The number of patents issued in the US is increasing by approx 25% a year

Home > Archives

Tagged Gen-connect



In my keynotes, I often talk about how the rate of change — whether with business models, product life cycles, the rapid emergence of new competitors, business model disruption, skills and knowledge and more!  — is speeding up. With such change, there’s a lot of uncertainty within many industries as to what to do next: a senior executive of one client commented to me from his perspective, “….entities are engaged in survival tactics because they don’t know what to do next ….”

volvo-givemeyourmind550

Here’s a simple reality: Innovation is all about adapting to the future — and if the future is coming at you faster, then you need to innovate faster.

Given that, innovation shouldn’t be about trying to survive the future — it should be about thriving.

At a recent keynote to senior executives, I outlined some truths as to the future:

  • It’s incredibly fast: Product life cycles are collapsing. It’s said that half of what students learn in their freshman year about science and technology is obsolete or revised by their senior year. There are furious rates of new scientific discovery. Time is being compressed.
  • It involves a huge adaptability gap: Earlier generations — boomers — have had participated in countless “change management workshops,” reflecting the reality that many of them have long struggled with change. Gen-Connect — today’s 35 and under — will never think of change management issue. They just change.
  • It has a huge instantaneity: The average consumer scans 12 feet of shelf space per second. Most news becomes old hat within 36 hours of emerging. Rapid prototyping, 3D printing and the maker community mean that a product can go from conception to reality in a matter of weeks – if not days. We live in the era of the rapid idea-cycle.
  • It hits you most when you don’t expect it: Every organization must deal with two realities: the rapid emergence of new technologies, and the sudden adoption of old-hat ideas. If you want to understand what comes next, study Gartner’s concept of “hype-cycles”
  • It’s being defined by renegades and rebels: Increasingly, the future of many an industry is being defined by industry expatriates. When a real innovator can’t innovate within a company, they step outside, form a startup, and spark massive industry change on their own. Before you know, they’ve reinvented you, whether you like it or not
  • It involves partnership: Old business models involved asking, “what can we do to run our business better?” The new business model is this: “What can we do to run our customers, suppliers and partners business better?
  • It involves intensity: 80% of the revenue from the typical video game is earned within 4 to 5 days of release. That’s becoming the norm in many industries — although not in days, but perhaps months. Companies are discovering their new reality involves short, sharp shocks of revenue, followed by a need to constantly re-asses and reinvent. We must learn to run our business at video-game intensity: in fast paced markets, we need fast paced business capabilities!
  • It’s bigger than you think: I used to joke, back in 2003,  about a futuristic GoogleCar, and an era in which Silicon Valley would become the new centre of the automotive universe. With self-driving cars and other efforts, its not a joke anymore. Every industry is witnessing similar levels of disruption and acceleration. Complacency is a dangerous thing, particular when every organization is faced with constant, relentless external innovation from unexpected competitors.
  • It involves innovation intensity: With rapid change, everyone in an organization must innovate. Some years ago, I appeared on a the CNBC Business of Innovation show. It featured a lot of “innovation elitists” who seemed to indicate that only special people can “do” innovation. Wrong : thriving in the future has a leadership that involves everyone in innovation. No idea is too dumb, no opportunity is too small. In an era of fast change, organizations must be relentlessly innovative, and that requires drawing on the skills and creativity of everyone
  • It comes from experiential capital: With a fast future, you must learn and relearn. Corporate equity isn’t just money: it’s the cumulative experience and knowledge of the team. Yeas ago, Verizon took a lot of abuse from analysts for its’ big fiber optic bet, yet here’s what I see: the CEO stating that the cost of installing fiber dropped 30% in 2005, and that there was a further reduction of 15-20% by  2006. By the end of end of 2006, they expected it to cost 1/2 that of 2005. The more they do, the better they get. That’s experiential capital, and that’s an invaluable asset.

The future is going to hit you whether you like it or not; it’s your approach to it, and how you innovate with it, that defines your future success.

Creating a Great Keynote!
November 15th, 2016

During a call yesterday, a client was asking whether I could customize my talk for their group.

Are you kidding?

Here’s a good case study of the typical process that I goes through.

This particular organization was in the retail space; through conversations with several member of global management, we built a list of the key issues that I would focus in on my talk: these being the key issues that the leadership believed that the rest of the team need to be thinking hard about.

  • faster emergence of new store infrastructure : i.e. contact-less payment technology is a fact with iPhone’s, and other smart-phones. What happens when this occurs on customer interactions ; how quickly can a retail / restaurant organization scale to deal with it (i.e. rapid technological innovation is continuing unabated despite the economic downturn, and things like this will have a big impact on how business is done!)
  • faster challenges in terms of freshness of brand image: today, with the impact of the Net and social networks, a brand isn’t what you say it it — it’s what “they” say it is
  • new influencers: consumers are influenced in terms of choice in ways that go beyond traditional advertising. For example, consider the Celebrity Baby Blog (yes, there is such a thing), and how it has come to influence fashion trends for infant wear
  • new forms of brand interaction: the concept of the “location intelligence professional” — corporations are deploying strategies that integrate location into the virtual web, interacting with above mentioned cell phones that provide for in-store product uplift
  • rapid emergence of store architecture issues: intelligent infrastructures – McDonald’s has a $100 million energy saving plan that is based on IP based management of in store energy We’re also seeing the rapid emergence of green / eco design principles that provide more opportunities for savings
  • faster evolution of consumer taste preference : new food trends go from upscale restaurant to broad deployment in as little as 18 months now, compared to 5 years ago; consumer choice changes faster, requiring faster innovation!
  • faster idea cycles. New concepts, ideas, business strategies, advertising concepts happen faster because of greater global collaboration ; brands have to keep up with the idea cycle

Next, my keynote would touch on how the client could be more innovative in dealing with fast paced trends? Some potential methods include:

  • the concept of upside / down innovation – customer oriented innovation
  • generational collaboration – how to unleash the creativity of Gen-Connect
  • concept of business agility: how do we structure ourselves to act faster
  • theme of experiential capital : how can we take on more risk oriented projects simply to build our expertise in new areas such as social networking
  • fast, global, scalable project oriented teams : how do we learn to collaborate better internally
  • innovation “factories”: how can we scale successful internal projects faster to achieve greater benefits
  • partnership oriented innovation: how do collaborate on innovation with our suppliers and others in the supply chain?

Some of the conclusions that came from the global discussions in the lead up to the event? These were responses draw from the audience through the use of online text message polling:

  • we need to learn how to innovate more locally but globally scale
  • a better “innovation factory” to rollout is critical
  • can’t compromise speed to market with structure/bureaucracy
  • spread R&D out
  • collaborate to a greater degree on an international basis
  • innovation should be part of reward and structure
  • more brand clarity, particularly given muddiness of impact of social networking
  • need a more forceful commitment ($, structure, rewards, goals) to innovation

From this, I built my keynote so that it had a structure of “what are the issues,” “what do we need to about them in terms of potential responses”, and “what are some of the organizational changes we need to make to deal with them.”

It turned out to be a great talk!

In a few weeks, I’ll keynote the Digital Now conference — it’s a get together of executives from major associations across the US.

I’ve spent quite a bit of time speaking to, and writing about, the association sector — check out the Association Trends section of my blog for more.

Deirdre Reed writes numerous articles for the association sector, and had this nice writeup on some of the issues I’ll cover in Orlando!

turtles-puttering-along-together

“The digitalNow conference is a great opportunity to get away for a few days to rethink everything in the company of curious association execs who don’t accept mere relevance.”

4 Truths About the Future of Associations
by Deirdre Reid

“Innovation” is such a buzzword now that I wouldn’t blame association execs for tuning out when they hear it. But I like Jim Carroll’s slant on it: “Innovation is all about adapting to the future.” Now, that’s something we can work with.

Jim Carroll is the opening keynote at the digitalNow conference which will take place in less than a month (April 21-23) in Orlando. The conference website says Carroll will talk about:

  • technologies and innovations that will affect association business models
  • strategies for reacting to these innovations with greater speed
  • challenges associations will face ahead

Innovating is not about surviving, says Carroll, it’s about thriving. Surviving, like relevance, is a low bar. Associations must aim higher—aim to thrive and become indispensable to their community.

Carroll lays down ten truths about the future. Let’s take a look at four of them and think about how your association is handling these truths.

The future is incredibly fast.

How can you, your staff and your board keep up? Can you adjust your business processes quickly? How long does it take to discover a need, develop a solution, and roll it out to your community?

Guillermo Ortiz de Zarate’s session at digitalNow, The Lean Startup Changes Everything, is bound to give us some ideas on how to experiment with and speed up program development. Get a sneak preview of his thinking in the white paper he co-authored with Elizabeth Engel: Innovate the Lean Way: Applying Lean Startup Methodology in the Association Environment.

The future involves a huge adaptability gap.

This one blew me away because it’s so true:

Earlier generations – boomers – have participated in countless change management workshops, reflecting the reality that many of them have long struggled with change. Gen-Connect – today’s 15 and under – will never think of <the> change management issue. They just change.”

Change management experts say it isn’t the actual change we resist, it’s the psychological transition we have to make to accommodate change, that’s the tough part. Adapting to change is a skill set, one you can teach your staff and your members. Today, knowing how to develop new skills is the most important skill of all.

The future is being defined by renegades.

Nearly two years ago, I wrote two articles for Avectra (now Abila) about for-profit online communities: The New Competition: For-Profit Communities with Deep Pockets, part 1 and part 2. Since then these “renegades” have become even more popular and profitable. They saw an opportunity to deliver value to markets long served by associations, and they went for it.

“Increasingly, the future of many an industry is being defined by industry expatriates. When a real innovator can’t innovate within a company, they step outside, form a startup, and spark massive industry change on their own. Before you know, they’ve reinvented you.”

Keep an eye on innovators and hold them close. What if associations had been part of these ventures? What if associations were agile enough to play the game at that level?

The future involves partnership.

How can you help your members—both professional and vendor members—become more successful? Associations have always declared themselves member-centric, but too often their perspective is inside-out rather than outside-in, as Anna Caraveli points out in her excellent book, The Demand Perspective. The value proposition has always been based on what the association says is valuable, not what members believe is valuable. Crazy, right?

Partnering means regularly listening to members (and non-members) and involving them in the early stages of discussions about value delivery—behaving like a real partner in their success. Don’t assume you know what members need, instead be guided by member behavior (data) and conversations for your direction.

To do this, you’ll have to schedule more member interaction than you’re used to, and not just interaction with the usual suspects, but interaction with “regular” members and non-members too. But think about all you’ll learn—they call this business intelligence for a reason.

Don’t ignore those other members—you know, the vendors, consultants, affiliates, associates or whatever you call them. Here’s what you should call them—partners. How can they help you become more successful and, in turn, how can you help them become more successful? What can you learn from each other? What access and resources can you provide each other?

Associations and their boards need to get over themselves and treat vendor members as partners in their success. You can help each other succeed if you get together and figure out how to deliver value to members in ways that help both of you.

The future requires rethinking value.

That one’s from me. Many associations are still struggling financially and would benefit from rethinking the whole non-dues revenue issue. Heck, rethink the whole value issue. If you’re struggling, it’s a sign you aren’t delivering value to your community. If you were, they would be joining, renewing, registering, sponsoring and buying.

The digitalNow conference is a great opportunity to get away for a few days to rethink everything in the company of curious association execs who don’t accept mere relevance. The speakers from outside and inside our industry poke at our assumptions and introduce us to new ideas. I can’t wait.

(Creative Commons licensed photo by Rennett Stowe)][

I spend a lot of time speaking to global financial organizations —some of the world’s largest institutions — helping them understand what they need to do from an innovation perspective to stay ahead of fast paced change.

These talks are often aimed at the idea of “how do we need to transition our advisory services — as financial planners, investment advisors, wealth managers — to keep up with fast paced change?”

No where is that question more important than when thinking about the impact of technology and social networks on investing. Think about the change that the investment industry faces. We are witnessing the early stages of a massive transition of wealth from one generation to another. The numbers are staggering: we’ll see $12 to $18 trillion in intergenerational wealth transfer In the next12 years (US GDP is $12 trillion) in North America; and by 2053, some $130 trillion will have moved from one generation to another.

When it comes to financial services, adopt change as a mantra and prepare yourself to reach, support and interact with Gen-Connect in new and different ways.

That’s a lot of money sloshing around — and much of it is going to a new, tech-savvy financial consumer.

This next generation — I call them Gen-Connect — continue to aggressively integrate technology into their lives; they’re busy researching health care, insurance, retirement planning and investment advice online, on Facebook and through other social channels.

So what do you do? Adopt change as a mantra and prepare yourself to reach, support and interact with Gen-Connect in new and different ways.

Here’s a list of innovation strategies I provided in a recent keynote for a major global financial institution

1. Focus on growth

With so much volatility in the financial sector, it’s all too easy to take your eye off of the “opportunity ball.”

Yet there are huge opportunities that surround us ; probably the biggest is that we are going to witness a massive intergenerational transfer of wealth from the baby boomer generation to their uber-wiredGen-Connect children. In every area of the world this is going to involve a requirement for a lot of financial advice. As I noted in my remarks for a recent keynote to a group of senior bankers: “Never before has the need for financial advice for Australians been greater; only 20% of Australians are currently getting professional advice.”The same holds true for North America.

That means there are tremendous opportunities for growth! For many, access to financial advice is still too hard and complicated – that’s why it’s a great time to innovate, in order to build market share!!!!

2. Structure for fast paced change

There are several certainties in the financial sector as a result of the impact of technology.

We will see more business model change as companies leverage technology to change relationships in the world of wealth management; we will see more sophisticated competition as a result, and continuous business model disruption with new, young upstarts that really know how to leverage technology and social network relationships. Combine this with continual shifts in consumer behaviour as we manage more of our money and investments using online tools — and speed things up with even faster technology-driven fast change, such as with the impact of mobile technologies.

What happens when ‘there’s an App for everything’ in wealth management? That’s what you need to keep up with!

3. Reshape brand messages faster

Clearly there’s a lot of fast-paced change in financial services , and it’s critical that financial institutions continue to reshape their brand at the pace of rapidly changing consumer perception.

Part of this has to do with how quickly volatility comes and goes. Noted Jim Buchanan, Senior VP of Consumer Marketing at the Bank of America in an article in Advertising Age, October 2009: “Six months ago, we were trying to re-assure the market and consumers that we are safe and secure….now consumers are telling us they’re not worried about those things anymore…..What they are interested in is ‘How can you help me manage my finances?‘”

Innovative organizations ensure that the brand message evolves at the pace of a world in which volatility is the new normal. As a financial manager, you must make sure that your brand and image are seen to be modern, up to date, and in tune with the brand expectations of Gen-Connect. You can’t be “your grandfathers’ wealth manager” anymore.

4. Adapt to momentum of financial consumer change

Quite simply, the new financial client is online in a big way, and smart financial organizations will evolve their service and support message to these platforms.

The numbers are staggering; in the case one recent keynote I provided for a major financial institution, I emphasized that:

    • 147 million people interact globally on social networks via their mobile phones – we can expect 1 billion within five years!
    • usage of Twitter continues to grow at a staggering pace — and people spend more time on Facebook each week than they do on watching television.
    • they spend far less time reading newspapers and magazines in paper fashion — and in fact, some don’t look at such products at all!

The result of this i that they are increasingly influenced by advertising, marketing and branding messages that they see online. If you are still trying to reach out to them through traditional media, you might be missing them altogether.

It’s not just about marketing — it’s also about customer support. The entire world of customer support has gone online, and you need to be able to support them in the world to which they are accustomed.

The bottom line for financial and investment advisors is that social networks are an extremely effective tool to keep core clients in the loop; as an outreach tool, they’re fast, effective, unique, quirky, and certainly the story of the day. Financial advisors have to go where the client is going, and should be thinking about how to become socially-networked oriented advisers. Given regulatory issues, that can be a big challenge!

5. Adjust platforms to this changing behaviour

I continue to emphasize with my global financial clients that the impact of mobile technologies on financial services is absolutely massive. Think about Wizzit, a South African service that is essentially a text message based banking system.The reality is that the new financial consumer expects to be served on new platforms: as noted by Thomas Kunz, Senior VP at PNC Financial: “Gen-Y does not reconcile chequebooks  and they don’t believe in float. For them, their balance is their balance.”

That’s why PNC has released a “virtual wallet app” available for iPhones. They’re reaching out to this new financial consumer in a big way. That’s why every organization is scrambling to keep up with “Appworld” particularly considering that Apple sold 3 million iPad 3′ within the first 3 days of release.

Aggressive change with business platforms provides big opportunity for business model disruption. A key factor here has to do with new client acquisition: what’s happening is the point of origination of the relationship might change as people transition their banking to mobile devices. Opportunity can come from continuing to build the advisor and distribution channel into these new platforms.

And that’s not a threat – that’s a huge opportunity!

6. Leverage off of new peer-to-peer behaviour trends

The new financial consumer relies more than ever before for advice from their social networks. Peer-to-peer social driven advice through sites such as TradeKing is coming to the forefront: it’s a service that allows people to share stock tips and research through extended social networks.

Does this diminish the role of advisory services — not at all, if you drive in and become a part of the peer-to-peer conversation!

7. Re-orient distribution channels

Here’s another key point: I’ve emphasized to my insurance and other financial clients that the next-generation advisor/broker/agent expects ever more sophisticated technology platforms to help support their role.You’ve got to make sure you are keeping up with their needs.

In one survey in the insurance sector, 80% of brokers indicated that the sophistication of the technology platform of the provider would influence who they would choose to do business with.

According to Kevin Murray, EVP and CIO at New York-based AXA Equitable: “The younger generation of financial professional will almost demand online self-service….they will want to text any questions they have into the service centre or self-service from their mobile device. We’re going to have to be able to provide that capability. It’s how they will operate.”

8. Build your own peer-to-peer collaborative knowledge networks

The new financial advisor is also thinking socially, and is actively looking for peer-to-peer collaborative knowledge. Imagine building a financial advisory team that is collaborative for ideas, share insight on market wins, constantly leverages insight from new branding campaigns that work in unique ways, and constantly shares great idea son new methods of converting leads into clients — that’s how this next generation works!

Back to Kevin Murray: “They will also want an online collaboration tool to …find answers concerning product or questions from their customers. The X and Ygenerations are going to demand a different way of selling and servicing their customers.”

What’s it really all about? Freeing up their time to build opportunity, make sales, close deals.

9. Reduce churn through electronic relationships

Here’s something else to think about according to Chief Marketer (October 2009), “The average brand saw one third of highly loyal consumers in 2007completely defect to another brand in 2008“.

People are far less loyal, and far more likely to jump ship at the drop of a hat. That’s why continuous innovation in terms of the relationship is critical — and that’s maybe why continually transitioning to new technology platforms such as an iPhone app might reduce that churn

10. Better, more focused niche marketing

We’re in the new era  of analytics and analysis, which provides new opportunities for advisors to reach out to markets previously unattainable. As noted by Money Management Executive in October 2009: “Financial advisers generally prefer to manage a small number of high-net-worth clients rather than a large number of small accounts, but recent advances in automation technology could change this dynamic.”

11. Evolve the approach

Insurance and financial advisory services are products that are always sold based on fear — they aren’t bought.

This reality doesn’t go away because of new technologies. What does change is that technology is a powerful enabler that frees advisors forum having to focus on the mundane, routine, time wasting stuff, in order to focus on providing the advice & guidance that advisors can provide. Focus on the core role!

12. Enact change

Many advisors will be in comfortable, established routines. Change is not easy. That’s why organizations in the financial sector that are trying to be innovative need to help existing advisors focus on the opportunity and the benefits that come with rapid change, rather than being fearful of the change that technology is bringing to the industry.

Bottom line? As I sum up in many of my keynotes — “Innovative organizations make bold leaps, in order to keep up — and stay ahead —of a faster future.

Creativity and the new workforce
November 15th, 2011

Jim on stage in West Palm Beach, Florida, with a keynote for the Personal Care Products Council. He’s just been asked a question about of his previous observations that new workforce dynamics might drive faster innovation.

For more on Jim’s insight on this topic, check the Gen-Y & Gen-Connect category of this blog.

While clearing off the desk today, I came across a planning document for a keynote for fairly major organization I did quite some time ago.

It’s a good summary of the issues that my keynote would have to address, and the potential innovation solutions that emerged. This particular organization was in the retail space; through conversations with several member of global management, we built a list of the key issues that I would focus in on my talk: these being the key issues that the leadership believed that the rest of the team need to be thinking hard about.

  • faster emergence of new store infrastructure : i.e. contact-less payment technology is now emerging with Blackberry, iPhone’s, and other smart-phones. What happens when this occurs on customer interactions ; how quickly can a retail / restaurant organization scale to deal with it (i.e. rapid technological innovation is continuing unabated despite the economic downturn, and things like this will have a big impact on how business is done!)
  • faster challenges in terms of freshness of brand image: today, with the impact of the Net and social networks, a brand isn’t what you say it it — it’s what “they” say it is
  • new influencers: consumers are influenced in terms of choice in ways that go beyond traditional advertising. For example, consider the Celebrity Baby Blog (yes, there is such a thing), and how it has come to influence fashion trends for infant wear
  • new forms of brand interaction: the concept of the “location intelligence professional” — corporations are deploying strategies that integrate location into the virtual web, interacting with above mentioned cell phones that provide for in-store product uplift
  • rapid emergence of store architecture issues: intelligent infrastructures – McDonald’s has a $100 million energy saving plan that is based on IP based management of in store energy We’re also seeing the rapid emergence of green / eco design principles that provide more opportunities for savings
  • faster evolution of consumer taste preference : new food trends go from upscale restaurant to broad deployment in as little as 18 months now, compared to 5 years ago; consumer choice changes faster, requiring faster innovation!
  • faster idea cycles. New concepts, ideas, business strategies, advertising concepts happen faster because of greater global collaboration ; brands have to keep up with the idea cycle

Next, my keynote would touch on how the client could be more innovative in dealing with fast paced trends? Some potential methods include:

  • the concept of upside / down innovation – customer oriented innovation
  • generational collaboration – how to unleash the creativity of Gen-Connect
  • concept of business agility: how do we structure ourselves to act faster
  • theme of experiential capital : how can we take on more risk oriented projects simply to build our expertise in new areas such as social networking
  • fast, global, scalable project oriented teams : how do we learn to collaborate better internally
  • innovation “factories”: how can we scale successful internal projects faster to achieve greater benefits
  • partnership oriented innovation: how do collaborate on innovation with our suppliers and others in the supply chain?

Some of the conclusions that came from the global discussions in the lead up to the event? These were responses draw from the audience through the use of online text message polling:

  • we need to learn how to innovate more locally but globally scale
  • a better “innovation factory” to rollout is critical
  • can’t compromise speed to market with structure/bureaucracy
  • spread R&D out
  • collaborate to a greater degree on an international basis
  • innovation should be part of reward and structure
  • more brand clarity, particularly given muddiness of impact of social networking
  • need a more forceful commitment ($, structure, rewards, goals) to innovation

From this, I built my keynote so that it had a structure of “what are the issues,” “what do we need to about them in terms of potential responses”, and “what are some of the organizational changes we need to make to deal with them.”

It turned out to be a great talk!

I’ve got a new Web traffic monitoring tool – Re-Energize — which is quite wonderful! And every day, when I look at how people are finding my site, it’s become quite obvious that a lot of traffic comes in for people looking for information on the sport of ‘zorbing.’

Why  do they find my site? Because back in 2008, I wrote a blog post, “Zorbing – And Why It’s In To Be Out.” I guess the search engines have ranked it highly, particularly for the picture! It gets a LOT of traffic.

What is also interesting is that for years, I’ve been using the story of zorbing on stage for years, often in the context of what I’ve come to call “the big global idea machine.” Here I am on stage with that theme — and a story on zorbing — from an event in Salt Lake City for a few thousand people:

What is another way to think about the big global idea machine? In my overview of “What Do World Class Innovators Do That Others Don’t Do?”, I made the observation that “world class innovators focus on ingesting fast ideas: there are new technologies, business models, customer trends, product developments, scientific advances and countless other things that are increasing the pace of change. Innovators know that if they plug into the global idea machine, they can constantly discover a tremendous number of insights that help them to move forward.”

Kids today spend some 7.5 hours a day engaged with some type of media; with with multitasking, that’s 11 hours of screen time per day, or almost  53 hours a week, according to the Kaiser Family Foundation!

That’s more than a full time job, and more time than their parents spend at work.

Here’s a video clip where Jim was the opening keynote speaker for the 2010 US Navy, Air Force & Marine Child Youth Program Conference in Dallas, Texas, putting these numbers into perspective and speaking to the new realities in providing support services today.

Innovation isn’t critical only in business — every type of organization must try to do things differently in a world of fast paced change.

Here’s Jim speaking at the 2010 US Navy, Air Force & Marine Child Youth Program Conference. He was asked to challenge the audience — child youth experts and counsellors on military bases worldwide — to think about innovation in the context of the youth and parents that they serve.

Clearly the demands, needs and forms of interaction with both parents and alike are undergoing significant change as the next generation of parents on military bases – lets call them “Mom 3.0” – comes to rely on technology to a greater degree each and every day.

08NextGenCustomer.jpgThis dude to the right? He’s about to inherit a whole whack of money.

Indeed, before the financial meltdown in the last month, the slides I used at a wide variety of financial, banking and insurance conferences noted that the issue of inter-generatlonal wealth transfer is a huge challenge and opportunity. Estimates suggest that we’ll see $12 to $18 trillion in money moving from one generation to another in the next 12 years ….. put that up against US GDP of $12 trillion. Cut in half for the stock market crash, and it is still a staggering number!

By 2053, the number will total $130 trillion – and the funds will move to a far more independent, financially savvy, technically sophisticated generation.

How do you maintain your relevance to this next generation customer? Through innovation.

Here’s something of interest: despite the caustic conditions throughout the global banking and insurance industry, there are still a huge number of senior executives who are focused on the key trends that will impact them in the future. They do know the one thing that I know to be true: one day the volatility in the banking and insurance sector will have gone away. Things will have calmed down, and we’ll have a banking, insurance and financial sector that is “back to normal.” Or, at least, a “new normal.”

And we also do know this: once we come out of “this thing,” organizations will be back to the old-fashioned, pre-hedge-fund-derivative-fuelled ways of making money: by coming up with innovative new financial products and services that solve the problems of customers; by excelling at customer service; by launching and nurturing innovative new brands that resonate with customers; through deep, fast and transformative marketing campaigns that form unique relationships with customers. In other words, innovation will be the most critical measure of future success in the banking and insurance sector.

So how do we get there? I’ve had a few leadership retreats in the last two months with a number of global and national financial groups who are already thinking about these issues; they’ve asked me in for my thoughts on linking future trends to an innovation agenda as part of a leadership offsite. (Obviously, given fast paced trends, I’m not going into a list of companies. Suffice it to say, there are some senior leadership teams who are busy ensuring that their companies are ready for the next phase in financial services.)

What am I speaking about? Grabbing bullets from a few of the slides that I used:

Agility defines capability

  • success is defined by ability to respond to rapidly changing products, markets, business models, rapid economic trends, competitive moves, skills issues
  • innovation moves from more than just “products” to process, ad analytics, methodology, structure, capabilities, scalability, collaborative ability …. productivity

It’s about staying out in front of client / broker expectations. That’s why you need to be able to

  • scale faster
  • deploy faster
  • focus narrower

Certainties we know going forward: we’ll be in an era in which we have to constantly rebalance strategy, because of certain certainties five years out:

  • business models will be continually redefined
  • category dynamics and distribution models will be transformed and subject to external pressure
  • products will be re-invented at a more rapid pace, particularly with fast changing actuarial assumptions
  • brand perceptions will shift quicker, particular as new “influencers” in branding come to be more prevalent (Web 2.0 etc)
  • target customers will be more challenging and far less loyal

What do you do about this? One of my closing slides had this to say: “To grow in fast paced, volatile markets, focus on strength through partnership..” That will get you there quicker.

Key point: financial services, banking and insurance innovation hasn’t gone away. It’s going to come back with a roar, and the leaders in this industry are positioning themselves now.

Send this to a friend