Disrupt and Deliver An innovation strategy

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1 Disrupt and Deliver An innovation strategy Vimi Grewal-Carr Katy Bentley 24 February 2016

2 Team resumes Vimi Grewal-Carr Katy Bentley Vimi Grewal-Carr Innovation Lead Partner London, UK Vimi is Managing Partner on the UK Executive with responsibility for Innovation and Delivery Models. She is a Global Lead Client Service partner working with Capital Market & Investment Banking clients to help them address their most critical business issues and transform their organisation in response to significant market events. Her specific expertise includes M&A integration, advising clients on the use of offshoring/nearshoring, building STP solutions and technology integration. Katy Bentley Innovation Senior Manager London, UK Katy manages a Firm wide portfolio of disruption projects partnering closely with our innovation partners and community. Focus is on identifying global and cross service line opportunities to improve our business of today and create the business of the future. Katy has a background in managing successful audit engagements within the Manufacturing sector. She is currently leading a series of disruptive technology pilots working with a number of third party vendors. She is a qualified programme manager and a qualified chartered accountant (ACA).

3 Exponential change is reshaping the marketplace providing all of us a tremendous opportunity Disruption has been driven by the relentless, exponential increase in computing power, enabling new products, services and business models Startup companies unburdened by inertia or Wall St. expectations are growing faster than ever and displacing incumbents in record time

Innovation Strategy: Innovation as a solution Mindset A shift in leaderships mental model is required to achieve a new business model that can compete and remain relevant in the future Focus A higher

4 Innovation Strategy: Innovation as a solution Mindset A shift in leaderships mental model is required to achieve a new business model that can compete and remain relevant in the future Focus A higher order of ambition, bold ideas, discipline and structure are required to enable smart choices and efficient trade-offs Scale & Execute Results require speed and agility and can only be achieved at scale through rigor, dedicated resources and clear governance 4

5 Mindset 5

6 Mindset: Disruption is impacting company priorities

7 Focus

8 Disruptive Trends A diverse set of exponential technologies and organizational enablers are converging and disrupting the old way of doing business Artificial Intelligence Cognitive capabilities that can augment or replicate human thinking Robotics Next generation robotics/automation technologies to work with humans Biotechnology & Bioinformatics Digitization of the genome + ability reprogram DNA for new therapies Energy & Environmental Systems Greater cost effective management of inputs/outputs than ever before Digital Mftg. & Nanotechnology 3D printing and digital design digitize product creation and distribution Computation, Networks & Sensors Increased speed, declining costs of computation, networking, and sensing Digital Medicine Increasing the sensing capabilities focused around the human body Exponentials Dematerialization: The convergence of many devices into one multi-functional utility Democratization: Availability of almost all technologies, processes and functions to the individual De-monetization: Individuals creating free products or services for all to use Crowdsourcing & Micro-work Leveraging communities to achieve a specific goal Crowdfunding Leveraging the public to fund the creation of a product or company Incentive Competitions Prize-based competitions to engage the community to solve a problem DIY & the Maker Movement Creative potential unlocked when the public can make their own items Digital Economies/Blockchain Crypto-currency, mobile payments, and other economic innovations Gamification Leveraging game mechanics to incentivize specific behaviors Sharing and Social Economy An economic model that focuses on community and sharing

9 Focus: Blockchain TRANSFER X Traditional 3 rd Party Blockchain 9

10 Focus: Blockchain a company s response Which is right for you? Working internally Partnering with third parties Working with competitors 10

11 Focus: Automation will disrupt all industries, but not equally Transportation and Storage Accommodation and Food Services Wholesale and Retail, repair of motor vehicles Manufacturing Mining and Quarrying Financial and Insurance Activities Agriculture, Forestry and Fishing Real Estate and Construction Arts, Entertainment and Recreation Human Health and Social Work Activities Professional, Scientific and Technical Activities Administrative and Support Service Activities Public Administration and Defence, Compulsory Security Education Information and Communication 0% 20% 40% 60% 80% 100% Percentage of jobs Low risk of automation Medium risk of automation High risk of automation Source: Frey and Osborne, ONS, Deloitte analysis

12 Automation in action retail companies have had to adapt Social influences 33% of shoppers COMMERCE INTEGRATION BUY BUTTONS SOCIAL ANALYTICS

13 Case study - financial services Blockchain Developing a Blockchain PoV Crowd platform Automation Exploring crowd applications

14 Scale and Execute: What does it mean for us?

The rapidly shifting environment is impacting business in a variety of ways: Innovation as a solution Increasing degree of computerisation and automation Structural shift New & increasingly open

15 The rapidly shifting environment is impacting business in a variety of ways: Innovation as a solution Increasing degree of computerisation and automation Structural shift New & increasingly open sources of information Evolving Regulation Competition from internal client departments New source of competition Broader competitive set as service line and geographic boundaries dissolve Mandated Audit Rotation Demand for modular pieces of work Commoditisation of our core services Entire competitive set seeking new ways to add value to protect and drive margins Alternative delivery and profit models Drive to fullservice offers New, non-traditional competitors The Unknown Professional Services

16 For us at Deloitte our innovation strategy means doing existing things differently and doing new things A portfolio by design with core business innovation at it s heart: New Businesses A balanced portfolio delivered through: Stimulating and delivering disruption in our 12 core services Building new businesses Our external innovation offering 16

17 Building new businesses through our investment fund Add value and break down barriers Connect across the business to add value to the propositions. Create awareness of innovation. Compliance and Governance Ensure the portfolio of innovation pushes the company but does not break the rules. Invest To invest seed or bridge funding in more mature internal or external proposition. Support from shared services Shared service expertise is needed to support growth. 17

18 Challenges and lessons learnt so far Focus on what is relevant Leadership needs to drive the agenda Talent models must be adapted to incentives innovative thinking Failure must be celebrated Entrenched structures and ways of thinking must be challenged 18

19 Thought Leadership Blockchain Enigma. Paradox. Opportunity Disrupt : Deliver Automation Automate this: The business leader s guide to robotic and intelligent automation Robotic Process Automation Transformers : How machines are changing every sector of the UK economy The robots are coming - Moving beyond traditional methods of automation Technology and people - The great job-creating machine From brawn to brains: The impact of technology on jobs in the UK Agiletown: the relentless march of technology and London s response 19

20 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ( DTTL ), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) Fax: +44 (0)

Extract of article published in International HR Adviser magazine 2013. The role of HR in global mobility

Extract of article published in International HR Adviser magazine 2013 The role of HR in global mobility Increasingly the regional HR director for Asia Pacific for many large multinationals will be based