LAS VEGAS (12/10/15)--Disruption doesn’t necessarily have to come from a home-run innovation--it can come from taking a known, successful product or service and expanding its reach with singles and doubles.
Updating or improving an existing product will be accepted more readily than full-out innovation, Jeff Rendel told nearly 340 attendees at the closing session of the CUNA Supervisory Committee and Internal Audit Conference, which ended Wednesday in Las Vegas. That aggregate value can still drive a company forward.
Nearly 98% of the value of innovation goes to imitators, Rendel said. For example, Visa, MasterCard, Discover and American Express benefited from the first credit accounts created by Diners Club.
He shared products that took an existing idea--tortillas or electric blankets--and put a spin on them--stand-alone taco shells or blankets that both cool and warm the bed--to create extra value.
Look at your return on branches, Rendel advised supervisory committee members. Branches aren’t going away, but what is being done there that can be moved to mobile to drive down costs?
Remote deposit capture at Rendel’s credit union means he hasn’t set foot in a branch for three years, he shared, but having that service has deepened his relationship with his credit union.
“We can change how we do it, but not what we want to get done,” he said.
He cited Boeing’s long-held statements of value that have kept it among the top global companies for decades. They know their customers’ issues and business. They know them personally and can help them financially. They can execute their decisions.
And, like credit unions, they’re different.