Jan 25, 2018 in Research

Bank of America


The main process is experimentation of innovative ideas. The team in charge of the innovations decided to come up with new ideas and put them into experimentation. This process focused on the human and human-technology dimension in formulation of the ideas. In this process, successful ideas were measured in terms of customer satisfaction and the revenue growth of the company. These are the hallmarks of successful ideas. The other important part of the process was the allocation of funds from the central treasury of the Bank of America. This was to ensure continuity of the ideas to maturity.

Organization and management

The activity was led by two executive officers, who were responsible for Bank of America Innovation & Development. They were Warren Butler and Amy Brandy. The organization of the whole process involved holding meetings and making innovative suggestions however much crazy they would be.  Every idea was taken into a rigorous scrutiny before it was subjected to any test. The members would carry out preliminary test and let the ideas undergo natural filtering and thereafter coming up with priorities of the ideas. The ideas were prioritized in terms of low, medium or high level priority. These prioritized ideas were then presented to Brandy and Butler for final decision making.  They then recommended which to take into a final test. In this organization the final ideas would be presented to the corporate executives to recommend a national roll out.


The culture acquired by the Innovation & Development team was the Bank of America Spirit. The main focus of this culture was customer satisfaction. The subset of this objective was increased revenue growth.  This made them to move away from many traditional forms of serving the customer.  Some of the things they did away with was the initial signing up before being served in traditional tellers which would take a lot of time. The other thing was to introduce services with high fidelity. This was to make sure that all process reflected the reality to the customers.

Bank of America’s approach to development of new systems

The process is not much different with the other companies and organizations that are focused on innovative ideas. The bottom-line is experimentation. No new idea would be brought into market without a clear way or method to prove its workability.  The tests come after two things. The first one is the identification of the peoples needs. This is a true spirit of an entrepreneur. This is seeking to understand what people are missing and there after making an opportunity out of their need. The members of the I & D were very keen to detect the wish of the customers. The second important thing is the suggestion of the ideas formulated from the people’s needs to the panel of the team for testing. This makes the process taken by the bank of America similar to the rest of the innovative systems in other companies and organization. A difference would only arise from the fact that this innovation was on services and not physical products. Here the laboratory would be different as we have seen in bank of America.  Here test a carried out directly on people and therefore involves higher risks. The physical commodities are tested in labs that are not human oriented so lower risks are involved.

 Role of experiment

The world is very dynamic. One would only use experiments to come up with new ideas to keep at par with the up coming technologies. This is a continuous process that should not stop in any institution, organization or a company. This is for the reason that at one time they would become obsolete in the old fashioned technology.  The other major role of experiments is to ascertain that new ideas would work. No new technology would just be dropped into the market place, lest its effect would be disastrous to people and or businesses.  In this case, people involved in the experiments would learn measurement and in turn use it to prove successful ideas.

Additional braches for experimentation

Butler and Brady should not accept the additional branches. It is rightly agued that this would strain the members of I & D who are already working very hard to give a good result in the ongoing experimentation in the existing branches. The additional braches would only add the capacity but at the end of the time it would be a duplication of events.  Mistakes incurred during experiments would affect more people. This is a risk that the team should avoid by rejecting the reward of the additional branches.  The other thing is that as the experiment is just at a test stage, the good results would be duplicated all over under the implementation program. Therefore, there is no need for duplication. Another observation is that the team would spend a lot of time retraining the staff members of the various banks to work to embrace the process of the experimentation. From this observation, the additional branches are not going to be cost effective in the experimentation stage.


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