The Innovative Insurer by the Digital Insurer Network · The Innovative Insurer by the Digital Insurer Network A write up of the 2016 face-to face meeting April 21st and 22nd ...
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The Innovative Insurer
by the Digital Insurer Network
A write up of the 2016 face-to face meeting
April 21st and 22nd
Paris Innovation Center
Copyright © 2016 Accenture All rights reserved. 2
In 2014 the Digital Insurer Network first met to
focus on the urgent need for insurers to transform
and digitize in order to compete with new market
entrants
In 2015 we looked at the adaptive insurer,
discussing the concept of human value in a digital
environment and considering how insurers can
keep up
Now, in 2016, we looked at the innovative insurer,
considering
• How insurers can get ahead of the competition
• How to play within a larger ecosystem
• How to manage and operationalize innovation
The Digital Insurer Network Journey
Copyright © 2016 Accenture All rights reserved. 3
Jocely AubryAON - France
jocelyn.aubry@aon.com
Richard BeavenSwinton – UK
rl_beaven@yahoo.co.uk
Michael Blix TryggHansa – Sweden
Michael.Blix@trygghansa.se
Valerie BompardSogecap – France
valerie.bompard@socgen.com
Christophe de CacquerayCovea – France
christophe.de-cacqueray@covea.fr
Frank CoolerIntrasurance – Netherlands
f.cooler@intrasurance.nl
Dr. Nils ReichAXA – Germany
nils.reich@axa.de
Øivind Skallerud Gjensidige – Norway
oivind.skallerud@gjensidige.no
Fred SlikkerIntrasurance – Netherlands
f.slikker@intrasurance.nl
Frank van WesselDelta Lloyd – Netherlands
frank_van_wessel@deltalloyd.nl
Juha ViljakainenOP Vakuutus – Finland
juha.viljakainen@op.fi
Lukas VogtSanitas – Switzerland
lukas.vogt@sanitas.com
Paul WishmanLV= - UK
paul.wishman@lv.com
Ian Gandy Esure – UK
Ian.Gandy@esure.com
Cyril HaiounBNP Paribas Cardif – France
cyril.haioun@bnpparibas.com
Alex KoslowskiRoyal London – UK
alex.koslowski@royallondon.com
Nisse Jakob KrenchelAlm.Brand – Denmark
abrnjk@almbrand.dk
Demetrio Migliorati Banca Mediolanum – Italy
demetrio.migliorati@mediolanum.it
Lee NoonLV= - UK
Lee.noon@lv.com
Anssi OkkonenIf P&C Insurance - Finland
Anssi.okkonen@if.fi
Attendees
Copyright © 2016 Accenture All rights reserved. 4
Speakers
Stuart BaldwinThe Positive Company – UK
stuart@thepositivecompany.com
Rachel BartonAccenture – UK
rachel.e.barton@accenture.com
Tara BrownAccenture – UK
tara.brown@accenture.com
Ana Maria GiménezSigFox – France
anamaria.gimenez@sigfox.com
Stephane GuinetKAMET– France
stephane.guinet@axa-direct.com
Dan HarrisFjord - UK
dan.harris@fjordnet.com
Laetitia JaySigFox – France
Laetitia.jay@sigfox.com
Jean-Marc LazardOpenDataSoft - UK
Jean-marc.lazard@opendatasoft.com
Peter SanyTM Forum - Switzerland
peter.sany@tmforum.ch
Calogero ScibettaEverledger - UK
calogero@everledger.io
Colin SlomanAccenture - UK
colin.sloman@accenture.com
Emmanuel Viale Accenture - France
emmanuel.viale@accenture.com
Copyright © 2016 Accenture All rights reserved. 5
Accenture Hosts / Facilitators
Piercarlo GeraGlobal Managing Director: Distribution & Marketing Services
Piercarlo.gera@accenture.com
Jean-Francois Gasc Managing Director: Strategy EALA
jean-francois.e.gasc@accenture.com
Roy Jubraj Managing Director: Digital & Innovation
kadesh.r.jubraj@accenture.com
Thomi Meyer Managing Director: Insurance EALA thomas.d.meyer@accenture.com
Edwin van der OuderaaManaging Director: Financial Services Digital EALA
edwin.vanderouderaa@accenture.com
Copyright © 2016 Accenture All rights reserved. 7
…began by exploring interesting technology demos and
introducing ourselves
We then reflected on the past year, looking at disruptive
customer trends and technologies
Dan Harris, Rachel Barton and Emmanuel Viale shared
their views on customer, technology and market trends
Case studies and start-up leaders Leanne Kemp, Scott
Walcheck and Laetitia Jay provided insight as to how
insurance will look by 2026
We looked at how Google, Santander and Apple play
across multiple ecosystems and POV about the
opportunities for insurance
At the end of the day Peter Sany introduced us to TM
Forum’s approach to ecosystems
The journey on day one…
Copyright © 2016 Accenture All rights reserved. 8
What will the implications be for
customer and employee strategy
when virtual reality is mass
market?
Enables remote attendees to sit
in a virtual meeting room together
Digital sales and service functions
to support face-to-face client
interactions
What will employees expect in
terms of the technologies they
can use at work in the future?
How can technology enable
workers to be more customer
centric?
Analytics transformed into art
creates amazing visuals
How can the visualisation of data
be used to drive new insights and
change behaviours?
We began by exploring technology demos and the
art of the possible
Virtual Reality Employee Enablement Data Visualisation
Copyright © 2016 Accenture All rights reserved. 9
BlockchainOffers the potential to revolutionise insurance with
distributed databases and smart contracts
3D Printer and ScannerCollects data on the shape, measurements and
appearance of a real-world object which can then
be printed as a 3D objectt
We began by exploring technology demos and the
art of the possible
How can Blockchain drive transparency and
honesty? What is the impact on data security?
Could Blockchain drive automation and faster
claims processing?
What does this mean for how products are insured?
Who is liable if 3D printing goes wrong? Which
insurance products could be impacted? How can
this technology impact claims documentation?
Copyright © 2016 Accenture All rights reserved. 10
“One could be the solution to the other”
Newspapers Crowd-sourcing
“A cat has more
than one life so fail
fast and you can
still go on.”
Pets
“Connected health
and home
insurance are
moving together as
everything
becomes more
connected”
Internet of
Things
Analytics Sportswear
“Opportunity to improve fitness data”
“We’re exploring
robo-advisor
opportunities right
now”
Robotics
We then introduced ourselves and started considering the impact
of key disruptors
Copyright © 2016 Accenture All rights reserved. 11
Key Trends Key Products
We then introduced ourselves and started considering the impact
of key disruptors
Crowd-sourcing
Internet
of Things Analytics
Robotics
Automation
Personalisation Gamification
Blockchain Platfom Economy
Sharing
Economy
Virtual Reality
Sportswear
Flood Protection
Books
Bicycles
Toothbrush
Delivery Services
Television
Car Insurance
Copyright © 2016 Accenture All rights reserved. 12
Since we last met…
How do you lead change… before you have to change?
In more detail, we delved into the key customer and technology
disruptions from the past 12 months
Copyright © 2016 Accenture All rights reserved. 13
Sure lets you purchase travel insurance
on your phone just as your flight is
about to take off
We considered some of the key facts
In January a new cellphone store
opened in Japan manned exclusively by
robots
2015 saw Nepal’s biggest earthquake in
81 years. Within 24 hours crowd-
sourced volunteers had made 3 million
edits to google map sand 7 million
people had checked in safe on
FacebookB2B customers are more and more
demanding: 76% have higher service
expectations & 73% are more price
sensitive than ever before. Yet only
14% of B2B insurers are considered
leaders in customer experience
Humana Cue sends you reminders in
line with your health stats
Most of us would like premiums set
according to driving patterns
Last year BLP law firm began recruiting
robots last year. They processed 100
days of legal work. in less than 2
seconds
Last year 300 hours of youtube video
were uploaded; 51,000 Apple apps
were downloaded; 1,041,666 Vine
videos were played; 4,166,667
facebook posts were liked EVERY
MINUTE
Amazon Pantry and Morrison’s
partnered in February to deliver fresh
and frozen groceries to Amazon Prime
customers in less than an hour
Last year TalkTalk’s data was breached
3 times in 2015 at a cost of £60million
and 100,000 customers
2/3 of drivers would love their car
insurer to let us know when our children
are driving dangerously… or to that “off
limits” location
87% of millennials have no contents
insurance
Last year the top 5 insurtech start-ups
achieved $2.5bn in funding (Zhongan –
931m; OscarHealth – 728m ; Zenefits –
584m ;Gusto – 136m;Clover – 135m)
Snapcash have now introduced money
transfers by photo…and soon we’ll be
booking Lyft taxis through Facebook
Chat
Oscar Health you up to local doctors
and sending out nurses when you need
them
Copyright © 2016 Accenture All rights reserved. 14
We were joined by a panel to reflect on the intersection between
customer, technology and market trends
Copyright © 2016 Accenture All rights reserved. 15
And we reflected on how these made us feel
“Could peer to peer be
a new business model
for us?”
“If customers don’t feel the
value add, it will be offered by
someone else”
“Who is really going to win the battle? the
small competitors are usually in it for the
exit strategy but the big non-traditional
competitors – now, that's scary”
“Now that data is readily-available, for how much
longer will customers need insurers to analyse risk?”
“There is an opportunity to
modernize but the large
insurance companies don’t
know how to do it”
“We’re going to see large
organisations joining up with
others to deliver new customer
propositions”
“The challenge is – how do you make it relevant to all customers?
Lots of sexy stuff but many of our customers are still terrified by
aggregators that have been around for 20 years”
“The first thing is
getting the
housekeeping up to
scratch…then we
can look at the
ideas that push the
boat out”
“A lot is happening and it is
difficult to know where to
place bets”
“Our value is being re-
questioned. For example if
car accidents are reduced
by automation, what is the
new proposition for car
insurance?”
“Expectations are liquid. Once you have
experienced something great once, you never
want to go back”
“The consumer isn’t interested in
tech… they are interested in
outcomes”
“Technology is speeding up but our industry is not keeping pace”
“New entrants
are my biggest
fear”
“Not just about pricing any
more. Could the answer be
replacing products with
services? Or is it something
else?”
“We might have the trust of customers but other
incumbents like Amazon already have trust too so
why would customers keep coming to us over them?”
“Customers especially trust financial
services with data but will the experience
be aligned with the trust…. Trust alone is
not enough!”
“Is technology making
insurance obsolete? We
need to ask who we are”
“Data strategies are still risky
for big firms – we can’t lose
the customers trust”
Copyright © 2016 Accenture All rights reserved. 17
There were a number of key takeaways
We need to determine what the solid monetisable propositions are in
order to ensure that innovation produces ROI
Partnerships, modulation and ecosystems are increasingly important
As we integrate technologies into our strategies, we need to ensure
that they are easy to use
Data privacy and the right to be forgotten are going to become bigger
challenges for organisations
Experience and service design needs to be understood by the people
who work with the customers every day
Employee experiences are as important as customer experiences
Technology, artificial intelligence and millennial expectations are making
liquid workforces a reality
When attracting millennials, there is likely to be a tipping point where
salary once again becomes as important as the experience
Copyright © 2016 Accenture All rights reserved. 18
Dan Harris, from Fjord Living Services, talked to us about
emerging customer trends
What are the most interesting trends from the past year?“Organisational design has been a very important factor in the
growth of businesses in recent years. Companies like Walmart have
really integrated design thinking into their ecosystems.
The two key trends that we see at the moment are “B2WE” and
“design from within”. We need to start thinking about how we can
use design as a common language that spans across vertices in our
organisations and how we can make our businesses more agile. As
employee expectations increase, we need to focus on how we can
make their experiences in the work space at least as digital as their
experiences at home and as customers.
Right now we are seeing the first 4G companies and they are
asking three big questions:
• How do you bring design into an organisation?
• How do you go about innovation and designing new products?
• How do you revolutionise the employee experience?”
Copyright © 2016 Accenture All rights reserved. 19
Rachel Barton, EALA Head of Advanced Customer
Strategy at Accenture, talked to us about market forces
How can Insurers gain advantage in a disruptive environment?“We have looked at a number of key trends already from digital to the changing customer
to the wider ecosystem play. The digital economy will soon be worth four trillion dollars and,
to reap the benefits, we need to understand how we will engage with customers of the
future. To do so, we need to be thinking about wider ecosystem trends.
In the current climate it is not easy to earn an additional dollar. To gain an advantage, we
need to be thinking about how we can collaborate and what partnership models we can
achieve. How do we pop up in other ecosystems in order to ensure that we are appearing
at just the right moment in the customer’s digital journey? How do we make our
propositions more interesting and differentiated?
Partnership strategy will be an important answer to these questions but many are nervous
about travelling into different ecosystems because of digital trust. It is important to think
about what data we are using to inform our customer service and who is using, selling and
monetising this data?
Another issue is deciding how to make the right investment. Most propositions fail and only
50% of those that break even deliver a non-negligible ROI. Therefore it is crucial to
understand the value levers that sit behind propositions. How do we determine what the
solid monetisable proposition is as we navigate through the landscape?”
Copyright © 2016 Accenture All rights reserved. 20
Emmanuel Viale, from Accenture Technology Labs,
talked to us about the latest technology trends
What technology poses the greatest threat to traditional insurance
business models?
There are a number of exciting technologies emerging. They key
challenge will lie in integrating these technologies in a “simple to
use” way, whilst taking into account what is best for the customer
and what the user experience will be. The two biggest trends in
insurance right now are Blockchain and data security.
Blockchain has already seen a lot of investment in the banking
sector and we are now seeing traction in insurance. How will you
make Blockchain simple to use and hide the fact that behind a
simple customer journey sits a complicated infrastructure?
Data Privacy will become a bigger concern. Any data exchanged
between partners will need to be encrypted and the right to be
forgotten is going to become a bigger issue for all technology.
We constantly need to consider how we use technologies;
whether we are using technology for a major disruption or a
minor innovation.
Copyright © 2016 Accenture All rights reserved. 21
How do you build an internal capability? Do you put
people in a war room? And how do you train
leadership to drive this agile organisation?
How would an organisation manage design from
within?
Do they need to outsource to a consultancy?
Dan Harris
Experience and service designs are built around the
customers so empathy regarding what customers value
and what motivates them is critical. This means that we
need to work alongside people who observe customers on
a daily basis; asking questions is not enough. The “why?”
for the customer needs to be answered internally. This
helps us to build into the service the thing that is missing
from the product: emotion. For example when someone is
applying for a mortgage, they don’t just care about the
money to buy a house, they will remember the emotions
they felt in the process. For us, success is when the
experience feels unexpected. With great design customers
are asking “why are you doing this for us? What’s the
trick?” Right now customers don’t expect services that wrap
around their lives, but one day they will, then there will
need to be a new way to delight them.
And we had some questions for the panel
Dan Harris
A year ago I would have struggled to think of 5 forward thinking
people in an organisation who would get this. Now I can find 50.
There has been a big change and we have seen a shift in our
people. Now they are asking “How can you get me to stay?”
and it is a question of retaining and utilising talent.
Rachel Barton
Recently I have been working with Lego who are a very
innovative company. They hire extremely creative people who
spend their time playing with toy guns (seriously!) The difficulty
however is knowing how to make sense of all their ideas. They
need to be grounded in something that you can make money
from and you need to make sure that the best ideas make it
through the pipeline and get actioned. So the question to make
innovation work is – how do you create an environment where
you can design and fail but that also has a structure as well?
You need to balance a certain unpredictability and diversity of
sources and resources but at the same time you can’t launch
500 new propositions every year. You need to launch
propositions in a very specific way based on customers and
their needs and you need to pick out the best bits.
Copyright © 2016 Accenture All rights reserved. 22
How do you create a liquid
workforce?
How do you attract talent?
Emmanuel Viale
60% of the workforce will likely be
contracted in 5 to 10 years and we
expect millennials to have twenty
careers. Technology is making it easier
to enable a liquid workforce, maybe
too easy. Artificial Intelligence is now
easier to work with as it becomes
more mature and there are other
options such as crowdsourcing.
Technology can also help to onboard
non-traditional talent whether this be
data scientists or connected cars.
However you need a clear strategy
backed by leadership to sit behind this.
And we had some questions for the panel
Rachel Barton
There is a high expectation of fluidity
but at the same time millennials will be
the first generation to be poorer than
their parents. There will need to be a
resetting at some point. Very high
expectations of life might seem to be
the key driver right now and money
might not be seen as a key driver but
there will be a tipping point where
money becomes important again.
Dan Harris
It is blended. We have partnerships
through the Accenture Colleagues.
The role as a designer is shifting to
creating a concept for the client to
work on in an organised partnership.
There is a design thinking concept and
a design doing. Fjord has its own go-
to-market approach.
The young generation is keen to
work in new structures with
flexible working hours, greater
collaboration, data sharing and
less hierarchy. How do you attract
young talent and accommodate
greater flexibility and
collaboration?
At Fjord are you working with
start-ups?
Copyright © 2016 Accenture All rights reserved. 23
Next, we launched ten years into the future…. To discover that
insurance as we know it today no longer exists…
Each of us was tasked with finding out what had happened…
Copyright © 2016 Accenture All rights reserved. 24
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: Internet of Things - Laetitia Jay, CMO & Ana Maria Gimenez,
Partnerships Director • Founded in 2009, Sigfox is a French company
that builds wireless networks using an ‘ultra-
narrow band’ signal that passes freely through
solid objects, to connect low-energy objects to
the ‘Internet of Things’, with the long-term goal
of "having petabytes of data produced by
billions of everyday objects
• Provides the opportunity for preventative
maintenance of assets – rather than waiting for
something to break down or go wrong before
making a claim
• Applies not only in the consumer market, but in
every business or industry
Insurance in 10 years will be usage
centric…
…And will blend into our lives
Key Takeaways
Key risks
• Will we need insurance at all in the future?
• Some risks may disappear – particularly
predictable risks - creating a need for
insurers to come up with new value
propositions
• We need to shift from being customer centric
to business centric
Key opportunities
• Ability to use data to provide pre-emptive
insurance / solutions
• Opportunity to provide customers with an
effortless experience
• Receive immediate, accurate information
about an accident
• Use of personal information to provide new
services
• Do we create pools of similar people with
similar risks?
Copyright © 2016 Accenture All rights reserved. 25
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: Blockchain - Leanne Kemp, CEO Key Takeaways
• Risk of disintermediation and the
potential for completely new insurance
models
• Can regulation keep pace with the
technology?
• Can technology keep the trust of
consumers?
• Opportunities in all high value / luxury
products e.g. wine, art diamonds
• Opportunities for back-end proficiencies
• Collaboration is required to share the
risk and potential for “Co-insurance”
• Everledger was founded in March 2015 and
funded through the Barclays TechStars
FinTech accelerator
• Everledger uses blockchain technology to
provide new methods of financing and
insuring diamonds using smart contracts
• Their vision is that blockchain can provide
the technology to eliminate fraud and
protect high value items (beyond diamonds)
by proving provenance rather than relying
on paper certificates or receipts
• There is an opportunity for entirely new
market places to open up – particularly
around wealth management and financing
of these assets - once provenance, proof of
ownership and certification have been
established
“We will see closely aligned partnerships
being forged between insurers, re-insurers,
commercial and retail banking - and that’s
the really exciting part of this technology
as it matures”
“When you start to bring smart contracts
and distributed ledgers into place it’s
absolutely clear any transaction is about
both finance and insurance”
Interconnected Financial Services
The two most important questions in any
business transaction are “How do I ensure
something is covered from risk and how do
I ensure I can buy it?
Copyright © 2016 Accenture All rights reserved. 26
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: Cloud & Mobile – Scott Walchek, CEO
“Things are enablers for experiences –
with Trov you are protecting your lifestyle”
Key Takeaways
Key Risks
• Potential of fraud
• Micro insurance pricing has new kinds of
risks linked with this policy – how do you
make decisions in seconds?
Key Opportunities
• Automation of the claims process
• A bridge to a new generation
• Consumers have a new type of
relationship with material things
• Prepaid risk mitigation is needed and
possible
• Trov is the cloud for your things, letting
you insure the things you want on
demand from your phone
• Trōv is both a data collection app and a
digital insurance platform all rolled into
one
• Launching this year, Trov will provide “on
demand protection for the things you
love, exactly when you want, just from
your phone”
• Allows you to link email receipts, snap
photos of items or receipts, add your
home with GPS, auto insure your car
using VIN as well as search a product
database to add items
“We find that the millennial generation
increasingly values control and
convenience over price”
Copyright © 2016 Accenture All rights reserved. 27
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: P2P & The Sharing Economy – Case StudiesKey Takeaways
Key Risks
• Could create exclusion
• Variety across the value chain
• Too early to know if it’s going to succeed
• Power to kill the existing model of
insurance
Key Opportunities
• Provides a balance between regulation
and capital which could drive innovation
• Risk responsibility is shifted to the
customer
• P2P model could complement the
traditional model to close the gap on
customer expectations
• Peer-to-peer (P2P) is a set of practices
and models that, through technology and
community, allow individuals and
companies to gather together to diversify
and mutualise common risks
• In a certain way, P2P insurance takes
insurance back to its roots
• P2P aims to eliminate traditional frictions
in insurance markets: Incomplete
markets, asymmetric information, moral
hazard, intermediation and processing
costs and a lack of transparency
• 2015 saw 16 P2P start ups launch –
more than in the previous 5 years
combined, the majority (14) in the US
and the UK
Bought by Many
“Together, our members are making
insurance companies listen”
Guevara
“Old insurance is rubbish, use Guevara”
Lemonade
”We’ve redesigned insurance from the
ground up to make it honest, instant and
delightful”
Copyright © 2016 Accenture All rights reserved. 28
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: P2P & The Sharing Economy – Case Studies
Copyright © 2016 Accenture All rights reserved. 29
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: P2P & The Sharing Economy – Case Studies
Copyright © 2016 Accenture All rights reserved. 30
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: P2P & The Sharing Economy – Case Studies
Copyright © 2016 Accenture All rights reserved. 31
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: P2P & The Sharing Economy – Case Studies
Copyright © 2016 Accenture All rights reserved. 32
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: P2P & The Sharing Economy – Case Studies
Copyright © 2016 Accenture All rights reserved. 33
We broke into groups to understand the future of the insurance
industry from the viewpoint of insurtech start-up leaders
Topic: P2P & The Sharing Economy – Case Studies
You had your own examples
Copyright © 2016 Accenture All rights reserved. 34
Having watched the video, we
realised that there is a “Long road
ahead”….”but [that]we don't have to
take the journey alone”
We were reminded to forget about
regulation: “Some of the great things
that companies like Uber achieve is
because they don’t care about
regulation; they’re just thinking about
the customer. They are doing it and
asking for forgiveness later… So I
want you to forget all about
regulation”
Next, we explored the possibilities offered by entering new
ecosystems
Copyright © 2016 Accenture All rights reserved. 35
And we considered some key facts
Apple don’t just make computers & iPods,
they exist to let their customers challenge the
status quo
40% of financial services innovations have
been launched by non-banking start-ups
Tesla has done away with patents in a bid to
accelerate the advent of sustainable
transport
64% of insurers plan to engage new partners
in the insurance industry 43% plan to engage
with partners, or aquire start-ups outside the
insurance industry
By 2020…
• The world will be filled with 1 trillion
connected sensors
• 80million US jobs will have been replaced
by artificially intelligent machines
• Global Internet traffic will be 64 times
larger than in 2005
67% of insurance customers would consider
purchasing insurance products from non-
insurance providers
Lego has an ‘open innovation’ platform which
invites users to design and upload product
ideas with the possibility of the designs being
made into reality
Amazon were never just a bookseller, they
exist to make the customer’s life easier. 35%
of Amazon’s revenue is generated by its
personalised customer recommendation
engine
Copyright © 2016 Accenture All rights reserved. 36
And considered examples of leading
ecosystem players
Copyright © 2016 Accenture All rights reserved. 37
And considered examples of leading
ecosystem players
Apple Pay contactless payments – partnerships
with retailers and over 140 financial institutions
• Why? Provides an effortless payment transaction for
the customer
• Benefits: For retailers – access to customer data and
a quick and convenient method of payment for
customers – apps integrated into Apple pay have seen
checkout rates double.
• Wider ecosystem impact: Payments and messaging
are merging – Facebook are trialling payments
through its messenger app, Google are trialling
attaching payments through Gmail
Apple Music Launched in 2015 –
after acquisition of Beats Electronic & Music
• Why? – “Empowers artists and music lovers to create
curated experiences that forge seamless relationships
between people and the music they love”
• The overall intent of Apple Music is to grow, nurture
and sustain careers, while more specifically shaping
one shared conversation around music.
• Benefits: $9.99 a month – acquired 10 million users in
the first month, already half the market share of
market leader Spotify (which took 6 years to reach
10m)
• Wider ecosystem impact: A response to other
streaming services e.g. Spotify
Partnership with Hermez to reinvent the
iWatch as a fashion accessory
• Why? There was a sense that technology was
going to move onto the body,” says Alan Dye,
who runs Apple’s human interface group. With
the ultimate goal being to ‘free people from their
phones’.
• Benefits: luxury watch industry generates more
than $20 billion a year in revenue
• Apple received almost 1 million Apple Watch
pre-orders in the US during the initial 6 hours of
the pre-order period on April 10, 2015
• The Apple watch is the market leader in
smartwatches, with 66% market share
• Wider ecosystem impact: Other players follow
suit; Samsung, Pebble, AndroidWear creating
their own versions of smartwatches
Copyright © 2016 Accenture All rights reserved. 38
And considered examples of leading
ecosystem players
Apple Care is Apple’s tech support division. The service and support product is Apple Care Protection Plan
• Why? To provide ongoing support for software and hardware issues
• Benefits: Customers purchase Protection Plans to extend the 1 year coverage and 90 day tech support that comes as standard for any new Apple
product. In Q1 of 2015 Apple Care revenue increased by 26%.
• Wider ecosystem impact: Third party warranty providers try to compete but struggle to offer the premium services and understanding of the Apple
operating systems. Because Apple makes the hardware, the operating system, and many applications, Apple products are truly integrated systems.
Only AppleCare products give you one-stop service and support from Apple experts, so most issues can be resolved in a single call.
Connect to Apple OS while driving
• Why? Apple have partnerships with many car
manufacturers including Volvo, Ferarri, Mercedes Benz
and General Motors to enable users to connect an
iPhone while driving and get directions, make calls,
send and receive messages and listen to music using
voice and the built in display
• Benefits: Independent dealers report that the feature
draws in customers and helps to close the deal in selling
new cars.
• Wider ecosystem impact: Tim Cook, CEO, explained,
"It is a part of the ecosystem. And so just like the App
Store is a key part of the ecosystem, and iTunes and all
of our content is key, and the services we provide from
messaging to Siri and so forth, having something in the
automobile is very important. It's something that people
want. And I think that Apple can do this in a unique way,
and better than anyone else.”
Open development platform to harness the power
of the crowd of developers
• Why? – to provide a greater range of software and
services to the customer, ‘ecosystem of services’ is a
barrier to switching for customers
• Benefits: The App Store has more than 1.5 million
apps and more than 100 billion copies of apps have been
downloaded
• Wider ecosystem impact: Android have 82% market
share but lower end of the market
Launched in 2011, iCloud gives users the option
to upgrade their storage levels to premium packages.
• In 2016 Apple made a deal with Google to use the Google Cloud Platform for some
iCloud services.
• Why? Provides a platform for users to backup their photos, contacts, documents –
adding to the ecosystem and becoming a more integral part of the customers life
• Benefits: As of February 2016 iCloud had 782 million users
Copyright © 2016 Accenture All rights reserved. 39
And considered examples of leading
ecosystem players
Copyright © 2016 Accenture All rights reserved. 40
And considered examples of leading
ecosystem players
Youtube: Acquired in 2006 for $1.65bn
• Why? – To “Complement Google’s mission to organise the world’s information”. New
revenue stream, huge potential for YouTube to grow and be extremely profitable for
Google.
• Benefits: Google expand product offering and make billions of dollars in advertising
revenue and Youtube got the funding, technology and expertise to
dominate the video sharing market
Android: In July 2005, Google acquired Android
Inc. for at least $50 million.
• Why? – To enter the mobile phone market
• Effect on wider ecosystem: Strong market position
for the phones and the operating systems Android
phones now make up 84% of the mobile market.
60.99% of the market share of mobile operating
systems.
Google Maps: First developed in 2005, Google Maps
has become an integral ecosystem within the wider
Google world.
• Why? - Google brand becomes more integrated in
consumers everyday lives. Provides a free useful
service that benefits customers and therefore drives
loyalty. Also uses smart partnerships – Uber and Zagat
are just two strategic partnerships, all designed to keep
the user within Google’s ecosystem.
• Benefits - For Google - You can search for a restaurant,
read reviews, book a table, find the route and hail and
Uber all in the application meaning the user never has to
leave Google. For partners – access to a platform used
by over a billion people
• Effect on wider ecosystem - Apple created its own
maps product as a response, and pre-loaded it to
iPhones and iPads
Driverless Cars - part of Google’s X programme –
started in 2009
• Why? - Potential revenue stream for Google in the
future
• Effect on wider ecosystem - Industry still in infancy
stages as driverless cars aren’t on the market yet but
already many other companies are investing in R&D
technology, including Bosch, Tesla and Uber, who
partnered with Carnegie Mellon University to launch a
research centre to develop driverless car technology
and expects to launch a driverless fleet by 2030.
Copyright © 2016 Accenture All rights reserved. 41
And considered examples of leading
ecosystem players
Google Flights: Google Flights is an online flight
booking service which facilitates the purchase of
airline tickets through third party suppliers.
• Why? – Expand Google brand and become more
integrated in consumers everyday lives. Provides a free
useful service that benefits customers and therefore can
start to build a connection with the brand
• Benefits - For the user it has additional features that
other competitors don’t, enhanced filtering options and
gamified aspects such as the “I’m feeling lucky” button
which allows spontaneous travellers to find a cheap
destination to fly to. For Google it directs more traffic
through their website.
• Effect on wider ecosystem - There was no immediate
change in the price of stocks for Priceline, Expedia, or
Travelzoo in response to the opening of Google Flights
Nexus: Mobile phones and tablets launched as flagship Android products, including those made with Motorola, LG and HTC
• Why? – They want to provide users with the ‘total user experience’ – they make the phone, create the software, sell it through their outlets and users use Google
Accounts to maintain their information, providing Google with more customer data.
• Effect on Wider Ecosystem - Created partnership opportunities within the industry, the Nexus line of products have been created in partnership with LG,
Motorola, HTC and Huawei. Can undercut competitors products such as $399 Moto X Pure with the $379 Nexus 5X, which has the added benefit of a fingerprint
sensor and matches the Moto X with a highly rated camera capable of 4K video
• Benefits - Google can show off capabilities of Android operating system, new revenue streams and access to more customer data through customers using
google accounts to store their information
Google Express offers same day or overnight
delivery from a numver of popular stores
• Why? – Google said a major goal of the initiative is
to add more utility to product search advertisements
on Google.com. On Amazon, you search for a product
and can buy it immediately. On Google, that hasn’t
been the case hence the launch of Google Express
• Benefits - The consumer benefits from the
convenience of shopping local stores all in one place
and Google improves its product search capabilities,
directs more traffic to its website and begins to take on
huge market players like amazon.
• Effect on Wider Ecosystem - Don’t have their own
warehouses like main competitor Amazon so they are
positioning themselves more as an ally, they collect
the items from local stores and make the deliveries. It
is $95 a year for membership which is slightly
undercutting amazon.
Copyright © 2016 Accenture All rights reserved. 42
And considered examples of leading
ecosystem players
Launched in 2009, GV is Google’s
venture-capital arm providing funding to
technology companies. They have
invested in over 300 companies, from
Uber to 23andMe to #slack
• Why? – Financial gain, they get a return from
the companies that they invest in, which brings
additional revenue streams.
• Benefits - For the start-ups and other
companies (in addition to the funding), they get
access to the ‘world’s best technology and
talent’ at Google. As of 2015, GV had $1.5bn in
assets and has expanded out of the USA to
Europe.
NEST: Purchased NEST for
$3.2bn in 2014 to provide
connected home devices to
customers
• Why? - To feed in to the
growing IoT movement and
position Google as a provider
of these services. Also, to get
more data on consumers and
the way they live their lives
• Benefits - For Google:
Building on an established
company and position Google
as the ‘master of the home’,
For Nest: Access to Google’s
scale and expertise to grow
their product
Google Fibre: High speed internet in a number of US cities, a solo venture
• Why? - As a test-bed for other Google services, and as an additional revenue stream
• Benefits - For Google it s a testbed for new products and with 29,000 subscribers it
has generated $12.8m revenue,
• Effect on wider ecosystem - Genuine threat to media as offer really fast and
comprehensive service to customers. Response from other broadband providers –
AT&T Gigapower rollout (cheaper cost, more speed) and C-Spire created a similar
ecosystem in Mississippi
Android Pay lets you pay in-store or in an app via your cards
stored on your account. Achieved through partnerships with
retailers (such as Lego, Nike and McDonalds), you can now
use it in over a million stores in the USA.
Why? - Direct competitor to Apple Pay
• Effect on wider ecosystem - Offers another channel for payment
and provides similar service as Apple Pay on Android phones (which
make up over 80% of the market)- Apply Pay no longer have the
monopoly.
• Benefits - For users, it is an easy way to pay for goods
or apps, for retailers it offers another way for customers
to pay, for Google it provides more data and also keeps
up competition with Apple and for banks it gives their
clients easy access to their accounts
Crisis Response: Crisis Response provides an open
platform for people to use in times of need or crises (e.g.
Japan tsunami)
• Why? - To help people in times of need, good CSR PR
• Effect on wider ecosystem - Leads more people to donation
pages so helps increase funding for crisis charities.
• Benefits - No revenue stream for Google but good PR,
consumers benefit from increased access to information and
charities receive more donations and awareness
Copyright © 2016 Accenture All rights reserved. 43
And considered examples of leading
ecosystem players
Copyright © 2016 Accenture All rights reserved. 44
London based innovation lab that collaborates
and partnership with start-up companies in Fin-
Tech; investing £100 million since 2014
• Why? To help drive innovation in the financial service
market. The fund is part of the Santander Group’s
broader innovation agenda, in which we help FinTech
companies grow from a very early stage (i.e. seed) to
a more mature stage.
• Benefits: Investing and forging partnerships with
competitors/start-ups that may ultimately create
something innovative in terms of customer experience
or operations. Santander bring the capabilities of the
Eurozone’s largest bank by market capitalisation
while start-ups bring agility, innovation and a fresh
perspective.
• Wider ecosystem impact: Santander Innoventures
portfolio includes payments specialist iZettle; mobile
payment provider MyCheck; and Cyanogen, an
android operating system experts.
Referral arrangement which will see Santander
proactively refer small business customers
looking for a loan to Funding Circle, where they
are better placed to help
• Why? Rather than leave customers who do not
qualify for a loan with Santander to work it out
themselves, Santander actively refer these people to
Funding Circle for financial help, extending the
ecosystem beyond just a product provider
• Benefits: Builds customer relationships and trust and
positions Santander as an advice provider rather than
just a source of finance
• Wider ecosystem impact: H&R Block and Sage
announced a similar partnership with Funding Circle
in 2015
And considered examples of leading
ecosystem players
Copyright © 2016 Accenture All rights reserved. 45
Partnership with TFL to provide access to
bicycles across London (replaced Barclays as the
sponsor)
• Why? To increase brand awareness. “More local
sponsorships show how we help people on a day to
day business and that it’s not just about money but
about helping people get on in life.” Keith Moor, CMO,
Santander. Santander has cycle champions across its
London branches who offer help to customers and
advice on how to use the scheme. They were also out
on the streets during the Tube strike giving people
maps of the docking stations.
• Benefits: Speaking to Marketing Week, CMO Keith
Moor said the brand has seen an uptick in brand
scores, particularly among those that use the
Santander Cycles scheme in London. Figures that
show 67% associate Santander with the scheme.
• Winder ecosystem impact: The deal with Transport
for London is part of a wider sponsorship strategy at
Santander that has seen the brand use its Formula
One tie-up to drive brand awareness globally and
then more local deals to help consumers “get under
the skin of the brand”
Santander have created an international network
of partner universities
• Why? Santander been working with Universities
since 2007 and are now partnered with 77
universities across the UK and with over 1,200
universities partners in 20 countries across the world;
offering tailor-made funding packages and initiatives
• Benefits: Increase brand awareness and customer
loyalty, specifically with students who are a potentially
high value future customer
And considered examples of leading
ecosystem players
Copyright © 2016 Accenture All rights reserved. 46
Inspired by other industries, we broke into groups to consider
what a new ecosystem for an insurer could look like
Copyright © 2016 Accenture All rights reserved. 47
Connected
water meters
Connected
CarConnected Health
“Help when
things go
wrong”
“Peace of mind as
a service”
“Risk assessment as
a service”
“Providing
everything you
need to stay
healthy”
“A concierge /
advisor”
And shared…
Connected
Home
Copyright © 2016 Accenture All rights reserved. 48
Embedded
insurance
Carpooling
“Multi-modal
mobility
insurance”
“Mobility
service”Pay as
you drive
“Carpools for
catastrophes”
Self driving
cars
Platinum
SLA’s
… our ideas
Copyright © 2016 Accenture All rights reserved. 49
About TM Forum• TM Forum was created by its members for its members
to connect via an ecosystem platform
• It launched 28 years ago with just ten telco companies. It
has now expanded to include players from multiple
industries including Google and Alibaba
• TM forum helps organisations to engage with relevant
players through APIs, contracts, partnerships and
standards supported within the platform
• Everyone in the TM Forum gets access to and learns
from all the projects that the network members work on
together
Key Takeaways
Peter Sany, introduced us to TM Forum’s ecosystem platform over
a fireside discussion
TM Forum Case Studies
“The future for insurance will be a form of collaboration
involving partners from lots of different areas”
“You can’t solve everything yourself. Take the
autonomous car for example – the car manufacturer
needs to connect with the city infrastructure, the
pedestrian infrastructure and the communication
provider – all connected by a digital backbone!”
“Forget about the regulators – Uber might have had to
withdraw from 4 or 5 cities, perhaps - but how many
markets are they still in? Hundreds!”
Copyright © 2016 Accenture All rights reserved. 50
The forum has 20 executive-level
members at present , each committing 2-
3 hours per month, and is managed by
TM Forum.
Members have access to: • Knowledge from the top global insurers
• Long-lasting Insurance thought leadership
• Partners from the wider insurance ecosystems
• Digital transformation and platform technology expertise
• Academia
Members have the opportunity to:• Build peer-to-peer relationships with counterparts around the world
• Guide the research agenda for the Smart Insurance Think Tank
• Drive innovation through Catalyst proof-of-concept projects
• Enhance their company’s digital value proposition to customers,
partners, shareholders, etc
• Drive best practice creation (e.g. maturity models, open data
platform, crowdsourcing and linking data, data analytics)
• Position their company as a world leader through all TM Forum
channels
• Be invited as a keynote speaker for TM Forum events
We considered the potential for insurers to partner with the Smart
Insurance Forum which is currently being built
Smart
Insurance
Leaders1
Digital
Ecosystem
Players2
Consultancies
and
Suppliers3
2x Co-Chair
Smart
Insurance
Think Tank
Group1 Rotating Chair
Copyright © 2016 Accenture All rights reserved. 52
The journey on day two…
… began with a recap of day one and inspiration for
innovating like a start-up
Tara Brown, Stuart Baldwin and Stephane Guinet then came
together to talk to us about preparing for and managing
disruption, implementing ideas and building an innovative
workforce
Next we questioned the insurance orthodoxies that are
holding us back
We then thought about the skills, supply chain, technologies
and employee experience that will be critical for our
workforce in the future with Colin Sloman
Finally we wrapped up and considered our key takeaways
from the previous two days
Copyright © 2016 Accenture All rights reserved. 53
We started by watching a video to remind us of what we had
learnt on day one
Copyright © 2016 Accenture All rights reserved. 54
Then we kicked off day two by thinking like a start-up
Copyright © 2016 Accenture All rights reserved. 55
We considered how we can make our organisations more
innovative with a panel of experts
Copyright © 2016 Accenture All rights reserved. 56
There were a number of key takeaways
Innovation does not stop with ideation: It also involves implementation and
dissemination
Leadership needs to make it clear that innovation is important and funding won't be
cut
Leaders need to not only manage tasks but also focus on making a difference to
culture in order to get the best out of their employees. Ten years from now we want
the way that we lead people to stimulate creativity
Culture-change needs to be driven by leaders and innovators need to work within
the organisational aims and needs in order to achieve buy-in
Employees need to be empowered to treat every decision as if it were there own
business
Everyone needs to be trained to question regulation
It is important to consider which elements of innovation are achieved internally and
which are better achieved through partnerships and platforms
You can’t afford not to take risks!
Copyright © 2016 Accenture All rights reserved. 57
“There are 3 steps to innovation -
ideation, implementation and integration. Two years
ago, I was working in the London Innovation Centre
when I realised that we were great at ideation but
missing the implementation stage.
I wanted us to go from generating ideas to making
them tangible so I launched the Innovation
Programme which now has 20-30 people working in
sprint teams to create client-ready prototypes in just
six weeks”
Tara Brown, founder of the Innovation Program, talked to us about
turning ideation into implementation
Copyright © 2016 Accenture All rights reserved. 58
“My aim is to help companies to live
big and make employees love their work. We need
to be as good at innovating people as we are at
innovating products. The direct line manager is the
key to better, happier employees and more
successful, innovative companies. Leaders need
not to only manage tasks but to set us up to grow.
I am driven by how kids think. They have an
openness and confidence that will be hard to keep
hold of in the future. “
Stuart Baldwin, from The Positive Company, considered how to
unleash a happier, more engaged workforce
Copyright © 2016 Accenture All rights reserved. 59
“AXA realised that our business will not
survive if we do not change dramatically so we
created two labs in San Francisco and Shanghai to
connect with interesting start-ups from outside our
organisation.
We need a new way to approach the future and
need to be less risk averse - failure is part of the
innovation process and should be celebrated. In a
large organisation it is too easy to say “No” – we
need a different mind-set.
I lead Kamet – a £100m incubator which initially is
100% funded by AXA. This has the remit and
decision-making autonomy to develop and create
real, tangible propositions which have the potential
to cannibalise and break the traditional business
model at AXA”
Stephane Guinet, CEO of Kamet, talked to us about preparing for
and managing disruption
Copyright © 2016 Accenture All rights reserved. 60
And we had plenty of questions for the panel
HOW DO WE CHANGE MIND-SETS?
REGULATION
FUNDING
WHERE DO WE START?
GENERATING BUY-IN
BUSINESS MODELS
Copyright © 2016 Accenture All rights reserved. 61
A Question of Getting Started
How did you get started and how do you fund your
innovation programs?
Tara Brown
The Innovation Programme is funded by R&D tax credits
for Accenture across all industries. We began by
determining what we would define success as and what the
criteria was for funding. We then trained the team,
generated ideas and created a funnel. We later built the
team out further.
For each project, we undergo two sprints of two weeks to
build out a design. We are flexible about where the project
takes us.
Once we have created something for one industry, we can
think about how we can apply it to other industries too.
We’re constantly looking for new experiences and skills, for
example considering what the new exciting technologies
are or how we can run hackathons.
How do you get CEOs and leaders to embrace
innovation when they are focused on delivering
what their shareholders ask them to do,
rationalising profits and cutting costs?
Tara Brown
You need buy in from leadership and the people who will
eventually be using whatever you create. Innovations are
difficult to diffuse in a company if there is no need for them
in the first place so you need to give leaders and users a
say in what it is and how it is used from the beginning… It
also makes sense to tell your innovation team what leaders
want to do and to let them come up with ideas that help
them to achieve it.
We make sure that we are coming up with something very
tangible, taking into account challenges, effectiveness and
cost-effectiveness. There is also no point bringing in jazzy
new things for the sake of it - you need to be fixing an
existing pain.
Stephane Guinet
Innovation needs to come from the top if you want your
company as a whole to embrace it. It needs to be ingrained
in top management and to then be diffused down to
strategy, HR, Business Development etc.
Copyright © 2016 Accenture All rights reserved. 62
A Question of People
How do we make our people more innovative?
Tara BrownWhen everyone has their day jobs it's hard to say “now be more
innovative” without having a structure. This is why we split our
program out as a mini rotation (a mini sabbatical within your normal
role)… We have also learnt that innovation works so much better
when you bring different people with different knowledge together
Stuart BaldwinHere today we have brilliant thinkers and thought leaders around
technology, process and ideas. We need the same thing around
people. Ten years from now we want the way people are led to
stimulate creativity. How do we do this? Every manager in a company
needs to think about how they'll alter behaviour each day rather than
just thinking about all the tasks they need to get done.
There are six core skills that leaders need to draw out in people in
order to drive performance: Optimism, Purpose, Focus, Questions,
Impact and Creativity. We need to make an impact with our
behaviours, change the stories that employees tell themselves about
the past, drive our people with a real sense of purpose and
encourage them to “give it a go”.
How do you build a more innovative culture within
your organisation in a world full of Gantt charts?
Roy JubrajIn Accenture we have a deep culture to drive out activity and
engagement. We gave people tools like Yammer (and internal
collaboration software) to get juices flowing and to drive collaboration.
We then allowed these to grow organically and we let our employees
drive the agenda.
Stuart BaldwinHumans are driven by two desires: pleasure and pain avoidance.
93% of what we are doing is looking for things that will kill us and
therefore 93% of what we think about is irrelevant. That’s the sticking
point but we can coach people’s stories and psychology to change
the way they feel.
Stephane GuinetWe need employees to be empowered to treat every decision as if it
were their own company. I’m not a boss; I’m a coach and peer. My
people can call me whenever they want my opinion but if I have put
them in a position then I want them to make the decisions … At AXA
employees can partner to come up with new ideas. The best ideas
are voted for. The problem is then execution. We need to empower
and help navigate people to execute these ideas.
Copyright © 2016 Accenture All rights reserved. 63
A Question of Business Models
What have you learnt about innovative business
models?
Stephane Guinet
We can never modernise fast enough but, even if we could,
this is not enough. If we really want to drive customer value
we need to work with other people. The models of the
future need to be more transparent, more collaborative and
aligned with the interests of the customer.
When you are a large organisation you need certain
processes in place and this is not compatible if you want to
create real innovation. Sometimes a separate start-up is
the answer because when we are dealing with a large
organisation, often you need to build something that is
sufficiently mature before the large organisation will
recognise it and react to it. Then the large organisation can
integrate this into the core and build on it.
How do we get organisations to invest appropriately
in R&D?
Roy Jubraj
We shouldn’t just be looking at discretionary funding in a
separate pocket. Funding should be critical to the core of
the business. When things get tough, funding tends to be
cut around innovation. Leadership needs to make it clear
that innovation is important and funding won't be
cut. Quarterly metrics around innovation need to be put in
place.
Tara Brown
The more we change people’s culture and mind-set, and
the more you create in this space, the easier it will get and
the better firms will be at challenging these things.
Copyright © 2016 Accenture All rights reserved. 64
A Question of Regulation
Regulation is a whole new areas of pain and fear
for my company. How do we balance start-up
culture against risk culture?
Roy Jubraj
It’s all about interpretation. Risk Committees often interpret regulation as
being worse than it actually is. This creates a culture where you can’t try
anything new. You need a culture of education to get people challenging
the status quo and asking why. If you are doing something that is not
benefiting customers and is not the right approach people need to be
asking “why are we doing this?”
Stephane Guinet
There is a culture element here. The risk committee is paid to say no. They
need to be incentivized not to say no but to help the business go forwards.
The question should be “if this were your own money would you spend it?”
Stuart Jubraj
The Romans were very fond of stoicism. They would look at all the risks
and problems and neutralise them by imaging the very worst that could
happen and being comfortable with it. Then they would ask “What's the
best that could happen? And how do we make this happen?”
Tara Brown
Our most important relationship is with the compliance and risk teams. We
need to understand what is the worst that can happen and how do we
avoid that.
How can we be innovative when everyone is
concerned about their personal accountabilities? The
beauty of start-ups is that they have a different
mentality and are less concerned about what might
happen…
Roy Jubraj
A start-up still has huge risks. They are playing with someone else’s
money and need to legitimise everything that they do.
Stuart Baldwin
We have to think about the risk in not taking risks. This reminds me of
the well known joke where someone says “What is the point in
training my people if they'll just get good and leave?” The real risk is,
“what if I don’t train my people, they’re bad at their job and they stay”.
The same could be applied to innovation. “What’s the point of
innovative ideas if they’ll just be taken?” I have friends who work for
What If Innovation. Their philosophy after ten years experience is that
actually you just need to try something - “Just do it!”
Tara Brown
Richard Branson said “Train them well enough that they want to go,
but treat them well enough that they choose to stay”.
Copyright © 2016 Accenture All rights reserved. 65
And we had some comments to share
“Have we used tax credits for innovation?
Yes, but in the wrong way! They sit in
finance but we need to think about how we
drag them out of finance and use them to
fund innovation differently”
“Sometimes bad ideas come
up and people say “ah, this is
innovation!” – we need to
filter these ides”
“Is insurance a freestanding
natural product by itself… Or
should it be embedded in
something else?”
“We had nothing going live and
we were losing momentum so we
changed the structure completely.
We used the crowd to identify the
best way to do the execution”
”The culture needs to come from the top so that the company
as a whole can embrace it. It needs to be ingrained in top
management. In our company the chairman doesn’t even
have a smartphone. He doesn’t even use a PC on a daily
basis. When you email him his EA prints out the email”
“The way we do innovation right now is too
incremental and not disruptive enough. We tried
to fast-track ideas but that wasn’t enough. We
need to work out an investment strategy and we
want to take ideas through to implementation. We
have run a Dragon’s Den competition and started
providing start-up kits”
Copyright © 2016 Accenture All rights reserved. 66
Next, we thought about how orthodoxies can act as barriers to
innovation
Copyright © 2016 Accenture All rights reserved. 67
Regulators
won’t let us
changeTechnology
is expensive
Insurance
is sold not
bought
Actuaries are
needed (and
they can’t party)
Most people
want to buy
insurance
annually
We can’t do it
because the
intermediaries
don’t like it
Our people
don’t have
the skills
We are a
customer
business
Insurance will
get disrupted
by someone
else/ we are on
the defence
People
Need
Insurance
We know
better than
the
customer
The most
important thing
is to guarantee
performance
for the next
month
We are an
industry of
followers who
don’t believe in
first-mover
advantage
Legacy
systems stop
us from
innovating
If I’ve tried it
and it didn’t
work, it won’t
work again
Insurance
needs to be
assessed on
the past
Bigger is
better
Middle-aged
straight white
blokes run
insurance best
We will not
get disrupted
because we
are regulated
Claimants
want to
defraud the
company
We don’t
trust our
customers
Only we can
do insurance
because it is
complicated
Innovation &
disruption
only comes
from start-
ups
One day the
UK
automotive
market will
make money
Digitalisation is
the problem of
the Chief
Information
Officer (not the
Chief Investment
Officer)
We can’t
be loved
The only way
to get things
done is a multi-
year multi-
million-dollar
projectResults of
the past
can predict
the future
And we thought about the orthodoxies that are holding us back
Copyright © 2016 Accenture All rights reserved. 68
Colin Sloman then introduced us to how the workforce might look
in the future
Copyright © 2016 Accenture All rights reserved. 69
How do we create a digital workforce when only 2% of graduates
want to work in insurance?
Copyright © 2016 Accenture All rights reserved. 70
We considered some key ideas
Top Coder splits
projects into bite
sized pieces that
are offered to its
worldwide
community of
developers
Spotify divides its staff
into constantly
changing “squads” –
each one run like a
business in its own
right. Autonomy is
given at every level to
avoid decision-making
bottlenecks
Beyond verbal is a
software that can
detect 400 variations
in human moods. This
can be integrated into
call centres to help
staff understand and
react to human
emotions
Audi uses analytics
to turn customer
response to product
features into real-
time alterations to
products
GE uses sensor-
based analytics to
report on its
machinery in real-
time and develop
predictive
maintenance
algorithms
35% of jobs are at
risk of automation
over the next 20
years
Microsoft is
using
gamification to
identify more
bugs during
testingRio Tinto has a
workerless mine in
Australia –
autonomous trucks,
excavators and drills
are controlled by
remote operators,
hundreds of
kilometres away
3,200,000
workers in
Japan are
robots
EE use coding
schools t improve
the digital literacy
of their
employees
1/3 of the US
workforce are
currently
freelancers and
over 40% will be
freelancers by
2020
Uber has 160,000
contractors but
just 2000
employees – a
ratio of 80:1
Lego
crowdsources new
product ideas that
over users can
vote on – the
creator receives
1% of royalties
The CEO of
Salesforce often
participates in
conversation threads
to keep up to date on
the thinking of his
workforce and to
establish a presence
amongst staff
70% of CEOs believe
their presence on
social media has a
positive impact on
business results but
75% have no
engagement plan or
strategy
7-Eleven places
ordering decisions
directly in the
hands of 200, 000
sales people
Copyright © 2016 Accenture All rights reserved. 71
“There is so much change
with the ratio of contractors
to workers at 80:1”
“We need transparency,
knowledge sharing and
total collaboration”
“We need to forget hierarchies and
structures. You have your go to guys -
That's what a social network view of the
organisation looks like”
“How do we personalise
the experience for multiple
generations all working
together?”
“The future of HR will be to be
absent and let managers create
a personalised experience”
“We really need to think about where we
automate, where we use AI and where we
use people to create the greatest value”
“How could we use facial recognition
to understand the impact of our
leaders on employees?”
“How can we use insights and
analytics to build a 360 degree
view of the employee?”
“Work should not just be a place
you earn money, it should be
something you do for yourself”
“HR needs to become more like
marketing, understanding segments,
offers, products and how to engage
particular employees”
“We need to filter data
into information to make
it accessible”
“Need to lose the attitude of
I am what I know and I lose
my power if I share this”
“Leaders need to be open to ideas, not selective
about where ideas come from and they need to
besupportive of testing, trying and engaging”
“Leaders need to change
the orthodoxy of ‘what I
know is what works best’”
“Leadership needs
to introduce the
change”
The Workforce
of the FutureLeadership
& Skills
Employee
Experience
Technology
Enablers
Talent &
Supply
Chain
And we reflected on what we need to think about to prepare our
workforces for the future
Copyright © 2016 Accenture All rights reserved. 72
We broke into groups to think about the roles that the future will
create or change
Copyright © 2016 Accenture All rights reserved. 73
Empathy
Collaboration
Unafraid of
confrontation
Visualise
data
And we designed new roles, skills and capabilities that our
organisations might need
Copyright © 2016 Accenture All rights reserved. 74
And we determined which of these would make up the high value,
scarce talent composing the critical workforce
Scarce
Low
Value
Plentiful
High
Value
Copyright © 2016 Accenture All rights reserved. 75
Inspired by some examples, we then considered innovative ways to
attract and retain, develop and enable this talent
Copyright © 2016 Accenture All rights reserved. 76
Inspired by some examples, we then considered innovative ways
to attract, retain and develop this talent
Reverse
mentoring
Don’t employ
them! (in the traditional sense)
Give space
to meditate
Provide inspiration
We don’t need
an office Create an
under 35
shadow board
Give the
freedom to
pick projects
Focus on
behaviours
not values
Offer global opportunities
Copyright © 2016 Accenture All rights reserved. 77
“You can say you want to be data driven,
but unless you can get something to the
front line, it’s like saying you want to lose
weight by looking at fitness apps”
“Jobs and titles go away –
instead you have a role that
might change regularly”“We need to change the
language of the
company”
“We need to shape our talent
management to align with our
customer vision”
“Do we need a culture
design specialist?”“The way you treat
customers is key for
business – so there is still a
role for a claims agent at the
moments of truth”
“A claims agent is a customer
empathiser – they should be
empowered”
“We need people with
empathy, design skills and
creativity”
“Culture and leadership is
our big challenge” “We will have to reinvent ourselves
several times over our career”
“Data and technology are possible,
but are you actually executing what
is critical for the customer?”
And shared our thoughts as a group
Copyright © 2016 Accenture All rights reserved. 78
Finally, we wrapped up and reflected on the past two days
Copyright © 2016 Accenture All rights reserved. 79
“The balance of
different topics was
great – it feels more
rounded than just
another discussion
about the latest
technology trends”
“There are so many messages – I
need more time to digest them all”
“A lot of what was shared
here will shape my thinking
over the next 12 months”
“We really started to
think about how we
operationalise these
ideas”
“It’s a great group of people
coming together and that
allows you to really get
beneath the surface”
“Speaking to Trov was great as
you could see it live…it felt real.
That’s what really resonated –
I’d like to see more of that in the
next session”
“I take so many notes when I come to the
DIN – 15-20 pages, That just shows how
interesting it is!”
“Day 1 felt very fast paced and
today felt more reflective.. To
me that was right”
We shared our thoughts on the past 24 hours
Copyright © 2016 Accenture All rights reserved. 80
“The pace of change
always amazes me –
it’s moving so fast”
“25 years ago insurance
was rigid and nowhere
near as much fun”
“There is a tension
between creativity
and effectiveness”
“We are getting
accustomed to that pace –
but is that going to
continue to evolve further?”
“We need to invent new ways of managing
risk and assuring people about every
aspect of their life in the future”
“Everyone should spend
20% of their time on
innovation”
“Business models are changing.
Insurance innovation means working in
a different way”
“Is it only going to culminate in the run off
of the old… There has to be another way
to do it with internal innovation”
“Culture eats
strategy fro
breakfast”
“From Customer-centric
to business-centric”
“The HR department
needs to become a
culture department”
“Last year felt slow compared
to where we are now”
And shared our key takeaways
top related