PA business transformation expert, Stefan Knapp, has had a byline article published in Finans.dk discussing why the financial sector struggles to bring innovative products and initiatives to market.
According to PA’s recently published innovation report, regulation is one of the biggest barriers to innovation in the financial sector. Regulation has created a compliance environment that focuses on risk management, with an inability to think ‘out of the box’ – a prerequisite for innovation. Moreover, many companies in the financial sector lack ambition.
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Stefan says: “Many companies fail to define what innovation means to them and this could give rise to inappropriate prioritising. More than 63 per cent of the respondents in PA’s innovation report say they use innovation to describe many different things, and this shows many companies lack clarity in their definition of innovation.”
Adopting new ways of doing things can be very difficult for established companies in the financial sector. To get the most out of innovation, companies need to focus on developing an innovation strategy with a broad appeal to the entire organisation. Innovation must saturate the company culture and the overall mission of the company.
Stefan concludes: “Innovative companies think differently from the beginning and ensure disruption is part of their DNA. If companies want to succeed in the years to come, they need to employ pioneers and innovators.”
Stefan Knapp is a business transformation expert at PA Consulting Group