LEVERAGING TECHNOLOGY FOR EFFICIENCY

Marco Vulpiani

Partner Deloitte Head of Valuation Services - Financial Advisory Innovation Leader - Italy

LEADING ENTERPRISES, IN PARTICULAR THOSE WITH INTERNATIONAL PRESENCE, MUST FACE A

LARGE VARIETY OF INTERRELATED CHALLENGES

2

Increasing customer

expectations about service/product

quality

Increasing cost pressure

Growing concerns on environment

and resources lack

Increasing customer centricity

and complexity/ volatility in

customer demand

Rapid technological

improvements

Increasing pressure from global competition

Increasing data availability and

difficulties in data management

THERE IS NOT A UNIQUE RECIPE TO FACE SUCH CHALLENGES, BUT WE CAN SAY – WITH NO

DOUBT – THAT ENTERPRISES MUST INNOVATE IF THEY WANT TO SURVIVE

3

Innovation gives the

enterprise the

opportunity to face

such challenges,

survive and

differentiate

themselves, while

generating revenues

and constructing a

huge competitive

differentiator

Those who did not innovate… (… and those who did)

12 years

2004 2008 2012 2000

2004 2008 2012

5 years

2000

6 years

2004 2008 2012 2000

I think film's

coming back

People like coming

to our store to rent

movies

Never change a

winning team

THERE ARE MANY DEFINITIONS OF INNOVATION, BUT EVERYONE HAS ONE COMMON ELEMENT

4

Fresh

ideas

that

generate

value

An “innovation” is an idea that yields value in the

form of new or improved functionality or

quality, reduced cost, better or more widespread

availability, a price increase for the seller, a price

decrease for the buyer, better margin for the

seller, or some combination of any or all of these

InnovationLab

Innovation is the specific

instrument of

entrepreneurship… the

act that endows resources

with a new capacity to

create wealth

Peter Drucker

Innovation is the execution of

new ideas that create

business value

Innovation is the combination of

“invention” plus

“commercialization

Innovation is new products, business processes and organic changes that

create wealth or social welfare

Innovation is about

executing the idea […]

converting the idea into a

successful business

The process of

translating an

idea or invention

into a good or

service that

creates value or

for which

customers will

pay

An innovation is the implementation of a new or

significantly improved product (good or service),

a new process, a new marketing method, or a

new organizational method in business practices,

workplace organization, or external relations

Innovation connects what is

possible to what’s valuable

to our employees, customers

and shareholders

Innovation is a

mindset in your

business; your

employees are

always focused on

continuous

improvement and

constantly thinking

outside of the box

YET INNOVATION IS NOT ONLY ABOUT IDEAS

5

Environment Marketplace

TODAY, ONLY CHANGE IS CONSTANT, AND THE RATE OF CHANGE IS INCREASING FASTER THAN THE

PACE OF MOORE’S LAW

6

x

If in 1994 Internet would have run at the speed of an

ant, today it would be fast as a Space Shuttle…

…Innovation is not a competitive tool but

the new game rule

Artificial Intelligence

Industrial Biology/ Genetics

Additive Manufacturing/ 3D Printing

Robotics

Internet of Things/ Wearables

Quantum Computing

EXPONENTIAL TECHNOLOGIES CAN HELP ENTERPRISES IN WINNING THE CHALLENGE OF

EFFICIENCY AND COMPETITIVENESS

7

ENTERPRISES CAN AND SHOULD LEVERAGE ON EXPONENTIAL TECHNOLOGIES, FOLLOWING THE

EXAMPLE OF THE «GOOD ONES»

8

Partnership with StayWell Health Management to offer

employees the use of a wearable device, which

measures the number of steps taken every day

Internet of Things/ Wearables

Benefits

• Increased daily productivity

• Increased employers health and decreased absences

• Decreased health care spend by 3.5 percent and realized an estimated $3 return in health care costs savings for each dollar invested in the wellness program

• Achieved an ROI of 3:1

CASE STUDY

ENTERPRISES CAN AND SHOULD LEVERAGE ON EXPONENTIAL TECHNOLOGIES, FOLLOWING THE

EXAMPLE OF THE «GOOD ONES»

9

Robotization of fulfillment centers, with robots picking,

packing, and shipping products in more than 18 million square

feet of warehouses

Robotics

Benefits

• Increased stocking and order picking productivity and rates, order accuracy, order fulfilment rates and speed of order turnaround time

• Better Engagement of Workers

• Inventory accuracy and security

• Flexibility and scalability

• Electricity savings and improved quality of life

• Reduced training time

• The ‘wow' factor

CASE STUDY

ENTERPRISES CAN AND SHOULD LEVERAGE ON EXPONENTIAL TECHNOLOGIES, FOLLOWING THE

EXAMPLE OF THE «GOOD ONES»

10

Additive Manufacturing/ 3D Printing

Benefits

• Free Design

– Realization of any kind of shape

– Increase of shape complexity with no additional cost

• Weight reduction and Performance increase

– Lighter Product, more homogenous, precise and resistant

– Mechanical performance better than welded piece

• Cost reduction

– Less waste of energy and materials

– Faster Realization

– Zero emissions

CASE STUDY

Realization of aeronautical components through AM, in particular

through the aggregation of special metal alloys powders

HAVING SAID SO, ENTERPRISES MUST FOLLOW THREE MAIN STEPS IN ORDER TO FACE TODAY

CHALLENGES

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We talked about…

Challenges faced by today’s leading enterprises, in particular multinationals

Innovation as an essential driver in facing and winning such challenges

Innovation as an open ecosystem encompassing ideas, technology and incubators and with direct relations to internal and external environment

Exponential technologies as players with a leading role in fostering innovation in companies

Creating and leading an innovation ecosystem

Leveraging technology as distinctive element, and applying the right level of technology to products and services

Cultivating continuously an innovation culture, internally and within the business community

Lesson learnt

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