SETTING STRATEGIES FOR UNCERTAIN TIMES
+ Business Case: Transforming analytics into actions!
World Forum Disrupt | London, 18/01/2017
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• Innovation is a “state of mind” not an
• Disruption comes from people not from
• The future of modelling relies on data
availability and analytics
• Institutions should adapt their policies to
retain non-aligned people
• Innovation is not “catching-up”
Identify The Big Issues: What is pulling you back?
How do you differentiate yourself?
What is your vision? Do you tackle an issue of fix a
probleme? Do we need this product/ Company?
Make sure that you organisation is effective and can
deliver! Is your culture adequat? Measure and assess
your effectiveness, your risk, etc…
And Just Make It Happen!!!!
• Hawley’s Risk Theory of Profit
• Clark’s Dynamic Theory of Profit
• Schumpeter’s Innovation Theory of Profit
• Walker’s Rent Theory of Profit
• Knight’s Theory of Profit
Theory of Profit: Frictions
• The Innovation Theory of Profit was proposed by Joseph. A. Schumpeter.
• Innovation refers to any new policy that an entrepreneur undertakes to reduce
the overall cost of production or increase the demand for his products.
• Profits earned are for a shorter duration as the competitors imitate the innovation.
After some time, with the others imitating the innovation, the profits started
• Thus, innovation can be classified into two categories;
1. activities which reduce the overall cost of production such as the
introduction of a new method or technique of production, the introduction of
new machinery, innovative methods of organizing the industry, etc.
2. activities which increase the demand for a product. Such as the
introduction of a new commodity or new quality goods, the emergence or
opening of a new market, finding new sources of raw material, a new
variety or a design of the product, etc.
Schumpeter’s Innovation Theory of Profit
Innovation Must be Dynamic!!!
New Asia Innovation
• Company culture is the personality of a company.
• It defines the environment in which employees
• Company culture includes a variety of elements,
including work environment, company mission,
value, ethics, expectations, and goals.
• The impact of the company architecture and the
organisational chart is non-negligible as it will impact
how innovation hubs should be positioned.
• Is your strategy compatible with your culture?
“Evolve or die” A Cultural Change
A recent Harris Poll survey of top business leaders found that 65% felt increased pressure to innovate.
• Innovation only comes by invitation. Invite people to bring
forth their new ideas.
• Innovation is not a solo sport, it requires a group of players
with skills specific to the effort.
• Encourage everyone to put their ideas to test fast, fail fast,
and then reiterate.
• Value the lessons taken from failure as much as your
successes, and apply those lessons toward each new attempt.
• Ensure this behavior gets modeled at every level, from the
very top to individual contributor.
• Resist the desire to project manage your way to innovation.
Where to Locate the Innovation Hubs?
• Innovation centers fall into four broad categories, according to
Capgemini/Altimeter’s research. They are:
• in-house innovation labs: In-house innovation center serves as an
innovation engine, with hundreds of staff performing everything from inception
• university residences: The university residence model sets up centers on
campus to drive innovation through academic researchers.
• community anchors: Community anchor innovation centers actively identify
mentors and provide opportunities for startups to work with the company to
test new products on customers.
• and innovation outposts: Innovation outposts are small teams based in
technology hubs like Silicon Valley. This allows large companies to be
involved in the tech community without a significant investment upfront.
Application: The New Banking Ecosystem
Disintermediation and automation
• More alternatives for daily banking
• Specific offerings from TPPs (PSD2)
• Increase transparency
• + Ease of switching
• = Price War
• Free access to data to propose targeted,
better, more appropriate offers
• Banks can use data to increase their
share of wallet