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Managing Innovation Theory

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Added on  2020-12-09

Managing Innovation Theory

   Added on 2020-12-09

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MANAGING INNOVATION
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Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1Innovation theory....................................................................................................................1PART 2............................................................................................................................................6About Airbnb..........................................................................................................................6Application of the theories in Airbnb.....................................................................................6Future innovation pathways...................................................................................................9Blue ocean strategy.................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12
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INTRODUCTIONInnovation can be defined as a process that includes various activities to uncover newways to do things. In modern meaning, innovation is a creative idea, new thoughts, imaginationsin the form of technologies or method. Diffusion is essential in managing the innovation, itresearches examines how ideas are spread among group of peoples. The study aims tounderstand how Airbnb manage innovation. The Airbnb is a privately held global company thatoperates hospitality service and online marketplace. The report will critical analyse variousinnovation theories such as; diffusion of innovation theory and Schumpeter's Theory ofInnovation. The history of innovation in Airbnb, future innovation pathway will also discuss inthe report. Lastly, the report will discuss the business model of the organisation.PART 1Innovation theoryDiffusion of innovation theoryThis theory of innovation developed by Everett M. Rogers in 1962. It is a procedure bywhich an innovation is communicated through certain channels over time among the members ofa social system (Biemans, 2018). It is the theory that state how, why and what rate newtechnologies and new ideas spread trough cultures. Innovation can be brought up by changingthe methods of transportation or production, or new product production procedure, or bringingchanges in the industrial organisation, entering into new markets, etc. Innovation doesn't mean toinvent something new rather than it refers to application of commercial techniques such as newmaterial, technology, methods, tools or even source of energy. An innovation consist;Introduction of a new method of production or sale of product that is not yet experiencedin the branch of Hospitality industry.Finding a new source of semi- finished goods or raw material and find out whether thissource already exists or it has to be created.New structure of the organisation such as destruction or creation of monopoly position.Diffusion and adoption of innovationDiffusion is a macro process that is concerned with the spread of a new product from itssources to the consuming people and adoption is a micro process that is concerned with the1
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stages through which clients passes when deciding to reject or accept a new product or service(Talukder, 2016).There are various stages of adoption in diffusion of innovation;Awareness- In this stage the individual is exposed to the innovation but there is lack offull information about the innovation.Interest- After being aware about the innovation, now individual becomes interested inthe new idea and seeks additional information about it.Evaluation- the person mentally applies the innovation to his present and anticipatedfuture situations and then evaluate and decides whether to try it or not. Trial- After evaluating and deciding, individual makes full use of the innovationAdoption- If the person being satisfied with the invention, he decides to continue the useof the innovation.Rogers' Diffusion of innovation curveThe curve of Rogers describe and classify the adoption of innovation into number ofspecific groups (Roger Adoption Curve, 2018). The base of this adoption and innovation curve isthat various individuals are having different behaviours to adoption. Innovators- They are the person who take the risk to come out with some innovation.Early Adopters- Persons who take the initiating at very first level to adopt the innovation.2Illustration 1: Innovation Curve(Source: Roger Adoption Curve, 2018)
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