a) What are the benefits of organisations embracing innovation? b) What are some specific examples of innovations that the tourism and hospitality industries can adopt during the Covid-19 pandemic, and what are the advantages and disadvantages of these innovations currently?
a) What are the benefits of organisations embracing innovation? b) What are some specific examples of innovations that the tourism and hospitality industries can adopt during the Covid-19 pandemic, and what are the advantages and disadvantages of these innovations currently?
a) Innovation is a process by which an organization develops, applies, launches, and manages new ideas. The new ideas undergo a cycle of development, maturity, and decline. During the application and maturity phases, the company is able to reap the benefits in terms of increase in revenue, increase in market share, higher profit margins, and so on. However, it will not be long before the competition catches up. Therefore, it is essential for an organization to be a "learning" one, that is, one that constantly reads the customer behavior and feedback and quickly incorporates the changes as desired.
Innovation can be with respect to products or processes. It can also relate to adoption of technology or reduction in costs. Thus, it is clear that innovation needs to be customer-centric and should bring benefits that outweigh any incremental costs in the implementation of the innovation.
Every organization benefits from innovation. This is true because business today is extremely competitive, and survival alone cannot be a company's objective. Increase in market share and increase in profit margins that companies seek can be achieved only by innovation. An organization needs to differentiate its offering by constantly innovating its products or services to beat the competition. The culture of innovation should be embedded in the organizational processes.
Some of the other benefits of innovation are as follows:
1. It allows the company to tap new markets by offering differentiated products tailored to local requirements.
2. Innovations, especially in production processes or adoption of new technology, improve capacity utilization so that the return on capital assets will improve.
3. Supply chain management becomes easier with process innovation and greatly reduces costs.
4. Organizations that encourage innovation usually allow an intrapreneurial approach, that is, a dedicated unit that focuses on developing new products and assessing their feasibility.
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