Fasnacht Open Innovation Ecosystems

Creating New Value Constellations in the Financial Services
2. Auflage 2018
ISBN: 978-3-319-76394-1
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 312 Seiten, eBook

Reihe: Management for Professionals

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.

Zielgruppe

Professional/practitioner

Autoren/Hrsg.

Fasnacht, Daniel

Inhaltsverzeichnis

1;Foreword;7
2;Preface;12
3;Acknowledgements;16
4;Introduction;17
4.1;Aim of the Book;17
4.2;Openness, Flexibility, and Adaptation;18
4.3;The Financial Services Industry;19
4.4;The Open Innovation Ecosystem;22
4.5;Insights from the Book;23
5;Contents;27
6;Case Studies/Use Cases;32
7;About the Author;33
8;1: Preparing for the New Reality;35
8.1;1.1 Radical vs. Incremental vs. Disruptive;35
8.2;1.2 The Paradigm Shift;39
8.3;1.3 Mastering the Transformation;41
8.3.1;Case Study Wells Fargo: Organizational Renewal and Transforming Towards Digital Banking;41
8.4;1.4 International Financial Centres;43
8.5;1.5 Financial Services Quo Vadis?;46
8.6;1.6 We Live in a Digital Service Economy;49
8.7;1.7 Banks Are in Decline but Are Necessary;51
8.8;1.8 What Is the Role of Fintechs and Non-banks?;53
8.9;1.9 Conclusion;57
9;2: Disruptive Trends;58
9.1;2.1 Understanding the Drivers of Strategic Change;58
9.2;2.2 Market;60
9.2.1;2.2.1 Overview;60
9.2.2;2.2.2 Wealth Growth;60
9.2.3;2.2.3 Reordering Global Trade with the New Silk Road;61
9.2.4;2.2.4 Competition and Consolidation Driven by Non-banks;63
9.2.5;2.2.5 Impactful Demographic Changes;64
9.3;2.3 Client;67
9.3.1;2.3.1 Overview;67
9.3.2;2.3.2 New Client Service Models;68
9.3.3;2.3.3 Clientele with New Behaviour;71
9.3.4;2.3.4 The Inevitable Wealth Transfer;73
9.3.5;2.3.5 New Offering Required;75
9.4;2.4 Regulation;76
9.4.1;2.4.1 Overview;76
9.4.2;2.4.2 Regulations Stabilize Financial Markets;77
9.4.3;2.4.3 The Global Thread of Shadow Banking;78
9.4.4;2.4.4 New Markets, New Regulations;79
9.4.5;2.4.5 The Era of the Bank-Client Confidentiality Is Over;80
9.4.5.1;Case Study: The History of the Swiss Banking Secrecy;81
9.4.6;2.4.6 Money Laundering and Terrorism;83
9.4.7;2.4.7 How to Regulate Fintechs;84
9.5;2.5 Technology;86
9.5.1;2.5.1 Overview;86
9.5.2;2.5.2 Innovative, Transformational, Disruptive;87
9.5.3;2.5.3 The Rise of Cognitive Technologies;87
9.5.4;2.5.4 Robo-advisory and Automated Investment Platforms;90
9.5.5;2.5.5 Crowdfunding Is a Serious Trend;92
9.5.6;2.5.6 Blockchain Can Transform Finance;95
9.6;2.6 Disruptive Trends Create the New Landscape;98
10;3: Strategic Choices for Growth;102
10.1;3.1 Understanding Growth;102
10.2;3.2 Understanding Profitability;105
10.2.1;3.2.1 The Profitability Paradox;107
10.2.2;3.2.2 Achieving Profitable Growth;109
10.3;3.3 Growing Through Acquisitions;111
10.3.1;Case Study Julius Baer: Swiss Heritage with Second Home Market Asia;112
10.4;3.4 Global Expansion Strategies;115
10.5;3.5 Asset Management Is All About Size;117
10.6;3.6 Rising to Prominence;119
10.6.1;Case Study UBS: How to Become the Largest Wealth Manager;120
10.7;3.7 Encouraging Growth;123
10.7.1;3.7.1 The Chief Growth Officer;123
10.7.2;3.7.2 The Chief Marketing Officer;125
10.8;3.8 New Business Risk Management;127
11;4: Open Innovation in the Financial Services;129
11.1;4.1 Understanding Innovation;129
11.1.1;4.1.1 Innovation Is the Magic Bullet;129
11.1.2;4.1.2 Invention First, Innovation Second;130
11.1.3;4.1.3 Types of Innovation;132
11.1.4;4.1.4 Defining Products and Services in Banking;133
11.1.5;4.1.5 Special Characteristics of Service Innovation;133
11.1.5.1;Case Study Bank of America: Turning Branches into Laboratories;135
11.1.6;4.1.6 Only the Combination Creates Value;137
11.1.7;4.1.7 Key Innovations in the Financial Services;139
11.1.8;4.1.8 Innovate or Die;142
11.1.9;4.1.9 Client Value Innovation;143
11.1.10;4.1.10 Imitation;144
11.2;4.2 The Need for Open Innovation;146
11.2.1;4.2.1 The Traditional Innovation Paradigm;146
11.2.2;4.2.2 Borderless Innovation Processes;147
11.2.3;4.2.3 It Is All About Collaboration;149
11.3;4.3 Open Innovation Is Symbiotic;150
11.3.1;4.3.1 What Does Open Mean?;150
11.3.2;4.3.2 The Open Model of Innovation;152
11.3.3;4.3.3 White Labelling;154
11.3.3.1;Case Study Deutsche Bank Asset Management: The White Label Investment Software Engine;155
11.4;4.4 The Challenges of Open Innovation;156
11.4.1;4.4.1 Controlling;156
11.4.2;4.4.2 Measuring;159
11.5;4.5 The Next Level of Open Innovation;161
12;5: Open Innovation Ecosystems;163
12.1;5.1 Defining the Ecosystem;163
12.1.1;5.1.1 Types of Ecosystems;163
12.1.2;5.1.2 Network Effects and Hyperconnectivity;164
12.1.3;5.1.3 Creating Value in an Ecosystem;165
12.1.4;5.1.4 Dynamic Value Constellation;166
12.1.4.1;Use Case: Value Constellation for Portfolio Construction;167
12.1.5;5.1.5 The Advantages of an Ecosystem;169
12.1.6;5.1.6 The Roles of the Ecosystem Members;170
12.1.7;5.1.7 Managing the Innovation Ecosystem;179
12.2;5.2 Tapping into Regional Ecosystems;182
12.2.1;5.2.1 Large and Small Ecosystems;182
12.2.2;5.2.2 The Silicon Valley;183
12.2.3;5.2.3 The Crypto Valley;186
12.2.3.1;Case Study: The Crypto Valley Ecosystem;187
12.3;5.3 Alternative Ecosystems;189
12.3.1;Case Study: The Financial Inclusion Ecosystem;190
12.4;5.4 Cross-Sector Ecosystems: Fast Scaling Growth;191
12.4.1;5.4.1 The Big Fusion;191
12.4.2;5.4.2 Technology-Based Ecosystems;192
12.4.3;5.4.3 The Winner Takes It All;193
12.4.3.1;Case Study Alipay: Seamless Integration of Payments Services into a Wide-Ranging Ecosystem;195
12.4.3.2;Case Study Yu´e Bao: How to Become the Largest Mutual Fund in 5 Years;197
12.4.4;5.4.4 Success Factors of an Ecosystem Incubator;198
12.5;5.5 Competing in a World of Ecosystems;201
12.6;5.6 Conclusion;203
13;6: Businesses with Ecosystem Mindset;205
13.1;6.1 Business Model Innovation;205
13.1.1;6.1.1 Adaptation;205
13.1.2;6.1.2 Agility and Flexibility;206
13.1.3;6.1.3 Focus on Value Creation for Clients;207
13.1.4;6.1.4 Independency, Transparency, and Efficiency;208
13.2;6.2 Different Models for Automated Investments;210
13.3;6.3 The Right Ecosystem Strategy;211
13.4;6.4 Enhancing the Client Journey;212
13.4.1;6.4.1 How to View the New Clientele;212
13.4.2;6.4.2 Dynamic Client Segmentation;214
13.4.3;6.4.3 Combine Predictive and Cognitive Capabilities;215
13.4.4;6.4.4 Differentiate with Niche Business Models;217
13.4.4.1;Case Study: Islamic Finance;217
13.4.5;6.4.5 New Ecosystems for New Clientele;220
13.4.5.1;Case Study NatWest: Leveraging the Ecosystem to Educate, Inspire, and Connect Women in Business;221
13.4.6;6.4.6 Turning Consumers into Clients;224
13.4.7;6.4.7 Trust Remains Important in the Digital World;226
13.5;6.5 Capturing Value in the Ecosystem;228
13.5.1;6.5.1 Product Development with Platform Data;228
13.5.1.1;Case Study Nectar: The Making of an Investment Product Out of Big Data Using Cognitive Technologies;229
13.5.2;6.5.2 Systematic Investment Strategies with Smart Data;231
13.6;6.6 Blockchain as a New Asset Class;231
13.7;6.7 Blockchain as a Leaver for Operational Efficiency;233
13.8;6.8 Shifting the Mindset;234
14;7: Ecosystem Services;237
14.1;7.1 Disruptive Trends and Strategic Change;237
14.2;7.2 Required Services;238
14.2.1;7.2.1 Open Innovation Culture;239
14.2.2;7.2.2 Boost New Ideas in Open Space;240
14.2.2.1;Use Case: Accelerating New Ideas Through an Innothon;242
14.2.3;7.2.3 Ambidextrous Innovation Capabilities;243
14.2.4;7.2.4 Mastering Efficiency, Innovation, and Collaboration;245
14.2.5;7.2.5 The New Design for Innovation Ecosystems;246
14.2.6;7.2.6 Feeding the Ecosystem with Entrepreneurs;247
14.2.6.1;Case Study ETH: Fostering Entrepreneurs at the University;247
14.2.7;7.2.7 Managing the Ecosystem with Intrapreneurs;249
14.2.8;7.2.8 Run the Business and Change the Business;252
14.2.9;7.2.9 Social Capital Is Building Collaborative Intelligence;253
14.2.10;7.2.10 Benefits of Social Capital;254
14.3;7.3 Learning from Ecosystems;255
14.4;7.4 Becoming an Ecosystem Leader;256
14.4.1;7.4.1 New Roles Required;256
14.4.2;7.4.2 The Chief Innovation Officer;257
14.4.3;7.4.3 Strong Management Commitment;259
14.5;7.5 Conclusion;260
15;8: Banking for the Next Generation;262
15.1;8.1 The World Is Changing;262
15.2;8.2 Chinese Ecosystems Will Transform Financial Services;263
15.3;8.3 The Impact on Businesses;264
15.4;8.4 What About the Far Future?;267
15.5;8.5 Finding the ``New´´;268
15.5.1;Case Study UBS Y: A journey Beyond the Year 2030;268
15.6;8.6 Blueprint of the Futures;270
15.7;8.7 Living in a Social Credit System;271
15.8;8.8 Floating in the Ecosystem;272
16;9: The Way Forward;275
16.1;9.1 Invite Challenges to Renew the Organization!;275
16.2;9.2 Encourage Growth and Remain Profitable!;275
16.3;9.3 Understand the Macroeconomic Changes!;276
16.4;9.4 Embrace Disruption!;276
16.5;9.5 Learn from the Challengers!;277
16.6;9.6 Comply with the Rules!;277
16.7;9.7 Don´t Be Afraid of Robots!;278
16.8;9.8 Invest into Artificial Intelligence!;279
16.9;9.9 Evaluate Peer-to-Peer Platforms for Lending and Funding!;279
16.10;9.10 Find Monetization Opportunities with Blockchain!;280
16.11;9.11 Define and Measure Open Innovation!;281
16.12;9.12 Bring Innovation to Your Ecosystem!;281
16.13;9.13 Create and Capture Value in the Ecosystem!;282
16.14;9.14 Focus on Data in the Ecosystem!;282
16.15;9.15 Treat Data with Upmost Care!;283
16.16;9.16 Realize Businesses with an Ecosystem Mindset!;284
16.17;9.17 Provide an Open and Innovative Environment!;285
16.18;9.18 Think Differently!;285
16.19;9.19 Foster Social Capital!;286
16.20;9.20 Develop Blueprints of the Futures!;287
16.21;9.21 Adopt Trailblazing Ecosystem Strategies!;287
17;Concluding Remarks;289
18;Glossary;295
19;Index;306

Über Autor(innen)

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.