When organizations have different technologies that do not provide a concrete solution for their customers, it is said they are experiencing this corporate disorder.
We have all interacted with our bank: whether by phone, chatbots, or in person. What we often do not realize is that for all these interactions to work well, there are software systems that support different areas, such as sales, insurance, and corporate service. In the case of large banks, we are talking about thousands of active systems.
However, this robust technological structure may hide a growing problem: inertial innovation syndrome. This syndrome affects companies that, due to being at the technological forefront, end up incorporating an excessive number of tools — but without truly addressing the real needs of customers and employees.
When Innovation Does Not Translate into Practical Solutions
Customers expect their problems to be resolved quickly and simply. They want, for example, to cancel their card through the chatbot without complications, avoid repeating data when transferred to another department, and receive personalized notifications about promotions. What they do not want is to know if the bank has adopted the latest technology, unless it directly improves their experience.
In recent years, the banking sector has closely followed the evolution of Artificial Intelligence (AI). Although the expectation is that new solutions can bring automation and cost savings, many initiatives end up being limited to the use of common chatbots and ineffective tools for the end customer.
Why Do Companies Fall into Inertial Innovation Syndrome?
Inertial innovation syndrome is more common than it seems. One reason for this is competitive pressure: if a financial institution sees a competitor implementing new software, there is a tendency to adopt the same solution, even without clarity about the real benefits for the customer.
This race for innovation, fueled by constant launches of new technologies, can lead to hasty decisions. Implementing tools without careful analysis can overwhelm internal systems and frustrate both customers and employees.
AI and Inertial Innovation: How to Choose the Ideal Tool
In the age of AI, we are bombarded with news and posts about how these technologies can automate processes and reduce costs. It is natural for managers to want to adopt these solutions to also enjoy their benefits. However, it is essential to avoid innovation for mere trendiness and focus on consciously choosing the right tools.
Here are two essential steps to avoid inertial innovation syndrome:
1. Internal Analysis: Before adopting any solution, leaders must understand the real needs of the company and its customers. This helps avoid purchasing systems that do not add value.
2. Strategic Search: With a clear list of requirements in hand, it is possible to evaluate the available tools in the market that truly meet the organization’s goals. Currently, there are various companies specializing in AI solutions for specific sectors, making this selection process easier.
A good example of this is Fin Sky, solutions developed by N5, which offer tools aimed at the financial sector focused on improving performance and financial inclusion.
How to Avoid (or Exit) an Inertial Innovation Cycle?
It is possible to avoid — and even exit — this inertial innovation cycle. The starting point is to have an honest conversation with the IT team. If there are hundreds or thousands of software systems in use, it’s time to evaluate carefully: how many of them are truly essential?
While there is no exact number of ideal tools for each institution, the recommendation is always to seek simplification. Less is more: instead of adding new systems, prioritize those that consolidate functions and facilitate internal work and customer service. An example is the N5 Now suite, recognized by Microsoft as the Best Platform of the Year, which has native integration of all the necessary software for a financial institution, such as CRMs, BPMs, incentives, and Omnichannel.
Remember: technology is just a means to an end. The ultimate goal is to provide relevant solutions for the customer — not just to follow market trends.
With a strategic analysis and a focus on the essentials, it is possible to adopt innovation intelligently, ensuring that each investment in technology yields tangible results. The key is simple: technology should be a means of solving problems, not an end in itself.
Want to learn more about our solutions that help you innovate by reducing the complexity of your systems? Talk to one of our specialists right now: https://n5now.com/schedule-demo/
