Decentralised Service Provisions: Summary and Evaluation

Decentralised Service Provisions: Summary and Evaluation The value of de-centralised provision of  Public Services Introduction Gordon Brown, likely to become Prime Minister in mid-2007, has been known to consider decentralisation of public services an important factor of local community government (Simon Jenkins 2007). Public services are defined as those goods that are provided for the benefit of the whole community and from which no individual can be excluded. The main question however, is whether these services are more efficiently administered through and decentralised authority and, if so, what size of local organisation is required to achieve these objectives. Efficiency of local public service provision Provision of public services through local authorities in the twentieth century developed because it was not possible for Parliament and its twenty-one ministers to maintain control of these factors (Jones and Stewart 1983, p.10). In recent decades, because of improvement in communication and cost reduction, more responsibility for public services has been decentralised (Doherty and Horne 2002, p.104) because it is seen to be an efficient method. Indeed, Bentham (1973, p.216-20) argues that local and regional levels of government are the only way to ensure that efficient public services can be delivered. Efficiency is measured by two factors, being the perception of the consumers to whom the service is rendered and the cost efficiency of the process. In terms of the consumer, a report conducted by the Lyons inquiry found that the consensus of local communities deemed local authorities to be more efficient suppliers of most public services than central government. For example, as can be seen from graphs 20 and 25 of the report (see figures 1 and 2), the majority felt that local authorities would provide a service more appropriate to local needs, in the latter case relating particularly to the area of local transport. A similar percentage (graph 29) felt that community policing would be managed more effectively and efficiently by local authorities than through a centralised body. The same community response was found with many other areas of public services, including education, with a key element in this efficiency process being measured by the fact that the authority was in a better position to communicate with their local community and understand the local environment. Furthermore, the communities surveyed that local authorities are more appropriate managers of funds than central government and should be able to determine, collect and administer their own revenue, with many of the participants supporting locally raised income taxes or charging for specific services. For example, as can be seen on page 75 of the same report, most were of the opinion that local authorities should set and retain the local business rates, not submit it to central government as at present happens. The summary findings of the Lyons Inquiry (page 2), agreed the above that, in terms of the delivery of public services, local authorities were the most efficient and effective method of ensuring that the needs and requirements of the local community were met. In the past, one of the main criticisms of local authorities was that they had become too bureaucratic and therefore cost inefficient. The levels of employees and other resources used, far exceeded the requirements of the services being provided. Furthermore, the impression was that the organisations were devouring a disproportionate percentage of the funding being raised through rates and grants. This public perception was one of the main reasons for the controversy that surrounded the ill-fated community charge and that has led to concerns over the increasing level of council taxes. Although the Secretary of State for Transport, Local Government and the Regions (2001) suggested that the size of local authorities is not an issue, this is clearly not the case. Whilst it is not possible to identify a set size for a particular local authority, as with any other organisation there is clearly a need to for service provider to ensure that the cost of provision does not result in an unacceptable cost attracting to the consumer of the service. Efficiency equally applies to the structure of the authority as well. One way to ensure that the authority remains resource efficient is to implement quality controls, such as the ISO 9000 standard that in 2002 had been introduced into some departments of approaching a quarter of local authorities throughout the UK (Docherty and Horne 2002, p.148). Furthermore, it is the task of the Audit Commission is to monitor the efficiency of both the services provided and the provider. In the case of the latter, it is incumbent upon the commission to ensure that resources are not wasted. The size of the authority can thus be measured by the ability of the authority to deliver the public services and goods to the members of the community through the efficient use of the appropriate level of resources. Conclusion The members of the public and Lyons are agreed that the local authority is the most efficient method of delivering public services. However, it is important that this service is provided by an organisation that is of an appropriate size, as measured by its own internal efficiencies. References Bentham, J (1973). Bent ham’s Political Thought. Croom Helm. London, UK. Doherty, Tony and Horne, Terry (2002). Managing Public Services: Implementing Change. Routledge. London, UK. Jenkins, Simon (2007). Public services with a heart. The Sunday Times. London, UK Jones, George. and Stewart, John (1983). The Case for Local Government. Allen and Unwin. London, UK. Lyons, Sir Michael (2007). Place-shaping: a shared ambition for the future of local government. Final Report. HMSO. London, UK. Lyons, Sir Michael (2006). Lyons Inquiry – Public Deliberation Events. Retrieved 3 May 2007 from http://www.lyonsinquiry.org.uk/docs/061120-consultation-public.pdf Secretary of State for Transport, Local Governments and the Regions (2001). Strong Local Leadership – Quality Public Services. HMSO. Retrieved 3 May 2007 from http://www.communities.gov.uk/pub/215/StronglocalleadershipQualitypublicservicesDTLR2001PartOne_id1165215.pdf YOTEL: Analysis of Innovation Practices YOTEL: Analysis of Innovation Practices 1.1 YOTEL YOTEL is audaciously described by its founders as a revolutionary new hotel conceptà ¢Ã¢â€š ¬Ã‚ ¦ creating a stir in the hotel industry. The companys concept and execution can be translated into the same entrepreneurial initiative that has been driven many leading organisations in hospitality, tourism and events over the years. Creative entrepreneurs with the vision, courage and knowledge to put their concepts into place dominate the history of tourism. (Middleton et al., 2009). YOTEL was created by YO! Company founder Simon Woodroffe and Gerard Greene, YOTEL current CEO. It is the accommodation brand of the Yo! Company Group founded in 1997 by Simon Woodroffe with the creation of his first brand of restaurants YO! Sushi. The accommodation brand concept was inspired by the capsule hotels in Japan and BA First Class cabins. In 2002, Simon Woodroffe, already interested in the Japanese capsule hotels, was upgraded to a first class sleeper cabin. He decided then to melt luxury airline travel with Japanese capsule hotels and convert them into small but luxurious cabins for implementation at airport locations. Gerard Greene, a former hotel analyst and executive with Hyatt and Marriott hotels, evolved that idea into reality with YOTEL. The concept has the intention to deliver economies of scale within a minimum volume of space and a outstanding and comfortable consumer experience at a relative very competitive price (Middleton et al., 2009) In summer 2007, the company opened a 46-cabin YOTEL in London Gatwick Airport, succeeded by a 32-cabin YOTEL at Heathrow Airport in the winter of the same year. (YOTEL Limited., 2008) YOTEL at Amsterdam Schiphol opened in Summer 2008 and a 669-capsule site will open in New York City in 2011. Since 2005, IFA (International Financial Advisors) Hotels Resorts is the major investor in the company. In 2008, YOTELs CEO acknowledge an affiliation Memorandum of Understanding with ADNH (Abu Dhabi National Hotels) in order to expand YOTEL also in the capital of the United Arab Emirates. Two YOTELs are going to be built in the International Airport and in city centre of Abu Dhabi, and other locations are also under negotiation. (IFA Hotels Resorts, 2007). As Simon Woodroffe comprehend the holy grail of retail today is to constantly and never endingly innovate in order to deliver high luxury without the high cost (YOTEL Limited, 2008). Competitors will unavoidability come to the market with innovations or ameliorations of existing products which will change the basis of competition: for this reason the ability to create, evolve and adapt is indispensable for any business to stay alive. The companys concept as well as the founders values and culture, suggests that the company is potentially innovative. 1.2 Report Structure The present report aim to identify and explore past, current and future innovation practices of YOTEL. Since the organisation was not created long ago it will concentrate mostly on the current and future practices. In particular the structure and content of the report is as follows: Part 2 YOTEL Current Innovation Practices. This first part will evaluate YOTELs existing innovation practices and how YOTEL shows signs of innovation in its sector. Evidence of how it appears to be innovative is supported by innovation theory. Part 3 YOTEL Future Innovation Practices. This part will appraise which innovations YOTEL might create and adopt in order to meet its future strategic needs. Propositions for possible ameliorations for the organisations are made here. This section will therefore consider YOTEL objectives, as well as New Product Development theories and WWW innovations in order to make appropriate and logical recommendations for the company. Part 4 Impacts of proposed Innovation upon YOTELs performance. This forth part is where the potential impacts of the recommendations made are considered. Advises and information about the consequences of the changes proposed are given for the attention of YOTELs management team. Part 5 Summary and Conclusions. This final part contains a brief summary of the report, as well as a conclusion based on the arguments presented. 2. YOTEL Current Innovation Practices Innovation is the act of creating a new product or process. This includes invention as well as the work required to bring an idea or concept into final form. An innovation may have various degrees of newness, from very little to highly discontinuous, but that must include at least some degree of newness to the market, not just to the firm (Crawford, 1994, pg. 472). As Crawfords definition suggests, innovation is a complex process which involves organisations effective management of activities such as idea generation, technology development and commercial exploitation. Schumpeter (1934) was among the first economists to recognize the importance of innovation for organisations to obtain long-term economic growth. His evolutionary theory has seen how companies success in the past, present and future lies in their capability to obtain and employ knowledge and apply this to the development of new products. Figure 1.1 Interactive model of innovation Source: Trott, 2008 adapted from B. Rothwell and W. Zegvelt (1985) Reindustrialisation and Technology, Longman, London. Overall innovation is a complex and continuous process which consists in transferring knowledge from different communication paths. These paths include external and internal linkages. In order for innovation to occur, there must be an interaction between the marketplace/customers needs, the latest sciences and technology advances in society and the organisations capabilities. Organisations able to manage this process will have successful innovation practices. In its past three years of life, YOTEL has demonstrate a good capability on managing the innovation process. It has been able to do so, using different types of innovation. As Trott (2008, pg.16) explain, there are seven different typologies of innovation: product, process, organisational, management, production, marketing and service innovation. 2.1 YOTEL Product Innovations 2.2 YOTEL Commercial/Marketing Innovations 2.3 YOTEL Service Innovations This part of the report will evaluate in which of these types of innovation YOTEL gives evidence of being innovative. YOTEL introduced in the hospitality market a new revolutionary concept inspired by the capsule hotels in Japan and BA First Class cabins: guest rooms, which are compact in size and incorporate multi-functional sofa beds and fold out study desks. The cabins have a design feature that means the windows are internal rather than external and through effective reflective lightening look out into corridors. YOTEL product innovation consists in a hotel which needs relatively small volume of space within airports. The type of hotel the company has introduces, was completely innovative in its market. Even if capsule hotels already existed in Japan, YOTEL has been the first hotel located inside a UK airport terminal. Moreover YOTEL differentiates itself from Japanese capsule hotels, sicne it is more luxurious and offers a wider range of comforts. Its rooms are larger than those in capsule hotels but are very small relative to traditional hotel rooms. The positive advance about YOTEL concept, is that it needs basic requirement. A YOTEL does not require space for parking, access on roads which other normal hotel do require. Moreover all the basic requirements for heating, lightening, water and lavatory provision are already immediately available at airports. But YOTEL is not innovative just in the product its offering, but also in its services. stylish yet affordable rooms. The aim of YOTEL is to provide a flexible and convenient business class hotel experience at affordable prices. The company aim therefore to combine luxurious and modern with affordable prices. This is an innovative practice since most of the hotels whicha re perceived as luxurious and modern are usually also very expensive. Moreover YOTEL does not combine luxurious with low prices, but also with small romm environment. The company referes in fact to his rooms with the world cabins. The idea was inspired by 1st class airlines cabins. Which category Lovelock, how would you classify Yotel product? What degree of risk with this NPD>? LUXURY AT LOW COST: magical formula Shower and Nap Combo: At London Heathrow, London Gatwick, and Amsterdam Schiphol, Yotel cabins can be rented in four-hour blocks. (No, its not that kind of hotel.) The podlike rooms (from $40/4 hr.) are tiny but comfy, with private baths and storage units. A virtuos circle of innovation (Trott, 2008: 96-98) (Categories of new products, link with innovation practices of YOTEL) [2] Room sizes are Premium (double), Twin (2 large singles, bunk style) and Standard (large single). Each features en suite bathrooms, flat screen televisions, free Wi-Fi, and 24 hour room service.[3] In his study of The Economic of Industrial Innovation, Christopher Freeman (1982) wrote that à ¢Ã¢â€š ¬Ã‚ ¦not to innovate is to die. Adaption and change are essential for companies in order to survive. Competitors will unavoidability come to the market with an innovation that changes the basis of competition: for this reason the ability to create, evolve and adapt is indispensable for any business to stay alive. The big dilemma of doing this within an organisation stays in the fact that innovating demands stability in order to be carried out efficiently and flexibility in order to create opportunities for creative thinking. Managing the tension between the need for creativity in a loose and flexible environment and the need for efficiency in a stable and controlled environment is therefore very important for organisations (Trott, 2008). Organisations have also to manage uncertainty and know how to respond to internal and external events, some of which cannot be controlled. Some examples of external challenges facing organisation in the innovation process are customer demands, new purchasing models, falling prices, early supply involvement, collaborative ventures, customer-supplier value chain and post release improvements (Ahmed and Shepherd, 2010, pg. 474). Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need is considered as a product. (Find another definition of PRODUCT) Yotel products, as any hospitality, events and tourism products, are service products delivering intangible experiences. Hospitality products are very diverse and customers are involved in the production process. Since people are part of the product process, these kinds of products are harder to evaluate. (Write about Scope of Hospitality products Hospitality Business Development) A new product is A good, service or idea that is perceived by some potential customers as new (Kotler et al., 2004, p.215). In simple terms innovation refers to any good, service or idea that is perceived by someone as novel or new (Kotler et al., 2002, p.215). A new product is a product being introduced to the market for the first time as a result of invention, innovation or improvement ( Keegan et al., 1995, p.418) (Change this definition) YOTEL CASE STUDIES http://unicenta.net/casestudy_yotel.aspx http://www.computing.co.uk/ctg/feature/1843555/case-study-yotel http://www.lorientuk.com/case-studies/yotel-london/ http://images.businessweek.com/ss/09/07/0720_budget_lodging/15.htm