Innovation and the Future Proof Bank: A Practical Guide to Doing Different Business-as-Usual

336 Pages·2009·2.642 MB·English

by  James A Gardner

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Innovation and the Futureproof Bank
A practical guide to doing different business-as-usual
Dr James Gardner
A John Wiley and Sons, Ltd., Publication
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Innovation and the Futureproof Bank
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Innovation and the Futureproof Bank
A practical guide to doing different business-as-usual
Dr James Gardner
A John Wiley and Sons, Ltd., Publication
iii
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FM JWBK404-Gardner July17,2009 19:28 Printer:Yettocome
(cid:1)C 2009JohnWiley&SonsLtd
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LibraryofCongressCataloging-in-PublicationData
Gardner,James.
Innovationandthefutureproofbank:apracticalguidetodoingdifferentbusinessasusual/JamesGardner.
p.cm.
ISBN978-0-470-71419-5(cloth)
1.Banksandbanking. 2.Technologicalinnovations. I.Title.
HG1601.G372009
332.1–dc22 2009021629
AcataloguerecordforthisbookisavailablefromtheBritishLibrary.
ISBN 978-0-470-71419-5
Typesetin10/12ptTimesbyAptaraInc.,NewDelhi,India
PrintedinGreatBritainbyCPIAntonyRowe,Chippenham,Wiltshire.
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Contents
ListofTables ix
ListofFigures xi
Preface xiii
1 Introduction 1
Whatyouwillfindinthischapter 1
1.1 Whatisinnovationanyway? 3
1.2 Whathappenswhenyoudon’tfutureproof 8
1.3 Fivethingsthatinnovationisnot 10
1.4 150yearsofinnovationinbanks 15
1.5 Theinnovationdownside 22
1.6 Anoverviewofthefutureproofingprocess 23
1.7 Wheretogonow 29
2 InnovationTheoriesandModels 31
Whatyouwillfindinthischapter 31
2.1 Theinnovationadoptiondecisionprocess 32
2.2 Personalinnovativeness 38
2.3 Innovationfromtheperspectiveofthemarket 41
2.4 Characteristicsofinnovations 45
2.5 Innovationfromtheperspectiveofthefirm 50
2.6 CaseStudy:Theinternaladoptionofsocialmedia 57
2.7 Theoryofdisruption 59
2.8 CaseStudy:PayPal’scontinuingdisruptionofthepaymentsmarket 63
2.9 Thoughtsbeforegoingfurther 65
3 InnovatinginBanks 67
Whatyouwillfindinthischapter 67
3.1 Theinnovationpentagraminbanks 67
3.2 TheFiveCapabilityModelofasuccessfulinnovationfunction 75
3.3 CaseStudy:InnovationatBankofAmerica 85
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3.4 Buildingoutthefutureproofingprocess 89
3.5 Technology,business,andinnovation 93
3.6 Autonomicinnovation 102
3.7 CaseStudy:ChangeEverything,aprojectbyVancityinCanada 104
3.8 Thebankinginnovationchallenge 106
4 Futurecasting 107
Whatyouwillfindinthischapter 107
4.1 Thepurposeoffuturecasting 108
4.2 Anoverviewoffuturecasting 111
4.3 Whatfuturecastsshouldinnovatorsbedoing? 112
4.4 Anexample 114
4.5 Constructingthefuturecastwithscenarioplanningmethods 119
4.6 Predictionmethods 125
4.7 CaseStudy:AMP’sInnovationFestival 131
4.8 Somefinalwordsaboutfuturecasting 133
5 ManagingIdeation 135
Whatyouwillfindinthischapter 135
5.1 Anoverviewoftheideationphase 136
5.2 Campaignandcreate 137
5.3 Collect,catalogue,andcompare 140
5.4 Scoring 143
5.5 Customerinsight 153
5.6 Customerco-creation 155
5.7 CaseStudy:RoyalBankofCanada’sNextGreatInnovatorChallenge 156
5.8 Concludingremarks 157
6 TheInnovationPhase 159
Whatyouwillfindinthischapter 159
6.1 Shouldwe?Canwe?When? 160
6.2 Theinnovationportfolio 163
6.3 Whathappensnext? 171
6.4 Toolsfor‘Shouldwe?’ 173
6.5 Toolsfor‘Canwe?’ 176
6.6 Toolsfor‘When?’ 182
6.7 Sellinginnovations 185
6.8 CaseStudy:BankofAmericaandtheCentreforFutureBanking 188
6.9 Wrappinguptheinnovationphase 191
7 Execution 193
Whatyouwillfindinthischapter 193
7.1 Waystomanageexecution 194
7.2 Buildingthenewthing 198
7.3 Thelaunch 208
7.4 Operationspost-launch 213
7.5 Signalsforfuturecasting 222
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7.6 CaseStudy:InnovationMarket 223
7.7 Theendoffutureproofing 225
8 LeadingInnovationTeams 227
Whatyouwillfindinthischapter 227
8.1 Leadershipstyles 228
8.2 Thingstheleadersshoulddo 235
8.3 Signsofabadinnovationleader 240
8.4 Whatnext? 244
9 TheInnovationTeam 247
Whatyouwillfindinthischapter 247
9.1 Thechangingshapeoftheinnovationworkforce 247
9.2 Creators,embellishers,perfectors,andimplementers 253
9.3 Teamworking 256
9.4 Wheninnovatorsgobad 261
9.5 Alastwordaboutinnovationteams 265
10 ProcessesandControls 267
Whatyouwillfindinthischapter 267
10.1 Oversight 268
10.2 Metrics 271
10.3 Rewardsandrecognition 275
10.4 Innovationandtheorganisation 277
10.5 Fundinginnovation 280
10.6 Thevisiblefaceofinnovation 283
10.7 Andfinally... 284
11 MakingFutureproofingWorkinYourInstitution 285
Whatyouwillfindinthischapter 285
11.1 CaseStudy:CivicbankingatCajaNavarra 285
11.2 Startingyourinnovationprogramme 287
11.3 Makingideationwork 290
11.4 Theinnovationstage 294
11.5 Execution 297
11.6 Doingfuturecasting 300
11.7 Innovationleadersandteams 302
SomeFinalWords 305
References 307
Index 311
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