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Terry StuartChief Innovation Officer
Deloitte Canada
OCIO
Getting ready
Time
Opp
ort
un
itie
s –
New
In
no
va
tio
ns
Emergence of new models for customer & channel value
Living in an exponential world
30 linear steps
About 30 yards… … 26 times around the earth
The disruptive nature of exponential growth
30 exponential steps
(i.e. 1 + 2 + 4 + 8 + 16 + 32 …)
Terry Stuart @ C2 Montreal 7
Terry Stuart @ C2 Montreal 8
What do we mean by disruption?
“A process by which a product or service takes root initially in
simple applications at the bottom of a market and then
relentlessly moves up market, eventually displacing
established competitors.”
Clayton Christensen, Author - Innovator’s Dilemma.
Disruption will impact all industries at some point
Source: Deloitte Australia – Short Fuse, Big Bang
ICT and media
FinanceRetail trade
Professional services
Arts and recreationReal estate
Timing (years)
Imp
act
(% c
han
ge in
bu
sin
ess)
Construction
Wholesale tradeAccommodation
and food servicesManufacturing
Mining
Utilities
Government Services
Agriculture
Education
Health
Transportand post
Recruitmentand cleaning
50
40
30
20
10
017%of theAustralianeconomy
SHORT FUSE, SMALL BANG
18%of theAustralianeconomy
LONG FUSE, SMALL BANG
33%of theAustralianeconomy
LONG FUSE, BIG BANG32%of theAustralianeconomy
SHORT FUSE, BIG BANG
.... and even government
Source: Deloitte Australia – Short Fuse, Big Bang
ICT and media
FinanceRetail trade
Professional services
Arts and recreationReal estate
Timing (years)
Imp
act
(% c
han
ge in
bu
sin
ess)
Construction
Wholesale tradeAccommodation
and food servicesManufacturing
Mining
Utilities
Government Services
Agriculture
Education
Health
Transportand post
Recruitmentand cleaning
50
40
30
20
10
017%of theAustralianeconomy
SHORT FUSE, SMALL BANG
18%of theAustralianeconomy
LONG FUSE, SMALL BANG
33%of theAustralianeconomy
LONG FUSE, BIG BANG32%of theAustralianeconomy
SHORT FUSE, BIG BANG
Terry Stuart @ C2 Montreal 11
Past research suggested that Canada is
especially vulnerable to disruption
Canadian businesses
show higher risk
aversion than the US
Canada has fewer high
growth mature firms
than the US
1 in 3 Canadian businesses
invest below average for their
industry without knowing
Terry Stuart @ C2 Montreal 12
Our recent research
focused on the
preparedness of
Canadian firms for
disruptive
technologies
12
Age of Disruption
…and it gets worse
Terry Stuart @ C2 Montreal
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3
87% of Canadian firms are not fully prepared
for disruption from advanced technologies
Highly prepared
13%
Single-minded
23%
Unprepared
35%
Tentative
29%
Advanced Robotics
Artificial Intelligence
Networks
and sensors
Advanced Manufacturing
Collaborative Platforms
Change enablers
Virtual / Augmented
Reality
Blockchain
Artificial intelligence is displacing human
workers in professional practices
Meet Amelia:
The virtual agent avatar
that can redefine the
future of IT
Advances in robotics are changing
how we manufacture goods and
replacing human labour
Meet Navii:
A fully autonomous
Inventory and Customer
Service solution
Networks and sensors enable
companies to deliver a level of
customization never before possible
Blue Rover uses the Internet of
Things to provide businesses with
real time analytics
Sending machines to risky human environments
Potential to impact:
Insurance
Infrastructure
Parking
Real estate
Auto manufacturing
Autonomous Cars
No longer science fiction…formal target dates:
2020 2018 2030 2020 2024
2020 ? 2018 2020 2025
Where will the future of mobility take us?
Cost per mile
Ownership
Co
ntr
ol
sharedPersonal
Dri
ve
rA
uto
no
mo
us
The future of
mobility report
Source: Bloomberg, New Energy Finance & PV.Energytrend.com
Price history of silicon PV cells in $ per watt
X253
Autonomous + Electric + On-demand / Ridesharing = ?
Short term? Longer term?
Ride sharing + Autonomous + Electric = ?
Collaborative connected platforms
are allowing firms to access expertise
outside their organizations
Total guests that have stayed at an around the world
6 years ago, in the
summer of 2010,
47,000 guests
stayed at an Airbnb
Last summer,
nearly 17 million
17M
15M
10M
5M
2010 2011 2012 2013 2014 2015
353X
96 Years
152,000 employees
Market Cap $25B
4,112 Physical Assets
680,117 Rooms
91 Countries
As of March 2014
ZERO Physical assets
+1,000,000 Rooms
191 Countries
7 Years
~2,000 employees*
Market Cap ~$30B*
* Based on unofficial data
Distributed power changes
Terry Stuart @ C2 Montreal 35
The challenge for government is to determine how to
enable these technologies while also protecting citizens
Liability
Safety
Privacy
Tax
Regulation
Education Infrastructure
Knowledge &
Expertise
Ideation &
Creativity
Labour &
Process
Technology &
Data Science
True Virtual / Augmented reality is
nearly upon us, and it will revolutionize
the way we live, work, play and learn
We believe effective innovators replace myths with methods
What does this mean to YOU?
Observable events
Patterns
Trends
System Dynamics
Terry Stuart @ C2 Montreal
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2
We believe effective innovators follow 4 important principles
Be explicit
about
innovation
ambition
1. Look beyond
product
innovation
2. Drive innovation
from deep and
unconventional
insights
3.
Focus on
discipline
4.
+
Terry Stuart @ C2 Montreal
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3
The typical innovation journey in Theory
Energy, enthusiasm, results
Time
Ownership and go ahead
Big rewards
Realize the need for innovation
Excitement, people jump on in
Visionemerges
Glimpses ofbrilliance
Teamunity
Terry Stuart @ C2 Montreal
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4
The typical innovation journey in Practice
Volume or scope feels overwhelmingLearning curve for
new methods
InitialDiscoveries
Initial ideas seem vague
Realize the need for innovation
Inertia
Confusion about where to start
InitialPlan
Trade offs
Patternsemerge
Team unity
Hard work ahead, withbig rewardsExcitement,
people jump on in
Visionemerges
Glimpses ofbrilliance
Ownership and go ahead
More confusion, low energy;requires a leap of faith
Passionatedebate
Disbeliefreturns
Energy, enthusiasm, results
Time
Terry Stuart @ C2 Montreal
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5
Building for sustainable breakthroughs
Innovation
Ambition matrixM
AR
KET
S&
CU
STO
MER
S
70%
20%
10%
PRODUCTS & ASSETS
TRANSFORMATIONAL
ADJACENT
CORE
Terry Stuart @ C2 Montreal
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6
Look beyond product innovation
Easier to ImplementBolder Concepts Harder to Copy
Terry Stuart @ C2 Montreal
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7
Citizens Connect and City WorkerProviding a mobile tool that enables residents to more easily interact with the city
6 types:
Citizens are able to submit and track other service requests for graffiti, potholes, damaged signs, and more by geo-tagging and sending photos directly to city workers
Terry Stuart @ C2 Montreal
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8
VLER enables the tracking and sharing of health information between
DoD, VA and other providers
4 types:
“When a member of the Armed
Forces separates from the military,
he or she will no longer have to
walk paperwork from a DoD duty
station to a local VA health center;
their electronic records will
transition along
with them and
remain with
them forever.”
Barack Obama,
2009
reducing patient burden and
improving continuity of care
Think Tanks
Influencers
Federal
Provincial
Municipal
Programs
Experts
Clients
Start-Ups
Partners
Vendors / Suppliers
Speak
Host
Sponsor
Attend
Innovative
Companies
Government
Community
Member Firms
CompetitorsInvestment Community
Incubators / Accelerators
Education institutions
Thought
Leaders
Organized NetworksConferences
Media
Engaging an innovation ecosystem
By now you should be asking yourself
• How prepared is my minister to this new age of disruption?
• What are the key next steps to increase preparedness?
• How can we go past the myths and build sustainable innovation engine?
• Which of the exponential tech could disrupt our industry?
• Does new technology bring new implications to how we govern?
What you will achieve is a function of what you are willing to install…
See it for yourself
Getting started
When traveling,
visit innovation hubs
Map your innovation portfolio
Learn about the
Innovation methodologies
Get curious
Go to Exponentials.xyz
for additional resources
Weekly EXO
Deloitte newsletter
Exponential
Organization
by Salim Ismail
Canada's Age of
Disruption Report
Visit
Exponentials.xyz
DU Exponentials
Whitepaper
Learn more
Watch Salim
Ismail on
YouTube
Watch Peter
Diamandis TED
Explore
Go deep
BOLD book
by Peter D
Doblin's
10Type bookThe future of financial
services report
Terry Stuart @ C2 Montreal
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4
Terry Stuart @ C2 Montreal
5
5
Hours
Total Cost
Submissions
Countries
113
$10K>
