If you have read any articles on the topic of fintech recently, you must have read the term ‘Disruptive Innovation’. Disruptive innovation is a concept that says new technology or business models can reduce the value and utility of existing products or services by creating something better and more user-friendly. This concept is prevalent in almost every sector and many are calling it ‘the Fourth Industrial Revolution’. The digitization of financial services has changed how they operate and offer services to customers. It has also opened up newer roles in banking and insurance firms that were not before feasible. Digital transformation has brought about a fundamental change in the way banks do business, which will only increase in pace with time. The digital age means changing everything about your organization from your processes and technologies to business models and customer experiences. However, there are certain practices that can help you get off to a smooth start as well as safeguard against pitfalls along the way.
Change can be exhausting
The time for change is now. Every organization that has not undergone a digital transformation yet is missing out on some of the advantages and benefits that come with it. Choosing to re-engineer your business from the ground up is a mammoth task that can be daunting, especially when you are operating in an industry as complex as banking. If your company has been holding on to its current systems, processes and practices for too long, it’s time to make some changes. Organizations can only take so much before they start to breathe more heavily. That’s where continuous improvement comes in – creating the right mindset and culture and making sure staff have the right resources will help you make steady progress towards your goal.
Becoming more Resilient to Disruptive Innovation
The Fourth Industrial Revolution is all around you, and as a fintech business, it is important to prepare for the changes that this disruptive innovation may bring. There are certain practices that can help you get off to a smooth start as well as safeguard against mistakes along the way. First of all, knowledge is power. To successfully combat disruption, it is necessary for firms to have a deep understanding of current market conditions and have a vision for what the future holds for their sector. Developing an organizational culture where encouraging employees to share information with one another will also help safeguard against mistakes in your company’s day-to-day operations. It will also allow you to assess risks effectively and plan accordingly. Finally, it is important to be open-minded when approaching new ideas and concepts that disrupt your business model or strategy. This means embracing experimentation so that you can stay ahead of your competition. The key here is not to lose sight of your core values or goals while experimenting with new strategies or technologies. If done correctly, experimentation has the potential to create significant value for your organization in the long run.
Taking advantage of change
As you embark on a digital transformation, one of the most important things to remember is that change is inevitable. If you are not willing to adapt and adopt new technologies, your business will simply be left behind. There is no such thing as a ‘one size fits all’ solution when it comes to change management. In order for any organization to succeed in the digital age, they need to have well-defined processes, systems and structures. This allows them to continue with their work while simultaneously embracing the changes that happen within their industry. Make sure you have a clear vision of what success looks like for your organization before taking on the digital transformation project. You will need to develop an understanding of the customer experience, market dynamics and strategy before deciding on how you want to structure your company digitally. You should also create a financial model showing how costs relating to technology will be managed over time.