hardly disruptive. “I’m looking for a seamless booking workflow across all technology,” says one travel manager – radical innovation doesn’t really figure.
Then again, disruption is hard to spot. Who would have second-guessed the arrival of the smart phone or the apps industry? “Developments in the business travel sector are usually enhancements of solutions that are already in existence such as online booking, expense or reporting tools. Rarely does a supplier in the busi- ness travel industry do something totally different or ground-breaking,” says Chris Gamlin, head of mobile product at FCM Travel Solutions.
Another issue is that travel buyers are constrained on one hand by the cost-saving objectives of the corporation, and on the other by the needs of the business travel- ler. This balancing act means that change often occurs at a more granular, stepwise level. The travel management business is, in effect, more about renovation than deep-seated evolution. “For innovation to occur, travel managers need to see new tools as a way to both support travellers in their journeys and actively contribute
to the company’s goals and successes. This is not always easy,” says Concur senior marketing manager Roberto Scolaris. It’s also a challenge to understand what’s genuinely beneficial and what might be a costly gimmick. Insightful data can be important, when it helps prove the case for change in an inherently conservative industry. When you have to articulate the effectiveness of a new service to a myriad of stakeholders such as finance, HR and procurement, getting buy-in can be an issue. It certainly dulls any radical change. “Travel managers must be clear on what value innovation provides. If new technol- ogy improves process, creates efficiency or makes travellers more compliant and productive, there would be a case for adoption,” says Amex GBT vice-president John Lyons.
Beyond the conformist confines of the managed travel industry, the world is chang- ing rapidly, as are people’s behaviours – and this includes business travellers and their managers. Head to Chongqing or Chengdu and just watch people’s behaviour to see the
Innovation: a leader’s view
MARK LILLIE, GLOBAL CIO PROGRAMME LEADER AT DELOITTE on embracing the change we are seeing in industry.
• The idea of reverse mentoring, where an older manager is mentored by a young digital native to think outside the “this is how it’s always done box” – is a method that can work effectively, if used tactfully. The younger
generation are wired differently and question business norms.
• Legacy systems are the worst thing for unbridled innovation. It’s like doing DIY on an old, listed Victorian house. It’s costly and bound by regulations but there is some value in the old property. Some businesses need to start from scratch and ‘start a new-build’
if they’re to create something different.
• Thinking like a start-up, even though you may be a big company, can work well. Embracing innovation is a way of thinking. Some companies have internal hackathons where they brainstorm about how they can disrupt their own business and leapfrog their competitors.
future and how disruptive innovation can be. In some places in China you’re already seeing a cashless society. Digital payments now account for nearly two-thirds of all non- cash transactions, far outweighing those made by debit or credit card. The phone can now be used as a digital wallet by 450 million people in China. These types of services were accessed over one billion times last year. According to Forrester Research, China’s market for mobile payments topped US$5.5 trillion in 2016. This is roughly 50 times the size of the US market. One of the disruptive fintech companies that helped make this happen, Ant Financial, is valued at US$60 billion – around the same as Lloyds Bank, one of the UK’s biggest institutions. All this has happened in the past few years.
“These platforms have revolutionised the way that individuals conduct their finances on a daily basis,” says Zennon Kapron, director at market research firm Kapronasia. “People are using them for buying coffee in the morning, for ordering food online and for any number of things that have really transformed the way the average customer in China behaves.” And this widescale disruption will head to Britain at some point. Successful com- panies that have turned markets on their heads in one part of the world will look for other markets. They also have deep pockets and global ambitions. Ant Financial, with its Alipay platform, is expanding elsewhere in Asia, including India and Thailand. It won’t be long before it’s eyeing up Europe. “The biggest challenge is cost. In simple terms, the way the industry is changing comes down to who can afford to innovate and resource the changes that are required,” says Advantage’s McLeod.
One of the other main drivers is the speed of developments in the B2C markets across the globe. This is increasingly driving greater expectations in B2B markets, and this is set to continue unabated. “I think more of our needs and the ex- periences that we have in our day-to-day life are setting the expectations for how
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