Tag: collaborative economy

Business model innovationCollaborative business modelsCollaborative cultureInnovationTourism trends

Dinner at my home? It’s 30 Euros

What is a SMART destination? These may be defined in many ways. They are destinations that think and advance strategically, improving competitiveness and searching positioning through effectiveness. Becoming a SMART is no more than a strategy to enhance the destination value by leveraging both the cultural and natural heritage, developing innovative resources, improving the efficiency in the production processes and the distribution, which finally propels the sustainable development. This transformation generates positive effects in all sub-sectors such as energy, health services, security, culture, etc. thanks to the cross-destination impact of the tourism activity.

The key concepts that set SMART destinations apart from conventional ones are accessibility, innovation, technology and sustainability. Among these concepts, new technologies are the ones which are more likely to be perceived by the tourist, namely mobile applications, augmented reality and everything related to data smart management.

There are 4 key concepts upon which Smart destinations are developed:

  • Technology/Big Data
    • Innovation
    • Sustainability: social, economic, cultural and environmental
    • Accessibility

The development of the SMART concept in destinations consists mainly in working to attain a higher profitability in the daily exploitation of the resources. This is to be achieved by engaging both the local community and the tourists in order to enhance interaction between them. There are already some examples of Smart destinations, such as El Hierro island in the Canary Archipelago. Some of its main achievements are the energetic self-sufficiency and the pollution reduction, which have been achieved through actions such as:

  • Waste converted into energy
  • Environment camouflage of telecom and energy facilities and equipment (solar panels, antenna, etc.) within the landscape.
  • Reduction of the visual impact in the buildings and facilities construction, by using local volcanic stone instead of bricks.
  • It has gained awareness and branding by sharing and marketing its experiences in the social networks.

Other actions carried out in SMART destinations encompass:

  • Mobile Applications
  • Tourism Intelligence System, including data transportation and information Smart management, which altogether turn the destination into a SMART destination.
  • Smart office; a common working place where to unify processes which produces a work synergy and allows sense and common methodology guidelines in the transformation towards an intelligent city.
  • Beaches with free wifi

It is important to mention Singapore Smart City, which is on the way to become the first SMART nation worldwide. The country is working on its Master Plan for the next 10 years, which will be focused on the development of smart communities propelled by integration and innovation.

This blogpost is based on http://www.visionesdelturismo.es/smart-destinations/

Business model innovationCollaborative business modelsInnovationTourism trends

Guides that are not guides

As has happened with the accommodation business, namely with Airbnb, the collaborative platform business model is also developing in the tourist guides business. I have personally experienced one of these platform’s services in the city of Prague.

Thanks to these platforms it is no longer strange that the tourists are offered free guided tours in great urban destinations, without any trick. In my case, I used the services of Sandeman’s New Europe, which is already present in 18 cities. At the beginning of the tour, the guide explained that his income comes from tips, and so it was not mandatory to pay even 1 Euro.

The tour lasted more than 3 hours and it was really entertaining, with good quality content. The guide was brilliant and received quite a lot of tips. But, attracted by the quality of this Guided tour, the day after I did another one, but paying. This business works actually like a freemium model.  In fact, there are many more businesses offering free guided tours in Prague. And they have their rivalry moves, like guerrilla marketing actions, competing for the best locations, etc.

But this new fashion not only takes place in the large cities. The Greeters movement is emerging also in smaller cities, like Bilbao. The first company operating this business model in Bilbao is actually called Bilbao Greeters, and is part of the international network Global Greeters Network. The Greeters are locals offering guided tours with the authenticity of a local resident’s knowledge and perspective, who knows the traditions, habits and secrets beyond the usual tourist information available. In the Basque Country the Tourist Guides are not regulated, and so there cannot be any conflict in this case. Unlike in the previous case of “New Europe”, the Greeters are not professional guides and do not accept tips.  However, to make a booking you need to be registered as partner, which costs 12€ per year.

Finally, there are many online platforms allowing people to offer their tourist services worldwide. Besides platforms such as Vayable, Viator or Isango, marketing all kind of experiences –from guided tours to cooking lessons-, there are many others offering guided visits by the destination’s residents.

Local Guiding is a platform oriented to “changing the way people travel, experiencing the local life as it is, not like the conventional tourism agencies pretend it to be”. They are already offering guided tours in more than 20 Spanish destinations.

Tours by locals are the veterans in this sector, as they have been operating since 2008 from their headquarters in Vancouver. They nowadays offer guided tours in many countries worldwide.

Like a local is the concept developed through a mobile application. Destination residents contribute to editing the local guide with recommendations, advice, routes, etc. and obtain revenue from the application’s management firm.

Finally, there is the Spanish portal called Ciceroner , promising to offer “unique and personal experiences, the only ones that can be really different and memorable”. It is still in Beta development phase, but it already offers a considerable amount of products in many destinations. It gives the option to gift the guided tours just like Smartbox and many others, but promising a superior experiential value.

As we can see, it is an emergent business model, with many suppliers and intermediaries operating in the market. However, this new fashion business model arouses many questions:

  • Is it just a fashion or a new reality?
  • Are these services for specific segments or for all types of visitors?
  • Is it necessary to further regulate this type of businesses to ensure a fair competition with the traditional models, or should they be given free regin instead?
  • Are these new models going to operate in urban destinations only, or they are likely to operate in beach destinations traditionally dominated by tour-operators?
  • Do these business models affect somehow the destinations’ image? Should the DMOs do something to get some profit from it or to manage it for branding purposes?

I invite you to reflect upon these questions, and encourage you to give your opinion

This blogpost is from http://www.visionesdelturismo.es/guias-que-no-son-guias/

Business model innovationCollaborative business modelsCollaborative culture

Collaborative tourism: is it an original business model?

When we talk about collaborative tourism or tourism peer to peer, we refer to a new trend in the way of traveling based upon sharing basic resources such as accommodation, transport means or personal experiences with other travelers through platforms where the host publishes his/her offer and the tourist makes the booking.

Theoretically, this phenomenon comes from the collaborative economy model, where consumers may also become suppliers by sharing their means with other consumers, also operating on a global scope, prioritizing human relationship above competition and selfishness. The presentation results in being attractive to more and more tourists, who do not really know the business model completely.

Due to the constant transformation of the virtual economy, the task of identifying and describing virtual business models has turned to be quite hard. However, since this P2P platform business model usually determines it’s success, it is no longer unknown: platforms meet the needs of both supplier and buyer, and take a commission from the booked services price.

Checking the four main collaborative platforms operating in Spain for the four types of services available (eating, accommodation, transport and experiences), we find that their revenue sources are not so different from the traditional tourism intermediation models:

  • AirBnB: charges a commission between 6 to 12%, plus 3% of the conversion rate.
  • BlaBlaCar: depending on the amount of the transaction, it charges 1,60€ for transactions from 1 to 8€ or a commission of 20% for transactions of more than 8€.
  • EatWith: it takes a commission of 15% of the transaction.
  • Trip4Real: it takes 25% of the transaction.

A similar procedure is used for any other tourism intermediary, such as a travel agency, a tour-operator, broker, etc. The difference remains in that these intermediaries comply with the regulations in terms of safety, health and taxes, whereas most of the accommodation and transport means offered in the collaborative platforms do not comply with them.

Therefore, the consumer of collaborative platforms pays a lower price due to the non-compliance with the aforementioned regulations, and takes the risk of suffering any kind of accident without the safety prevention means. Furthermore, despite the social sharing philosophy upon which the platform is created, many suppliers operate for profit rather than for the aim of sharing cost or experiences. However, this is difficult to prove and control.

The hospitality sector’s opinion. The outburst of the tourism collaborative platforms has transformed many housing apartments into competitors for the hotels and regulated tourist apartments, and so it has turned into an important issue for the Public Administration.

According to the Spanish Confederation of Hotels and Tourist Apartments, there are only two possible solutions to this conflict: the total banning of the platform operations –as has happened in many major cities-, or the obligation for the apartments to comply with the same regulations as the current regulated tourist apartments.

It is necessary to take into account that the tourism sector in Spain is hyper-regulated. There are around 250 regulations at the European level referring to intellectual property, consume, safety and payment means, plus those from the local administration. All in all it entails a great deal of costs that do not apply to the collaborative platform operators, including the VAT, the police files, fiscal and sanitary costs. This is clearly a case of unfair competition. In this regard, there are many points to consider:

  • The regulations applying to these tourist housing apartments are different for every region in Spain, for it is necessary for the destination regulators to study them all in detail.
  • It is necessary to consider the product separately from the platform, taking into account that the platform operation is similar to the traditional channels such as the travel agencies, and so the same regulations should apply.
  • The evolution of the global society is likely to propel this paradigm beyond the current conditions, demanding solutions in terms of adapting the new regulation and policies.

This blogpost is from  http://www.visionesdelturismo.es/turismo-colaborativo/

Co-creationCollaborative business modelsCollaborative culture

Essential reads about collaboration

Collaboration has been on the spotlight of business literature throughout the last years, and so it is difficult to make a good selection when searching for good literature on business collaboration. This article proposes 3 outstanding books that will help you get further insights on this issue.

The Silo Effect

From award-winning columnist, journalist and senior editor for the Financial Times Gillian Tett, The Silo Effect shows the importance of cross-disciplinary and cross-cultural collaboration for organizations to succeed. It also shows how the lack of this collaboration sends organizations into deep trouble. Probably this is the book on collaboration with the most interesting case studies.  Readers will find cases of organizations getting collaboration right but also of those felled by the lack of it. Specifically, the book includes eight different tales of the silo syndrome: Bloomberg’s City Hall in New York, the Bank of England in London, Cleveland Clinic hospital in Ohio, UBS bank in Switzerland, Facebook in San Francisco, Sony in Tokyo, the BlueMountain hedge fund, and the Chicago police.

Beside the cases, the book also includes some specific suggestions on how some people and organizations can break those silos down to unleash innovation. Author Gillian Tett’s background in anthropology is present when she examines our tendency to create functional departments (silos) or when she answers questions as why do humans working in modern institutions collectively act in ways that sometimes seem stupid, or why are we so often “blind to our own blindness”.

An interesting twist to highlight. Tett does not consider silos as the “evil” player to eliminate. She recognizes silos can also be beneficial, especially in a world as complex as it is today. Silos in the business world can indeed be uniquely valuable containers in terms of organizational efficiency and productivity. But they can also be, of course, major barriers to communication, cooperation and, especially, collaboration. So essentially everything comes to know how to get their benefits but also avoid or prevent their downsides. And Gillian Tett explains how.

Collaborative intelligence

Collaborative Intelligence is the culmination of more than fifty years of original research that draws on Dawna Markova’s background in cognitive neuroscience. Markova and her “Professional Thinking Partner” Angie McArthur are experts at getting brilliant yet difficult people to think together. They share a consulting practice in which they serve as “thinking partners” to clients who need insight in how better to achieve synergistic collaboration within their firm, a group of “patients” that includes some of the world’s top CEOs and creative professionals.

Rooted in the latest neuroscience on the nature of collaboration, Collaborative Intelligence offers tangible tools for those serious about becoming ‘system leaders’ who can close the gap and make collaboration real. This book is full of practical guidance to help the reader to discover his or her own “CQ” or Collaborative Intelligence Quotient. As explained in the book, each individual has a characteristic way of processing cognitive challenges (Mind Pattern), depending on the kind of attention that their brain utilizes: Focused attention, Sorting attention and Open Attention. There are also three languages of thought (Auditory, Kinesthetic and Visual).

Markova includes many worksheets and questions that readers can use to determine not only their own patterns, but those they work with as well. There are also plenty of tips on how to maximize that pattern for effectiveness in personal work and in collaboration with others. Subsequent chapters demonstrate how the knowledge of these languages and triggers can be used in building teams and in optimizing team interactions.

Collaboration begins with you

Collaboration Begins with You focuses on helping leaders at all levels to create and develop a culture of collaboration. Bestselling author Ken Blanchard and his co-authors show that busting silos and bringing people together is an inside-out process that involves the heart (your character and intentions), the head (your beliefs and attitudes), and the hands (your actions and behaviors). From authors’ point of view, clearly none of these “parts” can function without the other. You need your heart, head, and hands to bring about change and build collaboration with others.

An important fact for those who prefer novels to essays. Authors use the business fable as a format to explain a story about creating a collaborative atmosphere in a company, with a main character who is the leader of a cross-department project that fails because the units involved are too competitive with one another. The solution, he learns, is to shift his and other’s heart, head and hands toward collaboration.

This article is from  www.co-society.com/summer-time-reading-collaboration/

Collaborative cultureCulture changeMarketing 3.0

Why is it necessary to create a collaborative culture?

The future of destinations is likely to depend upon a strong force that breaks the traditional rules of competition through stimulating cooperation, hence causing the union of its poles. Therefore, the future of destinations will be based upon the capacity of creating those conditions.

It is necessary to make repelling agents such as businesses and people, work together creating synergies benefiting the whole community. This change entails developing a new culture, which means changing values, beliefs and attitudes in both poles: businesses and consumers, as well as other kinds of stakeholders.

Throughout history, societies that have developed an economic system but not a culture to drive it forward have collapsed. Nowadays, the speech about entrepreneurship in Europe puts its focus on the need for creating spaces for entrepreneurs, when the real need is to develop a culture of entrepreneurship.

Therefore, when we talk about smart cities or smart destinations, are we only talking about urban and system planning? Good systems themselves are useless if there is no active culture of cooperation among agents.

Hardware x Software = System or Economy x culture = Society

The future is a destination where there is cooperation in two ways: a smart destination from the systems perspective and collaborative from the social perspective; a destination where there are thousands of exchanges and connections between business agents and social agents; destinations where products and services are developed in cooperation with social entrepreneurs. A destination where business and social agents are not connected is likely to fail, because the future of the economy is based upon collaborative models.

Therefore, the future of destinations is not based only upon developing infrastructure and technology, but on creating the conditions to facilitate efficient and long-lasting cooperation among all stakeholders.
This post has been inspired by an article in www.infonomia.com , the leading Spanish Forum on innovation.

Collaborative business modelsCollaborative cultureInnovationInnovative cultureIntelligence

Destination Intelligence 3.0: attracting talent to the open innovation platform

The innovation platform should market its value proposition not only to the whole industry stakeholders throughout the region, but also to all potential contributors in and outside the industry. The process starts by identifying a pool of champions who are willing to showcase the benefits of open innovation for both contributors –solvers- and receivers –seekers-.

By identifying a group of visionaries in both sides of the platform, the conditions are set to face the first challenges, the ones which have to showcase how the open innovation works, and how it may  contribute to improving the competitiveness of the whole industry. As soon as a few of these innovation challenges show successful results and satisfaction in both sides of the innovation process, a greater group of early adopters is likely to become interested and eager to participate to some extent.

As stated before, beyond rewards, the great motivators to take into account are the will for contribution to the community’s progress and well-being, and the will for recognition and prestige among industry peers. Such motivators suggest two main strategies to attract talent:

  • Promote innovation challenges for non-profit purposes. Such challenges may be focused on helping destinations in developing countries or having suffered natural disasters, or mission driven tourism organizations, mostly related to environmental issues, like in ecotourism. Such challenges could be sponsored by private companies to offer some compensation.
  • Organization of events to award best contributors and give them public recognition.

These and other strategies should be supported by marketing the open innovation platform to potential contributors in their communities and favorite media channels, which would entail social media, magazines, journals, public presentations, etc.

A more detailed explanation about the operation of an open innovation system is to be provided in the Whitepaper “Envisioning open innovation in destinations”.

Do you think of other strategies or tactics to attract talent to the open innovation system?

Collaborative business modelsCollaborative cultureInnovationInnovative cultureIntelligence

Destination Intelligence 3.0: fostering contribution and collaboration in the open innovation

It is necessary to develop incentive systems to recognize and reward collaborative partnerships between innovators. Mind that the most powerful motivators that drive contribution are:

Contribution to the greater good. As long as innovations contribute to improve the community’s quality of life to some extent, this is itself highly rewarding. Intrinsic motivation is actually the primary driver, as a satisfactory result is already quite rewarding.

Peer recognition. One of the highest motivators –probably the highest- is the status and recognition attained through contributions. It is therefore crucial to find ways of recognizing contributors, rewarding them with appropriate community prestige.

Compensation. It is necessary to think of a flexible system of compensations, according to the various motivations within the pool of innovators. Beyond money rewards, it is necessary to find out other kinds of compensations that contributors would be willing to strive for.

Fostering collaboration in the innovation efforts poses many challenges, primarily related to the culture of trust, which has to be created over time, starting by the design of an appropriate system of rewards to tackle with critical issues such as intellectual property transfers and confidentiality, among other concerns.

The best way to start with collaborative innovation is in mission driven challenges that appeal to the contributors’ human spirit rather than for its compensation, which is actually likely to be symbolic or insignificant. The collaboration in non-profit challenges is expected to progressively weave interaction and networking among innovators, as well as trust among the frequent contributors. Such practice is also expected to inspire reflection about the design of collaboration systems for compensated challenges.

Can you think of other motivators or strategies to foster contribution in the open innovation system?

InnovationIntelligenceIntelligence methodsOpen innovation

Destination Intelligence 3.0: operation of the open innovation system

In contrast with free ideation where the mass crowd of solvers is empowered to bring in their ideas with little or no direction –as many companies have approached open innovation with rather bad results-, the most effective method to deliver real solutions to the seekers is challenge driven innovation. As aforementioned, this method consists of formulating specific and actionable problems or opportunities, to better focus the innovation efforts of potential solvers to a real solution that can eventually be implemented.

The open innovation platform is to be managed by a pool of Project Managers (PM) in charge of dealing with the Innovation challenges. Every time a public or private stakeholder (seeker) wants to open a challenge, a PM is assigned to the challenge and follows a series of steps:

  • The PM works with the Seeker in the formulation and definition of the challenge.
  • Once the challenge is defined, the Seeker has to set the prize or prizes for the winning solutions. There may be many prizes of different amount to take advantage of many ideas and encourage more participation.
  • The PM has to define with the Seeker the terms of agreement to be offered in the tender.
  • Beyond the registered innovators in the platform, the PM should search for more innovators outside the platform, especially when the challenge requires specific expertise which is rather scarce or nonexistent among the registered innovators.
  • Once all potential innovators have been invited to participate to the challenge, these have to submit their solution by the specified deadline, complying with the stated requirements.
  • When submitting the solutions, the PM screens them all to ensure that they all meet the requirements established by the Seeker, prior to deliver them to the Seeker.
  • Then, the Seeker may decide which solutions are suitable and award as many as he considers, or none at all if any solution is good enough.
  • In the case of discarded solutions, the Seeker has signed an agreement upon which he cannot use the non-awarded ideas without permission of the Solver. To guarantee the accomplishment of this agreement, a pool of Innovation controllers are empowered to carry out Innovation audits on the “Seeker companies” to make sure that such ideas are not used.

Regarding intellectual property (IP) transfer, there are many possible options to regard:

  • IP may be fully transferred to the Seeker, especially when the reward is according to it.
  • IP may be transferred under a non-exclusive license to the Seeker, if the reward is too low.

This issue is to depend also on the nature of the assignment, taking into account that some innovations are only applicable to one case, because of the uniqueness of the Seeker or because the job is tailored for the Seeker, such as a graphic design.

The funding of the platform may come from two complementary sources:

  • Brokering commission for every challenge managed to be paid by the Seeker.
  • Sponsorship by many industry stakeholders, including the government.

The platform should engage a vast range of shareholders within the industry, encompassing private businesses, educational institutions, governments and even non-profit organizations.

How do you thing that this operational system could be improved?

InnovationIntelligenceIntelligence methodsMarketing 3.0Open innovation

Destination Intelligence 3.0: structure of the open innovation system

The open innovation platform is to be structured in many areas of innovation, according to the nature of the needed expertise. Hereby, six areas of innovation are envisioned:

  • Technological solutions (mainly IT related)
  • Environmental friendly solutions
  • Product development
  • Marketing designs and merchandise
  • Business model innovation (strategy challenges)
  • Stories in different formats, photos, videos, etc.

Every innovation area would have its own pool of contributors, who receive updates about the incoming challenges in which they are invited to participate. Such challenges may be classified into three categories:

  • Private challenges posted by private companies
  • Public challenges posted by governments, public institutions and DMOs
  • Public challenges for mission driven purposes, posted by non-profit organizations, related to cooperation programs or for mission driven destinations

The difference between private and public challenges is mainly the publicity of the challenge, which in the case of private challenges is more likely to be directed exclusively to a selected group of innovators without revealing the name of the innovation seeker and keeping maximum confidentiality. Conversely, public challenges are open to the whole platform, without need to keep confidentiality on the identity of the innovation seeker.

Furthermore, there could be an “Ideation bank” to collect solvers initiatives on identified problems or opportunities which have not yet been posed as a challenge, as they are not among the top priorities for seekers or there is no budget to award solutions at that moment. This ideation bank should give room to creative initiatives and work as a social media platform where solvers may pay for enhanced advertising of their ideas and participants may vote for their favorite ideas. The posted ideas should comply with a series of parameters, requiring detailed and structured explanation of the idea, to filter the mass participation. The “Ideation bank” would not only foster innovation, but also the promotion of new talents in the industry.

Do you think of other types of innovation challenges or areas?

Business model innovationStrategyStrategy planning & execution

Destination Models 3.0: Development strategies (IV)

Service planning

Once identified the portfolio of partners, infrastructures, facilities and service suppliers needed to start operating the platform, it is necessary to envision the necessary service capacity or carrying capacity for each of them throughout the subsequent development stages. This entails determining the needed capacity for every business and facility in each of the destination areas in a reference day, foreseeing the expansion of the model to the utmost of its potential.

There should not only be planned the service capacity of facilities, infrastructures and service businesses, but also for the entire portfolio of experience providers, to guarantee a balance in the variety of experiences offered throughout the destination, according to the demand.

The service planning serves as a layout for the expansion of the model, setting the direction on which services and facilities have to be developed in which location, ensuring a balanced and harmonious development in every stage of the model’s expansion. It depicts the type of businesses, facilities and infrastructures that have to be developed in each phase of the model expansion, specifying the service capacity of everyone. Such service capacity planning should be flexible for both facilities and service businesses, in different ways:

  • For facilities, some resources such as personnel should be flexible to adapt variable costs to the needed service capacity according to demand. Every facility should have an established maximum service capacity, but its associated costs would depend upon the needed capacity.
  • For service businesses, there would be an initial plan of the service portfolio, which could be changed as long as the experienced demand for every kind of service advises to do so.

Would you add any other consideration when planning the service capacity throughout the expansion phases of the model?