Managing Innovation

Managing Innovation

Contents
MAIN BODY...................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Innovation Theories................................................................................................................3
Definitions, Principles & processes of the theory..................................................................3
Evaluation of theory (Benefits & Limitations).......................................................................6
Disruptive Innovation Theory................................................................................................6
Application of Innovation Theory in the historical development of products & service of the
company.................................................................................................................................7
Future development plans of Innovation................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

MAIN BODY
INTRODUCTION
Innovation is a basic concept that is related with new developments that are being made by
an organisation with the changing time period. External environment of every business is very
dynamic and is changing very fast (Nimrod, 2016). So, it becomes very important for companies
to bring timely innovation so that they can survive for a longer duration of time as compared to
other competitors. The present report discusses about the innovation theories that are being
applied to Sainsbury that is a retail organisation having presence in different parts of world. It
consists of the definition, process and principals of the theory and there is evaluation of the
theory. Innovation theory is applied in context of historical developments and future
developmental plans of the organisation.
Innovation Theories
Innovation is defined as a process of transforming new or innovative idea into product and
service in market. In this competitive world, it is important for an organisation to keep on
bringing innovation so that companies gain success and retain in market for longer time period. It
also assist organisation to effectively respond to disrupters & raise market share as well. Along
with this, innovation also help in responding to external challenges by using technology &
human resources to perform activities distinctly (Hall and Williams, 2019). In the current
scenario, innovation theories help companies to achieve higher growth and gain competitive
edge at marketplace. It also assist in attracting more number of people which has a positive effect
on productivity and profitability of the organisation. Innovation basically allows an organisation
to increase productivity and get provide something new in market which satisfy customer
requirements. Moreover, bringing innovation aid an entity to attain their desired goals within
stipulated time frame. The innovation theories is describe in detail below which assist companies
to accomplish their objectives in a timely and proper manner.
Definitions, Principles & processes of the theory
Diffusion of Innovation: This theory is one of the oldest innovation theory which is
mainly associated with social science theories. Diffusion of innovation theory is proposed in the
year 1962 by E.M. Rogers. This theory mainly focuses on how, why & at what rate innovation

ideas can be launched by the companies in order to accomplish their objectives. This theory also
outline how new technological & other advancements spread in societies & culture that is from
introduction to adoption. By the assistance of diffusion of innovation theory, it is easy for
companies to introduce new concept or idea that automatically uplift standard of the
organisation. In this theory there are various areas that is required to be undertaken so that task or
activities can be carried out in a specified as well as proper manner.
The concept of diffusion of innovation theory is simple and it focuses on that concept can
be different in market so that new product, idea and new service will be introduced at
marketplace effectively. It is determined that this process need continuous research by which
better improvements take place within the concept and idea that is develop for bringing
innovation. In order to promote any new innovation and idea, it is important for companies to use
various strategies that is used in bringing out idea efficiently and effectively. There are different
type of people who bring innovation or invent new product and services. The main people in
theory are as follows:
Innovators: It is defined as people who bring something new in market and want to be the
first candidate who has successfully establish innovative concept at marketplace. In addition to
this, they try new ideas first and is ready to take high risk in order to gain success at marketplace
(Enkel, Groemminger and Heil, 2018). They undertake or gain insight about positive & negative
side of innovation so that risk can be declined in a proper manner.
Early Adopters: It is determined that this people are interested in trying new technologies
& establish their efficiency in society. They perform task and enjoyed their role which develop
the chance for themselves to gain opportunity. Early adopters mainly have the idea to bring
change in societies in a proper manner.
Majority: Majority people represent as opinion leaders and adopt innovative ideas prior to
the average person. They first need evidence whether innovation works before adopting the new
idea. For this, they analyse success stories and innovation management effectiveness.
Late majority: These people are not easily adopt changes & only adopt after it is tried by
majority of people. They did not bear risk and gather information about how many people tried
innovation and successfully adopted it.
Laggards: It is determined that these people are conservative in nature and is bound by
traditions. They did not adopt changes and is consider as hardest group to be bring on board.