managing innovation

Topics: Service system, Innovation, Customer service Pages: 4 (2714 words) Published: October 21, 2014

Hartono (2012: 1) defined service innovation as ‘a new or considerably changed service concept, client interaction channel, service delivery system or technological concept that individually, but most likely in combination, leads to one or more new service functions that are new to the firm and do change the service .’ In a competitive business market, innovation is the most important key factors that help its company to make higher profit and survival. Therefore, every business firms are trying their best to create and develop an outstanding service feature over their competitors. So, innovation has become necessary and essential for a business sectors success. In the real World, the service is the critical image of a business because customers will remember that they received professional service that makes them happy through services. Furthermore, service innovation is a part of continuous improvement. This essay aims to analyze critically, discuss the importance of service innovation with theories and examples in hospitality. Furthermore, many service organizations are continuous to find the most effectively and efficiently ways to serve customers. In addition, the business may face some challenges during their innovation efforts. Therefore, this essay also includes identifying the challenges of innovation in the service sectors and how these maybe be overcome. Ottenbacher and Gnoth (2005) stated that hospitality is one of the highly competitive industries in many countries that is transforming continuously. This industry is the largest employers in the World that bringing everyone together in a global community. Thus, Hospitality is a major force that evolves the global marketplace rapidly, not only the industry. Therefore, innovation in hospitality is important to achieve higher quality of services, products, environmental issues and communication technologies interaction. According to Miles (1993), the concept of innovation has been divided ‘4PS’...
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