Sex shops and innovation
I had the pleasure of meeting the author of “Porn for bankers”. In his excellent book, about innovation and banking, he starts with the journey he makes from Central Station in Amsterdam to his office on the Singel. He noticed the disappearance of the sex shops over a period of time (I checked, there is one left). That got him thinking…….
Innovation
Porn (as is gaming and the toy industry) are the first to embrace innovation and are always ahead. And the question is what we can learn from it. Not only as banks but also as business people. It is one of the first books that graphically (no, not in that way) explains how the digital revolution and the extension of that into what he calls the Information Retail Revolution, is impacting on your (retail) business, using the banks as an example.
Style
Is written in a “Dear John”, Q and A, conversational style and I love it. The book is deemed compulsory reading for our Bookbuzz clients in the financial services industry. Is ideal for a good Bookbuzz session. The title alone guarantees that.
The book has touches of “New Normal” by Peter Hinssen. Anything that can become bits and bites will. It has touches of “Free” by Chris Anderson. If it can be free, it will.
Impact on business
The book is much better at illustrating the impact on business. It uses examples from the music industry, cars industry (showrooms are now retailing information, not cars), video rentals (40% drop in sales in Holland in 6 months), E-books, peer to peer (if that is of interest read “Starfish and the spider”) and than has a few chapters on question such as “If Apple was a bank”, and “If Ikea was a bank” and how they would organise banking. Maybe they will.
Caveman
Imagine seamless, trusted instant, well packaged, technology and platform driven. With a focus on a long-term relationship. He refers to bankers as “pinstriped caveman”, with no focus on LT but on the quick kill. Which is strange as banks should be able to develop a long-term loving relationship. Banking is all about managing the financial consequences of what Hans calls “Life events”. And banks have all the data to do such a thing.
Imagine “Life event apps” on an iTunes type platform, peer-to-peer, supported by well informed “trusted uncles” available at large retail outlets, geared to helping to buy instead of trying to sell.
Banking crisis
In between, it explains the banking crisis (caused by losing the direct connection with the client), gives a passionate plea to split in what he calls “multi-personality corporate cultures” into mono-culture organisations. In his view that is another reason for the banking crisis; it is not a good idea to mix investment bankers (super alpha, sharks) with retail bankers (fluffy bunnies, nice friendly people who want to help). Guaranteed blood bath.
Supermarkets
Hans also redefines the PMC (product market combination) into PPMMC (product phase market medium combination) and explains what to learn from supermarkets (what are the rotation figures in your outlet?).
Credible
What makes it credible is that the book ends with examples of how it has been done and he uses Jyske bank from Denmark and a very interesting saving scheme in South Africa (reserve a product you want, bring money to the store regularly until you have enough). Both sound like businesses I want to do business with. And that is the point.
