Innovation and Planning in Organizations

Running head: INNOVATION AND PLANNING IN ORGANIZATIONS
INNOVATION AND PLANNING IN ORGANIZATIONS
Name of the Student
Name of the University
Author Note

INNOVATION AND PLANNING IN ORGANIZATIONS1
Table of Contents
Introduction......................................................................................................................................2
Analysis of innovation theories.......................................................................................................3
Critical discussion based on innovation management literature......................................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

INNOVATION AND PLANNING IN ORGANIZATIONS2
Introduction
Innovation can be defined as the new idea, new imaginations and the creative thoughts
that are implemented for the purpose of developing new methods or devices. Innovation is also
viewed the as application of the better solutions that can help in meeting the new requirements,
existing needs in the market and the unarticulated needs as well. Innovation can take place with
the help of effective processes, products, technologies, services or the business models which are
available in the markets, society and government. Innovation is considered to be a process that is
effective and original and can also break into the society or market (Adegbile, Sarpong and
Meissner 2017).
Innovation can be related to the process of invention, however the processes are not
same. Innovation can be considered as the concept that is based on the production or the
adoption, assimilation and exploitation of the value-added aspects. The report will be based on
the detailed study of different innovation based theories that can be implemented by the modern
organizations in the changing business environment. The literature review will be based on the
detailed discussion related to the various innovation theories that are used by firms operating in
different industries (Bagella 2018).
Amazon.com Inc. is a global technology based organization of American origin which is
mainly based in Seattle with around 750,000 employees. The organization mainly focusses on
the development of e-commerce, digital streaming, artificial intelligence and cloud computing.
Amazon has also been able to gain its position as a part of the Big Four technology based
organizations that include Google, Microsoft and Apple. Amazon has been able to gain its
position as one of the well-established organizations that has been able to disrupt the processes

INNOVATION AND PLANNING IN ORGANIZATIONS3
of companies in the retail industry. Amazon was established by Jeff Bezos in the year 1994
(Amazon.com, 2020).
The theories that have been taken into consideration for this analysis mainly include
Schumpeter’s Creative Destruction model, incremental and radical innovation theory, diffusion
of innovation theory, Open innovation model, disruptive innovation theory, blue ocean strategy,
red ocean strategy and business model canvas. The examples will be based on the organizations
that have been able to implement the innovation theories in an effective way in their operations.
Analysis of innovation theories
The ability that has been developed by an organization to innovate its operations is
considered to be a vital part of the firms. The organizations aim at making huge investments and
have also implemented different ways for the purpose of enhancing the levels of innovation in an
effective manner. Various facets of the ways by which firms can innovate have led to the
development of innovation management discipline. The firm’s ability to implement innovations
can be explained with the help of proper application of innovation theories (Bagno, Salerno and
da Silva 2017).
Schumpeter’s Creative Destruction – Joseph Schumpeter who is an Austrian economist
has considered innovation to be a critical aspect of the economic changes and he also believed
that economic changes can take place due to the implementation of innovation in the
organizations and the various entrepreneurial activities as well. The economist has mainly
focused on the impact that various market innovations have on the capitalist systems (Caetano
2017). Creative destruction is a term that has been developed by the economist which is mainly
based on the process related to industrial mutation that is implemented by Amazon in order to