Managing Innovation in Business

This document discusses the process of managing innovation in business and its impact on overall efficiency. It explores the future of the industry, identification of new products and services, and building future innovation capabilities. The case study focuses on Revolut Ltd., a British Financial Technology company.

Managing Innovation in
Business
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Table of Contents
Executive summary..........................................................................................................................3
Introduction......................................................................................................................................4
Future of the industry 2020 & beyond.............................................................................................4
Identification of new products and services and identifying the key activities for their
successful development..........................................................................................................5
The organisation innovation requirements 2020 and beyond.................................................5
Building the future innovation capabilities for the organisation:...........................................7
CONCLUSION..............................................................................................................................11
References......................................................................................................................................12
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Executive summary
The overall process of development and creation of new services and products in
organization with the aim of improving overall efficiency is referred to as innovation.
Development of innovation is not enough but there has to be some more effectiveness that can
help in providing a competitive H2O organization. Requirement to some techniques of managing
innovation process has to be managed along with various changes adopted by the organization.
present report is based on Revolut Ltd. And how this organization is managing their overall
innovation. Basically of financial technology from that is dealing into banking of services and
overall fintech industry.
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Introduction
Innovation is basically a practice that helps in creation of some unique ideas for development in
organisation to improve the overall experience of customers. Helps in actually providing better
solution to various problems that are faced by some individual and meeting the unmet needs of a
particular customer as an individual unit and not as a whole segment (Ozorhon, . and Oral.,
2017). Innovation can be adopted by organisation in their various products or services that are
being offered by use of updated technology or process by such organisations with the overall of
developing an understanding of Management a meeting their customer needs. Present report is
based on innovation that is done by Revolut Ltd. What is a British Financial Technology to
banking services and various other facilities provided to their customers for fulfilling their
banking requirements.
There is discussion of the innovation requirements in the organisation and building up of future
organisation capabilities for more innovations that can be bought a apart from there innovation
that has been brought in the organisation in the year 2019, that was basically related to use of
commissioned free NASDAQ and use of new York stock exchange for helping their clients in
commission free trading (Araújo, . and de Medeiros,2017).
Future of the industry 2020 & beyond
Revolut ltd. Is part of the financial technology industry and they are part of the banking
services that consist of the GBP facilities and other related facilities. There has been a continuous
innovation that is made by this organisation in July 2015 where they launched digital banking
services as a option for traditional banking for their customers. In March 2016 they added more
innovative features such as opening of standard banking accounts and in the year 2017 there
were enhanced growth of this organisation as there were 1.2 million people registered with them.
In year 2019, there has been a launching of new innovation in terms of commission free trading.
So, it can be seen that with every year there has been a comeoplet new innovation that has been
brought in by Revolut ltd. And they have been involved into continuous improvement and
innovations.
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Identification of new products and services and identifying the key activities for their successful
development
While in context with the future of banking industry it can be said that there will be complete
evolution of the trends of digital banking and there will be use of such technology by all retail
banks. It is in concern with digitisation of all the banking services for the purpose of reduction of
overall risk and improvement of efficiency and providing better services to their customers
(Kallmuenzer, ., 2018). In the coming time period of year 2020 and beyond it can be seen that
there will be more ahead innovations that will be made in this sector such as there will be
complete digitisation such as there will be conversion into a complete digital format and there
will be no scope for any transactions that will be paper based (Lašáková, Bajzíková and Dedze,
2017). The overall traditional banking structure will be transformed into new way of digitisation
and thinking. There will be new revolutionary process of business that will be adopted by
banking sector across world and will make use of artificial intelligence for offering superior
services of banking to people.
In case of Revolut Ltd. there will be two basic requirements such as cost efficiency and security
that will help in realising true value for banks. Banking through different omnichannel is also a
future of the banking industry in the present
The organisation innovation requirements 2020 and beyond
Identification of drivers of innovation in a business and environment
There are certain drivers of innovation that can be understood with reference to revolt
these are actually helpful in developing a detailed understanding of the factors that will help in
fulfillment of the various innovation requirements in the year 2020 and beyond that certain
drivers are discussed below:
Nurturing talent: It is related with the overall talent that is present with the organization in case
of Revolut there has been launch of their new innovation that is related to NASDAQ where they
are providing option of retail trading to their clients. So there is a scope of some more creative
ideas like this that can be developed by The talented workforce with their organization process,
the overall use of digital technology and a growing world of digitalization can be adopted as a
important source of innovation for the organization and this will lead to more creativity that can
be adopted for the in there business (Simmons, and Brennan, 2017).
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Encouraging of innovation culture: There is launch offer Commission free trading app for
customers who are willing to trade on their New York stock exchange metal plan. Does
innovation has led to increasing the overall speed for accomplishment of the activities in a
relevant manner it will also lead to improving the overall experience of customers (Himmel, .
and Siemiatycki, 2017). So it can be said that if there will be a proper encouragement of
innovation in the overall organization it will lead to such new innovations that will be brought in
the organization and help Revolut Ltd in developing a competitive advantage.
Building relationships: Revolut Ltd is providing a different range of innovative products and
services for their customers that comprise of transfer that takes place across 29 countries in the
form of crypto currency exchange it for mostly individuals who are willing to trade in stocks.
Requirement to build effective and timely relationships with all their stakeholders so that for the
innovation can be supported. Such as there has to be proper and timely have to be made in terms
of looking effective relations with their present as well as prospective base of customers concept
actually lead to building up of brand image and same trust which for the leads them to have more
trust as compared to other competitors in the external market. Building relationships with other
internal associated stakeholders also consists of employees so that they have to be encouraged
for various monetary benefits enhancement of creativity and innovative ideas. There is a
weakness that is associated with Revolut that It do not possess enough protection from FSCS
which other competitor’s process. So there must be more efforts made to generate innovative
ideas in dealing with such weakness and increasing their overall competitive advantage as all the
other competitors forces this Security Scheme (Lopez Hernandez, 2019).
Motivation of employees: Eating the employees in form of increasing the benefits for them is
also a very essential tool that can help in acting as a driver for innovation there very good
opportunity of expansion for this brand in various International markets from Europe such as
Hong Kong which can provide them more growth opportunities (Moaniba, ., Su, . and Lee,
2019). There is further more growth perspective for Digital banks much millennial generation is
referring to choose Mobile Banking application fulfilling their banking requirements.
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Building the future innovation capabilities for the organisation:
It is very important for the organisation to build the effective innovation capabilities for the
future so that they can scope up with the competitive market place. in the context of the Revolut
organisation which provide banking and financial services to the its target customer and planning
to have innovation in their services to reach out larger number of customer by the means of
digital platform and launched NASDAQ and New York stock exchange stock in their
applications. (Zen. and Ouyang 2017)
The leader and manager of the organisation make effective successful plan which helps them to
expand their business in the coming years in the international market. The leader of the
organisation focus on building the future plans for the organisation by collecting the essential
and productivity knowledge about the organisation innovation.
The important of organisation knowledge:
The Revoluts organisation have effective team who are focus on collecting the
knowledge about the financial needs of the customer and transfer it its different department so
that the all the employees of the organisation working to analyse the capabilities and success rate
of its innovation and organisation product and services. all the department of the organisation
coordinated with each other and tries to achieve the desire outcomes in the most effective
manners and productivity manners. The manger and leader make the effective strategies which
helps them to come up with the new innovative ideas for the organisation so that they are able to
expand their operational activities in the most profitable manners. (Van Lancke. and Van
Huylenbroeck 2016). To build the innovation capabilities in the organisation in the long run ,
the company needs conduct the effective audit which will help in analysing the target market
and also finds out the requirement of the customer so that organisation can provide its in
different forms of financial services. the Revolut organisation furnishes the leading services with
the creativity plan of action. SWOT analyses will help the organisation to build the effective
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innovation plan for going online services for the customer where they can trade and make
effective profits.
Swot analysis: this analyse helps in examining the internal capabilities of the
organisation which will help them to build the future of the innovation product and services in
the target market place. This will help the company to make best use of the available
opportunities to grow and expand their business at the international level and reduce the
threads and negative aspects of the condition. (Biemans,2018)
Strength: the Revolut company have huge range of innovative goods and services for its
clients which include the transfer of currencies at the international platform. It is also less
expensive in comparison to its competitors such ads starling and monzo in transfer the currencies
and it also provide travel and device insurance to its customer which helps the organisation to
attract the more customer to its services in the global market place. The organisation also text
instant payment and transfer notification which help in providing the security features for its
customer and take the competitive advantage in the coming years in the market.
Weakness: in the Revolut organisation, there is no way to contact with the administer
and another worker expect thought the online model which sometime few customer are not able
to find it easy or effective to reach out for their queries and another problems. The further their
customer are not given the protection through the financial services compensation scheme and
the customer are charged a fee if they want to close their accounts in the branch. (Pellikka,and
Ali-Vehmas, 2016)
Opportunities: the Revolut organisation can expand their business in the international
market places with the new and innovative services for its target customer which will enhance
their growth and capabilities in the coming years in the market. the organisation have a
opportunities to go digital platform to attract more customer and build the future in the advance
technology which make their work easy and effective and profitable .now days, the people are
using the application in the mobile phone which help them to access at that any place in the
market and compete their transactions. The organisation has a opportunities to achieve and
expand their business activities in the providing the financial services to its target customer in the
long run.
Threads: the revolut organisation faces competition from the another banks and
financial institute as Lloyds banks have introduce the saving pot with the instant payment, which
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is treads for the organisation in the long period. The some rivals such as Starling and monza are
providing the certain interest amount for their initial deposit which revolut company does not
offer such rates to its customer which can harm them as customer will switch to another
organisation.
The revolut organisation have a huge opportunities to have innovations capabilities for its
goods and service which can help the customer to satisfied their needs from time to time and
organisation are able to expand their business at the international market places by taking the
competitive advantages in the market and examine and identifying the need of new goods which
target customers are looking in the market, the Revolut company can offers such innovative
goods to its customer to earn the profits in long run. The organisation focus on offering the
innovative service which aids in getting the success in the target market in the long period of
time. (Prang. and Schlegelmilch, 2018. )
The revolut organisation offer their services in the high competitive market place which lead to
examine the market places to build the strong for the company to achieve their objectives in the
market and earn the desire level of profits within the set time period. the porter’s five forces are
used by the organisation to make the effective course of action which helps to place their
services in the right kind of market so that company are able to provide the goods and make the
revenue out of such activities
Threats of new entrants: entering into the fintech market will bring the various
innovative things for the organisation and affects the operational activities of the organisation.
there is low threads to the Revolut organisation which lead to low pricing strategies and reducing
the costs for the customer so that more customer can join the organisation in the long run, the
company also need to focus on achieving the desire level of outcomes in the prefect ways so that
they can attract more customer in the long period.
Bargaining power of the supplier: here there is less supplier in the market so they
charge higher prices for their goods and services. These suppliers hold the prevailing position
which reduce the profits margin for the revolut organisation in the international market –places.
They have less impact on the organisation as they provide their services thought the online mode
which helps them to holds on more customers. (Tiddand Bessant, 2018
Bargaining power of the buyers: here there are large number of supplier and lesser
number of then buyer which can make the customer switch to another company good and service
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if prices are low as compared to another company. The impact of this organisation is low as it
involve the high switching the cost and Revolut has high loyalty from their customer from long
period.
Threads of substitute: under this situation, the customer finds the substitute goods and
service in the target market. another competitor such as Green dot, weswap, monzo are also the
providing the goods and services similar like Revolt which damage the performance of the
organisation in the long run as customer will switch to another company goods and services in
the market places. (Prokop,and Stejskal, 2017.)
Rivalry from another competitors: it refers to the siltation, where more companies tire
to enter into the market place which harm the productivity of the organisation in the present as
well as in the coming years in the market. The revolut organisation gets affected by these rivalry
enter in the market which affects the operational activities of the organisation in the international
level. The organisation needs to focus on improving the needs and wants of the customer in the
market place.
The Revolut organisation are able to make the effective innovation capabilities for the future
worlds by examining the work environment and identifying the services which will serve the
target customer in the proper manners and organisation are able to earn the desire level of
outcomes in the most profitable ways and tarries to take the competitive advantages in the
market places and make effective strategies which make the organisation more productivity at
their task and activities which helps them to achieve the pre-determine goals in the most
profitable ways in the long period of time. The company can come up with the new services to
serve the large number of customer and earn the profits in lieu of services in the market place .
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CONCLUSION
It can be said from the above discussed innovation is a very important aspect for every
organisation send development of new products and services that are part of core product of
organisation and search new creativity can help in enhancement of overall brand image and
revenue organisation. Innovation is basically a tool that is guided by several different activities
such as there are different rivers of innovation that are part of overall external environment and
internal environment and can assist in developing the overall process and new product. It is also
related to future innovation capabilities in every organisation that is increasing the overall load
role of leaders and analysis of transfer and cross functional Cooperative Behaviour for
assessment of overall capabilities of innovation. It can also be said that element of audit helps in
implementation of a new product and service according to the way which organisation actually
demand. There is requirement of smooth functioning of a organisation while there is launching
of innovation it is very important to take care of different aspects that as four P's of innovation
that actually save the overall process of innovation and various different important aspects that
are related to it.
Developing of innovation is not enough for any organisation and there is requirement to manage
such innovation so that it can help in long run for organisation and not just for a limited period of
time. Serious changes in the external environment searches development of digital technology
and advent of internet has actually leaded to more opportunities very cost effective at same time
and lead to innovation processes that are being adopted in organisations. Becomes very
important to improve the experience of present base of customers and use some personalization
approaches that is customization which is changing with the time.n facility in case of
organisation such as banking industry continuous changes and various improvement of quality of
services that are to be done in order to keep up pace with the changing technological
requirements.
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References
Books and Journals
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scenario and drivers of innovation. Current Opinion in Chemical Engineering, 17, pp.22-
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Journal of Contemporary Hospitality Management.
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education: Case study-based evidence across ten European universities. International
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Simmons, R. and Brennan, C., 2017. User voice and complaints as drivers of innovation in
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Himmel, M. and Siemiatycki, M., 2017. Infrastructure public–private partnerships as drivers of
innovation? Lessons from Ontario, Canada. Environment and Planning C: Politics and
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Prange, C. and Schlegelmilch, B.B., 2018. Managing innovation dilemmas: The cube
solution. Business Horizons, 61(2), pp.309-322.
Prokop, V. and Stejskal, J., 2017. Different approaches to managing innovation activities: An
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Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
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