Mark Priestley

1. Why experimentation is the new
target operating model

2. Why experimentation is the new
target operating model behaviour

3. Adaptive Lab are
strategic design
and delivery
partners
for ambitious
product teams.

4. In the next 10 years,
40% of the Fortune 500 companies
will be gone.
John Olin School of Business, Washington

5. Since 2003,
236 $bn software companies
have been founded.
Atomico

6. Source: Accenture and CB Insights
$M invested in Fintech companies worldwide
2014201320122011201020092008
0
2,000
4,000
6,000
8,000
10,000
12,000
Disruption
creates
opportunity,
which attracts
investors.

7. technology
behaviours
competitors
regulation
changing

8. technology
behaviours
competitors
regulation
changing

9. Smart everything, ubiquitous
connectivity, limitless storage …

10. Cloud computing, PaaS,
infrastructure as code, Bitcoin …

11. technology
behaviours
competitors
regulation
changing

12. There were 179.6m contactless
transactions in March this year.
Up 184.0% from the previous year.

13. In January 2016,
more than
$1,000,000,000
was sent using
Venmo.

14. A difference in
what a customer
expects
perceives
and

15. perceives
A difference in
what a customer
expects
and
creates a
customer gap

16. technology
behaviours
competitors
regulation
changing

18. 18

19. These new
companies
typically share a
common set
of characteristics

20. Small, empowered teams
Focus on doing one thing well
Modern tech stack and approach
Outcome focused
User centred
Data driven
More willing to take risks
These new
companies
typically share a
common set
of characteristics

21. technology
behaviours
competitors
regulationchanging

23. [Even] though it appears to be some obscure European Commission
directive about application programming interfaces, it’s not about
technology.
It’s about the future of banking and it’s really important for banks to
take advantage of it.
Dave Birch - Director, Consult Hyperion, on PSD2 and XS2A
PSD2

24. What do these changes
mean for banks?

25. Banking is necessary.
Banks are not.
Bill Gates - The ex-Microsoft guy

26. Banks are
responding…

27. • Transformations
• Innovation Labs
• Digital diversification
• Internal agencies
• Venture Capital / Acquisitions
• Accelerators
• Beta banks
Banks are
responding…

28. • Transformations
• Innovation Labs
• Digital diversification
• Internal agencies
• Venture Capital / Acquisitions
• Accelerators
• Beta banks
Banks are
responding… but often focus on
changing what
they’re doing,
without
addressing the
how or the why.

29. 69% of banking executives didn’t
believe retail banks were able to react
quickly enough to changing consumer
needs.
Adaptive Lab / Research Now

30. Depending which bank you talk to, they
will tell you that anywhere between 50%
and 90% of their IT budget is being
driven by regulatory changes. It makes
change very difficult.
Anonymous banking exec

31. 79% of banking executives felt their
leadership weren’t knowledgable about
digital.
Adaptive Lab / Research Now

32. This is the third agile transformation I’ve
been through in the bank. This time we
might be able to make it stick.
Anonymous banking agile lead

33. To navigate uncertainty
you have to understand
your environment.
The best way to do this
is to experiment.

34. Experimentation
is not
trial and error.

35. Eight
experimentation
enablers.

36. An ability to
launch stuff quickly,
at low cost.
1

37. Smart thinking
around ways to reduce risk.
2

38. Easy access to customers.3

39. Funding for products,
not projects,
or programmes.
4

40. Backlogs rather
than roadmaps.
5

41. A decision making process
built around testing
hypothesis.
6

42. The ability to collect,
process and use data.
7

43. A supportive culture and
governance process.
8

44. A supportive culture and governance process.
A decision making process built around testing hypothesis.
The ability to collect, process and use data.
Backlogs rather than roadmaps.
Funding for products, not projects, or programmes.
Easy access to customers.
Smart thinking around ways to reduce risk.
An ability to launch stuff quickly, at low cost.

45. Experimentation is an
organisational behaviour.
Encouraging and enabling it is key
to real transformation.

46. You need to setup
and organise
so that you can
do as many
experiments
per unit of time
as possible.
Jeff Bezos - Amazon