The ten tenets of digital innovation

1. Eleven
Tenets of
Digital
Innovation
September 2017
PREPARED FOR CWIN 17
CAPGEMINI WEEK OF INNOVATION NETWORKS

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TENET 01:
INNOVATION IS A 2-SIDED PROBLEM

3. NEEDS OF THE
CONSUMER
A Better Life
Better Experiences
Better Functionality
Better Relationships
Optimism
Self Esteem
Security / Pleasure
33

4. NEEDS OF THE
CONSUMER
A Better Life
Better Experiences
Better Functionality
Better Relationships
Optimism
Self Esteem
Security / Pleasure
Strategic Fit
Operational Fit
Where to Play
Right to Win
How to Make it Work
How to Make Money
Managing Risk / Reward
NEEDS OF THE
BUSINESS
44

5. 2-Sided Innovation
55

6. Analytics
Commercial Insight
Commercial Strategy
Assets & Capabilities Assessment
Portfolio Assessment
Organizational Dynamics
Financial Modeling
Building Competitive Advantage
Risk Assessment
Money
S O L V I N G F O R T H E B U S I N E S S
Consumer Behavior & Insight
Creative Inventiveness
User Scenarios
Product & Experience Design
Brand Strategy
Storytelling
Prototyping
Facilitation
Magic
S O L V I N G F O R T H E C O N S U M E R
66

7. Great for the
Business
Money Magic
7
Great for the
Customer
7

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TENET 02:
AS YOU SEARCH FOR INSPIRATION,
LOOK DEEPER AT THE UNDERLYING
NATURE OF YOUR BUSINESS.

9. Why?
Thinking this way lets you
cross-pollinate and pull
inspiration from other
categories.
F212 Diego Capability Work Session / January 2015 99

10. Take banking for instance.
We make money by managing
money and transactions.
But that’s not actually how we grow the business.
We grow through our
ability to facilitate decisions.
F212 Diego Capability Work Session / January 2015 1010

11. Doctor
F212 Diego Capability Work Session / January 2015 11
Decorator Guidance
Counselor
BankerRealtor
11

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15. TechCrunch on why software gives
better help with financial decisions
15

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TENET 03:
EXPECTATIONS KNOW NO BORDERS.

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The hedge
fund and
the pizza
guy.
10 TENETS OF DIGITAL TRANSFORMATION

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TENET 04:
TREAT SERVICE AS A TWO WAY STREET

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Find that sweet spot where consumers feel
empowered and active, yet they’re giving
you a better head start toward serving
them, making it more efficient.
10 TENETS OF DIGITAL TRANSFORMATION

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TENET 05:
SMASH THE CLOCK

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One of digital’s greatest
gifts to customer service is
making it asynchronous.
10 TENETS OF DIGITAL TRANSFORMATION

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TENET
06:EARN YOUR DATA

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Data
helps me
serve you
better
10 TENETS OF DIGITAL TRANSFORMATION
Data
helps me
sell you
better

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Media paradigm:
.
10 TENETS OF DIGITAL TRANSFORMATION
Paid Owned Earned

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Think about your data this way too.
.
10 TENETS OF DIGITAL TRANSFORMATION
Paid Owned Earned

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TENET 07:
LOOK FOR THE
ONE DIFFERENCE
THAT MAKES
ALL THE DIFFERENCE

27. Introduction to Fahrenheit 212 27

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A two-sided problem:
10 TENETS OF DIGITAL TRANSFORMATION
“Hmmm…what’s
my balance? Hey Siri,
call the bank”
“The sound of a
ringing phone is
the sound of money
flying out the door”

29. "Customers' expectations when it comes
to mobile banking are growing every day,
and at Citi we want to create remarkable
experiences that surpass them," said
Heather Cox, Chief Client Experience,
Digital and Marketing Officer, Citi Global
Consumer Banking. "Customers want
fast and simple access to their account
information, and Citi Mobile Snapshot is
the latest example of how we are finding
new ways to deliver."

30. A big shout out for organizational bravery in digital.
“Wait…you mean this
highly sensitive
information will not
always be gated behind a
password? What the hell
are you smoking?”

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TENET 08:
CRACK THE WOW & THE HOW

32. The information contained in this document is proprietary.
Copyright © 2016 Capgemini. All rights reserved.
The How
A new technology platform uniting
products & business units.
A new revenue sharing agreement
and incentive scheme among
division heads.
Gamified staff training.
A revolutionary algorithm and piece
of IP, integrating every product and
adjusting terms on the fly.
The Wow
Customer’s next decision
improves all that came before.
Bank loyalty realized by aligning
it with human loyalty.
Ethereal effect made visual.
Transformational new
sales tool on the floor.
Mosaic design metaphor.

33. The information contained in this document is proprietary.
Copyright © 2016 Capgemini. All rights reserved. 33
The engine that makes Mosaic work is an algorithm Fahrenheit designed to do things things that
were previously slow, manual and impossible in a real time sales moment on the branch floor:
1. Calculate the current lifetime profitability of a customer based (# of products x length of relationship x assets
in the bank).
2. Calculate the incremental lifetime profitability unlocked by adding any combination
of additional products to their current product mix.
3. Create a virtual common currency across products with entirely different business models.
4. Using that currency, calculate the ‘give back’on customer’s current products to entice adding new ones.
5. Capture learning on what ‘give back’ magnitudes drive conversion and ROI
6. Translate all this background math into a simple dynamic real time visualization of customer benefit in
adding new products (e.g., rate drop on current products, new perks, etc)
7. Integrate to back office allowing mass scale, instantaneous reset of existing contracted terms
with no loan officer approvals required.
Designing the killer algorithm
Template

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Sometimes the how means a leap of
technology, a mind-boggling algorithm,
or lots of investment.
But it can equally be low tech or no tech –
like a new way to think, a simple change to
consumer behavior, or a policy tweak.
10 TENETS OF DIGITAL TRANSFORMATION

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TENET 09:
DIG FOR COMPETITIVE ADVANTAGE
AT THE INTERSECTION OF DIGITAL,
PHYSICAL AND HUMAN ASSETS.

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TENET 10:
NEVER FORGET THAT
DIGITAL IS A ‘HOW’
NOT A ‘WHAT’

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Success starts with intent.
Defining the what.
Aka, Innovation Strategy.
What does better really look like for my consumers?
What commercial levers am I out to move? Is this about customer
acquisition, retention, lifetime value, cross-sell?
What are the big underlying problems to solve
rather than just symptoms and nuances?
10 TENETS OF DIGITAL TRANSFORMATION

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Don’t just do ethnography on
your customers. Do an
ethnography on the business
itself, and how digital can
transform it.
10 TENETS OF DIGITAL TRANSFORMATION

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And BTW,
If your digital brief says the
goal is friction reduction, tear
it up and start over.
Of course you want that. But that’s table stakes.
Aim higher. Get more strategic.
And more specific about what right looks like.
10 TENETS OF DIGITAL TRANSFORMATION

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TENET 11:
THERE IS NO 11TH TENET.
LESS REALLY IS MORE.

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Ten Tenets of Digital Innovation
01 Innovation is a 2-sided problem.
02 Look at the deeper nature of your business.
03 Expectations know no boundaries.
04 Treat service as a 2-way street.
05 Smash the clock.
06 Earn your data.
07 Find the one difference that makes all the difference.
08 Crack the wow and the how.
09 Blend digital, physical and human.
10 Remember, digital is a how, not a what.