Tuesday, December 10 2019 19:34

Too big to innovate? The secrets to innovating at a big corporate

Too big to innovate?  The secrets to innovating at a big corporate

ArmInfo.By Andrew Connell

Global Head of Partnership Development and Innovation, RBWM Digital, HSBC

 

It’s often assumed that the successful enterprises of the future will be the dynamic small-scale innovators of today. The video rental chain Blockbuster disappeared, usurped by the startup Netflix it once turned down the opportunity to buy, because it clung too tightly to old business models. Other industries – including banking – are equally ripe for disruption.

 

The business model for launching a start-up is based on an appetite for risk and uncertainty, while for established businesses the incentive is to keep revenues consistent and minimize risks. Besides, big corporates are too hampered by scale, structure, and established modes of behaviour to really innovate – or so the thinking goes.

 

But the idea that big corporates are blind to the possibility of disruption is dated. Many of the world’s largest firms now have targeted approaches to innovation, particularly in financial services. Research from data analytics firm Indicative suggests that 65% of financial services companies have a dedicated innovation lab, division, or new product innovation group.[1]

 

The challenge for big corporates now is often less a lack of awareness about the need to innovate, and more knowing how to manage innovation properly. Given this, here are six key dos and don’ts for achieving true “innovation” at a big corporate:

 

  1. Don’t confuse digitization with innovation. Innovation is not just doing what you’ve always done, but doing it in a digital way. In all industries, firms need to digitize customer journeys. Getting this right is critically important, but innovation is about looking beyond what customers experience now, and towards defining what that experience might be in future – this could be a new business model created via partnerships or new consumer data. Too many companies are just trying to stay a few days ahead of competitors.
  2. Be clear on the kind of innovation you’re looking to achieve. Innovation approaches vary significantly depending on the intended horizon of opportunity, both in terms of time to market as well as proximity to existing competitive strengths and assets. Corporate innovation teams often act as a catch-all for any kind of “thing we’re not yet doing”, failing to distinguish between incremental improvements to existing businesses, new products or features, and much more radical changes that require shifts in organizational structure.
  3. Be clear on the level of commitment you’re willing to make to your innovation team. True innovation is not just about having the ability to ideate, but also about the ability to execute.
  4. Support for innovation needs to come from the top. To truly innovate, corporates need to commit and invest, but this is not just financial. One of the biggest roadblocks to innovating can be ingrained processes. To overcome this, innovation teams need senior buy-in, supporting experimentation with new ways of working – the right culture in the right work environment.
  5. Do set expectations early on. The biggest challenge for corporate innovation can be balancing the tension between near-term delivery and longer-term sustainability – or the trade-off between long- and short-term investment and effort.
  6. Finally, leverage the threat of disruptors to push your team and your business to do better. Use challenge as an opportunity. As the saying goes, “don’t let a good crisis go to waste”. 

 

Bigger corporates may actually have some advantages in innovation, if done right. In financial services this includes our ability to navigate highly complicated, constantly evolving regulatory environments and better manage risks. Greater scale also often means more resources to rapidly develop a new product or platform and see it immediately active with an established customer base. HSBC was able to leverage strengths like these when rapidly developing its highly successful PayMe app, which went from post-it note idea to launch in only about a year.

 

The current narrative is often a simple win-lose between the disruptors and the disrupted, but the actual picture is more nuanced. In financial services we increasingly partner smaller players – bringing the scale of the traditional players together with the agility of fintechs. According to a survey by consultancy firm CapGemini, 75.5% of fintechs said partnering with a traditional firm was their primary objective, while less than one-fifth stated a preference to compete.[2] HSBC is already working with a wide range of fintechs across the group where we’ve identified a clear benefit for our customers.

 

Partnerships can be highly beneficial for both sides, helping sharing both culture and expertise. The opportunity for partnerships – alongside properly managed innovation programmes – is there in many industries.

 

Innovation Gains Momentum in Armenian Business Sector

 

The use of innovative solutions in business has grown in Armenia with a lot of international attention coming from global forums like World Congress on Information Technology (WCIT) 2019[3] and Global Innovation Forum, held in October 2019[4]. Global funds and organisations try to boost the use of innovation in SMEs and bigger businesses technically and financially.  With a budget of €6 530 000, "Support to SME Development in Armenia" (EU-SMEDA) project, which is funded by the European Union under the EU4Business initiative and implemented by GIZ, has been supporting Armenian startups with two types of grant – Innovation Matching Grants (IMG) and Science and Technology Entrepreneurship (STEP) grants[5]. According to Nune Kochinyan, EU-SMEDA’s Communications Officer, EUR 866.000 has been allocated to 34 Armenian startups in innovation in 2017-2019. In 2016 Armenia joined Horizon 2020, the biggest EU Research and Innovation programme. According to Anahit Khacikyan, Horizon2020 contact point in Armenia, in 2018-2019, 18 projects with participation of Armenian institutions received H2020 grants, 4 of them being SMEs. 

Due to the introduced innovative solutions, Armenia improved its position by 4 points in Global Innovation Index 2019, ranking 64th in the list of 130 countries[6].

 

 

HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 65 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,751bn at 30 June 2019, HSBC is one of the world’s largest banking and financial services organisations.

 

" class="u_link">HSBC in Armenia

HSBC Bank Armenia cjsc was established in 1996. The bank is a joint venture between the HSBC Group, which has 70 per cent ownership, and a member of overseas Armenian business with 30 per cent ownership. HSBC Armenia serves around 30 000 customers through eight offices located in Yerevan and around 392 employees. As of 31 December 31, 2018, the bank has assets of AMD 268 billion including the ones, allocated with the mediation of the HSBC Holdings plc. 

POST A COMMENT
Input digits     


News
Armenia is negotiating with Armenia is negotiating with "Gazprom Armenia" on developing  mechanisms for fixed gas pricing for a period of 10 years
$ 31.6 million transactions made at currency interbank of Armenia on  January 8-17, 2020$ 31.6 million transactions made at currency interbank of Armenia on  January 8-17, 2020
Karina Melikyan, Financial Analyst at ArmInfo IC, won the Best  Analytics nomination in the the UBA contestKarina Melikyan, Financial Analyst at ArmInfo IC, won the Best  Analytics nomination in the the UBA contest
VTB Bank (Armenia) intends to firmly establish its leading position by total number of opening new ATMs and branches in 2020VTB Bank (Armenia) intends to firmly establish its leading position by total number of opening new ATMs and branches in 2020
Armenia and UAE discussed further work of Armenian-Emirate  intergovernmental commissionArmenia and UAE discussed further work of Armenian-Emirate  intergovernmental commission
Gazprom Armenia does not exclude the possibility of applying to PSRC  with a request for a change in gas tariffsGazprom Armenia does not exclude the possibility of applying to PSRC with a request for a change in gas tariffs
Deputy PM: Subsidizing community development programs in Armenia  provides for efficient and modern solutionsDeputy PM: Subsidizing community development programs in Armenia  provides for efficient and modern solutions
Armenia joins agreement on facilitating access of the blind to  printed informationArmenia joins agreement on facilitating access of the blind to  printed information
RAEX-Europe confirmed Armenia`s ratings at `BB-` with outlook  RAEX-Europe confirmed Armenia`s ratings at `BB-` with outlook  "Positive"
HSBC Appoints New CEO in ArmeniaHSBC Appoints New CEO in Armenia
Nicola International Armenia LLC to invest 1.6 billion drams in  production expansionNicola International Armenia LLC to invest 1.6 billion drams in  production expansion
Revenues of the communications sector of Armenia for 11 months of  2019 increased by 0.9% per annumRevenues of the communications sector of Armenia for 11 months of  2019 increased by 0.9% per annum
During 11 months in 2019 volume of cargo transportation in Armenia  decreased by 50.7% with an increase in passenger traffic by 4.3%During 11 months in 2019 volume of cargo transportation in Armenia  decreased by 50.7% with an increase in passenger traffic by 4.3%
Armenia increased production of all alcoholic beverages in  January-November 2019 Armenia increased production of all alcoholic beverages in  January-November 2019 
In structure of manufacturing industry of Armenia, textile production  recorded the highest growthIn structure of manufacturing industry of Armenia, textile production  recorded the highest growth
Armenia ranks 69th among 190 countries in the World Bank`s Armenia ranks 69th among 190 countries in the World Bank`s "Women,  Business and the Law" 2020 report
Armenia`s metallurgical industry has stabilized in growth by December  2019Armenia`s metallurgical industry has stabilized in growth by December  2019
Armenia`s mining industry is steadily increasing volumesArmenia`s mining industry is steadily increasing volumes
In December, output of aluminum foil in Armenia exceeded production  volumes for whole of 2018In December, output of aluminum foil in Armenia exceeded production  volumes for whole of 2018
Armenia`s trade volume with the EAEU keeps growing, while declining  with the EU Armenia`s trade volume with the EAEU keeps growing, while declining  with the EU 
Ameriabank in numbers presented the results of the introduction of a  new online lending systemAmeriabank in numbers presented the results of the introduction of a  new online lending system
Statistics: The unemployment rate in Armenia in Q3 of 2019 amounted  to 18%Statistics: The unemployment rate in Armenia in Q3 of 2019 amounted  to 18%
AmRating: A growing low-cost mortgage is AmRating: A growing low-cost mortgage is "spurred on" by a steady  increase in property prices
RA Ministry of Economy forecasts 10% increase in exports for 2019RA Ministry of Economy forecasts 10% increase in exports for 2019
Armenia`s budget continues to be executed with surplus Armenia`s budget continues to be executed with surplus 
Tigran Khachatryan: In 2020, the number of tourists arriving in  Armenia will not yield to 2019 indicators  Tigran Khachatryan: In 2020, the number of tourists arriving in  Armenia will not yield to 2019 indicators  
Tigran Khachatryan: In 2020, the agricultural sector of Armenia will  enter a positive trendTigran Khachatryan: In 2020, the agricultural sector of Armenia will  enter a positive trend
Armenia`s gross external debt increased by 7.7% per annum by October  1, 2019 - up to $ 11.7 billionArmenia`s gross external debt increased by 7.7% per annum by October  1, 2019 - up to $ 11.7 billion
Ministry of Economy promises improvement of investment indicators of   country in 2020Ministry of Economy promises improvement of investment indicators of   country in 2020
By December 2019, public debt of Armenia reached $ 7.2 billion, and  external debt exceeded $ 5.6 billionBy December 2019, public debt of Armenia reached $ 7.2 billion, and  external debt exceeded $ 5.6 billion


Exchange rates
17.01.2020
RUB7.810.02
USD479.61-0.15
EUR533.71-1.41
GBP626.180.00
CAD364.74-0.32
JPY43.53-0.09
CNY69.63-0.10
CHF496.70-1.44


Experts
RAEX-Europe confirmed Armenia`s ratings at `BB-` with outlook  RAEX-Europe confirmed Armenia`s ratings at `BB-` with outlook  "Positive"
AmRating: A growing low-cost mortgage is AmRating: A growing low-cost mortgage is "spurred on" by a steady  increase in property prices
AmRating: Increasing toxicity of consumer loans will push banks to  not put all their eggs in one basketAmRating: Increasing toxicity of consumer loans will push banks to  not put all their eggs in one basket
Analysts Opinion on Central Bank Report Analysts Opinion on Central Bank Report 
ArmInfo has released its 100th anniversary bank bulletinArmInfo has released its 100th anniversary bank bulletin
Mining Industry as a Fanciful Game of Cats-and-MiceMining Industry as a Fanciful Game of Cats-and-Mice
Tigran Khachatryan: Attracting several transnational investors to  Armenia will allow the country to start playing for high stakesTigran Khachatryan: Attracting several transnational investors to  Armenia will allow the country to start playing for high stakes
During the first 5 years, the agricultural insurance market in Armenia will operate at a lossDuring the first 5 years, the agricultural insurance market in Armenia will operate at a loss
Artak Kamalyan: Education is the key to success. Everything else is of secondary importanceArtak Kamalyan: Education is the key to success. Everything else is of secondary importance
Head of PSRC: Whatever the agreement, the domestic tariff is  dependent on the price at the borderHead of PSRC: Whatever the agreement, the domestic tariff is  dependent on the price at the border
IMF: Armenia needs to achieve sustainable inclusive growthIMF: Armenia needs to achieve sustainable inclusive growth
Artur Atoyan: Problems of fish farmers are solved by the communist  method, that is, they are not solved at allArtur Atoyan: Problems of fish farmers are solved by the communist  method, that is, they are not solved at all
HSBC Bank Armenia digitalizes cooperation with retail clients HSBC Bank Armenia digitalizes cooperation with retail clients 
AmRating agency in cooperation with European Rating-Agentur Expert RA  GmbH has issued regular research on Armenia`s banking systemAmRating agency in cooperation with European Rating-Agentur Expert RA  GmbH has issued regular research on Armenia`s banking system
Yulia Ustyugova: Armenia can get access to IMF “insurance line”Yulia Ustyugova: Armenia can get access to IMF “insurance line”
Armand Arton: The question whether citizenship should be granted in  return for investments is rather rhetoricalArmand Arton: The question whether citizenship should be granted in  return for investments is rather rhetorical
Former head of the Ministry of Finance: <Confrontation> with Lydian may cost much to ArmeniaFormer head of the Ministry of Finance: with Lydian may cost much to Armenia
Vardan Aramyan: It will be unreasonable if the government goes to revise the allowable national debt ceiling in GDPVardan Aramyan: It will be unreasonable if the government goes to revise the allowable national debt ceiling in GDP
HSBC Bank Armenia increases efficiency and focuses on digital servicesHSBC Bank Armenia increases efficiency and focuses on digital services
Bulgarian Minister: The level of Armenian-Bulgarian economic  cooperation is still unsatisfactoryBulgarian Minister: The level of Armenian-Bulgarian economic  cooperation is still unsatisfactory

Search by date

Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000

Commented
John D & Sosi Balian Foundation will allocate $ 1.65 million for  construction and improvement of new building of Erebuni  Archaeological Museum-ReserveJohn D & Sosi Balian Foundation will allocate $ 1.65 million for  construction and improvement of new building of Erebuni  Archaeological Museum-Reserve
Mining Industry as a Fanciful Game of Cats-and-MiceMining Industry as a Fanciful Game of Cats-and-Mice
Russian processing company Russian processing company "MultiCarta" discussed cooperation  opportunities with Yerevan Municipality in the transport sector
$ 270 Million to be invested in the construction of the first  skyscraper in Yerevan$ 270 Million to be invested in the construction of the first  skyscraper in Yerevan
The AGBU Women Entrepreneurs Program Launched in Artsakh: FRUITFUL  ARMENIA Foundation is the partnerThe AGBU Women Entrepreneurs Program Launched in Artsakh: FRUITFUL  ARMENIA Foundation is the partner
Forecast: Armenia has good prospects for expanding its presence in  the Polish marketForecast: Armenia has good prospects for expanding its presence in  the Polish market
Armenian government`s delegation headed by Prime Minister will take  part in the St. Petersburg International Economic Forum on June 6-7Armenian government`s delegation headed by Prime Minister will take  part in the St. Petersburg International Economic Forum on June 6-7
Concessionaire of Zvartnots International Airport promises to become  one of the best operators in the worldConcessionaire of Zvartnots International Airport promises to become  one of the best operators in the world
Arthur Javadyan: Central banks are not responsible for economic  growthArthur Javadyan: Central banks are not responsible for economic  growth
Forecast: Electricity exports to the Middle East through Iran are a  key component of Armenia`s geo- economic strategyForecast: Electricity exports to the Middle East through Iran are a  key component of Armenia`s geo- economic strategy
ArmInfo IC: In Armenia,  CMTPL loss ratio increased up to 64.5% in Q1  2019ArmInfo IC: In Armenia,  CMTPL loss ratio increased up to 64.5% in Q1  2019
From January 1, 2020, the cost of customs clearance of cars from  non-EEU countries in Armenia will increase by at least 4-5 fold:  whether the market for used cars is going upFrom January 1, 2020, the cost of customs clearance of cars from  non-EEU countries in Armenia will increase by at least 4-5 fold:  whether the market for used cars is going up
Overdue loans accelerate growth in banking system of ArmeniaOverdue loans accelerate growth in banking system of Armenia
RA Prime Minister: European Union is not ready to finance 100% of  development programs implementation in ArmeniaRA Prime Minister: European Union is not ready to finance 100% of  development programs implementation in Armenia
Converse Bank offers online loans at a low effective interest rateConverse Bank offers online loans at a low effective interest rate
Starting from Jan 1, 2020, a new micro-business taxation system will  be introduced in ArmeniaStarting from Jan 1, 2020, a new micro-business taxation system will  be introduced in Armenia
Renco company will attract additional shareholders and partners to  the project of building a new thermal-power plant in ArmeniaRenco company will attract additional shareholders and partners to  the project of building a new thermal-power plant in Armenia
T.Avinyan: The Government is open for cooperation and encourages  active dialogue and interaction in all areas T.Avinyan: The Government is open for cooperation and encourages  active dialogue and interaction in all areas 
Agreement on construction of a new unit with combined gas cycle  signed in YerevanAgreement on construction of a new unit with combined gas cycle  signed in Yerevan
Veolia Jur: Regulatory charges are false and unfoundedVeolia Jur: Regulatory charges are false and unfounded
Armenian Prime Minister: We are gaining momentum for economic takeoffArmenian Prime Minister: We are gaining momentum for economic takeoff