Business Innovation Strategies for Hilton Hotel: A Detailed Report

This report, focused on managing innovation in the hospitality sector, analyzes strategies for Hilton Hotel to maintain its brand image. It explores industry trends, including technological advancements, and identifies innovation requirements for 2020 and beyond. The report examines potential innovations such as robotics, virtual reality, and personalized rooms, ultimately selecting personalized rooms as the most promising. A detailed roadmap is provided to assess the feasibility of implementing personalized rooms. Porter's five forces are used to analyze the competitive landscape. The report concludes by evaluating Hilton's capabilities to adapt to change and discusses how the selected innovation aligns with consumer demands for luxurious and personalized services. The assignment is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

MANAGING
INNOVATION IN
BUSINESS (CW2)

EXECUTIVE SUMMARY
In this report, there is discussion about strategies which has to be followed in order to
manage innovation. This report is based on organisation of hospitality organisation i.e. hotel
Hilton. Hotel Hilton provides services in different parts of country and have good image in
industry. So in order to maintain same brand image it is essential to launch new services, so
consumers remittance is possible. In hospitality sector, there are many changes which are taking
place such as technological changes and other innovations. Hence in order to make good and
positive image in the mind consumers Hotel Hilton has to launch new service. So in this research
initially discussion about different innovations which can be done by hospitality organisations in
2020 or beyond it. With understand these innovations, different ideas for Hotel Hilton is
analysed in order to get positive impact on image. Robotics technology, virtual reality and
services of personalised room is analysed. Out of these technology, best is selected i.e.
personalised room.
In order to make this launch successfully and analyse feasibility of idea, there is
discussion about road map which is path through which feasibility of personalised room is
analysed. There are different steps which has to be considered in order to successfully launch
innovation idea. With completing road map, it is identified by managers of Hotel Hilton that idea
of personalised room is best and favourable in all context. So capabilities of Hotel Hilton can be
evaluated to dealing with changes in better and effective manner. The purpose of this report is to
collect the innovation information about the history of Hilton Hotel and its performance or
capabilities.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION, PURPOSE OF THE REPORT AND STRUCTURE.....................................1
FUTURE OF INDUSTRY 2020 AND BEYOND..........................................................................2
ORGANISATION'S INNOVATION REQUIREMENTS 2020 AND BEYOND..........................4
BUILDING THE FUTURE INNIOVATION CAPABILITIES FOR THE ORGANISATION....6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION, PURPOSE OF THE REPORT AND STRUCTURE
Innovation refers to the process in which new idea, creative thoughts, new imaginations,
etc. are transformed as per current market. These days, there is difference in demand of people,
so it is important to understand changes which are taking place in external market (Winterhalter,
Zeschky and Gassmann, 2016). Managing innovation refers to the process through innovation
operations are performed in order to understand changes which are specific and relevant in
context of current market. Innovation is not one night process, there is requirement of proper
planning through which it is easy to apply changes in better and effective manner. This report is
based on hospitality industry organisation i.e. Hotel Hilton. This is the hotel which provides
services in all over the country (Aalbers and Dolfsma, 2015).
In this research, there is discussion about different innovation which Hotel Hilton can
done in compete in industry. Afterwards most suitable innovation is chosen and provide road
map for it. This report focus on strategies through which innovations can be managed and
positive results can be achieved. So with this report, information how to conduct innovations can
be done. This helps learner to get knowledge about scope of innovation in hospitality industry
and growth prospects for Hotel Hilton. The purpose of this assignment collect information and
the brief innovation history of Hilton Hotel and performance or abilities.
This report is structured under different heads to get complete and relevant information
(Agarwal and et. al., 2015). Firstly introduction is provided which provides complete information
about what will be discussed in assignment, about company, etc. Next section is about future of
the industry up to 2020 and beyond it in this there is discussion about different innovations that
Hotel Hilton can do. In next section, requirement of innovations up to 2020 are analysed. Best
innovation is selected out of above mentioned strategies. In this section road map is prepared for
managing innovation. At last conclusion is provided which provides summary of all the report
activities.
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FUTURE OF INDUSTRY 2020 AND BEYOND
Hospitality industry is one of the biggest industry where scope of growth and
development is wide. Hospitality industry includes providing services related to food and drink
services, theme parks, banquet halls, lodging, accommodation, transportation, etc. These days,
there is more trend of travelling among people, so requirement of hospitality services enhances.
Business meeting, education tour, family trips, trips, etc. are conducted, so people requires good
place for residing, good quality of food, etc. These days, there are may changes taking place in
hospitality industry such as trendy interior, various cuisines, etc. In case of accommodation
services as well, there is different in demand of consumers (Andersson, U., Forsgren, M. and
Holm, 2015). There is requirement of different rooms as per purpose and people for which they
are working.
In next coming years, there is requirement of more changing through which luxurious and
leisure services can be provides to consumers. As compared to current trends, there will be
change in staid lobbies space. It will be used for multi purpose such as tech- lounges, business
centres, etc. hotel is the organisation, where there is use of more resources such as water,
electricity ad other natural resources. Hence by 2020 there will be trend of using natural
resources and organic substances. By 2020, hotels will invest more in fitness equipments through
creating correlations them with guest rooms. This provides easy and quick services to clients.
In 2020, there is successful launching of 3D printing, virtual reality and artificial
intelligence. This makes best use of technology and activities are performed in better and optimal
manner. With use of these techniques, it is easy to conduct activities related to business. In 2020,
people will more emphasise on their health services (Armisen and Majchrzak, 2015). Hence in
near future, there is requirement of more specific services according health of individuals. In
order to provide it, it is important that consumers has to be provide their complete information
related to health. In current years and in coming years, there is requirement of more sustainable
activities. Hotel has to more more sources through which renewable energy can be generated and
consumed.
After 2020, there will be use of robotics technology. For instance: food is delivered to
room by robots, so it is easy to provide best services and if any information is stored, it can be
used properly. In near future people will be more choosy, so hotel industry has to provide
services which are according to consumers requirement. Apart from this as requirement of
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hospitality industry increases, then in this case it will be more unique perks which makes
consumer satisfied (Chesbrough, 2017). This includes providing free daily wines for taste
purpose, sorted list of songs as per purpose of consumers for residing at hotel. So it is clear that
till 2020 and afterwards it, there will many changes which are specific for providing be services
to consumers. These days, people want full return of their money in terms of luxurious services.
In order to maintain good brand image, organisations which are dealing in hospitality services
has to accept them.
Porter's five force
Porter's five model was developed by Michael Porter in 1979 this is an important tool for
the business to strategies planning.
 Threats of new entrants when a new industry is establishing in the economy to compete
with existing industries, the competition is very high relatively as now chines company's
are acquiring the market with new products which is a threat of competition for Hilton. In
such cases the companies should expand their research and development to analyses
customers demand which is cost effective, Hilton is well known organization so it faces
low competition because it has already build its goodwill and loyalty in the minds of
customers.
 Bargaining power of suppliers suppliers are the sources from where a company get its
raw materials. the bargaining power of suppliers is low for Hilton because it has large no.
of suppliers. The availability of suppliers is important in switching decision, less
suppliers will have more power over industries. Sometimes Switching to different
suppliers can be a choice of company due to specialization and effective cost.
 Bargaining power of buyers The increase in technology impacts the bargaining power
of buyers to switch where they are satisfied. bargaining power is high for Hilton because
the power is in the hold of consumers, consumers have the power to switch to substitutes
available to them which are cost effective. Consumers can pressurize the companies to set
reasonable prices to retain them. Buying power is low when the no. of buyers are less but
when the ratio is more it affects the profit of companies. Hilton can reduce the buyers
power by promotions and differentiating their products and services from others and can
attract customers by offering them discounts.
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 Threat of substitute products substitute products are the products which are available to
the customers with the presence of similar goods and services, The threat of substitution
increases when the price of similar product changes. For Hilton the risk is high, when
there are numerous organization and they offer similar services at affordable prices. To
maintain this gap company can provide with latest services. Higher the switching cost
lower the chances of substitution. Threat of substitution can be divided into local and
niche segment.
 Rivalry among existing competitors this defines high competition between industries
and the no. of competitors available in the market. Every brand has its uniqueness which
differentiate the brand from others in terms of performance, features, cost, and durability
of products. The competition is high for Hilton and to cope with this it is important for
this organization to hold its position in the market by offering quality services at
reasonable prices.
ORGANISATION'S INNOVATION REQUIREMENTS 2020 AND BEYOND
Hotel Hilton is the organisation which has good brand image in industry because they
provide services which makes consumers satisfied in terms of luxuriousness. This is the
organisation which is innovating new and technical changes regularly (Ciabuschi, Dellestrand,
and Martín, 2015). As there are many other associations such as Crown Plaza so it is important
to accept changes which are happening. Managers of Hotel Hilton have knowledge that these
days consumers have complete information about price, facilities, locations, offers, etc. of
consumers which are offered by hotel, so they can easily compare it. Consumer avail hospitality
services due to different reasons such as family trip, dinning out, office vacations, etc. Then in
this case consumers looks for new service offered by hotels. So it is important to conduct
research for analysing changes taking place in competitor's policy.
In order to make long term relations with consumers and maintain sustainability in
industry, it is important for managers of Hotel Hilton to innovate new services for consumers.
There is requirement of new and innovative approach through staying experience of consumers
gets improved (Demirkan and Spohrer, 2015). Hotel Hilton is the organisation which have new
and innovative environment so it is easy or them to communicate with changes which will take
place. Changes in demand of consumers are very frequent. It is important to communicate
changes which are specific and significant for understanding changes. As per research, it is
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identified that 55% of people extend their trip because they want to spend leisure time. So
managers of Hotel Hilton has to accept new and innovation approach through which they can
satisfy their consumers. These days, there is requirement of personalised relations with
consumers, this makes familiar environment at Hotel and in case of any issues in services, so
communicate freely (Dodgson, 2018). When consumer provide feedback related to new
innovation or improving services, then managers has to take action for getting positive results.
There are three innovations which Hotel Hilton can implement, these are discussed as under-
Virtual Reality- Virtual reality is formed with the help two words virtual and reality.
Virtual refers to near and reality refers to what is experience by individuals. Hence virtual reality
refers to the experience which individual face activities through their nearby. In technical terms
virtual reality refers to three dimensional computer environment which is experienced by single
individual. Virtual reality is use of computer technology to create simulated environment (Hotel
Technology 2020: What will the hotel of the future be like?, 2019). These days, there is more use
of virtual reality for performing business operations. In case of Hotel Hilton, virtual reality can
be used for providing training to workforce. As there are many changes which are taking place in
external market such as technological changes, so with the help of virtual reality, it is easy for
employees to learn by analysing things by near. So learning is easy and it can be repeated for
number of times.
Individualised rooms or personalised rooms- In current market, consumers chose their
hotel, flight, rooms, destination, etc. on their own (Epstein, Buhovac and Yuthas, 2015). This is
because they want to enjoy leisure services through hospitality. So Hotel Hilton can innovate
type of their rooms through providing personalised rooms. These are the rooms in which control
on different activities of room are under their mobile. Under this accessibility of light, AC,
window, door, etc. can be done by consumers through their mobile hones. This is easy for
consumers to perform activities and enjoy hospitality services at its best (Hotel Technology
2020: What will the hotel of the future be like?, 2019).
Robots technology- Robot is the machine resembles like human beings and performs
daily activities automatically. This is the major change that can accept by managers of Hotel
Hilton in order to provide best services to consumers ( Ferreira Rebelo, Silva, and Santos, 2017).
In case of Hotel Hilton, managers can use this technique for providing frequent services to
consumers. With use of robotics technology, there is requirement of lots of funds but this is long
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term investment and it is easy for consumers to store their data and get appropriate services (The
Future of Hospitality: From Then To Now, What’s Next?. 2019).
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Roadmap- It indicates to a tool that is used by the organisation for the identification of the
problem and issues that consume time. It is also used for determining the markets or recent
trends that are running in the related industry.
BUILDING THE FUTURE INNIOVATION CAPABILITIES FOR THE
ORGANISATION
From the above discussion, it is identified that Hotel Hilton has opportunity to deal with
changes which are specific and relevant in context of change as per external market. In order to
sustain long term in industry, managers of Hotel Hilton has to make some innovation regularly
because there is much competition in current market. From the above discussion, it is identified
that concept of individualised or personalised room is best. Managers of Hotel Hilton has to
make strategy so in 2020 they can add value in their services through personalised room
(Harhoff and Lakhani, 2016).
Innovation can not done without proper planning related to training, financial
requirements and other resources. So road map is prepared for it. This is the path through which
it is easy to plan innovation by analysing different factors. Road map for innovating personalised
room is discussed as under-
Suggest- First step in road map of implementing personalised rooms is to suggest. There
is requirement of some suggestions regrading successful implementation of individualised rooms
at Hotel Hilton. In order to provide more comfortable services to consumers, managers of Hotel
Hilton has to try for making services more leisure (Herrmann, and Herrmann-Nehdi, 2015).
There is much competition n current market, so idea of personal room is generated. With the help
of this technique guest at Hotel Hilton is able to perform activities through which they can
control room facilities at their own. Guest are bale to control light, AC accessibility with their
mobile phones, so they do not have to come take use of switches. By providing facility of
personalised room in 2020, Hotel Hilton is able to achieve good brand image and compete with
other associations.
Reason- After suggestion, reason of implementing changes is analysed. This makes clear
understanding about understanding to launch new service. Reason behind implementing this
change is that there is requirement of more comfort which is specific and relevant in context of
change. For instance guest is sitting at bed and they want to switch on AC, then in this if
personalised rooms are provided, then consumer are able to operate it by merely sitting and able
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to access it. This is beneficial for Hotel Hilton to conduct activities in better and relevant manner.
These days consumers needs some new and innovative services, so Hotel Hilton is able to make
good image in industry and maintain long term relations with workers (Jansen, 2017).
Impact of change- After analysing reason of launching personalised room, changes due
to which are analysed. There are some changes occur in working style of Hotel Hilton with
providing personalised services. Some changes which occur due to new featured personalised
room are as under- Research and development- There is requirement of proper research and development
through which it is easy for Hotel Hilton to perform activities for implementing changes
in appropriate manner. There is requirement of resources for implementing new change.
Research has to be done related to availability of resources, cost for implementing it
(Kumar Basu, 2015). This is important to conduct survey related to success rate of
personalised room by taking reviews of consumers. It is important to communicate with
employees regarding change in services. Required resources- innovation in services requires implementation of new change which
makes innovation in effective and relevant manner. There is requirement of tangible and
intangible resources such as technical advise, financial resources, employees, etc. With
the help of joint efforts of these resources, it is easy to launch technical rooms in
appropriate manner. Technical skill required- Launching personalised room requires technical advise such as
how to access it on consumer's mobile phone (Rakthin, Calantone and Wang, 2016).
There is requirement of a software which has to be installed in guest's phone. So there is
requirement of technical advisor. Managers of Hotel Hilton can hire IT personnel as full
time employees because in case of fault in accessibility at personalised room, assistance
is required. Legal aspects/ compliance- there is requirement of some legal regulations to be fulfilled
in order to successful launching new service. When new service is added at Hotel Hilton,
then it is important to refer it at license. This makes services of personalised room
authentic and reliable. If legal aspects are not fulfilled properly, then there are
possibilities of interference of legal parties which affects brand image of Hotel Hilton in
negative manner (Winterhalter, Zeschky and Gassmann, 2016).
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 Cost of change- innovation is time as well as cost consuming proper, there is requirement
of different resources such as employees, maintenance, advisor, application for
consumer's mobile accessibility, advertisement, etc. so in this case there is requirement of
some financial assistance (Scuotto and et. al., 2017). In order to launch service of
personalised room, there is cost of around £400. there are possibilities that consumers are
not ready to avail this services, so in initial days managers has to offer discount for such
services. This is cost for Hotel Hilton in marketing and making service familiar among
guest.
Feasibility- feasibility refers to the process through which it is easy to understand
changes which are specific and relevant for conducting business operations. Innovation plan is
done for making long term relations with consumers and achieving competitive environment. So
it is important to measure feasibility of personalised rooms in context of current market.
Managers of Hotel Hilton has to check feasibility in context of finance, operations and technical
aspect. As per financial aspect, this innovation cost around £400 but consumers pay £1200 for
such rooms. So in case of financial assistance, this innovation plan is feasible. So managers of
Hotel Hilton can go for it. Operations feasibility is also good because this personalised rooms are
easy to operate (Sund and et. al., 2016). This application is easy to operate with installation
software in consumer's mobile phone. So this makes fruitful to launch feasibility study.
Technical feasibility is also analysed. In order to implement personalised room concept at Hotel
Hilton, there is requirement of technical assistance. In order to achieve it, managers of Hotel
Hilton hire advisor which assist in providing best services. There is ease in performing technical
assistance to consumers in case of any issue.
While studying feasibility study, it is clear that launching is personalised room is
feasibility in current market in context of financial assistance, operations and technical aspects.
So it is easy to launch and get positive outcome as consumer satisfaction and getting competitive
advantage in hospitality industry.
Approval process- After conducting feasibility study, there is requirement of approval of
board persons. Approval is required for successful launching of personal room. There is group of
directors whose approval is required for making changes in working style at Hotel Hilton. This is
important for execution of planned activities (Vanhaverbeke, 2017). In order to get approval of
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