Innovation and Enterprise (BBVA) Essay Example | Topics and Well Written Essays - 1500 words

Innovation and Enterprise (BBVA) - Essay Example Innovation and Enterprise (BBVA) In most instances, innovation is commonly attributed to newness of a given aspect (Varis and Littunen, 2010, p. 128). However, they argue that there is no universally conclusive definition of the term since in the present world new knowledge is always coming up and not everything new can be classified as innovation. However, OEDC (2005, p. 101) described firm level innovation as planned change in an organization’s activities geared towards enhancing the organization performance. Innovation is differentiated based on main two aspects. The first looks at the object of change, such as product, market, process and organizational innovation (Oke, Burke and Myers, 2007, p. 735). Moreover, the type of innovation can be based on their how radical they are or their newness; that is based on the extent of change. According to Varis and Littunen (2010, p. 128), radical innovations usually bring up revolutionary changes and in some instances may trigger technological innovation. Basic ing redients of innovation are transferable and the most critical source of innovative ideas include the firm’s the employees, competitors and research (Beach, 2006, p. 1). Banco Bilbao Vizcaya Argentaria is a major retail bank in Spain that offers a wide range of financial services to both end-user clients and business customers. The bank was established in about one hundred and fifty years, and has grown significantly to open branches in USA, Mexico and South America. Currently, the bank is the largest in Mexico and is listed among the 25 major banks in US. Moreover, BBVA is among the few Western Banks operating successfully in Japan. By 2008, BBVA had 112, 000 employees serving more than 47 million countries in more than 30 countries (Ramis-Pujol and Droege, 2011, p.3). The bank has been able to balance its corporate principles while still focusing on customer service. In addition, BBVA views innovation as an engine for its future growth. Presently, BBBVA is one of the seven largest banks in the world measured in terms of market capitalization after joining this league in 2009. Types of Innovation by BBVA One of the types of innovation implemented by BBVA is product innovation when the bank came up with tu cuentas. Some years back, BBVA bank identified the great potential offered by internet technology to retail banking. The bank felt that its customers could appreciate more online banking services to better manage their financial activities and make them more open. The bank envisioned that customers could be more satisfied knowing what they spend their finances in, average money spent on different items in the budget and compare their spending trends with those of their peers. Moreover, the new product could help the customers develop strategies to optimize their spending habits. Tu cuentas was also developed to improve the user experience and increase its functionality and flexibility. Moreover, BBVA intended to allow its customers incorporate their banking information from other their accounts in other financial institutions. This last functionality was a unique service in retail banking. Given that the bank was financially and expertise constrained, it decided to