Value Creation Processes: Bank of America Innovation Case Study

This report analyzes value creation processes, using the Bank of America's innovation as a case study. It examines the implementation of R&D in the service industry, highlighting the importance of employee involvement and systematic approaches. The report explores the challenges and successes of the innovation project, including financial benefits and improvements in customer service. It also discusses the adaptability of the system approach to innovation, emphasizing the need for businesses to align their strategies with their specific goals. The report uses the Bank of America's experience to illustrate key concepts in business development, innovation, and service management, providing insights into how companies can enhance their value creation processes. References are provided to support the analysis.

Value Creation Processes 1
Managing Value Creation Processes from Idea to market
by Student Name
Class & Course
Professor
University
The City & State
Date

Value Creation Processes 2
Managing Value Creation Processes from Idea to market
Question 1
First, the NSD process seek to provide consistency in quality service delivery. Second, the NSD
process incorporates well defined processes and procedures. Third the process is associated with
sales efficiency and customer satisfaction. Fourth, NSD should support adjustments and
interactions. The process adopted by the banks has three Centers namely Express, Financial and
Traditional that support different testing of innovative ideas (Milutnović & Stošić, 2013, p. 72).
Question 2
From experience, it is difficult to successfully implement R&D processes in the service industry.
The approach has been introduced systematically from market research to the implementation
within selected. Besides choosing the Atlanta for the process testing, the innovation also received
the backing of the management and employees of the chosen branches (Thomke, 2003).
Question 3
Employees involved is success factor behind the efficiency and effectiveness of the system. The
front line employees who have a direct contact with the customers underwent continuous training
to perfect their ability to use the new system. The employees were involved from the
development to the implementation phase of the program (Bouwman & Fielt, 2008, p. 43).
Question 4
The adoption of the process was successful amid numerous setbacks. There is adequate evidence
under the Transaction Zone section which shows that the benefits of the innovation project
outweighed the associated cost. The processes would create annual revenue of $28,000 compared
to $10,000 cost associated with the implementation. Moreover, the bank managed to reduce the

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overestimated waiting time by 17% (Thomke, 2003, p. 74).
Question 5
Companies are adopting system approach of innovation. The idea behind Bank of America’s
R&D innovation system can be adopted widely in the service sector. However, each industry/
company has their own dynamics and demands. Therefore. Each business should align their
adopted system to their goals and strategies (Chen, 2011, p. 56).

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References List
Bouwman, H. & Fielt, E., 2008. Service Innovation and Business. In H. Bouwman, H. De Vos, &
T. Haaker, Mobile Service Innovation and Business Models (pp. 19-40). Berlin Heidelberg:
Springer-Verlag .
Chen, T., 2011. Building an integrated service innovation Model: A case study of Investment
Banking, International Conference on Economics. Singapore: IACSIT Press..
Milutnović, R. & Stošić, B., 2013. Key Elements of Innovation Project Management in Services.
Management Journal for Theory and Practice Management, Volume 69, pp. 65-71.
Thomke, S., 2003. R&D Comes to Services: Bank of America’s Pathbreaking Experiments.
Harvard Business Review , 81(4), pp. 71-79.