Ways to Introduce Innovation Solutions - Assignment Example

Ways to Introduce Innovation Solutions/ Increased Innovation in the Banking Sector Ways to Introduce Innovation Solutions/ Increased Innovation in the Banking Sector Information Communication Technology (ICT) is remarkably among the vital factors that promote service innovation across different sectors of every country’s economy. The banking sector is not exceptional. The banking sector is characteristic of embracing innovation solutions through the application of ICT in service delivery process. Barrett et al. (2015) highlight three major findings outlining how IS Research and designing for service should integrate to help drive service innovation in the wake of contemporary society’s advancements in ICT. They propose methodologies that can be applicable in designing for service, an approach that would serve to promote innovation in the service sector. Designing for service, according to Barrett et al. (2015), is fundamental to achieve service innovation in the contemporary businesses environment. Design thinking entails generating insights about the end users of a service to outlining perspective of their preference. First, Barrett et al. (2015) suggest that researchers should embrace the concepts of design thinking approach to integrating insights of end users of a service to promote innovation solutions. That involves focusing on multiple the demands actors who use the service such as managers, employees, customers, users and other stakeholders during the design process. In relation to the suggestion, designing for service in the banking sector should take into account the unique demands of all users of the system. It must integrate the necessities and demands of managers in the banking sector. It must suit the demands of customers and other users. For instance, designing for service should ensure security of the system that constitutes a key concern of the managers. Managers should have a secure system that is not vulnerable money laundering or effects of cyber-attacks. It should support supervision of activities and transactions in the system. In meeting the demand of employees, design for service in the banking sector should be easy to use and secure. Customers demand innovation solutions that are effective in driving competition. It should create new possibilities in financial transactions that are convenient for the customer to use. Design for service in the banking sector should allow the use of new technologies that promote efficiency for the customer. Other users such as shareholders in the banking sector should find the system easy to access and use. In essence, all users of the service expect exceptional mix of products suited to address their distinct needs. Great customer experience in banking services is vital to support success the sector. Besides excellent customer experience, they demand value, affordable rates and convenience. The second proposal by Barrett et al. (2015) is a broad consideration of the contributions of the design to social improvements through service innovation in terms of where and how it achieves the goal. Contribution of design to social improvements is particularly much necessary among the populations in developing economies. Without such considerations, developing economies may not realize much from the benefits of the ICT era. That is because developing economies rarely have access to infrastructure that can support their delivery of social services. Design, therefore, should focus on enhancing social improvements such as delivery of services to remote locations through digital technologies, for instance. Designing for service in the banking sector should respond to the necessity to ensure social improvements through service innovation. Customized banking, for instance, is important to respond to distinct financial demands of customers. It entails responding to segment-specific needs of the different customers. Banks should set financial services for the poor and low-income customers. The global reforms in mobile banking, for instance, continue to uplift poor households because they are affordable and reliable. Expanding poor and low-income people’s access to financial services should constitute a key goal of the design for service in the sector (The World Bank, 2013). Developing economies have a high percentage of low-income and poor population compared to western economies. Elevating the population demands researchers to develop digital platforms -that serve to connect the poor and low-income populations in developing economies to financial service providers. Designing for service in the banking sector should focus on efficiencies that reduce the time and rates spent by the poor and low-income members spend to access financial services. In that manner, it will contribute to social improvements of the poor and low-income customers mostly in developing economies. The third suggestion by Barrett et al. (2015) relates to differences between western and developing economies, which should be reflected in research. It is noteworthy that western economies are different from their developing counterparts in diverse considerations. They have different institutional and economic structures. In essence, western economies’ structures are highly advanced. Extant theories that might be applicable to western economies might not be viable when implemented in developing economies. That offers an opportunity to researchers during designing for service to ensure proposals that are suitable to emerging economies. Design for services in developing economies should be able to suit their unique demands. The service innovation process should be based on benchmarked research aimed at enhancing the adoption of technology in emerging markets. Digitally enabled services should be responsive to demands in the emerging markets’ unique conditions. Service innovation researchers and companies should realize the opportunity to propose technologies that assist such emerging markets. Western and developing economies’ banking sectors are different. There is a major difference in access to financial services in developing and western economies. Design for service in the sector should aim at improving access to financial services in developing economies. Researchers should formulate services that best suit developing economies and enhance economic progress. The banking sector should focus on financial services to small businesses that provide employment to a majority of the population in developing economies. Micro-credit facilities to boost small business are best applicable in developing economies. Support for financial sector innovation is important in developing economies. Initiatives to reform the financial sectors of western and developing economies should be different. The regulatory environment should also respond to unique specifications in the sector. Researcher should focus on expanding financial access by women and promote financial education programs (The World Bank, 2014). References Barrett, M., Davidson, E., Prabhu, J., & Vargo, S. L. (2015). Service Innovation in the Digital Age: Key Contributions and Future Directions. MIS Quarterly, 39(1), 135-154. The World Bank. (February 26, 2014). Expanding Women’s Access to Financial Services. Retrieved March 8, 2015 from http://www.worldbank.org/en/results/2013/04/01/banking-on-women-extending-womens-access-to-financial-services The World Bank. (2013). Access to Finance: The Unfinished Agenda. The World Bank Development and Research. 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