This document discusses how organizations can respond to digital disruption. It notes that rapid technological changes are enabling new business models and customer experiences. To avoid being disrupted, companies must adopt modern work practices like DevOps, automation, collaboration, iterative delivery, and cloud-first strategies. They should also cultivate an innovative culture with traits like empowerment, experimentation, diversity, and questioning assumptions. The document provides examples of disruption in various industries like insurance, transportation, and geospatial services to illustrate these points.

1. to disrupt or be disrupted?
Hugh Saalmans, IAG
Location Engineering Director
@minus34

2. We are in a period of
rapid change
A customer-led, data driven,
technology enabled age

3. Do we as
professionals and organisations
need to respond to this?

4. If you worked for Blockbuster

5. or Nokia’s
mobile phone division

6. or Kodak

7. You’d probably say Yes

8. If you work for these guys,
you’re probably not fussed

9. So how do we respond?

10. IAG & geospatial
disruption
the enablers
your response
to disrupt or be disrupted?

11. ANZ’s largest general insurer

12. ANZ’s largest general insurer
With revenues over $11bn and $2tn in assets
protected; including millions of homes & cars
and 100,000’s of businesses

14. We’re heavy users of geospatial tech and
data, across many areas of the business.
The key things we use geospatial for - are
fundamental to insurance
For example:

15. 2012 flood risk data
Risk based pricing: using a combination of GNAF, natural peril
data and HERE’s road data and POIs, for example, to determine
each customer’s individual risk at the property level

16. Asset Data: using building & property data, such as PSMA’s
Geoscape, to improve risk modelling & simplify the quotation
process for our customers

17. Major Event Mapping: using live weather & bushfire feeds to
be alerted to disasters before they happen; to respond more
quickly to impacted customers

18. Australian Business Roundtable: using our geospatial & peril modelling
expertise to generate reports into the cost of disasters through the
Australian Business Roundtable.
The Australian Business Roundtable champions disaster resilience &
community safety and is comprised of the organisations above

19. ANZ’s largest general insurer

20. ANZ’s largest general insurer
A customer led, data-driven
organisation

21. STRATEGY

22. STRATEGY
Why are we focussing on this…?

23. IAG’s Problem
Disrupters could deliver
their services with half
IAG’s expense ratio

24. disruption
What is disruption? – there are 2 perceptions…

25. disruption?
First - there’s this big, scary digital wave coming that could
impact your industry, but you haven’t worked out:
Whether it’ll impact your organisation? How it’ll impact
your organisation? How big the impact will be? or How to
mitigate it’s impact?

26. disruption?
Or there’s this exciting opportunity to ride the digital wave and:
- create a new service that fills an existing gap in the market; or
- create a new way of doing business that provides superior
customer and end user experiences, and gains you market share

27. Perceptions aside,
What is disruption?

28. Changes enabled by digital
technologies; occurring at
a speed & scale that
disrupt existing ways of
doing business

29. Its about combining
innovative processes
along with data and
technology to create
effortless experiences
for customers & end
users

30. It’s not about creating lots of choices

31. disruption may be tech enabled,
but it’s still people led

32. Technology may enable disruption, but at its heart is a deep
understanding of what people want, what motivates them and how they
want technology to work for them.
And that applies whether you’re a consumer or at work

33. examples of disruption

34. blockchain

35. https://www.newscientist.com/article/2101667-blockchain-grid-to-let-neighbours-trade-solar-power-in-australia/
PowerLedger allow households with surplus energy to sell it to
other households, using blockchain to verify & record transactions.
No energy provider, just your neighbour selling their excess power
to you! A trial is about to begin in Busselton, WA

36. http://www.forbes.com/sites/laurashin/2016/04/21/republic-of-georgia-to-pilot-land-
titling-on-blockchain-with-economist-hernando-de-soto-bitfury/#3a9b5b076550
The Republic of Georgia are about to trial the use of blockchain for Land
Titling with a local technology provider, BitFury.
How will that change the way land transactions are carried out? What
will the impact be on surveying, real estate and conveyancing?

37. insurance disruption

38. on-demand, micro
& P2P insurance
In an effort to make insurance more
meaningful and affordable…
You can now get time based
insurance in the UK for your car
e.g. I want to insure my car from
9am to 12pm on Saturday

39. on-demand, micro
& P2P insurance
You can also now insure
individual items of value,
(known as micro-insurance),
through sites such as IAG’s
Insurance4That

40. on-demand, micro
& P2P insurance
Peer 2 Peer insurance is also growing
with German based Friendsurance
starting up in Australia soon
It’s based on the simple premise that
customers pay a premium into a
communal pool, and then get some
money back if the pool isn’t emptied
throughout the year by claims

41. on-demand, micro
& P2P insurance
For P2P insurance to work it needs
accurate, property level risk ratings
(as IAG’s done for a number of years)
using spatial data.
This is because each customer’s
contribution is based on their
individual, location based risk.
Highlighting the value of open
datasets such as G-NAF

42. UBI - telematics
Usage based Insurance: Telematics provide a combination of GPS
tracking & accelerometer data to determine whether you’re a safe driver
or not - so you can be priced accordingly. It also gamifies the experience
by allowing drivers to compare themselves against others as a motivator
to improve.

43. UBI - home sensors

44. UBI - home sensors
IoT sensors are already impacting the home insurance market - both
Liberty Mutual in the US and Allianz in Germany have partnerships with
Google Nest and Panasonic.
Install a home safety or security device, hook it up the internet and get a
discount on your insurance!

45. UBI - home sensors

46. UBI - home sensors
But this is where it gets interesting…
As smart doorbells, home security and weather sensors become
commonplace in Australian & NZ homes over the next 5-10 years…
We can foresee a future where there are 100,000’s of weather and
security sensors across each city!

47. UBI - home sensors
Imagine what impact that data will have on:
Insurers’ understanding of risk; and
Emergency responders & insurers’ ability to understand
what’s happening in a disaster;
As well as potentially improving weather forecasting itself

48. autonomous
vehicles

49. autonomous
vehicles
The big disrupter!
A 2015 KPMG report estimates that autonomous vehicles will reduce the size
of the personal motor insurance market by 60% within the next 25 years.
Given the personal motor insurance is the most profitable product line in
general insurance – the impact of this will be profound

50. autonomous
vehicles
The data that autonomous vehicles capture is big!
They capture and analyse up to 1Gb of LIDAR, radar,
imagery & high precision GPS data per second

51. autonomous
vehicles
Now, let’s jump to the future again - 15-20 years from now when there
will be 100,000’s of autonomous cars on the road capturing this data...
…if processing power and wireless internet speeds continue to grow
exponentially over this time – then we can imagine a future where entire
city streetscapes will be mapped in 3D, every day
What impact will that have on the insurance and geospatial industries?

52. drones
After the Wye River bushfires last Xmas, the area was cordoned off due
to asbestos contamination. With our assessors unable to get into the
area, we flew drone missions over the area to capture images of
damaged & destroyed homes.
This allowed us to help customers who had lost everything by giving
them some certainty about their future much sooner after the event.

53. surveying disruption

54. You can now use your smartphone to plan and execute an aerial survey

55. And automatically extract a 3D point cloud, 3D models
and ortho-rectified imagery from the survey

56. It can be done using a consumer grade drone.
Not only that, you can use consumer grade cameras for terrestrial
photogrammetry and using the same image processing tools, get ~10mm
accuracy

57. And that’s not using precise positioning, which in a few
years will be available in almost every device; when
autonomous vehicles start hitting Australian streets

58. a game changer?

59. http://spectrum.ieee.org/tech-talk/semiconductors/optoelectronics/mit-lidar-on-a-chip
Meanwhile MIT have developed a LIDAR sensor with
no moving parts that’s < 10mm wide and costs < $10.
How will this sensor revolutionise real-time positioning
and mapping as well as data capture?

60. the enablers

61. the enablers
smartphones
DevOps
infrastructure as code
open source
work practices & team culture

62. smartphones
In under 10 years, smartphones have become all pervasive

63. Pope Benedict’s appointment in 2005…

64. Pope Francis’ appointment in 2013…

65. With the smartphone came the realisation that people expect
to do business or be able to work on any device, at any time.
Smartphones, and subsequently tablets, fundamentally
changed the need for digital services and tools for both
consumers and employees

66. DevOps
DevOps is a approach that gives
developers full ownership of an
application or API from the first line
of code, through to testing,
deployment & maintenance

67. DevOps
Organisations such as Facebook, Uber & Google
use DevOps tools such as these to rapidly create
& update their apps and APIs at a speed and
frequency that wasn’t previously possible

68. infrastructure
as code
Complementary to DevOps is the ability to
script the repeated and rapid creation of
server resources, at any scale.
The foundation of this is cloud computing
using platforms like Amazon Web Services
and Docker

69. open source

70. open source
Open source allows you to deploy your apps and APIs cost effectively
It’s another key reason why startups and disrupters have low
operating costs
Zero licensing costs, regular updates, proven reliability & scalability,
established developer & user communities, tools that are designed for
DevOps & infrastructure as code – open source ticks many boxes

71. open source
It’s the combination of open source + code based infrastructure +
DevOps that allows Facebook to change 10 lines of code and then
redeploy their app globally on 10,000 servers, several times a day if
needed!
…and here’s a big threat - as more organisations move towards a
disruptive approach - this combination will slow the growth of the IT
industry as they become more self-sufficient
…and the geospatial industry will be impacted by this.

72. work practices
Automation
Collaboration
Iterative delivery
Cloud first

73. team culture
Empowerment
Experimentation
Diversity
Be an outlaw

74. your response

75. work practices
Point & click
If you want to create an innovation mindset for yourself - you’re not
going to keep using your tools by pointing and clicking at things over
and over again – especially not for repeatable tasks

76. work practices
You’re not going to keep working in a silo,
avoiding collaboration across your organisation

77. work practices
You’re not going to deliver big ticket projects that
take a long time to deliver nothing until the end

78. work practices
You’re not going to continue to run internal hardware that costs up to 10x
the same infrastructure in the cloud – even if you only have 2 servers

79. Automation
Collaboration
Iterative delivery
Cloud first
work practices

80. automation
DevOps
Infrastructure as code

81. collaboration
• Cross-functional teams
• Everyone a mentor & coach
• Peer review
• Share, share, share:
• Slack, Confluence, Yammer

82. iterative delivery

83. team culture
Empowerment
Experimentation
Diversity
Be an outlaw
To innovate and make your organisation resilient to change
- you will need to develop a team culture with these traits

84. empowerment
Everyone empowered to:
◦Deliver
◦Make decisions
◦Help develop teammates
◦Develop themselves

85. empowerment
Everyone contributes to:
◦Deliverables
◦Decision making
◦Development of teammates
◦Self-development

86. experimentation
Take risks and fail
Innovate through experimentation

87. diversity

88. be an outlaw
•Don’t ask for permission
•Be curious
•Ask the “so what?”
•Do it differently
•Challenge assumptions