How to innovate in a regulated industry Wenceslao Casares Regulated industries startups Formed by people with experience in the sector Generally large structures are built too fast Initial product without sufficient innovation ID: 255799
Download Presentation The PPT/PDF document "May 2010" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
May 2010
How to innovate in a regulated industry
Wenceslao CasaresSlide2
Regulated industries startups
Formed by people with experience in the sector
Generally, large structures are built too fast
Initial product without sufficient innovation
Sl
ow business model and product iteration
Formed by people without experience in the sector
Tendency to be much more innovative and disruptive
Much higher road-kill that average startups
Innovation
Undesired effectsSlide3
Regulated industries startups
Innovation
Undesired effects
There is value to be created operating between this two opposites
Showing minimal but serious infrastructure
Keeping dynamism and flexibility to iterate business model and productSlide4
Innovation
Undesired effects
Let’s start looking the opposite
¿which environments are designed to eliminate innovation?
Example: An Army
Which environments produce innovation?Slide5
An Army: The importance of hierarchy
and symbols
General
Brigadier
Colonel
Lt. Colonel
Major
Captain
Undesired effects
InnovationSlide6
An Army: The importance of processes
To give some consistency in similar situations
To reduce the redundant effort
Following process reduces undesired effects
Undesired effects
InnovationSlide7
Innovation
Undesired effects
¿which environments foster innovation?
Example: IDEO
Which environments produce innovation?Slide8
Which environments produce innovation?
Undesired effects
InnovationSlide9
Which environments produce innovation?
Undesired effects
InnovationSlide10
IDEO: Organization structureSlide11
No processesSlide12
An environment that produces innovation...
Is innovation in the best case
40%
The rest are undesired consequences:
Disorder
High costs
Inefficiency
60%
You can’t get
one
without the
other
… doesn’t produce
innovationSlide13
Regulated industries require more creativity to innovate
Regulated Industries are regulated for a reason
That's why they are most likely the Army than IDEO
It
requiresmuch
more creativity
to innovate and at the same time to
fulfill the regulationsSlide14
Regulated industries require more creativity to innovate
Examples of different approaches to tackle this dilemmaSlide15
Example: MicrosoftSlide16
Cisco: Another way
And many more…Slide17
Innovation and regulation: Myths
Processes that produce innovation can be established
Common mistake in a regulated industry
Regulation prevents innovation
You can not innovate in a regulated industrySlide18
Innovation and regulation: Realities
It is more difficult to innovate in a regulated environment
More structured environment
Lack of fear to die
The regulations became our own limitations
To innovate is not always desirableSlide19
An attitude that leads to innovation?
To
understand
the client’s
needs
in the most pure form
Example of
College Fund ProductSlide20
Which is the objective of innovation?
To give a
better service
to
our clients
or to be
more profitable?Slide21
May 2010
How to innovate in a regulated industry
Wenceslao Casares