Innovation Concepts and Their Importance in Hospitality Business

This report explores the concept of innovation and its importance to business performance in the hospitality industry, using The Waterside Inn as a case study. It defines innovation as the process of updating and renewing products, services, or domains through new processes and methods. The report analyzes two primary sources of innovation: management-driven and non-management-driven, highlighting the role of technology, consumer demand, and business strategy. It further discusses disruptive innovation, service improvement, and process innovation concepts, examining factors driving innovation such as technology advancements, consumer-led demand, and business strategic factors. Advantages and disadvantages of these factors are evaluated in relation to meeting business objectives. The role and importance of innovation to hospitality businesses are explained through various approaches, including continuous service improvement, service design upgrades, and business model enhancements.

CONCEPTS AND
INNOVATION IN
HOSPITALITY

Table of contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The concept of innovation and its importance to business performance.........................................1
Concept of innovation......................................................................................................................1
2 sources of innovation....................................................................................................................2
Importance of innovation to business performance.........................................................................2
Importance of innovation can be explained in two ways:................................................................2
External: ......................................................................................................................................2
Internal: .......................................................................................................................................3
Technology Advances Innovation – ...........................................................................................3
Consumer Led Demand – ...........................................................................................................4
Business Strategic Factor – .........................................................................................................5
Different strategy formulations for business might create confusions............................................5
The role and importance of innovation to hospitality businesses....................................................6
Disruptive innovation concept: ...................................................................................................6
Service improvement concept: ....................................................................................................6
Process innovation concept: ........................................................................................................6
Continuous Service Improvement – ............................................................................................7
Improving the Service Design – .................................................................................................7
Upgrading the Business Model – ................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovations are the procedure or processes through which a product, service or domain is
updated and renewed though application of various new processes or by introduction of new
methods (Granstrand and et.al., 2020). The Waterside In is the restaurant with rooms to stay in
UK which provides the food and services to the customers by fulfilling their needs and
requirements.
The report will analyse the concept and sources of innovation to be described effectively.
Along with this, importance of innovation business will be analysed and evaluated which will
help in knowing and analysing the benefits gained as a result and the business performance.
Factors driving innovation in organization would also be explained. Along with this, advantages
and disadvantages of factors driving innovation for meeting business objectives will be described
for achieving the profits at large scale. Along with this, 3 concepts and approaches of innovation
would also be explained with the help of three business examples. Organization selected for this
report is The Waterside Inn restaurant that has created a new food / service innovative concept
and want to set this in business.
The Waterside Inn is a kind of restaurant with rooms to stay in for customers.it was
founded in 1972 and its first restaurant was opened in France. It is a type of restaurant that serves
only French cuisine (Rowland, 2018). It is three star hotels as per Michelin Guide located on
Ferry road in United Kingdom. They also provide room to customers for staying overnight and in
order to attract more customers they have designed all rooms in French style.
MAIN BODY
The concept of innovation and its importance to business performance
Concept of innovation
Innovation refers to improve, renew or replace products, processes or services.
Innovation is a process through which products and services are brought up to date for creating
new values. Innovating new products and services helps the company in making and initiating
the base through which all the aspects of creating the product is defined. Innovation basically
means that developing a new concept for reengaging the business so that new opportunities and
best methods of doing a business are identified (Lüdeke‐Freund, 2020). Innovating new business
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will also help in solving many problems which will on large scale invent the basic and major
sources of how the products and services are being supplied in the market to the customers
2 sources of innovation
There are two major sources of innovation:
 Management: management sources of innovation are those sources that helps in generating
need of innovating something new such as process need for bringing improvement within
management is one of the source of innovation. Unexpected failure is another source of
innovation because failing in managing business ad facing unexpected failure many times
give rise to generation of new innovative idea (Arfi and et.al., 2018).
 Non-management: change in market or industry is one of the main non-management source
of innovation. This is because many times market change provide opportunity to create
something new and innovative.
Importance of innovation to business performance
Importance of innovation can be explained in two ways:
External:
Innovation is very important for business performance as this helps in developing the new
products and services for the customers and through that they gain all the business advantages
which are required in the business and this helps in making the business and its various sources
helpful (Jajja and et.al., 2017). The main aim of the business is that it helps in preparing the
business to compete against the competitors in the market and with the help of this the main aim
of the company is that it helps to increase the scale and profit of business. This helps in analysing
the key structure of how innovation in the business helps in increasing the business performance
at large scale. The major part of business can be only enhanced in the form of innovation and this
helps in making the profits as through how customers can reach the new products and services
which are being invented and made available in the market at large scale (Abbas and et.al.,
2017). Therefore, innovation is important in valuing business performance with all significance
in the business environment effectively and skilfully
Internal:
With the help of innovation, the business can bring improvement within their existing processes,
activities and operations that directly help in bringing improvement within overall performance
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of business and further help in achievement of desired goals and objectives. This will also help in
initiating all the possible aspects through which the business performance is up scaled and the
objectives are achieved. Along with this, innovation is important becomes very important
because it helps in enhancing chances of growth and the development in the business (Hussein,
2018).
Factors Driving Innovation in the Hospitality Industry
Factors driving innovation in The Waterside Inn is helping to drive the new food service to
reach the expanded customers and this helps in knowing major changes through innovation
which can be done in the older food items and beverages. There are various factors which help in
driving the innovation for the new service is being explained as –
Technology Advances Innovation –
Innovation is the idea which is generated from the minds of the entrepreneurs and
managers and in The Waterside Inn it became very important for the individuals to innovate
products and services which are helpful in providing best of new service which is the home
delivery service to be made available to the customers at their doorstep. There are various
technological aspects and up gradations which are necessary and this helps in making the
practices of The Waterside Inn business occur more in the market dynamics and therefore there
are various changes which helps the business in forming the scale through which the new service
which is the home delivery service of the food products. The artificial intelligence is the tool
which is used in for the technology up gradation and this helps in valuing the processes of
machines which helpful in making and preparing the products and services at large scale (Grassi
and et.al., 2018).
The Chatbot, Alexa and Siri are the artificial intelligent tools which helps in making the
technology grow and develop at large scale. Along with this, mobile technologies and social
media are the best examples which helps in making and framing the procedures of technology
more fast and will help The Waterside Inn to make the changes which helps in making and
framing the base of how the technologies are helpful in producing and promoting the new
services which is the home delivery of food items at large scale. Multimedia platforms help in
engaging the customers for which they fulfil their needs and requirements as per their demand
for the products and services in the market.
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The advantages of technology advancement are –
 Easier, more effective and faster communication.
 Ability to develop the new approaches which contribute in it innovatively.
 Ability in developing new approaches (Bermudez-Aguirre, 2017).
The disadvantages of technology advancement are –
 Dependency on technology is increased.
 In relation to data and fraud there is security risk.
 Large costs are involved.
Therefore, technology is both advantageous and disadvantageous for the new service which is
being developed at large scale for delivering the products and services in the market effectively.
Consumer Led Demand –
There are regular changes which are being observed of the customers that their needs and
demands changes regularly and on that basis it helps in making and framing the base through
which all possible aspects of changes are observed at large scale and this helps in ensuring the
changes in the profiles of the customers and how they are taking concern of all the factors such
as levels of income, free time and expectations of the baby boomer generation. The Waterside
Inn is responsible for initiating the demand of the customers in the market and for the services
which are to be provided to them (Busse and et.al., 2018).
The levels of income is the major factor which helps the customers in knowing what are
their capacities of affording the services and products which are produced in the market and this
helps in making and framing the scale through which they are able to analyze that the food
services which are being provided to them by The Waterside Inn. There are various other
examples in which the companies are taking concerns of what are the demands and needs of the
customers and whether they are fulfilled or not. For example – Casamia restaurant helps the
customers in taking the food services as per their needs and demands at high scale. This helps the
restaurant in knowing basic forms through which all possible factors of engaging them towards
the products and services are known at large scale.
Advantages of Customer Led Demand –
 More willing in purchasing the products and services of The Waterside Inn.
 Caters in knowing self needs and requirements (Rana and et.al., 2017). Develops the knowledge of market.
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Disadvantages of Customer led Demand –
 Are less adaptable to changes.
 Less knowledge in knowing the demands and needs of the Waterside Inn.
Business Strategic Factor –
Business strategic factors are the aspects which helps the business of the company and
here business of The Waterside Inn to ensure that all the changes are taking place with the help
of the factors such as expansion in the new market along with increasing environmental
consciousness and the skills which helps in making the business more prominent and expand vast
on the scales of what are the changes which are being observed through which all possible
aspects such as the talent management strategies are being improved at large scale (Irtyshcheva
and et.al., 2019). Along with this, ethical business practices are known in which all the factors
such as increasing the business skills through which the food delivery service by means of home
delivery to the customers is made for the enhancement of the customers.
Main aim of the business strategic factor is that The Waterside Inn provides the scale of
progress to the customers and in this the environmental consciousness is also valued through
which all aspects of framing the strategies are known. This helps the business of the company in
knowing that what are the strategies which are to be framed for the benefit and welfare of the
new food service which is being launched. For example – Fordwich Arms restaurant have
developed the strategy of providing the services and food by the riverside so that the customers
enjoy their services and facilities while they incur them.
Advantages of Business Strategic Factor –
 Strategies help in knowing the growth and developmental aspects of the business.
 Quick framework of strategies helps in developing the business more significantly
(Stevens and et.al., 2018).
Disadvantages of Business Strategic Factor -
Different strategy formulations for business might create confusions.
 Business factors changes as per the market changes.
The role and importance of innovation to hospitality businesses
There are various approaches and concepts which are described for innovation and this
helps in knowing what are the various factors which helps the business in knowing the products
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and services better by innovating them and inventing them at larger scale within business
environment (Chatzoglou and et.al., 2017).
Some of the main concepts of innovation that have been implemented within the
Waterside Inn restaurant are:
Disruptive innovation concept:
This concept has directly helped in adding value to overall business of The Waterside Inn
because using this concept they have focused upon creating a completely new food product for
their existing customers. This innovative concept has been implemented by various other
organizations in this industry (Si and et.al., 2020). Some of the main examples of this concept
are: drive through window service of McDonalds was a kind of disruptive innovation because
McDonalds was the first restaurant to introduce drive through window service for their
customers. Starbucks is another organization that had implemented this concept for achieving
success as they adopted cloud computing technology for adding more authenticity to online
purchases made by customers.
Service improvement concept:
it is another innovation concept that has been adopted by The Waterside Inn. They have
developed a new customer interaction platform for making customers aware of new food product
introduced by them. This platform has further helped them in bringing improvement within their
existing services (Virtala, 2020). This innovation concept has been adopted by various other
organizations in this industry such as: McDonalds is one such organization that had introduced
online customer service for the first time in this industry. It had not only added value to
organizations but had also helped the organization in adding value to customers as well as
customers were able to avail desired customer service online. Further it had helped organization
in attracting a greater number of customers and enhanced their overall satisfaction level.
Process innovation concept:
it is another concept of innovation that has helped The Waterside Inn to enhance their business
and added value to overall business in an appropriate manner. Using advance digital technology
and platform for increasing online presence and provide more improved customer service to the
customers. It has further added value to customers as well, as they were able to book their orders
online, if they need to stay overnight then also they can do booking online (Dahan and et.al.,
2017). There are various other organizational explains as well who have used this process
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innovation concept to add value to business and customers. McDonald has adopted this concept
for automating their most of the machinery so that order of customers can be provided in lowest
possible time period. It has directly helped them in attracting more number of customers and
enhance overall quality of final product and service provided to customers.
In order to implement these concept following approaches were implemented by The
Waterside Inn in developing and innovating the new service of food to be delivered through the
home delivery process has helped in knowing the various aspects through which all the ways
through which innovation can be created more effectively and in appropriate manner at large
scale. There are various approaches which are implemented for The Waterside Inn and are
described as bellow –
Continuous Service Improvement –
With the help of continuous process and product improvement, The Waterside Inn helped
in providing home delivery services to customers’ at large scale and this helped in knowing how
new innovative service is taking whole scale of improvement which should be the most
important part of innovation process. The main aim of innovation was improvement and The
Waterside Inn by inventing the new service of home delivery of food items provided slowly and
gradually improved basis through which quick delivery was made possible for the customers
(Hamburg and et.al., 2017). Process improvement was main aim of new service which was being
innovated and this helped in knowing more about factor of how effectively customers are
incurring services which is being invented. Thus, through the process and product or service
improvement this approach was helpful in making and creating value through which The
Waterside Inn is seeking growth and development.
Improving the Service Design –
Improvement in the service design of The Waterside Inn helped in knowing that the
process of the service should not be constant rather there should be changes which should be
taken into consideration at large scale. This will help in making and gaining the base through
which home delivery service to the customer will help in defining its various sources of how
effectively the service can be further improved to gain the biggest advantage of how the things
are measured and analysed at large scale (Patrício and et.al., 2018). The service of home delivery
of food items was improved through the scale of how the providence of the food items is being
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delivered from The Waterside Inn. Improvement in services will gain business advantage as the
customers will be engaged in ordering more food products online or through company website.
Therefore, improvement in service is necessary approach to be considered.
Upgrading the Business Model –
The Waterside Inn to make sure this business and innovative model is taking place in
corrective manner should take concern of the latest updates and changes which can be adopted
for making this business model more effective and efficient at large scale and by helping this,
main aim of restaurant will also be provided effectively and in large manner for it to concern the
service which is being delivered to customer at large scale in an effective manner (Lounsbury
and et.al., 2019). Up gradation is done through technology and various other technical aspects
while innovation in the product. This will help in making and innovation for the process through
which all the factors are being considered for good to customers and helps in delivering them
what is needed to them. Thus, up gradation in the business model should be done in an effective
and innovative manner by following the significant ways.
CONCLUSION
Thus, it is concluded from the above report that concept and sources of innovation were
being described effectively. Along with this, importance of innovation business was analysed
and evaluated which helped in knowing and analysing the benefits gained as a result and the
business performance was also being evaluated at large scale. Factors driving innovation in The
Waterside Inn restaurant with the examples of other restaurants were also being described. Along
with this, advantages and disadvantages of factors driving innovation for meeting business
objectives were being described for achieving the profits at large scale. Therefore, innovation of
the new service or the home delivery of the food products was being effectively evaluated and
signified for being signed at large scale. The main aim of Waterside Inn is that it helps in
knowing that the innovation of the new service helped in analysing needs and requirements of
customers and through that how the business outgrew in market while adopting the changes at
large scale. This has helped in knowing that business growth and development can be helpful in
knowing that major changes can be drawn for purpose of how the new service is took charge of
the business factor and in what ways main aim of The Waterside Inn is profitable in making and
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initiating business to grow with this purpose. Lastly, it has further been concluded that there are
many different kinds of concepts of innovation and if those concepts are implemented in an
appropriate manner within business then it can directly help in adding value to customers as well
as to customers.
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REFERENCES
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