Spotify Innovation Theory: Disruptive Innovation and Business Model Canvas

Managing Innovation

Table of Contents
Introduction......................................................................................................................................3
Spotify Innovation theory................................................................................................................3
Definitions, principals and process of the theory........................................................................3
Evaluation of theory (advantages and disadvantages)................................................................4
Application of Spotify innovation theory in the historical development context............................6
Company background ................................................................................................................6
Historical development ..............................................................................................................7
Application of Spotify Innovation theory in the future development context. ...............................8
Future development ....................................................................................................................8
Conclusion ....................................................................................................................................10
References .....................................................................................................................................11
Books and journals ...................................................................................................................11

Introduction
Innovation is the process of practically implementation of the ideas which an individual
have innovate. This innovation can be in products and services company is selling or offering to
the public. Innovation focus on the standards which have define new and creative ideas to gain
competitive advantage in the market. There are various types of innovation theories which are
being used by the organisations to take new steps in the company. In this report the two theories
which are taken are Disruptive innovation and Business model canvas (Dürr, Nisch, and
Rohlfing-Bastian, 2017). Disruptive innovation is the most important theory of innovation which
is being used by the company. Then business model canvas is the another theory which is being
used by company to design, describe and challenge the business model. In this report the
company which is taken is Spotify Technology as it is a Luxembourg based holding company
that owns the Spotify AB which is a Swedish audio streaming and media service provider. This
report covers Spotify innovation theories, application of these theories in historical development
and application of these theories sin future development context.
Spotify Innovation theory
Definitions, principals and process of the theory.
Disruptive innovation
It is the innovation which helps the company in transforming expensive products and
services into the high end so that it can be accessible to every customers and wider population. It
is not considers as a process of improving and enhancing products rather it is something which
involves technologies that are being used by company to make use of their products and services
to large group of people. This theory is important because it provides explanation of the large
companies get over to the smaller ones and then there is a innovation of this technology
(Fitzmaurice, 2018). As in case of Spotify Technology, it is owning Spotify AB. In some of the
case, small companies introduced new technologies which are being used by them to perform
better in the market and also this impacts in lowering of the prices of products and services. Over
the time, these new technologies have begin to improve the handle of more demanding use of
products and services.

Disruptive innovation is the technology that is being expensive and its products and
services are being accessible to large group of people. Most of the start-ups and aim is to be
disruptive and or to disrupt a specific industry. This theory generally says about how large
corporation were disrupted and how a small scale company can success its guarantee which is
being faced by the larger competitors. Due to this disruptive innovation most of the people jut
misrupt it (Most important Innovation Theories, 2021). The most important problem is that
disruptive innovation is a force and not considered as a tool.
Business canvas model
It is a tool or technique which is used for visionaries, game changers and challengers. It is
a strategic management template which is used for developing new business models and
documenting existing ones (Ingram, and et.al., 2020). It offers visual charts that contains
elements which describe company product value, infrastructure and customers etc. it is testing
out of the business model which is being used while developing innovations. The authors have
carried out that how the components and new offering will fit together to form a business model.
This innovation allows company to see what are the hurdles and issues that are coming in the
market. However, it can give a clear view of how an offerings can be like traditional business
cases. This model is used at the initial stages of any project when a company neds to look on the
full picture and how this business model will be fit together. Also, it will helps in knowing what
customer value proposition.
Evaluation of theory (advantages and disadvantages)
Disruptive innovation theory
Benefits
Disruptive innovation provide growth opportunity to the company and business and helps
in adopting new trends. It can benefits both customers and competitions by providing company
lower prices and more qualitative products and services. Disruptive innovation helps the small
enterprises in competing with large enterprises and corporate strategies. Also, in helps them in
growing in the market segment and results in increasing their profitability (Karlsson, and Björk,
2017). New innovations and ideas can be patented and protected as rational property. In many of
the case, large enterprises will offer low prices to the customers in order to gain competitive
advantage in the market. In addition, company can also be benefited by the ways in creating and
sustaining a system that looks for disruptive innovation. Employees and feedbacks of customers