Vision to Reality: Scottish Water’s Innovation Challenge - George Ponton

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Business Technologie

Social Business Forum 2011
Milan

Vision to Reality:
Scottish Water’s Innovation
Challenge

George Ponton
Head of Research and Innovation

Outline

•  Scottish Water Context

•  Scottish Water Vision

•  Innovation as a Social Process

•  Our Journey So Far

A Brief History

Statutory Body Formed in 2002

Merger of 3 authorities

£4bn of investment delivered

Improved Water Quality

Improved Wastewater compliance

Reduced Operating Costs

Reduced Customer Charges

Context
•  4th largest water company in
UK
•  £1bn annual turnover
•  5 million customers
•  2.1 billion litres of water per
day supplied
•  1 billion litres of wastewater
collected and treated
•  47,000 km of water pipes
•  50,000 km of sewer
•  1,837 wastewater treatment
works
•  270 water treatment works

Always serving Scotland

providing high quality affordable water

protecting and enhancing our environment

supporting Scotland’s communities and economy

We will recognise and support innovation

We will be innovative, seeking and developing new opportunities to drive
value and improved service

We will be innovative in delivering our vision

…How?

How can we mange the
flow of innovation?

Out with the Old

FreeFlow

•  Employee-orientated
suggestion scheme

•  Across the entire business

•  Formal method for submitting
Ideas

•  Evaluated by Senior Managers

COLLECTIVE ACTION THAT WILL RESULT IN !
THE IMPLEMENTATION OF GREAT IDEAS

Preparing to Launch

• Get Resource in Place

• Start Small

• Organic Growth

• Covert Communications

• Enthusiasts

Odd Behaviours

• Destructive Criticism

• Defensive Positions

• Entrenched Positions

Expanding the Network

• Overt Communications

• Internal Events – big & small

• Branded Merchandise

• Targeted Awareness Sessions

• Supply Chain Members

• Challenge Contests

Current Focus

• Licence to Innovate

• Deliver the Benefits

• Drive the Engagement

The Future

• Wider supply chain engagement

• Wider business engagement

• More Challenge Contests

• Customer Engagement

Conclusion

• It’s more work than you think

• Celebrate the early successes

• Keep it Fresh

• It’s worth it to drive engagement

• Make sure you are prepared to deliver

George Ponton
Head of Research and Innovation
george.ponton@scottishwater.co.uk

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Insurance IoT is a social good! Because: 🔵 Expected losses can be reduced structured programs with both real-time mitigation actions to solve a specific situation, and behavioral change mechanisms to promote safer behaviors (both in personal and commercial lines) 🔵 Rate can be matched to risks better: - Smaller and more accurate pricing clusters allow a large part of profiles to receive a lower rate - Even with the ability to price the individual probability of loss (cluster of one) the insurance foundation isn’t canceled (The risk of each policy will contribute to the expected losses of the portfolio; The premiums paid by many lucky policyholders will be used to pay the claims of the few unlucky policyholders who had an accident in a period of coverage) 🔵 IoT data can be used to increase the effectiveness and efficiency of the claim process, so improving the combined ratio ceteris paribus ⏩ Large part of the policyholders will pay less (and portfolios currently difficult to insure will become more insurable) Insurance IoT (and telematics) is not about providing a discount Insurance IoT (and telematics) is about creating economic value using the data and sharing part of this value with policyholders (and agents & brokers) An integrated holistic adoption of the IoT paradigm is a game changer for your insurance business and a social good: ◾ it allows to improve the availability and affordability of insurance coverages ◾while allowing the sector to write a profitable business Below you can enjoy a selection of best practices in both personal and commercial lines - written with some of the IoT Insurance Observatory members - that have already started to obtain results from their IoT business transformation journeys

Insurers' journeys to build a mastery in the IoT usage

Insurers' journeys to build a mastery in the IoT usage

Insurers' journeys to build a mastery in the IoT usage

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A DAY IN THE LIFE OF A SALESMAN / WOMAN

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Business Model Canvas (BMC)- A new venture concept

Business Model Canvas (BMC)- A new venture concept

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Insurers' journeys to build a mastery in the IoT usage

Insurers' journeys to build a mastery in the IoT usage

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Value Proposition canvas- Customer needs and pains

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It will be International Nurses' Day on 12 May

It will be International Nurses' Day on 12 May

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Vision to Reality: Scottish Water’s Innovation Challenge - George Ponton

1. Social Business Forum 2011 Milan Vision to Reality: Scottish Water’s Innovation Challenge George Ponton Head of Research and Innovation

2. Outline •  Scottish Water Context •  Scottish Water Vision •  Innovation as a Social Process •  Our Journey So Far

3. A Brief History Statutory Body Formed in 2002 Merger of 3 authorities £4bn of investment delivered Improved Water Quality Improved Wastewater compliance Reduced Operating Costs Reduced Customer Charges

4. Context •  4th largest water company in UK •  £1bn annual turnover •  5 million customers •  2.1 billion litres of water per day supplied •  1 billion litres of wastewater collected and treated •  47,000 km of water pipes •  50,000 km of sewer •  1,837 wastewater treatment works •  270 water treatment works

5.

6. Always serving Scotland providing high quality affordable water protecting and enhancing our environment supporting Scotland’s communities and economy

7. We will recognise and support innovation We will be innovative, seeking and developing new opportunities to drive value and improved service We will be innovative in delivering our vision

9. How can we mange the flow of innovation?

10. Out with the Old FreeFlow •  Employee-orientated suggestion scheme •  Across the entire business •  Formal method for submitting Ideas •  Evaluated by Senior Managers

11. COLLECTIVE ACTION THAT WILL RESULT IN ! THE IMPLEMENTATION OF GREAT IDEAS

12.

13.

14.

15.

16.

17.

18.

19. Preparing to Launch • Get Resource in Place • Start Small • Organic Growth • Covert Communications • Enthusiasts

20. Odd Behaviours • Destructive Criticism • Defensive Positions • Entrenched Positions

21. Expanding the Network • Overt Communications • Internal Events – big & small • Branded Merchandise • Targeted Awareness Sessions • Supply Chain Members • Challenge Contests

22.

23.

24. Current Focus • Licence to Innovate • Deliver the Benefits • Drive the Engagement

25.

26. The Future • Wider supply chain engagement • Wider business engagement • More Challenge Contests • Customer Engagement

27. Conclusion • It’s more work than you think • Celebrate the early successes • Keep it Fresh • It’s worth it to drive engagement • Make sure you are prepared to deliver

28. George Ponton Head of Research and Innovation george.ponton@scottishwater.co.uk