At the Igniting growth through innovation retreat, EY invited a panel of thought leaders to discuss three disruptive megatrends that are driving today’s innovation and altering corporate strategy.

1. Igniting growth through innovation
Executive retreat — 27-28 April 2015
Disruptive trends drive
innovation by making new
forms of value creation
possible. These trends,
particularly where they
intersect, create threats and
opportunities.
EY invited a panel of
thought leaders to discuss
three disruptive megatrends
that are driving today’s
innovation and altering
corporate strategy.
Disruptive
trends
driving
innovation
David Jensen
Global Innovation and
Digital Strategy Leader, EY
Stefan Heck
Consulting Professor,
Stanford University
Tammy Erickson
Executive Fellow,
London Business School
Thought Leader Insights
Digital
future
Resourceful
planet
Future
of work
• We are living in the “age of innovation.” Companies must put
innovation at the heart of their purpose.
• The driving force behind innovation is the proliferation of digital
technologies and data.
• The impact of technology and data will accelerate as devices and
sensors become connected – today, only 1% of the things that can be
connected to the internet are.
• Digital will affect companies in all sectors. Those that hesitate may be
disrupted before they are ready.
• The art of innovation is around activation – leveraging analytics, data
and technology to exploit customer and operations opportunities.
• Today’s economy utilizes assets and resources very inefficiently
(e.g., autos are parked 96% of the time on average).
• New materials, technologies and business models will greatly
improve asset utilization. Combining these will create massive
gains in asset and resource productivity (e.g., ACES:
autonomous, connected, electrified, shared transportation).
• Gains from innovation in renewable energy may reduce the cost
of power to an almost negligible price in the next decade.
• Changes in transportation, infrastructure and energy systems
will disrupt those sectors and will have significant implications for
the economy (e.g., leveling real estate prices).
• The organization of work will change from role-based to task-based.
• Fixed-place, fixed-time work will give way to more flexible
arrangements.
• Real-time coordination of work will replace scheduling and planning.
• Organizations will need to use values and meaning to engage
discretionary workers. Meaning is the new money.
• Organizations will look for talent differently, focusing on skills rather
than credentials.
• Iconic companies will be those that can leverage intelligence to
create value.
Trend
intersections
• Many of our perceived resource constraints will be
relieved by asset and resource efficiency driven by
data, intelligence and connectivity.
• Digital is changing resource requirements by
enabling the substitution of virtual for physical
products.
• Digital is a key enabler in the shift in productivity
and asset utilization – allowing us to share those
assets and operate them autonomously and
remotely.
• The resource environment, workplace and supply
chain will be shaped by increased levels of
coordination.
• Digital technologies are enabling people to work at
places and times of their own choosing, for one
employer or many.
• Sustainability has become an increasingly important
factor in attracting and managing talent.
• Digitization and automation will replace some jobs,
but will also create new jobs requiring new skills.
Do you have business
strategies for a digital world
rather than digital strategies?
Are you prepared to engage
talent on a more flexible,
task-oriented basis?
Is innovation at the core of
your business or is it an adjunct
to your business?
How will you attract, motivate
and engage discretionary
employees?
How will you leverage
technology to build and manage
global ecosystems as part of
your innovation strategy?
What is your action plan to
take advantage of the new
energy sources?
Do you need to appoint a chief
energy and resources officer?
Do you have the right alliances
and partnerships to accelerate
growth through innovation?
How will revolutionary changes
in asset utilization impact
your business? Your supply
chain?
?Key questions
for organizations

2. Igniting growth through innovation
Executive retreat — 27-28 April 2015
Disruptive trends driving innovation
Connect to additional content on disruptive trends:
Digital
future
Resourceful
planet
Future
of work
“ Tools of innovation are being democratized, and this is as fundamental
as the shift from a capital-intensive to a knowledge-intensive
economy.”
“ The sources of profit are bound to change for all industries. Winners
will be those that get ahead of the game and shape the shift.”
“ Rapidly increasing pace of change seems inevitable – innovation, as a
capability, will rule.”
“ We are ‘5 minutes into the movie’ about innovation.”
“ A fundamental inefficiency in the way we use many of our resources
sets the stage for major disruption and business opportunities.”
“ In the past we looked at market size and capital investment. In the new
world, it is about impacting markets with highly underutilized assets.“
“ The future will bring great improvements in the productivity of assets,
made possible largely through data, analytics and the matching of
supply and demand.”
“ Valued work cannot be forced ... it must be discretionary, and this
necessitates purpose and vision that motivate the workforce.”
“ Shift to task-based work is intriguing and will be a game-changer!”
“ Skills badges will be the new labor currency.”
“ Task orientation and discretionary work are going to become the norm.
The Uber of work will be the next US$40 billion idea.”• Watch thought leaders discuss disruptive trends and their interactions:
• David Jensen
• Tammy Erickson
• Stefan Heck
• View a visual summary of each trend and its interconnection
• See the social media account of the disruptive trends fireside chat on Storify
• Watch an animated recap of the session
• Take a deeper dive into megatrends by accessing the EY Megatrends 2015 report
 Digital image created during the session
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EYG no. EX0285, ED None
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