RBC AGM 2006

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Innovation in Action _at_RBC
Avi Pollock Head, Applied Innovation RBC
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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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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

4
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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The Innovation Pyramid
A portfolio approach is necessary to have a
successful innovation agenda.
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Benefits of Innovation
Client Value

• Clients recognize RBC as a progressive
  institution
• Increases client advocacy and likelihood to
  recommend

Attracts/Develops Talent
Business Growth

• Engages employees who view the organization as
  innovative and competitive
• Attracts and retains innovative and progressive
  leaders who win and shape the future

• Contributes to earnings growth that is required
  to maintain top quartile performance
• Promotes new earning streams and maximizes
  opportunities in existing businesses

• More responsive to evolving clients and markets
• Better able to absorb shocks from industry
  transformation, competitors or new entrants

Strategic Agility
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Ideation Building a Pipeline

• Research, Client Insights Strategy Groups
• Ideation Programs
• Others..

• STF investments/ Relationships
• Vendors/Suppliers
• Universities
• Others

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Ideation Driving New Ideas From Within
Idea Portal
Pipeline Metrics
Profiles
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Ideation Looking Outside- Next Great Innovator
Challenge
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The RBC Innovation Council

• Identify exploratory concepts on a longer-term
  time horizon concepts that are likely not yet
  on the radar of the day-to-day business leaders
• Incubate concepts to a point where a business
  case has been developed and/or a proof of concept
  has been completed and
• Help drive an innovative culture through the
  organization by acting as spokespeople on
  innovation, clearing roadblocks, supporting IC
  projects, etc.

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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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Innovation in Action _at_ RBC
Some people make things happen.  Some watch while
things happen. And some wonder "What Happened?" 
Avi Pollock Head, Applied Innovation Email
avi.pollock_at_rbc.com