How disruptive Innovation can be realized in Banking & Insurance
-
Upload
stefan-f-dieffenbacher -
Category
Leadership & Management
-
view
289 -
download
0
Transcript of How disruptive Innovation can be realized in Banking & Insurance
THIS IS AWESOME ©2016 1
Presented byStefan F. Dieffenbacher
München, 28.09.2016
How disruptive Innovation can be realized in Banking & Insurance Achieve digital transformation. Create profit. Become independent. Shape the future.
THIS IS AWESOME ©2016 2
Company builder helping corporates to build up new digital business.
Focus: revolutionary, new offerings.
About me: Stefan Dieffenbacher
Currently running two companies:
Strategy / Exeuction Advisory focused on digital helping corporates to take their next step with their existing digital channels.Focus: evolution of existing.
Active investor through THIS IS AWESOME / private –currently active shareholder in four additional companies & startups.
Heavy background in FS:
THIS IS AWESOME ©2016 3
Everything changes depending on whether you are working on a castle or a speedboat type of challenge, including:
§ Org structure§ People & their capabilities§ Approach§ Technology setup§ Customer approach§ Etc.
This presentation focuses on how to work as a speedboat.
Define your starting position: are you solving a castle or a speedboat type of challenge?
Your existing digital channels / banking platform / products / services.
Any future innovative or disruptive products or services.
Most castle’s (aka. large organisations) are trying to solve speedboat issues with their castle operating procedures. That is their prime point of failure.
THIS IS AWESOME ©2016 6
25% of European corporates have setup an internal incubator.92% of investments fail within 12 months*
>€4.5m lost
Idea … long process …
4.
5.
3.
2.
1.
6.
7.
8.
9.
10.
Business> €500k
> €500k
> €500k
> €500k
> €500k
> €500k
> €500k
> €500k
> €500k
> €500k only 1 successfulbusiness
9 businessesfailed/closed
* Study of large companies in EU – source: Gartner 2015
THIS IS AWESOME ©2016 7
>€4.5m lost
Idea … long process …
4.
5.
3.
2.
1.
6.
7.
8.
9.
10.
Business> €500k
> €500k
> €500k
> €500k
> €500k
> €500k
> €500k
> €500k
> €500k
> €500k only 1 successfulbusiness
9 businessesfailed/closed
25% of European corporates have setup an internal incubator.92% of investments fail within 12 months*
* Study of large companies in EU – source: Gartner 2015
Issue 1: ideas appear out of the blue typically supported by an organisationalleader (because he can organisefunding)
Issue 2: it takes the average organisation two years and millions of invest years to bring something alive.
Issue 3: Customer Validation is at best an afterthought. Ideas are untested till go-live.
THIS IS AWESOME ©2016 9
Start with 100 ideas (not with one)Test ideas with customers and let the best one’s survive
Number of Ideas
Outstanding quality of idea as a result of pivoting and selection.
Further, the idea is customer proofedand the business model is validated in practice.
100 10 1 to 3 min. 1
data drivendecision
data drivendecision
data drivendecision
Time + money spent
THIS IS AWESOME ©2016 10
And be damn fast! Experiments cannot take 2 years to go live!
$ saved
$ saved
data drivendecision
data drivendecision
data drivendecision
$ saved
~ 4 months~ 6 months
Number of weeks
4 6 12
launch
Time + money spent
THIS IS AWESOME ©2016 12
The approach we are using is based on best & proven Silicon Valley methods
Based on your customer’s needs we identify typically over 100 new business ideas. The 10 best ideas are selected data driven.
The Minimum Viable Product (MVP) allows a validation at a larger scale and pivoting. Once customers have proven to love the product/service and are willing to pay for it, we consider the product/service investment ready.
Ideas are validated with real customers and in real life. In parallel we develop a business model. 1 to 3 best ideas are selected data driven.
We help you to scale the business with our execution know-how, our HR knowledge and the unique technology setup.
IdeaGeneration
Problem /Solution fit
Solution /Market fit (MVP)
Build &Scale Business1 | 2 | 3 | 4 |
100 ideas 10 ideas 1-3 ideas
4 weeks 6 weeks 12 weeks
Steve Blank„Customer
Development“KANBAN
MVP launch
MANAGEMENT Y
THIS IS AWESOME ©2016 14
Build &Scale Business
The proposed approach for New Product / Service development
Based on your customer’s needs we identify typically over 100 new business ideas. The 10 best ideas are selected data driven.
The Minimum Viable Product (MVP) allows a validation at a larger scale and pivoting. Once customers have proven to love the product/service and are willing to pay for it, we consider the product/service investment ready.
Ideas are validated with real customers and in real life. In parallel we develop a business model. 1 to 3 best ideas are selected data driven.
We help you to scale the business with our execution know-how, our HR knowledge and the unique technology setup.
IdeaGeneration
Problem /Solution fit
Solution /Market fit (MVP)1 | 2 | 3 | 4 |
100 ideas 10 ideas 1-3 ideas
4 weeks 6 weeks 12 weeks
Steve Blank„Customer
Development“KANBAN
MVP launch
MANAGEMENT Y
THIS IS AWESOME ©2016 15
Innovation space
Define an “opportunity space” & create 100+ ideas(as opposed to simply starting with one idea)
Totally new business models
Major new product or service innovations
Minor product or service innovations Temporary micro-insurance
Micro-insurance
Property-insurance
Feeling & being safe
Insurance in general
Ways to being safe in retirement
Business view Customer view (examples from insurance industry)
THIS IS AWESOME ©2016 16
Build &Scale Business
A blend of best & proven Silicon Valley methods, used by companies like Google, Uber, Airbnb – adopted to large companiesThe proposed approach for New Product / Service development
Based on your customer’s needs we identify typically over 100 new business ideas. The 10 best ideas are selected data driven.
The Minimum Viable Product (MVP) allows a validation at a larger scale and pivoting. Once customers have proven to love the product/service and are willing to pay for it, we consider the product/service investment ready.
Ideas are validated with real customers and in real life. In parallel we develop a business model. 1 to 3 best ideas are selected data driven.
We help you to scale the business with our execution know-how, our HR knowledge and the unique technology setup.
IdeaGeneration
Problem /Solution fit
Solution /Market fit (MVP)1 | 2 | 3 | 4 |
100 ideas 10 ideas 1-3 ideas
4 weeks 6 weeks 12 weeks
Steve Blank„Customer
Development“KANBAN
MVP launch
MANAGEMENT Y
THIS IS AWESOME ©2016 17
Validate everything in practice with real customers. Go out on the street!
Users are co-producers/co-designers of the new products and services.
The alternative is desk-research (this is what Consultancies do). This however is typically very limited when it comes to innovative / disruptive ideas.
Partner
Awesome
Awesome Consumer
Awesome
Customer
Awesome
Awesome
Partner
Partner
Customer
THIS IS AWESOME ©2016 18
Build &Scale Business
A blend of best & proven Silicon Valley methods, used by companies like Google, Uber, Airbnb – adopted to large companiesThe proposed approach for New Product / Service development
Based on your customer’s needs we identify typically over 100 new business ideas. The 10 best ideas are selected data driven.
The Minimum Viable Product (MVP) allows a validation at a larger scale and pivoting. Once customers have proven to love the product/service and are willing to pay for it, we consider the product/service investment ready.
Ideas are validated with real customers and in real life. In parallel we develop a business model. 1 to 3 best ideas are selected data driven.
We help you to scale the business with our execution know-how, our HR knowledge and the unique technology setup.
IdeaGeneration
Problem /Solution fit
Solution /Market fit (MVP)1 | 2 | 3 | 4 |
100 ideas 10 ideas 1-3 ideas
4 weeks 6 weeks 12 weeks
Steve Blank„Customer
Development“KANBAN
MVP launch
MANAGEMENT Y
THIS IS AWESOME ©2016 19
MVP - Minimum Viable Product
Building a “Potemkin village” –the customer facing partof the business model
Key takeaways§ No integration with existing IT§ Potentially use an invented
brand for testing (as to avoid brand damange)
§ Get out as quickly as possible. Failing = learning
THIS IS AWESOME ©2016 20
Build a Minimum Viable Product instead of a Maximum Possible Product – and then start pivoting to customer’s taste
Minimum Viable Product (MVP) Maximum Possible Product
FAKE IT UNTIL YOU MAKE ITSource:Left:http://www.dailymail.co.uk/news/article-1328863/Heart-Attack-Grill-Free-food-customers-weigh-25st.html,Right:http://www.heartattackgrill.com/images/6.jpg?crc=294938557- HeartAttack BurgerGrillLasVegas
THIS IS AWESOME ©2016 23
new company
internal department
Potential outcomes / results
feedback product ideas feedback business ideas
line organizationAnd a lot of failures: fail fast! J
reintegration after growth
stay autonomous
new department
adaption by existing
department
Why is this successful?results are almost guaranteed due to the funnel
winning ideas are likely to be AWESOME, because they have seen many iterations
bad ideas drop out immediately
high cost savings
highly motivated employees
THIS IS AWESOMEWe are no consultancy - nor an agency.
We are entrepreneurs - with a holistic approach.
We prefer to execute, together with your team –rather then bullshit bingo and endless PowerPoint slides.
We do customer centric validation and pivoting, rather then academic market research.
We want you to succeed.
THIS IS AWESOME ©2016 26
Let’s create winning digital businesses –togetherAchieve digital transformation. Develop independence. Create profit. And design the future.