Customer services and customer satisfaction are the prime objective of any service organization. Information and communication technology has furnished go-up to new innovations in the product designing and their delivery in the banking and finance industries. The transformation has been very productive for banks bringing in an increase in productivity and organizational efficiency to be more competitive.
Banks have no alternative but to employ wireless solutions in device-independent and network-agnostic ways in responding to the customers demanding ‘anytime and anywhere’ access to their money and financial information. With a view to providing a better and quality customer services with the help of new technologies modern banking sector
…show more content…
In general, the word innovation refers to the creation of new products and/or services. According to Michael Vance “Innovation is the creation of the new or the re-arranging of the old in a new way”. Peter Drucker defined Innovation “as change that creates a new dimension of performance”.
From organizational perspective, it is said that innovation fosters an organization to grow, prosper & transform in synchronization with the changes in the environment, both internal & external. Banking is no exception to this. In fact, this sector has witnessed radical transformation of late, based on many innovations in products, processes, services, systems, business models, technology, governance & regulation.
Therefore, innovation in banking sector may be referred as a process for introducing new ideas, workflows, methodologies, services or products in banking activities. In banking sector, the term innovation may refer to both radical and incremental changes to products, processes or services of a bank. Innovation is a catalyst for the growth and success of banking sector and it can help a bank adapt and grow in the marketplace. Being innovative does not refer to inventing: innovation can refer to changing the model of banking activities and adapting to changes in its environment to deliver better products or services. While a novel device is often described as an innovation, in banking sector innovation is generally considered to be a
…show more content…
This paradigm shift in banking operations is well-known as modern banking. For the past two decades, the banking sector has chosen a new service channel based on the progress of information technology-electronic devices to respond to the changes in customer preferences and needs, increasing competition from non-banks, changes in demographic and social trends, and government deregulations of the financial service sector (Byers and Lederer, 2001). This new way of performing banking activities is called modern
Innovation is connected to the three strategies described above but it often involves more important changes to the product or service. As a strategy, it can imply the replacement of existing products with ones which are actually new, as opposite to correction and which imply a new product
In the article “Difference Between ‘Invention’ and ‘Innovation’”, Tom Grasty claims that invention is creating a new thing, while innovation is making change and contributing something new based on existing things. I agree with him. “Invention” is to create something from nothing, and it emphasizes “the first”; “innovation” is to make something better. Moreover, since every company has different status and resources, “innovation” might not be the first one, but it could not be exactly the same. Another point is that we can distinguish inventions from their positive and negative impact. The positive one is like computer, which improves technology development; the negative one, like computer virus, destroys people’s data. However, “innovation”
Innovations are all over this world. Everything from the cash register, to the credit card that we use to buy the things that we desire the most. In this paper it will show how the innovation used can make one company were successful, then on the other hand how the other company chose not to keep up with innovation, which caused a decrease in sales.
The banking industry is under pressure in today’s business climate. Banks have been through big changes. There is opportunity, but there is also increasing competition. To be the preferred bank means changing “good enough” into a unique value proposition. And that means changing the way people have always done things, change on this level requires cutting edge technology. Change cannot be achieved with a simple directive or surface adjustment especially within the banking industry. It requires an innovative rethink of the entire system, in a strong partnership between bank leaders and their change agents. New systems and policies must support the strategy to be successful. The real test of a good strategy implementation plan is whether the people understand the strategy, are motivated and enabled to implement it, and actually start achieving its goals.
Innovation comes in different forms and relates not just new products but new systems and processes followed to attract or differentiate their products and services with their competitors. One such could be Coca-Cola’s Share a coke campaign which was highly influential in creating a new base for their customers and gave them huge publicity. Hence innovation does not mean just the products but every other
Innovation is defined as generation of new ideas or application of new ideas to existing situations to improve productivity, quality of care, and outcomes. Some of the principles of innovation are creative problem-solving; open, assertive communication to empower
And how does it affect the company’s overall performance? There are numerous types of innovation, with some to be outlined, while others discussed in the following paragraphs with various workplace scenarios. Process Innovation is something that most people are familiar with, in which
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
Change and innovation has become one of the basic concepts in the modern organizations. An organization’s competitiveness is determined by its desire to embrace innovation or introduction of new and/or modified products in the market. Managers of the top performing organizations manage them in such a way that they are able to derive maximum gain from its human and technical resources though prompt and effective responses to the business challenges identified. Maximum utilization of the human resources implies that the company must be able to exploit the skills as well as the imagination of the personnel in order to promote innovativeness from all dimensions of the organization. Through this process, an organization will be in a place itself in a position that effectively promotes continued innovation of new products and services for the market. However, it is important to note that organizations must be able to analyze critically their environment in order to identify the existing opportunities and problems. Innovation should be directed towards satisfying a particular need or solving a particular problem. Otherwise, the innovation may not contribute in any way to an organization’s success.
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
1).Innovation Management:Innovation Management is the form of looking into future, of being creative, imaginative .It is used in the growth of product and also organizational innovation. It also includes tools which allows higher management & engineers to communicate with basic understanding of goals and its processes .Its main focus is to allow the organization to react quickly occurring within an organization, using its efforts to implement new ideas or its products. It also involves persons in contributing to the development of the companies manufacturing and also its marketing. Through development also innovation process can be done. There are two types of process involved in innovation management one is pulled and the other is pushed. Pushed process is the one in which the organization uses its technology to discover profitable applications. Pulled process is the one in which the focus is mainly in developing the efforts to find the solutions. There are two phases in innovation management .First phase includes design of the innovation and second phase includes the implementation. Internal bench marking can be established to measure the innovation. Managers should focus on ones attention on innovation cause to be necessary to infer something from information received on the complexity.
One of the reasons why banks adopted this new system, was the ‘boom’ in online shopping and the need for an online payment platform. For the bank themselves, online banking reduces customer service staffing levels, as well as improving speed and flexibility of business transactions. (Shih and Fang, 2004)
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified