How to Innovate: Injecting Innovation into Planning

by Jamie Macgregor,  Michael Fitzgerald, April 16, 2015
Industry Trends
Global

Abstract

Like businesses everywhere, insurers are being challenged to deliver a constant stream of innovative products and services. Unfortunately, innovation in insurance has been inconsistent, undisciplined, and improperly governed. What can be done to change this?

The latest report from Celent looks at how leaders in innovation are using a common definition of innovation and discrete, transparent processes to build their programs. In most of these companies, innovation is a key consideration in strategic planning.

“Using a portfolio management model has helped our customers adjust their long-standing planning methods to consider innovation from a different perspective,” says senior analyst Mike Fitzgerald, who coauthored the report with Celent senior vice president Jamie Macgregor. “The Innovation Portfolio Model provides an analysis of the distribution of priority initiatives according to their strategic intent and the type of innovation being pursued. In multiple instances, this view yields new, valuable insights.”

 “We categorized more than 280 insurance projects and, no surprise, found a strong bias toward improvement projects. In a steady-state industry, this may be acceptable. However, given challenging business economics and the rapid pace of technological change that faces insurers, this result ought to be challenged hard by the leading companies,” says Macgregor.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

Innovation as a Repeatable Process

3

 

Definitions

3

 

Process

4

Using Portfolio Management in Planning and Governance

6

 

Model Overview

6

 

Completing the Model

6

Using the Portfolio Model

12

Conclusion

13

 

Key Research Questions

13

Leveraging Celent’s Expertise

14

 

Support for Financial Institutions

14

 

Support for Vendors

14

Related Celent Research

15

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