A Tool Box for Success from Using Disruptive Technology and Creating an Innovation Culture

1. A Tool Box for Success from Using Disruptive Technology and Creating an Innovation Culture Professor Steve Burdon CEO Circle Seminar, Park Hyatt Sydney 17th November 2016

2. 1.0 Research Objectives & Methodology 1.1 Overall Objective Our objective is to build a box containing valuable tools that CEOs and Boards can use to facilitate future success from using disruptive technology and creating a total organisation innovation culture. 1.2 Key Issues facing CEOs According to PwC, the top two issues facing Australian CEOs are disruptive technology and building an innovation culture. 1.3 Survey Responses Exceptionally good response, with 185 completed surveys and a response rate of 75% of members, with 110 CEOs, 18 NEDs and 48 C-Level Executivesand Business Unit Heads.

3. 2.0 Disruptive Technology There were five section topics and the most important were: 2.1 Dealing with the Six Digital Imperatives for Transformation • 50% of the respondents have considerable work to do on these issues, as their scores were below averageor poor. Successful organisations had good scores for all six imperatives. Top Twelve Breakthrough Actions of Winning Organisations* • They had excellent strategies, processes and plans for both incremental and radical projects • They often rethink their business model and create their own digital attack businesses. * Defined as having a very large or major difference in scores between the least and most successful organisations

4. 2.0 Disruptive Technology 2.2 Building a High Percentage of Growth from Digital Initiatives • 50% of the organisations scored poorly. Successful companies’ scores were excellent. Top Twelve Breakthrough Actions of Winning Organisations • The most successful organisations focused on building a large percentage of their growth from digital initiatives, via building new businesses, creating competitive advantage or creating existing business.

5. 2.0 Disruptive Technology 2.3 Level of Engagement of Management and Board in Digital Strategy • 50% of respondents thought, at best, their organisational board was only supportive, but not engaged. Successful organisations thought their boards were highly supportive and directly engaged. Top Twelve Breakthrough Actions of Winning Organisations • Boards having the skill and will to be directly engaged in digital strategy and implementation is an important requirement for organisational success • At a C-Level and Business Unit level, successful organisations had achieved much higher levels of support and engagement in digital initiatives.

6. 3.0 Prerequisites of an Innovation Culture There is growing evidence that there are three prerequisites required for creating a successful innovation culture: 3.1 Leadership • On average, respondents gave a ‘good’ score for the two issues of leadership researched, with successful organisations scoring ‘excellent’. Top Twelve Breakthrough Actions of Winning Organisations • There was a large gap between successful organisations and others on the question of a network of leaders to implement the building of an innovation culture

7. 3.0 Prerequisites of an Innovation Culture 3.2 Organisational Design & Structure • On average, respondents gave their organisation a ‘good’ score for having an organisationaldesign that facilitated an innovation culture; successful organisations scored ‘excellent’. Top Twelve Breakthrough Actions of Winning Organisations • There was a large gap between successful organisations and others on their organisations’ ability to encourage collaboration, quick decision making and flexibility

8. 3.0 Prerequisites of an Innovation Culture 3.3 Corporate values – increasingly seen as humanising outputs rather than defining inputs • On the six values researched, the least successful organisations’ scores were either ‘average’ or ‘poor, and the most successful were ‘good’. Top Twelve Breakthrough Actions of Winning Organisations • Successful organisations established corporate value of celebrating “successful” failure as a manifestation of risk taking • Successful organisations put a higher priority of viewing all staff as entrepreneurs

9. 4.0 Establishing an Innovation Culture Managing the Ten Key Requirements for Building a Successful Innovation Culture • Across the ten issues, the differences between the least and most successful was ‘major’, however differences between the mean and most successful was only ‘noteworthy’. Top Twelve Breakthrough Actions of Winning Organisations • Successful organisations were much better in their ability to embrace change and be adaptable. • Successful organisations were much better at valuing ‘doing’, taking risks and experimenting. • Successful organisations are much stronger at seeing themselves as part of an interlinked community, not just a company of employees.

10. 5.0 Additional Major Research Outcomes You are able to access more useful tools to create your own success from a detailed report on the CEO Circle website. You can also learn more about other issues, including: • Why Brisbane has created an edge over Melbourne and Sydney in building an attractive ecosystem • Why medium sized companies in the digital age have more trouble being successful and how they can deal with it • Find out how other organisations in your industry sector have performed and compare those with your own scores • Find out whether your industry sector is one of those that is not dealing with disruptive technology and creating an innovation culture, but is being disrupted

11. 6.0 Summary The research showed a very high correlation between success and the ability of organisations to deal successfully with digital disruption and create an innovative culture. We recommend that CEOs and Boards pay strong attention to the breakthrough actions of winning organisations*. * The results are based on a very strong and uniform correlation, but do not constitute a causal relationship.