Innovation & digital disruption in professional services
About Us
Matthew Ho
● Next Digital, Deloitte, Airbnb, Native Tongue● Tapmint: Innovative mobile/web apps● Writing ebook: “Start your digital marketing career” ● Twitter @inspiredworlds
Head of Product Development at Tapmint
About Us
Matthew Ho
● Previously at Deloitte ● Senior Tax Accountant in Financial Services Industry Group● Graduated B.Business (Accounting) / B.Laws (Honours)● Honours Thesis: Financial Statement Regulation & Sarbanes Oxley
Head of Product Development at Tapmint
Content
1. Digital disruption2. Why innovate? 3. Disruption in services
a. Financial b. Professional servicesc. Accounting
World’s largest taxi company owns no taxis
World’s largest media company creates no content
World’s largest accom provider owns no real estate
World’s largest retailer has no inventory
Why do you want to innovate?
● Scale existing services● Grow customer base● Create new business units / services● Disruptive competition● Innovation = growth
Digital disruption in financial services
● Physical branches declining● Customer experience mostly mobile & online● Big data● Predictive analytics ● Non-financial competitors
○ Tighter customer relationships○ Selling financial products○ QANTAS○ Woolworths
Digital disruption in financial services
● Alternative forms of financing○ P2P lending: SocietyOne, Kiva ○ Short term loans: Nimble○ Crowdfunding: Kickstarter, Pozible○ Angel investment: AngelList, Our Crowd
Venture Crowd
P2P payments in messenger apps
Digital disruption in professional services
● Pick and choose services online● Online marketplaces and directories ● Global marketplaces
○ Elance-Odesk○ Freelancer
Digital disruption in professional services
● Local services marketplaces ○ Oneflare○ Service Seeking○ Airtasker○ Taskrabbit○ Freelancer
Odesk-Elance in Australia
● Top online hiring country per capita● Second largest client market by total value
globally● Australians spent $60million in 2013● Top skills being hired
○ web design○ development○ writing○ online marketing○ admin
Odesk-Elance in Australia
● New skills people are seeking○ Electrical engineering○ Data scientists○ 3D modelling○ Lawyers ○ Accountants○ Financial Analysts
Digital disruption in professional services
● Professional services marketplaces○ Consultants: Expert360○ HR: RecruitLoop○ Legal: LawPath, Legal Vision○ Internal & shopfront: etaskr
Digital disruption in professional services
● Digitisation of documents○ Archiving ○ Search○ Law & accounting textbooks / reports online○ Remote collaboration○ Electronic Discovery○ Virtual data rooms
Digital disruption in professional services
● SAAS (Software As A Service) makes the job easier○ Quoting: Quoteroller, Bid Sketch ○ Billing: Hiveage, Xero○ E-signature: EchoSign, RightSignature○ Time keeping: Harvest, Lets Freckle○ Collaboration: Yammer, Slack, Trello
Digital disruption in accounting
● Software moving from desktop to the cloud● Xero, MYOB, SAASU, Freshbooks, Invoice2Go● More data available ● More points of integration
○ Bank accounts○ CRM○ ERP○ Payment gateways○ POS○ eCommerce
Digital disruption in accounting
● 66% of SME’s would replace services accountant currently performs with cloud based services
● 50% of SME’s would change accountants if they didn’t embrace a cloud offering
Digital disruption in accounting
● Tasks most easily automated and replaced by software○ Manual data entry○ Book keeping○ Year-end financial reporting ○ BAS lodgements○ Payroll○ Financial analysis
Accounting software growth of Xero.com
Case study: Deloitte Private
● Services ○ Private companies○ Families & individuals○ Entrepreneurs
● Work mix○ 70% compliance work ○ 30%: strategic business advice
Case study: Deloitte Private
● 18,000 Indian workforce ○ tax & financial compliance ○ admin, business development, marketing
● 3,000 dedicated to Australian office● Move to higher value added services
Deloitte Private Connect - SAAS
Case study: Deloitte Private
● Launched Deloitte Private Connect (DPC)○ SAAS product for accounting○ Compare your business data against
aggregate data of 13,000 clients○ Shift from manual compliance activities
which are automated○ Provide higher value added advisory
services on top of DPC data
Case study: Deloitte Private
● Launched Deloitte Private Connect (DPC)○ Built on Force.com platform○ Starts at $599/month model○ Shift from hourly based revenue model
● Compliance○ Lower margin ○ Automated and billed using MRR
(monthly recurring revenue) model○ Alternatively outsourced overseas in
lower cost countries
Digital disruption is 10min walk from here
SAASU: Accounting Software In The Cloud
Shoeboxed: Scan & organise receipts
Invoice2Go: $10bn invoice volume annually on mobile
Part 2: How X can innovate
Image removed
3 horizons of innovation
Two types of innovation
Steve Blank on innovation
1. Continuous innovation (extending core)
2. Disruptive innovation (new businesses & vision)
When Ideas Have Sex
● Meeting & mating of ideas● Makes new ideas● New ideas are a culmination of
previous ideas & technologies ● TED talk by Matt Ridley
Innovation doesn’t have to be sexy
Happy Inspector For Property Inspections
● Digitising property inspections● Available for iPad/iPhone● Take notes and photos on mobile device● Instantly generates professional reports● Stores information in cloud● All reports available anywhere, anytime● Saves 80% time in creating inspection report
Innovation criteria
● Management buy-in○ Need to have an innovation champion○ Group of people that buy into it ○ Succession planning if any individual leaves
● Firm wide buy-in ● Innovation culture● People - starters vs scalers ● Attract and retain entrepreneurial talent● Can be trained in entrepreneurial mindset
Innovation criteria
● Lightweight policies and fast approvals
● KPI’s - Growth, R&D, 20% time. ● How do we shelter and embrace
creativity● Rewarding innovation and
failure/learning ● Incentivise innovative behaviour
Innovation criteria
● Too much focus on utilisation in professional services not on value add and growth
● Accounting - More than ROI metrics required● Innovation fund to back ideas● Start small● Closed vs Open innovation
Closed vs Open Innovation
Models of corporate innovation
● Starts with awareness of what’s happening around you● Using new services and startups● Innovation programs: formal vs informal● R&D: internal vs external● Co-opetition: collaborating with competition
Models of corporate innovation
● Partnerships with startups○ Mondelez International: Mobile Futures Australia
● Hackathons: Internal vs External○ Salesforce: $1mil USD prize○ Mastercard: Masters Of Code, $125k USD○ Paypal / Braintree: BattleHack, $100k USD○ Internal: See case studies on Suncorp & CarSales
● Innovation portfolios: 1 in 10 will payoff
Models of corporate innovation
● Acquisition● Corporate Venture Capital (Investment)
○ Google Ventures○ Qualcomm Ventures○ Softbank Capital○ Telstra Ventures○ Singtel Innov8 / Innov8 Seed Fund○ Reinventure: Westpac partnership
Models of corporate innovation
● Accelerators○ Typically invest $30k - $100k ○ For equity of 6% - 10%○ Telefonica: Wayra○ Telstra: Muru-d ○ NRMA: Slingshot○ AWI: AWI Ventures ○ Woolworths: WStart ($$ not disclosed).
Models of corporate innovation
● Sponsoring co-working spaces○ Fishburners: Google, PWC, News Corp, Optus○ York Butter Factory: EY, Coles, Adventure Capital○ Tank Stream Labs: EY, Tank Stream Ventures○ Tyro FinTech Hub: Tyro○ Stone & Chalk: AMP, ANZ, Westpac, FINSIA
Case study: Suncorp’s FedEx days
● FedEx days ● Adopted from Atlassian● Fridays off● Build & ship in 1 day● Started with small team of
technical people● Similar to hackathons
Case study: Suncorp’s FedEx days
● Became a firm wide initiative● 16,000 people take time out● Form self managed teams● Mix of diverse skills● Some of ideas go into production● Change mindset to innovation
Case study: CarSales Hackathon
● CarSales is an online marketplace for buying & selling cars
● Staff given 3 options in hackathon:1. Build something that would disrupt our
business as if you were working for someone else
2. Build something that will help our car dealers, buyers or sellers
3. Build something that will make money
Case study: CarSales Hackathon
● Some ideas chosen to go into production● Business is a disruptor to car industry● Easier to shift staff mindset to disruption &
innovation
Case study: Sensis Business Transformation
● History: Developed Australia’s first phonebook directory
● Help consumers connect with businesses● Shift in how consumers search for
businesses ● Became a digital marketing services
business: SEO, SEM, Social, Websites for businesses
● To bring external thinking:○ Hired people from digital environment○ Worked with IDEO (design agency)
Case study: Sensis Business Transformation
● Innovation process○ Used design thinking ○ Customer focused approach○ Experimented with lots of ideas○ Rapidly prototyped 60+ ideas○ Narrowed down to 3 - 4 ideas○ New product launched: Skip app for
skipping queues for ordering food● Best ideas & implementation are internal
Implementation
● Define growth goals● Start small to change mindset to innovation● Growth as a KPI● Awareness: What new technologies, startups and
trends exist out there?● Use existing Yammer and comms channels to
discuss opportunities
Implementation
● Become early customer of startups ● Provide valuable feedback as a customer● Provide pro-bono / discounted services to disruptors ● Customer discovery days
○ Top 3 problems■ Our customers have■ We have internally
○ How can we solve them? ○ More collaboration between different disciplines
Contact me
● Email: [email protected] ● Website: http://tapmint.com ● My Twitter: @inspiredworlds● My blog: http://inspiredworlds.com ● Top 20 Best Business Blog in Australia
(Smart Company)● Top 50 Australian Startup Influencer
(Startup Daily)
Resources
● Matthew Ho, Amidst boom in Aussie outsourcing and freelancing, Elance-oDesk launches in Australia, Tech In Asia, 3 May 2014.
● Chris Pash, The amazing growth story of Xero in one simple chart, Business Insider, 27 April 2015
● Sholto MacPherson, How Accountants Can Survive Digital Disruption: ICAA, Digital First 19 Sept 2013
● Sholto MacPherson, Digital Wave To Push Accountants into Post-Compliance Era: ICAA, Digital First, 18 Sept 2013
Resources
● Sholto MacPherson, Deloitte Private Connect - How and why did Deloitte build it, Digital First, 4 July 2014
● Matt Ridley, When Ideas Have Sex, TED Global, 2010● Steve Blank, The Search For The Fountain Of Youth -
Innovation & Entrepreneurship in the Enterprise, 3 June 2010● Paul Hobcraft, Mapping Innovation Across The Three
Horizons, Innovation Excellence,, 24 April 2013● Exploring the 3 horizons framework, Hype Innovation, 11 Nov
2013.
Resources
● Henry Chesbrough, Principles of Innovation, 2009.● Alex Osterwalder & Yves Pigneur, Business Model Generation,
2010 ● Steve Blank, Lean Goes Better With Coke - The Future of
Corporate Innovation, 7 Nov 2013.● Carie Davis, Startup Weekend at Coke - Building
Entrepreneurship in the enterprise, Coca-Cola, 3 Jul 2013.● Allie Coyne, Carsales tests developer innovation with
'hackathon', itnews.com.au, 11 Oct 2013.● innovation.carsales.com.au
Resources
● Nadia Cameron, Technology, Simplicity, and Culture: Behind The Scenes of Sensis’ Digital Transformation, CMO, 18 Dec 2014
● Finding A New Business In The Every Day, IDEO, 2014
Resources
People interviewed / sources:
○ James Drucza (Tapmint)○ Ping Wang (ex-transformation team, IAG)○ Kelly Brough (ex-GM, Sensis) ○ Kiran Kumar (ex-Suncorp)○ Ben Reid (ex-BD, Muru-D)