Managing Innovation: Theories, Application, and Future Development

Managing Innovation
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Theories of innovation................................................................................................................3
Applying each of the chosen theories in order to explain the historical development of one or
more product or service and possible future development of the product or service..................6
How both the theories can help past and future of Made.com....................................................8
Critical analysis of contributory factors related to the commercial success of a business..........9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation may be defined as a process of translating an idea into goods or service which
creates a value for which customers are willing to pay. Innovation simply means a new idea or
creative thoughts or new imaginations which is in the form of a new device or a method.
Innovation in a business is often viewed as a better solution which meet new requirements or
existing marketing needs (Biemans, 2018). Innovation management is a set of tools which
allows a company to respond to the internal and external opportunities by introducing creatively
new ideas, products or processes in a new market. In this report Made.com is taken as an
organisation which is a London based brand which retails and designs home wares and
furniture’s online and also across the experimental showrooms in entire Europe. Present report
discusses about how Made.com will manage the innovations by applying the theories of
innovation.
MAIN BODY
Theories of innovation
Diffusion of Innovation Theory
This theory was developed by Em Rogers in 1962 and is considered as one of the oldest
social science theory. This theory analyses how the social members adopt an innovative idea and
how they possibly made a decision towards adopting the new idea. This theory mainly depends
on the Human Capital, according to this theory an organisation should widely adopt the
innovations in order to achieve sustainability and development (Garza-Reyes and et.al, 2017).
Wherever, this theory was applied by any organisation cultural adaptability played a relevant
role. This theory includes four basic elements such as:
Innovation: It is an idea or a practice which is perceived new by the individual and can
also motivate to do something new in an organisation or simply bring a change.
Communication Channel: Communication channels help in taking the message from
one place to another and it will be communication channels that innovations can be spread across
the world.
Time: It is the total time which can take the people towards getting adapted to the
innovations in a society.
Social System: Social systems are interrelated network groups which are joined together in order
to solve the problems in order to achieve a common goal.

According to this theory innovations are not adopted by individuals at a same time in a
society but individuals tend to adapt the innovations in a particular time sequence which can be
classified in various adopter categories. There are Five categories of adoption which can be
classified below:
Illustration 1: Adopter Categorization
(Source: Diffusion of Innovation Theory, 2019)
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Innovators: Innovators are the people who are eager to try new ideas and technologies.
Innovators are people want to be first to try innovations and keep on experimenting on new
ideas and thoughts (de Zubielqui, Jones and Statsenko, 2016.). These people are always willing
to take risk and often become the person to develop new ideas.
Early Adopters: These are the people who tend to be more integrated in a social system
as compared to the innovators. These are the kind of people who represent the opinion leaders
and embrace the opportunities and enjoy leadership roles. Early adopters are the people who
does not need information for change but are comfortable adopting new ideas.
Early Majority: These people may or may not be leaders but they are comfortable in
adopting the new idea. Such people typically need evidence that a particular innovation works
for them and accordingly they will adopt or reject the innovation.
Late majority: These are the people who are not sure about adopting the change but will
adopt the change only when it is adopted by the majority.