Innovation Report: Hilton Hotel's Leadership and Innovation Analysis

This report analyzes the innovation strategies and challenges faced by Hilton Hotel, focusing on leadership and technological advancements within the hospitality industry. It begins with an introduction highlighting the importance of innovation in the competitive market, particularly within the context of digitalization and technological change. The report then identifies key leadership challenges, including sustaining innovation, organizational culture, and personalized communication. It also explores innovation challenges such as technological explosion, data privacy, and the need for continuous technological advancement. To address these issues, the report recommends an innovation framework that includes shifting transactional-based data to event-based data, embracing the mobile revolution, and implementing motivational models for staff. Furthermore, it outlines innovation implementation steps such as research and development investments, brainstorming activities, and new product development. The report concludes by summarizing the key findings and emphasizing the importance of continuous innovation and effective leadership for Hilton's success.

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Integrating Management: Leadership & Innovation
[Type the document subtitle]
9/15/2019
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Integrating Management: Leadership & Innovation
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Contents
Introduction / business case.............................................................................................................2
Leadership challenges......................................................................................................................2
Innovation challenges......................................................................................................................4
Recommended innovation framework.............................................................................................5
Innovation implementation steps.....................................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction / Business case
The large transformation has been identified in the hospitality business, in recent years due to
technological change and introduction of digitalization in the hospitality business. Innovation has
found to be one of the most crucial elements in the hospitality organization, the reason being the
competition has been increased to greater extent and differentiation, new product development
and product innovation is the only opportunity for the hospitality business to grow and sustain in
the competitive global market (Aas & Rubin, 2015). The case considered for the report is of
Hilton hotel innovation case; the company has been selected for analyzing innovation in the
industry as it is one of the most innovative companies 2019, as per the BCG (3.hilton, 2019). The
company has provided use of latest audiovisual technology, use of technology in modern room is
like through infrastructure, lightning, availability of indoor swimming pool, gym equipment,
sauna, outdoor activities, fitness class and dance studio, online banking, online hotel booking,
customer feedback and various other innovative products and services have been offered to
customers. The purpose of the report is to analyses key leadership challenges and key innovation
challenges faced by Hilton hotel so as to provide an innovation framework for the challenges
identified (hilton, 2019).
Leadership challenges
Leadership is one of the crucial activities in an organization, which is responsible for the success
of the company and instrumentation of plan and strategies within the organization. There have
been leadership challenges faced by the Hilton hotel. Leadership challenges include the
challenge related to sustaining innovation, supporting, organizational culture, organizational

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structure and challenges related to organizational internal environment that has to be considered
and potential solution have to be found by leader of the company (Bottani & Galli, 2017).
It has been identified that the Hilton hotel has worked towards the customer feedback in order to
improve the process of the company and understand the customer needs better. However the
interaction was not directly done with stuff, the complaints are generally registered by customers
online or through a form which was found to be having a positive impact on the staff, in case the
complaint is found but the staff is willingly ready to accept the mistake and attempt improve
those complaints. The basic objective of increasing customer satisfaction was also achieved due
to this organizational system implemented. However, this also have a negative impact on the
staff as the complaints by the customers for particular staff may lead to demotivation and staff
may lead to have low self-confidence after reading those complaints. The reason being is
employees of the Hilton hotel are generally highly qualified and they may face feel to talk to
their managers about this and could also be responsible for increase in employee turnover in the
company. This is one of the reasons that the employee turnover in the hospitality industry is high
as some employees feel excessive job stress and fear of losing job or position because of the
complaints registered which may impact the absenteeism, degradation in performance and lower
participation of staff at work (Bruns, 2013).
Another leadership challenge identified recently is personalized communication, which reflects
the challenge of digital capability in the organization as in today’s world everything is
dependable on the click of phone. The dynamic change in the organization affected by external
environment of the company also impact the internal environment of Hilton hotel as the
innovation is much required and the change in the organization is rapid too. Employees could
resist changing, due to rapid change in the job profile and working process in the organization.

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For example, the personalized communication with customers has led to change in
organizational structure and also increase in number of employees in the organization so as to
provide appropriate amount of services through the guest while considering personalized
experience. The key challenge for leaders is to have transitional capability, updated skill and a
supportive mindset that will be able to deliver standard experience digitally and physically for
the guest (Biemans, 2018).
Innovation challenges
As discussed previously, the company has been serving a large number of services globally
while integrating technology and digital isolation. However this is not enough in today’s
competitive market, the reason being these are the basic necessities that have been considered by
every premium hotel brand to be offered to the customer globally and Hilton needs to bring
innovation rapidly in order to sustain in the market (Camison & Fores, 2016).
Some of the key innovation challenges faced by Hilton hotel include technological explosion,
this can be taken as an opportunity for the company nevertheless this maybe challenge for the
company as technology has been found to be rapid which increase the technical innovation need
in the company and repeatedly transforming Hilton hotel into a highly technical hotel room.
Digital development has impacted hospitality industry and greater pace, for instance a challenge
to be always on connectivity (Amabile & Rigolizzo, 2015). It has been identified that the
customer's provision of convenience is through the use of every service through smartphone
where the need for everybody to be connected to the cloud despite locational services. Another
challenge related to the technical explosion is access to information, which reflects integrity of
customer data on large quantity which are to be used for personalized experience offer to the

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customers by the company (Ahlin, 2014). However it has been identified that Hilton has been
under utilizing the available data, which could also increase the risk of privacy and security for
the customers as the focus of the company have found to be increasing hiring of the employees
in the organization with me affect the dynamic capability in the organization but increase the risk
of data privacy. Before it can be said that the technological innovation has been adopted by the
company, but the rapid and advancement in technology could act as a gap or digital challenges
for Hilton hotel (Camison & Fores, 2016).
Recommended innovation framework
After analyzing leadership and innovation challenge is in the Hilton hotel, it can be said that the
challenges are have to be paid attention by the organization in relation to both type of challenges.
However the priority could be given to innovation challenges, the reason being the challenges
like data privacy, availability of connectivity and increase and technological innovation that is
need of new service development is major aspect to be considered by the company (Ding, 2018).
The recommended innovations for organizational challenges identified are
 Shifting transactional-based data to investing in event based data. One of the challenge
identified is the underutilization of data available with the company regarding the
customers and the ability to provide personalized experience to the customers. Through
this recommendation includes that the company can use the data to understand the
customer needs and may attempt to implement to the journey of the customer and to
provide personalized experience in a better way, instead of formulaic way. However, this
shift may lead to transitioning of all the capabilities and infrastructure of Hilton that will
integrate with this shift from transactional to event-based (Coulson-Thomas, 2017).

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 The mobile revolution is another recommended innovation service that may need to
innovate and technological advancement within the hospitality industry. This includes
integrating every service of Hilton hotel through mobile application but the company had
worked on mobile services for booking hotel, check ins and other relevant feedback
services through mobile revolution (twitter, 2019). However this may increase to more
services considering the use of smartphone like unlocking the rooms, online check-in for
not spending time at customer service desk or reception at the hotel while checking in to
the hotels. Selection of priority services by the customer can be done in order to improve
the personalized service for the customers at the time of hotel booking. Motivation to the
staff members (Chou & Shao, 2016).
 The challenge identified was the demotivated staff because of the negative complaints by
customers, through various motivational models implied in the organization the implies
can be kept motivated and instead of communicating with employees regarding the
complaint and the complaints will be reached to the employees through leaders or
managers (Du & Bstieler, 2016). It is recommended to implement direct communication
available for staff member and the customer, so as to decrease the miscommunication
among the complaint registered by customer and the staff, this can improve the
understanding of the staff related to the customer perception as the direct communication
will lead to better understanding of the problems faced by customer (Dewald &
Osiyevskyy, 2015).
Innovation implementation steps
Some of the steps taken to implement the innovation recommended are

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 Research and development investment, it includes implementation of research in order to
find new technologies and advanced technologies so as to keep the process updated and
avoid technical obsolesce. This will also affect new product development for the
company and increase the findings of the customer information, customer needs and
customer expectation through research and development process (Gilson et al., 2015).
 Brainstorming activities, employees of the organization are the best way to generate new
ideas. The reason being service innovation or new product development can be done after
generating the idea that is innovative and if it is coming by employees of the
organization, the resistance to change will also be reduced (Fazlıoğlu, 2019).
 New product development, for which some particular steps can be taken in order to
assess and introduce new service in the organization. The stages in product development
could include idea generation, idea screening, concept development, concept testing,
business analysis, market testing, technical implementation and commercialization. For
example the mobile key and data utilization can be done through the development of
these new services while following the described stages (Huggins & Thompson, 2015).
 Employee motivation can be implemented with the use of appropriate leadership style at
the priority. For instance, the application of transformational leadership style will be
suitable in the situation as the innovation is very rape it in the company. Another step will
be to implement theory x and theory y of motivational theories so as to understand the
employee behavior and improve the employee satisfaction, while decreasing the fear of
communication with managers regarding the complaint, and increase the participation of
the employees in meetings and improve in performance after assessing the customer
needs (ir.hilton, 2019).

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Conclusion
From Hilton hotel innovation report, it can be concluded that the company has been working
towards innovation since years which included product and service innovation. However the
company has faced various challenges regarding the leadership capability and need for
innovation. The company has been able to provide a large number of services to the customers
and the technology has also been integrated while providing services to customers. It has been
identified that the Hilton hotel has worked towards customer feedback in order to improve the
process of the company and understand the customer needs better. However this also has a
negative impact on the staff as the complaints by the customers for particular staff may lead to
demotivation. Another leadership challenge identified recently is personalized communication,
which reflects challenge of digital capability in the organization. Some of the key innovation
challenges faced by Hilton hotel include technological explosion. The recommended innovations
for organizational challenges identified are shifting transactional-based data to investing in event
based data, mobile revolution and motivational models implied.

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References
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Ahlin, B., 2014. Entrepreneurs’ creativity and firm innovation: the moderating role of
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Amabile, T. & Rigolizzo, M., 2015. Entrepreneurial creativity: The role of learning processes
and work environment supports. The Oxford handbook of creativity, innovation, and
entrepreneurship, p.61.
Biemans, W., 2018. Managing innovation within networks. London: Routledge.
Bottani, E. & Galli, B.J., 2017. Shared Leadership and Key Innovation Indicators in Six Sigma
Projects. International Journal of Strategic Decision Sciences (IJSDS), 8(4), pp.1-45.
Bruns, P., 2013. Corporate Entrepreneurship: Innovation and Strategy in large organisations.
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Camison, C. & Fores, B., 2016. Does incremental and radical innovation performance depend on
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services: A modular innovation perspective. Information & Management, 53(4), pp.481-92.
Coulson-Thomas, C., 2017. Stimulating creativity, enabling innovation and supporting
entrepreneurship. Management Services, 2017(Summer), p.26.
Dewald, J. & Osiyevskyy, O., 2015. Explorative versus exploitative business model change: the
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Ding, K., 2018. Platforms, innovation and capability development in the Chinese domestic
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Du, S. & Bstieler, L., 2016. Sustainability, social media driven open innovation, and new product
development performance. Journal of Product Innovation Management, 33, p.55.

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Fazlıoğlu, B., 2019. The E ect of Innovation on Productivity: Evidence from Turkishff
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