Managing Innovation: Application of Disruptive Innovation Theory in OLO

Managing Innovation
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Disruptive Innovation Theory......................................................................................................3
Application of the Disruptive Innovation Theory in the historical development context...........6
Application of the Disruptive Innovation Theory in the future development context................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Managing innovation depict the collection of handling process, strategies and changes in the
products. It is important for having sustainable business as it look forward towards future and
also come up with creativity and new ideas that are not executed by the competitors. Further,
collaboration, execution and value creation are the major factors that are involved in managing
innovation. It tends to resolve complexities with suitable solutions by representing the business
values, increase productivity and new process to offer something new within the market. The
objective of this report is to develop an innovative roadmap to effectively present the innovation
process (Baharun and et. al., 2019). To carry forward this report, OLO is considered which is an
online ordering company situated in New York as company develops the digital ordering and
delivery programs for the cafes and restaurants. The platform of company permit customers to
place restaurant orders from the several organisations. The report leads to cover detailed
discussion about the disruptive innovation theory undertaking the suitable understanding and
effective concept which is related with the benefit and limitations of an organisation. Besides
from this, the theory is applied on the historical and future context of OLO.
MAIN BODY
Disruptive Innovation Theory
Disruptive innovation theory is an effective approach that refers to the simultaneous pursuit
of introducing new products into the market while taking into account their effective and
appropriate presence. One of the primary goals of this type of strategy is to both create and
capture market space. By providing innovative products and services in new markets, the
company can gain a competitive advantage over its competitors (Bauchner and Fontanarosa,
2020). Furthermore, it revolves around locating a location where there are very few enterprises
operating and there is no pricing pressure.
In today’s business world, most businesses work in a highly competitive atmosphere while
also attempting to increase their market share. The fundamental goal of this strategy is to capture
new demand by establishing a visible presence and by introducing items with appealing and
outstanding attributes. This corporation can simply attract more clients to its offerings while also
making significant profits.

In this regard, if OLO employs this strategy, new features and originality will be introduced,
allowing the company to increase market rivalry. This type of activity can also help a company
gain a larger piece of the market from its competitors. This approach primarily focuses on Value
Innovation, Differentiation, and Low Cost, all of which aid in increasing the company's
profitability in the marketplace (Bryson and et. al., 2020). As a result, it is critical for a business
to conduct market research prior to launching new items in a new market so that the company
can discover areas of opportunity. This will help the organisation build a competitive image in
the industry by grabbing more market share.
According to this theory, there are four major concepts that are often employed by people
for the application of theory in business. The following are the steps in the process:
 In today’s corporate world, innovation is both fashionable and a necessary tool for
adapting to changing circumstances and seizing current business chances. As a result,
businesses seek to create successful product innovation in order to meet market demand
and increase profitability (Dziallas and Blind, 2019). For this, the corporation must
disregard the requirements and preferences of clients who are not its target market.
 For this reason, new business entrants tend to focus on start-ups as well as downmarket
socioeconomic groups, taking into account their needs in terms of having an effective
target market to solve major requirements in a more efficient manner than before.
 For this reason, businesses should concentrate on their most profitable customers, while
audiences should disregard newcomers by not viewing them as competitors.
 Following that, entrants tend to make efficient use of the Disruptive innovation theory by
climbing upward in terms of giving superior solutions to additional segments and social
groups while contemplating effective consumer profit.
 The market attracts and tends to make room for new entrants who disrupt incumbents and
become a significant rival for a longer length of time in terms of changing attitudes and
core skills through appropriate innovation and development.
As a result, in this case, the theory is applied for not making a significant effort in terms of
bringing better products and services to a market that is ripe for disruption, and also tends to
redefine the mechanical factor of business by developing effective offerings that are of low value
in comparison to having a market presence, and also offer lower cost products to customers in