Innovation Management Solution Assignment

Innovation
Management

Table of Contents
.........................................................................................................................................................3
Innovation Theory............................................................................................................................4
Internal Factors ...............................................................................................................................5
External............................................................................................................................................7
Recommendation: ...........................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

Innovation Theory
Innovation has been found to be one of the most essential considerations of an entity and
it can be easily said that its role within a company is inalienable (Helper and Henderson, 2014).
This is an aspect which demonstrates the extent to which a company engages in new product
development or value addition within existing offerings. Innovation can be formulated in the
premises of a company in the form of a product, service, process, method or technique. This is a
crucial element that provides a competitive advantage to company in market place. Innovation is

a driving force that provides assistance to a corporation in gaining the attention of a large base of
population with a view to keep them in-tacked with the entity for a long run. In addition to this,
innovation is successful at provision of satisfaction to customer base by rendering such kind of
offerings that possess the capability to meet the needs and preferences of people within the
market.
The necessity of bringing about innovation within product, process, services or
techniques is ascertained with the help of R&D business unit. This department is involved in the
process of carrying out constant market research in relation to determination of latest techniques
as well as trends persisting within the business sector. The organisation then carries out such
steps with the help of which advanced technologies or processes can be implemented within the
company. This assists them in gaining recognition in market place, thereby enhancing the share
in global market.
Diffusion Of Innovation (DOI) is regarded as one of the most historical social science
theories. Usually it is taken into use for the procedure of communication and depicts the various
ways by which an innovative idea or concept can be effectively communicated through the usage
of a number of channels. Over years, GSK Pharmaceuticals has been engaged in the process of
coming up with rapid innovations at punctual intervals. With the help of this theory, the
company has been coming up with new drugs that possess the capability to restrain the impact of
mode of such viruses such as by way of air, water or land. DOI theory assists an entity in gaining
knowledge regarding the manner in which innovation initially gain momentum and post that,
diffuses within a certain population. The last result of such kind of diffusion is the adoption of a
new idea or concept. The most significant and essential impact of such adoption is that people
are able to perceive the new product, i.e., the drug sold by GSK Pharmaceuticals.
In accordance with the Diffusion of Innovation (DOI) Theory, adoption of innovation
needs time for people to effectively comprehend the features of the new product and post that,
makes a purchase. The innovation brought forward by GSK Pharmaceuticals within past times in
terms of powerful and effective drugs were not able to gain the attention of people in beginning,
yet with inflexion of time, these drugs were able to capture around three quarter of consumers in
the market place. Further, the innovation that will be brought by GSK Pharmaceuticals in terms
of new and innovative drugs will also require time to develop a favourable brand image amidst a
wide base of people. As per DOI theory, there are certain factors that largely influence the rate at