Tag: collaborative economy

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?

Collaborative business modelsCollaborative cultureInnovative cultureMarketing 3.0Strategy

Destination Marketing 3.0: Implementation

The implementation process of the new marketing system is to be progressive and flexible, depending on its performance compared to the destination’s traditional marketing. By keeping track of the new marketing key performance indicators, the executives are to decide to what extent the marketing budget should shift the priority towards the new marketing system and replace the traditional marketing tools.

This is expected to be a progressive shift that may take a few years, envisioning that the new marketing system is to cost much less than the traditional one, especially in the long term. As explained previously, the new marketing is about empowering, encouraging and facilitating stakeholders on co-creating stories, experiences and other contents to be marketed throughout the social networks, and this is not only a more effective marketing, but also a more cost effective one.

When implementing the new marketing strategies and tactics, there also has to be a new set of key performance indicators to monitor the success of the new marketing strategies. Upon tracking these metrics, we will decide whether to progressively shift budget allocation from conventional marketing to storytelling based marketing through social media.

There are many indicators that could orientate us on the new marketing performance:

  • Production of stories, experiences and other contents in the open innovation system.
  • Voting participation on stories, experiences and other ideas through the social media networks or mobile apps when opening a content creation contest.
  • Shares on the stories published on the Destination’s social media page.
  • Destination publicity out of the stories and content production in all types of media.
  • Key influencers’ opinions on the destination’s value proposition.
  • Sales of merchandising products created through the content marketing system.
  • Followers of the Destination’s social media sites.
  • Survey on visitors to know what attracted them to come to the destination.
  • Qualitative reviews and ratings applying to both experiences and stories. In the new Tourism 3.0 culture, community members risk their reputations when giving reviews, hence only brands with high integrity are likely to obtain good reviews and ratings.

To develop an “exigent” rating system, community members could only vote for one, two or three stories, and would be rewarded if their nominated stories were eventually awarded, to motivate them to read carefully and make thoughtful ratings.

Destination executives’ role is to ensure the brand integrity rather than trying to stimulate reviews by sponsoring them, which could be regarded as manipulation.

Do you miss or envision any other relevant KPI to take into account?

Collaborative business modelsInnovationInnovative cultureOpen innovationStrategy

Destination Models 3.0: Development strategies (II)

Open Innovation system development

Being one of the key assets to invigorate creativity and sustain the destination model competitive advantage, it is necessary to design a set of strategies to engage stakeholders in contributing up to leveraging the most of the collective intelligence. The open innovation platform is to unlock the creativity of all stakeholders, starting by its employees, followed by its closer partners, and beyond.

One of the key factors to make the open innovation work is to constantly connect with external networks, which are more likely to bring in new ideas than creativity alone. Based on the same principle, encouraging the network members to travel, research and learn about other destinations should nurture the innovation ecosystem with inspiring ideas.

Most productive innovation networks are characterized by a decentralized structure with many leaders who have collaborative mindsets. Such decentralization not only unlocks initiative and creativity, but also fosters further interaction and collaboration among the network members.

When developing the open innovation system there are four critical steps to follow from the design phase, to the execution and management of the network:

Connecting and organizing people:

  • Find open minded people who are motivated for innovation
  • Combine people with different approaches to innovation (idea generators, experts, producers)
  • Make sure there are members with different profile in terms of skills, seniority, and field of expertise
  • Include subgroups devoted to specific tasks and goals

Setting goals and engaging members:

  • Define the role of the innovation network and groups in relation to the organization’s mission
  • Establish innovation goals and metrics to track progress
  • Plan how to establish trust among network members and engage them quickly

Supporting and facilitating:

  • Determine technology support required for network members
  • Define additional support if necessary
  • Define key information inputs

Managing and tracking:

  • Define incentive system to reward contributions
  • Determine accountabilities and timing to track and assess performance
  • Decide who takes new responsibilities and who leaves responsibilities

When composing innovation teams for specific purposes such as business model innovation, some rules should be applied. For instance, there should be a balance between four kinds of contributors:

  • Idea generators, who come up with out-of-the-box approaches and questions to start with
  • Researchers, who bring along an analytical perspective based upon market insights
  • Experts, who bring deep knowledge in their field of expertise
  • Producers, who coordinate the activities of the network and connect with people from outside

Furthermore, mixing people from different backgrounds -in terms of education, culture, and industry expertise- is likely to bring along different approaches when trying to solve complicated challenges.

To start operating the open innovation platform, there are many steps to be followed:

  • Guarantee internet access to all internal stakeholders (partners and employees)
  • Train them on how to use the tools
  • Set up content creation contests for experiences, stories and marketing materials; setting clear rules to make sure they are aligned with the values and the mission. Everybody should be empowered to start their own story or to collaborate with others’.
  • Storytelling facilitation: stakeholders would attend training workshops on how to write stories
  • Training on business model innovation methods and frameworks to establish a common language
  • Presenting a story and other marketing contents as successful cases to inspire participation

Would you consider any other step in the development of the open innovation system?

Co-creationCollaborative business modelsIntelligenceIntelligence methodsMarketing 3.0

Destination Marketing 3.0: Mobile Apps 3.0

As an essential tool for empowering tourists to contribute and participate in the collaborative marketing system, the Mobile Apps 3.0 would enable tourists to write reviews and rate immediately after the experience, vote and participate in content creation contests, make bookings and search for information about the destination.

The Mobile App 3.0 would not only be a supporting tool for the communication between the tourist and the destination, but also a tool to encourage tourists to become co-creators of the destination experience and to engage them in the mission accomplishment. Other functions of the Mobile App could be augmented reality features, geo-localization, video & photo uploading, map download, nearby deal pop-up service, etc.

This is to be developed for DMOs only, to take profit of the investment being supported by many stakeholders, and to offer the tourist a comprehensive service.

What kind of obstacles do you envision to make the Mobile Apps 3.0 an effective tool?

Business model innovationCollaborative business modelsCollaborative cultureSustainabilityThird sector and social sustainability

Destination Models 3.0: Integrating partners (IV)

Selling the vision to community stakeholders

The challenge of integrating all the community of stakeholders requires its own marketing plan, usually known as internal marketing plan. This plan should encompass the target stakeholders to attract in every phase, the integration formulas, and the communication strategies and actions to achieve these goals. Since the beginning when presenting the first model prototypes to pre-test and design the integration formulas and when eventually marketing the destination model to engage the community stakeholders, it will be necessary to explain them the model vision in a compelling way that connects first with their emotions and human spirit, and ultimately opening their want for a deeper understanding of the destination model rationale.

Stories are the best way to help people imagine how the new model is likely to improve their current status quo, how it creates value and therefore improves the community’s life quality. Stories convey the new model ideas to the people’s minds describing them in a way that overcomes resistance, the most likely reaction to new model propositions challenging the status quo. By capturing people’s attention and curiosity, compelling stories are to pave the way for an in-depth presentation and further discussion about the new destination model, to eventually make the potential stakeholders understand the implications that the new model would have for them: costs, obligations, efforts, and benefits for the individuals and the destination as a whole.

To better convey the idea about how the new model would operate for the local stakeholders, it is convenient to use one main character similar to the audience profiles (service suppliers) to be the protagonist. Such character should have similar problems, needs, concerns, fears and aspirations as most local potential stakeholders, so to make them feel identified with him and connect with the story. Then, the story shows the character finding out how the new model addresses all these needs and concerns, so to help the audience visualize the answers to their questions and fully understand the operation of the model.

Furthermore, it is convenient to provide potential stakeholders with an interactive tool where to “play” with the model simulating how it would be to become an integrated partner within the new platform. So long as the model system is complex, such tool is crucial to help potential partners understand and envision their possible fit. This should be complemented with workshops where platform representatives would attend community stakeholders’ queries.

Such destination’s vision is not only necessary to convince the community members to integrate, but also a guiding force that constantly aligns everyone’s efforts on their contribution to expand the destination mode to the utmost of its potential and to accomplish the mission.

In this stage, when defining the model to be deployed throughout the destination, one of the key points is to decide upon harmonizing the urban aesthetics style to be deployed throughout the destination. This should be quite flexible and should be voted by locals.

Would you consider other strategies when selling the vision to the community stakeholders?