Innovation for Country Transformation

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Innovation forCountry Transformation

Nitin KawalePresident, Cisco Canada

June 2012

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A Perfect Storm is on the Horizon

The time is right – Government recognizes global decline in innovation as major challenge– 14th in innovation. 18th in using ICT for business benefit

“PM, Finance and Industry to make innovation a top policy priority in 2012” – Headline from The Hill Times Online, March 20, 2012

John Chambers says: “Canada gets it” “Canada is the #1 country to do business in”

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WorkplaceChallenges in Canada

for CanadaWhat can we do

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Understanding the Problem: The Productivity Crisis"For too long, we as a country depended on a lower dollar, we used it as a crutch. We've got to get over that, and live with a dollar at par, or close to it, and find more innovative ways to do things."- Harry Hall, president, Aberfoyle Metal Treaters Ltd. of Guelph, Ont.

"Canada's recovery is progressing, but it is relying heavily on sweat and toil, and not on brains and innovation." - Douglas Porter, Bank of Montreal economist

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Productivity in Decline• Declining productivity means we’re missing opportunities

Productivity investment per Canadian worker is 60% of US levels

14th among OECD nations for innovation performance and productivity

• Canada’s capacity for innovation and ability to absorband deploy technology ranked 18th in the world

• Canada labour productivity growth is declining:1.9% annual average each year during the 1990s

0.7% annual average from 2000-2009

• Canada needs 4X current rate of productivityand sustain it for 15 years to close to Canada-US gap

A global problem. Other nations are likewise challenged

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Productivity Drives Standard Of Living

5%

3%

1%

100%

25%

50%

75%

0 9 18 27 36 45 54 63 72

Standard of Living Doubles in 14 Years

Standard of Living Doubles in 72 Years

Standard of Living Doubles in 24 Years

Source: Net Impact Study Years

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in Order to AccelerateWe Need to Innovate

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From Where Does Innovation Come?External sources of ideas and innovation

Business partners

Customers

Consultants

Competitors

Associations, trade shows, etc.

Academia

Employees (general population)

Sales or service units

Internal R&D

Internal sources of ideas and innovation

0% 5% 10% 15% 20% 25% 30% 35% 40%

0% 5% 10% 15% 20% 25% 30% 35% 40%

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So…the Future is All About “Connecting”

Wherewe work

When we work What toolswe use

Who WeWork With

Howwe work

Collaboration is more critical than ever

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Canadian Are Ready…• 70% use social media

• Canadians among the busiest users of social media

• LinkedIn has more than 2 million Canadian members

• 16 million Canadians on Facebook

• 47% use Twitter

• 58% of Canadians say they have blogged

• 61% of businesses track what’s being said about them online

But business is NOT ready. We want to help

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Country Impact – Think Big, Thing Bold, Move FastOur Guiding Principles: • Impact local innovation & productivity to

change the trajectory of the nation

• Influence the economic development of the unique geographies of Canada

• Elevate our relationships – politicians, families, companies, communities – appeal to their passions for their geography

• Become the #1 IT brand in Canada

• Set a bar that no competitor can reach

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Partners & Customers

EmployeeEngagement

Governments

NGOs

R&DAcquisitions

Corporate Social Responsibility

Compete on a different

level

Cisco CanadaA 360 Approach to Innovation

Brand Awareness

Universities &Innovation Centres

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Results & OutcomesAccomplishments:• Advisor to Federal, Provincial and City Governments

• Nationally recognized thought leaders

• 300 new R&D jobs in Canada facilitated by $25M grant from the Province of Ontario – just the start

• Top 3 “Best Company to Work For” in Canada over the last 3 years

• #3 Country in Cisco

• A culture of firsts and innovation (Bigger, Bolder, Faster)

• Employee’s have a higher purpose

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• Keep experimenting

• Execute on government MOUs

• “Connected North”

• Reverse Mentoring

• Vertical Rainmakers

• Create a truly “social business”

• Enable the “future of work”

What’s Next for Canada?

Our focus on innovation needs to continue

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Shaping the future of our communities

Thank you.