capgemini insights & data innovation greenhouse

Insights and Data Innovation Greenhouse....disrupting “Business As Usual” One Innovation at a Time

Why is it Often Challenging to Harness Disruptive Technologies?

3Copyright © Capgemini 2015. All Rights Reserved

Insights and Data Innovation Greenhouse | June 2015 | Financial Services

Disruptive Technologies are Rapidly Changing the Way Financial Services Organizations Operate

Big and Fast Data

Cloud

Mobile

Social Media Reduce operating costs

Increase margins

Identify new sources of revenue

Reshape strategy to delivery of products/services

FS organizations are seeking the means to harness the disruptive potential of these new technologies



Powered by Vast Amounts of Data, They Have All the Raw Materials Available to them to Innovate

Financial services companies should be looking to emerging big data tools as the answer to finding hidden consumer sentiment on a real-time basis

– Putting Big Data to Work for Financial Services Companies“

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The visionary bank needs to deliver business insights in context, on demand, and at the point of interaction by analyzing every bit of data available- Financial Services Data Management: Big Data Technology in Financial Services

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“No other industry has more to gain from leveraging Big Data than the financial services sector

– Market Watch, Big Data in Financial Services Industry

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82% of those surveyed in the Chartered Institute of Loss Adjusters believe those insurers that do not capture the potential of big data will become uncompetitive– The Big Data Rush

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Part of the answer is investing in research and development is making better use of the vast amount of data available and perhaps looking at solutions with a greater degree of innovation- President of the Federation of European Risk Management Associations

http://www.banktech.com/business-intelligence/putting-big-data-to-work-for-financial-s/240153177

http://www.banktech.com/business-intelligence/putting-big-data-to-work-for-financial-s/240153177

http://www.oracle.com/us/industries/financial-services/bigdata-in-fs-final-wp-1664665.pdf

http://www.marketwatch.com/story/big-data-in-financial-services-industry-market-trends-challenges-and-prospects-2013-2018-2014-02-24

http://www.ordnancesurvey.co.uk/about/news/2013/the-big-data-rush.html



But They Often Find It Challenging to Move Ahead of the Incremental Change

Getting business and IT to

collaboratecan be difficult

and time consuming

Operating procedures

constrict cross-pollination

of ideas

Good ideas aremissed or

abandoned because

internal pressures make adopting innovative ideas impossible

Often a painful process

of exploration and experimentation that

results in failure

Struggling to think outside the

boundaries of normal day-to-day

activities Inherent cost and risk

Risk of reinforcing existing

thinking or encountering

defensive reasoning

Innovation Greenhouse:Bringing Financial Services Innovation to Life



Co-Innovation: A Collaborative Approach to Breakthrough Innovation

The co-innovation model enables two groups to draw on subject matter expertise they may not have in their respective organizations, get an external perspective and share risks and investments.

Incremental

Thinking one step ahead

Transformative

Thinking two steps ahead

Paradigm shifts

Thinking three steps ahead

Thinking out of the boundaries of normal day-to-day activities in order to bring about rapid change to processes and procedures. Innovation may be categorized into three types:



How Co-Innovation Breaks Down Innovation Barriers

Collaborative creation of ideas

Mobilization of expertise to explore potential designs

Develop solutions that uniquely reflect the client’s specific requirements

Firms achieve a greater degree of certainty of potential outcomes for ideas without needing a fully fledged pilot. They gain flexibility for ideas to be refined or discarded before a significant investment is made.



Bringing Co-Innovation to Life

Three steps to innovation

Planting

Nurturing

Growing

The Insights & Data Innovation Greenhouse provides a collaborative facility to plant, nurture, and grow data-centric solutions for real-world business problems across the spectrum of financial services.



3 Steps: 1 Goal

1Step Plant the Seeds… 2Step Nurture Early Growth… 3Step Grow to Maturity…

Identification and definition of a real-world business

problem impacting the client

Completing the business case and prototyping of

the solution

Developing the operational solution



Typical Use Case Scenarios for Financial Services Firms

Create and Assess

Formulate & Execute

After an initial ideation session on risk assessment challenges, Capgemini Insurance Risk subject matter expert (SME) works with the client to determine the risk scenarios.

A list of risk anomalies are enumerated based on risk data sets (internal and external data). The Capgemini Insurance Risk SME identifies key data sources required to produce real-time Risk Assessment reporting dashboards on the data sets.

Based on the decision criteria given, Capgemini builds a Proof of Concept (PoC). The PoC is demonstrated to the insurer as feedback is important to shape the next stage development.

Client Use Case 1 Need to determine “customers at risk and device

retention strategies” in light of the new UK pension and annuities regulations

Client Use Case 2 For risk based pricing, commercial underwriters

need to perform a risk assessment on an individual property rather than on a portfolio basis.

After an initial ideation session, Capgemini works with the client to determine the behaviors exhibited by customers anticipating to take pensions out of the company.

A set of profiles is built based on potential actions of customers in each category. A list of behaviors is enumerated based on both internal as well as external data. For each item, the client is asked to determine the data range for each criteria to place a customer into these profiles based on their experience and historical data.

Based on the decision criteria given, Capgemini builds a small demo system as a validation tool. A Proof of Concept (PoC) is only built once this tool gains support.

Define &

Co-Invest



Jumpstarting the Process



Jumpstarting the Co-Innovation Process

Day – 1

Rapid Ideation Sessions

Day – 2 Crowd Sourcing

Day – 3 Hackathon Sessions

Rapid Prototyping

Scan, empathize, define, ideate, and prototype

Create a buzz of interest, get the best ideas and drive internal buy in

Create “minimum viable products” and deliver functioning demos

Test the idea ‘live’



Capgemini’s Co-Innovation ProcessInnovation frameworks and accelerators

Create and Assess

Define & Co-Invest

Formulate & Execute

Package & Present

Refine innovation opportunity

Crowd Sourcing Hackathon Sessions Co-Investment

agreement

Create/Scope opportunity Rapid Ideation sessions Concept creation Opportunity assessment Prioritize and select Use

Cases

Develop and select design

Concepts for execution

Pilot and Prototype Build a working model Packaging Improve and transition

There are a range of frameworks and accelerators that can be used to support the delivery of the

Co-innovation process:

Benefits of Co-Innovation Through the Greenhouse



Benefits of Co-Innovation Through the Greenhouse

Time to Market

Shared Risk

Lower Implementation Costs

Market/Productivity Impacts

1

2

3

4



Explore More!

Insights & Data Innovation Greenhouse Brochure for Financial Services

Visit us at: www.capgemini.com/FSinnovationgreenhouse

To learn more, contact us at [email protected]

https://www.capgemini.com/resources/insights-data-innovation-greenhouse-brochure-for-financial-services


http://www.capgemini.com/FSinnovationgreenhouse

mailto:[email protected]


The information contained in this presentation is proprietary.© 2015 Capgemini. All rights reserved.

www.capgemini.com

About Capgemini

With more than 145,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion.Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

Rightshore® is a trademark belonging to Capgemini

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