Short answer

Design research projects aiming to influence investment decisions should integrate both technological trends (e.g., patent analysis) and user/market needs (e.g., surveys, expert input) into their strategic recommendations.

Field
Innovation & Markets
Source
PLoS ONE (2023)
Method
Mixed-methods research combining patent topic modeling, literature/expert surveys, and Quality Function Deployment (QFD).
Evidence
Strong effect

A Quality Function Deployment (QFD) framework, informed by patent analysis and market demand, can systematically guide commercial banks in prioritizing fintech investments. This innovation & markets research insight is drawn from a 2023 study published in PLoS ONE. Using Mixed-methods research combining patent topic modeling, literature/expert surveys, and quality function deployment (qfd)., researchers explored how this design variable affects real-world outcomes. The key design takeaway: Design research projects aiming to influence investment decisions should integrate both technological trends (e.g., patent analysis) and user/market needs (e.g., surveys, expert input) into their strategic recommendations.

Study
Innovation & MarketsRecentStrong effect

Prioritizing Fintech Investments: A QFD Framework for Commercial Banks

A Quality Function Deployment (QFD) framework, informed by patent analysis and market demand, can systematically guide commercial banks in prioritizing fintech investments.

PLoS ONE · 2023

01

Key Findings

  • 01Transaction support technology, secure transactions, and trading platforms were identified as the top three most important fintech categories for investment.
  • 02The proposed QFD framework provides a systematic method for prioritizing fintech investments.
02

Application

Design takeaway

Design research projects aiming to influence investment decisions should integrate both technological trends (e.g., patent analysis) and user/market needs (e.g., surveys, expert input) into their strategic recommendations.

How to apply

When developing new financial products or services, analyze relevant patent landscapes and conduct thorough market research to identify key customer needs and emerging technological capabilities before committing significant resources.

Project actions

  • 01When researching a new product area, consider using patent databases to understand the current innovation landscape.
  • 02Incorporate stakeholder feedback early and systematically into your design process.
03

Method & Evidence

AimTo develop and validate a decision support framework for commercial banks to systematically identify and prioritize fintech investment opportunities.
MethodMixed-methods research combining patent topic modeling, literature/expert surveys, and Quality Function Deployment (QFD).
ProcedureThe study first identified emerging fintech trends through patent topic modeling and assessed market demand for banking services via literature review and expert consultation. This information was then integrated into a QFD framework to determine investment priorities for commercial banks.
ContextFinancial services industry, specifically commercial banking.

Variables

IV["Emerging fintech push (identified via patent topic modeling)","Market pull of banking services (obtained from literature/expert surveys)"]
DV["Fintech investment priorities for commercial banks"]
CV["Specific fintech categories","Banking service types"]
04

Strengths & Limitations

Strengths

  • +Integrates both technological innovation and market demand.
  • +Provides a structured, data-driven decision-making process.

Limitations

The complexity of implementing a full QFD analysis might be a limitation for a time-constrained design project. Patent data can also be highly technical and require specialized tools to analyze effectively.

Reliability & validity

The reliability of patent topic modeling depends on the algorithms and data sources used. The validity of market pull assessment relies on the quality and representativeness of the literature review and expert opinions.

Think critically

How might the 'market pull' aspect of this framework be influenced by marketing efforts, potentially skewing investment priorities away from truly disruptive but less immediately demanded innovations?

05

Design Principles

"Strategic innovation requires a dual focus on technological push and market pull."

In the rapidly evolving fintech landscape, financial institutions face the challenge of allocating limited resources effectively. This research offers a structured approach to identify and rank promising fintech areas, ensuring investments align with both technological advancements and market needs.

06

What This Means for Your Design

This study shows how banks can use a special tool (QFD) to figure out which new money technologies are the most important to invest in, by looking at new patents and what customers want.

How to use in your project

  • 1.Use the QFD methodology as a potential tool for prioritizing design features or material choices in your design project, justifying your decisions based on user needs and technical feasibility.
07

Add to My Project

08

Quick Cite

Paragraph starter

The research by Kang and Sohn (2023) highlights the importance of a systematic approach to prioritizing innovation. Their study utilized a Quality Function Deployment (QFD) framework, integrating insights from patent analysis and market demand, to guide fintech investments in commercial banks. This demonstrates how combining technological foresight with market understanding can lead to more strategic and impactful design decisions, a principle applicable to any design project aiming to address real-world needs.

09

Source

PLoS ONE

CTM and QFD analysis: Framework for fintech adoption priority in commercial banks

journal · 2023

View source

Questions About This Research

What does the research say about prioritizing fintech investments: a qfd framework for commercial banks?
Design research projects aiming to influence investment decisions should integrate both technological trends (e.g., patent analysis) and user/market needs (e.g., surveys, expert input) into their strategic recommendations. Evidence: PLoS ONE (2023).
Why does "Prioritizing Fintech Investments: A QFD Framework for Commercial Banks" matter for design?
In the rapidly evolving fintech landscape, financial institutions face the challenge of allocating limited resources effectively. This research offers a structured approach to identify and rank promising fintech areas, ensuring investments align with both technological advancements and market needs.
How can designers apply this research?
Design research projects aiming to influence investment decisions should integrate both technological trends (e.g., patent analysis) and user/market needs (e.g., surveys, expert input) into their strategic recommendations.
What were the main findings?
Transaction support technology, secure transactions, and trading platforms were identified as the top three most important fintech categories for investment.. The proposed QFD framework provides a systematic method for prioritizing fintech investments.
What research method was used?
Mixed-methods research combining patent topic modeling, literature/expert surveys, and Quality Function Deployment (QFD)..
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2023 journal from PLoS ONE.
What should I do differently in my next project?
When developing new financial products or services, analyze relevant patent landscapes and conduct thorough market research to identify key customer needs and emerging technological capabilities before committing significant resources.
What are the limitations?
The study's empirical application was specific to major South Korean banks, and the framework's generalizability to other financial service firms or regions may require further validation.