The results of technological innovation

Executive Summary:

The purpose of writing this report was to examine the results of technological innovation in an organization. The major findings in this report indicate that technological innovation is necessary in every organization for the betterment of the same itself. Here in this report the study has been made on the Barclays Bank’s PINsentry device. Nevertheless the complete research is on this particular innovation of the bank. But there is some discussion about the technological innovations and its advantages and disadvantages in the former part of the report to clear the concept of technological innovation to every individual reader. Later as the report progresses towards the body there lies a short discussion about the role of manager in an organization towards the technological innovation. And just following to this there is a short description about banking industry, as it is the indirect base of the report and the topic. Later on we can see a discussion about the technological innovation of Barclays Bank i.e. the PINsentry device. Continuation to the PINsentry, there are the advantages and disadvantages of this new invention. And in the ending part of the report there is a spotlight show on the benefits which the Barclays Bank got due to the innovation. As problems are part of every innovation, so does the PINsentry device had, which are mentioned just followed to the benefits. As we proceed to the end of the report there lays the conclusion about the report. And in the end lays the bibliography about the sources of the complete report.

Introduction:

In this present fast and rapid changing world it is necessary for every organization to come up with innovation. Whether it is an innovation in organization culture or it is in the field of technology, it is necessary to keep innovating new ideas and technologies in order to survive. A technological innovation takes place when there is a need of a new product as per the requirement of the specified market. A technological innovation heralds the organization and helps it enhance efficiently.

What is technological innovation?

Any improvement in present technology or an invention of any new technology is called technological innovation. Technology is an instrument provided by science which enormously enhances it powers, as Albert Einstein did with his innovations. An innovation is a tool with which technology flourishes. Basically both innovation and technology are complementary to each other.

Advantages and disadvantages:

The world today has changed a lot with the aid of technology. Those things which were once done manually have not turn computerized. Almost everything is a click ahead. Every innovation has advantages as well as disadvantages. But on most of the cases advantages covers the part of disadvantages. Technological innovation also has some advantages and disadvantages too. Few of them are mentioned below:

Advantages:

Globalization: New technologies have bind world very close. The businesses have come under one system i.e. online to a greater extent. The linguistic and geographical boundaries have been removed by means of innovative technologies.

• Cost effectiveness: Since the business has become online the costs for running a business have been reduced to a large extent for many organizations. The machines have replaced human.
• Communication: With the advent of new technologies communication has become very easy, fast and cheap. E.g. -Mobile, internet etc.
• 24/7: Organizations have switched to online business with the help of new technologies, hence globally. This feature has increased the flexibility of business and has helped to grow and earn faster.
• Job opportunities: With the evolution of new technologies the scope of employment has also raised. Every new technology requires specialized skilled person to work on them.

Disadvantages:

• Scope of unemployment: With the innovation of new technologies, the business has become more streamlined which has led to job reduction of staff, downsizing of organizations and outsourcing in other countries. This has created unemployment at lower and middle level of many organizations.
• Dominant culture: Since the world has become a global village, the culture is being dominated by the strong one. For example,>>>>>>>>>>>>>>>.>
• Lack of security: As the technologies have made communication easier and faster but the level of security has been endangered too. Examples – email hacking,

Role of manager to support innovative technology:

Every industry comprises of many competitors. So it is the key responsibility of the manager to support the new technology in order to make it efficient and effective. Everything to support the innovation is to be done by the manager itself. The role of manager in support of innovation is as follows:

• Mentor: One of the key roles of the manager for the organization is to act as a mentor. As the word mentor itself suggests about the duty of manager. The manager has to adopt every individual idea about the new innovation and have to make sure that the organization achieves its complete goal through full potentials.
• Identifying strengths and weakness: Again the manager has to sort out the strengths and weakness of the new technology brought in an organization. By capitalizing on strengths the manager has to flourish the new technology and then put a check on weakness and eliminate it for making the innovation successful.
• Right timing: A right vision about when the innovation should be brought into the market to attain best results is of utmost importance. Because that only will decide the success or failure of new innovation.
• Reviewing concepts: Reviewing the concepts about the new technology and the figure out how it relates to the organization culture and working and how it can enhance the organizations efforts in the field of new technology.

The Banking Industry:

The Banking industry is one the most simple and reliable business which takes deposits from the customers at a lower rate of interests and lends them into the market at a higher rate of interest. The technology played a great role in the development of banking industry. With the help of new technologies the banking industry has transformed from being manual to automatic or computerized systems. Banks have now become global. Due to the innovation in technology banking services became available 24 hours every day for the whole year comprising of 365 days. The banking industry regularly comes up with new innovative technologies in order to make banking more easy, convenient, safe and faster. It is due to the help of new and improved technologies that the business is carried on globally with the help of banking industry. Earlier a person had to wait for days and months to make a transaction in other country. But now with these new technologies it is very simple and fast to make a transaction in any part of world in a fraction of second.

Let us cite an example of a particular bank, in order to explain the innovative technology in the banking industry. And what effects and changes it brought to the industry with its new innovative product or services. The bank which we are taking into example to explain the innovative technology and its effect on the organization is the Barclays Bank.

Barclays Bank:

It is a British financial service being operated worldwide in different countries. According to Forbes Global 2000, Barclays is the 25th largest company in the world. And it is one of the major banks in the UK. The bank has got two major clusters; Global retail banking and corporate and investment and wealth management. Though Barclays have many other constituents as well like Barclays private equity, Barclays Cards etc. Being such a big organization, it has to keep innovating new technologies to become unique in the market. Though there were many innovative systems being introduced by Barclays in recent years. But the most remarkable and latest is the PINsentry, a device/system which regulates online banking and keeps the interest of its customers secured and safe from frauds.

Barclays’s PINsentry:

PINsentry is a device developed by the Barclays Bank in order to prevent fraudulent in online banking. The device is a two factor authentication security system. The PINsentry device has a small LCD, 4 main buttons and a number pad. Barclays’s online banking has always been highly secured but the invention and introduction of PINsentry has added up an additional level of security. The use of this system is very easy and quick. The PINsentry is a type of card reader which generates codes for login which are based on the last four digits of your customers’ card. Every time when one has to login, it generates a new code. All a person needs to do is insert the card in the device and enter the secret pin number on its number pads to generate a new code. Basically the PINsentry i.e. the card reader reads the card details and generates a new code accordingly for login. It then generates an eight digit code for using online banking.

The PINsentry device needs to follow certain steps in order to get started and use it every time. All you have to do is get the Barclays card, PINsentry device and 12 digit online banking membership number. After having these entire things, a customer has to get registered online for PINsentry. And it is ready to use.

Advantages of PINsentry:

The PINsentry added a numerous numbers of advantages to the customers of Barclays. Some of them are mentioned as below:

• Easy and quick in use.
• Safe and secured online banking.
• Hassel free service.
• Additional level of security with no frauds.
• Privacy of customers.
• Smart technology in modern times.

Disadvantages of PINsentry:

Though every technology has advantages but it always have some set back too. They are as follows:

• Inconvenient to carry device everywhere.
• After every 90 seconds the device turns off.
• Problems in using overseas.
• Time consuming process.
• The card gets locked if incorrect pin is entered thrice.

Benifits to Barclays:

• A distinct recognition was achieved by Barclays in the industry with PINsentry.
• A combat in frauds made common people have more faith in Barclays.
• A growth in customer is achieved because of new technology.
• Increased market goodwill.
• Online usage growth.
• Wide acceptance by customers.

Problems faced by Barclays:

Irrespective of having so many benefits, Barclays faced many problems too with PINsentry.

• Problems with the device were found with many customers. It became difficult for them to access online banking.
• The device was not accepted in every country. So it was difficult when customer were overseas.
• The PINsentry implemented security on own banking, but it is the same like a normal card when used on other sites.
• Safety only for debit card users.
• Inconvenience faced by customers forced them to switch over to other banks.

Though the device faced complication and few problems but it is still in use and people find it worth and good are still accepting it. The Barclays also took certain measures to overcome these problems and on the major front the benefits of PINsentry cannot be overlooked.

Conclusion:

It is worth to mention that PINsentry by Barclays brought a new technology in banking industry. And it is worth appreciating. Everything coin has two sides, like wise every innovation has both advantages and disadvantages too. Though it can be said PINsentry had quite a few negative remarks, but the positive remarks are far important and appreciable which cannot be overlook. So personally I would say that the PINsentry device has a greater importance for online banking even if it adds an extra step to access but it is all for self security. And as far as we all know, everybody in this world could spare a few minutes for their own security rather than being unsecured even when you have the technology.

Bibliography:

1. C. J. Touhill, Gregory J. Touhill, Thomas A. O’Riordan (2008), Commercialization of innovative technology, John Wiley & Sons Inc., New Jersey, Ch. – .16, 17.
2. John Howell (2005), The management of innovation and technology, Sage Publications, Cornwall, Ch- 1.
3. http://www.eoearth.org/article/Technological_innovation
4. http://www.slideshare.net/jamilkhatib/technology-and-innovation-management-1186056