"Just as energy is the basis of life itself, and ideas the source of innovation, so is innovation the vital spark of all human change, improvement and progress." (Levitt).
Innovation is the lifeblood of a modern society. Certain innovative ideas are seen as revolutionary at the time of conception because they go against the established order. Innovations have the power to improve lives, to change the way in which whole industries operate and to push the frontiers of science.
Innovative ideas are developed for many reasons. Two such reasons are that an entrepreneur spotted an unfulfilled gap in a market or because he was simply disillusioned with the established way of carrying out a process, (Johnson, 2010). These two reasons can indeed be credited as the reasons for the birth of the innovation I shall be discussing.
The online betting exchange idea was first conceived in by Andrew Black in July 1999 because he was disillusioned with the 'house advantage' bookmakers enjoyed and because he spotted that no-one in the market offered a peer to peer betting system, (Black, Success Stories, 2003). With the help of Edward Wray, Black launched the company Betfair, trading as a website in June 2000.
The online betting exchange revolutionised the way money was wagered online. In an industry where once the bookmaker was king, Betfair has passed the crown onto the consumer.