Applied Innovation for the Unorganization

Lanny S. Cohen | Group Chief Technology Officer | Capgemini

Applied Innovation changes everything

Check your pre-conceptions at the door

Startup investment in 2015

$7.5 billion

21%

905 deals with startups

Total business deals 2015

SOURCE: Thomson Reuters data published by PwC

startups in the San Francisco Bay area

17,000+

of startups fail in the first year

new innovation centers opened over the past

6 months in 20 countries

56 80%

SOURCE: Thomson Reuters data published by PwC

Annual spend on R&D

$650 billion

of new consumer product launches

fail

are too slow to market

85% 90%

SOURCE: Thomson Reuters data published by PwC

This is a profoundly uncertain,perpetually disruptive marketplace

• 52% from the year 2000 no longer exist

• The iPhone = extinction of 27 business models

• Uber is 7 years old, valued at over $66 billion

• Snapchat valued at $10 billion after 4 years

Faster Pace

Source

Impact

Disruptive and continuous innovation is the new normal

Culture

Talent Process

RiskTolerance

The Traditional Organization

Hierarchical decision-making

Efficiency overinnovation

Failure is not allowed

Innovation through R&D

Most organizations are ill-equipped to foster innovation

Ideas are currency.Knowledge is capital.

Innovation, brilliantly applied, is gold.

Speed Scale Safety Certainty

4 design principles are needed to address innovation today

Planned Measured Managed

Discipline Outcome

Innovation is not a random act

Business and IT alignment

Business model innovation and growth

Buyer sophistication and state-of-readiness

Getting started

Innovation is still not the whole story

Innovation without ironclad application is a bankrupt proposition

Discover Devise Deploy Sustain

A vigorous framework is needed to achieve Applied Innovation

Venturefunds Academia

Start-ups Private equity firms

PartnersInnovation experts

3rd party R&D

A multi-disciplinary and open ecosystem

HighlyCollaborative

PerformanceFocused

Open inDesign

Domainexpertise

Proximity

Experiential based facilities

Inform Inspire Incite Ignite

Emotional engagement

"Digital Dynasties: The Rise of Innovation Empires Worldwide" by Capgemini Consulting & Altimeter

Key innovation center objectives drive Applied Innovation

Partnering with Ecosystem 51%

Product Innovation/Concept Development 28%

Enhance Customer Experience 13%

Improve Operational Efficiency 3%

Others 5%

The risks are real,yet the opportunities are immense

Culture

Talent Process

RiskTolerance

Engagingand open

Applied Innovation as core competency

Reward experimentation

Agile and fast

The Unorganization

The unorganization enables today’s Applied Innovation

Digital native leaders

Established organizations adapting to change

Framework

Ecosystem

Exchanges

Insight

Engagement

Technology COEs

Applied Technology Platform

Technology Consulting Group

IP Protections

Innovation Ecosystem

Research & Innovation

Knowledge Managementand Collaboration

Marketing

Governance

Platform Infrastructure

Applied Innovation at Capgemini

Applied Innovation Exchange (AIE)

Looking Ahead

Pace Accelerates

Experience Economy

Cognitive Thinking

Machine to Machine/

Automation

Collaborative Future

TrustEconomy

Processeson the Fly

Analytics Everywhere

Millennials Dominate

Need to act

Define Immerse

Calibrate Align

Engage Experiment Execute

Applied Innovation changes everything

The information contained in this presentation is proprietary. © 2016 Capgemini. All rights reserved.

www.capgemini.com

About Capgemini

With more than 180,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model. Rightshore® is a trademark belonging to Capgemini