Transcript

Hi, I’m Jeffrey Tjendra the founder of Business Innovation Design. I’ll be sharing with you about the missing lens of innovation.

Human desirability. Technical feasibility. Business viability. This is the world-famous Venn diagram used to describe what innovation is about. There are three lenses of innovation in the Venn diagram. But there is a missing lens that is little known and will make or break the other three lenses.

The missing lens of innovation is regulatory permissibility.

Regulatory permissibility encapsulates the other three lenses. It doesn’t matter if a company creates something desirable with technology that is feasible to experience and makes money. But if the government does not allow it, it’s as good as dead.

Beam, a scooter ride sharing service that operates in Singapore was essentially turned its business to dust, when Singapore government banned the usage of personal mobility devices on pedestrian paths and the road. It rendered their business obsolete.

Early on ride sharing services were also facing backlash in some cities and countries by governments. Germany and Denmark are some of the country that banned ride hailing services.

What’s the deal here?

If you create something totally new, different that creates huge impact in the industry. There are likely no regulations put in place, because regulations are put in place on something that has already happened in the market.

Keep in mind that the impact of disruptive innovation is always controversial because it ruptures existing market by creating new ones. But this is the only way to become the first-mover in a new market. So should you continue pursuing in this grey area? Yes, because regulations that will be imposed depends on how the market reacts and whether the government sees a strong benefit to improve the GDP and the livelihood of the society.

I hope this piece of insight useful to you. We at Business Innovation Design helps companies to build value propositions and ventures that are desirable by your customers, that is technically feasible, makes money, as well as permissible.

Alright. See you next time.