Managing Innovation: A Case Study of TerraCycle

Running head: MANAGING INNOVATION
MANAGING INNOVATION
Name of the student
Name of the university
Author note

1MANAGING INNOVATION
Table of contents
Introduction......................................................................................................................................3
Discussion of innovation theory......................................................................................................3
Application of TerraCycle...............................................................................................................9
Intro of TerraCycle......................................................................................................................9
Historical discussion of innovation.............................................................................................9
Future innovation pathway........................................................................................................10
Business model discussion........................................................................................................13
Conclusion.....................................................................................................................................14
Reference list and bibliography.....................................................................................................15

2MANAGING INNOVATION
Introduction
The term innovation indicates the process in which the ideas are being introduced by
creating the values (Jensen et al. 2016). In the other words, it can be said that by replicating the
economic cost, the process of innovation helps to satisfy the needs of the customers. Depending
on the deliberate application of innovation, imagination as well as the initiative for satisfying the
specific needs and creating values for individuals are being done. In the words of Berry and
Berry (2018), depending on the innovation ideas, the technological advancement is being
introduced. It cannot be denied that innovation is being considered as the risk taking process that
introduces the revolutionary products and technologies by taking the greatest risk. On the other
hand, the term diffusion indicates the physical process that helps to move the material from high
concentration to low concentration areas (Christensen, Raynor and McDonald 2015). Therefore,
it can be said that diffusion is the process of spreading innovation in the market. By highlighting
the recycling innovation strategy of TerraCycle, the innovation practices have been developed. In
the year 2001, TerraCycle was founded by Jon Beyer and Tom Szaky. By critically analyzing the
situation in the organization, the study has shed light on the case of understanding the emerging
situation in TerraCycle. The purpose of this study is to shed light on different in novation
theories and those implication in case of describing the innovative initiatives of the company.
Discussion of innovation theory
The Innovation Matrix
The innovation Matrix is being considered as the popular tool of innovation program,
which can be considered as the most suitable innovation format for every organization
(Acemoglu, Akcigit and Kerr, 2016). In order to design and execute the wide range of innovation

3MANAGING INNOVATION
initiatives, Innovation Matrix has been introduced by the organizations. In the innovation model,
nine innovation initiatives have been introduced.
Figure: The Innovation Matrix
(Scope: Mao and Ding 2015)
Startup Fund: The startup fund is the corporate fund, which is being invested depending on the
available opportunities in the external market (Acemoglu, Akcigit and Kerr, 2016). In case of
TerraCycle, the finding is done by the brands, companies and retailers.
Emerging business Areas: It indicates the sandbox area, in which the new business initiatives
are being introduced in the market (Mao and Ding 2015). By continuing this it can be said that
the new business ideas are being developed for understanding the potentiality and profitability
rate of the organization.
Center of Excellence: It indicates the formal group presentation that coordinates with the
innovation initiatives for ensuring the structured innovation process.