Quality and Innovation: A KPMG research perspective · Dedicated Quality Department Built in Quality (BIQ) Value generat ion Business Impact Core Producty Development, Support & Services

Quality and Innovation: A KPMG research perspectiveSrijith Sreenivasan

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Document Classification: KPMG Confidential

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CEO’s expectation of disruption

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Focus on technology driven innovation

69%Innovation

(new products / services)

82%Digital

infrastructure

Areas where CEOs plans to make high investments over the next three years

63%Emerging

technologies

69%Regulatory compliance

82%Physical

infrastructure

80%Cognitive technologies

85%Internet of things

85%Data analytics

tools 65%Robotics process

automation

Top areas where CEOs plans to make technology investments over the next three years

Technology continues to be at the forefront

CEOs believe that technology is likely to be one of the top-two factors

impacting the growth of their organisation in the next three years

Technology is likely to be one of the top-two factors impacting the growth of their organisation in the next three years

Source: KPMG India CEO outlook 2017

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• Companies will see further declines in Customer Experience quality

• CEOs will fail to act on digital transformation and put their firms at risk

• Purchase decisions that will be influenced by intelligent agents

• brands will lack expertise in the algorithm of intelligent agents

• early AI projects will underwhelm due to operational oversights

• proofs of concept that will create a true foundation for block chain

30% 20% 10%

25% 75% 30%

Predictions for 2018

Source: Forrester predictions for 2018

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Impact of innovationInnovation

95% - drives a more competitive

economy

91% - creates a greener planet

88% - is the best way to create jobs

87% - adds value to the society

84% - improves lives of people

Source: Independent survey done by GE on 1000 business executives across 12 countries

Source: World bank report, May 2017

What is Quality’s role?

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Evolution of Quality

Quality Control• Testing• Inspection

Quality Assurance• Defect

Prevention• Cost of Quality• Audits and

Reviews

Quality Management• Process

improvements• Management

systems

Business Excellence• Effectiveness

and Efficiency• Defect

Elimination• Adaptability and

Agility

Next Generation?• Uncertainty is the

only certainty • Self Governing

and Self Sustained Systems

• Integrated Early Warning Systems

Discipline Standardization Regulatory Compliance

Continual Improvement Transformation

Stages

Focus

Craftsmen/Foremen

Quality department

Engineering Process Groups

Self-directed teams

CXOs and Customers

Driven by

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Quality and Innovation• Quality brings in consistency and an ecosystem for innovation• Quality's theme of continual improvement urges individuals

and teams to explore out of the box solutions to pertinent problems

• Quality consciousness enables discipline and stability of operations which can result in mean shift improvements

• Quality with its focus on customer satisfaction unearths key factors which can be exponentially improved and innovated.

Delighted customers

Innovative technology

Innovative processes

Innovative products/ services

Key drivers of innovation

1. Talent nurturing 2. Developing creativity 3. Managing relationship with the organization

4. Fostering a culture of innovation

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The transformational role of Quality

Defect Reducti

on

Contractual

Compliance

Delivery Excellence

Audits, Work-product Reviews, Facilitation, Process Trainings

Dedicated Quality Department

Built in Quality (BIQ)

Value generat

ion

Business Impact

Core Product Development, Support & Services

QA Co-Create

Value

Process Compliance

Customer

Centricity

Self diagnosing systems, Automated Warning Systems, Digital Quality

Quality – Integral part of delivery

Innovation: Macro perspective

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Global Innovation Index

For the seventh consecutive year, India has outperformed on innovation

relative to its GDP

The GII recognized India for defying the standard model of the most economically

developed countries dominating the rankings

India has shown improvement in most areas, including in infrastructure, business sophistication,

knowledge and technology and creative outputs

1. Switzerland

2. Sweden

3. Netherlands

4. United States

5. United Kingdom

.

.

60. India (Up 6 places from previous year)

Global Innovation Index (GII)

Source: http://www.forbesindia.com/article/special/india-moves-up-six-places-to-rank-60-in-global-innovation-index/47267/1

Survey of 127 economies done by Cornell University, French business school Insead and the World Intellectual Property Organization (WIPO)

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Innovation maturity levels

Level 1: Reactive

Level 2: Structured

Level 3: In Control

Level 4: Internalized

Level 5: Continuously Improving

• Individual efforts for innovation

• No formal process

• Focus on growth

• Defensive – in response to external shocks

• Priority set by Senior Management on innovation

• Formalize innovation activities

• Dedicated resources for innovation

• Company-wide tools for innovation

• Reward systems for innovation

• Innovation part of organization culture

• Proactive approach for innovation

• Product and process level innovation becomes BAU

Braden Kelley, 2013

Create a safe space for

innovation

Enable organizational

agility

Broaden perspectives

Promote and reward

collaboration

Celebrate success and

learn from setbacks

Best practices to foster innovation

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“It is not the strongest of the species that survive, nor the most intelligent, but the ones

most responsive to change”

Charles Darwin


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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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Srijith SreenivasanAssociate DirectorManagement [email protected]+91 9449349735


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Quality and Innovation: A KPMG research perspective · Dedicated Quality Department Built in Quality (BIQ) Value generat ion Business Impact Core Producty Development, Support & Services