|By Business Wire||
|February 12, 2013 01:16 PM EST||
This is not a news flash: Payments is about the most complex platform industry there is and igniting innovation in payments is anything but a given these days, even if a company is doing it within the construct of a successfully operating platform. The complexity, as we all know, rests with the discipline of having a strategy that can create the delicate balance across all stakeholders, deliver traction in a relevant timeframe and drive profits.
But this perhaps is: “An abundance of evidence suggests that greater attention to the ways in which organizations and incentives shape the innovation process can produce significantly better results,” remarks Josh Lerner, Harvard Business School Professor and author of The Architecture of Innovation. This new book sheds new light on how corporations should organize their innovation initiatives in order to produce the best results: getting innovation to market and ignited. The implications to the payments industry are real and they are relevant.
This topic, The Architecture of Innovation in Payments, is one of several interactive keynote sessions at The Innovation Project 2013, a two day gathering of senior executives in payments who are driving innovation in the payments and broader commerce ecosystem hosted by PYMNTS.com.
Lerner makes the case in the book that Corporate R&D doesn’t necessarily yield the desired outcome. He points out in his book that as recently as the end of the 1990s, for those companies that organized innovation that way, R&D-driven innovation contributed less than 25 percent of the value of what investments in traditional assets would have produced for that company (e.g. supply chain efficiencies, cost reductions, etc.). Venture investing isn’t seen as the panacea either. Investments made by the entire venture capital sector over the course of any given year amount to much less than the R&D budgets of a single giant pharmaceutical firm like Merck or a automotive giant like GM. And, in 2011, venture-backed firms represented less than 10 percent of all publicly traded firms in the U.S.
So, what would? Well, surprisingly, what many have already started to do. Simply stated, it involves having corporations invest in promising start ups, usually through a separate entity, and then creating an operating model that is helpful enough to the venture without drowning it in the corporate bureaucracy that would only slow things down – or worse.
There are two forces of nature that are moving the industry in this direction. First, the largest players in the space are today funding dozens of “innovation experiments” focused on driving payments into the mobile realm, and more broadly expanding the reach of electronic payments. At the same time, access to new technologies and the availability of IP-enabled devices such as the smart phone and tablet reduced the barriers to entry for many an emerging venture to make a play for something new, innovative and game-changing. Hundreds of millions of dollars of venture money poured (and are pouring) into the sector to foster the “next” new thing in payments. In 2012 alone, more than $1 billion was invested in emerging payments firms by VCs. But as good (and well funded) as their great ideas might be, most of these ventures will need distribution and scale to ignite and access to the “incumbents” to make that happen in any sort of meaningful way. They’ll also need access to the people inside the organization who can “school” them on what it means to be in the payments business. Many of them have no clear idea of its complicated inner-workings.
Those two forces, Lerner believes, sets up exactly the right environment for the right model for innovation in large organizations – corporate venturing – something that takes the best of both worlds and devises a structure, a framework and a set of incentives for advancing strategic goals and generating good returns on those investments.
The Innovation Project 2013 interactive keynote session on The Architecture of Innovation in Payments will tackle this topic head on. Lerner and Diane Offereins, President of the Discover Network, will engage four C-suite innovators — all pioneers in designing and deploying innovation in payments — on a wide-ranging discussion of incentives, partnership strategy, innovation design, ignition obstacles and more. Offereins is credited with coming up with the idea to license the Discover network to other innovators to propel their innovation agenda four years ago. She will give Innovation Project 2013 delegates a peek inside the strategy that was used to develop and deploy this strategy internally, and use that to engage the panel on the impact of that strategy on innovation inside of the payments sector. Panel participants include:
- Chris Gardner, co-Founder and CEO of Paydiant, a cloud-based solution that enables banks and merchants to accept payments via the mobile phone. Gardner will share his thoughts on how he and Paydiant have aligned incentives for innovation with some of the biggest bank and merchant partners in the US.
- Mike Kennedy, Chairman of ClearXchange and EVP for innovation at Wells Fargo, will describe ClearXchange’s blueprint for getting the three biggest banks to the table around a new idea, and how that framework may change in order to take ClearXchange to the next level of innovation in mobile payments.
- Chitra Narasimhan, Managing Director at CitiVentures, will offer her insights about how to structure and incent innovation inside huge financial institutions and provide support to emerging ventures without overwhelming them in corporate bureaucracy.
- Mike Pasilla, CEO of Elavon, will describe how innovation works at Elavon and explain how he attracts and retains key partnerships while balancing the requirements of his bank parent company, and payments regulatory environment.
The Innovation Project 2013 is being held on March 20-21 at Harvard University. For information on how to register and for a look at the entire programming line up, please visit theinnovationproject2013.com.
About The Innovation Project
Over 2 days, more than 100 speakers and 500 senior members of the payments industry will change the way that the payments and its broader commerce ecosystem thinks, talks, delivers and ignites innovation. On March 20th and 21st the greatest minds in commerce and payments will assemble at Harvard University near Boston to kick the conversation about innovation up to an entirely different level at a program called The Innovation Project. Speakers and delegates are among the most senior executives and elite innovators from literally every established payments company worldwide, along with the CEOs/founders of the most innovative start-ups. One of its five modules includes pairing industry CEOs with external thought leaders such as Al Gore (former US VP), Steve Levitt (Freakonomics), Eric Reis (The Lean Start Up), Rosie Rios (US Treasurer), Russell Simmons (Rush Card), Raj Date (CFPB), and Josh Lerner (Architecture of Innovation) to challenge the conventional wisdom around what it will take to get merchants and consumers to adopt new ways to shop and pay. Warren Buffett is the program’s keynote. The Innovation Project also hosts the industry’s 2013 PYMNTS.com Innovator Awards, given to 15 of the industry’s top innovators over dinner, which this year will be emceed by B.J. Novak of The Office and will introduce delegates to 40 of the hottest “next generation” payments innovators. The ThinkAThon will challenge a small group of delegates to frame solutions to tough industry problems and compete in front of delegates and judges for the title of “Master Payments Guru 2013.”
PYMNTS.com is reinventing the way in which companies in payments share relevant information about the initiatives that shape the future of commerce and make news. This powerful B2B platform is the #1 site for the payments industry by traffic and the premier source of information about “what’s next” in payments. C-suite and VP level executives read it daily for these insights, making the PYMNTS.com audience the most valuable in the industry. It provides an interactive platform for companies to demonstrate thought It provides an interactive platform for companies to demonstrate thought leadership, popularize products and, most importantly, capture the mindshare of global decision-makers. It’s where the best minds and best content meet on the web.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Sep. 28, 2016 09:15 PM EDT Reads: 322
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 28, 2016 08:30 PM EDT Reads: 1,709
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
Sep. 28, 2016 08:30 PM EDT Reads: 425
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
Sep. 28, 2016 08:15 PM EDT Reads: 318
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 28, 2016 07:00 PM EDT Reads: 1,625
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Sep. 28, 2016 06:45 PM EDT Reads: 4,150
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
Sep. 28, 2016 06:30 PM EDT Reads: 3,109
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Sep. 28, 2016 06:15 PM EDT Reads: 283
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 28, 2016 06:00 PM EDT Reads: 1,771
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Sep. 28, 2016 05:15 PM EDT Reads: 246
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Sep. 28, 2016 05:15 PM EDT Reads: 247
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Sep. 28, 2016 05:00 PM EDT Reads: 1,724
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
Sep. 28, 2016 04:30 PM EDT Reads: 2,813
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Sep. 28, 2016 03:15 PM EDT Reads: 378
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 28, 2016 03:15 PM EDT Reads: 1,314
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Sep. 28, 2016 03:00 PM EDT Reads: 3,872
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 28, 2016 02:45 PM EDT Reads: 1,746
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 28, 2016 02:30 PM EDT Reads: 2,932
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Sep. 28, 2016 02:30 PM EDT Reads: 3,337
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Sep. 28, 2016 02:00 PM EDT Reads: 4,427