This document discusses Sberbank's approach to deploying innovative technologies. It outlines Sberbank's technology innovation strategy, activities, and management model. The strategy involves monitoring technology trends, exploring new ideas through pilots, and demonstrating potential solutions. Sberbank manages a portfolio of innovation projects and assesses their maturity, value gaps, and alignment with strategic initiatives. The document provides templates for tracking innovation projects and managing the project portfolio. It also discusses potential derailment factors for technology innovation efforts.

1. 1
Deploying Innovative Technologies –
The Sberbank Experience
April 2014
Dr. Mircea Mihaescu
Managing Director, Sberbank Digital Ventures

2. 2
Automobile
The Pace of Technology Innovation is Accelerating
0 25 50 100 125 15075
Years
0
50
100
TelephoneElectricity
Radio
Television
VCR
PC
Mobile
Phone
%Penetration
Internet Services:
Pinterest reached 17 million
unique visitors nine months after
launch in May 2011

3. 3
Emerging Technology Evolution
Gartner Hype Cycle

4. 4
Analysis Framework
for Emerging Technologies
“The right technology innovation at the right time”
Research
Pilot?
Why Not Yet?

5. 5
Entry point decision is critical
to avoid “long fuse” effect
French Matra
videophone
1970
AT&T
Picturephone
1964
Motorola
DynaTAC
1983

6. 6
Technology Innovation Projects
Management Model
“Ideas” Portfolio of
Innovation Projects

7. 7
Technology Innovation Strategy
• Supporting Internal Factors
– Technical capabilities
– Organizational capabilities
– Success of the current
business model
– Funding
– Top management vision
• Influencing External factors
– Capabilities in the external
network – vendors, alliances
– Industry structure
– Competition
– Rate of technological change
• Invest in changes in technology and business models with the
intent of outpacing competitors through radical innovation.
• Commit to a portfolio of investments that are fundamental for
ongoing success

8. 8
Technology Innovation Activities
• Monitor and analyze the technology innovation
landscape
• Competitors, partners, vendors, industry experts
• Customers, employees (crowdsourcing)
• Explore new ideas, develop and pilot new solutions
to help business divisions and their customers
• Innovate to accelerate new product and process
deployment
• Demonstrate what “the future of business” can be
• Collaborate with universities and research institutes
in Russia and worldwide
Innovation
Projects
Advanced
Studies
Technology
Research

9. 9
Technology Innovation Projects
Assessing Maturity and Value Gaps
• Technology Innovation Maturity Stages
– Embryonic – research
– Emerging – startups
– Adolescent – adoption
– Mature – version 1.0 à 3.0
• Innovation Value Gaps – concept vs. solution
– Performance, scalability
– Integration with existing environment
» processes, infrastructure, organizational
structures and capabilities
– Penetration – by when is it expected to achieve
critical deployment / mass adoption?
– Payback, ROI – estimate timeline
• Innovation team KPI / Value Metrics need to address
all 4 value gaps
Technology Research
Center
IT Department
radical
incremental

10. 10
Technology Innovation Projects
High-Level Plan Template
Concept =
Idea Creation and
Selection
• Scope the problem
• Track, rank, decide
Development
• Evaluate technology, share, test,
review, revise plans
• Incubate prototypes, pilots
Deployment
• Large-scale pilots
• Evangelize, transfer, support,
training
AGILE--FLEXIBLE--NIMBLE
Willing to change quickly to accommodate
new directions that lead to further growth
Experiment, learn fast – Launch and learn -- Learn by doing
Development
and
Integration
Vendors
Emerging
Technology Vendors
Internal
Resources
“build/buy/partner” mix
based on skills availability
10% to 30%
target “fail rate”

11. 11
Technology Innovation Projects
The Innovation Team (Forrester model)
Technology
Innovation Council

12. 12
Project Name:
Project Lead:
Description (the “elevator pitch”)
In simple terms- what is the business problem or opportunity? How does
this address it? Where does this fit into the existing portfolio of applications
our employees or customers use today? Why would this be considered a
better alternative or strong addition to the portfolio?
Size of proposed investment
__ Minimal __Small (1-2 )
__ Medium(3-4) __ Large ( 5 and over)
Other costs – vendors, special HW/SW
Current approach and what is the proposed innovation?
How is this different than existing approaches (are there any)? Does
functionality exists anywhere else - if yes, why is this better, faster, smarter,
etc? If this is a new capability, how would this improve productivity, reduce
cost, increase revenue? Who else is experimenting with similar ideas -
who are they aligned with, how are we aligned with them or how is their
work different?
For updates: What's new in our thinking since we started project? Is
technology still right /relevant, is this still the right approach?
Use case/business value statement and potential stakeholder
Who (end user types) are we talking with about this concept? Who is the potential
audience and how large is that audience?
Who is the stakeholder(s)? What decision maker is (should be) involved? Who
should we be aligned with for pilot and eventual deployment? What role does this
play in strategic initiatives?
Key Milestones/Date
Amount of time estimated in each phase? When is project end planned? What are
exit criteria? How have we aligned with key stakeholders in each phase? Are there
any dependencies on other projects or tools?
Strategy Alignment – name of strategic initiative, if any
Innovation Project Tracking Template

13. 13
Technology Innovation Projects
Portfolio Management
VERY HIGH
CCC AAA
HIGH
DDD BBB
MEDIUM
FFF EEE
LOW
VERY LOW
VERY LOW LOW MEDIUM HIGH VERY HIGH
BUSINESSIMPACT
RISK and COMPLEXITY
Safe Risk
Preferred Avoid
LEGEND
Completed Projects
Small team
Large team
XLarge team
Standard IT
Projects
Incremental
Improvement
Projects in BUs

14. 14
Technology Innovation Derailment Factors
What Can Go Wrong…
• Balance creativity and value
creation
• Too many incremental
innovations
• ROI is the only success
metric
• Inflexible funding
• Focus on innovation process
efficiency as opposed to
value creation
• Managers respond to good
ideas with indifference and/or
complacency
• Too much criticism, not
enough support/collaboration
• “If it’s not my idea, it must be
bad”
• Failures are punished
• Incentive system for short-
term efficiencies
Metrics Culture