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For a company to succeed as a parking solution, two critical components for success are experience and innovation.
The parking ecosystem is rapidly evolving with the introduction of new software technologies that enhance the experience of parking customers.
Because of this changing landscape, the parking ecosystem needs both established companies and start-ups to drive our industry forward.
Unfortunately, larger companies are often challenged to innovate because their established business practices are built to optimize the cost and efficiency of their core business. Start-ups often fail to thrive because they lack the resources, knowledge and experience in the industry. The winners in this evolutionary game of survival are those that can deliver the industry knowledge, experience and resources of a larger company while also fostering innovation with the mindset of a start-up. These companies capture the best of both worlds and deliver better solutions for their clients’ parking customers.
Here are some thoughts on why new parking solutions need both the experience of a larger company and the innovations of a start-up.
The Complexities of Creating an Effective Parking Solution
If you’ve worked in the parking industry for any amount of time, you know that delivering optimal parking experiences for customers is far more challenging than the average parking citizen understands The trap that previous start-ups have fallen into, is to underestimate the difficulty and complexity of the industry. After all, it’s just parking — how hard could it POSSIBLY be?
To supply parking customers with a reliable, long-lasting solution, you need a company that knows the ins and outs of the industry and is built on years of experience. Additionally, you need a company with ample resources to deliver high-quality and consistent customer service.
Experience isn’t the only thing you need for your parking customers, though — you also need a company that can adapt and implement the latest technologies. Luca Bovalino, the CEO of North America for HUB and IBA Parking Group, recently observed that the nature of parking has completely changed through the years. He stated that “Yesterday, we were a hardware company. Tomorrow, we must become a software and analytics company.”
Why the Parking Ecosystem Needs Start-ups
Start-ups can bring new ideas and talent into the world of parking. These new players can see opportunities for innovation while implementing the latest software technologies to deliver high-quality solutions.
These start-ups are driven by a hunger for success and a desire to make their mark on the industry, meaning they are more likely to take risks and use modern techniques to deliver innovative solutions. In addition, start-ups, because they are smaller and nimble, lack bureaucratic red tape which allows them to pivot swiftly, adapt to market changes, and experiment with novel ideas.
Unfortunately, there have been instances where ambitious, but parking naive entrepreneurs have failed due to their lack of knowledge and experience in this highly nuanced industry. Without the know-how and resources of an established and experienced industry veteran or established company, these start-ups fail to gain sufficient traction in the market to continue.
That said, a company doesn’t need to be small and lack resources to qualify as a start-up. Indeed there are numerous examples in many industries where a larger company created a structure and an environment to reap the best of both worlds: innovation and experience.
Creating a Hybrid Solution That Can Push the Parking Industry Forward
Some larger companies are starting to drive innovation by implementing start-up workflows. Many are creating spin-off groups of ambitious entrepreneurs, allowing them to work unencumbered by the red tape and procedures of the rest of the company.
These “entrepreneurial” businesses have the resources and knowledge of their existing companies while also having the esprit de corps for innovation and freedom of start-ups.
In addition to existing companies creating new, autonomous divisions, larger companies are acquiring start-ups and small businesses to drive innovation. One crucial component of buying these younger businesses is allowing them to continue innovating without stifling their workflows. Rather than forcing them to assimilate and follow company procedures that support and protect the larger company’s core business, the entrepreneurial companies, larger are allowed to work and innovate without overbearing oversight.
The Future of Parking
A critical driver for innovation is a combination of skill and experience as well as the ability to cultivate and implement both within a business. Established companies must create and employ new software platforms while also attracting talented innovators.
The secret of a successful parking solution lies within the experience and resources of larger businesses combined with the skills and innovations of start-ups. The fusion of experience, resources, ambition and talent can pave the way for a better parking ecosystem. This may come in the form of both larger and smaller businesses doing their parts to advance parking solutions, or companies may drive progress by embracing the best of both worlds.
If you’re looking for a customer experience software solution that embraces innovation while also having the resources and experience of an established company, you can count on Parker Technology. You can learn more by contacting us on our website.