Daniel Fasnacht

University of Zurich | UZH · Department of Banking and Finance - IBF

Based on qualitative research at one of the largest banks in the world, this publication is the first to discuss open innovation in the context of the financial services industry. Open innovation means gathering new ideas from sources beyond organizational boundaries. It occurs when solutions to address clients' needs are developed in collaboration...

Die Digitalisierung und Demokratisierung wird das Gesundheitssystem nachhaltig verändern. Smart Health nutzt Technologien wie IoT, AR/VR, KI, Cloud und Blockchain und zeigt, warum deren Integration entscheidend ist. Agile Strukturen und offene Zusammenarbeit bilden dabei die Basis für eine zukunftsfähige Gesundheitsversorgung. Die digitale Transfor...

Open and digital ecosystems will account for one-third of global trade by 2030. This book highlights how value creation transcends organizational boundaries, focusing on the consumer. Industry and technology convergence shapes customer experiences and drives digital transformation through AI, AR, IoT, Blockchain, Cloud, and Quantum Computing. The "...

What does the future of work in the ecosystem look like and how must leaders respond to it? Even if most fears and worries do not prove to be true over a long period of time, they can suddenly occur due to unforeseeable events, a combination of trends, or because of the effects of industry and technology convergence. As part of strategic foresight,...

What dynamic capabilities are needed to sucessfully contribute within an ecosystem? Successful companies have opened their boundaries and are leveraging external knowledge, resources, and skills. Macroeconomic developments and regulations, constantly changing customer requirements, and technological advancements lead to high dynamics and complexity...

How can an experience-oriented customer journey be designed in an open ecosystem? Business model innovations, as diverse as they are, should always serve a purpose—customer benefit. Digital innovations can contribute significantly to automation on the one hand, but also create new opportunities to delight customers. To create a service- and custome...

Purpose Dissolving industry boundaries, coupled with an increasing need for collaboration and mutual adaptation, necessitates the adoption of diverse innovation concepts and flexible management practices. While organizations are striving to be agile and receptive, prioritizing flexibility over meticulous planning, the strategies required to achieve...

While the crypto market has experienced volatility and skepticism, the underlying blockchain technology has continually evolved since the introduction of Bitcoin in 2009. Though Bitcoin has doubled since last year, the focus has shifted to non-fungible tokens (NFTs) and infrastructure protocols like Chainlink and Graph. See, Crypto Valley Journal,...

The convergence of industries and technologies will drive the experience-oriented customer journey, dissolving organizational and sector boundaries. Artificial intelligence, augmented reality, the Internet of Things, blockchain, cloud computing, and quantum computing are the key technologies for innovation. Termed as the golden triangle of open and...

What are the drivers of change, and how do these changes manifest in emerging trends? It is imperative to grasp the speed and magnitude of disruptive potential within trends and take proactive measures to address strategic shifts. Changes stem from market trends, technological advancements, and unforeseen events. Anticipating the latter is challeng...

Is Creative Destruction a bleak scenario or a chance for advancement? For many individuals, their lives have long been shaped by digital elements such as data, artificial intelligence, connectivity, platforms, and digital customer interactions. The process of digital transformation is well underway, yet there are still businesses that have not adju...

What does the future of work within the ecosystem imply, and how should managers react to it? While ambiguity and concerns may not materialize over extended periods, they can suddenly manifest due to unforeseen events, the convergence of multiple trends, or the impacts of industry and technological changes. As part of strategic foresight, managers...

Why is there a revival of interest in open innovation today? Originating primarily in the high-tech sector, the advent of digital transformation has significantly expanded the possibilities for collaborative open innovation. Many businesses now view open innovation as a means to enhance their ability to innovate more effectively, quickly, and cost-...

What are the essential dynamic capabilities required within an ecosystem? Successful organisations have dismantled their barriers and harnessed external knowledge, resources, and expertise. Macroeconomic shifts, evolving regulatory landscapes, constantly changing customer demands, and technological advancements contribute to high levels of dynamism...

Can digital platforms and ecosystems emerge as the dominant management approach in the upcoming decade? Advancements in information and communication technology are driving hyperconnectivity as a core principle for interaction and collaboration within open ecosystems. In today’s interconnected digital world, interdependencies form the foundation fo...

How does experiential, exponential, and sustainable growth function within the digital landscape? In the platform-driven economy, the pervasive hyperconnectivity yields network effects that facilitate rapid expansion for companies. It is unsurprising that the most prominent companies of the past decade have predominantly emerged from the technology...

How can an experience-oriented customer journey be crafted within an open ecosystem? Regardless of the diversity of business model innovations, their aim should always be to benefit the customer. On one hand, digital innovations have the potential to significantly enhance automation, but they also create fresh opportunities for delighting customers...

How does experience-based, exponential, and sustainable growth work in the digital paradigm? In the platform economy, hyperconnectivity leads to network effects that help companies achieve rapid growth. It is not surprising that the largest companies of the last decade have emerged from the technology and internet sector. With their scale, technica...

Why is Open Innovation experiencing a renaissance in the era of digital disruption? Originally stemming from the high-tech industry, digital transformation has expanded the possibilities for Open Innovation. Many companies see Open Innovation as a way to innovate better, faster, and more cost-effectively using external resources. Suppliers, custome...

Will digital platforms and ecosystems become the leading management approach of the next decade? Developments in information and communication technology promote hyperconnectivity as a fundamental principle for interaction and cooperation in an open ecosystem. The world has long been a digital network in which everything is interconnected. Interdep...

Is creative destruction a dystopia or an opportunity? The lives of most people are already dominated by digital aspects such as data, artificial intelligence, networking, platforms, and digital customer interactions. Digital transformation is a process that has long since begun, and yet there are still companies that have not adapted their business...

What factors drive change, and how are these changes reflected in evolving trends? It is crucial to capture the speed and extent of trends with disruptive potential and to proactively address strategic change. Changes are driven by a complex interplay of social, economic, technological, and environmental factors, each influencing and reinforcing on...

Our research found that predominant platform providers primarily emerge from central sectors like e-commerce, social media, and finance, expanding into other business domains. This progression leans on the tenets of open innovation and open data. The seamless flow of goods, services, information, and financial resources is pivotal for generating va...

Successful innovation is only possible if silos are broken down within the organisation, and internal knowledge is made available to all employees. In addition, relevant external sources must be integrated into the organization's innovation management processes to bring faster, cost-optimised and more sustainable solutions to the market for demandi...

The study shows that in addition to supply chain issues and trade relations with China, artificial intelligence (AI) is a high priority for Swiss companies. In the services sector, half of all executives surveyed recognise AI's potential, especially in education, law and advertising. In industry, on the other hand, automation is clearly in the lead...

Zusammenfassung Für den nächsten Konjunkturzyklus benötigen wir viel mehr Rechenkapazität und Computer mit Transistortechnologie kommen an ihre Grenzen. Es sind also neue Innovationen gefragt. Der Quantencomputer, der das binäre System aushebelt und nicht auf Mikroprozessoren aus Silizium basiert, könnte eine Lösung sein. Diese Technologie wird sic...

There are many blockchain studies, most of which emphasise generic benefits and focus on the financial sector. In addition, many myths are circulating, and there is general uncertainty because blockchain, DLT and Bitcoin are not yet well understood. The problem is to find industry-neutral yet relevant and concrete application possibilities and to p...

Nach Corona haben wir nun innerhalb kurzer Zeit die zweite Weltwirtschaftskrise. Ob nun Viren die Menschheit bedrohen oder militärische Konflikte, wie aktuell in der Ukraine, eines ist sicher: die Unsicherheit über die Entwicklung der Schweizer Wirtschaft ist gross. Es ist unumstritten, dass internationale Handelsbeziehungen einen politischen Nutze...

Increased uncertainty and customer needs that change radically within a few days lead to socioeconomic changes. Conventional management concepts no longer work in a business paradigm that calls for quick reactions and continuous business model innovations. Keeping the existing business running as efficiently as possible and at the same time explori...

Unpredictable events like Covid-19 lead to exceptional situations and make innovation projects and growth strategies obsolete. Customer needs can change radically within a few days and lead to socioeconomic, behavioral changes that are linked to trends like digital transformation and last for a long time. Conventional management concepts no longer...

One effect of the digital transformation is increasing collaboration and interaction with more and more services becoming interconnected. Our research found that global and robust ecosystems evolved from a core business, expanding the network and portfolio to other areas to create and capture value. Alibaba has made considerable efforts to unite e-...

Artificial intelligence, blockchain and robotics will continue to gain in importance. gain in importance. However, for the next growth cycle, we will need much more computing capacity. Computers with conventional transistor technology are reaching their limits. Künstliche Intelligenz, Blockchain und Robotik werden weiter an Bedeutung gewinnen. Für...

Banking 4.0 is characterised by digital innovations, fusing the physical, artificial, and biological worlds, affecting societies, industries, and companies with ever-higher speed and intensity. In the process to a new world order with new competitive forces and uncertainty, where goals are continually changing, and resources must be flexibly reorga...

The fourth industrial revolution has long since begun and is leading to an economic reorganization with significant changes for organizations, leadership, and society. With increasing global competition, established companies would be forced out of the market if they do not collaborate with agile innovators from outside their industries. This artic...

In the hardest times, there is always a way to get better. The Way Forward is the last chapter of a book that explores disruptive changes that shape industries, businesses, and societies. The 21 notes synthesise the findings of openness, flexibility, and customer-centricity in a digital world driven by platform business models and ecosystems. The r...

The digital transformation affects countries, companies, and industries in a dynamic way that has rarely been seen before. In times of uncertainty and rapid growth, we must not remain in traditional and linear ways of thinking. To increase competitiveness, we need to understand disruptive business models and respond flexibly to change. Sophisticate...

Open innovation is the prerequisite on that new technology could be built on. This has triggered a boom in the FinTech industry – not only in Silicon Valley but also in New York, London Switzerland and Asia. Around USD 50 billion have been invested in FinTech startups worldwide by business angels, venture capital and private equity firms since the...

Recent research and practical implementations in the area of open innovation and business ecosystems have found that ecosystem theory can play an important part in strategic management. The term Open Innovation Ecosystem stands for an ill-defined concept. In both theory and practice, the term is used in different combinations and with different mea...

- Explains the ecosystem as platform to innovate and co-create value in a constellation with multiple stakeholders. - Elaborates ecosystem dynamics based on 17 international case studies and use cases. - Enriches your understanding on how to nurture a business ecosystem for the financial services. Sharing information and knowledge, co-innovating...

As you learned from open innovation, partnerships accumulate knowledge and accelerate innovation and growth. This chapter builds upon research on value constellations and their role in open innovation as an iterative model with the ability to create an ecosystem. Innovation ecosystems that are strategically linked through firms to foster idea gener...

The transformation of the financial services implies new forms of innovation. There was a slow uptake of open innovation after we introduced the concept to financial services in 2009. Meanwhile banks recovered from the financial crisis, and with the simultaneous arrival of multiple disruptive trends, they took up innovation as a route to grow, diff...

Winning firms opened their boundaries and are harnessing external knowledge, resources, and capabilities. Changing client demands, regulations, and pervasive technological change are the core areas where today’s human resources must develop new management practices. We acknowledged the ability to deploy partnerships as this is key for the transform...

So far, we drew conclusions and formulated suggestions for the next decade based on the actual state of industry research, studies, and own experiences made in the financial services industry. Throughout the book, we followed a practical method to describe things as fact-based as possible so that findings are realizable. This chapter is different—b...

This chapter concludes the core of the book and presents actions required related to the discussed topics. It shall emphasize that it is not enough having understood the past to develop a vision and strategy for the future. Besides the comprehensive understanding of the disruptive trends, we need a conscious look at developments that influence the...

The financial world has been in transformation as seldom before. In this chapter we explore the key drivers for change and explain trends and its implications in the context of the banking, wealth, and asset management industry. While some developments are going to disrupt business models of commercial and corporate banking and change the way we ex...

While large and traditional firms usually represent financial and organizational stability, fintechs are agile and flexible when it comes to transformational changes as they are part of disruptive business models. The characteristics could not be more diverse; the more stability and agility mutually exclude each other. The success of incumbents as...

The changing businesses in the financial services are gaining momentum mainly due to rapid developments of digital trends. For firms to prosper, they need a profound understanding of growth and profitability. We analysed the largest banks in the world and found that they are much less profitable as they appear to be. Growing profitable and faster t...

Radical, incremental, and disruptive changes represent innovations and must be understood to develop a sustainable strategy. You will learn the differences and dynamics between various types of innovations. We illustrate them in a three-dimensional cube and explain how they interact with each other. Banks rose to the largest firms of the world, and...

Grow profitable and faster than investors expect to get further investments. Create an international strong brand value as this is instrumental for global expansion. Develop a profound knowledge about the characteristics and intricacies of service innovations to render a coherent solution to clients. Link innovation and growth and put it on the lea...

Winning firms must open up their boundaries and harnessing external knowledge, resources, and capabilities. Sustain organizational energy by repeatedly forming new competitive advantages based on various resource combinations. Create a new mindset and dynamic management practices based upon the development of ambidextrous thinking, intrapreneurial...

Capitalize the key trends by enabling the transition from closed innovation to an open model of innovation. Tap the full potential of open innovation in the financial services early on as it will increasingly thrive your businesses. Be open to good ideas, negotiate open innovation mechanisms, lower organizational boundaries, and put all into practi...

Establish profits from integration but also remain flexibility and agility. Unlock the full potential of the firm's resources and capabilities through social capital. Translate and embed knowledge, shared values, and objectives and trust among people into the corporate culture. Become a leader in providing an open innovation culture.

Foster collaborative innovation by integrating third-party products and solutions. Put the client in the center of the firm's value-adding processes to deliver holistic advice offerings. Enhance client satisfaction and profitability through a needs-based segmentation and analysis at the account level. Establish a flexible service-oriented architect...

How does an organization, operating in what has been historically a relatively stable environment such as banking, use IT to transform itself as that environment changes to one of hypercompetition? We argue that a key contribution of IT in this context is its potential role in the development of architectural ambidexterity which we define as the ca...

The business model of many banks -selling financial products, services and advising customers -has not changed significantly during the last twenty-five years. Nevertheless, the process by which ideas are identified, required knowledge is incorporated and utilised, innovations developed and distributed, has changed radically. The reasons for this t...