Revolut Case Study: Leading Innovation and Cultural Change Assessment

This report provides an assessment of leading innovation and cultural change within the context of Revolut, a British financial technology company. It outlines Revolut's innovation process, including idea generation, advocacy, experimentation, commercialization, diffusion, and implementation, with a focus on disruptive innovation theory. The report also examines Revolut's current change process, relating it to Kotter's 8-step change management model. It covers aspects such as creating urgency, forming a powerful coalition, developing a vision for change, and removing obstacles to change. The analysis considers the impact of technology and market dynamics on Revolut's strategies. The report concludes with recommendations for leading and managing innovation and change effectively within the organization, emphasizing the importance of adapting to environmental changes and maintaining a focus on customer needs and competitive advantages. Desklib provides access to this and many other solved assignments.

Leading Innovation and
Cultural Change Assessment
support.

Executive Summary
The business requires an innovations and different ideologies to expand their brands and
productiveness by fulfilling all the requirements and desires of an individual. The report will
describe the concept of innovation and its change management procedures of an organization
from which they lead to obtain better result and outcome.
Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Company overview......................................................................................................................3
Process for innovation.................................................................................................................3
Current change process................................................................................................................6
Critical evaluation of environment change..................................................................................9
Recommendations......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation refers to the creative ideologies which can provide a beneficial result to the
business organization. The innovation term has been derived from the Latin verb innovate which
reflects the meaning of renewing. It is a practical implementation to produce goods and products
with the improvement and offers the best results (Cruz‐Ros, Garzon, and et.al, 2017). In this
report, the concept of innovation and its change management has been illustrated in the context
of the organization named “Revolut” which is a British financial technology company located in
London, United Kingdom. The report will demonstrate the current innovation process of the
company and its change management process which will evaluate the awareness of the
environmental changes. In addition, it involves the innovation theories and changes management
to theory to understand the subject in a better manner. Along with this, it also includes the
recommendation to lead and manage the innovation and the changes in the organization.
MAIN BODY
Company overview
Revolut is a financial technology company (one app for all things' money). Companies help
individuals to save their money and get more from their money. Revolut is the world first global
financial super app. Introduced in 2015, in the UK they offer money transfers and exchange to
their customers. Including personal and business accounts company help their customers to
enhance their financial health and control over them ( Revolut, 2021).
Process for innovation
Idea generation:
Banks are in the initial phases of developing client solutions, but FinTechs like Revolut has
proven to offer commodities via non-traditional routes that greatly empower clients. The
innovation company made is pre-paid debit cards services, insurance, currency exchange and
crypto exchange by using only one app that makes it easy for the consumer to use.
Every organization requires a valid innovative process to expand and enhance their business
products and services. Looking at the company Revolute, they focus on the innovative

technologies which can help them to increase their consumer scale. The company utilizes mobile
application banking and provides multinational currency cards to be accepted which is actually a
great innovation at this time.
advocacy and screening: as the idea which measures in idea generation of implement the
insurance, currency exchange, pre-paid debit cards etc. by using only one app has seen the
benefit for the organization. This has been helping the organization to refinement the idea which
they wish to generate for the betterment and make advancement in the banking sector.
experimentation: In this rapidly growing world, an individual has many activities and a busy
schedule to work and they always expect some kind of innovation from which they can
consumer their valued time. The company has launched and created an innovation by utilizing
the strategy as keeping the low margins profits and providing the consumer with an affordable
range in the services which makes them approach in a high manner (Samonte, Javier, and et.al.,
2018).
commercialization: It is important to keep an eye on the market and consumerism demands to
fulfil their needs, and they can improve the company growth and development as well. In
addition, the company also needs to focus on the new entrant’s business and their innovations so
that a company can provide low margin strategy to attract the consumer by providing them better
deal in the finance banking system.
diffusion and implementation: by implementing this idea by Revolut they communicate with
people. through their target market which helps them a lot to successfully implement their
innovative idea.
Disruptive Innovation theory
Innovation theory refers to the technologies and creative ideologies which can be able to improve
and make sophisticated products at an affordable cost which will increase the consumer scale
value. Innovation helps a business to grow and develop itself in a beneficial manner which can
provide better results in the company. Looking at the disruptive innovation theory which
involves the technology to be utilized in an easy manner and provide a larger market area instead
of a target market. In a general way, technology has organized various platforms to download
music by replacing discs and CDs. This theory mainly follows the strategy where they provide an

affordable cost to the consumer and low-profit margins in the company. This innovation's
technology has been performed in the revolut on to examine and enhance the competitive
advantages and can be able to maintain the entire status and system (Kollman, Braegger, and
et.al., 2021). The company Revolut utilized the disruptive innovation theory in their organization
to develop their business and can be able to gain a better outcome. The current process of
innovation includes the different technologies which are mentioned below:
Low end or new market
Low end: In general, it is already known that business organizations mainly focus or concentrate
on the target markets to enhance their business outcome. This low-end business refers to the
bottom of the market where they offer and serve the consumers in a very effective manner or it
can be said as good enough to approach and impress. These business markets are basically low-
profit margins and whenever the new business enters or launches, these markets go further
because it is providing affordable costs and margins. In other terms, this business mainly focuses
on where the greater profit margins raises.
Looking at the Revolut company, their product innovation is very effective and creates a
good experience for the consumers and can be able to measure the maximum gains (Konno, and
Takai, 2021). The company wants to utilize the unique strategy from which financial industry
and grow where the Revolut company clearly make the position and impressive neo bank
system. At the start-up company knows that they cannot make an effective growth so that they
innovated the way where they started to utilize the multi-currency payment card which was the
first innovation they exhibit in their company and lifted this trend in the long term procedure.
Newmarket: The new market innovation refers to the business when a product or service fits in
a new market segment to maintain and balance the low margin profit in the industry and not be
served by any responsibilities in the industry. This market launches to enhance and improve the
products and services with the new entrance of the brands and services which will make an
effective growth and makes efforts to bring the consumer from existing to new market products.
For example, the company Revolute started to launch the innovation by providing different
technologies such as online banking. The company has launched their mobile or android
application from which a consumer can be able to take the services by the online method
including getting all the information about the process.

Organizing the mobile app of the company helps to obtain and generate a better outcome a
result and make to lead in the market (Petre, Turner, Connelly, et.al., 2021). Accordingly, with
this innovation of the company they are able to approach their potential consumer from different
places and makes them stay cross border banking experience. The company main target is to
provide the consumer affordable prices so that the product or service scale can be increased
which gives them, fruitful results in this industry.
Current change process
Prepare organization change: After the innovation Revolut has been already started to make a
change in the environment by developing its application. The company prepares for change by
developing technology and enhancing the banking sector servicing by their application.
vision and plan for change: Revolut's corporate objective is to constantly make all aspects of
money 10x simpler, relevant, and profitable for everybody, each day.
implement for change: company build a professional team that helps them in change and
implement the change in the market by using their tactics which also help them a lot.
embed changes with company culture: The company believes that smart individuals working
in an excellent culture will create the best results. People are promoted in companies depending
on the values listed below.
review progress: Revolut, a fintech firm, has had its own banking license in the European Union
since late 2018. It enables the organization to provide some more banking services without the
need for third-party partnerships. In furthermore, consumers in ten other countries will be able to
move to Revolut Bank.
Kotter's change management theory
This theory indicates the leadership and change management in the organization which introduce
the change in the organization by applying the 8 steps of change management model;
Step one: create urgency

This step of Kotter's model is all about estimating change and procedure to change in the
organization. This step in the company creates a need that determines the changes and
implementation of innovation in a company. Like, implementing pre-paid debit card services as
well as credit card services.
Step two: form a powerful coalition
It is hard to lead towards the whole change process in the organization which indicates towards
the build a coalition to help the company and direct others towards the achievement (Sun, Tariq,
Haris, and Mohsin, 2019). The coalition which the company made should be made up of skills
and by experience person. Coalition helps Revolut to spread the message of change within an
organization and this makes it easier for the organization to make the task easier. Like,
management and improve their application.
Step three: create a vision for change
The change initiation is look-alike complex and hard to understand but it is not impossible.
Creating a vision for the betterment of the company is also necessary and making overall
changes in the company. The vision of the company should be simple and understandable and
according to the organization perspective and their customer preferences with this organization
will get help and make better profitability(Basso, Macada, Pinto, and Lerch, 2020). The vision of
Revolut is inspirational for their consumer as well.
Step four: communicate
Nowadays, the market has become dynamic and the supply chain become more complex and this
factor changes the customer expectation as well, in regard to delivery and service quality. An
employee of the organization has to maintain and ensure the communication they are doing with
the consumer. Consumers nowadays are far advanced and know about everything; therefore, no
one can fool them that's why employees who deal with the consumer has to be proper and deal
patiently with them to crack the deals and attract the customer towards the organization.
Consumer desire changes according to the technology (Fisher, 2020). COVID-19 is also one of
the major factors in the transportation of goods and services. Therefore, the company faces a lot
of issues because of the lockdown in the country.

Step five: remove obstacles
Essential thing is to build strength and take initiative towards the change in the organization. The
organization faces some barriers which they should overcome and remove like, physical
obstacles paperwork etc. as the technology increases and therefore, companies as well by which
organizations should develop online security on their website and assure their customers to trust
them.
Step six: create short term wins
Change processes take time to reap rewards and this may cause a fall if individuals in the
organization think this is not worth their time and energy. For this company have to create short
wins for them like activities and motivation and direction for the better advancement in the
organization (Melander, 2018). Even though using these tactics help the organization to re-
motivate their employees and continue to make improvement in the organization.
Step seven: build on the change
Kotter's describe that it is essential to sustain and maintain the change for long after it has been
done. Many change processes fail as complacency creeps in towards the end and projects are not
finished properly. Yet, the company should Keep their set goals and objective analysis of what
could be done better for continued improvement in the organization.
Step eight: anchor changes in organizational culture
Change is not essentially every time in the organization within the employee of the organization.
Change should be part of the core component of the organization and this will affect the
company long-lasting and make better productivity. Keeping senior stakeholders on board,
encouraging and motivating new personnel to adopt the changes and giving rewards as well as
celebrating individuals who adopt the change will all help to promote the change to the core of
company success.

Critical evaluation of environment change
Business environment change describes the structural change of external and internal by
both tangible and intangible way and which can be control or uncontrollable. The business
environment of the organization indicates the set of conditions and operation activity in the
organization(Jones-Schenk, 2017). The successful change of the organization understand the
environment change and adapting the new policy of business for the betterment of the
organization.
Microenvironment changes that may occur impact Revolut.
The microenvironment incurred the internal factor of the organization which analyse the internal
operation of the company and its business practices.
Customers: Customer of Revolut increases day by day and for this they should have to maintain
their stability to retain their customers from their competitors.
this indicates the factor that organization has to face on a daily basis because of a lack of skilled
labour. Their target customer is the one Train employee of the company by a foreign trainer or
any other expert for better advancement and competes with their competitors. The policy and
demand-supply of the organization are also changes in the environment and therefore the
consumer preferences and choices are also changed (Mahmood, 2018).
Suppliers: Supplier indicates the product or services which company provided to their customers
and have a big influence on this. Supplier of the company indicates the value deliver the process
of the service which they provide to their customers and insurance, security of the customers that
business is doing well and ensure them that their money and data will be secure in the company
(Helmold, 2021). Major supplier or company associated with the NatWest. Halifax. Lloyds.
Supplier of the organization also determine their price and which can be differed according to
their supplier price and service for example; this will differ according to the external factor of the
organization like law and legislation by which the technology and equipment software prices
increases then the services which organization provide to their customers also increases.
Resellers: Resellers of the company indicates the promotion, sale, distribution, marketing and
financial mediation of the company. The COVID -19 pandemic has harmed the organization
business because they deal with the essential services needed to the people in their lives. Which
is financing. Though the Supply chain was severely disrupted as a result of the flu spread,
Consumer purchase behaviour has shifted dramatically. As a result of this disease, the company

faced an economic downturn. Aside from that, currency rates are often a concern to
organizations. Brexit was yet another occurrence that harmed the company's brand sales. It's
because, despite the fact that currency was predicted to decline, making it is prohibitively
expensive for consumers to buy the product(Locatelli, Gastaldi, and et.al., 2020). Import rules,
levies, depreciation, and exchange rates in several nations all contribute to brand uncertainty.
Organizations must be extra careful with their generic products in each country in which they
operate in order to maintain a competitive advantage.
Competitors: Every business in the environment has their competitors who deal in a similar kind
of services which company doing. To compete with the competitors' company sales and
marketing tactics matter a lot and therefore, this evaluates the desire competition and product as
well as make brand recognition in the marketplace. Major competitors Wise, World Remit, Brain
Tree, Green Dot, Starling Bank, Monzo Bank, and Swissquote are among Revolut's main rivals.
Revolut is a financial technology firm that offers a variety of internet finance applications.
Macro environment change that may occur impact on the Revolut
Economic situation: Economic factors determine the GDP and diverse economy by which
companies get help to establish and improve their business. This describes the stability of the
economy, business organizations have to keep eye on the movement of the economy and the
impact of its factor. Economic factor includes interest rate, exchange rate, inflation rate and
employment and unemployment rate (urk-Rafel, Harris, and et.al., 2020). The recent exchange
rate of the economy of the UK impacted Revolut after COVID-19 impact government took a
certain step to bring up the fallen exchange rate, with the help of multinational companies many
countries get a benefit because of their exchanges across the globe. Whatever the supply of
services outside the euro has been made then after the supply will get back to the company in
exchange is in euro. The exchange rate of the currency because of the organization has a great
impact on the economy of the country where the organization is placed. Every company need a
financial resource as the Revolut also need financial resources. For better technology and
advancement in the organization. In 2021 Revolut raise the fund from E funding which is about
$800 m from soft bank vision fund 2 and tiger global management. This investment helps the
organization in their further growth in the long term and achieve higher success (Korzhova,
2020) Revolut is the UK most valuable fintech company therefore they need funds to achieve
high growth to meet the expectations of the customers.

Technology: In the modern environment, the increase of digitalization rather than physical
resources is increasing rapidly (Pollack, 2017.) This might be a concern for digital-only banks
since it implies that customers still prefer a more conventional approach or are not ready to
embrace cutting-edge technology to obtain their banking services. It implies that Revolut could
perhaps wait until consumers are completely comfortable with the digital-only strategy before
introducing other new technologies into their marketing, such as speech recognition. This will
assist to ensure that corporations do not overburden customers. Another survey discovered that,
while the vast majority of individuals believed that the most recent financial technology should
be available to them, there was a reluctance to accept newer digital methods of controlling
money (Henkel, and Kranz,
2018).
Political and legal: Political intervention may have a significant impact on the banking industry
as a whole. Brexit's political insecurity may also have a huge impact on the financial industry.
Political unrest may lead to issues such as investors refusing to commit to enterprises, as well as
a negative influence on credit limits and capital accumulation. For example, the December
election outcomes in the United Kingdom may have an influence on the banking industry as a
whole because if a different party wins, new rules or laws may be imposed.
Social and cultural forces: Revolut Ltd company is which require systematic and smoothly
work within an organization and whether the company uses decentralized and centralized method
they should have to maintain the effective structure of the organization. The head of the
organization of each department needs to flow the information conveyed to all the customers of
the organization. Even though the company should apply the rules and regulations which used
for the benefits of the organization and their employees as well. Social factor determines the
population and health care system of the country which help the company to determine their
income level (Lymbery, 2018.). Consumer expectations are rising, which is fueling the growth of
digital banks in the UK, which might be a tremendous opportunity for Revolut. In addition,
interaction with mobile banks among UK clients is increasing, with digital channels becoming
the preferred form of personal finance.
Recommendations
For better growth and innovation in the business, the company should encourage their
employees and improve their productivity as well. The company should capture ideas and events

for example; a suggestion box on their website which help the customers and company as well to
improve the work efficiency within the organization (Zhang, and Chang, 2021). Organizations
should also create a supportive atmosphere where they build and express their risk even without
criticism. Revolut should encourage experimentation in their organization and risk-taking factors
without any penalty which helps in the productivity of the organization. A major element that an
organization should adopt is rewarded and innovation and success celebration this will encourage
and motivate the employee of the organization and their skills to enhance for the betterment of
the organization.
CONCLUSION
This report concludes the current process, innovation and change present within a company and
it creates an awareness of current and potential environmental change within a company as well.
By critical evaluation and applying the theories like, disruptive innovation theory will help the
company in order to make innovation in the company. this change management theory which is
Kotter's change management theory evaluate the change in the organization in 8 steps. The
conclusion of this report is that every type of organizational change and innovation is needed.
Because the environment and consumer preferences change rapidly and therefore, better
recognition and management in the organization should implement these.