A Model for Managing Innovation in Banks

Considering the critical role of nationalized banks in India's economic transformation, there is a need to replace the present piecemeal approach to innovation by a systemic approach similar to that underlying the setting-up of R & D departments in manufacturing organizations. In this article, Deepti Bhatnagar proposes a model consisting of three stages with a corporate unit to continuously scan for ideas. The three stages of the model are the idea generation stage, the development stage, and the implementation stage. She delineates, for each stage, personnel and structural requirements and suggests mechanisms for minimizing resistance to change.