Category: Innovation

Business model innovation, open innovation and co-creation practices and case studies

Co-creationMarketing 3.0Tourism marketingTourism trends

Approaching tourism 3.0: Destination marketing 3.0

Marketing 3.0 intends to transform the marketing of mission driven destinations towards a more collaborative and innovative system where all stakeholders are empowered to become co-creators and brand ambassadors. By leveraging the inspirational power of mission driven purposes, stakeholders are expected to contribute to the mission accomplishment through the creation or co-creation of stories, experiences and marketing materials.

When drafting a Marketing 3.0 Plan, the mission is the first challenge to be worked out, in cooperation with the local community and other stakeholders to gain their commitment. Further, it has to depict the vision of how the mission accomplishment transforms the destination, what the destination aspires to become. This vision plays the role of a guiding force to engage stakeholders in contributing to the destination development.

In drafting the marketing strategies, the positioning has to be based on the intended impact of the tourism activity on the stakeholder community, for it to be perceived as a positive force in addressing the community’s concerns and aspirations. Ultimately, profit comes from the appreciation of the business contribution to the community well-being. The positioning has to care about the functional, emotional and spiritual needs of the stakeholders.

The communication strategy is based on enabling connectivity and interactivity between stakeholders to satisfy their will to share and spread their stories. Furthermore, the destination platform should train all stakeholders in creating stories and reward them through story contests and reputation management. On the other hand, it is convenient to communicate the evolution of the key performance indicators related to the mission accomplishment to provide feedback on the stakeholders’ efforts.

The product development is based in co-creation of experiences between local suppliers and other stakeholders. In this regard, all the local community members are empowered to create their own experiences through the open innovation system, which are eventually to be customized for every tourist in co-creation with them.

In business development it is necessary to assess the expected value brought by every kind of channel partner and target client. Beyond the direct profits, every partner or client may bring in some kind of strategic value either in the short or the long term.

Finally, there has to be crafted an internal marketing strategy to engage employees and partners with the vision, mission and values in full commitment to eventually turn them into brand ambassadors. Beyond communicating such vision, mission and values, it is crucial that the destination executives embed these values in their leadership style by delivering a leadership experience through their daily behavior to foster cultural transformation throughout the stakeholder community.

The Whitepaper “Envisioning Destination Marketing 3.0” explains this approach in further detail.

What key challenges do you envision when implementing Marketing 3.0 in local destinations?

Business model innovationCollaborative cultureCulture changeInnovative cultureIntelligence

Approaching tourism 3.0: Destination intelligence 3.0

Beyond developing new business models at a local level, it is possible to foster Tourism 3.0 from the regional level. Destination intelligence 3.0 envisions how the practice of collaborative research and innovation is to become a key discipline in sustaining competitiveness and improving the destinations’ marketing efficiency and effectiveness. Further, by fostering collaboration and innovation at a region-wide level, it becomes a powerful change agent to promote this culture down to the local level.

Destination intelligence 3.0 envisions how the current practices in research and monitoring of the tourism markets and destination performance may be improved to keep track of the fast-changing environment and leverage all the collective intelligence available through the existing networks. Moreover, market intelligence systems may be expanded to become open innovation systems to further leverage the collective intelligence of the industry stakeholders in bringing in fresh, new ideas for business model innovations, new products, management practices, marketing practices, etc.

The key idea is to foster collaboration among all stakeholders to both monitor the market and social trends in a deeper sense to better orientate the tourism development, and to innovate in all aspects of the business models to continually improve competitiveness.

The Whitepaper “Envisioning Destination Intelligence 3.0” explains in detail the vision on this new approach to collaborative research and innovation.

In which aspects do you think there is room for further cooperation between DMOs and operators in producing and sharing intelligence data and insights?

Business model innovationCollaborative business modelsMarketing 3.0StrategyStrategy planning & execution

Approaching tourism 3.0: Destination models 3.0

 

The “destination models 3.0 approach” is the one entailing the highest degree of transformation in the destination, not only in its marketing but in its business model and operational rationale. In the Whitepaper “Envisioning destination models 3.0” this concept is explained in full detail, and many case studies are to be explained in separate Whitepapers to better illustrate this vision.

Destination models 3.0 consist of the integration of most tourism businesses within a multi-sided platform which connects local service suppliers with tourists and other stakeholders. This platform is mainly in charge of controlling the service quality of all integrated and associated businesses and managing the marketing activities of the destination. A key element of this platform is the open innovation system, which intends to stimulate the continuous creation of experiences and marketing contents, as well as discussion about innovation in the business model.

They are conceived as collaborative models which intend to leverage the creativity and know-how of all the stakeholder community to gain competitive advantage over their competitors by developing a large network of brand ambassadors who create and deliver stories about the life-transforming experiences that take place in the destination, in order to engage new stakeholders in the pursuit of a mission that addresses the concerns of the stakeholder’s community. They are also triple bottom line models, so long as they account for financial, environmental and social costs and benefits.

The main idea behind this concept is to develop a tourism cluster with a high level of control over the service quality, as well as with urban aesthetic harmony and a spirit of collaboration and innovation among all stakeholders to sustain the destination’s competitiveness and marketing system. This should be applicable to existing clusters, resorts and new developments.

The mission of Envisioning Tourism 3.0 Ltd. is to keep on designing new business model prototypes approaching the Vision of Tourism 3.0 with different levels of complexity.

What kind of destination models do you envision approaching the Vision of Tourism 3.0?

Business model innovationInnovationIntelligenceMarketing 3.0Strategy

Envisioning different approaches to tourism 3.0

 

The evolution of destinations towards the vision of tourism 3.0 entails a sound and ambitious transformation, which is not likely to be feasible in all cases. Therefore, it is necessary to develop many approaches involving a lesser degree of change to also tackle the cases which are less open and flexible to the full transformation.

Hereby are presented the three main approaches involving different degrees of transformation:

  • Destination models 3.0 involves full transformation of local destinations
  • Destination intelligence 3.0 fosters progressive transformation in region-wide destinations
  • Destination marketing 3.0 involves little transformation of local mission driven destinations

The mission of Envisioning Tourism 3.0 Ltd. is to keep on developing these three approaches, as well as to develop new ones to promote and facilitate transformation throughout destinations towards the Vision of Tourism 3.0. This should be a shared challenge to be accomplished in collaboration with the growing community of innovators dedicated to the tourism industry.

Do you envision how to transform destinations integrating the aforementioned concepts?

InnovationMarketing 3.0Open innovation

Key concepts of tourism 3.0: Open innovation

Following the culture of collaboration, the need for constant improvement to sustain the competitive advantage is to be fulfilled through open innovation. This new approach entails leveraging the network of stakeholders to contribute in the innovation efforts in various fields such as marketing contents, product development, new technologies and business model innovation.

To successfully meet all the destination model needs for innovation, it is necessary to engage a large pool of stakeholders in various fields of expertise. For such purpose, experts outside the local community of stakeholders may have to be searched for depending on the required field of expertise. Furthermore, it is convenient to train stakeholders in some disciplines such as business model innovation, to establish a common framework and language that facilitates discussions.

As explained in upcoming White Papers, open innovation systems are to be quite different depending on their scope of influence, whether they be region wide or only for a local destination, whether they are only focused on marketing ideas or encompass other areas of collaboration. The Whitepaper “Envisioning open innovation in destinations” is to explain all possible approaches.

Do you think that open innovation could help to solve other challenges apart from technology development, business model innovation, product development and content marketing creation?

Co-creationInnovationMarketing 3.0

Key concepts of tourism 3.0: Co-creation

One of the latest marketing trends affecting many businesses is the increasing will for co-creation on the consumers’ side. The tourism sector is also embracing such trends, leading to customization of experiences, where the tourists may also use their creativity to design the experiences they want to live in the destination.

Following up with the trend of collaborative consumption, this entails co-creation of the experience between the supplier and the tourist, as it is personalized to the will of the client, who usually has plenty of information beforehand on what he wants to experience.

Furthermore, destinations 3.0 empower tourists to participate in co-creation of marketing contents such as photos and mostly stories. Through the social networks, they are entitled to collaborate in creating all sorts of content to share their life-changing stories with their peers.

What challenges do the destinations have to face when developing experiences through co-creation?

Co-creationCollaborative cultureCulture changeInnovative cultureMarketing 3.0

Key concepts of tourism 3.0: Tourists 3.0, the creative society

The main drivers of the socio-cultural change entailing the aforementioned trends are called the “creative society”, hereby referred to as “Tourists 3.0”. Such tourists are concerned about the impact of the tourism activity on the environment and the local communities, and are driven by the aim for contribution to make the world a better place, and for spiritual fulfillment above other motivations, which makes them the primary target to take into account in mission driven destinations.

Tourists 3.0 are engaged in communities and are very active in social media networks, where they are opinion leaders and change agents. Such networks are becoming the main and most trusted source of information for most consumers who increasingly trust other consumers rather than companies. It is through these social networks that consumers share their knowledge and are to share stories about the life-changing experiences offered in the destinations.

Unlike typical passive consumers, tourists 3.0 are willing to take an active role in their relationships with their favorite brands, through co-creation of products and marketing contents. They want to be active players in the brand’s marketing activities, mostly through the social media networks. They are the ones who hold the community’s trust, and so have the power to decide which brands are to be supported.

In the destination, they look for authentic experiences through which to develop new skills, learn about new realities, cultures, and ways of life, which open their mindset and ultimately change or influence his life. These are the so called life-changing experiences that set destinations 3.0 apart from others.

Beyond developing life-changing experiences, what challenges do you think that tourists 3.0 pose to the destination’s executives to leverage all their influence power?

Business model innovationMarketing 3.0Tourism trends

The Vision of Tourism 3.0

As the world is evolving at a faster pace than ever before, so are the needs, motivations, and concerns that drive the evolution of modern societies, and hence the kind of relationship that customers wish to develop with brands, as well as what they expect from them, which ultimately challenges business models to reinvent themselves towards the so called Marketing 3.0 approach.

As explained by Philip Kotler in his book “Marketing 3.0”, this new approach considers customers as values-driven people and potential collaborators. They are increasingly concerned about issues such as poverty alleviation, sociocultural change and environmental sustainability, and expect brands to address its related challenges. Companies should embed these issues deeply within their mission, leading to a new perspective that ultimately transforms the lives of the stakeholders.

Such a mission needs to be spread to all potential stakeholders with compelling stories that engage them to become part of the solution. Such stories raise the concept of marketing to the field of values, intending to leap forward from functional and emotional marketing to human spirit marketing.

Marketing 3.0 also embraces the new social wave, where customers are more aware and active, empowering them not only to participate by giving their opinions about products and marketing campaigns but also to co-create them, thus becoming key players within the marketing strategies. This new approach demands marketers to understand human anxieties and desires, which nowadays are increasingly rooted in creativity, culture, and the environment.

The tourism industry has embraced many of these trends and concerns with the raise of phenomena such as ecotourism or responsible tourism. However, these businesses usually remain at small scale and niche focused, at a disadvantage to most conventional ones, mostly in terms of marketing power.

The next destination generation intends to address these drawbacks by fostering collaboration among all destination stakeholders (employees, customers, shareholders, suppliers, government, partners, travel agents, local community, etc.) to create authentic and life-transforming experiences that appeal not only to the tourists’ functional and emotional needs, but also to their human spirit.

Furthermore, this collaboration and community involvement is leveraged to create stories about the experiences happening in the destination, which ultimately become the main marketing content drawing attention and engaging tourists and other potential stakeholders.

Therefore, the vision of Tourism 3.0 consists of a tourism development based upon collaborative business models operating as open innovation ecosystems, where all stakeholders are empowered to participate in the generation of experiences and stories that address their concerns and focus on their functional, emotional, and spiritual fulfillment.

The mission of this blog is to share and discuss ideas on how to design and develop strategies to transform destinations towards the principles of the tourism 3.0.