BBVA CASE STUDY ANALYSIS

Topics: Innovation, Banco Bilbao Vizcaya Argentaria, Customer Pages: 15 (3236 words) Published: October 14, 2013
OPERATIONS MANAGEMENT CASE STUDY ANALYSIS

Innovation at BBVA:

A review of the BBVA Case
with some reflection on how BBVA moving towards
an Open Innovation model

18 October 2013

The following document contains a very brief analysis of the BBVA case followed by some thoughts on an open innovation approach bringing together some of the concepts discussed during our lectures in Operations Management.

Innovation at BBVA

Operations Management

Contents
1. Introduction……………………………………………………………………………....2 1.1 BBVA’s Key Characteristics……………………………………………………….2 2. Innovation at BBVA……………………………………………………………..………2 2.1 Core activities and principles………………………………………………………2 2.2 Innovative projects………………………………………………………………….3 2.3 Open innovation at BBVA………………………………………………………….5 3. Challenge in moving towards to an open innovation………………………………..7 3.1 Potential Dangers…………………………………………………..………………7 3.2 More open innovation at BBVA………………………………………….………..9 4. Conclusion……………………………………………………………………………...10 5. References……………………………………………………………………………..11

1

Innovation at BBVA

Operations Management

1. Introduction
It has been claimed that BBVA has implemented an open innovation, “a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology” says Chesbrough (2003)1. BBVA is seeing itself positioned right and succeeded for innovations. It is suspected that whether the innovation at BBVA is successful and highly recognized open innovation approach. This essay will examine how BBVA build their capabilities to embed an open innovation approach in their organisation and outline some challenges when BBVA moving forward to more open innovation in the near future. 1.1 BBVA’s Key Characteristics

BBVA (Banco Bilbao Vizcaya Argentaria) is a multinational Spanish banking group, providing a wide range of financial services for both businesses and consumers. BBVA is ranked as the second largest bank in Spain. As it’s headquartered in Madrid, BBVA mainly resides on Latin American countries. It also has a strong presence in southern Europe, and has expanded into the United States and some countries in Asia. In 2012, BBVA employed more than 115,000 people and served over 53 million customers in 32 countries with around 8,000 branches2. BBVA implements customercentric approach as its core business and positioning of the BBVA brand3. Not only BBVA focus on a strong customer orientation but also a dedicated innovation. 2. Innovation at BBVA

2.1 Core activities and principles
Over the last decade, BBVA has inclined more customer-centric and gave a lot of attention to innovation. In 2007, the BBVA innovation centre was established in Madrid, where many different innovative projects were born and passed through an experiment procedure, beginning from prototype phrase to testing process. Following this, the 1

Chesbrough, H. 2003. Open Innovation: The New Imperative for Creating and Profiting from Technology. Cambridge, MA: Harvard Business School Press.
2
BBVA Group Highlights [online], BBVA, Available from: <
http://shareholdersandinvestors.bbva.com/TLBB/micros/bbva2012/en/Highlights/BBVAGroupHighlights.html> [2 October 2013] 3
BBVA Annual Report 2012 [online], BBVA, Available from:
[2 October 2013]

2

Innovation at BBVA

Operations Management

outcomes are analyzed and valued before launching the innovation projects, which are formed under BBVA’s innovation and customer orientation approaches. It has been claimed that the following three main principles are extremely helpful to BBVA in the successful development of new services. (Ramis-Pujol and Dröege, 2011)4 1) Continuous customer orientation and expertise

• Start with the analysis of the customers (customer insight) 2) Proactive outward-looking
• Look for and welcome the ideas from the outside to the company • Start-up fairs and sponsor ideas...

References: BBVA, 2012. BBVA Annual Report 2012 [online], BBVA, Available from:
[2 October 2013]
BBVA, 2012. BBVA Group Highlights [online], BBVA, Available from: <
http://shareholdersandinvestors.bbva.com/TLBB/micros/bbva2012/en/Highlights/BBVAGroupHighlight
s.html> [2 October 2013]
Belcourt M., 2006
Carlsson C. and Walden P., 2007. Mobile TV - To Live or Die by Content. In: HICSS 2007, ed. 40th
Annual Hawaii International Conference, Waikoloa January 2007
Chesbrough, H. 2003. Open Innovation: The New Imperative for Creating and Profiting from
Technology
Chesbrough, H. 2012. Open Innovation. Journal of Research-Technology Management, July-August
2012, 20-27.
Chesbrough H et al. 2006. Open Innovation, Researching a New Paradigm. New York, NY: Oxford
University Press, 1-12.
Cloyd G. and Euchner J., 2012. Building Open Innovation at P&G. Journal of Journal of ResearchTechnology Management, July-August 2012, 14-19.
Ensor B. (9 November 2012), Innovation Lessons from BBVA [online], BENJAMIN ENSOR’s BLOG,
Available from: http://blogs.forrester.com/benjamin_ensor/12-11-09-innovation_lessons_from_bbva
PRNewswire (7 August 2013), Mobile banking update allows BBVA Compass customers to pay
people using text, email [online], Yahoo Finance , Available from: <
Von Hippel E. (20 August 2013), User-driven innovation [online], BBVA Innovation Center, Available
from:< http://www.centrodeinnovacionbbva.com/en/news/26230-user-driven-innovation > [1 October
P&G Open Innovation (2013) What is Connect+Develop? [online], P&G, Available from: <
http://www.pgconnectdevelop.com/home/pg_open_innovation.html> [7 October 2013]
Zhu H. et al., 2001. Demand-driven service differentiation in cluster-based network servers. In:
INFOCOM 2001, ed
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Lego case study analysis Essay
  • Bbva Case Study Essay
  • Bbva Compass Case Study Essay
  • case study Essay
  • Case Study Essay
  • case study Essay
  • First Solar Powered Case: An Analysis Essay
  • Case Study Analysis Essay

Become a StudyMode Member

Sign Up - It's Free