Innovation = Thinking Simplicity

 

Today on NDTV Profit, I happened to view a story about Shinsei Bank on their turnaround strategy, particularly focusing on an approach towards IT

which uses mostly open Internet, small, off-the-shelf components and a way of breaking complexity into small pieces in the shortest time with limited IT spending.

What struck me was their thinking style of "Simplicity"

1. While financial institutions in the world use huge, number crunching central servers, this bank implemented their entire IT system using affordable small servers running Microsoft Windows Enterprise Servers.

2. ATMs typically use dedicated VSAT based network directly linking to the Bank's network for ultra security. Shinsei Bank used commercial Internet connections, reducing the cost of special equipment and communication infrastructure. Just to be sure they also used two network  providers at each ATM for redundancy.

3. Eliminated paper based transactions by converting every piece of information to digital. They had digital scanners to scan paper documents and modified their business processes to incorporate these scanned digital information.

4. They also restructured communications infrastructure and implemented necessary changes to accommodate "unified messaging" for data, voice and fax.

5. They leveraged intellectual, skill and cost arbitration by using Indian off-shoring vendors like Polaris and core banking products from Indian vendors like i-Flex.

6. All these resulted in 24 x 7 Banking with ATMs, Internet banking, call centers  available round the clock and finally they passed on the benefits to their customers by way of offering free ATM transactions etc.

7. They are also offering their methodologies to other needy banks by way of consulting.

This April, 2008, in order to disseminate their innovative methods freely and to garner feedback and ultimately for any improvement, they formed alliance with Indian Institute of Technology Kanpur to design courseware that will accurately capture and relay their methods in the educational setting.

Looks like this entire story is on Harvard Business Review