2016 service improvement and innovation in universities · page 2 thinking outside the quad:...

Thinking outside the quad: Insights from non-university service innovation

2016 Service Improvement and Innovation in Universities


11-12 August 2016


CloudDigital economy

Robotics

Disintermediationtransparency

All about me

NowConscious of power

lang

uage

Social

Expe

rienc

e

Honesty

Age

default

Convenience Contextual Arti

ficia

l in

telli

genc

etime

New Markets

Internet of things

Soph

istic

ated

Con

nect

ed

Freedom

The world now is changing more and faster than ever



There are 3 forces of disruption that are changing business models across industries

Three ‘Forces’ of disruption

TechnologyRecognised as a disruptive force since the beginning of history, we think about how the Internet of Things, Virtual Reality, Artificial Intelligence and robotics will play their role

GlobalisationWith geographic boundaries having a diminishing effect on buyers and sellers, market complexity will increase, as will the demand for flexible business models.

DemographicsBirth rates in Africa and India will continue to change the face of global supply and demand. Ageing populations, Urbanisation and Migration will all play their role in shaping economies

Source: EY Megatrends report – The Upside of Disruption 2016


Is every industry now your industry? What intelligence will we need to create

a smart future?

When machines become workers, what

is the human role?

How will individual behaviour impact

our collective future?

In a fast changing world, can cities be

built with a long-term perspective?

With growing health needs, is digital the

best medicine?

Can innovation make the planet resource

rich instead of resource scarce?How will you change buyers into

stakeholders?

… and resulting in 8 megatrends



If you think you won’t face disruption, it’s not because you won’t – it’s because you don’t know yet how it will happen

Smart health38% reduction in the cost of patient outcomes with AI diagnosis

Smart citiesIn NYC, predictive analytics saves 50% more families from homelessness

Smart Transport7% reduction in fuel consumption with autonomous vehicles

Smart homeBy 2020, the world will have 700 million smart meters installed, over half in China

Smart citiesIn 2015, smart cities used 1.1 billion connected things, by 2020, 9.7 billion

Smart energy20% of energy will no longer be stolen with smart grids

Smart healthIn 2015, 165,000 mobile health apps (x2 than 2013)



Responding is critical

Why responding is critical?

1. Everyone is affected

2. It’s easy to underestimate the pace of change

3. Smart strategy and execution are not enough


An unprecedented reinvention of work is coming; jobs that are truly untouched will be the exception rather than the norm

Uber built an innovative ecosystem around already existing capabilities to create a delightful customer experience

Moving from the gig economy to the machine economy

Today, a worker displaced by globalisation may freelance as an Uber driver.

In the future, many more office workers will be displaced by AI – but they won’t have the option of becoming freelance drivers if the ride-sharing platform of the future uses driverless cars.


Price/ Cost

Quality / Experience

New, Different Industry paradigm

Shifting the paradigm mindset

Disrupting business models · From ‘mobile handsets’ to ‘smart phones’· Digital camera functionalities embedded in

smartphones, iPads with you anywhere, anytime

· iTunes – digital content (music, movies....) and virtual universities

· iPad – Post PC world

How to make the wrong strategic bets!

Organisations like Apple have redefined expectations: they

offer well-designed products that are easy to use and

integrate seamlessly into creative professional life

Question: Are you thinking as service leaders and innovators or are you playing the incremental game?


Identify a big problem worth solving► Pollution

Create a new value chain► From engines to

batteries

Change the supply chain► Who needs dealerships

when you can buy direct?

Redesign the ecosystem► A new fueling experience

Innovation is the art of making hard things easy and creating new viablebusiness offerings

6 categories of innovation:

• Business model (platform-based / ecosystem led)

• Managerial

• Product and Services

Innovation, including service innovation has to be both incremental and disruptive

• Digital innovation

• Process

• Supply Chain

Example of TESLA ecosystem approach


Service innovation should not be limited to your core business (Sustaining)

Example of a bank


“Pay as you live” is redefining the Health Insurance sector

Example of health insurance

Other examples: pay as you drive, pay as you fly ….. Pay as you learn?


Robotics - Automation of current (human) process by machines


Robotics - Early adopters bank-focused but insurer interest accelerating rapidly


Gamification in service innovation

“The application of game elements and design techniques to non-gaming business problems” (usually around ease of use & engagement)


Price/ Cost

Quality / Experience

New, Different Industry paradigm

Shifting the paradigm mindset

Disrupting business models · From ‘mobile handsets’ to ‘smart phones’· Digital camera functionalities embedded in

smartphones, iPads with you anywhere, anytime

· iTunes – digital content (music, movies....) and virtual universities

· iPad – Post PC world

How to make the wrong strategic bets!

Organisations like Apple have redefined expectations: they

offer well-designed products that are easy to use and

integrate seamlessly into creative professional life

Question: Are you thinking as service leaders and innovators or are you playing the incremental game?


EY’s purpose:

Building a better working world

Thank you

2016 service improvement and innovation in universities · page 2 thinking outside the quad:...

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