INNOVATING IN AN AGE OF EXPONENTIAL CHANGE MOVING FROM COMPETITIVE ADVANTAGE TO DISRUPTIVE ADVANTAGE

Terry Stuart Partner, Chief Innovation Officer Deloitte Canada October 25th, 2016

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.

Time

Op

por

tun

itie

s –

New

In

nov

atio

ns

Steady Stream of “Core” Capabilities Progressing Linearly

Emergence of new models for customer & channel value

Linear Trend

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 …)

© Earth Policy Institute

Solar panel pricing is on an exponential decrease and as a result the installations are aggressively growing globally

How much land is needed to power the world with solar?

© Land Art Generator Initiative

© Tesla © SolarCity

Residential Commercial

© SolarCity

“By 2025, Everybody will be able to produce and store power. And it will be green and cost

competitive, i.e., not more expensive or even cheaper than buying power from utilities…”

Source: PV Magazine Global

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

Watson is an artificially intelligent software built to mirror the same learning process that we use to

inform decisions

13 Go to "Insert" tab in Ribbon to insert Header & Footer

Advances in robotics are changing how we manufacture goods and

replacing human labour

Robots are coming

HERE and are smaller, safer and can work among us

The new weapon in the battle against downed power lines

Which shouldn’t come as a surprise given the media attention

Sending machines to risky human environments

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

The Industrial Internet brings together brilliant

machines, advanced analytics and people to

eliminate any unplanned downtime

Cheap and advanced sensors

Smart meters

Real time information

BIG data

Machine Learning

Dynamic customer segmentation

Personalized messaging

Better customer experience

Behavioral nudges

Accurate Supply-Demand Forecast

Putting it all together

Virtual and augmented reality is revolutionizing the way we live,

work, play and learn

Revolutionizing knowledge and skills

transfer using Virtual and Augmented reality

© DAQRI, LLC

DAMAGE ASSESSMENT

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 2025

2025

Today 2020

Short term? Longer term?

The impact of electric cars has a material impact on parking

Storage is still a challenge

We believe effective innovators replace myths with methods What does this mean for FORTIS?

Observable events

Patterns Trends System Dynamics

Be explicit about innovation ambition

1. Look beyond product innovation

2. Drive innovation from deep and unconventional insights

3. Focus on discipline

4.

We believe effective innovators follow 4 important principles

Innovation Ambition matrix

MARKET

S &

CU

STO

MER

S

70%

20%

10%

PRODUCTS & ASSETS

TRANSFORMATIONAL

ADJACENT

CORE

Building for sustainable breakthroughs

Easier to Implement Bolder Concepts Harder to Copy

Look beyond product innovation

Nest will not only play in the $3 billion global thermostat sector; it will help shape the $6 trillion energy sector

7 TYPES:

Sustained innovators leverage many types of innovation

Think Tanks

Influencers

Federal

Provincial

Municipal

Programs

Experts

Clients

Start-Ups

Partners

Vendors / Suppliers

Speak

Host

Sponsor

Attend

Innovative Companies

Government

Community

Member Firms

Competitors Investment Community

Incubators / Accelerators

Education institutions Thought Leaders

Organized Networks Conferences

Media

Engaging an innovation ecosystem

Staying current on new disruptive technologies requires active Ecosystem Management

•  How prepared is Fortis to this new age of disruption?

•  How can we build a sustained Innovation Engine?

•  Which specific exponential technologies are most likely to disrupt our industry?

•  How do we build a continuous sensing organization?

•  What Ecosystems do we need to build linkages to?

The impact of innovation is a function of the level of courage that we have (and our ability to execute).

By now you should be asking yourself

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

The Constructive Disruptor Experience Roadmap

Schedule a test drive

Get your headset and explore

(Oculus, Vive, Daydream)

Ask Watson a question on TED

Try a personal drone

Watch Westworld (Game of Thrones Content Warning)

Buy a Nest Thermostat

Buy a Philips Hue

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2015. For information, contact Deloitte Touche Tohmatsu Limited.

“All too often we...

...look for someone else to make the difficult choice or pursue the challenging route” ...shy away from making key investments and executing dynamic strategies” ...unwilling to accept short-term challenge for long-term opportunity” ...lack the necessary courage to make bold decisions in the face of uncertainty and risk”

ca.linkedin.com/in/terrysstuart

TERRY STUART Learn more at: www.exponentials.xyz

http://AgeOfDisruption.xyz Presentation code: FORTIS

Thank you!

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