OPPORTUNITIES FOR SME IN SSRI IN TOURISM
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Title of paper: Opportunities for SME in SSRI in Tourism
Authors: Ignacio Perez-Alcazar, Consuelo Lopez-Llopis, Erose Sthapit
ID number of abstract: 005
Theme: 3. Sales and service development
Mode of presentation: Paper session
Keywords: tourism, evidence, market
Opportunities for Small and Medium Enterprises in Social Spaces of Research and Innovation in
the field of Tourism. A practical method of services and sales development in touristic
destinations.
Ignacio Perez-Alcazar, Consuelo Lopez-Llopis and Erose Sthapit
COMONO Comunicación, Málaga
Author Note
Ignacio Perez Alcazar and Consuelo Lopez Llopis, COMONO Comunicación, Grupo
Servilleta, SL, Malaga, Spain
Erose Sthapit, University of Lapland, Rovaniemi, Finland
Correspondence concerning this article should be addressed to Ignacio Pérez Alcazar, COMONO
Comunicación, E-mail: [email protected]
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Abstract
Tourism products are still designed and developed from a destination perspective instead of a
tourist centred perspective. The aim of the methodology is to develop strategies with a global
vision, focusing on the user and with renewed value proposition. It is an iterative process and
involves the user of the product in all stages of the design process. Social Spaces of Research and
Innovation (SSRI) are innovative ecosystems in which research and innovation activities are
guided by the needs of communities that benefit from the results. It involves gathering real needs
and converting them into opportunities by expressing it as a value proposition within a business
model. SSRI activities pivot on the tourist and how the tourist destination and service providers
can help the customer to solve or satisfy a need with their product/service. The process consists of
five steps. The methodology contributes to improve management of resources, activities and the
quality of the destinations. The value proposition that the SME in the tourist destination offers to
the tourist is based on real evidences, so that a feasible and realistic business plan can be generated
and developed. The identified value propositions, market segments and revenue streams are
achieved through collaboration with stakeholders and users. The proposed methodology helps
SMEs to get returns in terms of visits and revenues and to take advantage during the economical
crisis by offering what is demanded.
Keywords: tourism, evidence, market
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Introduction and statement of the problem / aims of the study
This paper explains the practical method of co-design where services providers,
destination resources and tourists collaborate to develop integral tourism products and services
that increase the richness of the destination.
Destination resources are not exploited properly in order to reach the tourist, offering an
unattractive service or product. The touristic products and services are still designed and
developed from a tourist destination perspective instead of a tourist centred perspective, while the
tourist is the customer.
The aim of the methodology is to develop strategies with a global vision, with a focus on
the user, their needs, desires, concerns and expectations, and with the renewed value proposition
to give a change in the channel, based on reputation and communication. In fact, now, the user has
got a dual perspective from the SME’s point of view: the user as a tourist destination and as a
visitor of a destination.
Definitively, it is a change of perspective where the story is written in third person, where
the tourist/visitor is now the protagonist, instead of the destination (the “I” as destination, but the
“He” as the visitor).
The mechanism described below provides market evidences to the tourist destination and
their SMEs, in terms of reducing uncertainty and taking decisions. Exploration and research in
Social Spaces of Research and Innovation (SSRI) offers the opportunity to work on the real needs,
both the tourist destination and visitors. When we properly analyze the gathered information, we
are able to propose opportunities with the relevance of the market evidences, both quantitatively
and qualitatively, particularly emphasizing on the qualitative aspect because at the end, we are
trying to offer a full experience.
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Literature review and/or conceptual approach
According to ISO 9241-210 (2010), user centred design is an iterative process by which
products or systems are developed so that the user of the product or system is taken into
consideration at all stages of the design process including active user participation. Thus, we are
capable to get more usable product and services. Beyond usability, when we involve the
user/client/tourist in the different phases of a project, we are able to improve the final experience
of the outcomes. Products tend to be more successful both technically and commercially. It
defines four kinds of Human Centred Design (HCD) activities: (1) understand and specify the
context of use, (2) specify the user requirements, (3) produce design solutions to meet these
requirements, and (4) evaluate the designs against requirements. We cannot forget that a HCD
process is iterative: repeating a sequence of steps until a desired outcome is achieved. Thus, the
feedback from users is used to update and review the requirements in order to refine the solution.
Bach and Twidale (2010) have discussed the importance of reflexive user participation.
These participants ask questions and propose changes and alternatives.
Osterwalder and Pigneur (2010) define an easy-to-use model to design a business model.
This model allows building different prototypes of business model within a multidisciplinary
context. We are able to create a tangible visibility of a business idea and using the proper
techniques, the designer can test even the third dimension of a good: its business model. The
authors further state that the user is the final judge of the business model.
Ulwick (2005) advocates that if we want to get the best results, attention must be paid to
the customer needs in terms of jobs to be done, results to be achieved and/or constraints in
achieving the goals.
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According to Steven Blank (2005), many companies assume what customers want and
never involve customers. Hence, needs and expectations remain undercover, and finally the
product dies.
On contrary, Stickdorm and Schneider (2011) state that customers in western countries
are not looking only for products or services to solve their needs, but desirables and pleasurable
solutions to those needs.
For those unfamiliar with the Social Spaces of Research and Innovation (SSRI), they are
innovative ecosystems in which research and innovation activities are guided by the needs of the
communities that benefit from the results. They shall involve, in a balanced way, all the actors in
the research and innovation value chain, social communities, companies, technology suppliers and
governmental organization for the regulation and promotion of the results. End-users are actively
implied in all the stages of the innovation chain including the co-creation of new products and
services (Guzmán, 2010).
The aims of the methodological framework include collaboration between public
authorities, research centres, business and user communities, increased productivity of RDI
activities, creation and exploitation of new products, policies, services, technologies and business
models, facilitate the privileged access to markets, particularly SMEs etc. Also in these spaces
initial business hypotheses are tested on the market.
In practice, a SSRI is a region where people live and it is an open environment shaped by
local businesses, municipalities and their inhabitants. SSRI includes people that belong to the
community and take care of the infrastructure, known as “dynamizators” - while SSRI attracts
“innovators” who want to test their business, product or service hypothesis. Dynamizators ease
participation, confidence and help entrepreneurs to create a rapport.
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According to Spradley (1979), one has to create a rapport so that the participants in an
interview are actively involved and provide information. In this context, dynamizators create
rapport so that the interviewer (SMEs or the entrepreneur) is able to discuss and test their
hypotheses. As dynamizators belong to a community, it is easier for them to create rapport.
Figure 1. A typical SSRI is where people live. From a tourist destination perspective,
SSRI is the tourist destination.
Spradley (1979) introduced and described the proper mechanism to work with users.
According to him, ethnographic research helps to discover grounded theory about societal
performance and to understand complex societies because our culture is not homogeneous. The
work of ethnography can be divided into two major tasks: discovery and description by the
language. What language shall I use for asking questions and recording the meanings I discover?
The semantic is important and influences the research. For instance, children speak differently
when they are at school than when they are at home. Every ethnographic description is a
translation.
Finally, in 2012, Perez showed in the Bilbao AAL Summit, a collaborative design
process of business models involving potential users and customers. The process consists on seven
steps. The first one (1) is to understand the user’s context. Contextualization leads to a clear
understanding of what the market segments are and the relevant stakeholder. (2) Social research
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techniques help to understand stakeholder’s perception of the value proposition within a
workshop, which allows a first business model using Osterwalder’s model (Business Model
Generation, 2010). Thus, we get a first qualitative picture the market perception. (3) The business
model is refined and (4) introduced in a second iteration to the market representatives for further
development: real pricing, forms of payment and conditions of service start to emerge. A business
analysis (5) is done in order to bring up the market conditions. A last iteration (6) with
management takes place to management to present results. Finally, the market evidence based
action plan (7) is delivered.
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Methodology
SSRI concept is iterative and dynamic. It involves gathering real needs and converting
them into opportunities by expressing it as a value proposition in the context of a business model.
The SSRI innovation activities pivot on the ‘customer’ - in this case the tourist, and ‘How I, the
touristic destination and the service provider, can help the customer to solve or satisfy a need with
my product/service’. The emphasis is on (1) balanced representation of the indispensible
participants, (2) providing infrastructures for experimental issues, (3) implementation of the
principles guided by users, (4) active involvement of users in the co-creation processes, (5)
solution-validation tasks and real scenario testing and evaluation and (6) existence of common
strategic innovation objectives. The process helps to match the value proposition to the customer
needs, focusing on tasks that need to be undertaken, outcomes and/or constraints (Ulwick, 2005),
with the help of the existing product/service features and entrepreneur's skills and experiences.
It is important to notice that in the tourism sector, SSRI has to be understood in a dual
perspective: the tourist destination i.e. shaped by the SMEs, citizens and other organizations
located in the area, and the tourists or visitors to that area. Both can be customers of the local SME
at some point in the tourism framework. This dual perspective has to be taken into account when
exploring and testing hypothesis and trying to provide a common value proposition.
Thus, the process can be stated in five steps.
1.
The first dialogue between SME and “dynamizators” contribute in developing
rapport. According to Spradley (1979), the rapport process usually goes through the following
stages: apprehension, exploration, cooperation and participation. In this first step, dynamizators
act as interviewers and the SME is the informant. It is encouraged that dynamizators belong to the
SSRI with the support of experts on ethnography-sociology, business model generation and
service design.
OPPORTUNITIES FOR SME IN SSRI IN TOURISM
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The second step involves identifying critical areas, needs clarification or idea
generation in joint collaboration with experts and lead users using different SSRI techniques such
as idea generation sessions, workshops, focus group, interviews, discussions and storytelling. The
two steps help to elucidate the market segment and the value proposition. In other words, a better
understanding of the market for the participating company and in stating it as clear outcomes for
the client and tasks to be undertaken to achieve those outcomes and challenges. The SME needs to
gather other details in this process such as Official Tourism Organization's contribution. This job
will give an understanding of the first context: their resources, expectations and desires.
3.
The third step involves matching of the business idea, product or service with the
tourist’s needs, expectations and trends. This is how the SME converts a need and an idea into a
business opportunity. The value proposition will be influenced by (1) their experience and the
offer (their product/service) to meet the needs, (2) how does the product/service differentiates
from those of the competitors and (3) what can be done to make the offer more superior, and (4)
the possibility to undertake changes with the given resources and actors to collaborate with. The
outcome is a set of business hypotheses that are documented, in order to be tested in the SSRI.
4.
In the fourth step, business and service hypotheses are tested in the SSRI with
‘tourist’ and ‘agencies’ – users in general, using a set of SSRI techniques such as interviews,
concept tests, conjoint analysis and workshop. The tourist/visitor does not produce the solution
but is capable to give valuable information during the testing of the hypothesis. The feedback can
be gathered in three non-consecutive dimensions: product dimension, service dimension and/or
business dimension.

As product, testing of usability, ergonomics and user experience.
OPPORTUNITIES FOR SME IN SSRI IN TOURISM

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As service, testing of service blueprint and use cases, which influence the
operational activities and the future exploitation plan.

As business, testing of business model hypothesis: the accuracy of the market
segmentation and value proposition as well as revenue stream model.
Thus, the SME learns and reinstates the hypotheses until the business model design has
sufficient market evidences by holding workshops with users that allow for a business model,
which the SME feels comfortable with and is capable to communicate –agencies must know the
product and service in order to settle as destination. At same time, the solution must meet the
tourist/user requirements. It is a process of systematically validating the hypotheses against the
reality and making course-corrections, or pivots, along the way (referred to as selection and
concretization). It is important that users in general know what the company provides and whether
they are willing to pay for that offer. This step allows also to gather information about the revenue
streams. Communication and sociological skills are important in this step to take advantage of the
opportunity to test the hypotheses and the message to be used to sell, based on the value
proposition and its dissemination. The four steps are ideation phases and provide information on
what tangible materials are needed in the process. The role of dynamizators is crucial in this stage,
in order to develop a rapport with the tourists/visitors –informants, actors or respondents (Spradley
1979).
5.
Next step will depend on the existence of a pilot to test. After the tests, one can
proceed with the service design, production/operations model, concluding with a business plan
and then, for the approval of investment. This is a so-called iterative process.
At the end of the fifth step, the SME is in the position to “generate” and “develop” a
business model, for example, the business model canvas (Ostervalder, 2010). This tool provides a
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mechanism to define the activities, resources or partners that the tourist destination will need in
order to make the business succeed.
The conceptual figure bellow represents the dynamic of hypotheses assessment in SSRI.
Turning real needs into business opportunities will depend on the SME’s innovation skills in the
three dimensions. Designers and dynamizators are key figures that sustain the process to succeed.
Figure 2. Process of hypotheses assessment in SSRI.
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Results
The methodology contributes to improving the management of resources, activities and
the quality of the destinations, in addition to analyzing the information that users generate and the
information that touristic products offer.
The value proposition that the SME – in the touristic destination, offers to the tourist is
supported on real evidences, so that a feasible and realistic business plan can be generated and
exploited.
The methodology also contributes to communication and dissemination activities. It gives
the SME an opportunity to elucidate the key message, the channel and the proper channels with a
proper combination of them, in order to use the economic resources efficiently, in the framework
of tourism where there is a dual perspective of the SME’s customer: the tourist and the tourist
destination.
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Discussion, conclusions, implications for practice
The identified value propositions, as well as market segments and revenue streams are
achieved through collaboration with stakeholders and users, which brings the character of
evidence. Participatory design techniques and the generation of business model tools are used in a
cyclical and iterative manner while contacting participants is the most time-consuming and costly
task.
Tourist destination – the SME, seek returns in short term as visits and revenues. The
methodology proposed helps to take an advantage during the economical crisis period by offering
what really is demanded.
The SMEs within a tourist destination are very competitive and an extra effort might be
needed in order to offer a common destination offer.
The five steps provide a first mechanism to reduce uncertainty based on the market
evidences. But they are just the first stage. We strongly believe that we need those evidences to
carry on with the design and development of product and services. In this case, both Moritz
(2005) and Stickdorm and Schneider (2011) provide full sets of methodologies and tools to carry
out the service design.
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References
Bach, P., & Twidale, M. (2010). Involving reflective users in design. CHI '10 Proceedings of the
SIGCHI Conference on Human Factors in Computing Systems, 2037-2040.
Blank, S. (2005). The Four Steps to the Epiphany: Successful Strategies for Startups That Win. K
& S Ranch.
Guzmán, J.J. (2010). Social Spaces for Research and Innovation as organizations for innovation
based on user engagement. Universidad Carlos III - CISVI's Technical Manager-AAL
Forum, Odense. Retrieved from
http://www.espaciossociales.es/
Moritz. S. (2005). Service Design. Practical Access to an Evolving Field. Retrieved from
http://www.service-designnetwork.org/system/files/media/PracticalAccesstoServiceDesign.pdf
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. New Jersey: John Wiley &
Sons Inc.
Pérez, I. (2012). Client Centered Design of a business model for an AAL project. 2012 AAL
Summit Bilbao.
Spradley, J. P. (1979). The Ethnographic Interview. New York: Holt, Rinehart & Winston.
Stickdorn, M., & Schneider, J. (2011). This is Service Design Thinking. New Jersey: John Wiley
& Sons, Inc.
Ulwick, A. (2005). What Customers Want: Using Outcome-Driven Innovation to Create
Breakthrough Products and Services. McGraw-Hill
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Biography of authors
Ignacio Pérez-Alcázar is a Telecommunications Engineer and qualified Trainer. He holds
a master’s degree in Mobile Communication and a MBA. He has worked in Vodafone developing
products and services for ten years and has a three years experience as Head of laboratories and
business relations in I2BC Foundation. He has also worked in ValueCreation and the Polytechnic
University of Madrid for designing business models, innovation management and user experience.
He is the founding partner of COMONO Comunicación.
Consuelo López-Llopis holds a master’s degree in Business Communication and Protocol
and in Business Communication and New Technologies. She has professional experience
background in business communication in different sectors and in agencies communications
departments. She has also worked as Head of Advertising and has worked in various media. She is
founding partner of COMONO Comunicación.
Erose Sthapit (M. Soc.Sc., Tourism Research) is a master's degree student at the
University of Lapland. He has a bachelor‘s degree in Business Studies and Hospitality
Management. He has worked in several research projects undertaken by Laurea University of
Applied Sciences, Kerava unit as a Research and Development Assistant. He was involved in
planning, preparing and executing application within EC´s FP7 calls and national Tekes project
application. He collaborates regularly with COMONO Comunicación.