Concepts and Innovation in Hospitality: Importance, Sources, and Driving Factors

Concepts and Innovation in Hospitality
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INTRODUCTION
Innovation is a kind of new idea or method though which new and innovative products
and services can be developed. Innovation is an important concept for hospitality industry
organizations as it helps them in fulfilling changing needs of their customers in a much better
manner (Hall and Williams, 2019). This assignment will lay emphasis upon starting of a new
service i.e. selling of high- quality eco-friendly services and products to customers. this
assignment will also cover importance of innovation for business performance, factors that drive
innovation in the hospitality industry, and pitching of an innovative concept for the hospitality
industry.
TASK A
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P 1 Innovation Concept and different sources of innovation
Innovation can be defined as a set of new imaginative ideas or creative thoughts in form
of a device or method. Innovation is one of the most important factors that helps an organization
in finding better solutions so that they can meet unarticulated needs and requirements of existing
or new market segment. Innovation helps an organization in bringing improvement within
existing products or services so that unmet requirements of their target market segment can be
meet in a proper and effective manner.
Innovation is one of those factors that can helps an organization to achieve success and
grow continuously in defined market segment. It helps in bringing changes or improvement
within products, processes or services of an organization (Nambisan and et. al., 2017). There are
various sources of innovation. But majorly according to Peter Drucker there are seven important
sources of innovation that have been explained below in a detailed manner:
 The unexpected success or failure: The existing market in which business operates is one of
the most important sources that provides various kinds of opportunities for innovation this is
majorly because innovation can take place unexpectedly or by chance. Not only unexpected
success but unexpected failure can also result in stumbling upon a new idea or a product. In
business both unexpected success of failure should not be left unnoticed. In fact, it should be
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analysed in a detailed manner so that opportunities for changes or innovation can be
identified. Many times, it happens that a person is looking for something and finds something
else.
 Incongruities: Incongruities or incompatibility is another source though which innovation
cab be born. Many times, organizations focus upon developing a product or service without
doing actual research which can lead the organization towards downfall (Rajapathirana and
Hui, 2018). This attempt of resolving incongruities can result in development of idea of
innovation. This source is completely based upon ways in which a person tries to find
incongruities around them or within things that they do as it helps them in development of
something new and innovative.
 Market Structure change in industry: Market structure or change in this structure is
another source of innovation. Continuous changes within market can lead an organization
towards downfall. So, it is important for organizations to keep an eye on continuous changes
within the market. These changes should not be seen as a threat but should be seen as an
opportunity though which something new can be developed.
 Necessity: One of the most important sources of innovation is necessity because of which
various important and needful innovation has taken place till now. Innovation is based upon
development of new ideas and fulfilment of needs and requirements, so, that existing needs
can be fulfilled (Ivanova and Kartoshkina, 2017). Organizations should continuously think of
new ideas and should focus upon bringing improvement within existing products and
services and using it they should develop products that can fulfil necessity of an individual or
target customers in a proper manner.
 Demographics: Change within demographics or lifestyle can either be a source of innovation
or can be a source of failure for an organization. Change in demographics can change need
and demand of existing products or services. This change is another source of innovation that
can be used as an opportunity for bringing innovation within their existing products or
services.
 Change in perception: Another one of the most important sources that can give birth to
innovation is change in perception. Time to time changing perception of people is another
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