VVV Solutions is an Australian company focussed on creating financial market innovated sports betting products
We’re innovators. We’re outsiders. We’re gatecrashers.
Our foray into sports betting started as algorithmic punters, where we were trading on sports markets using sophisticated betting and trading techniques. Following our many years of participation and observation as customers, we realised that there were clear opportunities to enhance the customer journey by enabling more choice and flexibility.
So we flipped our perspective
We brought together our years of experience in actuarial science, financial markets, technology, strategy and acquired skills in fixed odds wagering to create VVV Solutions; an Australian based technology company focussed on creating financial market innovated wagering products.
We’ve set ourselves a very clear goal
We are going to significantly disrupt the sports betting market by embedding financial market innovated wagering into the core of the industry. We don’t expect our innovations to be immediately intuitively appealing to everyone. That’s the nature of disruption – it’s uncomfortable. But we know we’re on to a winner. To help realise our goal, we’ve invested heavily in bringing on significant capabilities in technology and wagering and are ready and primed to take the industry to its next level of innovation.
Wagering, more so than most industries, has been impacted by digital disruption. While it may seem that wagering is something of an early embracer of the digital revolution, a comparison with analogous B2C industries demonstrates some gaping holes.
Whilst wagering companies have changed the channel by which consumers transact, they have merely transitioned existing wagering products onto new digital platforms. The relationship between the company and their customers has lagged behind and hasn’t transformed in the same way.
The implications of this are significant – operators can and should be able to create differentiated customer experiences. In a market where operators provide a highly commoditised, homogeneous product – price and promotions have been the basis of competition.
To understand innovation in a digitally disrupted market, we’ve studied the underlying behavioural changes that have been created within consumers.
In order to understand the lack of choice, the first question to answer is what choices are we talking about? As it stands, consumers are able choose their operator, stake, product and channel. What’s left?
These current choices are driven by the binary nature of betting. However, what if after placing their initial bet consumers could:
· Change which outcome they’re backing?
· Change the stake of their bet?
· Delay the decision point of a wager?
The focus is on the last two – wagering is still rigid in its binary ‘bet placed, bet resolved’ nature. Additionally, customers are constrained in their ability to design or interact with the underlying product or its provider.
A System of Innovation
In order to capture any sustainable value from introducing new choices, a new, systematic way of thinking about product innovation is required.
Innovation in highly commoditised industries like wagering cannot be an isolated exercise, nor can it be expected that new innovation is non-replicable or perpetually sustainable. To truly differentiate from a product perspective in an industry with low barriers to entry, there needs to be a system of innovation.
Winning companies that want to generate above market profit margins will invest in a system of innovation which allows for the release of new products and business models, which anticipate unmet customer needs. The perceived value proposition of the company then changes from price competitor to customer experience shaper.
We believe sustainable innovation in wagering encompasses three key principles:
1. Anticipate unmet customer needs – by purposely taking an ‘outside-in’ view. This means observing customer behaviours in different settings outside wagering to understand where inspiration for innovation can be brought in
2. Discrete offerings – Develop discrete products to fulfil said needs which makes the product stand out so customers are able to understand and acknowledge the value
3. Standalone sustainability – The product itself must have a sustainable business model and be revenue accretive on its own right in the long term