IBMInstituteforBusinessValue|BenchmarkInsights

Ecosystemsand

openinnovation

Co-createorstagnate

HowIBM

canhelp

Clientscanrealizethefullpotentialofopeninnovation

withIBM’sdeepindustryexpertiseanditstechnology

solutionsandcapabilities.IBMConsulting?isyour

innovationandbusinesstransformationpartnerto

co-createchangeandscaleimpactfromdigital

technologiesacrossyourbusiness.Formore

information,pleasevisit:

/consulting

.

HowAPQC

canhelp

Benchmarkingandopenstandardsarekeytoorganiza-

tionsmakingbetterdecisionssmarter,faster,andwith

greaterconfidence.Astheforemostauthorityonbench-

marking,bestpractices,processandperformance

improvement,andknowledgemanagement,APQCis

yourpartnerforeverythingfromoptimizingbusiness

capabilitiestoorganizationaltransformation.Formore

information,visit

.

Inthecurrentecosystem

economythatrunson

partnerships,theclearchoiceforgrowingone’sbusinessisopeninnovation.

Key

takeaways

Innovationpracticesofthepastwon’tworkinthefuture.

Openinnovationdrivesbetterbusinessoutcomesthantraditionalinnovation.Foreverydollarofinvestment,theproportionofdirectrevenueattributedtoopen

innovationisquadruplethatoftraditionalinnovation.

Opennessdrivesbetter

innovationoutcomes.

Organizationswithmatureopeninnovationcapabilitiesinnovateatgreaterspeed,scale,andeffectiveness.

Theyare3.3timesmorelikelytooutperformtheirpeers

onrevenuegrowthand2.7timesmorelikelytooutperformonprofitability.

Collaborationiscritical.

Openinnovationisanecosystemplaythatrequires

co-investmentandco-creation.Onaverage,organiza-tionsengagewitharoundfourecosystempartnersper$100millionininnovationspend.

Openinnovationdemands

opentechnology.

Thebeatingheartofopeninnovationispartnership

throughshareddataandinsights.Opentechnology—

hybridcloudandartificialintelligence,inparticular—iscritical.Yetlessthanthreein10organizationsleveragesharedandintegratedtechnologycapabilitiesfor

innovationwiththeirecosystempartners.

1

2

Tostandout,you

needtoinnovatethe

wayyou’reinnovating

Notallinnovationiscreatedequal.Inaworldofincreased

volatilityandcontinuouschange,there’sarealriskof

“innovationfatigue.”Wheneveryoneclaimstobeinnovating,

itcanbegintofeellikenooneisinnovating.

Innovationcanbecomecommoditized.Andwithnewideasandproducts

floodingthemarketplaceonadailybasis,it’snolongerenoughtoinnovate

more.Todifferentiateitself,yourorganizationneedstoinnovatebetter.

TheimpetusforchangeisespeciallyurgentinthewakeofgenerativeAI.

ExecutivesexpectgenerativeAItohavesignificantimpactacrossthe

entireinnovationlifecycle,fromideation,discovery,andevaluationto

executionandcommercialization—nottomentioncollaborationwith

partnersandmeasurementofoutcomes(seeFigure1).1Businessleaders

don’tjustviewgenerativeAIasanothertoolintheinnovationtoolbox;they

seeitasfundamentallyalteringthenatureofinnovationinthemodern

enterprise.

WithgenerativeAIpoisedtoupsettheinnovationlandscape,nowisan

idealtimefororganizationstore-evaluatetheirapproachtoinnovation.

Innovationhastraditionallybeenclosed—aninternalprocessthatuses

organizationalresourcestomaintainsecrecy,surprise,andcompetitive

advantage.Whetherit’sanautomanufacturerdevelopinganewvehicle,a

foodservicegiantpioneeringanewrecipe,orasoftwarecompanybuilding

agame-changingmobileapp,organizationshavegenerallyconceivedand

executedtheirbestideasin-houseunderstrictlockandkeyasawayto

protecttheirintellectualproperty.

Buttraditional“closed”innovationisnolongeradequate.Inthecurrent

ecosystemeconomythatrunsonpartnerships,theclearchoiceforgrowing

one’sbusinessisopeninnovation.

81%

Discovery

Commercialization

(63%

01

FIGURE1

Executivesexpectimprovedperformancefromgenerative

AIateverystepoftheinnovationlifecycle

Percentageofexecutivesexpecting

improvementfromgenerativeAI

80%

Ideation

61%

77%

Collaboration

withpartners

70%

Measuring

outcomes

74%

Evaluation

Execution

Source:GenerativeAIandopeninnovationpulsesurvey.

IBMInstituteforBusinessValue.2023.

3

3

4

Collaborationiskey

Basedoncollaborationandco-creation,open

innovationhasbecomeaubiquitousaspiration,

with84%ofexecutivessayingopeninnovationis

importantforthegrowthoftheirbusiness.2Their

instinctsareright:therateofrevenuegrowthfor

openinnovationleadersis59%higherthanthatforothercompanies,accordingtoresearchbytheIBMInstituteforBusinessValue(IBMIBV).3

Ourmostrecentresearchreinforcesthis.Inatypicallargeorganization,asmuchas10%ofrevenuestemsfromopeninnovation(seePerspective,“Therevenuegeneratedfromopeninnovationisfourtimesthatoftraditionalinnovation,”onpage10).Ifeffectively

adoptedacrossallFortune500companiesinthe

US,thatwouldtranslateinto$1.8trillionofrevenueperyear.4

Butalargeshareofthispotentialvalueremains

untapped.Manycompanieshaven’tyetconvertedtheopportunityintoreality.

Treatinnovationasateamsport—orlosetothosewhodo

Whyarecompaniesnotfullycapitalizingonthe

openinnovationopportunity?Inshort,becauseit’sdifficult.Fromcybersecurityconcernstotechno-

logicalbarrierstolackofagility,multiplechallengesstymieinnovationeffortswithecosystempartners.Aligninginternaldepartmentsandbreakingdown

functionalsilosforinnovationishardenough.

Addingexternalpartnerstothemixandchannelingtheircapabilitiestowardasharedobjectivecanbedownrightdaunting.5

GenerativeAIcouldhelpcompaniesovercomesomeofthechallengestheyface.Infact,amajorityof

organizationssaythey’recurrentlyevaluatingor

pilotinggenerativeAIasatoolforopeninnovation,

primarilybecauseofitsabilitytoimproveecosystemcollaboration.6

ButgenerativeAIalonecannotsowtheseedsofopeninnovation.Tomovefromaspirationtorealizationin

aneraofexponentialtechnology,organizationsmustdeterminewhatbusinessvaluetheycanderivefrominnovationwithecosystempartnersandwhat’s

requiredtofacilitateit.

Tothisend,theIBMIBVandAPQCjointlydevelopedamaturitymodelthatweusedtoanalyzewhether

maturityonkeyopeninnovationcapabilitiesresultsinamoreefficientinnovationprocessandimproved

businessoutcomes.WecallittheEcosystemEnabledInnovationMaturityModel(EEIMM),andwehave

testeditwithmorethan1,000companies.

Ourresultsarecompelling:organizationsthatare

morematurewithregardtoopeninnovationsignifi-

cantlyoutperformlessmatureorganizations.For

example,theyare3.3timesmorelikelytooutperformlessmatureorganizationsonrevenuegrowth,and2.7timesmorelikelytooutperformthemonprofitability.

Let’sdigintoourfindingsfurthertodeterminewhat

openinnovationmaturitylookslike,howitcandrivebusinessperformance,and—mostimportantly—whatittakestogetthere.

5

Perspective

Whatisopen

innovation?

TheoristHenryChesbroughfirstintroducedtheconceptofopeninnovationin

2003.Hispremisewassimple:whereasmostinnovationhistoricallywas

“closed”—doneexclusivelyinsideanorganizationbyitsownpeoplewithits

ownideasanditsownresources—mostinnovationgoingforwardwillbe

“open”:donewithecosystempartnersinawaythatmarriesexternalwith

internalcapabilities.7

“Inaworldofabundantknowledge,notallsmartpeopleworkforyou,”

Chesbroughoncewrote.“Companiesmustbecomenimbleat…accessingand

exploitingoutsideknowledgewhileliberatingtheirowninternalexpertisefor

others’use.”8

Organizationsthatareclingingtotraditionalnotionsofinnovationmust

transformtheiroperatingmodelfromonethatsupportslinearprocessesand

controltoonethatpromotestheopenexchangeofinformation,ideas,and

abilitiesacrossindividuals,organizations,andevenindustries.

6

7

Organizationswithmatureopeninnovation

capabilitiesperformbetterandaremorelikely

toattributetheirperformancetotheircapacity

foropeninnovation.

Unlockbetterbusiness

outcomeswithanopen

innovationoperatingmodel

Openinnovationimpactsnotonlytheinnovationvaluechain,butalso

thewiderenterprise.9Organizationsthatembraceitasabusiness

strategymustthereforerecognizethebroaderimplicationsfortheir

operatingmodel.

Steponeisunderstandingwhatcapabilitiesaremostcriticalforsuccess,including

howtobuildthem,howtointegratethemforbetterbusinessperformance,how

technologycanenablethem,andwhatinvestmentsmightberequiredtoachieve

them.

Toascertainwhatcapabilitiesareneededforopeninnovation,webuiltonour

extensiveexistingresearchanddecadesofconsultingexperiencetoidentifyfour

componentsthatconstituteasuccessfulopeninnovationoperatingmodel.

Todeterminehowoperatingmodelcapabilitiesinteractinwaysthatdrivebetter

innovationandbusinessperformance,weaskedexecutivesabouttheircurrentopen

innovationpracticesandcapabilities.Wethenusedamaturityassessmentframework

withfivelevelstoassessorganizations’maturityacrosseachofthefourcomponents

ofopeninnovationoperatingmodelcapabilities.Finally,wecollecteddataonkey

innovationandbusinessperformancemetricstorelatematuritytooutcomes(see

“TheEcosystemEnabledInnovationMaturityModel”onpage8).

Organizationsthataremorematureacrossthefourcomponentssignificantly

outperformthosewhoarelessmature.Theyinnovateatgreaterspeed,scale,and

effectiveness,andcanconvertbetterinnovationperformanceintosuperiorbusiness

performance.

8

TheEcosystemEnabled

InnovationMaturityModel:

Achievingincreasedinnovationinan

ecosystems-basedeconomy

Openinnovationisnowanessentialdriverofgrowth—andecosystemsarekey

tosuccess.TheEcosystemEnabledInnovationMaturityModel(EEIMM)is

anopportunitytoconductamaturityassessmentofyourorganizationand

benchmarkyourresultswithindustrypeers.Theassessmentevaluatesthe

capabilitiesorganizationshaveinplacetoenablecollaborativevaluecreation

fromstrategic,cultural,operational,andtechnologicalperspectives.

Basedonextensiveresearchspanningthepastdecade,theEEIMMincludescapabilities

infourdomainsthatfocusonthekeystosuccessfulopeninnovation:strategyand

culture,ecosystemcapability,internalcapacity,andtechnologyenablement(see

Figure2).

FIGURE2

Theopeninnovationoperatingmodelhasfour

components

Strategy

&culture

Clarityonopeninnovationstrategy,itsalignmentto

businessstrategy,andthefosteringofanopen

innovationculture

Ecosystem

Activeengagementwithecosystemsandtheextensionofinnovationandbusinessprocessesoutwardsto

capability

encompasspartners

Internal

Internalcapacitytoundertake,participatein,andabsorb

capacity

innovationforbusinessvalue

Technology

Opentechnologycapabilitiesforaccelerateddiscovery,co-creation,andco-executionofinnovationactivities

enablement

withpartners,includinghybridcloudandAI

9

TheEcosystemEnabledInnovation

MaturityModel(con’t)

Eachdomainincludesfourtoeightquestionsonspecific

capabilitiesandpracticesacrossfivelevelsofmaturity(see

Figure3).Organizationsselecttheoptionthatmostclosely

matchestheirpractices.

FIGURE3

Organizations’openinnovationcapabilities

aremeasurableonafive-pointmaturityscale

Optimized5

Breakingnewgroundandadvancingopen

innovationwithinindustry

Managed4

Openinnovationistunedandusedtofurther

increaseorganizationalperformance

Defined3

Openinnovationisbeingintegrated

acrosstheorganization

Repeatable2

Implementingselectopen

innovationprojects

ps1

towardopeninnovation

10

Perspective

Therevenuegeneratedfrom

openinnovationisfourtimes

thatoftraditionalinnovation.

Ifyou’restillnotconvincedofopeninnovation’smerits,consideritsimpact

onrevenuegeneration.Onaverage,surveyedorganizationsdedicate4%of

theirtotalannualrevenuetoinnovation.Ofthat,theyallocate12%toopen

innovation.Thesameorganizationsattribute30%oftheirrevenueto

innovation—20%totraditionalandothertypesofinnovationand10%to

openinnovation.

4%

oftotalannualrevenue

isdedicatedtoinnovation

Only

12%

ofwhichisallocated

toopeninnovation

11

Perspective(con’t)

Foranorganizationthatmakes$10billioninannualrevenue,thisequatestoatotalinvestmentof$400millionininnovation,andaninvestmentof$48

millioninopeninnovationspecifically.Overall,theorganizationrealizesareturnof$3billiononits

innovationinvestment.Ofthatrevenue,$2billion

stemsfrominvestmentsintraditionalandothertypesofinnovationand$1billionfrominvestmentsinopeninnovation.Thisequatestoarevenueattribution-

investmentratioof21foropeninnovationcomparedto5.7fortraditionalandothertypesofinnovation.

Inotherwords:Forevery$1anorganizationinvests

ininnovation,therevenueitcanattributetoopen

innovationisfourtimesgreaterthantherevenueit

canattributetotraditionalandothertypesof

innovation.

$10B

Annualrevenue

Traditonalandothertypesofinnovation

Open

innovation

Totalinvestment

Newrevenueattributed

Attribution-investment

ratioequivalent

Generatedrevenue

$400M

$2B

5.7

1x

$48M

$1B

21

4x

12

13

2.8x

.

2x

Realizingvaluefromtraditionalinnovation

1.7x

Revenuefromnewproductsandservices

9x

1

Engagementwithbusinessecosystems

1.7x

Morematureorganizationsare3.3timesmorelikelytooutperformlessmatureorganizationsonrevenuegrowth,and2.7timesmorelikelytooutperformthemonprofitability.Wealsofoundthatmoremature

organizationsachieveacumulativefive-yearrevenuegrowthratethat’s37%higher.Inaddition,more

matureorganizationsachieveaverageoperating

marginsthatare7%highercomparedtothoseoflessmatureorganizations;aresignificantlymorelikelytoreportgainsinrevenueandprofitabilityfrom

innovationthroughnewproductsandservices;andaremorelikelytorealizevaluefrombothtraditionalandopeninnovationefforts(seeFigure4).

Crucially,themostmatureorganizationsaremore

likelythanthelessmatureorganizationstoattributepositivebusinessperformancetoopeninnovationinareassuchas:revenue(98%morelikely),profitability(76%morelikely),numberofpatentsfiled(41%morelikely),R&Dproductivity(31%morelikely),timeto

marketfornewproductsandservices(72%morelikely),andnumberofnewproductsandserviceslaunched(76%morelikely).

Simplyput:notonlydoorganizationswithmature

openinnovationcapabilitiesperformbetter,buttheyalsoaremorelikelytoattributetheirperformancetotheircapacityforopeninnovation.Theyhavecrackedthecodeforhowtoconvertopeninnovationefforts

intorealimpact,thuscapitalizingontheopportunitythatsofarhaseludedsomanyenterprises.

FIGURE4

Organizationswithmatureopen

innovationcapabilitiesaremorelikelyto

outperformlessmatureorganizations

Pro?tability

Revenuegrowth

acrossnumerousbusinessobjectives

2.7x

3.3x

4.5x

Pro?tability/ef?ciency

Realizingvaluefromopeninnovation

fromnewproducts

andservices

Engagementwith

businessplatforms

14

15

4.85

5.00

5.00

Technologyenablement

Ecosystemcapability

2.86

2.91

2.92

3.00

acrossdomainsis2.92

Anobjectives-basedapproach

toopeninnovation

Amongtheorganizationswesurveyed,maturityonopeninnovation

capabilitiesismoderate,withanaveragescoreacrossdomainsof2.92

(seeFigure5).

Thisindicatesthattheaverageorganizationalreadyhasthebusinesscaseand

strategyforopeninnovationinplace,andisbeginningtobolsteritwithadditional

managementsupport.Furthermore,it’sexploringinternalandexternaldependencies,

andestablishingrelationshipswithecosystempartners.However,openinnovation

pilotsandprojectsaremorelikelytobecompartmentalizedthanintegratedacross

functionalunits,andthereislimiteduseofdataanddigitaltechnologiestoaccelerate

innovation.Progressisbeingmade,butmuchworkremains.

FIGURE5

Averagematurityonopeninnovation

capabilitiesismoderate—just2.92outof5

Averagescore

Maximumscorereported

Strategy

&culture

Theaveragescore

4.90

Internal

capacity

16

Organizationsthatwanttoincreasetheirmaturitymustunderstandthatnotall

capabilitiesareequal.Somecapabilitiesaremorerelevanttoinnovationandbusiness

performancethanothers.

Moreimportantly,theroleofdifferentcapabilitiesvariesaccordingtodesired

outcomes.Inordertounderstandhowbesttoallocatetheirresources,organizations

mustclearlydefinewhatobjectivestheywanttoachieve(seeFigure6).

FIGURE6

Organizationsmustsetclearobjectivesfor

openinnovation

Ifyouwantto…Thenyoushouldfocuson…

Governanceforsecurecollaboration

Openinnovationstrategyandexecutionplanning

Participationinecosystemplatforms

Businessprocessessupportingecosystemengagement

Broadanddeepecosystemengagement

Skillsofemployeesengagedinopeninnovation

Trainingemployeestodeliveronopeninnovation

LegalandIPprocessestoenableopeninnovation

Empoweringemployeestotakeinitiative

Participationininnovationecosystemplatforms

LegalandIPprocessestoenableopeninnovation

Integrationofopeninnovationintobusinessstrategy

Governenceandsystemsforcollaboration

Openinnovationstrategyandexecutionplanning

LegalandIPprocessestoenableopeninnovation

Improvetimetomarketfromopeninnovation

IncreasespeedtoROIfromopeninnovation

IncreaseROIon

openinnnovation

Improvemarketsharefromopeninnovation

Realizevaluefrom

openinnovation

1

2

3

1

2

3

1

2

3

1

2

3

1

2

3

17

Organizationsthataremorematureacrossthefour

componentsinnovateatgreaterspeed,scale,and

effectiveness,andareabletoconvertbetterinnovation

performanceintosuperiorbusinessperformance.

Let’sexplorethisfurther.

Ifyourgoalistoimproveinnovationefficiency—for

example,reducingthetimeittakestorealizeROI

fromopeninnovationinvestments—thenyoumustsetupyourorganizationforengagementandcollabo-

rationwithecosystempartners.Amongotherthings,thatrequiresanemphasisonskillsdevelopmentandcybersecurity,bothofwhicharecriticalenablersofcollaboration.

Ifyourgoalisinnovationeffectiveness—forexample,increasingtheimpactofinnovationonmarketshare—

keysuccessfactorsincludeparticipationin

platforms,intellectualpropertyapproach,strategicclarity,andstrongalignmentwithbusinessstrategy.

Ourfindingsreinforcethenotionthatopeninnovationisastrategicbusinessdecisionthatrequiresclarity

withregardtobusinessobjectives.Inotherwords,

whyisyourorganizationengaginginopeninnovationinthefirstplace?Isittoacceleratethespeedof

innovation,forexample?Orperhapsit’stocreatenewcommercializationandmonetizationopportunities?

Differentleverswillcomeintoplaydependingon

whatyou’retryingtoachieve—whichcouldexplain

whyaclearstrategyandexecutionplanisuniversallyimportantacrossallobjectives.

18

Casestudy

FAW-Volkswagen

buildsopeninnovation

deliveryskills10

AspartofabroaderefforttoleadChina’sEVanddigitalautomotive

industry,FAW-Volkswagenembarkedonend-to-endtransformation.

Thisincludedcreatingandtrainingadigitalinnovationteamofmorethan150individualsindesignthinkingandagileoperations.Toachievethis,itusedagaragemethodology—asetofbestpracticesguidingcompaniesthroughtransformationprocesses.

FAW-Volkswagenalsoimplementedcloud-basedtechnologycapabil-

itiestoenableintegrationwithotherdigitalservicessuchasstreamingmedia,parking,andEVchargingservices.Thistechnologyshiftfosteredseamlessintegrationsbetweensoftwareandthewiderecosystemof

externalservices.

Theinitiativeresultedinmorethan3millionnewusersregisteringforFAW-Volkswagen’sVWandJettabrandmobileapps,underscoringtheimpactofopeninnovationanddigitaltransformationoncustomer

engagementandbusinessoperations.

Fortransformingtheverynatureofitsdevelopmentteamfromafacto-ry-focusedsoftwaredepartmenttoanagilegroupofinnovators,the

ChengduR&DteambecamethefirstteamwithinFAW-Volkswagento

gainindependentR&Dcapabilities.ItalsowonanIDCawardfor“BestinFutureofDigitalInnovation”foranintelligentnetworkdigitalcapaci-

ty-buildingproject,whichincludedestablishinganintelligentecosystemmiddlewareplatform.

19

20

Casestudy

Virtusaembraces

participationinopen

innovationplatforms11

Mostbankingandfinancialservices(BFS)firmscannotaffordthe

distractionandexpenseofoverhaulingdecades-oldlegacysystemsand

processes.Instead,“build,buy,andcompose”isbecomingthe

innovationmantraforfirmsthatarevyingtocompeteandoperateeffectivelyinthedigitalBFSenvironment.

AlthoughserviceprovidersplayanemergingroleasBFSecosystem

orchestrators—curatingandmanagingfintechs—thereisarealneedformorevisibleandtransparenttestingandvalidationprocessesbefore

fintechsareinvitedintoecosystems.Virtusausesitsexperiencewithproductdevelopmenttohelpvalidateandtestfintechsbeforebakingthemintoservices.

ThecompanyinitiallybuilttheOpenInnovationPlatform(OIP)asaninternalacceleratortohelpmanageitsownideationandproduct

developmentcycles.Itthenconverteditintoanacceleratorforits

financialservicesclientstohelpdriveco-innovationwithclientsandexternalpartnerssuchasfintechs.Virtusaalsodevelopedseveral

banking-specificAImodels(forexample,defaultpredictionandfraud

detection),workflows(forexample,customeronboarding),andasmartbankdatamodel,andaddedrelevantAPIsandsyntheticdatatotheOIPsoitcouldserveasasandboxenvironment.

VirtusaproductizedtheOIPin2021afterusingitwithseveralBFS

clients.ArelatedsubcomponentcalledtheDigitalProductWorkbenchallowsinnovationstomovefrominterestingideasusingdesignthinkingtoactualproductdevelopment,withafocusonreuse—helpingto

acceleratecycletime.

Automotive

Bankingand

?nancialmarkets

Chemicals

Consumerproducts

Electronics

Electricpowerutilities

Government

HealthcareprovidersIndustrialproducts

Insurance

ITservices

Mediaand

entertainment

Petroleum

Pharmamanufacturers

Retail

Telecom

Transportation

Travel

Openinnovationisvitalyet

variedacrossindustries

Ifdefiningone’sobjectivesissocriticaltoopeninnovationmaturity,the

questionbegs:whatarecompaniestryingtoachievebyengaginginit?

Interestingly,theirnumberonepriorityisreducingandoptimizingcosts,

followedbyimprovingproducts/servicesandcreatingnewbusiness

modelsandvaluepropositions.

Objectivesdifferbyindustry(seeFigure7).Thissuggeststhatorganizations’strategic

objectiveswithopeninnovationdependlargelyonindustrycontext.

FIGURE7

Organizations’topopeninnovation

prioritiesdifferwidelybyindustry

21

22

Automotive

Bankingand?nancialmarkets

Chemicals

Consumerproducts

Electronics

Electricpowerutilities

Government

Healthcareproviders

Industrialproducts

Insurance

ITservices

Mediaandentertainment

Petroleum

Pharmamanufacturers

Retail

Telecom

Indeed,theparticularsofindustryecosystemsandmarketconditions—

andtheroleofone’sorganizationwithinthese—willdictatehowopen

innovationcanbringvaluetotheenterprise.Itisthereforenosurprisethat

organizationsinnetworkedindustriessuchaselectricpowerutilitiesand

telecommunicationsonaveragedisplaythemostmaturecapabilities.In

contrast,organizationsingovernmentaretheleastmature(seeFigure8).

FIGURE8

Thereisroomforimprovementacrossall

industries—includingthosewiththemost

matureopeninnovationcapabilities

1

Foundational

2

Repeatable

2.92

Averagematurity

3

De?ned

4

Managed

5

Optimized

23

Casestudy

Bankartcreatesanew

valuepropositionwith

openbanking12

Bankartisapaymentinstrumentsprocessorthathandlesmorethan

45milliontransactionsamonth.ItenabledaradicalchangeintheSlovenian

bankingsectorthroughopenbanking,capitalizingonthechanging

regulatoryenvironment—particularlyopenbanking-friendlyregulations

suchastheupdatedPaymentServiceProvidersDirective(PSD2).

Openbankingallowscustomerstomanageaccountsacrossmultiple

banksandprovidesalternativepaymentsystemsthroughaplatform

withintegrationandregulatorycompliancecapabilities.

Thisinnovationempowered11outof15Slovenianbankstothrivein

theopenbankingenvironment,reducingtheircostsanddeployment

timelineswhencomparedtothetimeneededtocreatetheirown

platformsin-house.Becauseitintegratedtheremainingfourbanks

acrossplatforms,itallowedcustomerstoaccessanyaccountinthe

countrythroughasingleaccesspoint.

Bankart’ssuccessfuluseofopeninnovationenabledittotransform

thebankinglandscapeinSlovenia,fosteringefficiencyandcooperation

amongbanks.

“Thescaleforthissolutionwasbonkers,”saidSinisaJancic,business

developmentandinnovationdirectoratBankart,Procesiranjepla?ilnih

instrumentovd.o.o.“We’reprovidingfor11differentbanks—eachwith

theirownsecurityrequirementsandsoon.Butwewereallalotmore

comfortabledoingthistogetherthanwewouldhavebeendoingitby

ourselves.BetweentheIBMinfrastructure,ourknowledgeofmicroser-

vices,andBankart’sexperiencewiththebanks,wecouldallworkreally

fastandcoverallofthebasestocreateanopen,compliantsolution.”

24

Winthedaywithco-creation—notstagnation

Yourenterpriseisatanurgentcrossroads:eithertheorganizationopensitsdoorstoopeninnovationnow,oritcouldbeclosingthedoortofuturevaluecreation