The banking industry occupies a really strategic place in the fiscal system of any economic system, since there will no economic growing unless there is equal channelling of nest eggs into investing. The Bankss are responsible for increasing the degree of nest eggs and investings, allowing of recognition and by and large act uponing the degree of supply of money in the economic system. They besides facilitate economic minutess between states thereby promoting and advancing trade, commercialism and industry. Banks and banking is a really old profession but the contemporary banking pattern as we know it today, started in the mediaeval yearss in Italian metropoliss of Florence, Venice and Genoa. In Nigeria, banking officially had a formal legislative backup in 1952 ( alford, 2010 ) and since so, there has been enormous growing in the industry, which is believed to hold been fuelled mostly by alterations in engineering and the Bankss ‘ ability to encompass these alterations successfully by implementing fresh thoughts in their command to command a big portion of the market. The development of ego service engineering and the outgrowth of a figure of new inventions are taking topographic point in the country of retail payments known as electronic money. ( Mohamad Al-Laham, 2009 ) . This development is act uponing the banking industry due to the increased usage of Automated Teller Machines taking to a new construct in the ATM, known as Intelligent Automated Teller Machine ( ATM ) .
The aim of this paper is to demo that the development of the intelligent Automated Teller Machine ( ATM ) in the banking industry with peculiar mention to the developing states is an invention. We besides aim to happen out the attack and execution processs adopted by the administration in pull offing the invention, analyze its ‘ benefits to the bank and eventually, placing the function played by the director in the invention. For the intent of this paper, we use the debut Intelligent ATM by Skye Bank PLC. , based in Nigeria as a instance survey.
Skye Bank PLC is a publically quoted company in Nigeria with over 300,000 stockholders and is technically one of the oldest Bankss in Nigeria and West Africa. It provides fiscal merchandises and services with a solid technological background that supports the service bringing procedure to clients. After the bank consolidation procedure in 2006, Skye bank developed into one of the top flight Bankss in Nigeria. Soon, it manages more than 250 subdivisions in the state with over 600 operational ATM machines within their concern premises and other good placed location across the state. In 2009, the Bank in its command to increase its growing and enlargement rate and its finding to supply first rate and radical services to its tremendous bulk of clients, Skye Bank Plc. , introduced an betterment in its electronic payment method, with the debut of a new hard currency sedimentation, cheque sedimentation and foreign exchange Automated Teller Machines ( ATMs ) , suitably tagged “ intelligent ATM, a effort unprecedented in the history of Nigerian banking industry.
Harmonizing to ( Babajide, 2009 ) , the history of ATMs traced back to the USA in the mid 1960s and progressed all over the universe, in the seventies. However, in Nigeria, the ATM was foremost used in 1989 by the so named Societe Generale Bank and since so, the ATMs appear to hold spread everyplace across Nigeria ( eShekels Limited, 2006 ) , farther posited that the banking industry no uncertainty has witnessed promotion in engineering merely like any other sector ; the usage of the machine-controlled Teller machine is one of these as it has positively affected banking operations wholly. With the acceptance of Self Service engineering by the Bankss, ATMs have continued to serve the public ; they make things easier for the clients and supply banking services that were antecedently non seen within that period. It therefore encourages a society that deals less with hard currency, thereby cut downing the hazard of loss of hard currency by manner of robbery or fire accidents fire which was prevalent in the yesteryear in the. At the beginning, some of the Bankss that had these Bankss in Nigeria constrained their clients to holding entree to the machines merely from their Bankss. Now, things are different as engineering has made it possible for users to do backdowns from ATMs of other Bankss.
Skye Bank, like any other house or concern operating in a dynamic and volatile environment ever looks for ways to do their growing a uninterrupted procedure. They believe they can make this by happening new and originative ways of prolonging or bettering their market portion. The procedure of turning these originative thoughts into facts is known as invention.
DEFINITIONS OF INNOVATION
( Schumpeter, 1934 ) , defined invention in different ways. Some of these definitions are:
1 ) The debut of a new good -that is one with which consumers are non yet familiar-or of a new quality of a good.
2 ) The debut of a new method of production, which need by no agencies be founded upon a find scientifically new, and can besides be in a new manner of managing a trade good commercially.
3 ) The gap of a new grade – that is a market into which the peculiar subdivision of industry of the state in inquiry has non antecedently entered, whether or non this market has existed before.
4 ) The conquering of a new beginning of supply of natural stuffs or half-manufactured goods, once more irrespective of whether this beginning already exists or whether it has first to be created.
Regis Cabral ( 1998, 2003 ) , farther defined Innovation as a new component introduced in the system which temporarily changes the minutess costs between at two or more participants, elements or nodes, in the system. Harmonizing to the ( Wikipedia The Free Encyclopedia ) , Innovation is a alteration in the method of making something, or the utile application of new innovations or finds. It may besides mention to major or cardinal alterations in thought, merchandises, procedures, or organisations. ( Sarkar, 2007 ) , in mentioning Michael Vance simplified invention as a creative activity of the new or re-arranging of the old in a new manner. He went farther by separating invention from innovation by citing Schumpeter ( 1934 ) , ( Ezinearticles, 2010 ) , named ingredients that are indispensable in specifying invention. It said that invention has to be something new, better than what existed, has to be economically feasible and eventually, must hold general credence.
Fortunately, nevertheless, a consistent understanding between the assorted definitions can be identified: invention is characteristically understood as the debut of something new and valuable, like presenting a different method or technique or changing the old method
“ Subscribers to the scholarly literature on invention typically distinguish between innovation, an thought made manifest, and invention, thoughts applied successfully in pattern ” .
In all branching of life, be it arts, scientific discipline, economic sciences or authorities policy, something new must be significantly different to be seen as an invention. ( Sarkar, 2007 ) , farther stated the difference or alteration must nevertheless be able to increase value, be it client value, or manufacturer value. The aim of invention is positive alteration, to do person or something better and finally prima to increased productiveness which is the cardinal beginning of increasing wealth in an economic system he concluded.
TYPES OF INNOVATION
Stanford centre for Professional development, identified four types of invention
Disruptive invention is one that introduces new markets types based on an alternating technological alteration or a riotous concern theoretical account. This theoretical account he said is non compatible with existing criterions. Application Innovation, which can besides be called solution invention, is one that develops new markets for merchandises that are already in being by happening utilizations for them and uniting them in an wholly different manner. Product Innovation enables a displacement in function. Either traveling up or down along the different degrees. Platform Innovation, simplifies complex and complicated engineerings.
( James ) , was able to foreground different categorizations of invention. Some of these definitions are:
; Business model invention: involves how to make concern in footings of understanding the significance of the endeavor.
; Marketing invention: involves the betterment and debut of new marketing techniques with sweetening in packaging or merchandise design, pricing or merchandise publicity.
; Organizational invention: involves the creative activity or version of concern constructions and norms.
; Procedure invention: involves the transporting out of an advanced or significantly improved production or system of bringing.
; Merchandise invention: involves the debut of a new or improved good or service
; Service invention: refers to serve merchandise invention which might be, compared to goods merchandise invention or procedure invention, comparatively less affecting technological progress but more synergistic and information-intensive ( Miles, 2004 in Fagerberg et al. ) , chiefly due to the features of services per Se.
; Supply concatenation invention: where inventions occur in the sourcing of input merchandises from providers and the bringing of end product merchandises to clients
; Significant invention: Introducing a different merchandise or service within the same line, such as the motion of a candle company into marketing the electric visible radiation bulb.
; Financial invention: aids the development of new fiscal services and merchandises.
The advantages of the intelligent ATMs can non be overemphasised. On May 5, 2009 Skye Bank publicised the debut of the intelligent hard currency sedimentation ATMs, associating the accomplishment as the first bank to present this fresh thought in the state. In foregrounding the advantages of the ATM, the bank in a statement signed by the Head of Corporate Affairs, Kayode Akinyemi, said that the ATMs allow clients can lodge hard currency and check into their histories whenever they want and acquire immediate response from the machine. Furthermore, a client that wants can pay in up to two 100 notes at a clip, without holding to set up them harmonizing to different denominations. Furthermore ( Babajide, 2009 ) said, that the ATMs allow clients to pay in checks, conclude their minutess in foreign currencies every bit good as withdraw hard currency, stating that with the invention, it had moved in front of the present ATM system where clients have to do hard currency sedimentation that might ensue in fraud in some states.
The intelligent ATM reduces long waiting lines in the banking hall as occupations hitherto done by bank staffs are now done automatically by the machine. ( Babajide, 2009 ) , besides added that Skye bank representative explained that the Intelligent cash-deposit ATMs, makes the backdown of money from the ATMs to treat irrelevant since everything is now automatically done. The ATMs scans both sides of the bank notes to corroborate its genuineness. The bank farther said that notes non recognised by the ATMs would be returned to the clients, thereby doing it impossible for bogus notes to be deposited.
Every invention has its reverses and restrictions, and they vary as the companies that introduce them vary. The Skye Bank intelligent cash-deposit ATMs is non an exclusion. Soon, one of its major restrictions is that it accepts merely one currency, the naira. However, The ATMs accept all the most normally used currency denominations in the state i.e. 100, 200, 500 and 1000 currency notes.
Soon, the intelligent ATMs merely accepts Skye Bank ‘s checks thereby restricting its ‘ use with accent on cheque payment to Skye bank clients merely.
REASONS FOR INNOVATING
The advanced accomplishment was initiated by the Bankss ‘ aspiration to convey expedience, safety and security to payment of hard currency and check to complement hard currency backdown through the ATMs. Group pull offing director/chief executive officer of the bank, Akinsola Akinfemiwa, said the invention is portion of the Bankss scheme in going one of the top five Bankss in the state within the following three old ages.
HOW IT WORKS
Harmonizing to ( Babajide, 2009 ) , Skye Bank officially launched their intelligent hard currency Deposit ATMs on May 26, for the usage of the general banking community. There were assorted talkers present at the startup including Mr Chuma Ezirim, Deputy General Manager, and e-channel group of the bank, The Group Managing Director and Chief Executive Officer, Mr Akinsola Akinfemiwa, amongst others. The guest talkers spoke on how the machines operate and some of its benefit to both the clients and the bank. On how the machines work, in citing Mr Chuma Ezirim, ( Babajide, 2009 ) said “ Depositing hard currency on the ATMs is really simple. A client merely slots in his or her card, after which he or she is presented with options on the screen. To lodge hard currency all a client has to make is choose the ‘cash sedimentation ‘ option on the screen, after which the ATM will open the hard currency credence slot ” . Chuma Ezirim besides explained that at that point in clip, some of the machines had already been positioned at Akin Adesola ( the bank ‘s Head Office ) and at other strategic locations in Lekki Peninsula, were they will be tested for approximately three months before they are mass produced and deployed. Furthermore Chuma Ezirim said that the invention had helped the bank break the elites in the industry, which had antecedently gone into the venture such as the Bank of America, J.P. Morgan and others.
Mr Akinsola Akinfemiwa, The Group Managing Director and Chief Executive Officer, gave more penetration on the running of the machines peculiarly as respects the payment of checks, he said that every bit shortly as the check is inserted into the machine, the forepart and rear is scanned and with positive verification, the client is instantly given a reception corroborating that the bank had accepted the check. On the foreign exchange facet, Ezirim explained that for now, merely five currencies including US Dollar, British Pounds and Euro will be accepted by the intelligent ATM. ( Babajide, 2009 )
ROLE OF MANAGER IN INNOVATION
( Hiatt, 2010 ) , defined alteration direction as:
“ The procedure, tools and techniques to pull off the people-side of concern alteration to accomplish the needed concern result and to recognize that concern alteration efficaciously within the societal substructure of the workplace. ”
The function of the directors of Skye in this invention is dual sided. They are obliged to both the staff and to their higher-ups. To the staff, the function of the director is supposed to be a carer of invention, i.e. he nurtures and supports the invention to its adulthood phase, and this they did by adequately developing the few staff that would be straight involved in the new procedure, combated the feeling of insecurity and opposition to alter from the staff through better communicating of the grounds and benefit of implementing the invention for both the staff and the effects of non taking action. Towards their higher-ups, the function of the director is that of a guardian of invention. Hence, the directors created the ideal internal environment necessary for invention to win and so protect it from external forces which would seek to forestall its growing. It is easier to protecting invention is easier if the way of the nurturing of invention is in alliance with corporate end.
SUMMARY AND CONCLUSION
Though invention of course adds value, negative or destructive inclinations may besides emanate from invention. Effect such as new developments erode or change old organizational norms and patterns. Administrations that are non able to set efficaciously may be overtaken by those that do. A major undertaking in invention is keeping equilibrium between procedure and merchandise inventions which involves developing efficiency and client support.
At this occasion, it has to be noted that the use of ATM in Nigeria is now being used for things and is earnestly progressing off from the regular norms of backdowns, account statements and purchase of cards, despite the longing for its multifunctional services like ( payment of measures and revenue enhancement related affairs, stock/shares dealing, buying tickets amongst others ) ; these recent services are yet to be added among the services to be provided.
However, the Bank has to do a batch of accommodations if they must last in this extremely competitory industry. Amongst all, entree to these machines should non be restricted to their Bankss entirely, in that clients from other bank can besides hold entree to this installation from wherever they are.
( n.d. ) . Retrieved August 20, 2010, from Wikipedia The Free Encyclopedia: hypertext transfer protocol: //en.wikipedia.org/wiki/Innovation
( 2008 ) . Retrieved August 16, 2010, from Business & A ; Companies: hypertext transfer protocol: //www.businesspme.com
alford, d. ( 2010 ) . Nigerian banking reform: recent action hereafter chance. working paper series, 1-2.
Babajide, K. ( 2009, 08 21 ) . Battle for clients loyalty displacements to Cash Deposit ATMs. Vanguard/allafrica planetary media.
Cabral, R. ( 1998 ) . Polishing The Cabral-Dahab Science Park Management. New York: Oxford University Press.
Jimmy conorss, L. ( 2009, September 21 ) . Battle for Customers Loyalty Shifts to Cash Deposit ATMs. Vanguard/All African Global Media.
eShekels Limited. ( 2006 ) . Automated Teller Machine ( ATM ) User Perception Study. Lagos.
Ezinearticles. ( 2010 ) . Innovation Definition- The Four Requirements For Innovation. Retrieved August 18, 2010, from Ezine Articles: www.ezinearticles.com
Hiatt, J. ( 2010 ) . The definition and History of Change Management. Change Management Training Centre.
Igbenedion, W. m. ( 2009 ) . The Adoption of Automatic Teller Machines in Nigeria: An Application of the Theory of Diffusion of Innovation. The Journal of Issues in informing Science and Information Technology.
James, C. ( n.d. ) . invention. Retrieved 08 18, 2010, from Tripatlas: hypertext transfer protocol: //tripatlas.com
Mohamad Al-Laham, H. A.-T. ( 2009 ) . Development of Electronic Money and Its Impact on the Central Bank Role and Monetary Policy. Issues in Informing Science and Information Technology.
Olatokun, W. M. ( 2009 ) . Analyzing Socio-Demographic Differences in Access and Use of ICTs in Nigeria Using the Capability Approach. The diary of Issues in informing Science and Information Technology.
Sarkar, S. ( 2007 ) . Invention Market Archetypes and result: An Integrated Framework. Portugal: Physica-verlag Herdelberg.
Schumpeter, J. ( 1934 ) . The Theory for Pull offing Development. Boston: Havard University Press.
White, W. S. ( 2009 ) . Technological Change, Financial Innovation, and Diffusion in Banking. working paper 2009-2010.