Financial Services and Innovation
INTRODUCTION 1
1.EXECUTIVE SUMMARY 2
2.ELEMENTS OF INNOVATION 2
2.1 THE TYPES OF INNOVATION 3
2.2 CLASSIFICATION OF INNOVATION 4
2.3 DRIVERS OF INNOVATION 4
2.4 ENABLERS OF INNOVATION 5
2.5 BARRIERS TO INNOVATION 6
3. INNOVATION WITHIN BANKING ORGANISATIONS 7
3.1 TUNNEL VISION AS A BARRIER 9
3.2 CUSTOMERS AS ENABLER WITH LEGISLATION AS A DRIVER 9
4. INNOVATION AS A TOOL 10
4. RECOMMENDATIONS 10
4.1 THE MAVERICKS 11
4.2 READ THE SIGNS 11
4.3 COMMUNICATE 12
4.4 IDEAS INCLUDE 12
5. CONCLUSION 12
REFERENCES 13
INTRODUCTION Innovation is defined as the application of knowledge in a novel way, primarily for economic benefit. Innovations have two main characteristics. First, innovations break the mould by applying knowledge in some novel way. Second, innovations are the result of a chain of events that starts with the original idea, invention or discovery, and then proceeds (usually in a chaotic manner) though prototype construction, financing, customer demonstration, field trials, engineering, and production, marketing and finally sales. Only by successfully completing this obstacle course can an invention be considered innovation. Apart from skill and resources, the most important requirements are clear head, an ability to improvise and dogged determination.
Revenue growth is the primary driver of shareholder value and the number one challenge for financial services companies in South Africa and the world. Yet, at the same time the industry 's growth objectives are often tempered by a continuing focus on cost containment, legislative and regulatory environment in SA. Financial institutions need to evaluate the role of innovation in both creating and sustaining revenue growth.
1.EXECUTIVE SUMMARY
In today 's highly competitive environment financial organisations must use every competitive advantage to attract new customers, retain existing customers and reduce cost in order to maximise profits.
The real challenge though, is to attempt
1.EXECUTIVE SUMMARY 2
2.ELEMENTS OF INNOVATION 2
2.1 THE TYPES OF INNOVATION 3
2.2 CLASSIFICATION OF INNOVATION 4
2.3 DRIVERS OF INNOVATION 4
2.4 ENABLERS OF INNOVATION 5
2.5 BARRIERS TO INNOVATION 6
3. INNOVATION WITHIN BANKING ORGANISATIONS 7
3.1 TUNNEL VISION AS A BARRIER 9
3.2 CUSTOMERS AS ENABLER WITH LEGISLATION AS A DRIVER 9
4. INNOVATION AS A TOOL 10
4. RECOMMENDATIONS 10
4.1 THE MAVERICKS 11
4.2 READ THE SIGNS 11
4.3 COMMUNICATE 12
4.4 IDEAS INCLUDE 12
5. CONCLUSION 12
REFERENCES 13
INTRODUCTION Innovation is defined as the application of knowledge in a novel way, primarily for economic benefit. Innovations have two main characteristics. First, innovations break the mould by applying knowledge in some novel way. Second, innovations are the result of a chain of events that starts with the original idea, invention or discovery, and then proceeds (usually in a chaotic manner) though prototype construction, financing, customer demonstration, field trials, engineering, and production, marketing and finally sales. Only by successfully completing this obstacle course can an invention be considered innovation. Apart from skill and resources, the most important requirements are clear head, an ability to improvise and dogged determination.
Revenue growth is the primary driver of shareholder value and the number one challenge for financial services companies in South Africa and the world. Yet, at the same time the industry 's growth objectives are often tempered by a continuing focus on cost containment, legislative and regulatory environment in SA. Financial institutions need to evaluate the role of innovation in both creating and sustaining revenue growth.
1.EXECUTIVE SUMMARY
In today 's highly competitive environment financial organisations must use every competitive advantage to attract new customers, retain existing customers and reduce cost in order to maximise profits.
The real challenge though, is to attempt
References: 1. Abraham, J.L. & Knight, J.D. (2001). Strategic Innovation: Leveraging creative action for more profitable growth 2. Ahmed, P.K. (1998). Culture and Climate for Innovation. European Journal of Innovation Management 3. Arias, J.T.G. (1995). Do networks really foster innovation? Management Decision 4. Clark, P. & Staunton, N. (1990). Innovation in Technology and Organization. 11. Uecke, O. (2002). AIO: An Innovative Organization. Paper within entrepreneurial creativity. Jönköping International Business School. Jönköping University. 1-13.