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

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.
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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
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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
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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.
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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
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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
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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
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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.
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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.
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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.
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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
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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
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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.
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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.
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16. Creating and Fostering an Innovative
Leasing & Finance Company
Original concept developed at GAFFTA 2011
"Summer of Smart" public policy hackathon.
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17. Creating and Fostering an Innovative
Leasing & Finance Company
Other Examples
Audi
Nest
ZipCar
Uber
LEGO
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18. Creating and Fostering an Innovative
Leasing & Finance Company
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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
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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
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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
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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
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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
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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
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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
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26. Creating and Fostering an Innovative Leasing &
Finance Company
INNOVATE OR NOT
o Market segment
 Small ticket
 Middle market
 Large ticket
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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
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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
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29. Creating and Fostering an Innovative Leasing &
Finance Company
WHERE TO INNOVATIVE?
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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
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32. Building an Innovative Culture
Companies don’t innovate, people do.
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33. Counter Innovation
33

34. Change Drives Change
Resists
Change
Tolerates
Change
Expects
Change
Embraces
Change
Creates
Change
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35. Distributed Innovation
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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
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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
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38. Be Disagreeable and Urgent
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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
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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
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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
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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
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45. Creating and Fostering an Innovative
Leasing & Finance Company
Your Company
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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
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