Discovering the Impact of Regulation Changes on Processes: Findings from a Process Science Study in Finance

Regulatory changes such as new environmental, social and government (ESG) requirements can profoundly impact how organizations operate, especially by altering their business processes. Yet, we still know little about the connection between the implementation of regulatory changes in corporate information systems (IS) and their dynamic effects on business processes. This study addresses that gap by investigating how regulatory changes, once embedded in an IS, affect the trade order process of a European financial institution. Conducting a process science study, specifically using both digital trace data and qualitative insights, we identify patterns between regulation implementation and process performance indicators. Our findings show that these indicators shift dynamically after regulatory changes and that such shifts are shaped by contextual factors such as employee experience. These insights underscore the need to move beyond static views of compliance and toward a nuanced understanding of how regulation implementation unfolds over time in technology-mediated work environments.