financial innovation summit 2008 - eng

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?