100 GREAT BUSINESS IDEAS • 31This development did not occur in response to a market need: it emerged
because people within the banking business used their knowledge and
information. This included market-sensing abilities, understanding
of customers, information and forecasts about economic and social
trends, experience with similar product ideas (such as installment
loans), and knowledge about new developments in technology. A period
of major innovation within the fi nancial services industry followed,
including ATM machines and the growth of internet banking.
This type of innovation is markedly different from bottom-up
innovation:
- Senior management support was essential: they set up the unit,
helped to develop its features, and gave it the support needed to
take root and grow. - The senior management role was signifi cant early^ on in the
process, creating the right conditions and providing support and
momentum. - Information was at the heart of this top-down innovation.
Harnessing information and tacit knowledge is an essential part
of ensuring that the innovation process starts, continues, and
delivers success.
In practice
- Encourage senior management to become directly involved in
the innovation process. - Use the market-sensing abilities, knowledge, and experience of
team members to evaluate innovative ideas. - Create a “culture of innovation” within your organization by
giving employees a forum to discuss and evaluate their ideas,
and rewarding innovation.