AEM437 – Innovation Strategy – BancZero 1. Innovation as a whole in the financial services industry is very different than that in other businesses throughout the world. To start, the financial innovation cycle is very fast. New product development does not require large capital investments (primarily human capital), developments were rapid, there are low barriers to entry, and new products can be quickly tested in the marketplace. From this basis of innovation, new product development continues to differ from that in other industries. A new product can be anything, including a new business, financial product, instrument, market, or location. Given this variety of avenues, there are standard and general procedures that apply to all of the above. Each idea or proposal has to go through and pass a new product approval process. This entails an analysis of the risk accompanying the endeavor, necessary support and infrastructure, conflicts with currently existing businesses, and an assessment of the pace/time frame required to get the product going. 2. The source of difficulties in this case stem from many areas of BancZero along with portions of the new product development process. First of all, groups necessary for the development and implementation of the
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This homework help was uploaded on 02/20/2009 for the course AEM 4370 taught by Professor Leiponen,a. during the Spring '08 term at Cornell.