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Part of lesson given at Malaga University 2013
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Innovation
- The art of creating new customer values
Value chain with a traditional focus of the innovation process
Value chain with with a service focused innovation process
Source: Dublin Group
(modified)
Core
process
Process.
Enabling
process
Business
model
Finance
Networking Product
performance
Offering
Product
system
Service Channel
Delivery
Brand Customer
experience
Core
process
Process.
Enabling
process
Business
model
Finance
Networking Product
performance
Offering
Product
system
Service Channel
Delivery
Brand Customer
experience
INNOVATION
Invention or idea implemented commersialised
Capability to identify opportunities and
create resources for realisation of
opportunity
INNOVATION, IMPORTANT IF...
Remain competetive
Change destination image/profile
Dealing with seasonality
Dealing with market challenges
Customer satisfaction
New attractions
New activities
New or improved services
INNOVATIONS IN
TOURISM…
PRECONDITIONS…
SMEs structure
Human capitalManagerial and professional capacities?
High labour turnover
Career opportunities?
Difficult to protect innovations
Mutual trust often lacking (in destinations)
Connection between akademia and business in question
(Hjalager, 2002)
TYPES OF INNOVATION (1)
Product or service innovation
New or significantly improved services
Observed by the customer and regarded as new
Never seen before
New to particular enterprise or destination
May become factor in purchase decision.
PRIME EXAMPLE OF RADICAL
TOURISM INNOVATION IN SWEDEN –
THE ICE HOTEL
TYPES OF INNOVATION (2)
Process innovation
- Backstage initiatives for efficiency, productivityand flow.
- Often facilitated by technology investments (ICT, self-service)
- In combination with competence building and HRM (human resource management)
- http://www.sas.se/sv/allt-om-resan/infor-resan/Checka-in/?vst=true
NEW TECHNOLOGY, NEW WAYS OF
DELIVERING
IS INTERNET EVERYTHING– GUIDES, BOOKING, SOCIAL MEDIA
TYPES OF INNOVATION (3)
Market innovations
- Strategic activity vs. markets
- Segments
- Messages
- Brand
- ex: loyalty programs, integration of tourism products,
experiences into other products
Source: www.fritidsresor.se
INTERNET - AS A DRIVER OF INNOVATION
Google is the most important first step selection of vacation
Travelers use a number of information channels before decision –
internet is the most important.
More than 90% look for information on the internet before deciding
on vacation.
Most people compare 15 sites before decision.
Increasingly common to create own package on the internet.
AND – PEOPLE WANTS TO BE CONNECTED ON THEIR
VACATION!
(Source: Ving)
TYPES OF INNOVATION (4) – IMITATION
FROM SKI RESORT TO ALL-YEAR ROUND RESORT
THE SKI RESORT IN SUMMER
- BENCHMARKING
Vision and goals
Organisation
Investments/financing
Markets
Activities
Social impact
Communications
Results
THE SUCCESS CASES
Primary cases
Whistler, Canada
Scoul, Switzerland
Secondary cases
Stowe, USA
Ischgl, Austria
Oppdal, Norway
WHISTLER – MOST TO LEARN FROM
IMPORTANT LESSONS
LEARNEDA vision that everybody understands and support
Organisation for strong leadership
Same brand all year around
Coordinated marketing (destination)
Regional market more important in summer
Mountainbike as `summer skiing´
Skilift owners involved
Events important attraction factors
Culture important
Public investment in activity infrastructure