Royal Bank Of Canada

Idea generation and trials; lowIdea generation and trials; lowrisk innovation to testb kth h idbreakthrough ideas

Avi PollockHead, Applied Innovation

FinnovationNovember 21, 2008

Today’s Agenda

Defining Innovation @RBC

RBC Innovation Infrastructure

Case Study: Next Great Innovator Challenge: ASandbox for InnovationSandbox for Innovation

Questions?Questions?

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RBC & Innovation

Innovation connects what is possible to

what is valuable to our clients and/or shareholders

ClientNeeds

• Innovation can be broadlyinterpreted as “something new” –new to the world, new to a

i l k hparticular market, new to thecompany or new within the company

I ti i th id tiInnovation

• Innovation is more than ideation –it is a full range of activities frominsight and idea generation,through testing and developmentthrough testing and development,to launch and evaluation

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Benefits of Innovation

Client Value• Clients recognize RBC as agprogressive institution

• Increases client advocacy andlikelihood to recommend

Attracts/Develops TalentBusiness Growth• Engages employees who viewthe organization as innovative

d titi

• Contributes to earnings growththat is required to maintain top

til fInnovation

and competitive

• Attracts and retains innovativeand progressive leaders whowin and ‘shape the future’

quartile performance

• Promotes new earning streamsand maximizes opportunitiesin existing businesses

• More responsive to evolvingclients and markets

Strategic Agility

• Better able to absorb ‘shocks’from industry transformation,competitors or new entrants

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Strategic Agility

The Innovation Pyramid

“Change the Game ”T f ti l

“U th A t ”

Transformational

“Up the Ante”Evolutionary

Efficiency “Tablestakes”

A portfolio approach is necessary to have a successful innovation agenda.

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Defining Innovation @RBC

RBC Innovation Infrastructure

Case Study: Next Great Innovator Challenge: ASandbox for InnovationSandbox for Innovation

Questions?Questions?

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The Applied Innovation Team Mandate

Identify emerging technologies and new businessand process opportunities that have the potential toand process opportunities that have the potential todrive growth

Support, facilitate and stimulate idea creation andinnovation with access to internal and externalinnovation with access to internal and externalthought leadership, tools and methodologies

Evaluate and test next generation technologies

Always looking to “what’s next”, “what’s new,”“what’s different” and its application to RBC

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The RBC Innovation Council

Identify exploratory concepts on a longer-termtime horizon – concepts that are likely not yet ontime horizon concepts that are likely not yet onthe radar of the day-to-day business leaders

“Incubate” concepts to a point where a businesscase has been developed and/or a proof ofconcept has been completed andconcept has been completed and

Help drive an innovative culture through theHelp drive an innovative culture through theorganization by acting as spokespeople oninnovation, clearing roadblocks, supporting IC

jprojects, etc.

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Ideation: Building a Pipeline

Ideation Programs

50

25

15

10

5

Deployment

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p y

Looking for that Next Idea

Scanning Activities

• Continuously scanningunstructured information aboutthe external environment

Scanning Activities

B i

TToopp EEnntteerrpprriissee CChhaalllleennggeess

External

• Providing early warning abouttopics not yet identified asstrategic

BusinessDrivers

SSccaann

ExternalTrends

• Collecting and organizing datapoints into topic areas ofpossible strategic importance

Identif ing ne topics of

SSccaannTTrryy

SSyynntthheessiizzee• Identifying new topics of

strategic importance (throughsorting and ranking) that mayrequire monitoring in thetargeted processtargeted process

• Engaging in user experiencetests on emerging trends

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Ideation: Driving New Ideas From Within

Idea Portal

ProfilesPipeline Metrics

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Ideation: Looking Outside- Next Great Innovator

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Learning by Doing: Applied InnovationLabs

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RBC Beta

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Communicating Knowledge

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Defining Innovation @RBC

RBC Innovation Infrastructure

Case Study: Next Great Innovator Challenge: ASandbox for InnovationSandbox for Innovation

Questions?Questions?

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RBC’s Next Great Innovator Challenge

What it is:National competition targetedNational competition targetedat college and universitystudents with a focus onbusiness programsbusiness programsRBC asks for innovative ideasand solutions to a meaningfulbusiness challengebusiness challengeOver $45,000 in prizes andmany ancillary benefits for thestudentsstudentsThird year of the Challengelaunched in SeptemberSponsored by RBC’senterprise Innovation Counciland managed by the AppliedI i

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Innovation team

Competition Objectives

Generate ideas that are relevant and actionableGain better insight into NGen demographicIdentify candidates for recruitmentTest effectiveness of innovative website designd b t h l iand new web technologies

Promote the perception of RBC as a progressiveand innovative financial institution among anand innovative financial institution among animportant consumer segmentGenerate positive press for RBC

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The Challenges

2009Suggest an Innovative

concept, product or processfrom another region ordifferent industry that

Canadian Financial ServicesCanadian Financial Servicesproviders should adopt.

2008D ib i ti idDescribe an innovation, idea orconcept that Canadian FI’sshould consider to make iteasier for clients to do

2007

easier for clients to dobusiness with us

How will today’s teensinfluence the financial

services industry in Canada?

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Marketing NGI

www.nextgreatinnovator.comm

Grassroots with professors,clubs faculties programsclubs, faculties, programs

Grassroots online

Coordination with RBC’s FallCoordination with RBC s FallCampus Promotion activities

Facebook

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On-campus promotion

Sandbox for Innovation – Social Media

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Sandbox for Innovation - Mobile

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Sandbox for Innovation - Multimedia

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Sandbox for Innovation – Interactivity

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Sandbox for Innovation – Interactivity

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Ideas into Action

107 S

10 C I

T

I

S I

7 S

C

V D

T

O 40 U

C

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O 20 U V

D

Ideas into Action

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Final Thoughts on Innovation

Do-learn-do is the optimal approach

I i i b hInnovation is about change

Innovation doesn’t just happen

Don’t starve tomorrow to feed today or let the urgent crowd outthe important.

D l lDevelop a common language

Innovation is a team sport

Small things matter

Organizational Culture: Collaboration is king, aim for diversity ofth htthought.

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Final, Final Thought on Innovation

Some people make thingsSome people make thingshappen. Some watch while thingsh A d d "Whhappen. And some wonder "What

Happened?"Happened?

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A Case study in Applied Innovation

Avi Pollock

Case study pp ed o at o

Avi Pollock

Head, Applied Innovation

Email: avi.pollock@rbc.com

Ph (416) 348 4871Phone: (416) 348-4871

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