I will now introduce the regulatory innovation series, where I will explore the innovation impact on industries and firms from regulations. We will discover two dimensions; 1) six innovation strategies to be executed and 2) examples of innovation actions. First, to set the scene, an analytical model will be described. In later posts examples of insight will be shared (such as how Fintech firms can realize regulatory innovation and tangible actions for GDPR innovation strategies).
If you want to really understand how regulatory change influences your business (and your customers and competitors) you need to ask two questions. First question: “What influence does regulations have on my industry?”, second question: “How do regulations impact my company?”. The answer to the first question is that there are four major areas of influence. Dominant designs, company collaboration, technical requirements and legal protections. The four areas of impact on your company are: products, processes, customer relationships and technology. In subsequent posts these influences and impacts will be further discovered.
When you consider the four times four areas of impact and influence there are six innovation strategies you can deploy to create value from regulatory changes. The six strategies are labelled; Standards designer, Advisor and co-creator, System integrator, Business model innovator, Technology wrapper and Infrastructure platform builder. The implications of these strategies are outlined in a coming post.
In the regulatory innovation impact model there are 160 innovation actions outlined (four times four). Examples of the actions will be described in this series. If you want to read more about the actions; subscribe to my newsletter, where each action is described over time.
If you do not have patience and want to know more about how you can apply the framework and model described here. Contact me!