The Scope for Innovation in Events - Coursework Example

Introduction Events have long played a significant role in human society and its development, and were originally a celebration of ceremony as well as rituals. Events are “organized acts and performance,” (Raj, 2009) which originated in the ancient times. Each event has certain important “implication and function within a society” (Raj, 2009) that provides opportunity to its participant to assert their identity and to share these rituals and celebrations with other people. Traditionally, organization of small local events was relatively uncomplicated and needed no extensive managerial capabilities. For example, events like local festival, wedding, meeting etc were usually exercised by non specialist hands. But by the passage of time both in private and public, people feel the need to mark the important occasion in their lives and to celebrate it pompously. This paves way for the development of event industry. Today, events are served as “central to our cultural values” in ways they were done never before. Increase in leisure time and discretionary spending have led to “proliferation of public event, celebration and entertainment” (Bowdin, 2001). Governmental bodies now show keen interest to support and promote events as a part of their strategies as well as for image protection. The enthusiasm of “community group and individual” (Bowdin, 2001) for their own interest and passion gives rise to a marvelous flow of events on almost every subject and theme imaginable. Events that “spill out of our newspaper and television screen” (Bowdin, 2001) occupy much of our time and at the same time enrich our lives. Modern society always tends to create events by which they can get together and enjoy each and every celebratory moments of life. In these days, events are considered as the source for “cultural and economic development” (Bowdin, 2001). Events help to have a major impact on the development of cultural tourism to the host communities. Moreover, large events and festivals are not specifically designed to address the social and cultural needs but for the economic benefit available by that source. So the need for effective management of event arises from the “economic benefit” attached with the hosting of every event. “Increased professionalism and wider recognitions” (Robinson et al. 2010) pave way to the significant growth of event industry. Events today touch all our lives, and it is important to recognize the full range of organization within the event industry, and move beyond its close affiliation with the tourism industry. The term ‘event’ includes a multitude of activities, which cover things ranging from personal celebration to public and business gathering. The ultimate aim of every event management is to create a unique experience for a target audience. So innovation and creativity are two important traits required for a successful entrepreneur. Innovative initial and creative thoughts are being recognized as the major source for competitive advantage and market leadership. Developmental phase of event management and industry “The way in which an organization deals with an event” (Bhe et al. 2004) is rightly been termed as event management. It is the process by which an event is “planned, prepared and produced (Silvers, 2001). Being an activity with great social implication and acceptance it requires right kind of management practices and it also leads to the development of event industry and event management profession. Defining the event industry is a “challenging task” (Silvers, 2001) in all perspectives, as it is wide and vast and it is difficult to be inculcated into certain limited parameters. Event industry is best described as “any situation in which a company presents itself face-to face with its target audience” (Labour Market Review of the Events Industry, 2010). Initially the event management players were only the large scale ones with international tie-ups helping them to organize various events. The event industry has grown enormously in the last two decades irrespective of size and place. The modern event industry is synonymous with innovation, (Robinson et al. 2010) which is a new idea to create increasingly impressive events using state-of-the art production technologies. At the same time, events are often consumed by strong emotional attachments that are linked to the past through ritual, nostalgia and tradition. When innovations and emotional attachment are considered together, it is evident that commercial logic and economic rationality are often at odds with romantic visions, passions and emotion present in the event. This is the paradoxical nature of event and it is these paradoxes and point of difference that justify event management as legitimate profession (Robinson et al. 2010). These tensions are placing more demands on the skill and knowledge level of those people who work in the industry. It is also important to note that event organization, planning and implementation are not assumed less complex or that performance outcomes are more easily achievable when compared with other industries. Like other industries, event industry also seeks innovative and creative ideas to create new elements and succeed in the market place. INNOVATION THEORY Innovation is “the process of making changes”, to the product, process and services in large “and small, incremental and radical” (Understanding Innovation.2008) elements, and which results in the introduction of something new for the organization that adds value to customers as well as contributes to the knowledge store of the organization. Joseph Schumpeter, who propounded the theory of innovation, identified innovation as the “critical dimension of economic change” (Schumpeter n.d). Innovation in the perspective of Manufacturing industry Businesses should adopt innovation in manufacturing for several reasons. In addition to “productivity and quality gains”, (KPMG.n.d) innovation also results in improved responsiveness to customer demands, lower turnaround times, reduced wastage levels, higher quality, better designed products, capacity for a wider product range and also streamlined relationships with suppliers and customers. Manufacturing innovations can be in the form of the ability to find, create, and capitalize new product and production ideas. It is defined as ‘the introduction of “new forms (of) idea” (Palangkaraya, A.2010) Into production processes and products into the workplace. Innovation in the perspective of Service industry For innovations, there are a number of examples available. A radical innovation can be seen in electronics goods, that is, from vacuum tubes to transistors and to semi-conductors. Similarly, in mobile phones also one can see tremendous changes, due to technological innovation. Here, the paper discusses about innovation in service industry. Since services are “intangible” (Kandampully et al. 2001) in nature, it is very easy for the competitor to copy the scheduled programs of one organization and much difficult to introduce something new. Service Innovation is a “new service idea” (Gregory et al. 2005), if it satisfies an intentional change in the services, provides a new or substantially improved benefit to the customer, significantly improves the service firm’s profitability, and can be duplicated from customer to customer. Service firms innovate in three ways: Change to the service itself: This focuses to introduce a new variety of service that is not being offered in the existing market. For example: cloud computing. Change to the service delivery process: Here entrepreneurs try to change how the services are being provided. For instance: Internet banking. Changes to the organizational and managerial structure: Making changes in the managerial and organizational structure involves new or improved managerial techniques (e.g., total quality management, quality assurance system), significantly revised organizational structures, and/or the implementation of new or substantially changed corporate. INNOVATION IN EVENT MANAGEMENT Innovations are inevitable in all the areas of life, which bring growth and prosperity. Today’s competitive business environment innovations are an essential tool for success and survival of organizations. Like all other industry, event industry is also not free from innovative practices. At this particular time, event industry is one of the fastest growing industries in the world. Planning and execution of the event can be very difficult and it requires professionalized approach towards hosting an event. Event management is a constituent part of many industries, which includes hosting of different natured event. A separate event industry denotes all firms that take part in the planning and hosting of a particular form of event, Event management refers to the use of management science for the development of festivals and events (Cohen, n.d). It includes planning, organizing, directing and controlling the activities essential for conducting the event. Competition invites innovation Unlike earlier days, now the event industry is gaining importance rapidly. Since more people are interested to spend for their leisure time and enjoyment, the event industry has reached a peak stage. The industry growth invited more investors in the industry and that resulted in stiff competition. In order to exist in this kind of market competition, the company has to develop competitive advantage over others. The best way to maintain the competitive advantage of a company is through innovation. Thus, the need for innovation becomes more inevitable. A competitive advantage is an advantage gained over competitors by offering customers greater value, (Ehmke,C.n.d) either through lower prices or by providing additional benefits and service in terms of new and improved product and process that justify similar, or possibly higher, prices. Need for innovation within event industry Innovative practices are inevitable in every aspect of life. Innovation brings better access and smooth operation into the business. Innovation and its creative organization are not new to event industry also. Like all other industry, event industry also needs creative implementation in respect of process, product and services. Following points will shed some light into the basic need of innovation within event industry and its organization. A competitive advantage exists when a firm has a product or service that is perceived as better than that of its competitor (Gregory et al. 2005). In order to be competitive, a firm needs to achieve an innovative edge over other firms in the same industry. Primary concern for all business is profit. Hosting an event also has it focuses on economic return. Innovations “not only break the mold,” but they “yield far better returns and growth” (Masterman, 2004) than an ordinary business ventures. When customer perceives better satisfaction from organization of event, it provides better economic returns for the business. Progression of human well-being is the result of innovative initials. This may be considered as the least influenced reason for needing innovation but perhaps the most important result of achieving innovation. Innovative new products are essential to the progress of any society (Cohen, n.d). Apart from leisure time spending, each event contributes effectively to the civilization process in one way or the other. This is the most essential reason for adopting innovative idea. Irrespective of nature, every industry needs to have innovative thought and act according to it. Innovation is the path to economic growth. Innovation is the creation and transformation of new knowledge into new products, processes, or services that meet customer needs (Cohen, n.d). New approaches are necessary to bring efficiency and effectiveness into the business, which in turn results into the economic growth and development. “Dramatic increase in the scope and size of event industry” (Bowdin, 2001) and increase in the leisure time and discretionary spending, pave way for the dramatic increase in event industry and its size. Initially, event organization is carried by big firms with international tie-ups, but over the last decade, the scenario has changed. A separate industry with effective managerial tactics without the concern of size and area is developed and this leads to stiff competition in event industry and innovation is termed as the only source for survival. Potentials of innovation in the event and event industry Creativity and innovations are two important aspects that a business must incorporate into its performance for its success and growth. The potential that innovation has is comparatively complex as it concerned with event industry. Lovelock C.H and Wirtz .J 2011 stated that the creation of new service experience usually ranges from major service innovation through to simple change in the style of service delivery (Bowdin, G. 2001) Usually innovative potentials are applicable in the event and festival sector in the following ways. Major event innovation: Innovative introduction of new event itself is coined by ‘major event innovation.’ It means producing a new event or festival for previously under defined area or sector. However major event innovations are extremely difficult to identify in the already crowded and innovative event industry. Major process innovation: It refers to introducing new delivery pattern of events. Process innovation is implementing new process of delivery and exercising with added consumer benefits. For example, traditionally event tickets are provided in real world mode but now virtual tickets for all events can be possibly purchased through on-line. More significantly, the use of internet helps the event marketers to promote and market the event without much difficulty and it simplifies the process of event consumers. Live telecasting also enables the people to participate in major world events with least cost factor. Product (event) line extension: Event line extension refers to adding new events to the existing event or festival. This form of development is quite common. For instance, including stage shows and other entertainment programs along with company meeting. Process (event delivering) extension: Changing the existing delivery practice to innovative procedure, this helps to make an effective and attractive organization. Using internet ticket agencies, beverage and food vendors are able to book space in the festival area. Supplementary service innovation (Bowdin, G. 2001): Supplementary service innovation denotes allowing extra services like ATM, medical care, conference venue, along with main event service Types of Innovation Innovation extends from introducing an entirely new product or service to modification of existing product or service. There are usually four types of innovative practices. Invention (Kuratko, 2009) refers to a revolutionary introduction of new product. E.g., Invention of steam engine by James Watt. Extension (Kuratko, 2009) refers to the expansion of already existing services, product or process. E.g., Invention of Twitter by Jack Dorsy in 2006. Duplication (Kuratko, 2009) is the creative replication of an existing product or service by adding entrepreneur’s creative touch to enhance the concept with a view to beat competition. Eg: introduction of departmental stores by Wal-Mart. Synthesis (Kuratko, 2009) is the process of combining existing concept and factor into a new frame work. E.g., Introduction of FedEx by Fred Smith. Along with this, the concept of innovation can be subdivided into four categories. Reinforced Overturned Unchanged System/ Linkages Changed Incremental innovation ‘refines and improves’ an existing layout through improvements in the respective components and elements. However, it should be noted that these are improvement not changes, as the components are not radically altered. Incremental innovations are common. Gradual improvements in knowledge and materials lead to most products and services being enhanced and improved over time. Radical Innovation calls for a whole new design, ideally using new components configuring in a new way. It is often associated with the introduction of a new technology. Modular innovation uses the architecture and configuration associated with the existing system of an established product, but uses new components with different concepts of design. In architectural innovation, the “components and associated design concepts remain unchanged but the configuration of the system changes” (Type of Innovation. n.d) as new linkages are instituted. Approaches to innovation All visionary entrepreneurs need to know the best method of entering into a business. The way to approach a new entity is to create a unique product or service, or by adopting something that is currently available in the market in a limited way The first approach is called ‘new-new’ approach and second one is ‘new-old’ approach. New-New Approach (Kuratko,D.F. 2009) refers to entering into a market with extremely exclusive product, services or process. New –Old Approach (Kuratko,D.F. 2009) implies modifying the existing product, service or process with new innovative idea. It means, adding some additional features to the existing product, service or process. Evidence of Innovative practice in London Olympics 2012 perspective. “Sustainability was an important element of our bid and underpins our preparations and our vision for the legacy of London 2012.” (London Assembly Environment Committee. 2012) London 2012 Chairman, Seb Coe The London Organizing Committee of the Olympic Games (LOCOG) is responsible for preparing and staging the games. They are responsible for fund raising for these games and will let most of the contracts for services to deliver and run them. The most important reason along with the pride of hosting Olympic or as such events is the benefit derived for the host country. These are not just quick fix boosts for tourism and inward investment; the game can be a springboard for regeneration and development20. In the London Olympics background, UK preferred a logical choice in the host location as they took most advantaged area of the English capital and the entire design was assigned to the Populous Company. Populous is an architectural firm specializing in the design of sports facilities and convention event, as well as planning of major special events. They are the masterminds behind ‘the Olympic stadium located at Olympic Park in Stanford, London, UK. The task of achieving a perfect balance between the immediate need of the large game stadium against a long term, small scale venue, Populous have embraced the opportunity to develop the architecture language of venue design and have succeeded in it. While hosting Olympic events, the crucial task for the host country is the designing and building of impressive and attractive stadium, which must have all sorts of facilities, especially the seating arrangements. Example is appended as Annexure 1(London 2012 Olympic Park Master plan . 2012) Link between innovation creativity and entrepreneurship in event sector Event management industry is considered as one of the fastest growing industries in the world. Planning and execution of event can be very difficult, especially in the complex global market. To sustain in a high level of competition, entrepreneurs should successfully employ innovation and creativity in their business. Creativity, innovation and entrepreneurship are interchangeably linked with each other. Creativity involves the process of gathering and sharing of ideas, innovation focuses how to implement the creative idea, and entrepreneur is the one who searches for ‘change’(Drucker, 1985) and exploits it as a business opportunity. Peter Drucker argued that innovation is the specific tool for entrepreneurs, which means that they exploit changes through an opportunity for a different business or a service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced. The ultimate aim of every event management is to create a unique experience for a target audience with the available resources. All successful events are backed by an innovative idea, which is an outcome of creative and unique thinking. Implementation of creative innovation is possible only by a visionary entrepreneur. CREATIVITY AND INNOVATION Creativity and innovation go hand in hand, even though one can find some differences between them. If people work together, then the output will be more than that of the output achieved by an individual. This element is called synergy. Before going to the synergy between these two, one needs to go through the similarities and differences between creativity and innovation. “Creativity can be defined as the production of novel and useful ideas, while innovation refers to the implementation or transformation of a new idea into a new product or service, or an improvement in organization or process” (Baldacchino,L.2009). For making an innovation, creativity is a must. Only creative people can make innovations. Synergy between Creativity and Innovation: If one person is creative or if he has the ability to make something creative, definitely that person is considered as an asset to the organization. If at all an organization is planning to make its products creatively, but the implementation part is weak, then there will not be any synergy. The real synergy occurs when a creative idea is discussed within the firm and when there is successful implementation of the idea for the achievement of the pre-determined goals. Those ideas will be very difficult for the competitors to follow or imitate, and can be considered as the competitive advantage of the firm. Since creativity is thinking up new things and innovation is doing new things, (75 Quotes about Creativity and Innovation. n.d) always there is some synergy between them. Creativity verses innovation One can be creative without being innovative. This is because if a creative idea comes into one’s mind, and the individual is unable to implement it, then also it is still a creation. But one cannot be innovative without creation. This is because creation is considered as the first stage of innovation. A person can innovate something only when we develop a creative thought. Creativity is creating something new with a new combination of existing elements. Whereas, innovation means creating a completely new product. In that sense, a person can be creative without being innovative. Creativity can be considered “as the first stage in innovation”. (DTI Economics Paper, 2005) A company whether dealing with product or services can be only creative that is, they can survive in the market by making different combination of existing elements. In such cases, it is very difficult for the company to maintain its competitive advantage in the long run. But if it is an innovative firm, they will produce different products or follow different processes or render entirely different type of services. Through this they can maintain their competitive edge in the long run and they can be the leader of the market. Reference List Raj, R. 2009. Events Managements an Integrated and Practical Approach. 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Drucker, P. F. 1985. Innovation and Entrepreneurship.BH. Available at [Accessed on 19 February 2013]. Intext; (Baldacchino,L.2009) Baldacchino,L.2009, Entrepreneurial Creativity and Innovation. University of Malta, Malta. [Accessed on 19 February 2013]. (75 Quotes about Creativity and Innovation. n.d) 75 Quotes about Creativity and Innovation. n.d. World Innovation and Creativity Week. Available at< http://www.american.edu/training/Profdev/upload/April-6-Quotes-on-Creativity-SCB-2.pdf> [Accessed on 19 February 2013]. Intext: (DTI Economics Paper, 2005) Creativity, Design and Business.2005. DTI Economics Paper Available at [Accessed on 19 February 2013]. (Understanding Innovation.2008) Annexure 1 The London Olympic Stadium is sited on a diamond-shaped island between two existing waterways, located within the southern section of the new Olympic Park. The seating bowl is compact, bringing all 80,000 spectators far closer to the event than previous Games venues. The design makes full use of the site’s island situation, providing a complete circuit of innovative spectator podium concourse around the stadium, connected by bridges to the main park. This podium concourse promotes the carnival nature of the event with a perimeter array of spectator facilities, particularly retail and food service, distributed along the natural boundary of the water’s edge. During the three hours of an athletics event, spectators are free to move from their seat out onto the podium to visit these colourful clusters of concession pods, and view across the waterways the activities in the adjacent park and venues.(POPULOUS DESIGN) Read More