70 Years of ATM Innovation

Still Struggling To Make Them Scam Proof

by Idris Mootee

It is all about the human factors.

I find that people are over-concerned with online security every time there is a piece of news about identity theft on TV. It is really not that bad and we need to accept the fact that it will not go away. Whatever security mechanism being put can fix one hole but usually create another hole. Let me take the example of the ATM, it is a very mature technology (probably about 30 years). Not many people know the first mechanical cash dispenser was developed and built by Luther George Simjian and installed in 1939 in New York City by the City Bank of New York, but removed after 6 months due to the lack of customer acceptance. No customer wanted to get money from a machine. It was a failed innovation.

I remember the one ATM card (Standard Chartered Bank) I used. Every time I used it the machine will eat the card and mail it back to me. I'm not sure what security design reason caused the behavior. So I can only use it once until they send it back in two days. It is designed to prevent fraud.

30 years later, there are still many ATM scams. Japan is still trying to figure out a way to stamp out ATM frauds. Chiba Bank has installed phone signal jammers at four unnamed ATMs at bank branches in the Tokyo region, I am not sure what exactly the criminals were able to convince people to do via mobile. I think there is too many cases criminals instruct victims to withdraw cash from the ATM through the cell phone. The often target the elderly, often telephoned by perpetrators claiming to be relatives and in need of some emergency funds. A new innovation is Aichi Bank is now ATMs will now no longer allow consumers to complete the transaction until they hang up. So you cannot be talking to your friends while getting your money.

How does it work? A metallic film around the ATM will block access if it detects mobile phone waves. Essentially ATMs will become out of range for mobiles. Not only might this prevent the criminals from relating their information, it also helps to provide a break for the consumer to think carefully about the transaction.

While others are jamming cell phones, BT Broadband is converting 2,500 ATM machines to serve as free Wi-Fi hotspots. And for some places like Tibet, people are blessed (literally) with money with their ATM withdrawals. A relatively new addition to Lhasa's old city urban infrastructure an ATM machine - including the red pasted duilian - effectively blessing every transaction that passes through this machine. It is a way to making money clean (legally). Here's another real customer unmet need.

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Idris Mootee is the CEO of idea couture, a strategic innovation and experience design firm. He is the author of four books, tens of published articles, and a frequent speaker at business conferences and executive retreats.

School is Out

by Kevin Roberts

It sometimes feels like I've run the full gamut of school-related experiences - from being kicked out of school at 17, to being invited back as a Governor. I frequently speak to students at universities around the world, but having an eternally curious granddaughter like Stella in my life has piqued my interest in the way primary schools approach the first few years of learning.

Unfortunately, it doesn't seem we're doing our children justice in this regard. Despite being one of the richest countries on earth, America's education system is notoriously rife with difficulties. A recent in-depth report from Cambridge University on UK primary schools suggests a grim focus on state-determined curriculum and assessment is dampening childrens' appetites for learning. The researchers recommend a new approach where formal learning begins age 6 (rather than 5), and that younger children be left to learn through play. I've spoken here before about the importance (and fun!) of free-ranging play outdoors, and I think this principle remains the same in the classroom. Of course core frameworks are important - as long as they allow great teachers to inspire their young pupils to experiment, keep asking "why?", and start coming up with their own answers. Sure, sometimes they'll get it wrong. Sometimes they'll get their hands dirty. But if their curiosity is sparked, they'll develop a love and appreciation for learning as adventure that will last a lifetime.

I like the approach taken by President Obama in a recent speech to young American school children. Always big on hope and inspiration, the President pointed to where the best kind of education leads - discovery, innovation and creation. Not just retaining facts and ticking off boxes, but being able to take what you've learnt and use it to make something exciting and new that benefits everyone. His concluding questions put the future firmly in the hands of his young listeners:

"So today, I want to ask you, what's your contribution going to be? What
problems are you going to solve? What discoveries will you make?"

Fittingly, a bunch of open-ended questions best answered with imagination, not just textbooks.


Image source: http://defencedebates.wordpress.com/category/my-feedback-to-you/

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Kevin Roberts is the CEO worldwide of The Lovemarks Company, Saatchi & Saatchi. For more information on Kevin, please go to www.saatchikevin.com. To see this blog at its original source, please go to www.krconnect.blogspot.com.

UTEK Webinar Synopsis: Tim Jones - Future Catalysts of Innovation

I had the good fortune to attend Tim's webinar today on "Future Catalysts of Innovation", and will now share some of the notes, quotes, and key insights I was able to capture.

Please NOTE: Because these are notes, they may be a little rough, but I've done my best to clean them up.

Tim Jones, Ph.D., author of Innovating at the Edge, (published by Butterworth Heinemann) and Managing Director of Innovaro, a division of UTEK, will discuss the future catalysts of innovation.

Here are some of Tim Jones' thoughts:

Where are organizations now starting to place their bets?

• In this economic environment, people tend to switch back to short-term thinking and focus on making a quick buck

How do we overcome the uncertainty?

• Many of our clients focus on differentiating between what is possibly going to happen versus what is probably going to happen.




• It is important for people to not only look from the Market Now to the Market Future, but to take a more holistic look at how the World Now and the World Future will influence the Market Future


• Catalysts for Innovation (cut across many sectors)


• Short-term (already in play - carbon, web 2.0, biofuels, wellness, etc.)


• Should have already been looking at these for the last five years


• If you haven't been, then you probably have missed the boat


• Medium-term (Water, authenticity, embedded energy, tracking)


• Water is becoming more scarce


• Wikipedia and amazon reviews versus experts from your company


• How can you inject authenticity into your approach?


• Embedded energy


• How much energy does it take to make our products?

Water

• It takes 140 litres of water to make a single Starbucks cappuccino


• It takes 400,000 litres of water to build a car


• Although it is being investigated how to bring this down to 300,000 litres


• People are beginning to take notice of the water and embedded energy topic, and companies like SAB Miller are beginning to take efforts

People are being tracked by their mobile phone, even when it is off

• Japan - Doing away with train tickets


• You get charged when your mobile phone gets on and off the train


• Florida - A Healthcare Pilot


• When diabetics walk into one of twenty restaurant chains they can get text messages about what they should or shouldn't eat on the menu

It is no longer taken for granted that growth or innovation for companies will come from the first world:

• Kenya is the biggest growth market for Vodafone

What can we do right now using these catalysts to accelerate innovation?

• Which ones do we think are going to impact our sector?


• How do we take advantage of them?


• Where in the world should we launch them (tech, infrastructure, social impact, etc.)?

I hope these notes have given you a good idea of some of what was discussed in Tim Jones' presentation of "Future Catalysts of Innovation" and what the key takeaways were. Please also see my blog articles on Gary Hamel's and Regina Lewis' portions of the webinar.

Happy innovating!

@innovate

Government Opens Up to Innovation

Name one of the leading governments for fostering innovation?

If you said the United States, I think you are wrong. While the United States government may dole out a lot of research grants, the United Kingdom tends to take a more active approach in encouraging citizen innovation.

Witness this article from the BBC web site about a competition launched by the UK government at showusabetterway.com to find innovative ways of using the masses of data it collects.

The article profiles three different websites including:

1. Crime Mapping
2. FixMyStreet.com
3. Rate Your Prison

I would love to hear about what countries you think are the most successful and stirring up citizen innovation.

Comment away...