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Diffusion Of Innovation Assignment

   

Added on  2020-10-05

14 Pages4256 Words84 Views
MONZO CASE STUDY

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11.) Description of two innovation theories..................................................................................12. Explaining the role of innovation theory in historical and future development of productsand services of entity...................................................................................................................5RECOMMENDATION...................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10

INTRODUCTIONMonzo Bank Ltd is the mobile only bank which operates its business in UK. Generally,bank operates through mobile app and a prepaid debit card with prepaid debit card with thelicence of banking. In this report, detail explanation will be provided on one or more theories ofinnovation by which proper strategies will get analysed in order to improve the services offeredby organisation. Further, in this report strength and weakness of innovation theory will also getdiscussed by which proper recommendation will be provided for the better development ofservices. Moreover, historical development of entity's services will also be discussed in thisreport. In this report diffusion theory of innovation will be going to be explained. This is one ofthe oldest social science theory which describe innovation life cycle for a product. This is thetheory which explain to organisation that how, why and at what level new ideas and technologiesin business operations will get spread. however, Monzo Bank Ltd is a digital online based bankwhich originally operates through a mobile app. This is the bank which mainly founded in 2015and which set the record for "quickest crowd-funding campaign in history." It is because itscustomers raised approximately £1m which is also in 96 seconds through Crowdcube ivestmentplatform. MAIN BODY1.) Description of two innovation theoriesDiffusion theory of innovation:This is the theory which explain to organisation that how, why and at what level newideas and technologies in business operations will get spread. This theory is been published bythe Everett Rogers by stating that diffusion is considered as process by which innovation andcreativity will get communicated in a time period among participants in a social system. Underthis theory more emphasis is provided on communication which explains that people as a part ofsocial system will easily adopt new ideas, behaviour and products (Hartmann, 2019). There arefour main elements which influence in spreading new ideas which include innovation itself,communication channels, social system and time. However, it is also true that innovation is thetype of process which completely depend upon human capital. If entities wants to sustain over alonger period then they must have to widely adopt the process of innovation. How diffusion theory help Monzo to get where is now1

It is true that Monzo's users constitute innovators. Bank mainly offering strategies inorder to identify its uniqueness and strengths. Through this innovation theory it helps entity indeveloping innovative, communal, efficient, transparent operations so that customers getattracted. This is the main reason because of which entity able to attract more customers whichlead company success. there are mainly two ways because of which Monzo bank able to acheiveits success which include:Crowdfunding: This is the technique which mainly adopted by entity in order to raise moneythrough charities, people and businesses. Monzo Bank Ltd. have mainly adopted this technologywhich is through investment in time and trust. It is found that through last two rounds of crowd-funding, 7395 invested their money in the business operations of such bank. In this companyallowed customer over the age of 18 with the opportunity in order to invest up to £2000 whereshares are also get offered at £7.7145 per share. Digital module: It is true that traditionally banks are looking for options to develop digitalbanking apps in order to completely separate digital bank. But Monzo is the newest licenseddigital bank of UK which has taken an initiative where new product development and customerexperience get enhanced.This theory emphasizes that promoting innovative activities it is important that entitymust have to understand the nature and characteristic of target population. There are fivestrategies which propounded by the author which are as follows-Innovators:These are the types of people who wants to be first try innovation. They are generallyentrepreneurs who are interested in generating new ideas and generally they are very willing totake and risk.Early adopters:In this generally category of people came who represent opinions of the leaders. Theirwork is to grasp changing opportunities by which business achieve its success (Malerba andMcKelvey, 2018). They are generally aware of the things which needs to change and becomescomfortable with changed operations.Early Majority:2

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