ACCELERATING INNOVATION IN FINANCIAL SERVICES

Many financial institutions are faced with the challenge of accelerating innovation. New product and service development is a key concern for revitalizing mature businesses and developing new markets. Driving forces are new technology, competitive pressures and changing customer needs. This paper describes an investigation into the benefits of speed in developing new financial products and strategic and organizational factors which influence speed of the development process. Interviews were conducted with new product managers in North American banks and insurance companies. Mail surveys revealed wide differences in speed of product development as well as associated management practices. Key means of accelerating development were identified, including new information technology, outsourcing, teamwork and process re-engineering. Faster development was important to all firms contacted.