Innovation management refers to introducing and coming up with new ideas for
the development of a business. For the ideas to be effective to the business, they
should be prioritized, implemented, and put into practice. Various studies have shown
that the rate of innovation usually varies significantly from one country to another. This
report will critique and examine the innovation space between two international asset
management companies. The two companies are discussed examine include Fidelity
Investments and Aspect Capital company. By using various journals and other media
sources, this report describes the innovation management process used in the Fidelity
Investments company and the Aspect capital company with the use of Tidd and
Bessant's 4 step model. All the possible recommendations will be given on how the
companies can improve their management and their innovation strategy.
Fidelity Investments was established in 1930 as a privately owned investment
management company. It was started as a mutual fund company. Fidelity Investments
was established following the stock market crash, which occurred in 1929 (Bukowitz,
2013). The company continued with its operations up to 1943, where it was obtained by
a Boston Lawyer, Edward C. Johnson II. During that time, the company reported an
under the management of assets valued at about three million dollars. The Lawyer
Johnson II founded Fidelity Management, which is now known as Fidelity Investments,
to serve as an investment advisor towards the Fidelity Fund. While running Fidelity
Fund, Johnson's main objective was buying stocks with growth potential. In the 1950s,
Johnson II employed Gerry Tsai, an immigrant from China, to help him in the running of
the Fidelity Fund. Gerry Tsai acted as a stock analyst in the company. Tsai bought
speculative stocks such as Polaroid and Xerox as a starting point.
Within ten years, Tsai expanded the funds under management to over 1 billion
dollars, which gained him a lot of fame among many investors. After the fund
encountered high growths, Johnson's son managed the new official Trend Fund by the
MANAGING INNOVATION 5
name Ned Johnson III. Ned contributed to the fund's growth by making it the largest
growth found in the U.S. by 1965. Johnson III became Fidelity Investment's president in
the year 1972. At this time, the markets were unstable, and all the investors were trying
to move to more secured investments. During his first two years of his leadership, the
investment assets went down to 3 billion dollars, and in response to this, Ned
established the Fidelity Daily Income Trust (FIDIT). After his father died in 1977, Ned
became the CEO and president of Fidelity investments until 2014. In 2014, Abby
Johnson, who is his daughter, took over the leadership of the company.
Fidelity investments being the biggest provider of various financial services have
a Fidelity Centre for Applied Technology, commonly known as Fidelity Labs. The
Fidelity Labs' work examines the various technologies required for the development of
the firm, thus ensuring its growth (Capozzo et al., 2008). The technology and the
business of the company are majorly focused on present products and customers. The
company has expanded its company by having offices in various places such as San
Francisco, China, North Carolina, and Europe, which has enabled it to expand its
survives. All of these offices have new investors who need new ideas from startups, big
company labs, and venture capitalists. Considering academic perspective,
The company has maintained a positive relationship with Stanford and Berkeley,
which are in San Francisco, MIT, in Boston, and Trinity, situated in Dublin. For startups,
the company looks in for the various useful things to the company in bringing up
successful growth and development.
Aspect Capital is an investment management company that is based in London.
Aspect capital utilizes a quantitative as well as a systematic approach in the
management of investments. The company was established in 1997 by various major
founders, Eugene Lambert, Michael Adam, Martin Lueck, and Antony Todd. Two of the
major founders of Aspect Capital, Martin Lueck, and Michael Adam, also acted as the
AHL co-founders currently part of Man Group Plc. The AHL was one of the early
management firms in Europe. Eugene Lambert and Antony worked in AHL before the
MANAGING INNOVATION 6
establishment of Aspect Capital. Aspect Capital began trading with the Aspect
Diversified Programme in the year 1998 with a total of 22 million dollars of the assets
that were under management. Aspect Capital has opened various sales offices in Hong
Kong and the U.S. in 2008 and 2004.
Aspect Capital Company utilizes complex mathematical designs and the use of
technology in the computers used in trading the markets of the world. By use of the
technology, it can manage to up to 6.6 billion U.S. dollars. The logo and the name and
the name of the company were derived from the aspect ratio of a wing design, which
was one of the founder's passions, and he explained it as the stability of the plane is
determined by how wide the wing is.
The Aspect Capital company offers a wide range of strategies in systematic
investment. These include the Aspect diversified program. This program utilizes a
medium-term trend that follows a strategy that quantitatively and systematically exploits
and identifies trends in a wide range of foreign exchange and high liquid futures in the
generation of diversifying investors' returns. The programme is also responsible for
running many of all the assets under management in the company.
Mapping the Innovation Space
There are numerous nonidentical results for the innovation process. These
results are found in the new products and services, changes in the organization,
processes enhancement, changes in the management, improvement in leadership
techniques, and production process changes (Lopez-Valeiras et al., 2016). A large
number of the innovations are small as well as incremental and intangible. By using
Tidd and Bessant's 4 step model, the major dimensions of innovation space for the
Fidelity Investments and the Aspect Capital companies are mapped. These dimensions
of space are position, process, product, and paradigm. The innovation space is used to
review and critique aspects of the companies practicing innovation, whether tangible or
MANAGING INNOVATION 7
The fidelity Investment company explains innovation as being the process
making of conveying new customer value. The innovative customer value is established
within the intersection of the client's needs, the enterprise's objectives, and the new and
emerging technologies (Nieuwenhuis et al., 2018). The company is majorly committed
and focused on customer interaction innovation and holding the new emerging
technology to create the best customer value. From a customer's point of view, the
company needs to create a value that results for them.
The Fidelity Centre for Applied Technology (FCAT) is part of the Fidelity
Investments, whose vision serves as an innovation and idea catalyst (Cody-Kenny et
al., 2017). This helps the staff members and the employees of the company realize the
new emerging ideas and technologies in the operations of the company. The FCAT
monitors all the technological developments happening around the globe and utilizes
them in the company. These technological advancements include social networking,
which enhances the user's experience, thus improving the business results. Also, the
FCAT map strategy plays the role of articulating the company's various ways to deliver
Fidelity Investment is usually committed to the continuous improvements on its
products and services known as the Kaizen (Lina & Ullah, 2019). The company's
commitment to Kaizen is shown by the management's performance and the system's
MANAGING INNOVATION 8
compensation. In addition to this, the company establishes various goals for the
business in the future. These goals are usually ranged from the company's various
divisions to the Manager of the company. All these goals focus on the improvement of
the existing processes and products. The progress of the company's set goals is then
adjusted and evaluated on a quarterly and monthly basis.
Fidelity Investment utilizes a well-established general quality for supervision on
the interests of their clients. This plays as a very important status positioning aspect.
According to the Aspect Capital company, due to the fall of income in some
years, the diversification strategy of Aspect Company has stepped out and decided to
involve itself in the generation of some alternative streams of income from new
programs. This was planned to reduce the overall cost base in the company. This has
been met by the recruitment of new staff, putting new strategies in place, and restricting
the company's major roles. This has also been much supported by the continuous
recruitment of new teams in the management. An example is the one that was recruited
in the year 2014. This team of the management participated in the development of the
short-term programme in trading. This programme was upheld into the Aspect Capital
company's systems, and therefore it became a strategy for Tactical Opportunities in the
The Aspect Capital company's products are much well-considered though this
does not hinder the company from acquiring other investment sources. The company
has been able to portray a practical change in its operations (Scarpellini et al., 2018).
This makes the company have a lot of fame from many investors. In addition to this, the
company has many companies and stakeholders to investigate on the company runs its
operations. They have also been able to perform various innovations for a positive as
well as a sustainable forthcoming.
Aspect's forms of operations are usually open for any changes to each and
everyone in the company provided that the change will positively impact the company's
general success. The company's management together forms an innovation team
where they discuss the various innovations required to put in place in the company and
MANAGING INNOVATION 9
Aspect Capital market position is strong and stable and ensures security for their
potential investors. This also helps improve their popularity as well as meeting all their
Organization Innovation Capability
According to the mapping part of the report paper, there exist two major standard
innovations. Some innovations are gradual, while others are complete (Behnam et al.,
2018). These innovation abilities will be examined and analyzed by considering the
background elements in the organization under innovation. This includes the
organizational structure, the innovation strategy, and the people.
The Organizational Structure
The organizational structure is a very critical aspect of any organization or
company. This is because it determines all the operations and the spread and sharing
of power within the organization (Luo & Shenkar, 2017). The organizational structure
facilitates the objective achievement of any company or organization. It also forms the
center for all the communication channels within the organization. The systematic
design, arrangement, and planning of an organization define how an organization will
efficiently and effectively operate. The organizational structure used in Fidelity
Investments is known to have been changing in the years with recognizable
organizational goals. In September 2006, Fidelity Investments announced some
changes in the company's organizational structure (FMR LLC). In 2009, the company
also announced other major changes in the organizational structure regarding the
changes in features of the market.
The management organ at the topmost in the organization is the organization
board headed by a CEO. The board is made up of representatives of various areas of
operation. Each of the representatives acts as a manager of a given type of product
brand. Each of the regions has its CEOs for various outfits in the various countries. The
various outfits usually take structures that are responsive to the characteristics of the
MANAGING INNOVATION 10
host country. In most of the early years, the management of the organization was based
on functions. However, due to the development and advancement and the
diversification of the company's products, the company has developed a matrix
organization structure. The matrix organization structure combines functionality,
geographical spread, and divisional differences into one main structure that serves the
organization's various interests, Fidelity Investments.
The Aspect Capital uses an organic structure that is associated with a flat
reporting structure within the organization. The Senior management team usually looks
into meeting the goals of the organization. This is demonstrated by workers who best fit
the values of the company. This includes moving from one place to another in different
destinations to help the members sales team face various challenges during sales.
They are also involved in various charity and community events. The board members in
Aspect Capital company usually hub stuff Hub meetings within the company where they
raise various issues concerning the company and discuss them. The staff is also given
the opportunities to ask questions within an environment where they can provide
openness for the discussion. The attendants of this meeting are usually ten. They
include Antony Todd, the Chief Technology Officer (CTO), and several selected staff
members. They help the I.T. team in the maintenance of several tasks carried out in the
company. Antony Todd chairs the meeting using an open-door policy. This meeting is
usually held once a week within the company, where all the business updates are given
to the company members in the company to identify the progress of all the processes
carried out in the company compared to the business plan.
The organizational reward structures of the two companies are different as far as
asset management is concerned. Fidelity Investments has a Fidelity Rewards+ which is
usually available to all the clients having invested $250,000 in the wealth management
offerings of Fidelity Investments, automatic upgrades towards high benefit ranks,
automatic quality assets renewals, and no-cost enrollment features. This program gives
all the Fidelity Investment company members a Fidelity Reward Visa Signature Card,
which has an exemption of any annual fee. This card allows the holders to earn
MANAGING INNOVATION 11
unlimited cash of 2% upon purchases made daily. In addition to that, the members can
also earn up to 1% of the total 3% of the cash purchases made daily. This bonus can as
well be added to any of the accounts in the Fidelity Investment company.
Every early-enrollment within the program is eligible for a one-time bonus of $75
upon using the Fidelity Reward Visa Signature Card for any purchases. In addition to
that, membership in this program offers the clients access to three identity protection
layers. These layers include $5 million within the identity theft insurance for a family, the
chance to access full-time monitoring and credit services, and finally, a restoration
service that recovers and restores the customer's identity.
On the other hand, upon attaining five years of service, the company's
employees receive 20 days substantial, which is added to their yearly holiday
allowances. These allowances' main aim is to offer the employees an opportunity to
travel to different places, do some other things, and take part in new activities they
could have done while working. Aspect Capital rewards a total of 5,000 Euros for
spending to all the employees after submitting an itinerary receipt to the CEO. The
company as well offers a bonus structure which is given to the employees every year.
However, both of the companies are majorly focused on the development of their staff.
All the employees can gain the various skills of management required to improve on
their general work performance.
The Innovation Strategy
The process of thinking, planning, and practicing management innovation should
start from the company where the successful innovation is intended for (Baldassarre et
al., 2017). The ability to manage huge data in the company, demonstrating superior
reporting and performing attribution skills using the current technologies, has become
one of the most required points of transformation in Aspect Capital Company. The fact
that investor habits keep on changing rapidly and their mode of choice on how they
would invest continues to mirror how they utilize technology in their daily lives, such as
online shopping and recommendations provided by algorithms. To develop the best
innovation strategy, Aspect Capital uses technologies with a high level of integration.
This technology provides various risk analytics, provides portfolio analytics as well as
MANAGING INNOVATION 12
vendor of cybersecurity. The company is more focused on utilizing more value adding
and gradual technological and innovation development.
Fidelity investments, on the other hand, Fidelity Investments uses the Fidelity
Centre for Applied Technology (FCAT), which provides a base for the exploration of all
the upcoming technologies within the company itself. The Fidelity Centre for Applied
Technology (FCAT) has been used as a generator of prolific content used in the
research and investigating new technologies which need to be applied to the company.
The FCAT also considers all the issues required in the expansion of its focus on
generating all the capabilities required for the benefit of the company as a whole. In
addition to providing technological ideas to the company, FCAT also furnishes all the
tools and processes employed by the company in creating a unique approach towards
FCAT has established a Centre for Accelerated Innovation (CAI) to make these
innovation activities more effective. The mission of CAI is to increase the speed of
innovation in the company. To carry out a process within the company, CAI combines
with the organization unit, thus disclosing all the business's positive outcomes. CAI has
built the resources and tools for innovation processes in the Fidelity Investments
company. The company has grown from being a shop housed. With the aid of a large
and strategically focused technology research center, it is now a large innovation hub
inside FCAT that acts to identify the new technologies required in the company's
Comparison between Fidelity Investments and Aspect Capital
By using Tidd and the Bessant's innovation capability, Fidelity Investment would
be placed as a type C firm. This is because of their ability the recognition the needs for
change and innovation. The company can prioritize and implement various projects
required for the improvement and development of the company. This is due to the
Fidelity Centre for Applied Technology (FCAT) which in turn provides a base for the
exploration of all the upcoming technologies within the company. The Fidelity Centre for
Applied Technology (FCAT) has been used as a generator of prolific content used in the
research and investigation of new technologies that need to be applied to the company.
MANAGING INNOVATION 13
On the other hand, Aspect capital can be positioned as a type D firm. This is
because the firm encourages a proactive and creative culture to exploit technological
and knowledgeable networks used as an added advantage in competition. The
company is also always prepared to taking various risks associated with innovation.
Also, Aspect has a high ability in capacity absorption. This is because Aspect Capital
can manage huge data in the company, thus demonstrating superior reporting and
performance attributes skills with the use of current technologies. This has become one
of the most required points of transformation within the company. To develop the best
innovation strategy, Aspect has been able to use technologies within high levels of
integration. This technology provides various ways for the development of the
processes carried out in the company.
Type A firms: UnawareType B firms: ReactiveType C firms: StrategicType D firms: Creative
Firms According to Innovation Capability
The Innovation Management Process of Fidelity Investments
This part explores the Innovation Management Process (IMP) of Fidelity
Investments using Tidd & Bessant's 4 step model. The steps include the search, select,
implement, and capture.
MANAGING INNOVATION 14
Search is the first stage of Tidd & Bessant's model, and it requires various ways
to find innovation opportunities. In this case, there are several ways to be sourced using
various methods, with knowledge management being one of them. Fidelity Investments
company has a separate group called the Fidelity Center for Applied Technology,
commonly referred to as Fidelity Labs. The Fidelity Labs' work examines the various
innovative technologies within the organization for its development. A recent work which
the Fidelity Labs have done is the Watch app for the Pebble smartwatch. The Director
for the Fidelity Center for Applied Technology and the Senior Vice President of the
company is also involved in finding the company's opportunities.
The company's technology and business groups are always focused on the
customers and products who are another useful source of innovation (Liu & Atuahene-
Gima, 2018). The company has various offices in North Carolina, San Francisco, China,
and Europe. They have people who look for new innovation ideas from various big
company labs, venture capitalist, academia, and startups. For instance, concerning
academia, the company has a relationship with Stanford in Francisco, Berkeley, and
MIT in Boston and acts as the source of innovation.
Select is the second stage of the model, and it asks what the company does with
the innovative ideas and why it does so. The Fidelity Company management is involved
Ways of finding
How to make the
What to do and why
How the company
will benefit from the
MANAGING INNOVATION 15
in computing, content gamification, and artificial intelligence, whose main work is
together all the innovative ideas and doing extensive research on the ideas then
transforming them into a suitable business unit. The staff's work researching the ideas
is to forward what is emerging and new from the business environment and forwarding
to the research team. By doing so, it enables the development as well as the success
of the business unit. The company also has a team of technology researchers whose
job is identifying the emerging technologies and doing extensive research on them to
determine how they will affect the business operations positively.
The implement is the third step of the model, and it involves how the innovations
are made effective to the company. Fidelity Labs, which is the innovation arm within the
company, has the duty of finding emerging and better wats that help achieve better
outcomes in business. It focuses on the rapid experimentation in the organization and
design thinking, thus allowing the strategists and internal researchers to develop an
improved customer relationship and implement the emerging technology in the
business. This provides a way to the production of new products and services that best
fit the customers. As a result, the company can address the various issues encountered
by their customers.
The last step of the model is the capture, and it focuses on how the benefits
associated with the innovations are captured and how they add to the company. This
step is mostly analyzed using the five tasks of capture in the Tidd and Bessant's. The
first task consists of the generation and acquisition of knowledge. Fidelity Investment
company has large amounts of knowledge used for the gradual changes and the
projects within the company. Present knowledge is acquired from industrial and project
experiences, development, and training of the employees.
The second task is the identification of the knowledge. In this task, a clear
knowledge of the processes and the systems are well communicated and documented
regularly and easily. The third task is the storage and retrieval of information. Fidelity
Investments uses various tools in ensuring that knowledge is stored in forms that can be
MANAGING INNOVATION 16
easily retrieved during the processing of a project. All the skills and lessons gained from
a project are as well stored for future reference.
The fourth task is the distribution and sharing of knowledge. Fidelity company
encourages at a high level the sharing of information and knowledge to all the members
of the company, and this ensured a successful development of the company. Then the
final task is the embedding and exploitation of the knowledge. The Fidelity Company
combines with other networks to exploit information and knowledge they are having
concerning their company.
The Innovation Management Process of Aspect Capital
This part explores the Innovation Management Process (IMP) of Aspect Capital
company using Tidd & Bessant's 4 step model. The steps include the search, select,
implement, and capture.
Search is the first stage of Tidd & Bessant's model, and it requires various ways
to find innovation opportunities. In this case, there are several ways to be sourced using
various methods, with knowledge management being one of them. Aspect Capital
Company makes use of complex mathematical designs as well as the use of computer
technology in trading the markets of the world. This enables it manage to up to 6.6
billion U.S dollars within the company. The logo and the name and the name of the
company were derived from the aspect ratio of a wing design, which was one of the
founder's passions, and he explained it as the stability of the plane is determined by
how wide the wing is. This well represents the stability of the operations of the
Select is the second stage of the model, and it asks what the company does with
the innovative ideas and why it does so.The Aspect Capital company offers various
systematic investment. These include the Aspect diversified program. This program
utilizes a medium-term trend that follows a strategy that quantitatively and
systematically exploits and identifies trends in a wide range of foreign exchange and
MANAGING INNOVATION 17
high liquid futures in the generation of diversifying the returns of the investors. The
programme is also used in running many of all the assets under management within the
The implement is the third step of the model and it involves how the innovations
are made effective to the company. Aspect Company has decided to involve itself in the
generation of several alternative streams of income from new programs. This was
planned as a result of reducing the overall cost base within the company. This has been
met by the recruitment of new staff as well as putting new strategies in place. This has
also been supported by the continuous recruitment of new teams in the management of
Capture is the last step in the model, and it mainly focuses on how the benefits
associated with the innovations are captured and how they add to the benefits of the
company. The Aspect Capital company's products are much well-considered though
this does not hinder the company from acquiring other investment sources. The
company has been able to portray a practical change in its operations which has really
benefited the company at large. This makes the company have a lot of fame from many
investors. In addition to this, the company has many stakeholders who investigate on
the company thus promoting the running of its operations.
Over the last years of management, Fidelity Investments Company has been
experiencing a significant drop in motivation and confidence among its employees.
Contrary to this, the company has been shown some significant organizational
transformation used to empower and promote creativity among the employees. This is
also used in improving the relationship between the leaders and members. This, in turn,
boosts the trust of the employees. The Fidelity Investments Executive Team promotes
MANAGING INNOVATION 18
creativity by involving all the staff members, from the most junior workers to the
company's most senior workers. This also applies to Aspect Capital company, where all
the company changes are made open to the members of staff. All the members have
the right to pass a change or deny it as they are supposed to be open to all.
Innovation plays a very important role in the competition, and this is because the
more a company is innovated, the more likely it is that their services are the best, which
creates more trust in their customers. The strategy used in Fidelity Investment company
in the profit-orientation of their products is better to compete with other companies. The
company can compete with some large asset management companies.
Asset managers in all companies are required to focus on minimizing
inefficiencies that might occur in their company. These inefficiencies might include
errors in data, effort and cost duplication, and long business transactions and
processes. During the process of reviewing the organization, the Fidelity Investment
Company should focus on this matter. The process of reviewing the organization acts
as a source of acquiring most organization techniques, bringing efficiency and
effectiveness during the various processes carried out in the company. Fidelity
Company also needs to focus on all the possible risks associated with the innovations
processes. It should also focus on acquiring knowledge from various external
competitors, which can be useful in decision-making.
The report's major goal was analyzing the capability and innovation space in
Fidelity Investments and Aspect Capital companies. In addition to this, the Innovation
Management Process in Fidelity Investment has been discussed together with the
recommendations. The analysis done in the report has shown that Aspect Capital uses
technologies with a high level of integration. This technology provides various risk
analytics, provides portfolio analytics as well as vendor of cybersecurity. Aspect Capital
company is more focused on utilizing more value adding and gradual technological and
innovation development. Fidelity Investments focuses on the Fidelity Centre for Applied
MANAGING INNOVATION 19
Technology (FCAT), which provides a base for exploring all the company's upcoming
technologies. The FCAT has been used as a generator of productive content used to
research and investigate new technologies to be applied to the company.
MANAGING INNOVATION 20
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