Summary of Step Change Commercialisation Workshop (29 July, 2014)
28 members and guests attended the video conference held in the Griffith Hack CBD offices in Brisbane, Sydney and Melbourne. With presentations of 10-15 minutes, questions and then a general discussion during which the attendees were asked to nominate 2-3 lessons that they would take back to their organisations. The group also discussed what we should do next as we explore what inhibits our organisations from being good at incremental/continuous improvement to achieving true step change/disruptive commercialisation of projects.
The presentations covered examples of disruptive projects that they had recently undertaken (Presentations 1-4) and communicating with employees to engage and align with disruption (Presentations 5-6).
Deloitte – Digital Disruption (J Bender)
Deloitte has published a white paper titled “Short fuse/Big Bang” which outlines the amount of revenue that has been disrupted by the effects of emerging digitisation.
5 new trends were also identified:
- Unbundling of services- rather than sourcing from one, customers now acquire services from a number of suppliers – each providing their nitch
- Everything is on demand – flattening of supply/value chains/structures
- Prosumers – user generated content/builds their own offering
- Trust economy – a key ingredient in the decision process – shipping/credit cards online, trust the views of others – social advocacy
- Scalable learning – barriers are low and imitation is easy – competitive advantage is now to build on momentum
NRMA – Home Emergency Services (D Morrison)
NRMA’s disruption was to provide a peace of mind/service that challenged the thought process when things go wrong. One phone call to access any tradesman required.
They needed to build trust and equity in the subscribers but had a favourability/familiarity with their members; timing of offer become critical.
Lessons learned and what would you do next time:
- Develop a better sales pipeline
- Challenge more rigorously the status quo
- Use the role of the supplier better by keeping them closer, use their resources more and challenge them more often to come up with solutions
- In the plan try and stay 90 to 180 days ahead of what is required and don’t fall behind as extremely difficult to catch up
Dulux – Building Disruption into Daily Business (G Spowart)
In any market there is a rule of three: the market leader, the follower and the disruptor. Dulux are embarking on enhancing their market leadership position while also being the disruptor.
Where to Innovate?
They used this to map what was happening in their market, where the disruptors were and who they were (the retailers and digital start-ups). They are forming six disruptive teams that will be embedded in the business units.
WestPac – Become the Clearing House for Superannuation of Choice (E Dobson/M Baldwin)
The opportunity arose in 2005 when the option to choose your superannuation fund was legislated and the challenge arose of using their capability (using their health payment archaic systems as a basis to collect individual superannuation contributions from employers) to become the industry clearing house as the intermediary between employers/employees and superannuation funds of choice. They positioned themselves as the thought leader, participating in industry forums taking the role of the employer not the fund. Provided how it was going to work and guided the industry as to how to overcome the risks identified.
Their keys to success:
- Continual lobbying of senior management/sponsors, keep them on the journey – no surprises
- Utilise the knowledge and expertise of the whole team, ensure very strong governance
- Continual conversations with the customer, the best customers are those that ask questions that enable you to identify where you need to go
- Learn to manage the noise in the market
- Have vision and commitment, passion & drive to see it through, retaining flexibility and agility to change as you go
BlueScope Steel – Communicating the Why and Employee Alignment/Engagement (G Coromandel)
BlueScope Steel realised that they were successful in optimising/incremental innovation but not so in step change. They have identified the following elements as being critical for success:
- Strong business drivers (they didn’t often have a strong articulated strategy)
- Good story around differentiation
- The right product leadership to sell the big picture with a broad set of skills (technical ability & strong communication)
- Governance , engagement & alignment.
SunCorp Commercial Insurance – Communicating the Why and Employee Alignment/Engagement (S Close-Debais)
What works – action + workshops – participation & contribution.
Run under a CEO challenge – sets a statement – “if CEO for a day, what would you do, what would you implement. Use a Crowd Sourcing tool to lodge ideas – set up workshops around design thinking. From 146 ideas, select top 30, bring in Innovation Champions for a day to come up with the top 5 ideas. Develop prototypes and build to a conceptual idea with the customer at the forefront.
They then have to pitch ideas to Leadership team (Dragon Den Style), CEO provided a budget of $150,000. Three got up for the $’s.
We thank Griffith Hack for hosting these groups. Next workshop will focus on understanding trends and customer feedback and the use of these in disruptive innovation. Date: Wednesday 12 November 9.30am – 12.30pm.
If you are interested in being involved in these workshops please contact John Maclay at firstname.lastname@example.org or +61400457182.