Tuesday, September 4, 2012Experts

To a regulation at cost?

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The implementation of the new Regulation is going on; I must confess I’m surprised by how low is the anticipation of the actors as a whole. However, certain trends are emerging. First, the experts let us know that there would be no upheaval. This seemed true, for a while. Nevertheless, it is as if details are more and more important, not to say essential.

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When talking with managers of the sector, it is obvious that, if their worries deal mainly with the regulatory compliance, means to achieve it give rise to many questions, especially those that speak money. In fact, the new constraints lead to obligations that will increase costs (sometimes, dramatically), hence affect margins, notwithstanding that the products are more efficient or safer, ultimately. Some of them are so stringent that one could wonder whether they will lead to the opposite result from that intended! I recently read an article stating that, in France, 400,000 people drive unlicensed, since the implementation of tightening controls!

Maybe, time has come to look at things differently.

In innovation management, a way of doing is common: look after the best practices and bench-mark them. Therefore, by learning from the world around us, there is a frame for an interesting approach, which is, further, readily applicable to our industry: low-cost.

What is “low-cost”? “Low-cost” is an economic model. It is not a minimalist approach, as many would want us to believe. Low-cost deals are generally offered by companies new to the market, which have reviewed a market to offer a simple product or service, from which all non-essential …

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