16 June 2021
Security Token Report 2021: How traditional finance can innovate with a challenger technology
Business Development Manager at Crypto Finance (Infrastructure Services) AGAbout the author
Security tokenisation: This report looks at developments the banking sector needs to understand – beyond collectibles to equity, bonds, and self-custody.
Michela Iseli, Business Development Manager at Crypto Sorage AG, is one of the authors and research partners with Cointelegraph Research and Crypto Research Report. She outlines the opportunity for finance sector incumbents to innovate when they launch trial projects in the field of tokenization.
We have all seen it: successful companies lose their lead or even fail as new competitors come out of nowhere and take over the market. In The Innovator’s Dilemma, Clayton Christensen describes that early on the effort with new products or technologies is high, despite low customer value and revenues.
However, once a base is built, successive iterations are significantly better and value and growth can increase exponentially. Whereas well-established companies tend to focus on existing “cash cow” products and services with a large existing customer base, new market entrants are agile, find nich-es, and move more easily through the iterations to ac-celerate growth. By the time the product or technology becomes interesting to big players, the value increase provided by the competitor is unstoppable, and it’s too late to compete.