financial innovation summit 2008 - eng
Post on 22-Oct-2014
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A provocative opening-speech about the need of innovation even in the middle of the world-wide financial crisisTRANSCRIPT
THERE’S JUST MORE THAN
The Little Light on the Left
Wichert van Engelen
Innovation-management&
Consultancy
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Change & Innovation
Internal Objections External Restrictions Personal blockades
Innovation in Financial Services Personal innovation
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Internal hurdles Not invented here IT-investments are scattered We first need a strategic vision We lack knowledge and experience We first need to re-organize Fatalism (ok, but we are not like Google) Short termism (the shareholder-value!!!) Our bright ideas will be stolen by others It’s not our core-business Too complex data-handling Our services are too complex, they only can be
dealt with by personal advisors Our normal IT is not even on track
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External hurdles
No market Not known by clients Cannibalism Use of internet by elderly Regulations, Laws and more
regulations
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Buzzor
now-or-never?
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Yet ……
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Disruptive innovation
is mostly coming from outside
Electronic typemachine -> IBM Consumer PC’s IBM -> Dell Digital music Sony -> Apple Digital Photography Kodak -> ….. Airlines … -> Easy, Virgin
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Competitors
Non-localNon-financial
Look behind you
Post-offices sell financial products
Retailers sell financial products
Car manufacturers sell financial products
Direct sellers sell financial products
Virgin is everything and a bank
Zopa: peer-to-peer lending
An online marketplace where people meet to lend and borrow has huge cost
advantages which is why Zopa members get a fairer deal when it comes to their money.
In Zopa’s wake, copycats such as Prosper in the US, Smava in Germany and Boober in the Netherlands have sprung up across the world.
Social Lending is a financial category of genuine and increasing importance.
Social networks are the dominant internet hotspots
Banks must be where the people are
Where are You?
Facebook: peer-to-peer Lending
Opportunities on Social networksfinancial services already launched on Facebook: 1. Lending Club's person-to-person loan marketplace 2. Prosper's lending game 3. Wesabe's personal finance groups 4. Pay Me, a payment service
But so far, no: Bank, Credit union, Credit card issuer, Mortgage lender, Brokerage,
Rates tracking service, Credit report monitoring
service, Identity theft protection service
Own your own bank in SL
LindeX - the official Second Life Linden Dollar exchange.
E-bay en Google offer payments anywhere
Lown entrance walls
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Ideeen GenoegSlagvaardig innoveren in de dienstverlening
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Nine Thoughts
1. Look for Fresh Money2. There are more than enough ideas3. Develop your eighth sense for the future4. Implementation is far more important
than ideas 5. To innovate you have to work structuraly
non-structured6. Use the power of Now7. The organisations: a hybrid model8. Be aware of the game, the actors and their
roles9. Just do it!
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Nine Thoughts
1.Look for Fresh Money2. There are more than enough ideas3. Develop your eighth sense for the future4. Implementation is far more important than
ideas 5. To innovate you have to work structuraly non-
structured6. Use the power of Now7. The organisations: a hybrid model8. Be aware of the game, the actors and their roles9. Just do it!
More of the same money
Incr
em
en
tal
Rad
ical New
Business creationRadical
innovationin current business
Continiousimprovements
Fresh money
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1% Innovation99% Execution
Grow by managing mature business efficiently and incremental
improvements
Invest in creating future growth engines
Run and win the game Change the game
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Nine Thoughts
1. Look for Fresh Money
2.There are more than enough ideas
3. Develop your eighth sense for the future4. Implementation is far more important than
ideas 5. To innovate you have to work structuraly non-
structured6. Use the power of Now7. The organisations: a hybrid model8. Be aware of the game, the actors and their roles9. Just do it!
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FunctionalityKills
CreativityKills
Functionality
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Only implemented ideaswill become part of
history
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Ideas in your organisation
The last 4 months:
How many ideas were
rejected?
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No companyNo companyever grew to greatness ever grew to greatness
by cutting costs.by cutting costs.
(Jack Welch)
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Nine Thoughts
1. Look for Fresh Money2. There are more than enough ideas
3. Develop your eighth sense for the future4. Implementation is far more important than
ideas 5. To innovate you have to work structuraly non-
structured6. Use the power of Now7. The organisations: a hybrid model8. Be aware of the game, the actors and their roles9. Just do it!
Customer Made
Brand spaces
Massclusivity
Trendwatching.com
No Frill Chic
Infolust
Futureguru.com
Trendwatchers
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In all likelihood, world inflation is over.
CEO of IMF, 1959
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Remote shopping, while entirely
feasible, will flop, because women like to get out of the
house …
Time magazine, 1966
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Man will not fly for 50 years.
Wilbur Wright, 1901
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It will be years-not in my time –before a woman
will becomePrime Minister
Magaret Thatcher, 1969
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The Japanese auto industry isn’t likely to carve out a big share
of the market.
Business Week, aug 1968
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I think there is a world market for maybe five
computers.
Cthomas Watson, CEO IBM 1943
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The automobile has practically reached
the limit of its development.
Scientific American, 1909
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640 K ought to be enough for anyone.
Bill Gates, 1982
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The possibilities of the aeroplane have been exhausted, we
must turn elsewhere.
Thomas Edison, 1895
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There is no reason anyone would want a
computer in their home.
Ken Olson, founder of Digital Equipment Org. 1977
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Who the hell wants to hear actors talk?
H.N. Warner, Warner Bros, 1927
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Everything that can be invented,
has been invented.
C.H. Duell, dir. US Patent Office, 1899
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TrendwatchingThe future is non-predictableSharpen your 8th sense: Look outside. Managers are keeping
themselves busy with internal affairs
Get yourself inspired, tickle your fantasy: less research
Do not become old (-fashioned), stay in tune
with the youth (and their language), think
in chances and possibilities
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Looking at trends
VisionDoes the trend have the potential to influence orshape your company's vision?
New business conceptsCan the trend point you to new business concepts, or entirely new ventures?
New products, services, experiencesCan the trend inspire you to add 'something' new for a certain customer segment?
Marketing, advertising, PRWill the trend help you speak the language of those consumers that are already 'living' a trend?
Trendwatching.com
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Nine Thoughts
1. Look for Fresh Money2. There are more than enough ideas3. Develop your eighth sense for the future
4. Implementation is far more important than ideas
5. To innovate you have to work structuraly non-structured
6. Use the power of Now7. The organisations: a hybrid model8. Be aware of the game, the actors and their
roles9. Just do it!
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Yet…..
Top always wants
Top always wants innovation, but
innovation, but choses:choses:the well-known
the well-known the short termthe short term
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Nine Thoughts1. Look for Fresh Money2. There are more than enough ideas3. Develop your eighth sense for the future4. Implementation is far more important
than ideas
5.To innovate you have to work structuraly non-structured
6. Use the power of Now7. The organisations: a hybrid model8. Be aware of the game, the actors and their
roles9. Just do it!
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50 ideas 10 pilots 5 in production
Funnel
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Innovation:Innovation:It’s not a funnel. It’s not a funnel.
It’s a dangerous journey, It’s a dangerous journey, from idea to moneyfrom idea to money
along a lot of obstaclesalong a lot of obstacles
(Eddie Obeng)
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BusinesscaseBusinesscase
BusinessmodelBusinessmodel
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Nine Thoughts
1. Look for Fresh Money2. There are more than enough ideas3. Develop your eighth sense for the future4. Implementation is far more important than
ideas 5. To innovate you have to work structuraly non-
structured
6. Use the power of Now7. The organisation: a hybrid model8. Be aware of the game, the actors and their roles9. Just do it!
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Target-settingRegular target-setting Targets to provoke innovation
• Specific
predictable, plannable developments
• Less specific
Flexible, freedom to experiment, incremental insights, search for knowledge
• Quantitative
Measurablesharp focus
• Qualitative
Possibilities
• Realistic
conceivablerealizable
• Provoking
Inspiring, madness, over-the-top, discussion
• Loss & risc averse
within frames: time, quality, budget
• Focus on succes
Definition of succes
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Nine Thoughts1. Look for Fresh Money2. There are more than enough ideas3. Develop your eighth sense for the future4. Implementation is far more important than
ideas 5. To innovate you have to work structuraly non-
structured6. Use the power of Now7. The organisation: a hybrid model
8.Be aware of the game, the actors and their roles
9. Just do it!
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Rad
icality
L
ow
H
igh
Low High
Passion
GraveyardGraveyard LineLineorganisationorganisation
SandpitSandpitGolden Golden
mountainsmountains
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69486948
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Ships in harbour are Ships in harbour are safe.safe.
But that’s not what But that’s not what
ships are built forships are built for..
(Alan Ada)
Ships in harbour are Ships in harbour are safe.safe.
But that’s not what But that’s not what
ships are built forships are built for..
(Alan Ada)
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Innovation need intrapreneurs Always be prepared to get fired Outrun bureaucracy Do whatever it takes, no matter your official
function-description Don’t work alone, get supporters Only work with the best Stay under the radar as lons as possible Dare to get dirty hands Don’t ask for permission, ask for forgiveness Keep on dreaming, but be realistic about the
route Involve your sponsors, and don’t forget to thank
them
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Nothing venture Nothing venture Nothing winNothing win
(England, 15th century)(England, 15th century)
ING74
Questions?