Financial product innovation: a strategically competitive system engineering approach to financial engineering

Summary form only given. The authors propose a two-pronged approach to increasing product based organizational competitiveness within the financial services industry, with particular emphasis on the elements of financial engineering and corporate risk management. Firstly, the process of product selection is modified via the use of a competitive strategy matrix, which has, as its purpose, the filtering of organizational product development decisions within a competitive strategy framework. Secondly, the process of product development is optimized using system engineering techniques, which have been successfully implemented within conventional manufacturing industries. The aim is to increase the organizational competitiveness of financial services companies by means of the integration of engineering based product development techniques within the financial product development process.