NEW YORK–It’s a mistake to view the coronavirus pandemic as a temporary halt in efforts to innovate, according to one person. In fact, says Stephen Shapiro, it’s the ideal time to be innovating, as the history of the ATM makes clear.
Writing on Inc.com, Shapiro, an innovation consultant and speaker, observed, “We often hear the expression ‘Build it and they will come.’ With innovation, a more accurate statement is, ‘Eliminate a pain and they will come.’”
Shapiro said the automatic teller machine (ATM) is a great example of the point and is quite relevant to current circumstances.
Shapiro shared how in the mid-1970s, Citibank was the second largest bank in the country, and in 1977, after investing hundreds of millions of dollars in ATM technology research and development, it decided to install the new machines across New York City. Citibank decided to install machines across all of New York City.
“At first, they were not very popular,” he said. “The technology was confusing to first-time users, the machines were not always accurate (they sometimes dispensed the wrong amount of money), and they were impersonal.”
Benefitting from a Disaster
Shapiro said the ATM might never have grown to become the ubiquitous “hit” they have become were it not for a natural disaster.
“February 1978 will always be remembered for a blizzard that dumped as much as four feet of snow in the Northeast,” related Shapiro. “In New York City, nearly two feet of snow brought the city to a grinding halt. Banks weren't open. Instead, people got their money by cashing checks at local supermarkets. But most of the supermarkets quickly ran out of money.
This created a massive ‘pain.’
“Where did people turn? The ATMs,” he continued. “It is estimated that during the storms, use of the machines increased by more than 20%. Soon after, Citibank started running TV ads showing people trudging through the snow drifts in New York City. That's when the company introduced its wildly popular slogan, ‘The Citi Never Sleeps.’ This was the real birth of the automatic teller machine.
Shapiro noted that by 1981, Citibank's market share of New York deposits had doubled, with a lot of the growth attributed to the ATM.
“This story illustrates an innovator's dilemma and opportunity,” said Shapiro. “Brilliant innovations are not necessarily adopted by the masses, and some ideas just need time to incubate and gain acceptance. But will your business survive long enough to see the success? People take massive risks to eliminate their pains, but they play it safe when it comes to adding convenience. ATMs were primarily about convenience. What did it take for them to become a success? A pain caused by a natural disaster.”
Today’s Opportunity
As for the current pandemic, Shapiro noted virtual technologies have been around for decades, but adoption has been slow.
“Now everyone is scrambling to go virtual. Just like the ATM, adoption of virtual technologies will continue long after we return to in-person meetings,” he wrote. “Are your new ideas solving a problem? If they are just a convenience, what can you do to take advantage of a pain--without having to rely on a natural disaster or pandemic?”