As obtained from Anderson, Poto?nik and Zhou (2014), innovation has increasingly become an inseparable determinant of organizational success, performance, and long-term survival. Generation and implementation of ideas has become a necessary part of businesses today, which is why organizations seek to encourage employees to take part in brainstorming sessions. However, innovation is a complex process that needs both ideas and their execution to make those productive for the case company. It is a complex process because few companies struggle to find employees who are encouraged towards generating creative ideas. On the other hand, many other companies fail in the execution stage for many reasons such as for having the insufficient resources.
Innovation has also become an essential part of banking corporations. It goes similar with the case study company, DBS, which is a renowned name in Asia. There are high competition between public and private banks for providing an easier and a less time consuming banking processes at banking premise, and a faster online banking transaction. It is, therefore, important for DBS to constantly evolve in innovation to retain the competitive advantage it has. It is very difficult under the circumstances to retain the dominance If not supported with timely and justified innovation. Innovation provides an opportunity to introduce something new that customers have never seen before. NETSPay is a kind of innovation that DBS has introduced. However, it is not necessary that every single innovation will be a success. Rather, it can fail as well no matter whether the innovation is a potential find (Boukamel and Emery 2017).
DBS is the largest by assets in the entire Southeast Asia and among the best in the whole Asia. It holds a dominant market positions in various kinds of banking services like banking, asset management, treasury and markets, securities brokerage, and equity and debt fund-raising in Hong Kong and Singapore.
This study is of significant importance because managing innovation and taking care of technology transfer involves critical processes, which require not less than a leadership approach from managers. These processes are critical because management competency, which is required to generate the ideas, is itself a challenge for a numerous issues like shortage of skilled employees. In addition, the implementation stage consists of many criticality such as inability to reduce the internal and external barriers.
Manikandan and Jayakodi (2017) opine that mobile wallet is a revolutionary find of banking sector that is encouraging not just to its vendors but to the banking customers as well. The authors highlight a few important findings regarding the increasingly growing usage of mobile wallet app. According to authors, mobile wallet will possibly replace the other mode of online payment in the nearing future. Notably, its users are very much satisfied with the experience. There are some factors, which contribute to the growing popularity of mobile-based banking transactions. These are brand loyalty, and convenience of shopping. However, it also has a few security issues, which is the ongoing concern with mobile wallet apps.
Sarhan et al. (2015) supports the security concerns as presented by Manikandan and Jayakodi (2017) by stating that it is extremely important to provide security to M-banking. Sarhan et al. (2015) says that M-banking has emerged as the more convenient, reliable, and effective way of doing the banking transactions. Security is an important concern because such mobile wallets operate on unsecured networks such as the internet. It is, therefore, threatening for the integrity, and confidentiality of users’ details. Moreover, an authentication between the customers’ mobile device and financial institutions’ servers thus becomes challenging. Sarhan et al. (2015) add more to security threats of mobile-based transactions by saying that customers’ information may be at risk from Android-based attacks.
Shin, Lee and Odom (2014) confirms a similar opinion about the mobile-banking security as governed by Sarhan et al. (2015) and Jayakodi (2017). Shin, Lee and Odom (2014) say that mobile security is the factor of highest concern and of strongest influence on customers and their mobile payment frequency. Shin, Lee and Odom (2014) further says that a growing usage of smartphones have encouraged customers more towards making mobile-based payments and banking transactions. This is a good move; however, must be managed to avoid any legal issue to this promising concept. Customers have concerns whether their transactions over several mobile wallet platforms are secured.
In the opinion of Lowry (2016), mobile wallet is an effective way to transfer money and do the other banking transactions. However, this is yet to surpass the traditional mode of banking as people are concerned with its legal and security aspects. On the other hand, mobile wallet vendors are in constant development process for technologies to counter the security threats of mobile banking. Tokenization is one of such technologies, which very few people are aware with, can help to reduce the security threats of mobile banking. While it is necessary to monitor the security aspects of mobile wallet, additional regulation to provide security may also affect the innovation and product development.
Wang, Hahn and Sutrave (2016) said that although mobile wallet has become popular in many regions, it also faces many challenges in the form of security threats and challenges. The security features of this app are discouraging for customers. The authors have identified some of the most common threats of a mobile app. These threats are SSL/TLS vulnerabilities, malware, and data breaches. It also has four security challenges in the form of data breach prevention, malware detection, multi-factor authentication, and fraud prevention and detection.
According to Ibtasam et al. (2017), learnability is a critical factor for a mass success of mobile wallet apps. Customers until and unless are uncertain of its benefits and ways to avoid security challenges of mobile wallet, they will not be able to adopt the process completely as an alternate to traditional banking. The authors further say that Worldwide, there are still two billion human beings that stay unbanked. The majority of those people live in resource-constrained environments. While worldwide banks have limited reach due to the excessive overhead expenses of physical expansion, there are opportunities in cellular penetration across the global countries. As stated, it has created opportunities to serve the unbanked sector of banking using mobile-based Digital Financial Services (DFS). However, just an access to mobile application to ensure the trial, and adoption is not alone sufficient.
As obtained from the article, the most influencing attitude that motivate people for using the mobile wallet is the ease of using this application (Aydin and Burnaz 2016). Aydin and Burnaz (2016) has identified this fact after they have conducted a research work on samples collected from Turkey. The author did identify that other developing countries like Turkey have minimal or no significant research works on the benefits and harms of using mobile wallet apps. With the help of this study, the authors could know that there is less motivation from others for using or doing banking transaction through mobiles. It means social influence to use mobile wallet apps is very minimal. It may be due to the security threats that the platform faces. Additionally, it was identified that perception of consumers can be influenced through effective marketing of mobile banking apps. The study has found that personal innovativeness has no direct impact on decision-making for mobile wallet apps. The study has rather found the ease of using mobile apps as the major motivating factor to its users. It is, therefore, can be recommended to mobile vendors to keep on working to improve the level of experience of using mobile wallet apps. The lack of an understanding of the superior benefits of using mobile apps is one of the reasons of consumers’ limited inclination towards the mobile wallet apps. The study further adds to its findings by saying that trial processes promote the usefulness of mobile apps. It means that marketing strategies along with technological advancements in the making and maintenance of mobile wallet apps can together influence the attitude for mobile wallet.
The section tries to understand the topic from the research methodologies. There are numerous methodologies that can be used to gather data and make their samples based on set criteria of samples. However, as indicated in the first part of this assignment, which is a power point presentation on “NETSPay”, primary research method will be followed here. The section further describes in sufficient detail about the methodologies being used to understand the topic.
Data can be either of a primary or secondary type. Secondary data has already been covered in the literature review section. Now, this section focusses on the primary data. Primary data can be collected with numerous methods of data collection such as individual interviews, observations, focus groups, and action research (Block and Keller 2015).
In this study, primary data will be used to collect the data. Structured interviews will be conducted with the management of NETSPay, hawker Vendors, and customers to collect the data. Structured interviews are good ways to have an in-detail discussion with participants. It gives a more detail and specific answers. On contrary to this, a survey does not give in-specific and in-detail information. Additionally, the topic has needed three perspectives such as the management at DBS, DBS employees, and DBS IB End-Users to understand whether mobile banking through mobile wallets is an effective approach. With survey, specified group of people can be approached; however, a detail information is hard to be attained. This is why interviews have been chosen to collect the data.
Sampling is of two types such as probability and non-probability sampling (Block and Keller 2015). For this task, probability sampling is being used. The selection of hawker vendors and customers in particular is suitable with this process of sampling. It is because the process of sampling is helpful in selecting a few out of a large population who can shed light on the research. In probability sampling, samples are picked on a random basis. In this kind of sampling, every participant has equal chances of getting selected. However, the selection is made on a random basis. This is the most commonly used sampling form in primary research.
There are numerous methods that can be used for the data collection. There are two kinds of data- primary and secondary. Primary data can be collected by doing interviews with concerned person or by doing the questionnaire survey. On the other hand, secondary data can be collected through various means such as by referring to already available data in the form of journal articles or referring to case studies (Van Hoorn 2014).
In this report, structured interviews are being selected as the method for data collection. Interviews are being conducted with managers, employees, and customers. The perspective of managers was important to understand what they feel regarding the NETSPay. They may have seen opportunities in the app. They may also have seen the known and unknown barriers to an effective implementation of the app. Their views will be of high values in relation to this study.
Employees can also help with some valuable experience. Some of them might have worked before in such apps. They will be able to share some interesting experience of theirs. The rest can also share their views of the app. This will help to know their level of acceptance of the app.
This chapter provides findings and analysis of the study in separated portions. It first discusses the four dimensions of innovation space for IB. After which, the study includes a SWOT analysis of IB innovation. Finally, the chapter gives a summarization of the entire chapter.
Like the four Ps of marketing, dimensions of innovation can also be categorized into four distinct types such as product, process, position, and paradigm. This section discusses the four Ps of innovation in context to DBS to identify and classify the type of innovation the NETSPay app is.
A product innovation can be defined to be a process, which is used to either modify the existing product or create a very new product (Aydin and Burnaz 2016). There can be many examples of a product innovation. These examples can be divided into two categories such as modification and new. Launching an upgraded version of a phone is an example of modification being brought through the product innovation. Offering a new car, which has never been offered before is an example of a new product being produced through the product innovation.
Process innovation is an improved production method driven by an implementation of latest techniques, software, and equipment. One of the greatest examples of a process innovation is the invention of world’s fast moving assembly line by Henry Ford. The process innovation being used here did not just simplify the assembly of vehicles but also speed up the process. The innovation has helped to shorten the time necessary to produce a vehicle. The change in time is very huge as on an average a single vehicle can be made in just 90 minutes, which initially used to consume 12 hours (Smith and Wong 2016).
Position can be called to be the perception of employees and customers, which they bear for a product or a service. No matter how innovative a product or a service is, employees can have the other views of the innovation depending on their acceptance to an innovation. In a similar way, customers can also have dissimilar thoughts of a product or an innovation (Ibtasam et al.2017). For example, employees can have a huge number of distinguished perceptions about a bakery product and so of the bakery company. Such perceptions can be influenced but not controlled. In a similar way, customers can also have a wide range of distinguished thoughts and perceptions of a bakery product. Their perceptions can be tried to be motivated but not changed. This is what position innovation is all about. It helps with strategies to influence the perception of customers and employees.
Paradigm innovation
Paradigm innovation helps to deploy radical changes in operations. For example, the automation of payment by deploying the credit card reader machine. Such machines are installed and deployed at various shops and stores to read the credit cards. This is what a paradigm innovation is all about. It helps to come up with new ideas, which are not limited to one domain of a business but can also be extended to a larger domains (Wang, Hahn and Sutrave 2016).
Innovation at DBS
Innovation at DBS is an introduction of NETSPay, which is a mobile wallet app. Such mobile wallet apps can be used to do banking transactions through mobile phones. This may not be a new step towards business improvement for many other companies; however, DBS never took such attempts before. From this perspective, this can be called a product innovation for DBS. Similarly, the process is not the new for others but for the DBS. Hence, this is also a process innovation for the company. With the mobile wallet app, the company has attempted to change perceptions of its employees and customers towards banking transaction. This is why this can also be called a position innovation as this can help the company to influence the perception of its employees and customers. Customer service is an essential part of banking services. This move will help DBS in improving its standard of customer service. This is also a paradigm innovation for DBS as with this new concept they will be deploying a very new way of doing banking transaction.
Hence, to be very specific the innovation being brought in the form of the mobile wallet app can be called a paradigm innovation for DBS. With this innovation, they are trying to impact their services and the level of experience to customers which wasn’t possible with the traditional banking. This should be a great offer to customers provided that DBS is able to provide security against potential threats. Mobile banking is prone to malware attacks and all.
Strengths: In a provision of cashless transaction, customers have decreasing encouragement for carrying the cash. In this scenario, it is a worth gift for them. Since, all transactions are recorded, this will help to deal with issues such as fraudulent and server failure. This provides an opportunity to develop a transparent business with customers, which is not less than building up a positive relationship with them. This will help to get rid of storage cost of physical currencies as now data can be stored in database. The national government will also have a good control on the service as they can track the business with the data available.
Weaknesses: Mobile banking is highly exposed to fraudulent activities. There is high chance of data hacking. It means data are not safe and hence, customers’ privacy is at danger. The other major challenge of mobile banking is the internet connection. The quality of internet service varies from one service provided to another. It means that transaction can be disturbed or even cancelled due to poor connection. It may create a bad impression on customers those who face this as they might be in some urgent situation and they may not be wanting such things to happen.
Opportunities: The opportunity is to utilise the app appropriately to attract more customers towards DBS and improve its level of service. Additionally, the company also has an opportunity to work towards improving the potential threats of using mobile banking. If this could happen DBS would be highly appreciated from its customers and others.
Threats: As discussed earlier, the major threat to the mobile wallet app is its inability to discourage the potential threats.
As stated above, the innovation in the form of a mobile wallet app is a paradigm innovation for DBS. It is because the company is deploying new thoughts to enhance its level of service and strengthen the relationship with them. Moreover, they will be able to enhance their brand loyalty provided that this platform is different to many in respect to security features.
DBS needs to have a team of IT experts who are regularly employed at checking the transactions and other movements through NETSPay. This will help to identify the potential threats. Moreover, they should take the help from software developers who will help them with their coding skills to counter the activities of hackers.
Limiting factors could be many such as absence of skilled IT experts, ineffective implementation plans, ineffective leadership in managers, inability to identify the needs to hire software developers when required, financial constraints, and lot more.
Automation in the bank specially to reduce the long queues in front of deposit and withdrawal counters. This can be done through installing computer integrated machines that are capable in reading the inputs and delivering the desired outputs. It is to be noted that bank customers are troubled by hectic processes in banks. They do not speak about but feel such pressure of being into banks. It is therefore important that DBS is in constant development process to deploy new innovations in banks to gain the competitive advantage. Innovation in banks will keep on appearing. It is therefore necessary that DBS is able to understand the urgency and adapt to the changing landscape of banking services (Lowry 2016).
Conclusion
Therefore, this can be said that DBS has adopted a right approach towards improving its service quality and deepening its relationship with customers. However, the company needs to borne that innovation can be profitable only if it is supplied with necessary resources. With regard to NETSPay, DBS must work towards improving its security features. Since mobile banking is performed on the internet, it is also prone to potential security threats such as malware attacks. Hence, the success will depend a lot on how DBS apply technologies and strategies to raise the security features of NETSPay.
References
Lowry, C., 2016. What’s in Your Mobile Wallet: An Analysis of Trends in Mobile Payments and Regulation. Fed. Comm. LJ, 68, p.353.
Wang, Y., Hahn, C. and Sutrave, K., 2016, February. Mobile payment security, threats, and challenges. In Mobile and Secure Services (MobiSecServ), 2016 Second International Conference on (pp. 1-5). IEEE.
Ibtasam, S., Mehmood, H., Razaq, L., Webster, J., Yu, S. and Anderson, R., 2017, November. An exploration of smartphone based mobile money applications in Pakistan. In Proceedings of the Ninth International Conference on Information and Communication Technologies and Development (p. 1). ACM.
Aydin, G. and Burnaz, S., 2016. Adoption of mobile payment systems: A study on mobile wallets. Journal of Business Economics and Finance, 5(1), pp.73-92.
Van Hoorn, J.L., Monighan-Nourot, P., Scales, B. and Alward, K.R., 2014. Play at the center of the curriculum. Pearson.
Smith, L.C. and Wong, M.A. eds., 2016. Reference and Information Services: An Introduction: An Introduction. ABC-CLIO.
Block, F.L. and Keller, M.R., 2015. State of innovation: the US government’s role in technology development. Routledge.
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