Open Innovation Ecosystems (eBook)

Creating New Value Constellations in the Financial Services

Daniel Fasnacht (Autor)

eBook Download: PDF

2018 | 2nd ed. 2018
XXXVIII, 283 Seiten
Springer International Publishing (Verlag)
978-3-319-76394-1 (ISBN)

Infos

Sharing information and knowledge, co-innovating with clients, communities, and competitors and adopting cognitive technology, robo advisors, crowdfunding, and blockchain reflect current socio-economic behaviour. Emerging growth regions in Asia, demographic shifts, intergenerational wealth transfers and increasing regulations are other trends that amplify each other, disrupt the client journey, and affect the entire economy.

Moreover, unprecedentedly, new market entrants outside the financial sector, be it Amazon, Apple, Google, or Facebook, are increasingly expanding their scale and scope to offer financial services. Featuring case studies of Chinese business ecosystems, such as Alibaba/Ant Financial, that have transformed from displaying domestic and organic growth to rapid global expansion, this highly readable book gives you glimpses of how banking services are evolving. We break down everything you need to know about the foray of challenger banks into the financial services. You learn how they link health to wealth data and gain advantages through analytical capabilities in the race to attract sophisticated clients with highly personalized experiences.

The next level of creating and capturing value for clients and businesses involves platform models embedded in cross-sector ecosystems. Digital platforms are the crucial entry point to global markets, creating value for multiple sides. They leverage self-driving ecosystems that go beyond linear value chains applied in traditional business models as the sources of growth in an interconnected world are collaboration and network effects.

The winners will be those who open up and engage themselves in an ecosystem that transcends organizational boundaries and performs without sector borders because every actor contributes to the value constellation of the system.

The book provides practitioners and scholars with new insights into open and holistic business models, where competition in future will be between ecosystems rather than at the company level. It encourages leaders to expand their skills and think through the lens of the ecosystem theory while developing compelling strategies to serve the next-generation clients.

Daniel Fasnacht is a thoughtful leader with more than 25 years of professional experiences in the financial services industry. He began his career at SAP and Accenture, where he advised clients and led complex projects around the globe. Later, he worked for large private banks like Credit Suisse and Julius Baer, delivering value propositions and serving international high net worth individuals and families. Recently, he has been engaged as chief executive officer, developing small asset managers in Switzerland. He is the founder of Ecosystem Partners Ltd., a promotion and consulting firm for innovativeness and swissness.

During his Ph.D. research, he came across the concept of open innovation in 2002 and was one of the first who adopted Professor Henry Chesbrough's early work from the manufacturing and high-tech industry in the Silicon Valley to the financial services with the thesis title Open Innovation: A Case Study in the Banking Industry. He published his first book Open Innovation in the Financial Services: Growing Through Openness, Flexibility and Customer Integration in 2009 by Springer. He understands the disruptive challenges of the banking, wealth, and asset management industry and has always strived to find innovative strategies, be it in practice or through dozens of articles and speeches.

Daniel Fasnacht holds degrees in information management, an MBA from the University of St. Gallen, Switzerland in collaboration with the University of Berkeley, Haas School of Business, USA, and a Ph.D. in Strategic Management from the University of Nottingham, UK.

Inhalt

Foreword 7
Preface 12
Acknowledgements 16
Introduction 17
Aim of the Book 17
Openness, Flexibility, and Adaptation 18
The Financial Services Industry 19
The Open Innovation Ecosystem 22
Insights from the Book 23
Contents 27
Case Studies/Use Cases 32
About the Author 33
1: Preparing for the New Reality 35
1.1 Radical vs. Incremental vs. Disruptive 35
1.2 The Paradigm Shift 39
1.3 Mastering the Transformation 41
Case Study Wells Fargo: Organizational Renewal and Transforming Towards Digital Banking 41
1.4 International Financial Centres 43
1.5 Financial Services Quo Vadis? 46
1.6 We Live in a Digital Service Economy 49
1.7 Banks Are in Decline but Are Necessary 51
1.8 What Is the Role of Fintechs and Non-banks? 53
1.9 Conclusion 57
2: Disruptive Trends 58
2.1 Understanding the Drivers of Strategic Change 58
2.2 Market 60
2.2.1 Overview 60
2.2.2 Wealth Growth 60
2.2.3 Reordering Global Trade with the New Silk Road 61
2.2.4 Competition and Consolidation Driven by Non-banks 63
2.2.5 Impactful Demographic Changes 64
2.3 Client 67
2.3.1 Overview 67
2.3.2 New Client Service Models 68
2.3.3 Clientele with New Behaviour 71
2.3.4 The Inevitable Wealth Transfer 73
2.3.5 New Offering Required 75
2.4 Regulation 76
2.4.1 Overview 76
2.4.2 Regulations Stabilize Financial Markets 77
2.4.3 The Global Thread of Shadow Banking 78
2.4.4 New Markets, New Regulations 79
2.4.5 The Era of the Bank-Client Confidentiality Is Over 80
Case Study: The History of the Swiss Banking Secrecy 81
2.4.6 Money Laundering and Terrorism 83
2.4.7 How to Regulate Fintechs 84
2.5 Technology 86
2.5.1 Overview 86
2.5.2 Innovative, Transformational, Disruptive 87
2.5.3 The Rise of Cognitive Technologies 87
2.5.4 Robo-advisory and Automated Investment Platforms 90
2.5.5 Crowdfunding Is a Serious Trend 92
2.5.6 Blockchain Can Transform Finance 95
2.6 Disruptive Trends Create the New Landscape 98
3: Strategic Choices for Growth 102
3.1 Understanding Growth 102
3.2 Understanding Profitability 105
3.2.1 The Profitability Paradox 107
3.2.2 Achieving Profitable Growth 109
3.3 Growing Through Acquisitions 111
Case Study Julius Baer: Swiss Heritage with Second Home Market Asia 112
3.4 Global Expansion Strategies 115
3.5 Asset Management Is All About Size 117
3.6 Rising to Prominence 119
Case Study UBS: How to Become the Largest Wealth Manager 120
3.7 Encouraging Growth 123
3.7.1 The Chief Growth Officer 123
3.7.2 The Chief Marketing Officer 125
3.8 New Business Risk Management 127
4: Open Innovation in the Financial Services 129
4.1 Understanding Innovation 129
4.1.1 Innovation Is the Magic Bullet 129
4.1.2 Invention First, Innovation Second 130
4.1.3 Types of Innovation 132
4.1.4 Defining Products and Services in Banking 133
4.1.5 Special Characteristics of Service Innovation 133
Case Study Bank of America: Turning Branches into Laboratories 135
4.1.6 Only the Combination Creates Value 137
4.1.7 Key Innovations in the Financial Services 139
4.1.8 Innovate or Die 142
4.1.9 Client Value Innovation 143
4.1.10 Imitation 144
4.2 The Need for Open Innovation 146
4.2.1 The Traditional Innovation Paradigm 146
4.2.2 Borderless Innovation Processes 147
4.2.3 It Is All About Collaboration 149
4.3 Open Innovation Is Symbiotic 150
4.3.1 What Does Open Mean? 150
4.3.2 The Open Model of Innovation 152
4.3.3 White Labelling 154
Case Study Deutsche Bank Asset Management: The White Label Investment Software Engine 155
4.4 The Challenges of Open Innovation 156
4.4.1 Controlling 156
4.4.2 Measuring 159
4.5 The Next Level of Open Innovation 161
5: Open Innovation Ecosystems 163
5.1 Defining the Ecosystem 163
5.1.1 Types of Ecosystems 163
5.1.2 Network Effects and Hyperconnectivity 164
5.1.3 Creating Value in an Ecosystem 165
5.1.4 Dynamic Value Constellation 166
Use Case: Value Constellation for Portfolio Construction 167
5.1.5 The Advantages of an Ecosystem 169
5.1.6 The Roles of the Ecosystem Members 170
5.1.7 Managing the Innovation Ecosystem 179
5.2 Tapping into Regional Ecosystems 182
5.2.1 Large and Small Ecosystems 182
5.2.2 The Silicon Valley 183
5.2.3 The Crypto Valley 186
Case Study: The Crypto Valley Ecosystem 187
5.3 Alternative Ecosystems 189
Case Study: The Financial Inclusion Ecosystem 190
5.4 Cross-Sector Ecosystems: Fast Scaling Growth 191
5.4.1 The Big Fusion 191
5.4.2 Technology-Based Ecosystems 192
5.4.3 The Winner Takes It All 193
Case Study Alipay: Seamless Integration of Payments Services into a Wide-Ranging Ecosystem 195
Case Study Yu´e Bao: How to Become the Largest Mutual Fund in 5 Years 197
5.4.4 Success Factors of an Ecosystem Incubator 198
5.5 Competing in a World of Ecosystems 201
5.6 Conclusion 203
6: Businesses with Ecosystem Mindset 205
6.1 Business Model Innovation 205
6.1.1 Adaptation 205
6.1.2 Agility and Flexibility 206
6.1.3 Focus on Value Creation for Clients 207
6.1.4 Independency, Transparency, and Efficiency 208
6.2 Different Models for Automated Investments 210
6.3 The Right Ecosystem Strategy 211
6.4 Enhancing the Client Journey 212
6.4.1 How to View the New Clientele 212
6.4.2 Dynamic Client Segmentation 214
6.4.3 Combine Predictive and Cognitive Capabilities 215
6.4.4 Differentiate with Niche Business Models 217
Case Study: Islamic Finance 217
6.4.5 New Ecosystems for New Clientele 220
Case Study NatWest: Leveraging the Ecosystem to Educate, Inspire, and Connect Women in Business 221
6.4.6 Turning Consumers into Clients 224
6.4.7 Trust Remains Important in the Digital World 226
6.5 Capturing Value in the Ecosystem 228
6.5.1 Product Development with Platform Data 228
Case Study Nectar: The Making of an Investment Product Out of Big Data Using Cognitive Technologies 229
6.5.2 Systematic Investment Strategies with Smart Data 231
6.6 Blockchain as a New Asset Class 231
6.7 Blockchain as a Leaver for Operational Efficiency 233
6.8 Shifting the Mindset 234
7: Ecosystem Services 237
7.1 Disruptive Trends and Strategic Change 237
7.2 Required Services 238
7.2.1 Open Innovation Culture 239
7.2.2 Boost New Ideas in Open Space 240
Use Case: Accelerating New Ideas Through an Innothon 242
7.2.3 Ambidextrous Innovation Capabilities 243
7.2.4 Mastering Efficiency, Innovation, and Collaboration 245
7.2.5 The New Design for Innovation Ecosystems 246
7.2.6 Feeding the Ecosystem with Entrepreneurs 247
Case Study ETH: Fostering Entrepreneurs at the University 247
7.2.7 Managing the Ecosystem with Intrapreneurs 249
7.2.8 Run the Business and Change the Business 252
7.2.9 Social Capital Is Building Collaborative Intelligence 253
7.2.10 Benefits of Social Capital 254
7.3 Learning from Ecosystems 255
7.4 Becoming an Ecosystem Leader 256
7.4.1 New Roles Required 256
7.4.2 The Chief Innovation Officer 257
7.4.3 Strong Management Commitment 259
7.5 Conclusion 260
8: Banking for the Next Generation 262
8.1 The World Is Changing 262
8.2 Chinese Ecosystems Will Transform Financial Services 263
8.3 The Impact on Businesses 264
8.4 What About the Far Future? 267
8.5 Finding the ``New´´ 268
Case Study UBS Y: A journey Beyond the Year 2030 268
8.6 Blueprint of the Futures 270
8.7 Living in a Social Credit System 271
8.8 Floating in the Ecosystem 272
9: The Way Forward 275
9.1 Invite Challenges to Renew the Organization! 275
9.2 Encourage Growth and Remain Profitable! 275
9.3 Understand the Macroeconomic Changes! 276
9.4 Embrace Disruption! 276
9.5 Learn from the Challengers! 277
9.6 Comply with the Rules! 277
9.7 Don´t Be Afraid of Robots! 278
9.8 Invest into Artificial Intelligence! 279
9.9 Evaluate Peer-to-Peer Platforms for Lending and Funding! 279
9.10 Find Monetization Opportunities with Blockchain! 280
9.11 Define and Measure Open Innovation! 281
9.12 Bring Innovation to Your Ecosystem! 281
9.13 Create and Capture Value in the Ecosystem! 282
9.14 Focus on Data in the Ecosystem! 282
9.15 Treat Data with Upmost Care! 283
9.16 Realize Businesses with an Ecosystem Mindset! 284
9.17 Provide an Open and Innovative Environment! 285
9.18 Think Differently! 285
9.19 Foster Social Capital! 286
9.20 Develop Blueprints of the Futures! 287
9.21 Adopt Trailblazing Ecosystem Strategies! 287
Concluding Remarks 289
Glossary 295
Index 306

Produkt-Details

• Erscheint lt. Verlag: 19.11.2018
• Reihe/Serie: Management for Professionals
• Reihe/Serie: Management for Professionals
• Zusatzinfo: XXXVIII, 283 p. 10 illus. in color.
• Verlagsort: Cham
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Logistik / Produktion
• Schlagworte: Banking • Change • Client Integration • Financial Services • FinTech • growth strategy • knowledge management • Open Banking • Open Innovation
• ISBN-10: 3-319-76394-6 / 3319763946
• ISBN-13: 978-3-319-76394-1 / 9783319763941