25 April 2008

Industry should take more risks - Hoberman

Lastminute.com co-founder Brent Hoberman sent a message out to the major players in the travel industry to take risks, focus less on ROI and avoid consensus management.

The gregarious internet entrepreneur, who has just founded www.mydeco.com despite ââ¬Åâœknowing nothing about interior designââ¬~, told delegates at the Travolution Summit in London yesterday that his business flourished because he had so little experience in the travel industry.

He explained: ââ¬ÅâœBig companies have a counter risk culture that encourages consensus management. When someone comes to them with an idea, management says: ââ¬ËœOh, weââ¬â¢ve tried something like that beforeââ¬â¢ and they stick with what they know. With start-ups, there is less to lose. Basically, ROI is the enemy of innovation.ââ¬~

He added: ââ¬ÅâœEnable yourself to make lots of mistakes. Playing it safe is not an option in this web world because no-one is smart enough to know where customers will flock to next.ââ¬~

Hoberman, who is a non-executive chairman of the social networking website WAYN.com, also told delegates that he believed peer reviews needed to be much more personalised in social networking arenas in future.

He explained: ââ¬ÅâœI go to the Maldives every year and stay somewhere pretty nice. I thought Iââ¬â¢d try and find a cheaper hotel this year in the Maldives and chose somewhere based on nine great reviews.

"One day into the holiday we realised we were spoilt brats and had to check out. It was then I thought about the fact that I need reviews by people looking for the same holiday experience as I am."

*See Linked Travolution Summit report and more news on TravelMole's e-Wire 

by: Dinah Hatch 

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• Innovation on your money?
  
  

  I can see why Brent Hoberman would say that '˜ROI is the enemy of innovation' and '˜take more risks' and with his experience and millions in the bank he's probably comfortably well qualified to say that! But I don't buy that 'innovation' these days has so little to do with technology, often so expensive and poor value for money that it's easy to see why many true, scratch start-ups cannot afford Brent's confidence.

  By Jason Grist, Friday, April 25, 2008