Innovation – Mobile Key card

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Technology and Innovation has changed the face of the global world today, the companies are focusing on building innovative products across the market. ‘Smart phones’ are one of the most innovative products that have been developed by the organizations so as to fulfill the needs and requirements of the consumers across the globe.

In this paper, we will focus on the opportunity to develop a ‘Key card’ at a cost of $4M for a US banking firm to supply their customers as a security measure for mobile banking by Sony. A ‘Key card’ is a small handheld device (like a calculator) that provides a unique PIN in real time that you read from your device and use when making a mobile banking transaction.

Innovation – Mobile Key Card

IntroductionThe companies are strongly focusing on innovation with a strong focus on innovation and change, the development, application, and enhancement of new technologies are occurring at a breathtaking pace, and innovation is determining the way business is being conducted. With the increasing number of new ventures, products, technologies, and patents the companies have to have a very strong focus on innovation and change with the help of which the companies are able to survive in the competitive world today. The companies are focusing on redefining their markets, restructuring their operations, and modifying their business models so as to cope up with the competition. With a focus on innovation and change the companies are moving ahead and attaining competitive advantage so as to survive in the competitive market. With a focus on innovation the companies are able to focus on different opportunities and taking the advantage of the opportunities.

The business environment in today’s time is strongly filled by ambiguity and discontinuity, to evade from this the companies needs to strongly focus on improvising and experiment different things so as to as attain sustainable competitive advantage, Innovation does not result into immediate result, the innovation undertaken takes time to produce effective and productive results.

Mobile banking technologyMobile banking is for people on the move who want to access their bank accounts and transfer funds anytime, anywhere through their phones without visiting banks in person. Mobile applications provide the advantage that can be accessed from anywhere and anytime. The nowadays companies have many branches in different locations from the world. Their employees need to move from a location to another, in order to fulfill the company needs. They are using mobile applications in order to access resources from different locations. Mobile applications are defined as internet applications that fit very well in the mobile computing environment. The mobile computing can be viewed as an extension of distributed computing types adding mobility to host computers.

Mobile banking provides a means for the rural poor, in particular, to access much-needed banking services. It is enhancing incomes and offering an important avenue for saving. With operators scrambling to establish a foothold in the market, we expect to see the continued expansion of mobile banking in the global world.

For people who do not have access to traditional banking services, mobile banking is an attractive solution, offering services at any time. Apart from managing their bank accounts, customers can pay for goods and services, settle utility bills and pay for mobile phone top-ups. Any low-cost handset can support these services. These factors make mobile banking particularly suitable for low-income households and people in rural areas, who may be unable to get to banks during opening hours. In addition to the pure convenience of the service, it is cheap compared to traditional money transfer service operators such as Western Union. Furthermore, it offers a relatively safe means of transporting and transferring sums of money, and is therefore attractive to small-scale traders.

Innovation ReviewMobile commerce, in layman’s terms, refers to the exchange of goods and services using a mobile device such as a mobile phone or a PDA. M-commerce is slowly and steadily gaining on popularity due to many reasons – the increasing ubiquity of mobile devices and the anywhere, anytime connectivity offered by mobile clients being a few of them. Mobile banking is an important application of mobile commerce and involves conducting banking transactions through a mobile device.

This may include account balance and statement enquiries, fund transfers, paying bills, etc. The sensitivity of the data transferred is evident and hence, is the need for security. Use of SMS can be seen commonly in m-commerce, for instance, in m-banking where banks send the last transactions in the user’s account through SMS to the user. Security is an important concern in such a scenario along with the limited range of services that can be offered. Security is also a concern with WAP where the WAP Gateway presents a weak link in security with the need to incorporate the mobile operator in the trust chain. An end-to-end security solution is a better alternative for secure m-commerce architecture. .

The mobile banking has one of the major concerns which relate to the security of the bank account, with the introduction of the key card, the banks will be able to provide high end security on the Mobile banking with which the company will be able to have enhanced security and mobile banking transactions.

Customer Acceptance

Technology acceptance model is the model which helps in bringing into picture different casual relationships between system design features, perceived usefulness, perceived ease of use, attitude toward using, and actual usage behaviour. It is particularly an informative mechanism and representation of different mechanism by which the one accepts the information and adopt to the technology that has been brought forward by the user.

External variables: With the changing needs and requirements of the market, as the consumers are focusing on technology and innovation and want everything at ease, they want to adopt m-commerce technology and m-banking. The changing technology and innovation is the main external variable which has influenced the consumers to adapt for the changes that are needed and required. Technical support is one of the major constraints that affect the mobile banking services.

Perceived usefulness: Mobile banking has become the integral part of the banking activities, mobile banking helps the consumer to do financial transaction and stay connected with the bank account, it gives consumers the feasibility to access the bank and do the transaction anytime, anywhere. Thus for every transaction, the consumers do not have to go to the bank to do the particular transaction.

Perceived ease of use: With mobile banking, the customers will have the flexibility to use mobile banking anytime, anywhere. Mobile banking is for people on the move who want to access their bank accounts and transfer funds anytime, anywhere through their phones without visiting banks in person, with this they are able to take the advantage of banking at their finger tips.

Attitude towards using: There are different factors which affect the attitude of the consumers which relates to usage, accessibility, speed and security. With usage one is able to analyze the degree of usage for the services that are provided to the customers for mobile banking, accessibility is concerned with the time and location of different accessibility and the corresponding tools and hardware capability and availability of the software which is required to employ for the services that can be perceived from the mobile banking. For accessing the Mobile banking it is important for the consumer to have adequate accessibility of the internet and wireless connection for the mobile with which they are able to connect online to the mobile banking and do the required transactions. Security is one of the major concerns of the customers across the globe, as they consider that with mobile banking, others can have unauthorized access to their personal information during the service usage and any transactions that incur by them. They have high concern about the privacy and security in terms of banking.

Behavioral intention to use: As per the study it is analyzed that more customers uses mobile banking and mobile internet as they have positive relationship between the uses of the mobile banking. Technical support is one of the most important aspect which triggers the behavioral aspect of the consumer.

The research has been conducted on the basis of the technology adopted model, which has been represented by:

With the increasing use of mobile internet and mobile banking, the companies are able to have a strong focus on adapting to the changes in the technological field in terms of mobile usage.

Mobile experience is considered as the internal constraint which affects the mobile banking service of the consumers whereas technical support is considered as an external factor which stimuli the consumers.

H1-1: The higher the level of mobile experience, the greater the positive relationship between customers’ perceived usefulness and their intention to use mobile banking.

H1-2: The higher the level of mobile experience, the greater the positive relationship between customers’ perceived ease of use and their intention to use mobile banking.

H2-1: The higher the level of technical support, the greater the positive relationship between customers’ perceived usefulness and their intention to use.

H2-2: The higher the level of technical support, the greater the positive relationship between customers’ perceived ease of use and their intention to use.

Considering these factors, the interaction effect of the intension to use is highly dependent on the technical support and security measures.

In the end it can be said that both mobile experience and technological support are important factors in analyzing continuous intention to use (i.e., whether or not consumers would continue to use mobile banking services). Thus it is important for the companies to provide high end security and analysis to the consumers which will attract them to use the particular mobile banking feature.

Understanding customersConsumers are the main people who buy the product they are the ultimate market of a product. It is important to know the buying behavior of the consumers as it helps in analyzing and designing the marketing strategy of the organization. So as to maintain the product that satisfies their present as well as future needs, the consumers indulge themselves in different problem solving or purchasing decision making process. There are different kinds of level of involvement which varies with kind of product that is needed to be purchased.

Product attributes:

Considering different attributes of the products we can say that the consumers choses a service as per the attributes that the product offers.

Attribute Hierarchy protocol

Considering the attributes that the key card will provide to the consumers includes the high end security and technological support with which they will be able have flexibility and ease in accessing the banking. There are different options that the consumer can choose from which relates to traditional banking, internet banking and mobile banking. Mobile banking is considered as the best option if provided adequate security and technical support so as to have secure banking across the platform.

Attribute rankingThere are different attributes which needs to be considered in the use of mobile banking by the consumers.

No. Attribute Rank Weight

1 Security 1 .25

2 Technical support 1 .20

3 Mobile experience 2 .10

4 Flexibility in transactions 2 .10

5 Connectivity to the bank 2 .10

6 Hardware and software support from cellphone 2 .15

7 Availability of the access 2 .10

These are some of the most important attributes that needs to be considered by the company when developing the product for the US bank and with this the consumer will be able to analyze the product and use those accordingly.

Market ForecastWith the changing needs and demands of the consumers and enhancing technology, the consumers are trying to adopt to the changes across the market and to try new products which are launched in the market.

“A fifth of current account holders in the US state that mobile banking facilities are an essential feature of a current account, according to a Datamonitor consumer survey. The use of the mobile channel for conducting banking activities remains low, but there are clear signs for the future popularity of this channel.

Despite a small minority of US consumers currently using the mobile channel to conduct banking activities such as checking their balance or viewing a statement, 20% of current account holders believe that mobile banking facilities are an essential feature of a current account product (Datamonitor Financial Services Consumer Insight survey, June 2011). Mobile applications are frequently used by consumers in everyday life, with 18% of consumers stating that they use mobile apps several times a day and 19% using these daily, demonstrating that consumers are accustomed to this channel. Ofcom has also reported that 27% of adults and 47% of teenagers in the US now own a smartphone.

Currently the key limiting factor for consumers is the availability of mobile banking applications in the US, especially those which are fully transactional. Current account providers should be looking to develop mobile banking apps to meet consumer demand, which is forecast to grow further due to increased use of smartphones and high smartphone holding among today’s teenagers.” (Datamonitor report, 2011)

Considering the consumer adaption curve we can say that there will be about 2% people who will be considered as the innovative consumers who will focus on adopting to the new key card for secure mobile banking and more than 10% people will be early adopters, as mobile banking is a way which will provide easy access to bank and will have added flexibility in doing any kind of mobile transaction, this will save time and travel of the consumers and all their major banking transaction will be at their finger-tips. About 15% people will be considered as early majority and 12% consumers as late majority. The remaining people will be considered as the laggards.

The number of American consumers using a mobile phone to manage their finances is estimated to have grown at an annual rate of 25% in 2011. Mobile banking is projected to grow at a compounded annual growth rate of 30% during 2011–14. Mobile banking usage is expected improve significantly. Increasing mobile banking usage will help the group bring down operational cost per branch and also attract more customers.

Revised forecast

Considering the revised forecast with the increasing trend of mobile banking, with secured banking and high end technical support by the company like sony, the use of mobile banking is expected to increase by about 40% in the near future.

Inter-project learning:This is the age of innovation and technology which focuses on enhancing the technology and innovation. The key descriptive words used about this new “innovation challenge” of the twenty-first century are: Dreaming, Creating, Exploring, Inventing, Pioneering, and Imagining! The companies need to have a strong focus on the “innovative vision, courage, calculated risk taking, and strong leadership”. It is simply answering “the innovative challenge of the twenty-first century.” Thus, the “I-Challenge” confronts all organizations today.

The need for the change is concerned with:

Trends: The changing needs and demand of the consumers and the environment is one of the biggest aspect of change for the organization. The company focuses on observing the change in society, technology, economy, and government.

Unexpected Occurrences:  There are times when the company faces different unexpected successes or failures, at that point of time the company needs to focus on change and innovation.

Incongruities: With the difference in the expectation and the reality the company needs to focus on change.

Process Needs: When the company faces different changes in the process, in that case the company needs to focus on changing its process.

Industry and Market Changes: With the change in the market and industry the company needs to focus on innovation and change, continual shifts in the marketplace occur, caused by developments such as consumer attitudes, advancements in technology, and industry growth. Industries and markets affects the working of the company which calls for the innovation.

Demographic Changes: With the shift in the demographic needs and trends the company needs to reevaluate its strategies.

Perceptual Changes: Changes which occurs due to people’s interpretation of facts and concepts.

Knowledge-Based Concepts: When the company focuses on inventing something new in that case the company focuses on innovation. Culture for innovationOrganization culture fosters an organization to achieve its business goals and objectives. The culture of the organization helps in increasing the efficiency of the organization as well as the employees.

The corporate culture of the organization brings out the value and norms of the organization as well as the organizational behavior in respect of technologies, strategies, products and services that are used in the organization.

The organizational culture also fosters changes in the organization like downsizing, technological advancement which is important for the growth of the organization.

The company focuses on building a strong environment and culture for innovation and change with a strong focus on building a friendly based environment which is based on promoting safe and positive workplace. The company follows and regulates appropriate health and safety concerns and procedure, the company focuses on innovation with a strong focus on open communication, the company values honesty, trust and respect. The company focuses on creating an environment which fosters growth and innovation.

In establishing the drive to innovate in today’s corporations, the company focused on investing heavily in innovative activities that allow new ideas to flourish in an innovative environment. This concept, when coupled with the other specific elements of a strategy for innovation, has helped in enhancing the potential for employees to become innovation developers. The company has also focused on providing more nurturing and information-sharing activities to its employees. In addition to establishing innovative ways and nurturing innovators, the company has strongly focused on developing a climate that will help innovative-minded people reach their full potential. The perception of an innovative climate is critical for stressing the importance of management’s commitment to not only the organizations’ people but also to the innovative projects.

Learning for innovationInnovation is a process that needs to be managed within an organization. This includes activities such as encouraging ideas, defining goals, prioritizing projects, improving communications, and motivating teams. In addition, entrepreneurs must “learn” from their experiences as well. An organization that can continuously learn and adapt its behavior to external stimuli does so by continuously adding to its collective knowledge store. Researcher Andrew C. Corbett has identified the importance of acquiring and transforming the information and knowledge through the learning process. His research was able to lend credence to the theories about the cognitive ability of individuals to transform information into recognizable opportunities. So, how an organization acquires, processes, and learns from the prior knowledge that it has gained is critical to the complete innovation process.

Conclusion:The company has a strong focus on creativity and innovation with a strong focus on innovative environment to work in. Organizational change and a systematic approach to it-organization are to change at every step in the dynamic changing world. The factors can be internal or external like the carbon credit an external factor while growth target changed an internal factor. The change can affect the organization as well as the employee at large so; a good decision needs to be taken taking care of all the aspects of the organization. Organization change should foster the change that is targeted on the improving the performance of the working staff as well as the organization as a whole. The foundation of an systematic approach is that when a resource whether that is a person, function, or a product or service that is a part of the organization as an whole. A change in one thing will bolster the need to change something/s related to the former thing. System thinking helps the managers to seek the need of doing a research analysis to monitor the effect that a change will have on the board perspective on the company. Taking a broad view of the things that needs to be changing this will help them to identify the concern areas and issues this whole will help to quickly resolve the issue at hand. Systematic approach does not guarantee that the change will be without the ill affects this its guarantee that this will help the organization to integrate he aims of the changes within the organization.

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