This document summarizes a presentation on innovation given by Serge Taborin, the Group Digital Innovation Director at Aviva. The presentation covers the topics of incremental versus disruptive innovation, startups versus corporations, and innovation opportunities in the insurance industry. Taborin discusses how disruptive innovations require new business models and customer bases and experience slower adoption rates. He contrasts the advantages of startups, like focus and flexibility, against the advantages of corporations, like established brands and processes. The presentation concludes that the insurance industry is ripe for innovation due to customer dissatisfaction, inefficiencies, and emerging technologies that could transform or replace existing business models.

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Customers & Innovation
Serge Taborin
Group Digital Innovation Director
Aviva

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Agenda
• World of change
• Incremental vs. Disruptive Innovation
• Startups vs. Corporates
• Innovation & Insurance

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Technology
Consumer
Adoption
New
Services

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What is innovation
Creating a value proposition that solves
the problem better than available
alternatives
But…
• Understanding the new thing
• Time to learn how to use it
• Risk
• Natural resistance to change

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A bit of wisdom…
Anyone can have a perfect strategy
until they get punched on the nose
Mike Tyson

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Incremental vs. Disruptive
Incremental Innovation
- Doing what we do today, better -
• Known product characteristics
• Well understood
• Established value chain for
delivery
• Established business model
• Ready-made customer base
• Fast adoption
• Steady-state, predictable
Disruptive Innovation
- New value paradigm -
• New product characteristics
• Little existing understanding
• New value chain
• New business model
• Different customer base
• Slow adoption – requires market
education
• Exponential growth

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“iPhone isn’t a threat to RIM’s core
business. It’s not secure, it has a rapid
battery drain and a lousy keyboard.”

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“The development of mobile phones will be similar in PCs. Even with
the Mac, Apple has attracted much attention at first, but they have still
remained a niche manufacturer. That will be in mobile phones as well”
Anssi Vanjoki, Nokia's chief strategist
“There's no chance that the iPhone is going to get any significant
market share. No chance. It's a $500 subsidized item.”
Steve Ballmer, Microsoft CEO
“Is there a toaster that also knows how to brew coffee? There is no
such combined device, because it would not make anything better
than an individual toaster or coffee machine : it is important to have
specialized devices.”
Jon Rubinstein, Palm CEO

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Corporates have:
- Brand
- Lots of customers
- Proven business model(s)
- Processes
- Understanding of ecosystem
- Difficult to upset the
ecosystem
- Legacy processes/tech etc
- Multiple projects
- Fail fast and move on
- Have quarterly/annual targets
- It’s a job
Startups have:
- No customers
- No brand
- Little money/resource
- Unproven product
- Unproven business model
- Nothing to protect
- Best tools for the job
- Laser focus on opportunity
- Learn fast and evolve
- Targets based on adoption
- It’s their life
BUT…
Corporates vs. Startups

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The “Big Idea”

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Insurance & Innovation
Ticking every disruption box:
• Dominated by a (relatively) low number of incumbents
• Low customer satisfaction levels
• Significant inefficiencies
• Lack of transparency
• Huge industry
• Transformational role of technology
• Softening regulation

16. Customer Disconnect
• Focus on products rather than solutions
• Complexity of offerings
• Muddled value proposition
• Wording/labelling
• Millennial challenge

17. Our World is Changing
• IOT
• Genetics
• Artificial Intelligence
• Blockchain
• Drones
• Augmented reality / Virtual
Reality
• Messenger platforms
• APIs

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Providing sufficient focus to activities that could
one day transform or replace the current
business model
Innovators Dilemma

19. Think what you stand for, not
what you do today

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Thank you