Innovation Theories

Innovation Theories
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Contents
Introduction......................................................................................................................................3
Innovation Theory...........................................................................................................................3
Definitions, Principals and Processes of the theory.....................................................................3
Evaluation of the theory (Benefits and limitations).....................................................................5
Application of the Innovation Theory in the historical development context.................................6
Company background..................................................................................................................6
Historical Development...............................................................................................................9
Application of the Innovation Theory in the future development context......................................9
Future Development....................................................................................................................9
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................11
References......................................................................................................................................12
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Introduction
In modern time, innovation can be referred to creative thoughts, new imagination, new ideas
which helps a business organisation in meeting new requirements of the customers (Smith and et.
Al., 2017). All these innovations majorly take place with the help of provision of different
services, processes, business models and technologies and so on. In other words, innovation is
said to be a process of building new changes within the existing products and services, which
may aid a business firm in gaining competitive advantages. Apart from this, if it is talked about
the innovation theory that has been taken into consideration then it is innovation Matrix which is
considered as visualisation that helps in incorporating different aspects of innovation. There are
number of big companies that has taken into consideration of this theory. Basically, this theory
consists of four dimensions and these are radically sustaining, radically disruptive, incrementally
sustaining and incrementally disruptive. Many of the business organisation has utilised to
innovate their existing brand portfolio of the product portfolio in order to grab the advantages
within the existing market.
Innovation Theory
Definitions, Principals and Processes of the theory
Disruptive innovation can be defined as are referred to a process or the concept that
basically develops a whole new value to the market through creating different products and
services focusing upon the various innovations. With the help of disruption of the market in
which the company is already dealing or through creating whole new market. There are many
business organisations in present time has kept their focus over building new products and
services through considering this type of innovation as it is much cheaper than the other ones and
helps a company in attaining front desired objectives and goals in much effective and efficient
manner.
Along with this, it has been analysed that there are number of principles of disruptive theory that
can be taken into consideration and some of these are presented underneath:
Inspire: this is particularly being considered as one of the crucial principles that helps a startup
or an existing business organisation to incorporate the innovation because this requires a leader
who can specifically inspire others in order to step into unknown (Bain and Kleinknecht, 2016).
Basically disruptive innovation theory is considered as a concept which creates new value within
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the existing or the new market therefore, it is required by the leader to consider different
approaches and make others understand (subordinates), that how this innovation with will help
company in raising standards of their own and of their customers through fulfilling needs and
requirements.
No risk, no innovation: Another crucial principle of this theory, where it is said that no
innovation if taken into consideration by a company then it made lead to see decline within the
profitability and the productivity. Therefore, in order to gain competitive advantages or to sustain
within the market for a longer period of time it is much required to focus on innovation as it may
also comes with risks and without considering a risk factor a company cannot sustain for long
within crucial market (Hall and Williams, 2019). Value creation: Without innovative technologies no value can be created in present time
in business, which means that a solution for customer's problem or a need can effectively
be reduced to minimal through considering a innovative approach. It has been analysed
that value can only be created when an approach that is innovative is taken into
consideration because without innovation a company cannot sustain for a longer period of
time. This is said because customers in today's time focuses on trends and the innovation
which may help them fulfilling their desires.
Idea Management: ideation session requires proper analysis where it is required by the
innovator to keep on managing the number of ideas. It can be done through team members that
specifically has the connection with both customers and the product. Considering there mindset
in relation to modifying the products, would lead them to adopt right modifications in correct
time. If it is critically analysed, then it is said that information if taken from individuals or the
subordinates who are not connected with both customers and the product, then it is may be
possible that company may face problems in near future through developing less attractive
product for the customers which is not considering the demands of the customers and the current
trends (Berry and Berry, 2018). Observe and measure: Just when product life cycle starts of a product, it is much
required by buy the innovator to keep on tracking different range of results that are
coming as it is essential so that optimal rate of interest on the investment can be analysed.
With the help of observing and measuring the results, appropriate modifications
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