Contents

1. A conceptual and dynamic approach to innovation in tourism"SMEs’ distributed innovation model and tools for it in tourism business”

2. Contents • Background: developing demand driven practical based innovation services • Distributed Innovation: what it is? • Phases of an innovation process • Examples of some tools used in development of services/tourism business: • Idea generation • Internationalization, • Mentor, • Service design • Idea evaluation “Future products and services” • Self assessment and Innovation management • Lessons learnt

3. Background – developing demand driven practical based innovation services • 2001: Strategy and innovation model for an entrepreneurial forest owner (dissertation) • 2004: Research and Innovation Manager – activity starts: active search for innovation ideas and their implementation via networks • 2006: Long term agreement - SavoniaUoAS, Oulu and Kuopio Universities 2006 - 2007: “Enthusiastic and learning Eastern –Finland – project (testing): • Regional Innovation Strategy, helping SMEs in innovation process • 2008 - 2010: University network’s innovation services –project: • University network based innovation service products; Pedagogical models, User innovations • 2008 – 2009: A Model for Developing the Entrepreneurship Skills in Degree Programme in Agriculture and Rural Industries • The Centre of Excellence: A Certificate got from Ministry of Education in Finland, • 2009 year of Creativity and Innovation in EU • INNO-FOREST (2005 – 2007) was chosen as an example of best practice in the field of creativity, innovation and entrepreneurship -> HOW THE UNIVERSITIES CAN SERVE BETTER SMEs IN THEIR INNOVATION DEVELOPMENT PROCESS

4. Distributed innovation - what it is? Local network Global network Customers KIBS Globallydistributedscientific and applied knowledge centers Suppliers SME and it’sexternalsources of knowledge Service providers ResearchInstitutions University Researchers Cooperativecompanies Otherexperts Universities Teachers and students Personalconnections of owners and workers Differentkind of tasksdone as part of coursesorthesis

5. Open innovation

6. Research Development Firm boundaries Research projects Markets Chesbourgh, 2003

7. Example, key questions in different phases E N T E R E X I T Portfolio Review Phase Review 1 Phase Review 2 Phase Review 3 Phase Review 4 Current Product Support Idea Generation Phase 1: Concept Investigation Phase 4: Post Release Phase 3: Development Phase 2: Feasibility • Does the idea fit roughly with our strategy and resource availability? • If yes, then • concept document • approved • & sub-team allocated • Does the product make sense from marketing, technical & financial perspectives? • If yes, then • concept • approved • & full team • allocated • What is the product spec? • Can we develop it within budget and schedule? • Can we produce it at the required cost & volume? • If yes, then • prototype • approved • & full team • allocated • Has the product been fully verified and validated? • Have production objectives been met? • If yes, then • full manufacturing • approved • & sub-team • allocated • Is the product meeting safety, efficacy and business targets in the market? • If yes, then • closeout • approved • & handoff to • product support Professor Rebecca Henderson MIT Sloan School of Management

8. E N T E R E X I T Different types of phases 2. Analysis - problem solving 3. Manage- ment of change 1. Interpretation Portfolio Review Phase Review 1 Phase Review 2 Phase Review 3 Phase Review 4 Current Product Support Idea Generation Phase 1: Concept Investigation Phase 4: Post Release Phase 3: Development Phase 2: Feasibility • Does the idea fit roughly with our strategy and resource availability? • If yes, then • concept document • approved • & sub-team allocated • Does the product make sense from marketing, technical & financial perspectives? • If yes, then • concept • approved • & full team • allocated • What is the product spec? • Can we develop it within budget and schedule? • Can we produce it at the required cost & volume? • If yes, then • prototype • approved • & full team • allocated • Has the product been fully verified and validated? • Have production objectives been met? • If yes, then • full manufacturing • approved • & sub-team • allocated • Is the product meeting safety, efficacy and business targets in the market? • If yes, then • closeout • approved • & handoff to • product support

9. 1. Interpretation • is not directly towards the solution of well-defined problems • This process don’t have a clear end-point, it’s ongoing in time • Activity, out of which something innovative emerges – a new insight about the customer, a new idea of a product, a new approach producing or delivering it • The role of manager has less to do with problem solving or negotiation between interests, rather the role is in initiating and guiding conversations among individuals and groups • The interpretative view is not widely understood or even recognized!

10. 2. Analysis, rational problem solving • In designing a new product, the product development manager first seeks to define a clear objective, usually based on research into customer needs • Then identifies the resources -human, financial, and technical-that are available to meet that goal, as well as constraints on those resources. • He then organizes a project to accomplish the goal. The key is to divide the problem into a series of discrete and separable components and assign each one to a knowledgeable specialist. • The solution is obtained by bringing the components together in some optimum combination as quickly and efficiently as possible. • Managers role leading problem solver or negotiator resolving conflicts

11. INNOVATION SERVICE TOOLBOX In University network’s innovation services –project MENTORS INNOVAATION- STRATEGIES DISTANCE LAB Demand driven search and development of innovation ideas INNOVATION FORESIGHT (RPM) KIBS INTER- NATIONA- LISATION SESSION IDEAN EVALUATION PROJECT PREPARATION

12. Example of Idea generation • Innovation session for tourism company • Invite participants: representatives of customers, experts in marketing, technology (e.g. software), financing, recreation services, travel agent, tourism development organizations etc. • 2) Programme for session: • Getting to know each other • Warming up • Different kind of tasks to create new ideas in multidisciplinary team • Summarize -> pick up the new ideas and start project planning

13. Example of Internationalization Example company Vanamola in Finland, Joroinen Currently customers from Germany (camps for young ones, hunting/fishing trips, agritourism) Goal is to develop more services for customers, e.g. eco golf (green golf) and find customers from several other countries Dutch trainee made Marketing and action plan, which included new tools for marketing strategy (Molen van Royen; Pine & Gilmore) Searching for another trainee to put marketing in action

14. Example of mentor Innovation mentor in tourism company Teacher studies the innovation idea of the tourism company and defines how to take the students to work in it as part of their course E.g. background information of eco tourism, making a profile of eco tourist and preparing a marketing plan to reach the potential group Students do the tasks and report the results to the company Important to define the learning goals (theory and practice)

15. Service design in tourism “It aims to ensure that service interfaces are useful, usable and desirable from the client’s point of view AND effective, efficient and distinctive from the supplier’s point of view.” (Miettinen, Koivisto 2009) E.g. tourism company could create clear, consisent and unified customer experience with following tools: Customer journey = think how the customer perceives and experiences the service from the beginning to the end Touchpoints = check ALL the spaces, objects, interactions etc. what the customer will meet when using the service: advertising, web pages, booking, coming in, using the service, paying, leaving, after sale

16. Idea evaluation ”Future products and services” = tool for testing the market potential in as early stage as possible Real customers can study the product or information about the service and their opinons are collected systemically Market research together with exemplifying happening: e.g. medieval festifal -> build the athmosphere where potential customers are, give them basic info and make short question how the feel about that service

17. Future products Concept- new inventions for customers evaluation New inventions in the supermerket (CM Kuopio Kolmisoppi spring 2010) 200.000 customers/month A real market test Customer can buy Feedback for inventors Students running

18. Self assessment • Innovation process can be managed by means of quality approach • E.g. Imp3prove

20. Imp3rove process

21. Lessons learnt • Consider end user benefits, i.e. customer’s customer needs and benefits • Innovation process is one key process of an enterprise and it can and should be managed • Keep it simple and goal oriented: to use as straightforward as possible • Listen, ask questions and guide the discussions to continue • Involve world leading experts

22. Contact Dr. Miika KAJANUS Project manager Email: miika.kajanus@savonia.fi Tel +358 44 785 6812 M.Soc.Sc. Sari KARHU Project planner Email: sari.karhu@savonia.fi Tel +358 44 785 6639 Savonia University of Applied Sciences P.O.Box 72, FIN-74100 IISALMI, FINLAND http://kip.savonia.fi