Strategic Innovation & Business Model Development with Generative AI

A Destination Management Organization faced the challenge of developing new business models to secure sales and increase contribution margins. Using generative AI, we designed and managed a comprehensive innovation process that minimized time and cost requirements while delivering validated, actionable strategies.

Overview

  • Public/private body in the travel and tourism industry
  • Employees: approx. 100
  • Project duration: 8 months
  • Core team: 11 (incl. Navar, our AI team member)
  • Affected People: Sales department and overall business strategy (approx. 50)

The challenge

The client needed to expand their product portfolio and define innovative business models to stabilize and increase self-financing shares. Addressing this challenge required combining creative ideation, rigorous validation, and strategic alignment with market trends.

Our approach

We designed and managed a comprehensive innovation process with a special focus on integrating generative AI to minimise time and cost requirements:

  • Market Insights and Portfolio Analysis: Conducted in-depth research on market trends, competitive dynamics, and untapped opportunities within the existing portfolio.
  • AI-Powered Ideation and Validation: Leveraged generative AI to generate and refine business ideas, simulating target audience personas for validation.
  • Focus Group Testing: Engaged real-world stakeholders to validate and optimize proposed business models.
  • Optimised Execution: Adopted an AI-first methodology to enhance efficiency across all project phases, from ideation to implementation.
  • Evaluation and Recommendations: Prioritized ideas based on revenue potential, implementation effort, and risk, delivering clear next steps for the client.

Our added value

Our contributions to the project delivered tangible value across multiple dimensions:

  • Innovation: Generated business models that secured and potentially increased sales and contribution margins.
  • Efficiency Gains: Reduced project duration and costs thanks to AI-optimized processes.
  • Validated Solutions: Tested ideas through AI simulations and focus groups to ensure market fit.
  • Future-Proofing: Empowered the client to take the first steps toward becoming an industry leader in AI-driven innovation, laying the foundation for sustained growth.  

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