A thoughtful post on the nature of innovation, relative to globalisation, making the point that while the world appears global, the reality is quite local for effective innovation. The innovation levers technology and communication for the global aspects. One example is Zara. Based on NW Spain, they have developed a global strategy of successful stores, but the innovation is centred in Galicia. Irving Wladawsky-Berger On average, it takes nine months to develop a new fashion product and get it into stores. Zara is able to shrink that number to a remarkable four to five weeks. Consequently, it can assess in … Continue reading Innovation is local in a global context | case study – Zara

Just came across Umair’s blog today and wanted to reference it. He is beginning a discussion on corporate DNA and branding. Quite fascinating …. the decaying brands he isolates are Microsoft [tried to control the product standards], and Starbucks [tried to control the value chain]. Umair Haque Google and Myspace are perhaps the most obvious; Craigslist and Wikipedia the most radical; and Zara perhaps the least well understood. What all of these players have in common is that, as embryonic revolutionaries growing up in an era of turbulence, they’ve developed radically different DNA. So of course, I am thinking about … Continue reading Decaying brands, and implications for Banks

Tom Groenfeldt on techandfinance.com highlights four predictions in a recent Gartner report, that are quite provocative. Taken together, they suggest mammoth changes to Banks as we know them. Click through for Tom’s take on them. I expect I will do same later. techandfinance.com “By 2010, social-banking platforms will have captured 10% of the available market for retail lending and financial planning.” “By 2010, 10 percent of banks’ revenue from retail payments will be supported by competitors such as PayPal.” “By 2010, U.S. banks will start shutting down their full-service mobile-banking channels.” “By 2011, centralized retail core banking applications will cease … Continue reading Banking predictions portend big change – Gartner

Fascinating research and conclusions picked up by Paul at Finextra. The implication is the shift towards greater self service by people for financial services that previously would have required advisors or brokers. Winners are price comparison sites, and advice from friends and family. Finextra But if consumers aren’t turning to their bank for financial advice, where are they going? Online price comparison Websites are one obvious source of information. The other is friends and family. This change in consumer attitudes helps explain the success of a new generation of non-bank social platforms such as those operated by Zopa and Prosper, … Continue reading Consumers getting financial advice for themselves and from friends and family

Interesting review of the customer view while trying to use the Barclaycard OnePulse card.  Dave makes the point that the merchant benefits are clear, but the benefit to the consumer at the point of purchase is confusing, and in this case slower than cash. Digital Money Forum: Slow penetration When I waved my card at the reader, nothing happened. The woman serving me asked if I really wanted to use the “terminal”. I said yes. She said: “It will be an extra five pence”. Whether it’s the lack of suitable terminals for the kinds of merchants, miscommunication between acquirers and … Continue reading e-cash applications need better design for consumers to accept