Advantages and Disadvantages of Innovation

Added on - 19 Feb 2021

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INNOVATION
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3TASK 1............................................................................................................................................3Explain one innovation theory and the critical evaluation of that which includes theAdvantages, Disadvantages and the factor affecting..................................................................3TASK 2............................................................................................................................................6Explain the implication of the innovation theory in the context of the organisation..................6CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONThe term innovation refers to a procedure where once ideas or creation are transfigured intovaluable goods or services for which one can pay if product is in need. Revolut Ltd is a Financialtechnology company started by Nikolay Storonsky and Vlad Yatsenko in 2015 and is located inLondon, United Kingdom. Company basically provide banking products such as current account,Insurance, remittance, different payment solutions like debit cards. It also provides variousbanking services such as currency exchange, cryptocurrency, peer to peer payments etc. It hasalso developed a mobile app which assist spendings and ATM withdrawals in different countries.In 2018 company have licensed from European central bank with the help of which it hasauthorisation to accept deposit and give customer there credit value. Company is having 630+employees who are dealing with 2 million customers. Company helped businesses throughoutthe UK and Europe by excluding unfair banking fees and introducing different services to therecustomers. These value adding services increased there scope in market. Revolut have introducednew business app which can open an account in just five minutes and can transfer money fromdifferent currencies. This report explains the innovation theory which is used by the organisationand the critical evaluation of that theory. Further these report explains the implication of thesame theory in the organisation context.MAIN BODYTASK 1Explain one innovation theory and the critical evaluation of that which includes the Advantages,Disadvantages and the factor affectingInnovation Theory developed by E.M. Rogers in the year 1962 explains how the idea or the newproduct gains the name and spread through the different population. Diffusion of Innovationtheories end motive is to give knowledge about the adoption to the population about the newidea, behaviour, or product. Adoption means that individual do something different or new whichindividual has not tried in the past. Adoption or innovation is not a thing which strikessimultaneously it is the process. As researcher in past has found that there is quite a bit differencein the characteristic of an individual who has found the innovation early as compare to the onewho has found it later and for explaining the same Diffusion theory shows that there are fiveadopter categories:3
Innovators:These is the group of the population who are the one to try the innovation, thesegroup of the individual includes the individual who are very creative in their thoughts and alwaysbelieve in the new ideas. They are the one who are ready to take risk and invest on the new ideaand they are the one who brings the new changes or product in the market for the very first time.They are the one who are having good financial resources and the good skills to understand,evaluate and apply the good technical knowledge(Tidd and Bessant, 2018).Early Adopters:These is the group of the population who are the leader and they enjoy theleadership role, Individual in this group used to have a beforehand idea of the opportunity whichis prevailing in the market for the requirement of the innovation and it helps them in adopting thenew idea. They used to give a suggestion and the information on the outcome which has beensorted by the other individual. These are the group of the individual which are respected by theother in the organisation as they are the one who are having the reputation of the superiorknowledge individual.Early majority:They are the one who used to see or observe the new idea just before the otheraverage member in the social system of the population they are the one who does not have anyleadership or superior position but are the one who regularly interact with the leaders about theopportunity as they are having a knowledge which can help the leader, As many philosophercalls them a mediator as they play a very crucial role in the diffusion process as they are the onewho creates a very good link between the early adopter and the late adopters.Late majority:They are the group of the individual who does not believe in the innovation theyare the one who are forced or required to make the innovative change because of the innovativechange which are made by the other individual in the social system. They are the one who doesnot like to take a risk and is very cautious about the innovation. Sometime there is a hugepressure from the other category on the Late majority to make a change which force them toadopt the change. Generally they used to adopt the change when they fill that there is a minimumrisk in adopting the new idea(Jensen and et.al., 2016).Laggards:They are the one of the most difficult group in the category to adopt the changes asthey are the one who believes in the tradition and past ethics and culture and do not want tochange the same with the new and innovative idea they generally adopt the innovation by thefear of loosing something or by evaluating the trend of requirement and the stats and data.But as per the observation most of the individual are generally falls in the middle category.4
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