To Disrupt or be Disrupted

to disrupt or be disrupted?

Hugh Saalmans, IAGLocation Engineering Director

@minus34

We are in a period ofrapid change

A customer-led, data driven,technology enabled age

Do we asprofessionals and organisations

need to respond to this?

If you worked for Blockbuster

or Nokia’smobile phone division

or Kodak

You’d probably say Yes

If you work for these guys,you’re probably not fussed

So how do we respond?

IAG & geospatialdisruptionthe enablersyour response

to disrupt or be disrupted?

ANZ’s largest general insurer

ANZ’s largest general insurer

With revenues over $11bn and $2tn in assets protected; including millions of homes & cars and 100,000’s of businesses

We’re heavy users of geospatial tech and data, across many areas of the business.

The key things we use geospatial for - are fundamental to insurance

For example:

2012 flood risk data

Risk based pricing: using a combination of GNAF, natural peril data and HERE’s road data and POIs, for example, to determine each customer’s individual risk at the property level

Asset Data: using building & property data, such as PSMA’s Geoscape, to improve risk modelling & simplify the quotation process for our customers

Major Event Mapping: using live weather & bushfire feeds to be alerted to disasters before they happen; to respond more quickly to impacted customers

Australian Business Roundtable: using our geospatial & peril modelling expertise to generate reports into the cost of disasters through the Australian Business Roundtable.

The Australian Business Roundtable champions disaster resilience & community safety and is comprised of the organisations above

ANZ’s largest general insurer

ANZ’s largest general insurer

A customer led, data-driven organisation

STRATEGY

STRATEGY

Why are we focussing on this…?

IAG’s ProblemDisrupters could deliver their services with half IAG’s expense ratio

disruption

What is disruption? – there are 2 perceptions…

disruption?

First - there’s this big, scary digital wave coming that could impact your industry, but you haven’t worked out:

Whether it’ll impact your organisation? How it’ll impact your organisation? How big the impact will be? or How to mitigate it’s impact?

disruption?

Or there’s this exciting opportunity to ride the digital wave and:

-create a new service that fills an existing gap in the market; or

- create a new way of doing business that provides superior customer and end user experiences, and gains you market share

Perceptions aside,

What is disruption?

Changes enabled by digital technologies; occurring at a speed & scale that disrupt existing ways of doing business

Its about combining innovative processes along with data and technology to create effortless experiences for customers & end users

It’s not about creating lots of choices

disruption may be tech enabled, but it’s still people led

Technology may enable disruption, but at its heart is a deep understanding of what people want, what motivates them and how they want technology to work for them.

And that applies whether you’re a consumer or at work

examples of disruption

blockchain

https://www.newscientist.com/article/2101667-blockchain-grid-to-let-neighbours-trade-solar-power-in-australia/

PowerLedger allow households with surplus energy to sell it to other households, using blockchain to verify & record transactions.No energy provider, just your neighbour selling their excess power to you! A trial is about to begin in Busselton, WA

http://www.forbes.com/sites/laurashin/2016/04/21/republic-of-georgia-to-pilot-land-titling-on-blockchain-with-economist-hernando-de-soto-bitfury/#3a9b5b076550

The Republic of Georgia are about to trial the use of blockchain for Land Titling with a local technology provider, BitFury.How will that change the way land transactions are carried out? What will the impact be on surveying, real estate and conveyancing?

insurance disruption

on-demand, micro& P2P insurance

In an effort to make insurance more meaningful and affordable…You can now get time based insurance in the UK for your care.g. I want to insure my car from 9am to 12pm on Saturday

on-demand, micro& P2P insurance

You can also now insure individual items of value, (known as micro-insurance), through sites such as IAG’s Insurance4That

on-demand, micro& P2P insurance

Peer 2 Peer insurance is also growing with German based Friendsurance starting up in Australia soonIt’s based on the simple premise that customers pay a premium into a communal pool, and then get some money back if the pool isn’t emptied throughout the year by claims

on-demand, micro& P2P insurance

For P2P insurance to work it needs accurate, property level risk ratings (as IAG’s done for a number of years) using spatial data.This is because each customer’s contribution is based on their individual, location based risk.Highlighting the value of open datasets such as G-NAF

UBI - telematics

Usage based Insurance: Telematics provide a combination of GPS tracking & accelerometer data to determine whether you’re a safe driver or not - so you can be priced accordingly. It also gamifies the experience by allowing drivers to compare themselves against others as a motivator to improve.

UBI - home sensors

UBI - home sensors

IoT sensors are already impacting the home insurance market - both Liberty Mutual in the US and Allianz in Germany have partnerships with Google Nest and Panasonic.Install a home safety or security device, hook it up the internet and get a discount on your insurance!

UBI - home sensors

UBI - home sensors

But this is where it gets interesting…As smart doorbells, home security and weather sensors become commonplace in Australian & NZ homes over the next 5-10 years…We can foresee a future where there are 100,000’s of weather and security sensors across each city!

UBI - home sensors

Imagine what impact that data will have on:Insurers’ understanding of risk; andEmergency responders & insurers’ ability to understand what’s happening in a disaster;As well as potentially improving weather forecasting itself

autonomousvehicles

autonomousvehicles

The big disrupter!A 2015 KPMG report estimates that autonomous vehicles will reduce the size of the personal motor insurance market by 60% within the next 25 years.Given the personal motor insurance is the most profitable product line in general insurance – the impact of this will be profound

autonomousvehicles

The data that autonomous vehicles capture is big!They capture and analyse up to 1Gb of LIDAR, radar, imagery & high precision GPS data per second

autonomousvehiclesNow, let’s jump to the future again - 15-20 years from now when there will be 100,000’s of autonomous cars on the road capturing this data...…if processing power and wireless internet speeds continue to grow exponentially over this time – then we can imagine a future where entire city streetscapes will be mapped in 3D, every dayWhat impact will that have on the insurance and geospatial industries?

drones

After the Wye River bushfires last Xmas, the area was cordoned off due to asbestos contamination. With our assessors unable to get into the area, we flew drone missions over the area to capture images of damaged & destroyed homes.This allowed us to help customers who had lost everything by giving them some certainty about their future much sooner after the event.

surveying disruption

You can now use your smartphone to plan and execute an aerial survey

And automatically extract a 3D point cloud, 3D models and ortho-rectified imagery from the survey

It can be done using a consumer grade drone.Not only that, you can use consumer grade cameras for terrestrial photogrammetry and using the same image processing tools, get ~10mm accuracy

And that’s not using precise positioning, which in a few years will be available in almost every device; when autonomous vehicles start hitting Australian streets

a game changer?

http://spectrum.ieee.org/tech-talk/semiconductors/optoelectronics/mit-lidar-on-a-chip

Meanwhile MIT have developed a LIDAR sensor with no moving parts that’s < 10mm wide and costs < $10.How will this sensor revolutionise real-time positioning and mapping as well as data capture?

the enablers

the enablerssmartphonesDevOpsinfrastructure as codeopen sourcework practices & team culture

smartphones

In under 10 years, smartphones have become all pervasive

Pope Benedict’s appointment in 2005…

Pope Francis’ appointment in 2013…

With the smartphone came the realisation that people expect to do business or be able to work on any device, at any time.

Smartphones, and subsequently tablets, fundamentally changed the need for digital services and tools for both consumers and employees

DevOps

DevOps is a approach that gives developers full ownership of an application or API from the first line of code, through to testing, deployment & maintenance

DevOps

Organisations such as Facebook, Uber & Google use DevOps tools such as these to rapidly create & update their apps and APIs at a speed and frequency that wasn’t previously possible

infrastructureas code

Complementary to DevOps is the ability to script the repeated and rapid creation of server resources, at any scale.

The foundation of this is cloud computing using platforms like Amazon Web Services and Docker

open source

open source

Open source allows you to deploy your apps and APIs cost effectively

It’s another key reason why startups and disrupters have low operating costs

Zero licensing costs, regular updates, proven reliability & scalability, established developer & user communities, tools that are designed for DevOps & infrastructure as code – open source ticks many boxes

open sourceIt’s the combination of open source + code based infrastructure + DevOps that allows Facebook to change 10 lines of code and then redeploy their app globally on 10,000 servers, several times a day if needed!

…and here’s a big threat - as more organisations move towards a disruptive approach - this combination will slow the growth of the IT industry as they become more self-sufficient

…and the geospatial industry will be impacted by this.

work practicesAutomation

CollaborationIterative delivery

Cloud first

team cultureEmpowerment

ExperimentationDiversity

Be an outlaw

your response

work practices

Point & clickIf you want to create an innovation mindset for yourself - you’re not going to keep using your tools by pointing and clicking at things over and over again – especially not for repeatable tasks

work practices

You’re not going to keep working in a silo, avoiding collaboration across your organisation

work practices

You’re not going to deliver big ticket projects that take a long time to deliver nothing until the end

work practices

You’re not going to continue to run internal hardware that costs up to 10x the same infrastructure in the cloud – even if you only have 2 servers

AutomationCollaboration

Iterative deliveryCloud first

work practices

automation

DevOpsInfrastructure as code

collaboration• Cross-functional teams• Everyone a mentor & coach• Peer review• Share, share, share:

• Slack, Confluence, Yammer

iterative delivery

team cultureEmpowerment

ExperimentationDiversity

Be an outlawTo innovate and make your organisation resilient to change - you will need to develop a team culture with these traits

empowermentEveryone empowered to:◦Deliver◦Make decisions◦Help develop teammates◦Develop themselves

empowermentEveryone contributes to:◦Deliverables◦Decision making◦Development of teammates◦Self-development

experimentation

Take risks and fail

Innovate through experimentation

diversity

be an outlaw•Don’t ask for permission•Be curious•Ask the “so what?”•Do it differently•Challenge assumptions