Re-Risking Not Business As Usual
Investment for the hospitality industry
Dr Robert Kay, Co-Founder and Executive Director, Incept Labs shared insights about innovative companies in his talk titled ‘Not Business as Usual” at the 2019 Clubs Australia National Governance and Management Congress.
I learnt that successful businesses allocate and invest in innovation at every level of their organisations. However, I’m sure many in the room were amazed to hear organisations like 3M and Google, invest up to 40% of revenue - not profit - in innovation.
In reflecting on these numbers, I started to appreciate this means, innovative companies invest 40% in exploring creative ways to seek new revenue opportunities, to do things in a more profitable way or to work more efficiently… it’s not too different from my financier advising me to invest all my savings because this reduces risk if I was unable to work and exploring additional income sources improves resilience. Yes, some investments may do poorly in the short run, but exploring options to increase spending money in the long run is what life, like businesses, is about.
"The future and sustainability of industry depends on higher investment for innovation and stakeholders ‘thinking outside the square’ - Not business as usual”.
Dr Robert Kay, Incept Labs
In the technology space, it’s not unusual to be funding projects (not business as usual) as well as maintaining infrastructure needed by operations to do business as usual. However, hospitality is not like technology companies. It’s rare for innovation managers or project managers to be on the payroll of a venue. So exploring means going into the unknown in more ways than one, which can be exciting, scary... and fraught with risks.
YesVR minimised our risk by conducting experiments, researching and using this intelligence to fine-tune the way we do things. We also partner with our clients to reduce the unknown and everyone’s risks overall. To reduce risk for clients, we offer venues a subscription based service that includes hardware and software so venues can invest a little to assess business benefits. If they perceive benefit from using our VR solution to help their people get job ready, their feedback and input will help us further fine-tune our gamified training solution.
This ‘not-business-as-usual’ investment into a venue’s most valuable asset, their people, means their staff are more competent and most importantly more confident in doing their job i.e. interacting with customers. This reduced stress also means their staff can focus on doing their job efficiently.
And when customers are being looked after by well-trained, stress-free staff, they feel comfortable spending more time and inviting their friends and family - which may also provide more revenue opportunities for a venue as well.