Creativity And Implementation Are The Two Components Innovation ...

Innovation is defined as the ?the art of making new connections and continuously challenging the status quo-without changing things for change?s sake? (Stamm, 2004)

The innovation is driven by the capability to see connections, to mark the opportunities and to take most advantage from the innovations and the connections established. Innovations is not just about opening in new markets-it can or is also putting forward the latest traditions of serving the established and mature ones. ?Innovation is of course not confined to the manufactured products; plenty of examples to growth can be found in services?.

There are two levels of innovation:

Incremental Innovation

Radical Innovation

Incremental Innovation

Incremental innovation is generally understood to exploit existing forms or technologies. It either improves upon something that already exists or reconfigures an existing form or technology to serve some other purpose.

Radical Innovation

A radical innovation is something new to the world and departure from existing technology or methods. The terms break-through innovation and discontinuous innovation are often used as synonyms for radical innovation. (Essentials, 2003)

A team of researchers at Rensselar Polytechnic Institute defined a radical innovation more specifically as an innovation with one or more of the following characteristics:

An entirely new set of performance features.

Improvements in known performance features of five times or greater.

A 30 percent or greater reduction in costs.

There are four dimensions of innovation process which will focus on different broad categories which are called as 4P?s approach (Bessant, 2009)

Product Innovation: Changes in the production of services that an organization offers.

Process innovation: Changes in the traditions in which the services are produced and delivered.

Position Innovation: Changes in the environment in which they introduce the services.

Paradigm Innovation: Changes in the underlying mental models which outline what the organization does.

Innovation Process

Idea

Generation

Opportunity Recognition

Development

Idea

Evaluation

Commercialization

This diagram is from (Essentials, 2003)

The process of innovation starts with two creative acts one will be the idea generation and the opportunity recognition. Idea generation sometimes takes the form of a technical insight with no perceptible commercial application. Opportunity recognition occurs when someone says ?This might produce a huge cost change?.

Innovation in the service industry is different than other industries as there is consistent increase in the margin between the tangible and intangible products getting unclear. It is not easy to say whether it is a product or service when we think about some products in the service industry. Many of the considerations for new product development and innovation are the same whether the end result is tangible like product or intangible like service. (Stamm, 2004)

New Service Development Process by Kuczmarski & Associates 1995 in (Stamm, 2004)

1. Problem Description

2. Idea Creation

3. Concept Definition

4. Analysis and Screening

5. Concept Design

6. Delivery and Operation Test

7. Broad Market Testing

8. Infrastructure scale-up

9. Introduction and Launch

10. Post-launch check-up

Innovative services are not easy to understand unless they are explained in detail, and preferably experienced, and a lack of customer taking part in can lead to services being designed based on assumptions rather than actual needs. If a service provider can establish an innovation in the market place through delivering a high-quality service, a competitor might be able to offer the same service, but if customers are satisfied with existing services levels they are not likely to switch to a different provider. Providing superior service levels through training and building expertise can be as efficient in fending off competitors as are patents.

There are five possible angles to service innovation proposed by Terrill and Middlebrooks (1996) in (Stamm, 2004)

Positioning Innovation.

Process Innovation.

Service Offering Innovation.

People Innovation.

Communications Innovation.

Positioning Innovation.

The first angle is the positioning innovation it proposes to build up exceptional positioning that differentiates the product or company from existing offerings.

Process Innovation

The second angle is the process innovation it refer to the removal of addition of a process step to improve the customer experience.

Service offering Innovation

The third angle is the service offering innovation, encompasses three options: the first one is the creation of a unique set of benefits of features by bundling or repacking the existing offerings; the second one is the adding of new benefits to an existing service and the third one being the creation of a totally new service offering which is completely new.

People Innovation

The fourth angle will be the people innovation and it is based on the concept of increasing or decreasing the discretion individuals have to get better the customer?s guest experience and provide individualized services.

Communications Innovation

The fifth one will be the communications innovation the service offering or the use of a unique communication approach to differentiate a service.

The increase in awareness of among the managers of the contribution design can make to the success of the tangible products. The participation of the designers can increase the experience of many services notably. Increasing the competitiveness, as the financial services industry must motivate its managers to consider all levers that they can pull to differentiate their product.

Technology and Environmental Trends in the Hospitality Industry

Every major hotel groups are upgrading their technologies so fast by predicting what tomorrows development might be to keep their customers satisfied by providing more personalised services to them. Some of the managers of the leading hotel groups believe a major change is happening at the top end of the industry, as guests are driving towards the more technology dependent future which helps them in completing their tasks more easily. But the technology demand changes very quickly and this has a very significant implications. And being accurate with the predictions of the technology is important for hotels because of the service they offer.

Nick Price the technology development head for the Mandarin Hotels ltd says that ?In the world of technology, this is an eternity: no one can realistically hope to predict what technologies and gadgets come into place by the end of 2025?. Looking at the current guest behaviour in the hospitality sector there are a few fundamental assumptions that can be made about how the use of technology in the hotels will evolve, inferences hoteliers should pay attention to if they want to future-proof their property.

The hospitality industry can in fact enhance its bottom line by enhancing its environmental procedures and policies of the different organisations in the market?making ?green? an economically sound decision. There are so many new technologies that can make hospitality industries more efficient and help in providing better guest experience. Microsoft is also showing interest in the field of Hospitality to develop new technologies to make the services more eco friendly. It published a list of five hottest technology trends for the hospitality industry. The list also said on how they can be used to make the hospitality venue greener. As there is increasing in the eco friendly attitudes of the hoteliers the use of more sophisticated technology helps in preserving the paper and the other natural resources like water and energy.

The guest services in the upper scale hotels are the most challenging tasks. A non-profit organization called ?Hotel Technology Next Generation? working for the hotel groups to integrate modern technology in the hotel rooms to create a better guest experience and make guest rooms personnel. As a part of Microsoft Smarter Hospitality initiative the smarter guest experience utilizes innovative technologies that empower hospitality people to improve guest?s personalised experience. The software developed by Microsoft the Smarter Hospitality Initiative is a vision and road map to the hoteliers and customers to better address the industry challenges and will provide a new way of interacting with the guests. To save the paper as all the hotels are using a tag Eco Friendly, a new technology called RFID (Radio Frequency Identification) can be used in the hotels which help the guests to gain right of entry to the hotels guest-restricted services like health clubs, spa, pools etc. This technology helps to zip through all these services without stopping them to pay at each and every point. This technology helps employees enter and exit the offices simply using their id cards near a reader to the restricted areas. The membership cards issued to customers the based on the frequencies of their visit to the hotel can also be used for this purpose. The hotel can also provide bracelets to the guests which also serve this purpose and also for advertising the particular hotel brand.

We can also use the technology to monitor the flow of water, energy consumption and also to regulate its wastage making more ECO friendly and resource conserving. Technology will help the hotel to ECOnomically sound.

The companies or the hotel groups invest in reducing their impact by reducing the wastes by introducing new technology because they:

They want to position themselves as innovators and market leaders.

Desire to strengthen competence in technology and develop the new areas of technical competency.

Improve the market image of the whole company.

Desire to act responsibly especially about the environmental aspects.

Taj hotels also keep up to date with the technology they also introduced new software called ?Serenata Net Hotel Campaign Management? to meet all their requirements like guest registration to net sales and connect all the Taj hotels in India and abroad, Sereneta offers a Customer Relationship Management (CRM) which helps hoteliers to develop customer-centric business strategy, they also introduced CISCO TelePresence virtual meeting rooms in their hotels for their corporate guests with the help of CISCO network providers. It is also getting in touch with the guest through online reservations systems etc. Taj stands for the preservation and regeneration of the environment in the country it operates and it is an intrinsic part of the Taj culture. The commitment to the green cause is manifested through all the hotels of the Taj nurturing practices to preserve and enrich the surroundings. As a part of the Tata group of industries who stands protection of the environment and ahead in the usage of up to date technology than the other hotel groups in the market of India. The preservation and regeneration of the environment is the intrinsic part of the culture of the Taj hotels. They are dedicated towards the green cause which is manifested through their hotels nurturing projects and practices to restore, preserve and enrich their surroundings. In order to bring down their dependence on non-renewable energy sources they are tapping the solar energy at some of their properties. They focused on producing bio-gas from the organic waste. They depend on the indirect energy sources like electricity almost 98.8% of their total electricity consumption come from the grids. They are consistently increasing their procurement on the wind energy which is 1.2% of the total energy consumption or demand.

Indirect Energy Consumption of the TAj hotels

As being a part of the Tata?s which had established a committee for climate change under the Tata Quality Management Services in 2008. The focus of the committee is to measure and adopt ?next? practices across the Taj hotels. Water and Paper usage also play a major role in the Taj hotels.

Introducing new Innovation in the Taj hotels for Self Check-in the Front office of the Hotels.

Idea Generation

The Taj hotels are very innovatve in technology. A new technology introduced in the front office of the Taj hotels which helps the guests in self check-in the hotels with the use of the smart cards or the loyalty cards (membership cards) issued to them based on their frequency visit.

Oppurtunity Recognition

As there is tough competition in the market the organistaions must keep up to date with the technologies so as they can provide more personalized service to their customers and help that organisation to capture the market and keep it ahead of its competitors.

Idea Evaluation

Discussing the financial position of the company, the capital involved in the introduction of the technologypossibilties and the draw backs involved in it with the senior management people and explaining them about the advantages like the time saving, eco friendly in case saving the paper and providing more personalised services to the guest staying in the hotel. Getting the feedback from the top level managers and the possible outcomes of the innovation introduced in the front office. Evaluating the innovation introduced in the hotel by frequent analysis of the day to day sales reports and getting the feedback of the guests regarding the new technology introduced for the persoanlised service. Also discussing the things how far the technology heps in personalising the guest service.

Development

The IT needed for developing the software needed for the installation of the slf check-in kiosks with character branded intellegent agent which automatically recognises the guests and complete digital chenk-in using the smart card issued to the guests. It also has the freequent traveller personalization which involves guest room preferences, preferred restaurants and favourite activities. Helping in making the future resevations and concierge support. It must have a smart card encoder which helps in transforming a guest card into a room key. It must have a technology for the personalized calender which helps in reminding of the birthdays,wedding anniversaries etc.The software used by the technolgy is developed with the help of Microsoft, as Microsoft is offering along with its partners a spectrum of solutions to facilitate hospitality companies to connect with guests anytime and anywhere, whether at home, on the road, or on property. Connected Guest Experience solutions utilize the dynamic web tools to offer an atmosphere where guests can use their own technology for the delivery, personalization, and consumption of additional services. And the TAj hotels will empower employees with Microsoft platform tools enabling them to influence trends and the data for a grand share of guest wallet, target marketing, and promotions for a higher response rate and increased generation of profits. Microsoft solutions for Connected Guest Experiences provide Taj hotels with a true competitive advantage to:

Manage guest preferences

Optimize guest interactions

Optimize guest interactions

Commercialization

After introduction of the self check-in kiosks in the front office of Taj there must be continuous assessment how far they are helpful in the increase in the sales of the organisation which in turn helps in increase of profit margins. They must also replace the more usage of paper in the front office and help in managing the usage of power in the rooms by the guests which makes them more eco friendly and more concerned towards the environment.

Conclusion

The introduction of new technology in the hotels will make them more innovative, and help them in capturing the markets they operate based on the type of innovation they introduced and how far it is helpful in fulfilling the needs of the customer and having a look at how far it is successful in satisfying the guests. It must be helpful to the organisation in becoming eco-friendly as they are advertising that quotation along with their brand name. The hospitality research found that adding the self-service kiosk increased the financial results of that particular hotel, but the improvement had taken a lot of time. Thus, the study cautions hoteliers not to expect instant returns from adding self-service kiosks. But after the careful study of the market strategies only a certain innovation can be introduced in to the organisation because it will affects the performance of the business and its brand image in the market and can give a tough competition to its competitors. As far as the innovation which was introduced in the Taj hotels helps the guest in self check-in (if there is no booking also), making future reservations based on their travel calendars and reminding them of the occasions based on the personal calendar and helps in saving paper in the hotel.

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