quality and innovation: a kpmg research perspective · dedicated quality department built in...
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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
CEO’s expectation of disruption
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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
• 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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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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
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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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
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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
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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Document Classification: KPMG Confidential
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
“It is not the strongest of the species that survive, nor the most intelligent, but the ones
most responsive to change”
Charles Darwin
Document Classification: KPMG Confidential
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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
© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.