I recently picked up a copy of Brafman and Beckstrom’s 2006 quintessential work on organization theory. This interesting and quick read confronts the conundrum faced by many growing organizations: as growth in the market forces us to react to a changing landscape, is it better to decentralize and force more self-direction down stream, closer to the market, or continue to rely on a centralized ‘command and control’ approach to ensure consistency between planning and execution.
The rise of social networks, from Craig’s List to Zedge to LinkedIn, create an enormous opportunity to capture in real time the pulse, direction and implications of markets as well as facilitating reactions to new opportunities equally immediate. But, can social networks run a company, deliver online security or ensure the right level of patient care when and where needed? As Brafman and Beckstrom point out, “You certainly don’t want Johnson from seat 28J to decide that right about now is a good time to land” if you’re trying to run an airline.
I found their research entertaining and their core thesis well constructed. And, a good reminder to continue to push decision making to the lowest possible level, which also puts the burden of clear communication on leadership and management. But, I’m interested in your thoughts and perspective. Can ‘headless’ organizations thrive against stiff competition? Can centrally run organizations develop starfish-like qualities in certain divisions or departments and subsequently improve their timing and quality of reactions to market changes? Let me know…post your comments!
Monday, August 18, 2008
Tuesday, August 12, 2008
Get Real About Mobile Remittances and Banking
TowerGroup recently released a report titled “Disruptive Technology Spawns Market Revolution: The Ascent of Mobile Remittances into the Mainstream which said that "accelerating investments being made in ubiquitous mobile payment platforms will be a disruptive industry force”. As a result according to TowerGroup, “the emerging revolution occurring for sending and receiving remittances may well undercut existing fee structures and traffic volume of incumbent brick-and-mortar money transfer operators, which already appear to be under pressure in this current economic climate."
TowerGroup goes on to suggest the intersection of channel investments in mobile banking and payments by banks is essentially self-serving, and will create the scenario where the combination of mobility and remittances will most directly benefit the banks as they emphasize more growth efforts among unbanked customer segments. “The inevitable convergence of remittances and mobility offers new opportunities for banks to grow this market by making payments faster, more convenient, more secure, and more accessible to a greater number of senders and recipients,” said Virginia Garcia, co-author of the research and senior research director in the Cross-Industry practice.
On the sending side in developed markets, mobile remittances represent an avenue for banks to initiate relationships with unbanked consumers – who are heavy users of both remittance products and mobile phones – with an eye to fueling deposit inflows through later cross-sale of traditional banking products like checking accounts. On the receiving side, mobile remittances will spur evolution of the financial sector in developing countries and economies, so recipients can direct remittances to checking accounts, bill payments, and microfinance applications.
Garcia also recently issued another report examining the overall evolution of mobility in the financial services sector, titled “Transforming Customer Interaction: Mobile Banking Delivers Adoption as Wheels of the Market Align.” As with mobile remittances, mobile banking overall is fast emerging as an indispensable business asset for banks to retain customers and reach new segments (youth, ethnic, unbanked) to secure deposits.
TowerGroup estimates every month until the beginning of 2009, between 150 and 300 banks and credit unions in the United States will sign contracts for mobile banking solutions. Mobile banking will reach close to 6 million users by the end of 2008, and TowerGroup forecasts 42 million US active users of mobile banking by 2012.
“We believe the rise of next-generation mobile banking and payment solutions will forever change banks and payments companies,” said Garcia. “Mobility has the potential to enable timely, relevant, and actionable outreach that will ignite customer engagement unlike any other channel. Ultimately, TowerGroup expects mobile phones will do for financial services what Apple iPods did for music – foster a significant change in the way consumers access services and suppliers deliver them.”
The TowerGroup report on mobile remittances, titled “Disruptive Technology Spawns Market Revolution: The Ascent of Mobile Remittances into the Mainstream,” is co-authored by Charul Vyas, an analyst in the Emerging Technologies practice at TowerGroup.
What are your thoughts? Agree? Disagree? Post your thoughts!
TowerGroup goes on to suggest the intersection of channel investments in mobile banking and payments by banks is essentially self-serving, and will create the scenario where the combination of mobility and remittances will most directly benefit the banks as they emphasize more growth efforts among unbanked customer segments. “The inevitable convergence of remittances and mobility offers new opportunities for banks to grow this market by making payments faster, more convenient, more secure, and more accessible to a greater number of senders and recipients,” said Virginia Garcia, co-author of the research and senior research director in the Cross-Industry practice.
On the sending side in developed markets, mobile remittances represent an avenue for banks to initiate relationships with unbanked consumers – who are heavy users of both remittance products and mobile phones – with an eye to fueling deposit inflows through later cross-sale of traditional banking products like checking accounts. On the receiving side, mobile remittances will spur evolution of the financial sector in developing countries and economies, so recipients can direct remittances to checking accounts, bill payments, and microfinance applications.
Garcia also recently issued another report examining the overall evolution of mobility in the financial services sector, titled “Transforming Customer Interaction: Mobile Banking Delivers Adoption as Wheels of the Market Align.” As with mobile remittances, mobile banking overall is fast emerging as an indispensable business asset for banks to retain customers and reach new segments (youth, ethnic, unbanked) to secure deposits.
TowerGroup estimates every month until the beginning of 2009, between 150 and 300 banks and credit unions in the United States will sign contracts for mobile banking solutions. Mobile banking will reach close to 6 million users by the end of 2008, and TowerGroup forecasts 42 million US active users of mobile banking by 2012.
“We believe the rise of next-generation mobile banking and payment solutions will forever change banks and payments companies,” said Garcia. “Mobility has the potential to enable timely, relevant, and actionable outreach that will ignite customer engagement unlike any other channel. Ultimately, TowerGroup expects mobile phones will do for financial services what Apple iPods did for music – foster a significant change in the way consumers access services and suppliers deliver them.”
The TowerGroup report on mobile remittances, titled “Disruptive Technology Spawns Market Revolution: The Ascent of Mobile Remittances into the Mainstream,” is co-authored by Charul Vyas, an analyst in the Emerging Technologies practice at TowerGroup.
What are your thoughts? Agree? Disagree? Post your thoughts!
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