Table of Contents INTRODUCTION...........................................................................................................................1 Question 1........................................................................................................................................1 Innovation Theories....................................................................................................................1 Question 2........................................................................................................................................5 Historical and possible future development of products & services...........................................5 CONCLUSION................................................................................................................................8 Appendixes.....................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Innovation can be defined as a procedure where consist of various activities to uncover new ways to do things(Bereznoi, 2015). It should not be confused with creation and act as making, inventing or producing something. The statement of innovation may states to both radical and additive changes to products, processes or services. It is considering on major driver of the economy and their factor lead to innovation which is considering as to be critical to policymakers. To understand the report selected company, Host makers which is an award winning home rentals management company. It was launched in July 2014 to growing at a triple digit YOY. It can provide services of interior designing and help in smart algorithmic pricing decision. The company invent and provide services of tinny house which can easily movement. In the report consist of innovation theories which can adopt by companies and understand in deep knowledge. Additionally these theories applied on historical development of one and more products or services and analysis possible future development. Question 1 Innovation Theories To get success in business is totally depend on the self evident. It can create different values in reference to market that will expand on the basis of get competition due to competitors. The innovation theories applied by Host makers to analysis of historical and future development regarding to their product and it will help to get success to launch new product in market in effective manner. There are selected innovation theory that will help to invent new product in effective manner and guide how to deduct their risks. There are discussed theories - Diffusion of innovation theory This theory was formulated by E.M. Rogers in 1962 which is known as one of the oldest social science theories. It developed in connection due to define over time and thought or products regarding to momentums. These are diffuses for the particular population or social system. In the end of result, the activities relate to which people who is portion of social system, they can follow a new idea, behaviour or good. The meaning of adoption that a person can do something different than what they had early. For example – A person purchase new product and use it, assume and perform a new behaviour(Chesbrough, Vanhaverbeke and West, 2014). The key of acceptance is that the particular people must focus on the thought, action or product as 1
new or innovative. It is possible with the help of diffusion. So with the help of particular theory focus on the tiny house design which can move easily. Due to acceptance new idea, behaviour or products in reference to innovation of tinny house does not occur at the same time in a social system. The particular process which can defined that where people mainly thinking about the creation and apt to take the invention rather than others. To conduct creation need to target population according to product like for tinny house target to single people who can easily stay any where in their house. It is essential to analysis about the target population and their taste & preference according to their invention. As a result it can help to modify product according to target people to increase sales. The particular theory has been classified into five categories and there are general group categorise into middle. It is important to understand of characteristics of target group. At the time of promotion of invention there are several plan of action applied to asking to the different adopter accumulation.Originator– According to this category there are consisting those types of people who want to be the first to try the innovation. Such types of people interest in ventures and new ideas. They believe to take risk and are often the first to create new ideas. Very little, if anything, needs to be done to appeal to this population.Early followers– Most of the individuals are discreet when it comes to follow choices in compare of innovators(Foxall, 2014).these types of early adopters can present to their thought in front of leaders and clutch the change opportunities in reference to select expected products which may assist in supporting to edge of them in the organisation. For this they are highly aware for the need and follow the change at the place of market. There are encouraging for invention ideas, thoughts and appropriate to do new things. The strategies are appealing and consist of how to manuals and also information sheets which contain data in relation to execution.Early majority– The particular group consist of those individuals who can select effective innovation ideas as well as process in effectively way. It is compared to adopters and innovators to constitute with majority of the market place. These are personnel need a proof in reference to get success of in creation due to follow of any inventionideaorprocedure.Differentstrategiescandhowimpactonthepeople belonging of this group where consist of evidence regarding to their effectiveness of invention. 2
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Late majority– According to this category include those people who are sceptical of change and focus on the innovation after that it has been tried by majority. Strategies to entreaty for the population where consist of information on how many other people have tried the innovation and get is successfully. Laggards– In the category include those people who can bound by tradition and very conservative. They are very skeptical of change and are the hardest group to carry out on board. There are preparing strategies for appeal to population where consider of statistics, fear appeals and pressure from people in the other adopter groups(Garud, Gehman and Giuliani, 2014). These stages are carrying out by individuals through following of an invention to comprises of creating awareness for carry out innovative idea and practices, after that decide to select the invention so for this use of the idea to test of their feasibility and activity of invention. Eventually, noted that there are primarily due to select of innovations. There are selected different features which can affect to single and play significant role to impact on adopter strategies. There are defined factors to affect the adoption rate of innovation within market place are briefly described below -Relative advantage– The are defined about the degree which can help to do better an innovation which is seen as better than the idea, program or product it replaces.Compatibility– It is focused on the invention with the values, experiences and needs of the future adopters.Complexity– There are considering of difficulties regarding to tinny houseTriability– The extent where the company can be tested or experimented with before a commitment to adopt is made. 3
Observability– In this segment with the help of creation get tangible result of new product design. Limitations of diffusion of innovation theory There are various limitation of diffusion theory of innovation in reference to new product which include the following - To apply particular theory for new product need much of evidence where consist of adopter categories and did not arise in public health. It was not developed to explicitly apply to accepted of new behaviours or health innovation(Heij, Volberda and Van den Bosch, 2014). It does not foster a democratic approach in order to accept of a idea of new product. The particular theory works better with adoption of behaviours rather than stop and interference of behaviours. It does not take into account an individuals resources or social support to follow new behaviours means new product invention. This theory successfully applied in many areas like communication, agriculture, public health, marketing, sales, criminal justice and social work. To invention in market use particular theory in order to categories different categories then take appropriate action. The intervention to address problems regarding to invention of new product and promoted to people in a social system with the goal of innovation (it is mainly based on the diffusion theory). The three horizons of growth This theory was developed by McKinsey & company, is a well known model for organizations to set structure for initiatives and finding an appropriate balance between short and long term projects as per the portfolio. The particular theory is focused on growth and innovation. This strategy framework need to divide of goals into three various horizons - Horizon 1 (Maintain & defend core business) – This is the first level of innovation of any organization. It focuses on the innovation of the core business idea. The most revenue generating products or services are the first priority of an organization to be developed or innovated. Main objective of this level is to maintain the potential or efficiency of the essential business or product which is main source of the cash flow. This may be in form of decreasing cost or increasing quality of the product. One thing is to keep in mind is that these products or services 4
will not always be the as productive as in today's market so it is compulsory to eliminate the unnecessary costs and elements(Hogan and Coote, 2014). Horizon 2 (Nurture emerging business) – Horizon 2 is the next stage of innovation in order to upgrade or transform the business. This stage focuses on the development of existing products on the next level to meet with preferences of next generation. It focuses on expending the market for the upgraded products. Investment on this horizon may be profitable, positive or neutral. This is the most difficult level of the innovation. All sales and marketing efforts lies with this horizon. Situations and trends change over the time hence the innovation is necessary for the essential business. These innovations may take place to comply with the expectations of the existing customers. The investment is made on the products that may replace the existing products within a short time period. Horizon 3 (Create genuinely new business) – This the furthest level of innovation in which new opportunities and thoughts are created. On this level, major part of investment is done on research and development process. The 3rdhorizon is about the learning and development of new business ideas(Swann, 2014) Question 2 Historical and possible future development of products & services Innovation History of Hostmaker: Hostmaker established itself as a Home Rental Management Business in 2014 with its headquarters located in London, UK. With a purpose to induce innovation in the future hospitality industry, this business mainly deals in redefining the stay experience of the customers by providing end-to-end management service. Apart from this, the pricing strategies utilised by the business includes employment of decision-making practices using business intelligence. Due to the rapid advancements in technology and introduction of disruptive innovations such as Artificial Intelligence, Augmented Reality and Internet of Things (IoT), there has been vast improvements in the manner in which hospitality services are delivered to a business entity's audience. Currently, Hostmaker delivers its services in 9 cities which are situated in 6 different countries(Kung and Schmid, 2015). One of the main strategies adopted by the company since its inception includes the integration of local market expertise and proprietary pricing so as to create an everlasting 5
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experience for the customers of Hostmaker. As the business model of Hostmaker is founded on the concept of Internet of Things (IoT), the company aims to induce innovation in the services delivered by it across all its operative locations. For this purpose, Hostmaker continues to collaborate with different organisations so as to enhance quality of service as well as customer value. Initially the idea of Hostmaker was to eliminate the gap between the customer demand and supply of property. Historical development of Hostmaker's services: Historical development relates to past activities where focus on those products and services which can improve through particular theory. In past, company can provide rental house services to local people and also those people who came only for business purpose for few months. Even though Hostmaker is fairly new in the hospitality industry, the business has been able to garner immense popularity among travellers all around the world. Initially the company recognised itself as a full-service management company which offered offered its services to hosts in a hotel-style setting at reasonable prices. By inspiring from the concept of Airbnb, Hostmaker today provides end-to-end management services to its customers who are looking for an enhanced stay experience(Laeven, Levine and Michalopoulos, 2015). For this purpose, it looks after the listings that are made on various websites including Airbnb and helps in ensuring that property is maintained in excellent condition. In addition to this, Hostmaker is also responsible to overlook guest check-ins, supplying fresh hotel linen as well as for taking pictures of various real estates that are listed on such sites. Thus, ensuring that the gap between the service seekers and providers in an effective manner, specifically in regards to short and medium-term rentals. At present the company undertakes extensive market research which targets eight European cities viz. London, Paris, Rome, Florence, Madrid, Barcelona, Cannes and Lisbon. The rationale to target these cities is the inflow of visitors that flock in such destinations throughout the year. In order to achieve property at reasonable prices, the company offers to the property suppliers in the form of three subscription plans which are as follows : Fixed:Ensures stable revenue to such suppliers. It includes services such as ensuring no 'empty' month goes by between tenants. Apart from this, it uses predictive analysis to check how the revenue can be maximised for these parties by employing a combination of mixed and long-term lettings. 6
Flex: Ensures stable revenue to such suppliers. It includes services such as ensuring no 'empty' month goes by between tenants. Apart from this, it uses predictive analysis to check how the revenue can be maximised for these parties by employing a combination of mixed and long-term lettings. However, a management fee of 12% is charged by Hostmaker. Pro:Ensures flexible lettings through the employment of blended yield model and tech- fuelled algorithms. Apart from this, it uses single and multi-city inventory management model along with the expertise of portfolio managers and tailored interior design packages. Future development of products and services Due to inflexion of time, Host makers has been continued focus on the carry out innovation in reference to terms of products, processes and different features. To follow of ritual of a company, it is capable for bringing up tinny house which is easily movable and people easily live in personal apartments(Love and Roper, 2015). It is considering as unique as well as creative tinny house which will allow to separate apartments for living. This will let users transform to their space for different activities like sleeping, working, entertainment all with just the push button. The particular elements face of furniture retail industry to provide system of different experience to motivated by customers with the usage of tripling of a specified space. The high tech wardrobes slides features within particular system. Develop a tinny house which can easily move and equipped with bed, desk, closet, lighting etc. Application of theories On the basis of Diffusion of innovation theory, apply for an innovation need for time which can help to determine of the elements or technology and ten make a purchase. The innovation bring out by Host Makers and in the past of Relative advantage– The historic innovation of reduce mediators between landlord and tenants and it will provide advantage to reduce mediator fees. The future innovation of tinny house that hi tech apartments that aim to ease of experience by customers and provide them space as per their personal agreement. Compatibility- The future innovation of Host makers to provide facility to direct contact to owner and take movable house which can help to select suitable place as per the demand of 7
customers. It provides opportunity to convert their space as per the action to conduct willingly with living and working anywhere. Complexity– The past and future innovation can not need to advance feature into their product by customers. It can implement on the innovation is not as a too much complex and can be conducted by users easily due to occur of their shopping experience(Mikhalkina and Cabantous, 2015). Triability– The personal website and reduce mediators allow to users to collect extra informations regarding to attribute of their products and it will help to take decision to purchase home from direct owner. It is implementing for customers can increase knowledge regarding to product before buying the product. The tinny house is provide facilities to customer to select particular place as per the requirement.Thecustomerwiththefacilitymouldingthehouseandprovidefacilityof customization. The element can help to take on rent as per the demand and tested by customers within the rental house(Saebiand Foss, 2015). Observability– The advantage of tinny house as well as focus on the house property which is provided by Host makers to their customers thereby rendering a competitive edge and assist to retaining of the customers for a long period of time. CONCLUSION As per the above report it has been concluded that innovation is a process which can help to any person to carry out new product and services with unique and different creativity. The particular tool can help to achieve strategies as well as advantage in competitive environment. There are assessed theory of diffusion and growth theory in order to analysis of historical and future development. There are analysis of application of theory in reference to company to achieve advantages. 8
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