|By Business Wire||
|February 12, 2013 01:16 PM EST||
This is not a news flash: Payments is about the most complex platform industry there is and igniting innovation in payments is anything but a given these days, even if a company is doing it within the construct of a successfully operating platform. The complexity, as we all know, rests with the discipline of having a strategy that can create the delicate balance across all stakeholders, deliver traction in a relevant timeframe and drive profits.
But this perhaps is: “An abundance of evidence suggests that greater attention to the ways in which organizations and incentives shape the innovation process can produce significantly better results,” remarks Josh Lerner, Harvard Business School Professor and author of The Architecture of Innovation. This new book sheds new light on how corporations should organize their innovation initiatives in order to produce the best results: getting innovation to market and ignited. The implications to the payments industry are real and they are relevant.
This topic, The Architecture of Innovation in Payments, is one of several interactive keynote sessions at The Innovation Project 2013, a two day gathering of senior executives in payments who are driving innovation in the payments and broader commerce ecosystem hosted by PYMNTS.com.
Lerner makes the case in the book that Corporate R&D doesn’t necessarily yield the desired outcome. He points out in his book that as recently as the end of the 1990s, for those companies that organized innovation that way, R&D-driven innovation contributed less than 25 percent of the value of what investments in traditional assets would have produced for that company (e.g. supply chain efficiencies, cost reductions, etc.). Venture investing isn’t seen as the panacea either. Investments made by the entire venture capital sector over the course of any given year amount to much less than the R&D budgets of a single giant pharmaceutical firm like Merck or a automotive giant like GM. And, in 2011, venture-backed firms represented less than 10 percent of all publicly traded firms in the U.S.
So, what would? Well, surprisingly, what many have already started to do. Simply stated, it involves having corporations invest in promising start ups, usually through a separate entity, and then creating an operating model that is helpful enough to the venture without drowning it in the corporate bureaucracy that would only slow things down – or worse.
There are two forces of nature that are moving the industry in this direction. First, the largest players in the space are today funding dozens of “innovation experiments” focused on driving payments into the mobile realm, and more broadly expanding the reach of electronic payments. At the same time, access to new technologies and the availability of IP-enabled devices such as the smart phone and tablet reduced the barriers to entry for many an emerging venture to make a play for something new, innovative and game-changing. Hundreds of millions of dollars of venture money poured (and are pouring) into the sector to foster the “next” new thing in payments. In 2012 alone, more than $1 billion was invested in emerging payments firms by VCs. But as good (and well funded) as their great ideas might be, most of these ventures will need distribution and scale to ignite and access to the “incumbents” to make that happen in any sort of meaningful way. They’ll also need access to the people inside the organization who can “school” them on what it means to be in the payments business. Many of them have no clear idea of its complicated inner-workings.
Those two forces, Lerner believes, sets up exactly the right environment for the right model for innovation in large organizations – corporate venturing – something that takes the best of both worlds and devises a structure, a framework and a set of incentives for advancing strategic goals and generating good returns on those investments.
The Innovation Project 2013 interactive keynote session on The Architecture of Innovation in Payments will tackle this topic head on. Lerner and Diane Offereins, President of the Discover Network, will engage four C-suite innovators — all pioneers in designing and deploying innovation in payments — on a wide-ranging discussion of incentives, partnership strategy, innovation design, ignition obstacles and more. Offereins is credited with coming up with the idea to license the Discover network to other innovators to propel their innovation agenda four years ago. She will give Innovation Project 2013 delegates a peek inside the strategy that was used to develop and deploy this strategy internally, and use that to engage the panel on the impact of that strategy on innovation inside of the payments sector. Panel participants include:
- Chris Gardner, co-Founder and CEO of Paydiant, a cloud-based solution that enables banks and merchants to accept payments via the mobile phone. Gardner will share his thoughts on how he and Paydiant have aligned incentives for innovation with some of the biggest bank and merchant partners in the US.
- Mike Kennedy, Chairman of ClearXchange and EVP for innovation at Wells Fargo, will describe ClearXchange’s blueprint for getting the three biggest banks to the table around a new idea, and how that framework may change in order to take ClearXchange to the next level of innovation in mobile payments.
- Chitra Narasimhan, Managing Director at CitiVentures, will offer her insights about how to structure and incent innovation inside huge financial institutions and provide support to emerging ventures without overwhelming them in corporate bureaucracy.
- Mike Pasilla, CEO of Elavon, will describe how innovation works at Elavon and explain how he attracts and retains key partnerships while balancing the requirements of his bank parent company, and payments regulatory environment.
The Innovation Project 2013 is being held on March 20-21 at Harvard University. For information on how to register and for a look at the entire programming line up, please visit theinnovationproject2013.com.
About The Innovation Project
Over 2 days, more than 100 speakers and 500 senior members of the payments industry will change the way that the payments and its broader commerce ecosystem thinks, talks, delivers and ignites innovation. On March 20th and 21st the greatest minds in commerce and payments will assemble at Harvard University near Boston to kick the conversation about innovation up to an entirely different level at a program called The Innovation Project. Speakers and delegates are among the most senior executives and elite innovators from literally every established payments company worldwide, along with the CEOs/founders of the most innovative start-ups. One of its five modules includes pairing industry CEOs with external thought leaders such as Al Gore (former US VP), Steve Levitt (Freakonomics), Eric Reis (The Lean Start Up), Rosie Rios (US Treasurer), Russell Simmons (Rush Card), Raj Date (CFPB), and Josh Lerner (Architecture of Innovation) to challenge the conventional wisdom around what it will take to get merchants and consumers to adopt new ways to shop and pay. Warren Buffett is the program’s keynote. The Innovation Project also hosts the industry’s 2013 PYMNTS.com Innovator Awards, given to 15 of the industry’s top innovators over dinner, which this year will be emceed by B.J. Novak of The Office and will introduce delegates to 40 of the hottest “next generation” payments innovators. The ThinkAThon will challenge a small group of delegates to frame solutions to tough industry problems and compete in front of delegates and judges for the title of “Master Payments Guru 2013.”
PYMNTS.com is reinventing the way in which companies in payments share relevant information about the initiatives that shape the future of commerce and make news. This powerful B2B platform is the #1 site for the payments industry by traffic and the premier source of information about “what’s next” in payments. C-suite and VP level executives read it daily for these insights, making the PYMNTS.com audience the most valuable in the industry. It provides an interactive platform for companies to demonstrate thought It provides an interactive platform for companies to demonstrate thought leadership, popularize products and, most importantly, capture the mindshare of global decision-makers. It’s where the best minds and best content meet on the web.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 30, 2016 09:15 AM EDT Reads: 3,045
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
Sep. 30, 2016 09:15 AM EDT Reads: 3,026
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Sep. 30, 2016 08:45 AM EDT Reads: 131
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Sep. 30, 2016 08:45 AM EDT Reads: 4,473
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Sep. 30, 2016 08:15 AM EDT Reads: 556
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 30, 2016 08:15 AM EDT Reads: 1,704
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Sep. 30, 2016 08:00 AM EDT Reads: 4,220
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
Sep. 30, 2016 08:00 AM EDT Reads: 2,170
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Sep. 30, 2016 08:00 AM EDT Reads: 2,821
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Sep. 30, 2016 08:00 AM EDT Reads: 566
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Sep. 30, 2016 08:00 AM EDT Reads: 164
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
Sep. 30, 2016 07:30 AM EDT Reads: 196
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Sep. 30, 2016 07:15 AM EDT Reads: 3,274
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
Sep. 30, 2016 07:15 AM EDT Reads: 2,248
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Sep. 30, 2016 07:00 AM EDT Reads: 3,468
Digitization is driving a fundamental change in society that is transforming the way businesses work with their customers, their supply chains and their people. Digital transformation leverages DevOps best practices, such as Agile Parallel Development, Continuous Delivery and Agile Operations to capitalize on opportunities and create competitive differentiation in the application economy. However, information security has been notably absent from the DevOps movement. Speed doesn’t have to negat...
Sep. 30, 2016 07:00 AM EDT Reads: 2,342
Leading cloud-centric IT organizations are establishing core capabilities to improve productivity, control costs and provide a highly responsive end-user experience. Key steps along this journey include creating an end-user cloud services catalog, automating workflows and provisioning, and implementing IT showback and chargeback. In his session at 19th Cloud Expo, Mark Jamensky, executive vice president of Products at Embotics, will walk attendees through an in-depth case study of enterprise I...
Sep. 30, 2016 07:00 AM EDT Reads: 1,509
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Sep. 30, 2016 06:15 AM EDT Reads: 1,135
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 30, 2016 06:00 AM EDT Reads: 1,269
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
Sep. 30, 2016 06:00 AM EDT Reads: 2,743