Creating and Fostering an Innovative Leasing and Finance Company

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Creating and Fostering an Innovative Leasing and Finance Company presentation at the ELFA 52nd Annual Convention …

Creating and Fostering an Innovative Leasing and Finance Company presentation at the ELFA 52nd Annual Convention

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  • Declaration Of Independents
  • Building on what Scott and John have talked about, I’d like to share some of our philosophies and activities around driving innovation at FAEF
  • I’d like to start by talking about the simple notion that companies don’t innovate, people do.In fact, in many ways, companies are generally organized in a way that is completely counter to encouraging innovation
  • Companies are built around structure, process, standardization and focused on executing most efficiently on a business planSame things, same way, faster/cheaperSo one of our objectives at FAEF is to focus on the people and build a culture of innovationWe believe that in order to effectively innovate we must foster that at an organizational level, not just a leadership level.
  • One of the ways I think you can gauge a company’s innovation potential is to look at how they view change. Individuals and companies can fall anywhere on this spectrum.A workforce which is resistant to change can obviously hold back innovation.Tolerate – put up with begrudgingly , Expect – expecting and ok, Embracing – wanting change, Creates – not waiting for it, making it.To unlock the full potential you want as many individuals on the far right as possibleInnovation is not just product, its process, strategy and vision. Kodak invented the digital camera – innovative. Organizationally resisted change. Apple has continuously reinvented itself
  • One of the strategic objectives at FAEF is this idea of Distributed InnovationLeverage the entire organization to drive advancementsNo longer can IT or just the SLT be responsible Local experimentation and collaboration
  • A few of the practices we have put in place to further the culture…Discuss each
  • As Scott and John mentioned, innovation can happen anywhere.Some specific examples of areas we have experienced innovation include…Describe each. Include:Onboarding process and appSIT – campaign call down app + 30 othersCloud – quick adoption. Max value in early adoption.Sun Power Infolease in 3 months in AWS
  • Lastly, I was recently fortunate enough to hear a talk by Malcolm Gladwell on the topic of disruptive innovators.As he spoke I reflected on First Americans philosophies on innovation and noted the similarities.He spoke of two important traits in innovators. Disagreeableness and Urgency Disagreeableness being the trait which allows someone to feel comfortable challenging the status quo Not requiring the agreement or support of their peer group. Managers should be supportive and protective of this.The need to be urgent. He told the famous Xerox PARC story and how Jobs had an urgency that Xerox did not. Kodak as well with the digital camera.At FAEF we try to act quickly on good ideas, as they may evolve into great ideas. We try many things and don’t wait for perfection. Early adopters gain the most value.
  • CommPartners Moderator
  • CommPartners Moderator

Transcript

  • 1. Creating and Fostering an Innovative Leasing and Finance Company 52nd Annual Convention Monday October 21, 2013 2:30 to 4:30 p.m. Orlando, FL
  • 2. Creating and Fostering an Innovative Leasing & Finance Company Moderator: Scott A. Thacker CEO Ivory Consulting Corporation Presenters: John C. Deane CEO The Alta Group Mark Tomaselli CIO First American Equipment Finance, A City National Bank Company Michael Donnary Senior Manager Capgemini Financial Services USA Inc. 2
  • 3. Creating and Fostering an Innovative Leasing & Finance Company Agenda • CREATING – Innovation – Innovation Outside Our Industry – Innovation in Leasing & Finance • FOSTERING – An Innovative Lessor – The 2013 Business Technology Performance Index (BTPI) – Applying Innovation Concepts to the BTPI Findings 3
  • 4. Creating and Fostering an Innovative Leasing & Finance Company Agenda • • • • • • Innovation Innovation Outside Our Industry Innovation in Leasing & Finance An Innovative Lessor The 2013 Business Technology Performance Index (BTPI) Applying Innovation Concepts to the BTPI Findings 4
  • 5. Creating and Fostering an Innovative Leasing & Finance Company Profitable innovation is a dynamic process of continually creating new business models, improving customer experience, and opening new markets — as well as launching new products. • Growth — solid organic growth — depends on innovation. • Yet the kind of innovation that drives sustainable growth is much broader than the disruptive "eureka" moments of technology legends. The University of Pennsylvania, Wharton School Executive Education. 5
  • 6. Creating and Fostering an Innovative Leasing & Finance Company What distinguishes organic Growth Leaders from Growth Laggards is Innovation Prowess The University of Pennsylvania, Wharton School, The Mack Institute for Innovation Management 6
  • 7. Creating and Fostering an Innovative Leasing & Finance Company Strategic Growth Seeking Discipline Leadership Sets the Tone Innovation Ability Culture and Leadership Adaptive Capabilities Configuration Develop and Launch Only Best Opportunities The University of Pennsylvania, Wharton School, The Mack Institute for Innovation Management 7
  • 8. Creating and Fostering an Innovative Leasing & Finance Company • An "Innovation Toolkit" (is used) to design a flexible innovation process that lets your company quickly adapt to, and profit from, changes in customers, competitors, or markets. • …use it with your team to fire up your innovation processes and improve your organization's “innovation DNA.” • “unearth the best ideas through innovation tournaments,” a part of your “Innovation Toolkit.” The University of Pennsylvania, Wharton School Executive Education 8
  • 9. Creating and Fostering an Innovative Leasing & Finance Company Access 10 minute YouTube: http://www.youtube.com/watch?v=eEYi8e6dNHQ Karl T. Ulrich is Vice Dean of Innovation and the CIBC Professor of Entrepreneurship and e-Commerce at the Wharton School of the University of Pennsylvania. 9
  • 10. Creating and Fostering an Innovative Leasing & Finance Company Operational innovation is notoriously difficult. What is the secret to success? 1. Process Focus ...the creation of an enterprise process model, which describes a business's operations in terms of a small number of value-creating end-to-end processes… 2. Process Owners A process owner is a senior executive empowered to make the changes needed to the process across the enterprise as a whole. • • Michael Hammer is president of Hammer and Company, a management education and research form, and the author of four books, including Reengineering the Corporation: A Manifesto for Business, with James Champy. He can be reached at MUOpinion@hbsp.harvard.edu Reprinted by permission from "Making Operational Innovation Work," Harvard Management Update, Vol. 10, No. 4, April 2005. See the current issue of Harvard Management Update. 10
  • 11. Creating and Fostering an Innovative Leasing & Finance Company 3. Full-time Design Team Part-time assignment to a process redesign team is an exercise in frustration. 4. Managerial Engagement The finest idea will not get implemented unless there is an organizational framework for shepherding it from concept to reality. 5. Building Buy-in (Exposure) to the new process as it was being developed, making them feel like participants rather than victims and helping them see both the flaws in the old ways of doing things and the power of the new. 6. Bias For Action Companies that strive to design the ultimate new way of doing things usually do nothing at all; they lose momentum while tinkering and revising, and the resulting solution is too grandiose to be implemented. 11
  • 12. Creating and Fostering an Innovative Leasing & Finance Company • Changing the way goals or actions are accomplished by using technology for the first time or modifying how technology is being used to make better decisions, enhance customer service, encourage company growth, increase efficiency, and/or reduce costs. Incremental Change Radical Change Disruptive Change 12
  • 13. Creating and Fostering an Innovative Leasing & Finance Company Agenda • • • • • • Innovation Innovation Outside Our Industry Innovation in Leasing & Finance An Innovative Lessor The 2013 Business Technology Performance Index (BTPI) Applying Innovation Concepts to the BTPI Findings 13
  • 14. Creating and Fostering an Innovative Leasing & Finance Company • San Francisco Citizens Initiative for Technology and Innovation, the San Francisco Municipal Transportation Agency and AT&T announced the SMARTmuni transit technology improvement pilot project for the City & County of San Francisco. • SMARTmuni (System Management Administered in Real Time) is an iPad-based software application designed to improve the day-to-day operations of the SFMTA. • Riders had better access to real-time transit information via apps than agency field staff who rely on clipboards, pencils, paper schedules, and an inadequate radio system to track and manage their fleet. 14
  • 15. Creating and Fostering an Innovative Leasing & Finance Company • SMARTmuni will give SFMTA line management staff new access to the NextBus data stream generating real-time information, system-wide communication, etc. • AT&T made an extremely generous donation to the project of 25 iPads with military-grade cases. • SMARTmuni team consists of a geographer, an architect, a transportation planner, a software developer, and an urban planner. 15
  • 16. Creating and Fostering an Innovative Leasing & Finance Company Original concept developed at GAFFTA 2011 "Summer of Smart" public policy hackathon. 16
  • 17. Creating and Fostering an Innovative Leasing & Finance Company Other Examples Audi Nest ZipCar Uber LEGO 17
  • 18. Creating and Fostering an Innovative Leasing & Finance Company 18
  • 19. Creating and Fostering an Innovative Leasing & Finance Company • Leaders need to “drive” operational and technical innovation. • But “How”? – – – – – Corporate Culture Strategy Development Process Tactical Action Development Process Ad Hoc Activities Innovation Tournaments 19
  • 20. Creating and Fostering an Innovative Leasing & Finance Company • An Innovation Tournament could include: Predictive Analytics Big Data The Internet of Everything Cloud Computing The Sharing Community Social Media Customer Centricity/Connectedness Risk Assessment - Social Trust Elasticity Pricing 20
  • 21. Creating and Fostering an Innovative Leasing & Finance Company Agenda • • • • • • Innovation Innovation Outside Our Industry Innovation in Leasing & Finance An Innovative Lessor The 2013 Business Technology Performance Index (BTPI) Applying Innovation Concepts to the BTPI Findings 21
  • 22. Creating and Fostering an Innovative Leasing & Finance Company WHEN CONSIDERING INNOVATION The marketplace / customers to address. The value proposition – “why do business with us?” Source information: Frank & Ernest Comic Strip - GoComics.com 22
  • 23. Creating and Fostering an Innovative Leasing & Finance Company WHEN CONSIDERING INNOVATION How we sell. How we make money. How we organize and operate including capital sources. Source information: www.dilbert.com 23
  • 24. Creating and Fostering an Innovative Leasing & Finance Company INNOVATE OR NOT Why not innovate? o Not necessary o Can’t o Don’t know how 24
  • 25. Creating and Fostering an Innovative Leasing & Finance Company INNOVATE OR NOT Innovate differently – certainly not necessary or desirable to innovate in the same way o Ownership  Bank owned  Captive  Independent 25
  • 26. Creating and Fostering an Innovative Leasing & Finance Company INNOVATE OR NOT o Market segment  Small ticket  Middle market  Large ticket 26
  • 27. Creating and Fostering an Innovative Leasing & Finance Company WHY INNOVATE? It’s fun Integral part of your value proposition Supports an exit strategy Make money or make more money Compete Survive 27
  • 28. Creating and Fostering an Innovative Leasing & Finance Company HOW INNOVATIVE IS THE EQUIPMENT LEASING/FINANCING INDUSTRY? A 5 out of 10, according to The Alta Group 2013 Industry Summit delegates Definition o The grading standard is against “best practice”, not on curve o Must be a game changer o Can happen in a transformational way – over time, or in a destructive way – right now 28
  • 29. Creating and Fostering an Innovative Leasing & Finance Company WHERE TO INNOVATIVE? 29
  • 30. Creating and Fostering an Innovative Leasing & Finance Company Agenda • • • • • • Innovation Innovation Outside Our Industry Innovation in Leasing & Finance An Innovative Lessor The 2013 Business Technology Performance Index (BTPI) Applying Innovation Concepts to the BTPI Findings 30
  • 31. Creating and Fostering an Innovative Leasing & Finance Company Mark Tomaselli Chief Information Officer First American Equipment Finance 31
  • 32. Building an Innovative Culture Companies don’t innovate, people do. 32
  • 33. Counter Innovation 33
  • 34. Change Drives Change Resists Change Tolerates Change Expects Change Embraces Change Creates Change 34
  • 35. Distributed Innovation 35
  • 36. FAEF Practices • Salesforce Improvement Team • Model for future teams • Peer to Peer Learning & Collaboration • Experimentation and empowerment • Innovation Committee (employee led) • Innovator of the quarter • Executive Support • Feedback and recognition 36
  • 37. Innovate Everywhere • Customer Experience • Customer portal • Service delivery model • Virtual meetings • Process • • • • E-Documentation HR Onboarding Month end close Salesforce Improvement • Infrastructure • Cloud adoption • Backup/DR • Security 37
  • 38. Be Disagreeable and Urgent 38
  • 39. Creating and Fostering an Innovative Leasing & Finance Company Agenda • • • • • • Innovation Innovation Outside Our Industry Innovation in Leasing & Finance An Innovative Lessor The 2013 Business Technology Performance Index (BTPI) Applying Innovation Concepts to the BTPI Findings 39
  • 40. Business Technology Performance Index The 2013 BTPI • 11th year for the report • Serves as the industry benchmark for IT and operations direction and spending • Represents a summary of survey responses and an analysis • Presents insights into the continuing evolution of technology in the Equipment Finance marketplace 40
  • 41. Business Technology Performance Index Innovation and the BTPI • We asked survey participants about tool sets and capabilities developed to address innovation in their equipment finance organizations • The level of “Innovation Maturity” remains relatively low in our industry • None of the respondents have a formal approach to researching innovative ideas that are happening in other markets or have a formal innovation structure or program 60% A more informal than formal approach to innovation 50% A senior leader within the organization that has innovation as one of their key goals for the year 40% A budget allocation for the development and implementation of innovations 30% Do not have any tool set or capability developed to create innovation 20% A team of employees that dedicates a budgeted amount of time to work on innovation Employee incentives for innovative ideas 10% Formal approach to researching innovative ideas that are happening in other markets 0% 1 41
  • 42. Creating and Fostering an Innovative Leasing & Finance Company Agenda • • • • • • Innovation Innovation Outside Our Industry Innovation in Leasing & Finance An Innovative Lessor The 2013 Business Technology Performance Index (BTPI) Applying Innovation Concepts to the BTPI Findings 42
  • 43. Digital Transformation and Innovation Other Technology Trends • ELFA CIO Roundtable – Technology Barriers – The Need for an Open Architecture – Alignment of Business and Technology • Top Technology Initiatives – Mobile Devices and Applications – Cloud Computing – Big Data and Analytics • Digital Transformation Research – Digital Maturity – Digital Intensity – Transformation Leadership Intensity 43
  • 44. Digital Transformation and Innovation Myth Reality Digital primarily matters only to technology or B2C companies Huge opportunities exist also in efficiency, productivity, and employee leverage Opportunities exist in all industries with no exceptions Let a thousand flowers bloom; bottom-up activity is the right way to change Digital transformation must be led from the top If we do enough digital initiatives, we will get there Transformation management intensity is more important for driving overall performance In our industry we can wait and see how digital develops There are digital leaders outperforming there Digital is primarily about the customer experience 44
  • 45. Creating and Fostering an Innovative Leasing & Finance Company Your Company 45
  • 46. Creating and Fostering an Innovative Leasing & Finance Company Thank you for Participating Scott A. Thacker Ivory Consulting Corporation Scott.thacker@ivorycc.com John C. Deane The Alta Group jdeane@thealtagroup.com Mark Tomaselli First American Equipment Finance, A City National Bank Company Mark.tomaselli@faef.com Michael Donnary Capgemini Financial Services USA Inc. Michael.donnary@capgemini.com 46