New Service Creation : Innovation Series : Part -2
Even Jack Trout, who wrote his bestseller “Differentiate or Die” a decade ago, could not have visualized at that time, what a dramatic impact differentiation has on today’s Financial Services industry.
With the ever increasing regulation (and scrutiny) on financial products/services that is strangling the margin cows, unforeseen competitive landscape and the relentless pressure from shareholders and stakeholders, one of the few hallowed grounds left to maintain/gain market dominance is new service creation.
Surprisingly many financial services firms are not paying enough attention to this, but are wrapping resources around other more difficult solves for the business.
Why New Service Creation
New Service creation is an engine for offering new solutions, creating or entering new markets and/or enhancing new performance levels all for creating business value. It allows financials services firms to differentiate with the core offering itself, and thereby breaking it out from the monotonous cycle of “comparative-competition”.
New services could facilitate “winning without competition” if they are designed innovatively – both in terms of representing intrinsic value and functionality.
Today technology has reached a new pinnacle in the time-spectrum, for enabling capabilities that were historically not possible or viable.
Financial services firms who are seeking to outdo others need to ride this wave.
Technology – An Enabler
I believe that new financial services are a manifestation of creative and innovative minds……..and that technology is just an enabler !
A new service/capability can be created ground-up or through modification of an existing service. The service itself could be just a method/process or an end-user deliverable that allows the firm to monetize.
Technology enablers are abundant and diverse – to name a few :
Wireless Connectivity (LTE/3G/WiFi/Bluetooth/NFC etc), IP-enablement, Imaging, Cloud, Applications (Location, Presence, P2P etc)
However successful monetization results when financial services firms creatively identify new or existing processes and leverage technology enabler(s) in a unique (never-been-done-before) manner.
As a case in point, I recently created a variety of new services (patent pending) for financial services firms that not only shortened 100-year old laborious processes but also delivered enhanced customer experience. These new services offer higher levels of customer acquisition, retention and experience.
Method in the Madness
As is apparent, none of this is easy.
It starts with a definite strategic intent and focus to deliver new financial services, a creation of a talented team comprising both internal and trusted external partners who can make the mission possible.
Needless to say, capital for idea manifestation, prototyping and solution development, are necessary ingredients to harness the talent and creativity.
In my experience, advising and creating innovative solutions for corporations globally, it is this formula that makes great corporations invincible.
Do you Think Forward? What do you see happen over the next 3 to 5 years?
