Page 38 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

This development did not occur in response to a market need: it emerged
because people within the banking business used their knowledge and
information. This included market-sensing abilities, understanding
of customers, information and forecasts about economic and social
trends, experience with similar product ideas (such as installment
loans), and knowledge about new developments in technology. A period
of major innovation within the financial services industry followed,
including ATM machines and the growth of internet banking.

This type of innovation is markedly different from bottom-up
innovation:

• Senior management support was essential: they set up the unit,

helped to develop its features, and gave it the support needed to
take root and grow.

• The senior management role was significant early on in the

process, creating the right conditions and providing support and
momentum.

• Information was at the heart of this top-down innovation.

Harnessing information and tacit knowledge is an essential part
of ensuring that the innovation process starts, continues, and
delivers success.

In practice

• Encourage senior management to become directly involved in

the innovation process.

• Use the market-sensing abilities, knowledge, and experience of

team members to evaluate innovative ideas.

• Create a “culture of innovation” within your organization by

giving employees a forum to discuss and evaluate their ideas,
and rewarding innovation.

100 GREAT BUSINESS IDEAS • 31