Managing Innovation: Diffusion of Innovation Theory and its Application in BrewDog

Managing Innovation
Assessment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Innovation Theory.......................................................................................................................3
Definition....................................................................................................................................3
Processes.....................................................................................................................................4
Evaluation of the theory..............................................................................................................5
Application of the Innovation theory..........................................................................................6
Future Development....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENJCES.............................................................................................................................10
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INTRODUCTION
Innovation in a business involves creating new products or improving the existing
features of an existing product, service and process in order to solve an existing problem,
enhance the efficiency of the business and reach out to new segments of customers which leads
to an increase in sales (Agger and Sørensen, 2018). Implementing innovation is a crucial as well
as important task for any business. It is beneficial for organisations as it helps in increasing their
overall profitability as well as share in the market. Diffusion of Innovation theory was developed
by E.M. Rogers in the year 1962 and is regarded as one of the oldest theories. It explains the
progress of an idea through various stages of adoption by different consumers. There are various
factors that affect the diffusion of an innovation or a new product within a society like education
level, level of disposable income, pressure from peers, level of development of the society etc.
MAIN BODY
Innovation Theory
Consumers in a market do not immediately accept and engage with an innovation
immediately after its launch, rather they take some time to do so (Diffusion of Innovation Theory,
2019). When an organisation decides to launch a new product or an innovation in the market, it
is important for it to understand the characteristics and needs of the customers to avoid the
situation of them taking a long time to adopt the change.
Definition
Diffusion of Innovation is one of the oldest models that helps organisations in
understanding the process through which a buyer adopts as well as engages himself with an
innovation in the market (Ali and et. al., 2016). Therefore, marketers use this theory when they
launch a new product in the market or an existing product in a new market. The adopters or the
consumers are broadly classified into five categories based on the the tine they take to adopt a
product. The different adopter categories are explained below-
 Innovators – Innovators are people who want to be the first ones to try any innovation
the market as they are highly interested and support new ideas. These people are always
open to taking risks and usually have a strong financial back which is why setback of the
innovation or a new product does not affect them much. Marketers don't need to
implement or make use of any special strategies to attract them.
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