Managing Innovations

Managing
Innovations

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Description of innovation theory:................................................................................................3
Application of the innovative theory for the explaining historical development of
organisational services:................................................................................................................8
Application of theory for recommending possible future developments pathways for
organisational services:................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is all about carrying out new ways in order to introduce new goods, market and
services. Innovation includes, carry out new products, opening new market new methods of
production etc. it refers to don something new and made changes in existing goods, ideas and
services. It is about to improve something and replace something. It is an idea which is applied in
practical for doing things. It shows the new way for doing things and completing tasks (Enkel,
Groemminger and Heil, 2018). It can involve the process for taking something that can be utilise
in long time period for any business so that it can increase its value and profitability. Managing
innovation means to manage new ways and changes in the business so that it can accomplish its
objective effectively and efficiently. The company which is selected for this report is Made. Com
which deals in retails homewares and furniture online (Bushuyeva, Bushuiev and Bushuieva,
2019). It was founded in 2010, headquarter situated in London, UK. This report is based on
innovation theories, how they impacts on the business. Innovation theories refers to explanation
of business cycle in the items of innovations which takes place at the time of introduction of new
product and new processes. Innovation theories helps business for applying models it provides
ways. The theories which are selected for this report is blue Ocean theory and disruptive
innovation theory. These theories allows business for capturing new market and formulation of
new products in existing market.
MAIN BODY
Description of innovation theory:
Blue Ocean innovation theory is about simultaneous about the differentiation and low
costs in order to open up new market space and generates new demand in the market. This theory
is about capturing new market with lower costing market place. This helps company for
competitive advantage. In this theory demand is created rather than fought over. In this strategy
competition is irrelevant because the methods of it waiting to be set. This theory was founded in
2005. this theory is adopt by various companies includes, Netflix, Deliveroo, funding cycle etc.
Made.com adopt this innovation theory in order to increases market demand by lower costing
market space which emphasising for new innovation and strategies for services in online
homeward and furniture industry. This company innovate its services on timely basis by
combining new methods which helps in the working and helps in meets needs of the customers

with timely delivery and online selling (Satyarini, 2017). There are various principles of blue
innovation theory which are mentioned below:
 Reconstructing market boundaries: This innovation theory is focusing on innovation in
business by using lower cost market space. This principle is looks for alternative
industries, looks across strategic groups for the same industry, looks for complementary
goods and services offerings, participating in external trends. This principle is about
businesses are required to looking for market performance, competition and strategies
which are different than others. This principle helps Made. Com for its framework
includes eliminate, reduce, create and raise for creating strategies which helps it for
uncontested market space and reconstructing market boundaries.
 Focuses on the big picture: This principle is about focuses on pictures not the number, it
is about visualization strategy which carries four steps includes visual awakening, visual
exploration, visual strategy fair, visual communication (Redini and Dell, 2019). In
context to Made. Com this principle helps in compare its business with its competitors,
where it needs to change its strategies for competitive advantage, in the second stage firm
exploring various options and focus on factors which it should eliminate, create and
change, in the third stage, it is about get feedbacks from customers, competitors
customers etc. and uses this for future strategies, it compares its before and after strategy
which allows company for close the gap. This principle helps Made. Com for formulating
strategies which helps it for competitive advantages by comparing strategies.
 Reach beyond the existing demand: This principle is about three tiers of non customers
in this company search new customers. In the first tier it looks for customers “ soon to
be”. In the second tier it is about customers who are not interested in your market. In
third tier it is about unexplo0red customers who are not familiar from the company. In
context to Made. com it helps in exploring those customers who are not exist in market
yet. In this company creates strategies for finding new potential customers and works for
making strong position for the larger growth industry.
 Get the strategies sequence right: In this strategy it includes the sequence of blue ocean
theory which includes buyers utility, price, adoption, costs, a commercially viable blue
ocean ideas (Valls-Pasola and Amores-Bravo, 2016). This principle helps Made. Com for
company are able to achieve the inarticulate needs and existing market needs efficiently.