A conceptual and dynamic approach to innovation in tourism 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 : “Enthusiastic and learning Eastern –Finland – project (testing): –Regional Innovation Strategy, helping SMEs in innovation process : 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 University Researchers Teachers and students Research Institutions Other experts KIBS Local network Global network

Open innovation

ResearchDevelopment Firm boundaries Research projects Markets Chesbourgh, 2003

Example, key questions in different phases Phase Review 1 Phase Review 2 Phase Review 3 Portfolio Review Phase 1: Concept Investigation Phase 2: Feasibility Phase 3: Development Phase 4: Post Release Current Product Support ENTERENTER EXITEXIT Does the product make sense from marketing, technical & financial perspectives? If yes, then concept approved & full team allocated What is the product spec? Can we develop it within budget and schedule? Can we produce it at the required cost & volume? If yes, then prototype approved & full team allocated Has the product been fully verified and validated? Have production objectives been met? If yes, then full manufacturing approved & sub-team allocated Does the idea fit roughly with our strategy and resource availability? If yes, then concept document approved & sub-team allocated Is the product meeting safety, efficacy and business targets in the market? If yes, then closeout approved & handoff to product support Phase Review 4 Idea Generation Professor Rebecca Henderson MIT Sloan School of Management

Different types of phases Phase Review 1 Phase Review 2 Phase Review 3 Portfolio Review Phase 1: Concept Investigation Phase 2: Feasibility Phase 3: Development Phase 4: Post Release Current Product Support ENTERENTER EXITEXIT Does the product make sense from marketing, technical & financial perspectives? If yes, then concept approved & full team allocated What is the product spec? Can we develop it within budget and schedule? Can we produce it at the required cost & volume? If yes, then prototype approved & full team allocated Has the product been fully verified and validated? Have production objectives been met? If yes, then full manufacturing approved & sub-team allocated Does the idea fit roughly with our strategy and resource availability? If yes, then concept document approved & sub-team allocated Is the product meeting safety, efficacy and business targets in the market? If yes, then closeout approved & handoff to product support Phase Review 4 Idea Generation 1. Interpretation 2. Analysis - problem solving 3. Manage- ment of change

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

IDEAN EVALUATION PROJECT PREPARATION Demand driven search and development of innovation ideas INNOVATION FORESIGHT (RPM) SESSION INNOVAATION- STRATEGIES MENTORS INTER- NATIONA- LISATION KIBS DISTANCE LAB 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) 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

Contact Dr. Miika KAJANUS Project manager Tel M.Soc.Sc. Sari KARHU Project planner Tel Savonia University of Applied Sciences P.O.Box 72, FIN IISALMI, FINLAND