Innovation in

Action @RBC

Avi Pollock

Head, Applied Innovation

RBC

July 9, 2009

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Some Famous Quotes on InnovationThat didnt quite come true

"Heavier-than-air flying machines are impossible." (Lord Kelvin, president, Royal Society, 1895)

"I think there is a world market for maybe five computers." (Thomas Watson, chairman of IBM, 1943)

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Defining Innovation

Innovation connects what is possible to

what is valuable to our clients and/or shareholders

Innovation can be broadly interpreted as something new new to the world, new to a particular market, new to the company or new within the company

Innovation is more than ideation it is a full range of activities from insight and idea generation, through testing and development, to launch and evaluation

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RBC & Innovation

Innovation connects what is possible to

what is valuable to our clients and/or shareholders

ClientNeeds

Business

Model

Technology

Innovation

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The Applied Innovation Team Mandate

Identify emerging technologies and new business and process opportunities that have the potential to drive growth

Support, facilitate and stimulate idea creation and innovation with access to internal and external thought leadership, tools and methodologies

Evaluate and test next generation technologies

Always looking to whats next, whats new,whats different and its application to RBC

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Finding the Right Team Members

An odd collection of habits, skills and experiences which shouldnt work together!

Creativity AND Process orientation Intellectual Curiosity, Comprehension and The Prepared

mind Desire to Synthesize Agnostic to the Tools, driven by the Concepts Willingness to Listen and to Argue

Need to know when to do either or both

Tireless Commitment, Belief and Thick Skin Low desire for Personal Glory, high Drive for Success Leapfrog Thinking and Action Social or Corporate Anthropologist, Archeologist and

Psychologist Diverse backgrounds and skill sets - Mix of entrepreneurs

and bank lifers

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The Innovation Pyramid

Incremental

Changing the

Industry

Changing the

Business

Improving the

Business

Evolutionary

Transformational

A portfolio approach is necessary to have a successful innovation agenda.

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Benefits of Innovation

Innovation

Attracts/Develops TalentBusiness Growth

Client Value

Strategic Agility

Clients recognize RBC as a

progressive institution

Increases client advocacy and

likelihood to recommend

Engages employees who view

the organization as innovative

and competitive

Attracts and retains innovative

and progressive leaders who

win and shape the future

More responsive to evolving

clients and markets

Better able to absorb shocks

from industry transformation,

competitors or new entrants

Contributes to earnings growth

that is required to maintain top

quartile performance

Promotes new earning streams

and maximizes opportunities

in existing businesses

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Looking for that Next Idea

Business Drivers

ScanScanScanScan

TryTryTryTry

SynthesizeSynthesizeSynthesizeSynthesize

Top Enterprise ChallengesTop Enterprise ChallengesTop Enterprise ChallengesTop Enterprise Challenges

External Trends

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Ideation: Driving New Ideas From Within

Profiles

Idea Portal

Pipeline Metrics

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Ideation: Looking Outside- Next Great Innovator Challenge

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Applied Innovation Labs

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RBC Beta

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Final Thoughts on Innovation

Innovation is about change more complex for service-oriented organizations

Dont starve tomorrow to feed today or let the urgent crowd out the important. Innovation is a mindset, not a department

Its about adding new value, not necessarily new things

Innovation doesnt just happen

Develop a common language

Innovation is a team sport

Small things matter; Incremental is ok

Do-learn-do is the optimal approach

Focus innovation efforts on client value, with caveats

Organizational Culture: Collaboration is king, aim for diversity of thought. Communication is key to employee empowerment

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Some people make things happen. Some watch while things happen. And some wonder "What

Happened?"

Avi Pollock

Head, Applied Innovation

Innovation in Action @ RBC