Customers + Need = Opportunity

It is still about needs and customers. It is hard to see a need and innovate ways to fill those needs when you’ve been a part of one business or industry too long. “Whole industries become vulnerable to new rules when all the incumbents accept, more or less, the same industry conventions. An industry full of clones is an opportunity for any company that isn’t locked into the dominant managerial frame.”

Being able to innovate and anticipate changing needs is a form of sustained competitive advantage. When you form a culture that can continuously implement change, experiment, and introduce new products, you have a chance to compete. Your competition surely is not standing still. Your competition may not even be in the gambling industry currently. For example, look what Apple did to the cell phone industry beginning in 2007.

Many managers are risk adverse, which is surprising when you think that many of those managers are in the gambling industry! Leaders often worry about incremental savings or costs and thus avoid risk. Cost-control, while still important, is a defensive strategy. Coupled with the common asymmetric management styles that punish failure more than rewarding success, the typical corporate environment discourages change and innovation in favor of the status quo.

Adopting a Strategic Mindset

Innovation is an offensive strategy. Those that have breakthrough innovation are not afraid to experiment and take calculated risk. They are not afraid of failure. The only people that don’t make mistakes are the ones that don’t do anything. There are many changes and experiments that lead to change. Some are incremental and others, like the Internet, are disruptive (yet another fancy buzzword for what we used to call revolutionary).  The idea in business is to create a customer, and there are many new ones where innovation can intersect opportunity.

Innovation is not solely about new products. It can include many other aspects of an industry such as functions, logistics, and the experiences offered. Another myth about innovation is it takes a special type of person or a lot of creativity. Often, innovation simply involves many people interacting, and evolves when the environment is receptive and rewarding to innovate—don’t wait until you have to innovate out of necessity.
For example, one new market garnering much press is eSports. Is there a perfect model to follow if you want to participate in this emerging market? No, but those experimenting and trying will be those with a competitive advantage as the market matures.

It really doesn’t matter if you think the word innovation is overused. Change is one constant, so if you’re tired of innovation, you can certainly use other words like, rebuild, reform, reinvent, change, make new, usher in, launch, or unveil. Let’s just be sure your business is focused on keeping up with change and is innovative! It is vital to competitive advantage and in some cases survival.

You might start by challenging everyone in your organization with the question: “If something new was possible…” Something new is not a bad start to innovation for your organization. Make innovation, or whatever you call it, part of your strategy. Make the first step by innovating management.

Doug Reed, principal at Racing, Gaming & Entertainment LLC(RGE), a consulting firm with an emphasis on operations, strategy and innovation, has 40 years’ experience in racing, gaming and education. He is also director emeritus and former director of the University of Arizona Race Track Industry Program. His current focus includes eSports/iGaming, strategic operations and innovation for change. For further information email: dougreed27@gmail.com

Hai Ng is co-founder of Neomancer, a unique technology consultancy and advisory firm. Hai applies an anthropologically pragmatic approach when using technology to solve problems. Hai Ng is also co-founder of Spawn Point whose mission is to build and produce solutions to integrate Esports and Gaming. Hai tweets on matters of IGaming as @HaiOnGaming.