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The Bleeding Edge & The Leading Edge: Using Innovation to Move Your CU Ahead of the Curve Jackson Hataway, Ph.D. Strategic Arts & Sciences
Our Buckets for the Day • • • •
What We Want The Chokepoints The Tactics The Strategy
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The traditional business model for banking services will NEVER recover. If you have to do more with less, you have to move faster and leverage data.
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Strategy
This isn’t just about innovation. This is about strategy. Core Apply Adapt S t r a t e g i c
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Strategy Strategy isn’t about choosing an option. It’s about creating more options. Today’s market demands interconnection – internally and externally.
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Innovation Before Our Eyes
email Satellite TV Home Video Stored Value Cards ATMHome Alarms PC
Credit Card Cable TV
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Mobile phone
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DVR iPhone Aircards Slingbox Consumer Remote Capture Videos on Demand Broadband Internet iTunes eTrade MP3 PlayerSatellite Radio X-Box 360 Napster eBayNetflix Facebook Online SpeedPass VoIP Banking OnStar GPS DevicesOnline H.S.A. Internet EBPP PayPal Transit Cards Peapod Blackberry Toll TiVo Passes
1990
2000
2010E
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Rapid Innovation Who remembers…
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Who now has…
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What That Means for Markets
59%
24%
Companies who make the first prototype make the first sale
Companies that make that sale and go on to “macrocommercialize” the product
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Golder, Shacham, and Mitra, Marketing Science 28(1)
The Rhythm of the Business
3 months
3 weeks
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3 . 2 8 . 2 0 1 1
300,000 signatures in 4 weeks 3 . 2 8 . 2 0 1 1
Driving Forces
Past/Current
Slow and Steady Maintain and Support
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External Adopt and Deploy
Future
Develop Opportunities Internal
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The Steve Jobs Story
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Brain Drain
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3 . 2 8 . 2 0 1 1
Nielson, 2011
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What I Learned from 30 Rock… …was way more important than what I learned in school. Innovention
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Changing the Rules Where We Are Now
Complexity If we wanted complexity, we were willing to spend the time.
If we wanted ease of use, we accepted that we would have more “stuff.”
Where We’ve Been S t r a t e g i c
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Intuitive Usability
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The Zone of Consumer Expectations Listen More The data is there. We have to make it usable and we have to use it. YOU HAVE THE MOST VALUABLE DATA. Data is the new black.
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The Zone of Consumer Expectations Solve Problems New studies show that the number 1 factor in customer satisfaction is problem solving. They want a house, not a loan.
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The Zone of Consumer Expectations Be Sticky Capture customers with sticky products like online banking platforms and apps that show me a lot of information instantly. Make it hard for me to leave.
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The FI World Doing MORE with LESS is the strategy. Innovation is a MUST
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The I-Generation Cool word of the day #1: Bricolage The ability to synthesize information from a vast array of sources quickly and intuitively to arrive at a conclusion. S t r a t e g i c
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“The next wave will be defined by technology that works on our behalf, not at our request…”
The I-Generation
They are emotionally driven and can share those emotions instantly. Technology is their capital. The average child in the US has a cell phone by age 8 – an interesting strategic point…or just frightening? S t r a t e g i c
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The I-Generation Email is SO slow. What’s a stamp? Computers have never lacked a CDROM disk drive. They’ve been texting 4 evr! “LOL” “TTFN” “GTG” “BRB” “OMG” “IMHO” “HAND” “WTF” In 2009, Boston College stopped giving incoming freshmen e-mail addresses. S t r a t e g i c
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Teams Make A Difference
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Playing – Or How Google Got Rich
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The I-CU Cool word of the day #2: Liminality Location, location... Online and social networking digital integration S t r a t e g i c
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The Future of Branches • Video placeholder
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Innovation and Vision
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People do this in their spare time…
This is free for you S t r a t e g i c
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Social Media Only 8 out of 100 users wants to receive sale information through social media platforms. Experience Value Narrative S t r a t e g i c
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Social Media Guessing Game • • • • • • • • • • • •
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Facebook Twitter MySpace Groupon Foursquare Yelp Urbanspoon Digg YouTube Video Bomb Panjea Pandora S t r a t e g i c
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Trip Advisor Groople TrekCafe Teenwag Wikipedia Dzone eFans FanNation LinkedIn PhotoBucket Flickr Google
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Stumbleupon Reddit Bebo Tagged Flixter Epinions Faves Ping Kaboodle
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Where do we go from here? • Succession planning... …tell my boss that • Go back to the “way it was” • Service and channels in the digital era
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Please contact me if you would like a copy of the presentation.
Jackson Hataway, Ph.D. jackson@easci.com
Contact: Kelly Smith 541.345.5764 kelly@easci.com
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