Managing Innovation and Change in Business

The provided document discusses the concept of innovation management, focusing on its significance, types, and implementation in business settings. It highlights the role of innovation in driving change and improvement within organizations, using MetLife Insurance as a case study. The report emphasizes the importance of effective innovation management strategies to cater to customer needs and achieve business success.

Managing Innovation in
Business

EXECUTIVE SUMMARY
Innovation is basically an idea or imagination which is totally new or different from
others. Innovation has become one of the common trends in almost every industry as each
companies from different sectors is innovating and inventing something new. This report will
basically covers innovations done by MetLife Inc. which is one of famous and well reputed
insurance company in the world. They have unique style to provide their services to their
customers which pose positive impact on them. So this is the reason, they have build have a
strong consumer base of more than 90 millions customers all round the world. This assignment
will enlighten various drivers of innovations with company's previous innovations. Company has
focused more on digital improvements and digitalization which had provided them with several
benefits and profits.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Organisation and industry overview ..........................................................................................4
Organisation existing innovation and performance capability....................................................7
Innovations done by MetLife Inc................................................................................................8
Innovation Development Audit ................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is concerned with the conversion of new idea or imagination of product or
service into practical for which the customers are willing to pay (Antikainen and Valkokari,
2016). Innovative products and services are the main reasons for desired growth and success of
any company. This report is based on innovation done by MetLife Inc. This company mainly
deals in insurance industry and has worldwide presence in several countries. It is mainly
headquartered in New York, U.S. and founded in the year of 1868. They mainly provides several
such as insurance, annuities and benefits to employees. This assignment will enlighten
background of company with their past and future innovations. It will also represent wider
factors of innovation that will be helpful for firm in future.
MAIN BODY
Organisation and industry overview
Overview of Industry
Insurance have become an important part of lives as they help in protecting the loved
ones, property, etc. Insurance provides protection to people and companies with efficient saving.
This sectors strongly concentrates on innovation and commitment to people. They work with
external stakeholders in order to build good relationships with them and also create innovation
solutions. Technology have great hand in simplifying the insurance proposition, increasing
transparency and can also emphasize industry's role as an “enabler of lifestyles”. Insurance
process was initially developed in 15th century as a small level service which further developed
rapidly on yearly basis through specific changes and modifications (Archibald and Archibald,
2016). These process become more polished in Enlightenment Era in which different kind of
insurances are introduced within 17th Century. Several policies were determines such as Property,
business, Accident, national and life insurance plan.
Company Background
MetLife, Inc. stands for Metropolitan Life Insurance Company that provides several
services to their customers such as insurance, annuities, employee benefits programs, etc. This
firm was founded in 2868 and is headquartered in New York, United States. It is one of the
largest global providers of above mentioned services and are operating in more than 60
countries. They have more than 90 millions loyal customers all round the world. MetLife Inc.

basically owned by an individual in order to operate their activities without shareholders or for
maximise benefits for only policyholders. After implementing several innovation and
modification in their services company went public in the year of 2000.
History
MetLife Inc. have been providing their services to their customers form last 150 years.
Their success is based on their history of social responsibility, strong leadership, sound
investments and innovative products and services. In the terms of innovation changes, MetLife
faces vast impact on their policy, procedure as well as on services. In 1870s, firm reached at its
lowest point in the terms of lack of innovation and ideas in policy and procedure. After some
year’s management of firm make impactful changes and modifications with innovative ideas and
in 1880 firm faces favourable results in the terms of sales and premium enhancement. In 1921,
MetLife Inc. introduce their new innovative approach in Group annuity contract that assisted
same in maximising their pension liabilities for long term benefits and approaches. In 1930,
MetLife implement innovative idea in their business process for making proper modification in
their portfolio (Archibald, 2017). As a result, company reduce the rates of individual mortgages
in order to maximize their investment in government securities, public utility bonds and real state
commercial loans. The innovation of firm make major changes and its results was represented as
every fifth to seventh person of US which were insured by MetLife Inc. In 1979, the operations
of firm were distinguish in different business segments as Personal insurance, investment, group
insurance and pensions. These innovative ideas are basically used to maximise number of
services users for firm in order to maximise profitability through different divisions. MetLife
create effective ideas to make them mutual company for enhancing compensation policy as well
as insurance businesses. As it results, in 2000, firm regenerate their business in mutual insurance
company as a public profit business. Management and founder of firm needs to expand their
business on international boundaries therefore in 2010 they proclaimed its intent to purchase for
global leaders. These innovative aid them to create world wide relations on international
boundaries.
Drivers of innovation
Every organisation keeps on innovating something new in order to achieve desired
growth and retain position in global market. As MetLife Inc. has established a global reputation

by innovating something new, which has not been introduced by any other insurance company.
Following are the drivers that initiate innovations:
Nurturing talent: One of the important aspect which includes the activities related to
development of talent of employees. The method which helps actually in their development
includes training and development programmes etc (Chen, Jiao and Zhao, 2016). The main aim
behind improving the knowledge of person in particular field is that it helps them to think
creatively and bring new ideas for development. Nurturing talent by the management of Met Life
helps to bring innovation in their services through better performances of employees in their
field.
Managing creativity: Recognition and appraise of creative ideas of employee motivate
them to perform good in future also to become the valuable part of organisation. Recognition of
the talent of employees by the management of Met Life helps in improvement of their creativity
which drive innovation in future period of time.
Building relationships: Good relation between employees and manager also impact the
creativity among them. Strong relationship encourage individual and team forthcoming with new
ideas. This will possible because they feel comfortable and coming forward to share their ideas.
Encouraging culture of innovation: To bring innovation on continuous basis required
to build culture which motivates the employees to think creative. This will enables the
organisation in improvement of number of innovation on continuous basis by creating culture.
Met life is insurance company required to setup the culture of using digital tools within
departments for working of their functions.
Following is the PESTEL Analysis of company:
Political factor: This factor is crucial for smooth functioning of MetLife inc. as they
pose great impact on company. Political environment of different countries have significant role
in impacting their long term profitability as they are operating in numerous country. MetLife
have strong hold in insurance industry which make them vulnerable to greater political risks. On
the other hand, government support company with their innovation strategies and activities
which can be beneficial for their customers.
Economic factor: As MetLife Inc. is and insurance industry, economic elements that will
affect their profitability will be growth rate, consumer spending, exchange rate, interest rate, etc.
Company can provide consumer loving insurance policies and other innovative services to their

customers on their official websites. This will attract more customers as everyone wants to
protect themselves and their family against any natural calamity.
Social factor: This factor has direct impact on profitability of company. This factor
includes living style, attitude, spending and earning habits of customer, etc. Firm has to develop
customer friendly insurance policies in order to provide better services to them.
Technological factor: MetLife Inc. should adopt recent digital technologies that will
help them to grow effectively and can attract large number of customers. By providing their
innovative services on their websites and convincing customers related to their services, they can
easily earn profits. Today is the world of digitalization and this will enable company to provide
better and fast services to their customers (de Zubielqui, Jones and Statsenko, 2016).
Environmental factor: MetLife Inc. provide appropriate funds and financial support to
various environmental protection institutes and organisations so that they can carry out their
operations without any hindrance.
Legal factor: Different countries have developed different policies and regulations
related to insurances and other related policies. As MetLife Inc. is operating in all round the
world, it is necessary for them to critically analyse all insurance related regulation to provide best
to their customers. This analysis will be beneficial for both company as well as for the
customers.
Organisation performance capability
Innovations are one of the crucial necessities which is implemented by MetLife Inc in
order to provide better services to their clients and customers. They have been implementing
digital solutions within their operations. Digitalization is recent trend and is gaining popularity
in almost every industry and MetLife can adopt digitalization for maximising their products and
provide innovative services by using this digital solutions. In the present scenario, there is lots of
competition in the marketplace because every organisations are trying to achieve competitive
advantages with the help of appropriate strategies and actions plans in an effective manner. With
this help of innovation in digitalization, company has improved their functioning as compared to
previous performance track records. They have been continuously growing and developing new
innovations in order to retain their global position and also give tough competition to others.
Following is the SWOT Analysis of MetLife. Inc:
STRENGTHS:

 They have strong brand presence in more than 60 countries.
 Have the strength of more than 60,000 employees.
 Have customer base of more than 90 millions worldwide.
 Major presence in insurance industry (Prokop and Stejskal, 2017).
 Have good financial position.
 Best provider of insurance, annuities and employee benefits.
 Technological oriented organisation.
WEAKNESSES
 They are mostly dependent on the market of Unites States.
 They have high operational costs.
 Weak grip in international markets as compared to competitors.
 They charge high interests rates as compared to other housing finance organisations.
OPPORTUNITIES
 They can expand their business in new countries and territories.
 They can diversify their portfolios for customers.
 They can increase their market share in existing markets.
 Market development by offering new products or services.
THREATS
 Financial crisis like recessions and change in government regulations.
 Competition from rival teams.
 Increase in tax rates.
Innovations done by MetLife Inc.
ConVRse, innovation by MetLife Inc.
One of the great innovation introduced by MetLife is “conVRse”, which is virtual reality
customer service platform that is designed to revolutionise interaction between insurers and
clients or customers. This solution was mainly developed by Lumen Lab that is an innovation
centre of MetLife in Asia. With this innovation, customers interact with insurance expert
“Khushi” which is a virtual avatar with human voice and get suggestions and other relevant
information. This innovations has won various awards such as “Innovation of Year” and “Best
Technology Initiative of the Year Awards”, “Best Technology Innovation” in 2017 (MetLife
recognized for innovative customer solutions, 2018). This was the first time that any insurance

company has utilised virtual reality in order to provide better services to customers. Company
has utilised digitalization in order to develop this innovation.
MetLife joins the MIT media lab, adding to its multi-pronged innovation ecosystem
 MetLife announced a necessary information regarding collaboration with the
Massachusetts Institute of Technology (MIT) for the purpose of accelerating innovative
technologies so that insurance company can be transformed in better manner (Prokop,
and Stejskal, 2017).
 MetLife joined the MIT Media Lab as a Consortium Lab member. This media lab is
working in developing various tools, materials as well as methods which described the
transformative tech innovations. In this included touch screen, wearables and GPS. They
have collaborated with media lab which will focus on different disruptive applications
regarding insurance industry (Van Lancker, Wauters. and Van Huylenbroeck, 2016).
 They leverages with MIT advanced research so that they can bring effectiveness and
efficiency in the organisations. It is associated with social data, digital records, data
science, machine learning, which are beneficial in reducing risk factors, differentiate
pricing strategies and provide better experiences to the customers.
 MetLife invested around $100 million for digital ventures accelerates as they focus on
small start up firms who can bring new forms of values to another customers.
Therefore, MetLife has announced several latests activities and plans regarding
innovation and creation within firm. There is defined SWOT analysis of firm for understanding
better about its strategies and action plans as well.
Digital Solutions by MetLife Inc.
Company has been developing innovation solutions for their customers in order to give
different experience and good services. In order to deliver digital solutions, they have launched
two InsurTech investment programs for start up companies, they are MetLife Digital Ventures
and MetLife Digital Accelerator which is powered by Techstars. These both programs are mainly
governed by MetLife's Chief Digital Office (WITH LAUNCH OF DIGITAL VENTURES AND
DIGITAL ACCELERATOR, 2013). Company is mainly focusing on digitalization as they know
the importance and various opportunities for their company. These both programmes are the
examples of strategic partnerships promotes innovation culture and bring entrepreneurial lens

across insurance value chains. This partnerships provides company first mover advantage in
identifying and capitalising on emerging customers and technology trends.
Innovation Development Audit
 Idea generation – This approach of organisation uses customer focused ideas. It assist to
make positive changes on the basis of innovative ideas and creative thoughts. For
example, management and owner of MetLife Inc. generate ideas for pension benefits and
annuity in the year of 1905 for individuals.
 Prioritisation – This process basically analyse what magnitude are the most appropriate
ideas that are selected for implementation for business approaches. MetLife Insurance
generate several ideas to make changes in their policy as well as procedure.
 Implementation – At this stage of innovation, organisation analyse that which ideas are
requires to extent quickly that requires for successfully implemented. MetLife Inc.
introduce their new innovative approach in the year of 1921, as Group annuity contract
that assist to increase their pension liabilities towards individual.
CONCLUSION
From the above report it has been summarised that innovation is a specific business
process that assist to make desirable changes and modification in business ideas. Main objective
of this procedure is to cater quality products to their customers on the basis of their requirement
and need. Through this firm can easily get maximum opportunities for their higher as well as
desirable success. Such innovations are brought up by many incremental advances in technology
and processes which are often disruptive and new. This process basically enlarges with the
consideration of maximum opportunities for new as well as reinforced commodities.

REFERENCES
Books and Journals
Antikainen, M. and Valkokari, K., 2016. Framework for sustainable circular business model
innovation. Technology Innovation Management Review. 6(7). pp.5-12.
Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management. CRC
Press.
Archibald, R. D., 2017. Leading and Managing Innovation: What Every Executive Team Must
Know about Project, Program, and Portfolio Management. Auerbach Publications.
Chen, J., Jiao, H. and Zhao, X., 2016. A knowledge-based theory of the firm: managing
innovation in biotechnology. Chinese Management Studies. 10(1). pp.41-58.
de Zubielqui, G. C., Jones, J. and Statsenko, L., 2016. Managing innovation networks for
knowledge mobility and appropriability: A complexity perspective. Entrepreneurship
Research Journal. 6(1). pp.75-109.
Prokop, V. and Stejskal, J., 2017. Different approaches to managing innovation activities: An
analysis of strong, moderate, and modest innovators. Engineering Economics. 28(1).
pp.47-55.
Van Lancker, J., Wauters, E. and Van Huylenbroeck, G., 2016. Managing innovation in the
bioeconomy: An open innovation perspective. Biomass and Bioenergy. 90. pp.60-69.
Online
MetLife recognized for innovative customer solutions. 2018. [Online]. Available through
<https://www.thehindubusinessline.com/business-wire/metlife-recognized-for-innovative-
customer-solutions/article22226934.ece>METLIFE ACCELERATES TRANSFORMATION
WITH LAUNCH OF DIGITAL VENTURES AND DIGITAL ACCELERATOR. 2013. [Online].
Available through <https://www.metlife.com/about-us/newsroom/2018/january/metlife-
accelerates-transformation-with-launch-of-digital-ventur/>