Capgemini Insights & Data Innovation Greenhouse

Insights and Data Innovation Greenhouse
....disrupting “Business As Usual” One Innovation at a Time

Why is it Often Challenging to Harness
Disruptive Technologies?

3Copyright © Capgemini 2015. All Rights Reserved
Insights and Data Innovation Greenhouse | June 2015 | Financial Services
Disruptive Technologies are Rapidly Changing the Way
Financial Services Organizations Operate
Big and Fast Data
Cloud
Mobile
Social
Media Reduce operating costs
Increase margins
Identify new sources of revenue
Reshape strategy to delivery of
products/services
FS organizations are seeking the means to harness the disruptive potential of these new technologies

Powered by Vast Amounts of Data, They Have All the Raw
Materials Available to them to Innovate
Financial services companies should be looking to emerging big
data tools as the answer to finding hidden consumer sentiment
on a real-time basis
– Putting Big Data to Work for Financial Services Companies“
“
The visionary bank needs to deliver business insights in context, on
demand, and at the point of interaction by analyzing every bit of data
available
- Financial Services Data Management: Big Data Technology in Financial Services
“
“No other industry has more to gain from
leveraging Big Data than the financial services sector
– Market Watch, Big Data in Financial Services Industry
“
“
82% of those surveyed in the Chartered Institute of Loss Adjusters believe
those insurers that do not capture the potential of big data will become
uncompetitive
– The Big Data Rush
“
“
“
“Part of the answer is investing in research and development is making better use of the
vast amount of data available and perhaps looking at solutions with a greater degree of
innovation
- President of the Federation of European Risk Management Associations

But They Often Find It Challenging to Move Ahead of the
Incremental Change
Getting
business
and IT to
collaborate
can be difficult
and
time consuming
Operating
procedures
constrict
cross-pollination
of ideas
Good ideas are
missed or
abandoned
because
internal pressures make
adopting innovative
ideas impossible
Often a painful
process
of exploration and
experimentation that
results in failure
Struggling to think
outside the
boundaries of
normal day-to-day
activities Inherent cost
and risk
Risk of reinforcing
existing
thinking or
encountering
defensive reasoning

Innovation Greenhouse:
Bringing Financial Services Innovation to Life

Co-Innovation: A Collaborative Approach to Breakthrough
Innovation
The co-innovation model enables two groups to draw on subject matter expertise they may not have in their
respective organizations, get an external perspective and share risks and investments.
Incremental
Thinking one step
ahead
Transformative
Thinking two steps
ahead
Paradigm shifts
Thinking three steps
ahead
Thinking out of the boundaries of normal day-to-day activities in order to bring about rapid change to
processes and procedures. Innovation may be categorized into three types:

How Co-Innovation Breaks Down Innovation Barriers
Collaborative creation of ideas
Mobilization of expertise to explore
potential designs
Develop solutions that uniquely reflect
the client’s specific requirements
Firms achieve a greater degree of certainty of potential outcomes for ideas without needing a fully fledged
pilot. They gain flexibility for ideas to be refined or discarded before a significant investment is made.

Bringing Co-Innovation to Life
Three steps to innovation
Planting
Nurturing
Growing
The Insights & Data Innovation Greenhouse provides a collaborative facility to plant, nurture, and grow
data-centric solutions for real-world business problems across the spectrum of financial services.

3 Steps: 1 Goal
1
Step
Plant the Seeds…
2
Step
Nurture Early
Growth…
3
Step
Grow to Maturity…
Identification and definition of
a real-world business
problem impacting the client
Completing the business
case and prototyping of
the solution
Developing the
operational solution

Typical Use Case Scenarios for Financial Services Firms
Create and
Assess
Formulate &
Execute
After an initial ideation session on risk assessment challenges,
Capgemini Insurance Risk subject matter expert (SME) works with
the client to determine the risk scenarios.
A list of risk anomalies are enumerated based on risk data sets
(internal and external data). The Capgemini Insurance Risk SME
identifies key data sources required to produce real-time Risk
Assessment reporting dashboards on the data sets.
Based on the decision criteria given, Capgemini builds a Proof of
Concept (PoC). The PoC is demonstrated to the insurer as
feedback is important to shape the next stage development.
Client Use Case 1
Need to determine “customers at risk and device
retention strategies” in light of the new UK pension
and annuities regulations
Client Use Case 2
For risk based pricing, commercial underwriters
need to perform a risk assessment on an individual
property rather than on a portfolio basis.
After an initial ideation session, Capgemini works with the client
to determine the behaviors exhibited by customers anticipating
to take pensions out of the company.
A set of profiles is built based on potential actions of customers
in each category. A list of behaviors is enumerated based on
both internal as well as external data. For each item, the client
is asked to determine the data range for each criteria to place a
customer into these profiles based on their experience and
historical data.
Based on the decision criteria given, Capgemini builds a small
demo system as a validation tool. A Proof of Concept (PoC) is
only built once this tool gains support.
Define &
Co-Invest

Jumpstarting the Process

Jumpstarting the Co-Innovation Process
Day – 1
Rapid
Ideation
Sessions
Day – 2
Crowd
Sourcing
Day – 3
Hackathon
Sessions
Rapid
Prototyping
Scan, empathize, define,
ideate, and prototype
Create a buzz of interest,
get the best ideas and
drive internal buy in
Create “minimum viable
products” and deliver
functioning demos
Test the idea ‘live’

Capgemini’s Co-Innovation Process
Innovation frameworks and accelerators
Create and
Assess
Define & Co-
Invest
Formulate &
Execute
Package &
Present
 Refine innovation
opportunity
 Crowd Sourcing
 Hackathon Sessions
 Co-Investment
agreement
 Create/Scope opportunity
 Rapid Ideation sessions
 Concept creation
 Opportunity assessment
 Prioritize and select Use
Cases
 Develop and select
design
 Concepts for
execution
 Pilot and Prototype
 Build a working model
 Packaging
 Improve and transition
There are a range of frameworks and accelerators that can be used to support the delivery of the
Co-innovation process:

Benefits of Co-Innovation Through the
Greenhouse

Benefits of Co-Innovation Through the Greenhouse
Time to Market
Shared Risk
Lower Implementation Costs
Market/Productivity Impacts
1
2
3
4

Explore More!
Insights & Data Innovation Greenhouse Brochure
for Financial Services
Visit us at: www.capgemini.com/FSinnovationgreenhouse
To learn more, contact us at businessinfo@capgemini.com

The information contained in this presentation is proprietary.
© 2015 Capgemini. All rights reserved.
www.capgemini.com
About Capgemini
With more than 145,000 people in 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2014 global revenues
of EUR 10.573 billion.
Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business Experience™, and draws on Rightshore®,
its worldwide delivery model.
Rightshore® is a trademark belonging to Capgemini

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