Throughout the past few weeks the Chinese banking regulators have intervened on several occasions to put a halt on some innovative products, including virtual credit cards provided by third-party providers and e-commerce companies. At the end of March, People’s Bank of China also announced that it would cap amounts the Chinese can spend using smartphone payment services.
While financial innovation from bank and non-bank actors can create new kinds of risks for consumers, it can also create huge opportunities for the financial sector to expand scale and reduce transaction costs. A recent CGAP report China: A New Paradigm in Branchless Banking? explores how China’s innovative payment ecosystem could significantly deepen financial access in the country, where more than one hundred million people live in poverty and over sixty percent of the poorest population segment has no access to formal banking services.
Photo Credit: Reza Golchin
by Phil Martie
Turn on your disruptive light and start creating substitutes.
Disruptive innovation isthe creation and deployment of substitutes. Disruption is great for your customers, both internal and external, because it completely eliminates processes that are time-consuming and expensive by replacing them with something better. It is also great for you because your competitors are mostly offering products and services that do not replace those bad processes, but merely perform them a little better or cheaper. Being disruptive is a magical feeling and it builds your legacy. Being a little faster or cheaper is a dogfight – it burns you out and is not very valuable to your customers.
Think about critical paper documents: it’s safer and cheaper to ship them via overnight carrier than US Mail, so there is some incremental value in overnight services. But it’s totally disruptive to the entire process of executing critical documents to never use paper at all. The big picture goal of the customer isn’t to print and ship something, it is to execute a contract, serve official notice or record history. So why spend your valuable energy and talent on helping them print and ship a little better when you can design a substitute to help them execute contracts better? By focusing on the big picture goals of your customers, you can design great substitutes. The more processes and outputs your creation eliminates, the more value it has and the more disruptive it is.
Disruptive innovation is relevant to everyone, not just companies developing new technology or services. It scales perfectly from individual contributors all the way up to executives and companies as a whole. Your role, regardless of how small it is, carries some level of empowerment with it. Use every ounce of that empowerment. Understand what your customer’s (i.e. recipient of your output) big picture goal is and then answer this question:
What can I change about my process and output that creates a substitute?
This is big picture vision, so don’t hold back with the ideas. The nuts and bolts of how it gets executed are important later (that’s where small picture vision comes in). If you are a rock star performer, your ideas will be well-received and you are on your way to building a disruptive legacy.
Source : http://megadisrupter.com
by Scott Anthony
(Follow him on Twitter at @ScottDAnthony.)
Readers in industries where the pace of change has slowed and ambiguity has decreased, please stop reading. This post isn’t for you.
Everyone still here? Thought so. An interconnected world where technology advances at a dizzying pace and new companies emerge, scale, and decline in the blink of an eye means never a dull moment for corporate leaders. Despite conceptually understanding that this change mandates fresh strategic approaches, Roger Martin (among others) has highlighted the mistakes companies continue to make by relying on processes and tools honed in a differently paced era.
One of the most frequent challenges we observe in the field is that companies tend to radically underestimate the threat that disruptive change poses to their business.
For example, back in early 2005, I and my colleague Clark Gilbert (now the CEO of Deseret News and Deseret Digital) ran a workshop for 100 top executives in the U.S. newspaper industry. The sentiment in the room was clearly triumphant. Pundits had proclaimed that the newspaper industry was a shuffling dinosaur as the commercial Internet took off in the late 1990s, yet most companies still had healthy financial statements and stable balance sheets. We saw it differently, describing to industry leaders the need to radically change in response to disruptive content models (later that year, Huffington Post and YouTube were founded) and emerging advertising models like Google’s search-based advertising.
From February 9 to 19, eight young innovators from eight European countries (Belgium, France, Germany, Hungary, Portugal, and Romania) will embark on the Innotour USA, a ground-breaking tour of innovation centres across the United States.
At a turning point in the European economic crisis, the focus is now on growth and engagement of the disenfranchised, particularly young people, the self-employed and the unemployed. In this context, the delegation of young entrepreneurs led by the European Young Innovators Forum (EYIF) will advocate the innovation agenda and open a dialogue with their American counterparts to empower European youth to address the challenges associated with fueling new growth paradigms through innovation.