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Strategy and Innovation Management in Tourism and Hospitality Industry Dr. Ben K. Goh

INNOVATION & CREATIVITY

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Write a one sentence definition of innovation.

What is the difference between creativity,

invention and innovation?

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is thinking up new things Creativity

Invention

Innovation is the creation of new things from new ideas

is doing something in a new way

創造力

革新

發明

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INNOVATION Innovation is the process of making changes, large and small, radical and incremental, to products, processes, and services that results in the introduction of something new for the organization that adds value to customers and contributes to the knowledge store of the organization.

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INNOVATION – Generic Definitions • Creativity is defined as the tendency

to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.

• Creativity can also be defined as the process of producing something that is both original and worthwhile.

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INVENTION Invention need not fulfill any useful customer need and need not include the exploitation of the concept in the marketplace. Innovation differs from invention in that it is more than the creation of something novel; it also includes the exploitation for benefit by adding value to customers.

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INNOVATION VS. INVENTION • Invention is often about creating something that has yet

to be desired by a customer.

• Numerous inventions never lead to innovation because they are never brought to the marketplace.

• If an invention can be exploited and transformed into change that adds value to a customer, then it becomes an innovation.

• There are many innovations that do not require invention in terms of originality, they just use established techniques and technology to products or services better.

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Innovation = Invention + Exploitation Therefore, innovation can be viewed as the systematic approach to creating an environment based on creative discovery, invention, and commercial exploitation of ideas that meet unmet needs (Bacon & Butler, 1998).

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Taiwan Airlines just announced their invention of an

innovative commercial airplane that can travel at super-

hyper speed. The trip from Taipei to Los Angeles that

used to take 12 hours will now take less than 2 hours!

This invention will fundamentally changed not only the

airline world, but it will change almost EVERYTHING.

You are the CEO of

Hilton Hotel Worldwide.

How will this impact your

business? What are you

going to do?

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INNOVATION AND GROWTH • Innovation is about developing growth.

• According to Drucker (1988), innovation can

be viewed as a purposeful and focused effort to achieve change in (an organization’s) economic or social potential.

• Growth can occur by providing better service quality, cost reduction, cost avoidance, etc.

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CREATIVITY • Creativity is regarded as a key building block

for innovation (Rosenfeld & Servo, 1991) and is an inherent capability in all human beings.

• Creativity is a mental process that results in the production of novel ideas and concepts that are appropriate, useful, and actionable.

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Five phases of creative process: 1. Preparation 2. incubation 3. Illumination 4. Evaluation 5. Implementation

Creativity entails a level of originality and novelty that is

essential for innovation. Although creativity is a fundamental

part of innovation, it is wrong to interchange the terms.

Innovation encourages the further processing of the output of

the creative process (the idea) so as to allow the exploitation

of its potential value through development.

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PREPARATION during the preparation step of the creative process model, an individual becomes curious after encountering a problem. For example, a marketing professional may prepare for a marketing campaign by conducting market research and formulating different advertisement ideas.

潛伏期準備

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While the individual begins to process her ideas, she begins to synthesize them using her imagination and begins to construct a creation – NOT actively try a find a solution, but continues to mull over the idea in the back of her head. from work.

潛伏期

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As ideas begin to mature, the moment of illumination will come that will make it clear

how to put it together. For example, an individual with the task of putting together

an office party may have an idea for a theme while driving home from work.

成型 ILLUMINATION

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After a solution reveals itself, the individual then evaluates whether the insight is worth the pursuit. He may make changes to his solution so it is clearer. He may consult with peers or supervisors regarding his insights during this step before pursuing it further. If he works with clients, he may seek a client's input and approval before moving on to the next step.

評定

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IMPLEMENTATION The implementation of an idea or solution in the creative process model is when an individual begins the process of transforming her thoughts into a final product. For example, during this step, a painter may begin outlining shapes on a canvas with charcoal before applying oil paints to the medium.

實施

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Innovation = Creativity + Exploitation

EXAMPLE: In 1923 television was invented. However, it took decades to set up the broadcasting and production companies before TV can exploit the market. The innovation is how we entertain ourselves. The new flat-screen TV is an innovation that has more direct in its exploitation. It meets existing customer demand for slimmer large-screen television sets. This came about because smaller apartment living could not accommodate the traditional TVs. The desire for large-screen TVs led to the development of plasma and liquid crystal display televisions. The innovation has been so successful that it has resulted in a disruption in the industry, with the old TVs becoming obsolete.

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You need to think creatively, think outside the box….

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The problem: Draw four straight lines through the nine dots without retracing and without lifting your pen from the paper.

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The pages of each volume are exactly 2 in. thick. The covers are each 1/6 in. thick. A bookworm started eating at page 1 of Volume I and ate through to the last page of Volume IV. What is the distance the bookworm covered?

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1/6 + 1/6 + 2 + 1/6 + 1/6 + 2 + 1/6 + 1/6 = 5 inches

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A woman went to a jeweler and said, "I want you to connect these pieces to make a necklace. How much will it cost?" The jeweler told the lady, "I charge $2.50 to break a link and $2.50 to melt it together again. Since you have four corners, it will cost you $20." The lady said, "That's too much. Actually you can do it for $15." The problem, then, is to construct a necklace, breaking and joining only three links. How would you do it?

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$5.00

$5.00 $5.00

$5.00 x 3= $15