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