Innovation In The Hospitality Industry

886 Words4 Pages
Despite innovations’ key role in the success of service driven organisations (Kotler, 1994 and Kelly and Storey, 2000) suggest that the intangibility, heterogeneity and perishability of services can result in an accidental and ad-hoc approach to innovation, as oppose to the more strategic and systematic approach associated with innovation in manufacturing and product driven firms (Meyer & DeTore, 2001).

Alternately (Ernst, 2002 and Tidd & Bodley, 2002) argue that any firm committed to adopting a structured and systematic approach to the company’s innovation process can achieve successful innovation. In recent years some large hospitality firms have shown evidence of adopting a more strategic approach, through placing greater emphasis on acquisitions
…show more content…
Through a consistent journey of innovation, the company has been strategically transformed into one of the world’s largest hotel companies. IHG’s headquarters now situated in Denham Buckinghamshire, drives innovation to its 12 distinct brands, which span over 5,100 hotels globally. This unique and distinct portfolio of limited and full service hotels was recorded in 2016 as having net revenues of 24 billion (IHG Annual Report, 2017).

IHG employs over 350,000 people worldwide and through its strategic acquisition of leading competitor hotels, the company claims to have attracted some of the best industry talent resulting in greater diversity, knowledge, skills and creativity (IHG Global Careers, 2017; IHG Annual Report, 2016). Tidd and Bessant, (2013) support this opinion and argue that the greater a company’s ability to mobilise such human capital, the greater the companies potential of gaining competitive
…show more content…
Through the building and perfecting of a robust network infrastructure, innovation outputs such as an integrated online procurement and customer relationship management system, is being used to sync key back office functions across the company’s global business environment and supply chain (Radcliffe, 2000). Coincidentally, (Lamming, 2002; Marsh and Shaw, 2000) suggest that innovation in supply relationships can help to facilitate learning within the inter-organisational network. In contrast, (Tidd and Bessant, 2013, pp. 139) argue that the process of networking across organisations is not automatic and can be high risk if not coordinated with great effort. However, MII’s success in integrating core technologies into everyday business practice, has proven to increase speed, raise quality and improve efficiency (Accenture, 2016; Xerox Corporation,

More about Innovation In The Hospitality Industry

Open Document