Concepts and Innovation in Hospitality: Performance and Factors

This report delves into the critical role of innovation within the hospitality industry, exploring its multifaceted dimensions. It begins by defining innovation and identifying its various sources, drawing upon the perspectives of prominent figures such as Peter Drucker. The report then emphasizes the importance of innovation for business performance, highlighting its contribution to problem-solving, productivity enhancement, market differentiation, and competitive advantage. Furthermore, the report examines the key factors driving innovation in the hospitality sector, including technological advancements, the influence of social media, strategic expansion initiatives, and the growing demand for eco-friendly products and services. Through a comprehensive analysis, the report underscores the significance of innovation in adapting to changing customer needs and maintaining a competitive edge in the dynamic hospitality landscape. The report provides a detailed overview of innovation and its effects on the hospitality industry.

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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reason that can give rise to development of innovative products or services in order to satisfy
changing perception of people. Provision of eco-friendly, herbal products in hospitality
industry is result of changing perception of people as today people are becoming more and
more health conscious and environment friendly.
 New knowledge: New knowledge has always been one of the best source of innovation
(Demircioglu, Audretsch and Slaper, 2019). Advancement in technology, new knowledge
areas has always been an important source of innovation as new knowledge areas helps in
expanding thinking capacity and has contributed in innovating something new and advance.
P 2 Importance of innovation to business performance
Innovation plays a vital and important part in development and success of a business
organization. Innovation not only helps an organization in development of new products and
services but also helps in bringing improvement within their business operations and processes
which has further helped in enhancement of business performance in a much better manner. it is
an important criterion which is required to be focused upon by companies in order to expand the
business and sustain within the market in which they operate. There are various reasons that can
help in explaining innovation importance for business performance such as:
 Innovation can help an organization in resolving business problems in a much better and easy
manner. Many times, business face issues or problems that cannot be resolved easily (Kale,
2017). They need to think of something new of different in order to resolve that business
problem. For example, once data storage and protection of data was one of the main and
serious business issue or concern. In order to resolve this issue big data was introduced that
not only heled organization in storing huge amount of data but also helped them in protecting
their data or information.
 It helps in increasing overall productivity and sales of an organization in a much better and
appropriate manner. Innovation has always helped in increasing overall productivity in a
much easier manner. For example: Artificial intelligence is an innovative technology that has
helped business organization to predict their customers behaviour and future trends in an
appropriate manner. Implementation of Artificial intelligence has not only helped
organizations in predicting future trends but has also helped them in development of effective
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business strategy with the help of which they can enhance their production and overall sales
in a much effective manner.
 Innovation can also help an organization to market their business so that they can stand out
from crowd especially for small business organizations. innovative business ideas can help
small organizations to develop a brand name, enhance their business and eventually increase
their productivity (Dzhandzhugazova and et. al., 2016). Today many organizations are using
multimedia technologies for promotions of their brand name, products and service. Many
organizations are still thinking of using innovative technology so that they can reach their
target customers in a much better manner.
 Innovation has led organization towards disruption. Especially hospitality industry
organization. Digital disruption has impacted hospitality industry and organizations within it
in many different manners which has helped companies in this sector to attract large number
of customers towards their business. It has impacted various business processes and
operations in different manner. Adoption of these disruption technologies has helped hotels
in this sector to enhance their overall business performance in a drastic manner.
 Innovation can also help organizations to compete with their existing tough competitors and
gain competitive advantage which eventually helps them in increasing their overall
productivity (Zhang and Walton, 2017). Innovative thinking can help organizations to
identify and fulfil changing needs and desires of their customers, many times this further
helps companies to expand their business into new market segment. Like changing needs and
desires of customers has helped many organizations in hospitality industry to expand their
business. For example, today most of the customers prefer healthy and environment friendly
products which has given rise to increasing usage of environment friendly products in this
sector and has also provided an opportunity to hospitality industry organizations to expand
their business.
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M 1 Contribution of innovation to business performance and analyse the benefits that can be
gained as a result
Innovation has contributed in enhancement of business performance in many ways and has
also helped in providing various kinds of benefits to business. Adaptation of new and advance
technologies like big data has not only helped in enhancing overall business performance but has
also helped organizations in gaining information about current trends, making predications etc. it
has been one of the main benefit for them as they can develop their business strategies according
to the information gained though big data (Byukusenge and Munene, 2017). Innovation has also
helped business organizations in identifying changing needs and requirements of their customers
which has further helped them in identifying innovative changes that are required to be brought
within their current products and services for satisfying changing needs of their customers. this
has provided the organizations in increasing their overall sales and attract more number of
customers and expand their customer base.
LO 2
P 3 Different factors driving innovation in the hospitality industry
Changing needs and requirements of customers in hospitality industry has given rise to
innovation in hospitality industry. There are various kinds of factors that has helped in driving
innovation in hospitality industry.
 Technological advancement is one of the most important factors that has helped in driving
innovation in hospitality industry. Advancement in technology has increased usage of
advance technology to attract a greater number of customers and has also helped in making
business processes much easier. Advance technology like big data has helped in driving
innovation in this industry. Big data is used by most of the hospitality industry organization
in many ways (Prajogo and Oke, 2016). it has helped them in identifying important patterns
that are useful and important for them to be studied so that important improvement within
their revenue management strategies, customer service can be brought as it will directly help
them in enhancing overall experience of their customers in a much better and appropriate
manner.
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 Excessive usage of social media and mobile technologies is another factor that has helped in
driving innovation in this industry. Organization in this industry are using multimedia
platform for promotion of their products and services and reaching their customers in a much
better manner. These technologies are being used by companies in this industry to engage
their customers in a proper manner. For example, today more number of hospitality
organizations are promoting their products and services upon social media platform like
Facebook and many more. This has helped them to engage their customers within their
business.
 Expansion and penetration strategies is another factor that had driven innovation within
hospitality industry. Today in order to expand a business in chosen market it has become
extremely important for business organizations to focus upon adopting innovative practises
into business expansion strategies. This is because innovation strategies help the companies
to target underserved market (Byukusenge, Munene and Orobia, 2016). This further helps the
organization to expand their business in such a manner that they can serve underserve areas
and expand their customer base.
 Not only this today a greater number of individuals are become environment friendly and
prefer using products and services that are eco- friendly. This ha impacted business practises
in many ways. this is another factor that has driven innovation in this industry. For example:
today many customers prefer healthy food products and environment friendly products and
services because of which hotels are focusing upon introducing herbal food products and
eco-friendly products and services within their hotel business such as many hotels today has
implemented solar water heaters within their organization which has not only helped them in
reducing their electricity consumption but has also helped in taking a step towards
environment friendly services and expanded their business.
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M 2 Analysis of advantages and disadvantages of factors driving innovation in the hospitality
industry for meeting business objectives to maximise profit
All the factors that has helped in driving business innovation has their own advantages and
disadvantages that has the company in meeting business objectives to maximise profit.
Technological advantage is one of those factors that can help hospitality industry organizations
to maximize their profit and achieve business objectives. But technological advancement has
both advantages and disadvantages that can impact final results of the organization (Byukusenge,
Munene and Orobia, 2016). One of the main advantages of this factor is that it helps hospitality
industry organization in getting a better understanding of their customers, their needs and
preferences which further helps then in achieving their main business objectives of providing
best products and services to their customers. But it also has some disadvantages as well. One of
the main disadvantages is that adaptation of new technology for business can be quite costly
because and can increase operational cost such as implementation cost, providing training to
employee for usage of new technology is another expenditure associated with advance
technology that can impact achievement of business objective. Similarly, excessive usage of
mobile technologies also has its own advantages and disadvantages. One of the main advantages
that has in achieving business objective of enhancing customer base is that with the help of
mobile technology organization engage with their customers in a much easier manner. Whereas
it has some disadvantage as well such as usage and maintained of mobile technology is quite
complex and costly because of which it can become a bit difficult for organizations to achieve
their desired business objectives in a better manner.
P4 Discuss about the various innovation conceptual framework as well as approaches used in
the organization.
Innovation is based on the concept that mainly introducing a new thing to the global world.
Generally, it is taking place to offer various type of product as well as service to potential
consumer (Gomezelj, 2016). This is consider as new way of doing in regular basis, identifying
the unique better combination of various production elements.
Eco-Friendly is consider as innovation in the hotel enterprises which always attract the
client and grow their business. Many people prefer to herbal and econ-friendly materials only. In
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recent years, new innovative business initiative and pressuring all hospitality industry to
minimise their process.
Eco-friendly hotel harmonize with nature
It is consider as innovation for hotel enterprise that offers a harmonize environment to the
existing potential customer. Generally, it will be established the relaxed areas with managing and
controlling eco-friendly practices. Eco-friendly hotel also committed towards the different
process with considering natural resources.
Eco-accommodation which help for reducing consumption of raw materials
It is absolutely true that eco-friendly accommodation that always support to minimise the
consumption of raw materials. It is one of most common positive aspects for implementing the
econ-friendly concept within organization (Oskam, Dekker and Wiegerink, 2017). Furthermore,
it can perform the different action such as recycling the rain water, use sustainable item prove the
caring attitude of hotel towards nature.
Eco-hotel attempt to proactive environmental policy
The green hotel which take proactive environmental policy which help for adopting by
guest, staff member. In this way, it may encourage or inspire the staff member to follow the
policy in proper manner. This will help for maximising the certain demands of business across
the world.
In above discussion, it has been understanding the concept of eco-friendly hotel which
providing the best quality of good and service in global marketplace (Marasco, De Martino and
Morvillo, 2018). The management of hotel always select the better healthy green furnishing,
cleaning items for decoration and promote the natural conscience while adopting eco-friendly
innovation concept or approach in the hotel enterprise.
M3 Determine the different type of innovation conceptual and significant approaches within
enterprise.
In hospitality industry, it should include the different innovation concept and approach that
will be implemented on the organization. Afterwards, it can be implement process innovation.
Market innovation and logistics innovation (Oskam, Dekker and Wiegerink, 2017).
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 Product as well as service innovation: in sustainable growth and development, it consider
herbal or eco-friendly items which providing the better quality of product or services. In
order to achieve the remarkable bottom line but require to strategic development in term
of innovation.
 Process innovation: New enterprise is providing the new way to create service by
hotelier, offering to the customer. Afterwards, it will be adopting the unique delivery
process which become easier for consumer to access information. Hotel organizations
upgrading their flow of work process while considering modern technology such as
automated service (Joshi, 2018).
 Market innovation: It also promoting the various activities which plays important role for
organization. This innovation will establish the connection with customers, new hoteliers
are adopting new mode of communication which may specify the strategies partnership,
increases the brand value in global marketplace.
P5 innovative within hospitality, which identified the market potential and their feasibility to
take into global world
In hospitality industry, organizations are offering the necessary environmental benefits,
advantage. Sustainability within hospitality that also prove to be more profitable in long term
growth and development (Oskam, Dekker and Wiegerink, 2017). It always attracting more and
more customer while owning or managing the hotels that have access to large number of
practices. In this way, it will make an eco-friendly environment.
In currently, there will be required for hospitality organizations to promote the innovation
and creativity within enterprise activities. It help for increasing the imperative demand of client
in global marketplace. Afterwards, it also increasing the business performance, efficiency and
quality of product as well as service (Oskam, Dekker and Wiegerink, 2017). Sometimes, it is
very creative which involve the employee generating new idea. In this way, organization that are
taking initiatives to go green and adopting the trend to become environmentally friendly for good
purpose.
Role of innovation in product and service within hospitality industry in marketplace.
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In global marketplace, eco-friendly innovative business idea that always encouraging to
quite the carbon footprint and adopt herbal items (Oskam, Dekker and Wiegerink, 2017).
Sometimes, it also offering training program for employee where they can easily gear up towards
natural preservation. It may prefer to build the property from green resources and sustainable
items. Afterwards, organization is to find out the suppliers those are using the suppliers of raw
materials such as hardwood but eco-conscious hotel is taking all essential efforts to build the
green philosophy. This is consider as great innovation that always supports for business owner to
establish the position of organization in global marketplace.
Innovative concept related to eco-friendly hotel in marketplace, which are completely increasing
the travel trends. This will help for promoting the enterprise to drive the economic factors and
evolving from the on-trend hotel commodity (Gursoy, 2017). The become feasible for hospitality
industry to increase the demand of eco-friendly product, service among consumer. They can
easily attract towards better quality of product as well as service. The innovation always inspire
or motivate the staff member, consumer to enhance business capabilities in global world.
Moreover, it has completely changed the living trends of consumer where they can use luxury
service from eco-friendly hotel. In order to build the positive perception towards living space in
hotel enterprises.
For Example- when targeting the more consumer towards eco-friendly hospitality
industry which require to consider CRM system which help for providing the benefits, advantage
of enterprises (Njoroge, Anderson and Mbura, 2019). It mainly involved for increasing
personalized service, improve customization, response towards consumer needs. Another way, it
also understands that become feasible for hotelier to adopt the CRM system while providing
herbal, eco-friendly item and service.
Evaluate the feasibility of concept
The feasibility study is consider as important concept that help for identifying the current
market position of business (Oskam, Dekker and Wiegerink, 2017). Furthermore, it help for
analysing that how eco-friendly innovative idea supports for hospitality industry in global
marketplace.
Porter’s Five force model
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