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Igniting growth through innovation: disruptive trends

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At the Igniting growth through innovation retreat, EY invited a panel of thought leaders to discuss three disruptive megatrends that are driving today’s innovation and altering corporate strategy.

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Igniting growth through innovation: disruptive trends

  1. 1. Igniting growth through innovation Executive retreat — 27-28 April 2015 Disruptive trends drive innovation by making new forms of value creation possible. These trends, particularly where they intersect, create threats and opportunities. EY invited a panel of thought leaders to discuss three disruptive megatrends that are driving today’s innovation and altering corporate strategy. Disruptive trends driving innovation David Jensen Global Innovation and Digital Strategy Leader, EY Stefan Heck Consulting Professor, Stanford University Tammy Erickson Executive Fellow, London Business School Thought Leader Insights Digital future Resourceful planet Future of work • We are living in the “age of innovation.” Companies must put innovation at the heart of their purpose. • The driving force behind innovation is the proliferation of digital technologies and data. • The impact of technology and data will accelerate as devices and sensors become connected – today, only 1% of the things that can be connected to the internet are. • Digital will affect companies in all sectors. Those that hesitate may be disrupted before they are ready. • The art of innovation is around activation – leveraging analytics, data and technology to exploit customer and operations opportunities. • Today’s economy utilizes assets and resources very inefficiently (e.g., autos are parked 96% of the time on average). • New materials, technologies and business models will greatly improve asset utilization. Combining these will create massive gains in asset and resource productivity (e.g., ACES: autonomous, connected, electrified, shared transportation). • Gains from innovation in renewable energy may reduce the cost of power to an almost negligible price in the next decade. • Changes in transportation, infrastructure and energy systems will disrupt those sectors and will have significant implications for the economy (e.g., leveling real estate prices). • The organization of work will change from role-based to task-based. • Fixed-place, fixed-time work will give way to more flexible arrangements. • Real-time coordination of work will replace scheduling and planning. • Organizations will need to use values and meaning to engage discretionary workers. Meaning is the new money. • Organizations will look for talent differently, focusing on skills rather than credentials. • Iconic companies will be those that can leverage intelligence to create value. Trend intersections • Many of our perceived resource constraints will be relieved by asset and resource efficiency driven by data, intelligence and connectivity. • Digital is changing resource requirements by enabling the substitution of virtual for physical products. • Digital is a key enabler in the shift in productivity and asset utilization – allowing us to share those assets and operate them autonomously and remotely. • The resource environment, workplace and supply chain will be shaped by increased levels of coordination. • Digital technologies are enabling people to work at places and times of their own choosing, for one employer or many. • Sustainability has become an increasingly important factor in attracting and managing talent. • Digitization and automation will replace some jobs, but will also create new jobs requiring new skills. Do you have business strategies for a digital world rather than digital strategies? Are you prepared to engage talent on a more flexible, task-oriented basis? Is innovation at the core of your business or is it an adjunct to your business? How will you attract, motivate and engage discretionary employees? How will you leverage technology to build and manage global ecosystems as part of your innovation strategy? What is your action plan to take advantage of the new energy sources? Do you need to appoint a chief energy and resources officer? Do you have the right alliances and partnerships to accelerate growth through innovation? How will revolutionary changes in asset utilization impact your business? Your supply chain? ?Key questions for organizations
  2. 2. Igniting growth through innovation Executive retreat — 27-28 April 2015 Disruptive trends driving innovation Connect to additional content on disruptive trends: Digital future Resourceful planet Future of work “ Tools of innovation are being democratized, and this is as fundamental as the shift from a capital-intensive to a knowledge-intensive economy.” “ The sources of profit are bound to change for all industries. Winners will be those that get ahead of the game and shape the shift.” “ Rapidly increasing pace of change seems inevitable – innovation, as a capability, will rule.” “ We are ‘5 minutes into the movie’ about innovation.” “ A fundamental inefficiency in the way we use many of our resources sets the stage for major disruption and business opportunities.” “ In the past we looked at market size and capital investment. In the new world, it is about impacting markets with highly underutilized assets.“ “ The future will bring great improvements in the productivity of assets, made possible largely through data, analytics and the matching of supply and demand.” “ Valued work cannot be forced ... it must be discretionary, and this necessitates purpose and vision that motivate the workforce.” “ Shift to task-based work is intriguing and will be a game-changer!” “ Skills badges will be the new labor currency.” “ Task orientation and discretionary work are going to become the norm. The Uber of work will be the next US$40 billion idea.”• Watch thought leaders discuss disruptive trends and their interactions: • David Jensen • Tammy Erickson • Stefan Heck • View a visual summary of each trend and its interconnection • See the social media account of the disruptive trends fireside chat on Storify • Watch an animated recap of the session • Take a deeper dive into megatrends by accessing the EY Megatrends 2015 report  Digital image created during the session EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. ©2015 EYGM Limited. All Rights Reserved. EYG no. EX0285, ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com Attendees React

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