commercial use of new impulses resulting from the R&D results

    generating of new markets for conceptually different products

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    Creativity results:

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    Creativity results:

    in producing or bringing about something partly or wholly new; (P

    in investing an existing object with new properties or characteristi(packaging)

    in imagining new possibilities that were not conceived of before; (study)

    and in seeing or performing something in a manner different fromthought possible or normal previously. (innovation)

    Barriers to creativity

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    Barriers to creativity

    The value of getting things right time can induce a fear of mistakes and e

    So can a blame culture where people become afraid of making mistakes.

    Managers who are not as secure as they should be can resist or block idetheir own or which they see as threatening.

    A culture that over emphasizes cost containment, processes, consistency

    A reward system that too exclusively celebrates getting things done fast wmistakes.

    A general fear of risk taking, wanting to analyze everything to death, to wwhat others do in the market before acting.

    Creative Process

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    Creative Process

    Problem Definition- including problem analysis, redefinition, and all asp

    with defining the problem clearly.

    Idea Generation- The divergent process of coming up with ideas.

    Idea Selection- The convergent process of reducing all the many ideas insolutions

    Idea Implementation- Turning the refined ideas in reality.

    St f ti

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    Stages of creative process

    Orientation: Need identification, intention to create.

    Preparation: Information collection, problem formulation

    Incubation: seeking solution, evaluation of variants, unconsciou

    Illumination : synthesis, creation of ideas

    Realization: transformation of the idea into reality

    Verification: evaluation and improvement

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    Convergent vs. divergent thinkin

    Convergent thinking involves aiming for a single, correct sol

    problem

    Divergent thinking involves creative generation of multiple aa set problem.

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    CREATIVITY TECHNIQUES

    Trial and error

    Brainstorming

    Inspirational questions

    psychological-cognitive, such as: Synectics;

    Lateral thinking (courtesy of Edward de Bono),

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    Trial and error

    select a possible answer, apply it to the problem and, if not successfu

    generate) another possibility that is subsequently tried. The process epossibility yields a solution.

    more successful with simple problems, often resorted to when no appapplies.

    Nevertheless, this method is often used by people who have little knothe problem area.

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    Trial and error - features

    solution-oriented: trial and error makes no attempt to disco

    solution works, merely that it isa solution.

    problem-specific: trial and error makes no attempt to genersolution to other problems.

    non-optimal: trial and error is an attempt to find asolution,solutions, and not the bestsolution.

    needs little knowledge: trials and error can proceed where tlittle or no knowledge of the subject.

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    Group creativity

    Brainstorming Are N minds better than one?

    Often not

    Groups often come up with a smaller number of possible solutions than thwould alone

    One persons output interferes with other peoples memories

    Growing conformity within a group

    Inspirational questions - 1

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    p q What can I substitute to make an improvement?

    What if I swap this for that and see what happens?

    How can I substitute the place, time, materials or people?

    What materials, features, processes, people, products or components can I

    combine? Where can I build synergy?

    What part of the product could I change? And in exchange for what?

    What if I were to change the characteristics of a component?

    What happens if I warp or exaggerate a feature or component?

    What will happen if I modify the process in some way?

    What other market could I use this product in?

    Who or what else might be able to use it?

    What if I did it the other way round?

    What if I reverse the order it is done or the way it is used?

    How would I achieve the opposite effect?

    Inspirational questions - 2

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    Inspirational questions 2

    Who else has solved this problem?

    What similar area of expertise might have solved this problem?

    Is there anyone else in the company who knows how to solve this?

    What else could we use to solve the problem?

    Where else might this problem have been solved?

    What other companies might know how to solve this?

    What similar problems have been solved, and how?

    What other industries face the same problem and what do they do ab

    Inspirational questions - 3

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    sp at o a quest o s 3

    How would they think?

    What objects and items would they be using?

    Where would they be doing it?

    How would they see the problem?

    What action would they take?

    How would they explain the problem?

    How would they solve the problem?

    What does your situation or your problem remind you of?

    What other areas of life/work experience similar situations?

    Who does similar things but not in your area of expertise?

    Inspirational questions - 4

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    p q

    What would my perfect solution be?

    What effect would my ideal solution have?

    What if money/morals/laws did not matter at all?

    What would I do if I had unlimited power and resources?

    What would my ideal solution look like?

    Synectics (William Gordon)

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    y ( )

    problem solving approach that stimulates thought processes of which thgenerally unaware.

    central principle: "Trust things that are alien, and alienate things that are

    Encourages fundamental problem-analysis and,

    the alienation of the original problem through the creation of analogies

    It is thus possible for new and surprising solutions to emerge.

    Synectics is more demanding of the subject than brainstorming, as the minvolved mean that the process is more complicated and requires more effort.

    Synectics - steps

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    Synectics steps

    Analysis and definition of the problem

    Spontaneous solutions

    Reformulation of the problem Creation of direct analogies

    Personal analogies (identification)

    Symbolic analogies (contradictions)

    Direct analogies

    Analysis of the direct analogies

    Application to the problem

    Development of possible solutions

    Lateral thinking (de Bono)

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    Lateral thinking (de Bono)

    methods of thinking concerned with changing concepts and perceptionthat is not immediately obvious, ideas that may not be obtainable by ustraditional step-by-step logic

    shifting of thinking patterns, away from entrenched or predictable thinkunexpected ideas.

    A new idea that is the result of lateral thinking is not always a helpful ongood idea is discovered in this way it is usually obvious in hindsight, whilateral thinking shares with a joke

    We may need to solve some problems not by removing the cause but bythe way forward even if the cause remains in place

    Lateral thinking vs. critical thinki

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    g

    Critical thinking is primarily concerned with judging the truth vastatements and seeking errors.

    Lateral thinking is more concerned with the movement value ofand ideas. A person would use lateral thinking when they want one known idea to creating new ideas.

    Critical thinking is like a post-mortem while lateral thinking is lik

    Lateral thinking - inspiration

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    Lateral thinking inspiration

    Random Entry: Choose an object at random, or a noun from a dictionary, awith the area you are thinking about.

    Provocation: Declare the usual perception out of bounds, or provide somealternative to the usual situation under consideration. Prefix the provocatio'Po" to signal that the provocation is not a valid idea put up for judgement for new perception.

    Challenge: Simply challenge the way things have always been done or seenare. This is done not to show there is anything wrong with the existing situto direct your perceptions to exploring outside the current area.

    Six de Bono hats

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    Six de Bono hats

    White hat(Blank sheet): Information & reports, facts and figures (obje

    Red hat(Fire): Intuition, opinion & emotion, feelings (subjective)

    Yellow hat(Sun): Praise, positive aspects, why it will work (objective)

    Black hat(Judge's robe): Criticism, judgment, negative aspects, modu(objective)

    Green hat(Plant): Creativeness, Alternatives, new approaches & 'evergoes', idea generation & provocations (speculative/creative)

    Blue hat(Sky): "Big Picture," "Conductor hat," overall process (overvie

    Example - meeting

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    Example meeting The meeting may start with everyone assuming the Bluehat to discuss ho

    will be conducted and to develop the goals and objectives.

    The discussion may then move to Redhat thinking in order to collect opireactions to the problem. This phase may also be used to develop constractual solution such as who will be affected by the problem and/or soluti

    Next the discussion may move to the (Yellowthen) Greenhat in order toand possible solutions.

    Next the discussion may move between Whitehat thinking as part of devinformation and

    Blackhat thinking to develop criticisms of the solution set.

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    Case Study

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    Dells War on InventoryA Case Study in Technology Acceleration and Organizational Sca

    D ll W I t

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    Dells War on Inventory

    In less than 20 years, Michael Dell moved from cluttere

    room operations

    to a $25 billion a year company,

    outperforming giants such as IBM, Hewlett-Packard anCompaq in the process.

    H ffi i t l h i

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    Hyper-efficient supply chain

    Dell is relentless in negotiating the best prices from supand

    driving those savings through the supply-chain.

    To do that, Dell replaces inventorywith information.

    Safety stocks are very expens

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    y y p But they are very difficult to reduce.

    Reduction requires complete and accurate information and forecastproduction and procurement.

    Dell has standardized worldwide on i2 Technologiessoftware,

    with hourly updates of all information from customers to suppliers.

    five hoursworth of inventory on hand, including work in progress.

    This increases cycle time at Dells factories and reduces warehouse s

    The warehouse space is replaced with more manufacturing lines in a vir

    Dell has traded property for information.

    Customers

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    Dells online customer procurement Website puts Dell in contact wthan 10,000 customers daily

    giving them more than 10,000 opportunities to forecast demand and balance

    For example, Dell can alter supply constraints through promotions and substitu

    If inventory is low on Sony 17-inch monitors, Dell can offer a 19-inch model at the 1This moves a lot of demand in real-time.

    Competitors selling through retail channels cannot do this!

    The bottom line

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    The bottom-line

    Dell writes off less than 0.1% of total material costs in

    and obsolete inventory

    Their competitors write off 2% to 3%.

    Core Competences

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    Core Competences

    Identify the business of the firm

    Identify the key activities on the value chain, anddifferentiate them from supporting activities

    Identify the critical success measures generated foeach activity (supporting and key).

    Cisco

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    Cisco Systems has a reputation for expanding its capabilities through a

    Shortly after going public in 1990

    went on a buying spree, acquiring 73 firms from 1993 to 2000.

    By late March 2000, at the height of the dot-com boom,

    Cisco was the most valuable company in the world, with a market capitalization$US 500 billion.

    Early years This had not always been the case

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    This had not always been the case.

    During its first decade after it was founded in 1984 the company acquired no businesses

    sticking to selling routers and only routers.

    Cisco went public in 1990. three years later, a faster and cheaper piece of hardwarethe switchthreatened its busin

    Cisco engineers scrambled to produce their own switch, but realized that they could notcapabilities to produce one anytime soon.

    In 1993 of Crescendo Communications for $95 million which got them into switchesfa Cisco's engineers grumbled that they could have produced their own switch in time.

    Most of Crescendo's executives stayed with the company, and switches became a core C

    The switching unit today generates nearly $10 billion in annual revenues.

    Acquisitions

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    q

    Since then, using acquisitions where they are unable to develop internal capabilities quickly enough to be com

    Acquisitions and partnering with other companies have enabled Ciscomarket dominance.

    Cisco has made inroads into many network equipment markets outsidrouting, including Ethernet switching, remote access, branch office ro

    networking, security, IP telephony and others.

    Acquisitions

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    Acquisitions What began as a one-off response in an emergency soon evolved into a long-term s

    essential part of the Cisco culture.

    While most big tech companies rely heavily on R&D to create products and busines

    Cisco, after Crescendo, decided to strategically use acquisition to expand its capabil

    In 1995, Cisco acquired its way into firewalls and cache engines.

    In 1998, Internet telephony.

    In 2003, with the acquisition of Linksys, a home-networking company, In 2006 by acquiring Scientific Atlanta, a set-top-box manufacturer.

    People

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    The vast majority of Ciscos acquisitions have been targeted technology buys:

    small start-ups with 50 or less engineers whose products link back to Ciscos core compeand

    Cisco has come to realize that the acquisition of technology really isn't just about techno

    "The people are the most strategic asset. Ned Hooper, vice president of business development, whose former company LightSpeed was acqu

    If, after the acquisition, Cisco loses the technologists and product managers who createdrouter,

    then it has lost the second and third generations of the product that existed only in those em

    That, is where the billion-dollar markets lie. And that is where Cisco's acquisitions are aimexpertise,"