If large corporations like Airbnb and Ryanair open up their services to include an API layer, they will help to expand the ecosystem for new apps and content and build a community better user experience, and better user-generated content for all.
I understand and appreciate that companies do not want to risk losing traffic or revenues by opening up their services to include new data, but there are many examples of companies who have worked with start-ups, sandboxing their solutions first, then working on a commercial deal that is satisfactory for both sides later.
Companies like Airbnb have mentioned the possibility of offering a public API to facilitate the development of external apps and websites,and have integrated start-ups in the past.
There are many examples of companies who have integrated successfully with small developers. But there needs to be an open program that starts from within, that people can sign up and use. It starts by putting the infrastructure and culture in place to embrace the creativity and innovation that the start-up ecosystem can bring.
This is often the hardest thing to start because it requires investment in building the technology infrastructure underneath a start-up program; like providing a sandbox, dealing with security implications, and API servicing major parts of a company’s infrastructure. It also requires simplifying commercial agreements so that companies have a fair idea of how they will be rewarded and compensated if they do create something profitable.
Another challenging aspect is educating consumers on the possibility of bugs and other unforeseen problems that can arise with new technology. This is a huge risk for large corporations but the reward can be exponentially profitable when matched with innovative and dynamic technologies.
BBC does this very well with their Taster section, which introduces fresh content and ideas. It informs consumers that all the content is new, innovative, and may sometimes contain glitches. This sets the expectation for consumers that they are getting access to new technology or products but that things may not be perfect.
I believe the benefits to the large companies in the travel industry could be huge; from revenue, to customer experience and innovation perspective. The ability to source and find innovative companies and start-ups and quickly test their offering can help companies achieve their consumer goals and maximize revenue.
In the case of Airbnb, they talk about the complete journey; not just the accommodation. In Ryanair, it’s not only about maximising ancillary revenue, but improving the entire customer experience. Innovative start-ups are the fastest and easiest way to make the improvements necessary to uphold the company values. It is the small developers who are able to look beyond the big picture to anticipate and exceed consumer needs with the details that matter most.
Many companies have embraced the start-up community through incubators, accelerator programs, venture capital funds, and developer programs. Very few however, have nailed the complete end to end process, from the beginnings of the start-up technology, through to the support companies that then build and scale.
One of the ancillary benefits of putting this infrastructure in place for start-ups and developers, is it can also be used by company employees. Utilizing existing talent and knowledge of company operations can be monumental for companies gaining benefit from new ideas that stem from within. Why not run a hack-day to get out of the head and into the hands of consumers?
At PaddyPower, during my time we had two days of innovation events to help us filter the best ideas from 6,000 employees worldwide. In our Labs events we had over 1,200 people registered on our Labs platform within 2 weeks all contributing ideas. We used 2 day Labs Live events to help prototype, customer test, and business case the best ideas from employees quickly. Our first two-day event ultimately resulted in two break through innovations coming out at the end. It’s amazing what can be accomplished when innovative minds to work with intention. Having a platform to access and utilize these ideas is key to getting and staying ahead in this competitive market.
