Abstract
Digital transformation is the core value of the 4th industrial revolution or Industry 4.0. Although the efforts are focused on utilization and usage of technologies like artificial intelligence, internet of things, cloud computing, and many other technologies. We should focus in parallel on regulating the technologies to provide the proper road map and put the proper regulatory frameworks to remove uncertainties in development, investment, or implementation of technologies. Regulatory effectiveness is very important in saving time and rolling out technologies. In one initiative, regulatory technology (RegTech) will utilize the technology to enhance the regulatory process in financial sector; Regulation 4.0 is another; however, plenty of work is still ahead. Some regulators are keen to facilitate the emerging technologies and to see the consequences immediately, thus they use sandbox thinking in evaluating the impact at a small scale. In summary, this chapter will highlight the different practices and methodologies to regulate the digital transformation in the best way.
TopMoving Toward The Regulation 4.0
Driving industry 4.0 or digital transformation ahead will require innovative and “smart” regulatory approaches. Regulation 4.0 is moving ahead to promote better treatment of market participants and to stimulate the spread of services and access to online services and applications without imposing excessive burden on clients and service providers. This needs to call various techniques of co-regulation, self-regulation and, smart motivations.
Nowadays, the promotion of effective and intelligent regulation mechanism of public relations in the field of digital transformation is becoming more urgent. The related business volumes are constantly increasing due to the growth of technology markets, as well as the necessity and possibility to connect an increasing number of devices. Many of the existing business, administrative and social activities are moving towards digital transformation. This tendency is stable and there is no doubt of the need to improve regulatory methods impact.
Key Terms in this Chapter
RegTech: Regulatory technology abbreviated “RegTech” is a new technology that Uses information technology to enhance regulatory processes. With its main application in the Financial sector, it is expanding into any regulated business.
Transformation Imperative: In the current wave of volatility and complexity, organizations must transform, meaning a comprehensive change in strategy, operating model, organization, people, and processes.
Sand Box Thinking: A popular methodology for testing big ideas on a small scale to understand the consequences of the ideas before unleashing them in the world at large.
Regulation Ecosystem: An ecosystem of regulations starting form infrastructure and going beyond the human capital management.
Industry 4.0: The fourth industrial revolution (or Industry 4.0) is the ongoing automation of traditional manufacturing and industrial practices, using modern smart technology
GDPR: General data protection regulations is a legal framework that sets guidelines for the collection and processing of personal information from individuals who live in the European Union (EU).
Pacing Problem: As digital technologies tend to develop in higher speed (pace) faster than the regulation or social structures governing them, causing gap between technology and regulation.