In the next issue of Dialogue magazine, international management expert Joe Divanna explores the science of innovation in business and in banking. In an exclusive extract from his major feature article, here are his six great myths about innovation – make sure you don’t fall for them.
To know what innovation is, you first need to know what it’s not. To understand how to establish a strategic agenda for innovation let’s examine some of the greatest myths that surround it.
· The lion’s share of technological innovation comes from developed economies
· The primary goal of a new technological solution is to do everything that the old system did
· The justification for innovation can be nebulous; we are innovating to keep up with the competitors
· Everyone adopts technology because it’s cool
· All customers want the same solutions
· All customers want the latest technology
When companies fail it’s because they have misunderstood how to apply technological solutions to their customer’s value proposition. For example, in banking it is assumed that everyone wants online banking. This may be true, but do all customers want the same kind of online banking?
Is the value proposition for online banking to wealthy customers the same for the middle class or working poor?
Does our implementation of online banking merely replicate what we used to do manually at a branch? Is this type of implementation really innovation – or simply automation? I’ll be exploring these themes and many, many more in the next edition, out in September.