a conceptual and dynamic approach to innovation in tourism a conceptual and dynamic approach to...

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A conceptual and dynamic approa ch to innovation in tourism "SMEs’ distributed innovation model and tools for it in tourism business”

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A conceptual and dynamic approach to innovation in tourism

"SMEs’ distributed innovation model and tools for it in tourism business”

Contents• Background: developing demand driven practical based

innovation services

• Distributed Innovation: what it is? • Phases of an innovation process

• Examples of some tools used in development of services/tourism business:– Idea generation– Internationalization, – Mentor, – Service design– Idea evaluation “Future products and services” – Self assessment and Innovation management

• Lessons learnt

Background – developing demand driven practical based innovation services

• 2001: Strategy and innovation model for an entrepreneurial forest owner (dissertation)

• 2004: Research and Innovation Manager – activity starts: active search for innovation ideas and their implementation via networks

• 2006: Long term agreement - Savonia UoAS, Oulu and Kuopio Universities 2006 - 2007: “Enthusiastic and learning Eastern –Finland – project (testing):

– Regional Innovation Strategy, helping SMEs in innovation process

• 2008 - 2010: University network’s innovation services –project:– University network based innovation service products; Pedagogical models, User

innovations

• 2008 – 2009: A Model for Developing the Entrepreneurship Skills in Degree Programme in Agriculture and Rural Industries

– The Centre of Excellence: A Certificate got from Ministry of Education in Finland,

• 2009 year of Creativity and Innovation in EU– INNO-FOREST (2005 – 2007) was chosen as an example of best practice in the

field of creativity, innovation and entrepreneurship

-> HOW THE UNIVERSITIES CAN SERVE BETTER SMEs IN THEIR INNOVATION DEVELOPMENT PROCESS

Different kind of

tasks done as part

of courses or thesis

Globally distributed

scientific and applied

knowledge

centers

Distributed innovation - what it is?

SME and it’s external

sources of knowledge

Personal connections of owners and workers

Suppliers

Service providers

Customers

Cooperative companies

Universities

Universi

ty

Research

ers

Teachers and

students

Res

earc

h In

stitu

tions

Other

experts

KIBS

Local networkLocal networkGlobal networkGlobal network

Open innovation

ResearchResearch DevelopmentDevelopment

Firm boundariesFirm boundaries

Research projectsResearch projects

MarketsMarkets

Chesbourgh, 2003Chesbourgh, 2003

Example, key questions in different phases

PhaseReview 1 Phase

Review 2 PhaseReview 3

PortfolioReview

Phase 1:Concept

Investigation

Phase 2:Feasibility

Phase 3:Development

Phase 4:Post

Release

CurrentProductSupport

ENTER

EXIT

•Does the product make sense from marketing, technical & financial perspectives?

If yes, thenconcept

approved& full teamallocated

•What is the product spec?

•Can we develop it within budget and schedule?

•Can we produce it at the required cost & volume?

If yes, thenprototypeapproved

& full teamallocated

•Has the product been fully verified and validated?

•Have production objectives been met?

If yes, thenfull manufacturing

approved& sub-team

allocated

•Does the idea fit roughly with our strategy and resource availability?

If yes, thenconcept documentapproved

& sub-team allocated

•Is the product meeting safety, efficacy and business targets in the market?

If yes, thencloseoutapproved

& handoff toproduct support

PhaseReview 4

IdeaGeneration

Professor Rebecca Henderson MIT Sloan School of Management

Different types of phases

PhaseReview 1 Phase

Review 2 PhaseReview 3

PortfolioReview

Phase 1:Concept

Investigation

Phase 2:Feasibility

Phase 3:Development

Phase 4:Post

Release

CurrentProductSupport

ENTER

EXIT

•Does the product make sense from marketing, technical & financial perspectives?

If yes, thenconcept

approved& full teamallocated

•What is the product spec?

•Can we develop it within budget and schedule?

•Can we produce it at the required cost & volume?

If yes, thenprototypeapproved

& full teamallocated

•Has the product been fully verified and validated?

•Have production objectives been met?

If yes, thenfull manufacturing

approved& sub-team

allocated

•Does the idea fit roughly with our strategy and resource availability?

If yes, thenconcept documentapproved

& sub-team allocated

•Is the product meeting safety, efficacy and business targets in the market?

If yes, thencloseoutapproved

& handoff toproduct support

PhaseReview 4

IdeaGeneration

1. Interpretation 2. Analysis -problem solving

3. Manage-ment ofchange

• is not directly towards the solution of well-defined problems

• This process don’t have a clear end-point, it’s ongoing in time

• Activity, out of which something innovative emerges – a new insight about the customer, a new idea of a product, a new approach producing or delivering it

• The role of manager has less to do with problem solving or negotiation between interests, rather the role is in initiating and guiding conversations among individuals and groups

• The interpretative view is not widely understood or even recognized!

1. Interpretation

2. Analysis, rational problem solving• In designing a new product, the product development

manager first seeks to define a clear objective, usually based on research into customer needs

• Then identifies the resources -human, financial, and technical-that are available to meet that goal, as well as constraints on those resources.

• He then organizes a project to accomplish the goal. The key is to divide the problem into a series of discrete and separable components and assign each one to a knowledgeable specialist.

• The solution is obtained by bringing the components together in some optimum combination as quickly and efficiently as possible.

• Managers role leading problem solver or negotiator resolving conflicts

IDEANEVALUATION

PROJECTPREPARATION

Demand driven search and development

of innovation ideas

INNOVATIONFORESIGHT

(RPM)

SESSION

INNOVAATION-STRATEGIES

MENTORS

INTER-NATIONA-LISATION

KIBS

DISTANCELAB

INNOVATION SERVICE TOOLBOX In University network’s innovation services –project

Example of Idea generation

• Innovation session for tourism company

1) Invite participants: representatives of customers, experts in marketing, technology (e.g. software), financing, recreation services, travel agent, tourism development organizations etc.

2) Programme for session: - Getting to know each other- Warming up- Different kind of tasks to create new ideas in

multidisciplinary team- Summarize -> pick up the new ideas and start project

planning

Example of Internationalization

• Example company Vanamola in Finland, Joroinen- Currently customers from Germany (camps for young

ones, hunting/fishing trips, agritourism)- Goal is to develop more services for customers, e.g.

eco golf (green golf) and find customers from several other countries

- Dutch trainee made Marketing and action plan, which included new tools for marketing strategy (Molen van Royen; Pine & Gilmore)

- Searching for another trainee to put marketing in action

Example of mentor

• Innovation mentor in tourism company

1) Teacher studies the innovation idea of the tourism company and defines how to take the students to work in it as part of their course

2) E.g. background information of eco tourism, making a profile of eco tourist and preparing a marketing plan to reach the potential group

3) Students do the tasks and report the results to the company

4) Important to define the learning goals (theory and practice)

Service design in tourism

• “It aims to ensure that service interfaces are useful, usable and desirable from the client’s point of view AND effective, efficient and distinctive from the supplier’s point of view.” (Miettinen, Koivisto 2009)

• E.g. tourism company could create clear, consisent and unified customer experience with following tools:

1) Customer journey = think how the customer perceives and experiences the service from the beginning to the end

2) Touchpoints = check ALL the spaces, objects, interactions etc. what the customer will meet when using the service: advertising, web pages, booking, coming in, using the service, paying, leaving, after sale

Idea evaluation

• ”Future products and services” = tool for testing the market potential in as early stage as possible

• Real customers can study the product or information about the service and their opinons are collected systemically

• Market research together with exemplifying happening: e.g. medieval festifal -> build the athmosphere where potential customers are, give them basic info and make short question how the feel about that service

Future products Concept- new inventions for customers evaluation

• New inventions in the supermerket (CM Kuopio Kolmisoppi spring 2010)

• 200.000 customers/month • A real market test• Customer can buy • Feedback for inventors• Students running

Self assessment

• Innovation process can be managed by means of quality approach

• E.g. Imp3prove

Imp3rove process

Lessons learnt• Consider end user benefits, i.e. customer’s

customer needs and benefits

• Innovation process is one key process of an enterprise and it can and should be managed

• Keep it simple and goal oriented: to use as straightforward as possible

• Listen, ask questions and guide the discussions to continue

• Involve world leading experts

ContactDr. Miika KAJANUS

Project manager

Email: [email protected]

Tel +358 44 785 6812

M.Soc.Sc. Sari KARHU

Project planner

Email: [email protected]

Tel +358 44 785 6639

Savonia University of Applied Sciences

P.O.Box 72, FIN-74100 IISALMI, FINLAND

http://kip.savonia.fi