The Top 5 Killers of Innovation? > What stands in your way? > TBD
Ready for SuperCommerce?
What are the Top 5 Killers of Innovation?
The answers might surprise you, but if you are open to change, REAL CHANGE, success is close!
Innovation, at it's very nature, is at odds with the 'Status Quo'. However, for incumbent companies and leaders to remain relevant and profitable, they must embrace innovation or risk becoming irrelevant or extinct.
Companies that stop innovating are simply giving competitors the edge and vanquishing future market share and revenues. Apple, Facebook, Google and startups, Square and LevelUp are such examples of innovation.
So how do innovative companies or people become a non-stop engine of invention? One thing is for sure, they focus on what the consumer wants and needs, and consistently tailor product development to this end. Being first and right is also key to winning, but the number one way to lead your industry is to not be afraid to fail. Fear freezes innovation!
Getting consumers to adopt a new product requires an incentive, especially when they are content with current one.
Savings is required to gain adoption by consumers and merchants alike. The marketing model here appears to be pretty straight forward, but the complexity of delivering savings to consumers and merchants is easier said than done. Mobile payments service providers need to offer a platform enabling merchants to easily deliver programs as follows: 1) First-time use offers, 2) Coupons, 3) Proximity offers, 4) Personalized offers using data analytics and 5) Loyalty program offering instant-savings or rewards. More
There has been so much hype around NFC mobile payments security that perhaps other threats have been ignored.
As technology speeds forward at 'Mach 5', we are fast approaching a new destination, the need to secure our smartphones from hackers. Very soon the same types of threats that exist for our PC's may run rampant on mobile. NFC is now in Android phones to power mobile payments, as well as someday soon serving as a key to lock and unlock our cars, computer, home and office. But for NFC to work it must be turned on to transmit it's signal. So it appears there is yet another problem to solve as to how best accomplish this. Continue
Real-time mobile authentication is the key to defeat fraud. Mobile authentication should be securing ALL cash and credit transactions and accounts.
Imagine a world where you controlled final authorizations over all of your financial transactions. Card, bill payment, EFT, credit file and IRS files, could all be under your control. A common setting, using the SOFT mobile app/web, might be to permit all card present transactions in your local area/zip code or use mobile GPS to confirm location, while requiring a text or mobile app/web confirmation for ecommerce, bill pay, EFT, credit file or IRS transactions.
A 2-year old company, out of Toronto, Canada, named SafePay is leading the charge towards securing transactions online using the mobile phone to authenticate transactions. GigaOM reports "While online merchants have been getting better at combating online fraud, it still cost them $3.4 billion last year, or about 1 percent of online revenues." Continue
It has always baffled me as to why retailers have not banded together to form their own mobile wallet network. The benefits are too many to not engage in doing so.
Today with the announcement of Merchant Customer Exchange (MCX), leading retailers Wal-Mart, Target, 7-11, Best Buy, CVS, Darden Restaurants and more, a much anticipated 'Retailer Mobile Wallet Network' focused on serving their customers has formed. MCX has not revealed the technology to be used to enable their mobile wallet, nor have they hinted as to when the service will be available. More
Daily Deals have had their 15-minutes, or quarters of fame, but must change their behavior to live on. The gravity of dire profit reports is requiring the industry to seriously reconsider their business model.
The media focus seems to have been mostly on enabling technology, security and savings, but retailers need a 'Clear-Cut Vision' on how Mobile Wallets will drive more traffic to their stores.
Social will be a key driver of traffic.
Social networks provide the reach retailers are looking for, and one of them is a Droid (please tell me you got that joke referencing Star Wars - Episode 1 + Google's phone). Yes, I know if I have to explain it, it only makes it worse. Welcome to my world of humor. My friends still love me, despite this.
Social has no borders or boundaries and all channels connect to it and serve it. Social networks provide, other media channels, the ability to interact with their customers. Social also has unparalleled depth of data on it's users. Of course each channel each has it's own unique data analytics.
I love the Starbucks Card Mobile App. It is fast, simple, convenient, fun and rewarding. However, 'Pay with Square' may have a tough time scaling as fast as other Mobile Wallets, like Google, MCX and ISIS, if they fail to simplify integration at POS.
The Pay with Square Video showcases a long overdue and brilliant customer service feature, making it much easier for hospitality employees to provide 5-Star service. I spent several years in the 80's and 90's working in guest services for luxury hotels and in the restaurant industry. Therefore, I understand very much about high-end customer service in the hospitality industry. Pay with Square is great, but it may prove difficult to get their software installed quickly unto POS systems. Continue
Time is money in business and retail and possibly even more so with Mobile Wallets. The wallets that will make the biggest impact will be the one's with the most transaction SPEED at Point of Sale and most easily and seamlessly integrated with POS.
During and since the London Olympics, a fast and furious slate of news about Mobile Wallets strolled across our screens. With all the pomp and positioning on par with the actual Olympics, I believe the 'Opening Ceremony for the Mobile Wallet Olympics' has officially taken place. But rather than just two weeks of competition, the 'Mobile Wallet Olympics' will play out over the next 2-4 years. Continue
Could PayPal's "Pay InStore App," now on trial in the UK, be a preview of the future of PayPal's mobile payments in America? It appears to work much like the famed, Starbucks Card Mobile App.
Daily Deals are indeed not dead, but must evolve and transform if they are to survive the mass adoption of the Mobile Wallet. Daily Deals as we know them will continue to exist, but they will need to reduce fees and discounts drastically to reach their 'Manifest Destiny.'
It has been said that "People don't care what you know unless they know how much you care." Today, this is perhaps more true than ever, in life, as well as in retail and business in general.
Cause marketing in retail has been around for sometime, but a new revolutionary model is soon to alter ALL retail commerce. Last week we saw LevelUp introduce a preview of 'Causes Engaged to Mobile Commerce.' This engagement will last 6-12 months and then the marriage will commence and cement the relationship between Causes and Commerce. Causes will be bound to Commerce for GOOD!
In the near future, it will be required that retailers show they care by donating a percent of every transaction to charity. LevelUp's sneak preview is a window to the future.
Retail commerce has never been at such an exciting time as now, nor has is been at such a technological crossroads. In the late 90's it was e-commerce, loyalty and gift cards that retailers and service providers were busy implementing. Now a mirror-image of the 90's is being re-enacted with the goal of enabling mobile to replace plastic and paper cards & coupons. With literally next to zero infrastructure in place to date, the solutions that can move fastest, in their move to mobile, will win the most market share.
How will mobile payments mesh best with Main Street?
It seems like it's gotten as complex and confusing as can be for retailers and even the mobile payment service providers themselves.
We'll provide a legend to map out all the pieces, as well as strategy and opinion.
At Tour's end the future of mobile commerce may be a bit more clear. Continue
Apple's decision to not include NFC in their iphone 5 has extended the runway for disruption via alternative technologies enabling Mobile Wallets and payments.
Every move that is made by PayPal or Apple affects the entire sphere of the mobile payments and Mobile Wallet world. The non-inclusion of NFC by Apple will be sure to alter and delay Google Wallet & ISIS.
All Things Digital just published an article by Carey Kolaja, Chief of Operations for Global Product & Experience at PayPal. This article is a relevant part of the public conversation about the Mobile or Digital Wallets. I will also propose a philosophy that must be adopted to solve problems and engage innovation in general and specifically in this space. Continue
Could Digital Watermarking replace QR or 2D barcodes? After seeing how Digimarc's technology works, my only question is why wouldn't it replace QR codes for some uses? It seems all that is needed is a branding and education campaign to make their tech dominant. Continue
The Western States Acquirers Conference delivered insights and direction for the payment industry to follow. Two of the general sessions were "Embracing Change; Staying Relevant in the Changing Payments
Landscape" and "Future of Acquiring . . . Will you Wipeout or Catch the Big One?" The wake-up call to reality is ringing and it is time to answer the call. If you can't beat the join them, might provide the answer. Continue
I think we've only seen the tip of the iceberg here. Discover was once the 'New kid on the block,' as was PayPal. Now both are firmly established as the number 4 and 5 players in payments. These two companies have incredibly complimentary strengths. Discover has much room to grow and PayPal has always been the innovator and wants to expand it's presence from the online to the physical world. Their current partnership is one that is mutually beneficial. PayPal rides the rails of Discover's acceptance in the real-world stores and Discover taps into PayPal's Digital Wallet, alternative payment methods and their as 110-million+ regular users and 9-million+ merchants.
IF they can figure out how to BESTLEVERAGE each other's strengths, they could both DOUBLE their market share in as fast as 2 YEARS!
Richard Crone of Crone Consulting speaking about the control of 'Big Data' via Mobile Wallets.
"We must get away from the idea of wanting to control the customer. Today the way you control the customer is to provide value. We just need to confirm ID at POS. Does your new product integrate with all systems and will it scale?"
Amir Wain, CEO of I2C, Inc.
Many profound insights were shared at the 5th MCPI Summit in Chicago on October 2-3.
Google, Facebook, Apple, PayPal, ISIS, LevelUp, MCX, Square, payment networks, banks, processors and dozens more are key players in the battle for transactional revenues and the future gateway to consumer commerce. We'll drill deep to get a core sample of the future of mobile commerce.
Today, rather than just telling you what I think may be the future of money, I want to start by first taking a look at innovation itself. Plato can be attributed with originating the concept that "Necessity is the Mother of Invention." Innovators like Steve Jobs and Bill Gates helped to shape the future of much of the technology we use today. If we can better understand how they knew what products and services were necessary or in demand, then perhaps we too can forge a clear path forward into the future of commerce. In looking back, we can peer forward and know that history often repeats itself.
So we will begin by observing what they saw and how they came to the conclusions they did. What Bill and Steve had was a knowledge base solid enough to understand the core problems.
If innovation is the future, understanding innovation is what matters the most.
Did the game just change? Is this the "Flux-Capacitor of Mobile Payments? You be the judge.
With the Mobile Wallet POS Switch it does not matter the mobile payment technology solution adopted. Be it NFC, QR code displayed, QR code scanned using mobile camera, code entered into mobile phone, payment terminal or by cashier into the cash register. This technology "Futureproofs" the Mobile Wallet by making it ubiquitous. No matter the method of connection to POS, this routing tech should serve as the cornerstone and blueprint for Mobile Wallet platforms.
By pairing the location of mobile device with the mobile payment technology adopted by each merchant location, a single, universal wallet is now possible. This tech makes the mobile wallet agnostic and seamless in the connection to POS.
Win or lose in the Super Bowl the 49ers are a great team, with great coaching and management. To echo back to a football classic with Tom Cruise, the 49ers made "All the Right Moves." Well at least enough right moves to be in the Super Bowl. So the question is, what did they do better that set them apart from the other 30 teams that did not make the Super Bowl?
Innovation requires faith, trust, vision, persistence by the entire team to win!
We'll examine how the 49ers have once again reached the Super Bowl and how the same decision making in business is what sets apart champions from the rest. Exclaimer, I've been a huge 49er fan since I first witnessed Joe Montana and Bill Walsh roll out the West Coast Offense in early 80's. Continue
Regulation is a check and balance to deter unjust acts against consumers or citizens. Corporations and banks do whatever they can to meet or exceed revenue and profit expectations, in any legal way they are able. This is capitalism and compliance departments are dedicated to walking this line. But are not banks supposed to be our TRUSTED agents of our financial services?
Industries embracing innovation & integrity may operate with less regulation.
The opportunity, the huge, gigantic opportunity and necessity exists for banks and big retailers to form a more perfect union with their customers. The way forward is thru providing services that enhance customer
relationships, over wielding the power to charge excessive fees. Banks that step up to take the higher road, will end up on top of the market. The rest will eventually have to follow, but suffer massive loss of customers and reputation. Banks that take the lead by embracing innovative ways to earn revenues, will prosper greatly. I'll start by identifying current legislation and fees, the problem with charging excessive fees and finish with sharing potential solutions.
From a Forbes article: "The Bureau is revisiting the 2008 FDIC study that found that 9 percent of checking account customers bear about 84 percent of overdraft fees. Evidence suggests that overdraft programs disproportionately impact low-income and young consumers." Continue
New Series for 2013
The 'Disruptive Innovation Meteor' named MOBILE has struck the world's of retail payments, banking and marketing. Firms wanting to survive, compete and win in this new environment must adapt by embracing disruptive innovation or risk becoming irrelevant or extinct. Read story
To unlock a refund, one simply logs into online/mobile bank site or visits their local bank branch. Unbanked users unlock refunds while checking their credit.
Has the estimated 5-billion dollar per year problem of tax refund fraud just been solved? You be the judge. The Tax Refund Vaultleverages the security and authentication infrastructure of banks and credit bureaus to protect all tax returns. By limiting access to refunds through banks and by using a tax return's unique fingerprint of data, a whole new method of protecting tax refunds, and possibly all sorts of accounts payable documents, has been invented. The solution works like a combination lock or safety deposit box key to safeguard all tax refunds. Citizens would be able to unlock their refunds in just seconds while conducting their normal banking activities, or for those without a bank account, while checking their annual credit report for free. Continue
To prosper in a rapidly changing ecosystem, Dysfunctional Dinosaurs must replace their ‘Devour to Gain Power’ philosophy with 'Adapt or Die'.
So what is a ‘Dysfunctional Dinosaur?’ Dysfunctional Dinosaurs are powerful people or organizations that are self-serving and destructive, sort of like Godzilla. They operate under a status quo philosophy, as if there are no real and looming threats. Yahoo and Blackberry are classic examples of former DD's (not saying current CEO's or companies are such) and we all suffer from a dysfunctional 2-party political system.
But what is a dinosaur to do? After all their brains are small and their size, appetite and strength are huge. Dinos were programmed to operate in a very simple way, to devour in order to grow larger in size and power. This works in a world where dinosaurs, or status quo leaders, can count on an environment that supports their massive size and power.
The best CEO's have a high level of Emotional and Social Intelligence, but if they lack Innovative Intelligence, the company may struggle to meet goals and nosedive fast.
Innovative Intelligence is a recently published book authored by Canadian consultants David Weiss and Claude Legrand. The Creative Leadership Forum in review of the book states that Innovative Intelligence is "the capability to gain insights into complex problems or opportunities, and discover new and unforeseen solutions that can be implemented." Is this not what produces great and successful companies, innovative products and leaders? Is this not what every company or organization seeking? continue
The refusal to evolve is simply ignoring reality. By not embracing innovation an organization is rejecting the change that gives it the best chance to survive and thrive.
Mobile and digital wallets will be much more disruptive than just digitizing paper and plastic cards and coupons; they will enable a whole new, more convenient, secure, rewarding and entertaining way to engage customers. They will marry marketing, advertising and payments into one seamless, simple and universal commerce app.
Let’s start by providing a definition of mobile wallet and a digital wallet, for they are not one and the same. The mobile wallet is the mobile interface a consumer uses to connect to their digital wallet(s) and enables a user to make payment, earn rewards or redeem coupons. A digital wallet, stores all the card and loyalty data and initializes and coordinates the completion of payment and loyalty transactions. continue
Mobile Wallet market share is up for grabs. Having the most innovative solutions, right focus and wallet interfaces will be the difference maker among strong competitors. In order to capture discover and retain 'innovation gold', one must develop a filter and process that detects and captures innovators and innovation. Without an effective filter the chances of capturing innovation is very low.
Image sources: Billy Beane - Concur.com, gold pan - goldpanningsite.com, gold detector – minelab.com.
A Moneyball methodology is needed to capture innovation and innovators. It is a process of identifying high value that is not currently seen, understood or embraced. It is a very philosophy that reaps the most for the least cost. It is what makes a world of difference in any organization's success and failure. In 2002, it is what enabled the Oakland A's to win the same number of games as the New York Yankees with 1/6 the payroll. The Boston Red Sox embraced Moneyball to win the World Series in 2004 and 2007.
But whom developed this methodology? Was it a Major League Baseball veteran? No it was Bill James, an industry outsider whose sideline hobby and passion for baseball turned into the Moneyball methodology that forever changed pro baseball. Continue
Any merchant accepting credit cards could instantly accept mobile payments without adding new hardware or software. This solution was invented around 'Apollo 13 parameters' of using exsiting hardware and software at POS to enable mobile payments.
This solution is also as secure as can be with card credentials stored safely in the cloud by a PCI-DSS service provider and never shared with merchant or on phone to complete transactions. With this solution, not even tokenized card credentials need to be shared with the merchant POS to complete mobile payment transactions. A tokenized version of a card number is stored on the phone and but is never shared with the merchant. This solution could operate with or without use of NFC or a QR code scan. Merchants of any size could integrate in seconds per terminal without adding new POS software or hardware.
If you have not taken notice yet of CARDFREE yet, you should. Though CARDFREE has yet to get out of the gate with a customer deployment, they certainly have assembled a team that is perhaps unmatched in the industry. The CARDFREE team is largely responsible for the most successful mobile payment apps in use today; Starbucks Card Mobile and the Dunkin Donuts app while the teams were at mFoundry, Corfire and Starbucks. The company has also received US $10 million in funding to help fuel it's launch.
Jon Squire, CEO of CARDFREE, was SVP of Wallet & Payments at mfoundry for three years before a two year reign as CMO of the mobile commerce solution CorFire. Chuck Davidson, who conceived, led and launched the Starbucks Card Mobile scheme, leads product for CARDFREE. Jeffrey Katz, who is an investor and chairman of the board at CARDFREE, is also known for founding Mercury Payments Systems. Other lead executives also hale from mFoundry, InComm and Visa. The Starbucks Card Mobile app and Dunkin Donuts apps alone combine for a vast majority of mobile transactions taking place in the US market today. Starbucks recently shared they are processing 4.5 million transactions per week! Continue
Can Clinkle iron out it's wrinkles? Will the Winklevoss's venture lead to a quick flip or flop?
Clinkle, a mobile payment/wallet startup launched in 2011, announced last week it secured a record 25 million of seed capital. Is Clinkle the next Square for mobile wallets? So how are these Stanford, smarty pants, students going to rock the world of mobile payments? They have a dog whistle and some solid graphic designers. Sorry I could not resist calling their very cool and genius invention a dog whistle, but it really is. Question is, did they test it out on dogs to see if the noise will drive them crazy? Will their inaudible message be heard round the world or even the U.S.? Hmm, maybe. Continue
I believe this is the future of retail coupon and offer advertising. The mobile/digital wallet shall be the container for all offers/coupons. Linking offers to mobile wallets or payment cards provides convenience that enables consumers a life of leisure in retaining and redeeming offers. I'm kind of surprised this model has yet to come to market.
To clarify, if one sees or hears a TV, Radio, web, email or print ad and it has a "tag line and/or logo linking an offer to Mobile/Digital Wallet or Card" in the ad, one will know the offer may automatically be found and redeemed through the wallet or card without need to print a coupon/offer from email/online, clip from print ad or use a code. Saving money just got more simple and convenient.
For consumers beholden to universal mobile/card linked offers, there is no going back. Like I've said before, there is no reverse gear in technology. You don't go from an iphone back to a feature phone or from email to snail mail. Continue
Digital gifting of $2 - $10 mobile gift cards and incentives appear to be a solid conversion and engagement bridge for consumers and mobile payments. Wrapp, Gyft and LevelUp are a few startups leading the way. Wrapp and Gyft have had huge success of pairing Social Media with sharing of mobile gift cards. Continue
You’ll soon be able to withdraw cash at ATMs using your phone. NFC and QR codes, used to power mobile payments, will also be used for mobile or cardless ATM transactions.
In July, MCX partnered with FIS Global and PULSE partnered with Paydiant.
The MCX partnership appears to be aimed at lowering processing costs for network retailers. FIS owns the NYCE network which enables PIN debit and ATM transactions nationwide. This partnership will mobilize transactions for NYCE at retailers such as Wal-Mart, Target, 7-11, Kohl’s and another 20+ top US retailers. Continue
PayPal has taken a big step in the right direction with its new mobile payment app. The previous design was straight out of 2003 (yes, I'm aware apps did not exist until 2008). However, for a mobile wallet to have a fighting chance it needs to provide more convenience and security than the physical wallet. Continue
In past two weeks we’ve seen a slew of announcements prior to the mobile payment/wallet industry’s upcoming ‘Super Bowl Event’, Money2020. No clear universal standard enabling ubiquitous mobile payments has emerged, quite to the contrary, with PayPal and Apple both announcing beacon services and quirky Clinkle making a 25-million dollar, sound NOT heard round the world, splash into mobile/digital payments. While the payments industry does not face the problems our nation now faces with reaching a consensus on the national debt, a budget and healthcare, it still has some pretty big problems to overcome to achieve scale. But alas, recent announcements by PayPal, Apple, Facebook, LevelUp, CARDFREE & Paydiant show real signs of life for advancing mobile payments.
Showcasing innovation in mobile and digital payments, loyalty and security is what Money2020 was all about. I was able to interview 20+ companies and discover a few rising stars offering game-changing innovation. I'll start with major announcements, highlight the top innovations and key conversations at the conference.
PayPal may be growing past it's awkward tween years into a full blown, scalable mobile payment solution. I last reported on PayPal the day after they updated their app and the day before they announced Beacon. In this article I suggested they implement a dynamic PIN and what do you know they listened! LOL! (I did however make this same suggestion over a year ago as well). The announcement of Payment Code paired with Dynamic PIN is the solution PayPal is going with. What will happen to showing your picture to pay, only time will tell. A year ago I said it had scalability issues.
Is it all just about having the loudest megaphone? This megaphone being media coverage, a budget for advertising or for growth capital or political swaying contributions. Can big and bold innovation succeed if not introduced by a power brand or resume and big money? And are the incumbents really willing to disrupt their status quo solely in serving the best interest of their customers or citizens? The consumer and citizen lose out because of this prejudice against innovation originated from outside incumbent leaders. If you've read my articles before, you know I'm not out to win a popularity contest (except on behalf of innovation and I already won such a contest at TechCrunch Disrupt in 2010), I'm here to highlight innovation and reveal the barriers against it. Continue