Jan Niemi
CEO
Ab Shift Actions Oy
Finland
jan.niemi@shiftactions.com
In the maritime industry, the green transition is a pressing and unavoidable reality. Therefore, many maritime technology providers and shipping companies are overly fixated on regulatory milestones. While compliance with legal and regulatory frameworks is essential, it should be viewed as the baseline, not the pinnacle, of their efforts.
The current landscape sees companies racing to meet the minimum requirements set by international and national regulations. This focus on compliance, while necessary, often leads to a myopic view where the primary goal is to avoid penalties rather than to innovate. Working within established industry boundaries results in a crowded “red ocean” where competition is fierce, and differentiation is minimal. Companies boast about their compliance, but this does little to set them apart in a meaningful way.
True competitive advantage lies beyond mere compliance. It requires a shift in perspective from meeting regulatory milestones to creating disruptive innovations and exploring “blue ocean” strategies. Blue ocean strategies involve creating new market spaces, making the competition irrelevant, and unlocking new demand. By creating new market spaces, companies can achieve significant growth and innovation, tapping into uncharted territories. Unique value propositions and new demand often lead to higher profit margins compared to saturated markets. This approach is crucial for maritime companies that wish to lead rather than follow.
To achieve this, maritime technology providers and shipping companies must look beyond the immediate regulatory requirements and focus on long-term, sustainable innovation. This involves investing in research and development, embracing new technologies, and fostering a culture of creativity and risk-taking, but not forgetting about disciplined innovation activities and strategies. However, a significant barrier to this is the prevalent risk-averse leadership within the industry. Many leaders are so focused on mitigating risks and ensuring compliance that they stifle innovation and discourage bold, transformative ventures. This cautious approach is preventing companies from exploring uncharted territories and seizing new opportunities that could provide substantial competitive advantages.
Leadership plays a pivotal role in this transition. Leaders must encourage their teams to think beyond compliance and regulatory milestones, as well as beyond core businesses. They should foster an environment where innovative ideas are nurtured and where the pursuit of excellence goes hand in hand with sustainability. This means setting ambitious goals that go beyond what is regulatory required and striving to achieve them through innovative and disruptive solutions. For example, implementing innovation labs, building corporate ventures, or establishing cross-functional teams dedicated to exploring new technologies and business models outside core activities can drive this change. Business building involves creating new business units or ventures within an existing company to explore new markets or technologies. This approach allows companies to diversify their offerings and tap into new revenue streams. By establishing new business units focused on emerging technologies or untapped markets, companies can diversify their offerings and reduce dependency on traditional revenue streams. This proactive approach not only mitigates risks associated with market saturation but also positions companies as pioneers in the industry. If business building feels like a stretch, then venture clienting might be a solution. Venture clienting is an effective way for maritime companies to infuse innovation into their operations. By partnering with startups, established companies can access cutting-edge technologies and fresh perspectives that might be challenging to develop in-house. This symbiotic relationship not only accelerates the adoption of innovative solutions but also provides startups with the resources and market access they need to scale. Looking ahead, the maritime industry must navigate not only regulatory changes but also technological advancements and shifting customer expectations. Leaders that embrace blue ocean strategies will be better positioned to lead in this evolving landscape.
In conclusion, while regulatory compliance is a fundamental aspect of the green transition, it should not be the end goal. Maritime technology providers and shipping companies must aim higher, seeking out competitive advantages through innovation and blue ocean strategies. By doing so, they can navigate beyond the crowded waters of compliance and into the open seas of opportunity, where true differentiation and long-term success await.