Managing Innovation: Disruptive Theory and Its Application in Just Eat

This article explores the concept of disruptive innovation and its application in the historical development of Just Eat. It discusses the benefits and limitations of disruptive theory and its impact on the food delivery industry.

Managing Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAINBODY....................................................................................................................................1
Disruptive innovation theory......................................................................................................1
Application of Disruptive innovation theory in the historical development context..................5
Application of the Disruptive theory in the future development of Just Eat..............................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is being consider as the armoury tool for the modern business to survive in
this contemporary business environment, therefore innovation matters for a business of course.
Innovation is thoughtful as change model of a business that transform business into new format
of operations. Nevertheless, managing innovation is not a cup of tea for many business
organisations because while organisation introduce innovation, they need to formulate
innovation strategies which might be supported by the innovation theory (Schmidt, 2018).
Innovation theory or a concept is a framework that business used while managing and
introducing change in the business model. Disruptive theory of innovation is the oldest and most
used innovation theory in business this is because disruptive theory of innovation is affordable,
easy to use and has basic feature (Prange and Schlegelmilch, 2018). Hence, disruptive innovation
originates in low end or new market footholds that help many tech companies to solid its market
positioning. Disruptive theory of innovation is useful for many small and tech company
generally with less resource, is capable to challenge an incumbent organisation by incoming at
the bottom of the market and keep moving to up-market with managing its innovation practices
(Uzuegbunam and Geringer, 2021). Theretofore, pausing report lighten up the concept of
disruptive theory of innovation is historical and fuWhat Is Disruptive Innovation?. 2015.ture
business model of Just Eat along with the benefits and drawback of disruptive innovation theory.
MAINBODY
Disruptive innovation theory
Frequently in the business , a disruptive innovation is an innovation program that develop
a new market and value network and finally disrupts an existing market and value network.
Consequently, disruptive innovation theory emphasis on the fact in which new entrant with
disruptive innovation approaches enter in the bottleneck market and capture large market share
gradually (What Is Disruptive Innovation?. 2019). However, not all innovation is said to be
disruptive innovation despite they are being revolutionary this is because these are type of
innovation of profit.
Disruptive innovation trends to be developed by the outsider and start-up company to
take over the existing market incumbent. Moreover, disruptive innovation is consider be a
process instead than a product or service, food disruptive technology is a perfect example of this,
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which shows that a company with disruptive theory of innovation enter in the food technology
industry by shifting the trend from dine at home to take away service at the door to make people
life more convenient. Hence, disruptive theory of innovation is also called as the technology
mudslide hypothesis theory for a tech company to introduce something new in the bottom market
(Cruz-Sanchez, Sarmiento-Muñoz and Dominguez, 2020). This is because often disruptive
innovation was technologically straightforward mechanism that begins in bottom of market and
create much value market in the end. Present business are mainly depends on the disruptive
innovation as customers are increasingly expecting that take-away delivery service of food tech
company should be faster, smarter and more intuitive that make their service more convenient
and reliable to meet and raise client expectation so that business can put their existing competitor
under their neck (Mousavi and et. al, 2018).
Disruptive innovation is considered to be the boon in the age of fast tech innovation
where new products and services are launched at an ever-maximise increasing pace. In the
starting, disruptive innovation is modest to the existent product and service in the Food and
Beverage industry because traditionally market measured by traditional value matrices hence
introducing disruptive innovation on is not easy at all (What Is Disruptive Innovation?. 2015).
Also, when disruptive innovation first time enters the market, it at first provide to a small
and typically not very profitable customer segment. This is because customer of that
segmentation not accepting this type of innovation in food industry because of sophisticated
thinking and cognitive behaviour (Reinhardt and Gurtner, 2018). Disruptive theory hows the
power of digital platform to disrupt incumbent industries and generate high value for new entrant
only because of disruptive innovation practices. Disruptive innovation is important because most
effective transformation pass off when a business grasp innovation rather than precise design.
Principles of disruptive innovation Simplify: Customer experience is a vital tool for a new marketer like Just Eat, so to make
buying journey hassle free and free of confusion disruption innovation should be simple
and basic. Become a disrupter: Contemporary business environment eating the world, everyone
wants to be next successful business model, thus under disruptive innovation theory a
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business unit like Just Eat must become a disrupter for existing organisation (Hessman,
2017). Disrupt company look for catering market that incumbent are not catering: Disruptive
innovation is consider to be vital tool for the new marketer by introducing new
technology that incumbent company are not using since for its customer segment (Mariev
and et.al, 2020). Low end market: Mainly, disruptive innovation occurs at the bottom of the market where
a new marketer enter into the market with many rival partner and use there disruptive
technology to move to up-market value. Innovation disruption is a process rather than a product or service: Disruptive
innovation is being process rather than of product or service. For instance, many
traditional restaurant are using disruptive theory of innovation are are providing takeaway
facilitate at present from its fast-food stores to a takeaway business service, they eye on
changing business process rather than product and service (Reinhardt and Gurtner, 2018). Select battles wisely- However, every new entrant are not called as the disruptive because
every incumbent firm are looking for potentially disruptive emerging business practices
to protect their business from disruptive and focus on the innovation by targeting on
profitable customer segmentation (Jackson, 2019). For a new entrant it can also benefited
from achieving a better understanding of disruption as it will assist them to identify
opportunities to begin or scale its business. Not all innovation are disruptive- Not all innovation is called as disruptive innovation
because some kind of innovation of profit and innovation for market survival rather than
of being market disrupter.
Process of Disruptive innovation theory-
1. Existing business innovate and create its product or services to appeal to the most
demanding and profitable customer segment and not giving any point of interest to the
needs of downmarket Many food industries are offering food delivery but not covering
the demands of other far areas due to shortage of delivery and system resource (Disrupt
or Be Disrupted: Eight Principles of Disruptive Innovation. 2017).
2. Just Eat or any entrant target this ignored customer segment by the many F&B industry
and other food technology industries, it formulate and gain traction by meeting the need
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of at reduced cost by the existing market and provide take away service to various
restaurant and hotels and act as the third party.
3. The existing tech food industry like Uber Eats and Postmaker does not respond to the
new entrant and continue to focus on its more profitable segment that are preferring
dinning service instead of take-away (Flavin, 2020).
4. Entrant/ Just Eat finally move to upmarket by offering solvent that charm to the existing
mainstream customers (Saiz-Alvarez, 2019).
5. Eventually, one the new entrant/Just Eat has begun to attract the incumbent business's
mainstream customer in group, disruption has occurred.
Evaluation of the disruptive theory of innovation
Benefits
 Innovative benefits- Disruptive innovation theory provide innovation benefits to the
both customer and company as this type of innovation when enter into the marketplace
change whole industry and it revolutionised the manner of doing business within the
industry (Ordoñez de Pablos, Zhang and Chui, 2019).
 Room for business growth for new entrant- Disruptive theory is mainly used by the
new entrant to enter into the downmarket and create room for business growth by
attracting customer mainstream of existing business unit (How Disruptive Innovation
Benefits The Marketplace, 2019)
 Company will enlarge its market or find its niche- Customer trend is changing on fast
span which create opportunities settled on changing customer behaviour in response to
traditional businesses model (Bahl and et. Al, 2021). Many existing companies are
missing the company while giving more importance to the profitable customer segment
which give opportunities to many small businesses to expands its business by becoming
disruptor in the market and find its place. Organisation improves their own process along the way- Disruptive innovation
theory when applied in an organisation it changes their own process to counter their
disrupter because every fire not need to extinguish until a business see it as threat and
become inferior of danger . So, disruptive theory of innovation helps in improving
business process and act of operating business.
Limitation
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 There are associated high degree risk for market disrupter because people will choose
their service and product if they match with standards and expectations of the customer
need (Baiyere and Hukal, 2020). Therefore, disruptive business cannot achieve high
degree of profit very fast due to their nature of addressing low end of existing markets.
 Disruptive theory of innovation requires an apart strategy process that focused on
unanticipated opportunities rather than thinking of way to improve current business
model or process (De Paula and et. al., 2019).
 Disruptive innovation are hard and very complex because many existing firm introduce
the change and no other chance of change that would be made in the hidden marketplace
opportunity this is because disruptive innovative idea are often come with laughable
product or service (Sedov and Saksina, 2020).
 There are many new entrants which are in next to being next disrupter by copying
business model of existing successful disrupter company for instance every food delivery
organisation wants to be next Just Eat.
Application of Disruptive innovation theory in the historical development context
Company background-
Just Eat Limited- Just Eat is an online tech food delivery Danish company who play
role as the intermediary between independent takeaway F&B outlet and customers. Just Eat has
its official headquarter in London and operations in 13 different countries in continent of Europe,
Asia America and Oceania. It is type of public company which was founded on 2001 by its
founder and CEO Mike Evans and Jesper Buch. Just Eat company is existed in market because
of its disruptive technology that help it to offers online takeaway ordering work that ease
customers to hunt for food and order in real-time for their localised takeaway restaurant. Just Eat
partner with many restaurant outlet such as McDonals's by 2020 to end the monopoly which is
Uber Eats has previously exercise in the country by using disruptive innovation mechanism.
Vision
To make food discovery appealing and exciting for each and everyone whether by
offering customer more than choice than anywhere else.
Mission
Just Eat has business mission is to promote consumer to love its takeaway service
experience.
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Business model Canvas of Just Eat
6

Key Partners:
 Governme
nt
 F&B
outlet
 Drivers
who pick
and
deliver
food item
 Customer
 Partnered
restaurant
and hotels
 Payment
providers
 Acquisitio
n of UK
company
filmbelly.
com
(Gerybadz
e, 2020).
Key Activities:
 Innovation
 Promotion
 Takeaway
service
 Deliver
service
 Customer
service
 Managem
ent
Key Resources:
 Engineers
 Volunteers
 Manageme
nt
 Network
of riders
 partnered
driver
Value
Proposition:
 To yield
world's
greatest
foodie
communit
y
 to
promote
consumer
to love its
takeaway
experience
 To
provide
restaurant
customers
who do
not want
to
physically
go to
venue
which are
far away.
 It create
more
orders for
the
restaurant
Customer
Relationships:
 Convenien
ce in
ordering
and
obtaining
food
 self-
service
nature
with
automatio
n
 Money
back
guarantee
 To place
order
online
 option for
choosing
pickup
and drop
location
Channels:
 Website
 Mobile
application
 Just Eat
affiliate
Customer
Segments:
 Families
with kids
 Foodie
communit
y
 Young
people
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 local team
member
program
 Social
media
 Sponsoring
Cost Structure:
 Marketing expenses
 Customer support expenses
 IT Operations expenses
 Investment on food delivery technology
Revenue Streams:
 Revenue creates from the one-off fee
restaurants pay to join the service
 Advertising fess charged to restaurant
for high position in search result and
branded community food (Tanaqulova,
2020).
 Transaction money from the third party
Historical development of Just Eat
The company begins with five Danish entrepreneurs in 2000 and start its service as the
food delivery service in 2001. By 2005, Jasper Buch moved the company to the UK and
transform their business from ordinary food delivery service to online takeaway services. After
scattering its long root around the globe company focuses on innovation and acquisition policy
as the company has acquired Menulog, an Australian food deliver and at the same time merge its
operations with Takeaway.com to expends its business operations. Just Eat has heavenly
invested on innovation and technology to made takeaway service. Just Eat has revolutionised
how restaurant across the globe engage customer by offering greater choices and convince by
offering take-away delivery service. experience more remarkable. Just Eat using its website to
provider takeaway delivery services to the customer, with the development of smart phones and
internet penetrations, it has developed its own mobile application that facilitate customer for
online food order and real time tracking of food (De Vasconcelos G and et.al., 2018). With the
development of the digital media, company heavenly invested on the digital marketing tool to
promote its brand on the global level. After introducing mobile application 6 out of 10 order are
obtain from the phone this is where Just Eat target in its disruptive innovation practices.
Company later used Artificial Intelligence technology by the end of 2012 to provide real-time
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takeaway experience to the customers to keep themselves at the forefront of the food delivery
market. With the development of the Internet of Things Just Eat aiming to promote them into
various connected device around the home, Amazon Alexa is first choice which is voice driven
artificial intelligence where user can voice imputed to place order at Just Eat.
Application of the Disruptive theory in the future development of Just Eat
Disruptive theory of innovation is applied in business context to help business to grab
hidden opportunities by becoming disrupter in the exiting marketing by starting from the
downmarket. In concern of Just Eat, theory of disruptive innovation employs usually helpful
warning about the managerial myopia. Just Eat is the beginner of the disputation of food
technology and now in order to avoid occurrence of being disrupted company invested on the
disruptive technology on a large scale. This is because year back in 2001 when it shook up the
food delivery world and emerge as the big player in the food delivery service not facing immense
competition with Uber Eats and Deliveroo (Enkel, Groemminger and Heil, 2018) Company has
merged with takeaway.com to expends its business operations and acquire some other small food
delivery services which are future threat of them. Company is using disruptive technology of
robotic delivery by using drone delivery and by the 2022, 70% of the food delivery of Just Eats
will be by drones. To succeed its drone delivery of the food company is heavenly capitalise on
the R & D department in the field of argument reality and artificial intelligence to provide real-
time takeaway service experience to the customer and assist restaurant in delivering and
obtaining order from the customers (Just Eat leading the way in technology and innovation,
2020). Furthermore, drone delivery will be mark as the disruptive innovation in the field of
online food delivery as chances of delay in delivering is minimised and delivery can be made in
the fast span which is impossible for many existing company like Zomato, Uber Eats and
Deliveroo. For effective food drone delivery company has invested in the IoT, artificial
intelligence and machine learning disruptive technology to made it future safe and protect itself
from being disrupted.
In a business research Just Eat has found that 60% of the UK population abandon digital
take-out order if they are having poor customer experience and many old community argue food
delivery company to made online ordering easier (Znotka, and et. al, 2019). Thus, in context to
this evaluation company is targeting on the new delivery channel other than the mobile
application and the website, the new channel may be social media, virtual assistant, and smart
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devices. In the eye of developing new delivery channel for its drone delivery, Just Eat focusing
and targeting on the voice tech Artificial technological of Amazon which is called as the Alexa
where user can simply put order just by speaking to Amazon echo and place order at Just Eat
(Just Eat showcases innovative “food tech” - the future of online delivery - IoT Agenda. 2018).
Alexa will repeat the order and allow user to pay through the stored payment detail that made
online transaction hassle free and error free, Alexa with its sensor with drone of Just Eat will tell
the user how long does it take to deliver the order.
Next big thing which Just Eat is focusing on the future development concept is its
advertising services for drone delivery, company has launched and augmented reality feature to
encourage food offering in a fresh and funny mode. Just Eat looking forward to partner with the
Facebook and Snapchat that will show their food offering sticker whenever user tap at food
sticker and user will see burger, pizza and other food item drifting into their mouth whenever
they tap on the food sticker (Zhang, Tang and Wu, 2021). Next big things where Just Eat can
target is on the Big Data, because it is not wrong to say that Big Data technology has turning the
food delivery service and make them as prompt as possible to made online drone delivery more
convenient by gathering huge data of scope which include road traffic, review and comment on
social media, customer purchase history to ensure customer do not denied the food delivery order
and customer need recognition from the social media post (Bennink, 2020). Just Eat can use this
information to make drone delivery more effective and efficient as these data help in testing
drone delivery camping testing and offer further improvement in to deliver food by using robotic
technology.
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CONCLUSION
By considering the above report, it has been concluded that innovation is necessary for
business growth and surviving and managing innovation is the next big thing which organisation
must utilised to gain more profitability. The report has thrown light on the disruptive theory of
innovation which many new entrants especially technological business units in the downmarket
and rise as the upmarket by becoming as the disrupter in particular industry. Even so, report has
pointed out the significance of the disruptive innovation theory along with pitiful drawback that
shake management decision once for capitalising into disruptive technology innovation. Report
has justified that disruptive theory of innovation is not about innovation in the product and
service but complete change of the process of doing business. It has been found from the
dynamic of report that disruptive theory of innovation offer certain future development
improvement scope by focusing on the disruptive technology such as Artificial Intelligence,
argument reality, IoT and Big data which offer wide range of future development for a disruptor
to protect itself from being disrupted. The core centre of the following report is on managing
innovation in business by employing innovation theory to help business to formulate innovation
strategy for the concern business.
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