Managing Innovation for Business Success

This assignment explores the importance of managing innovation in businesses for future success and development. It provides an overview of various theories and models that assist companies in innovating their products or services effectively. From Innovation Mix to Disruptive Technology, these approaches enable firms to gain a competitive advantage and meet customer needs cost-effectively. The assignment also touches on the social dimensions of creativity, invention, and technology, as well as network-centric innovation and library management.

MANAGING
INNOVATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
Theories of Innovation.....................................................................................................................1
Overview:.........................................................................................................................................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The process of converting an invention or idea into a product or services that generates
value for the customer or for which potential user is willing to pay is termed as Innovation. In
simple words, it can be defined as new idea, method or device. It can also be viewed as the
application of providing better and optimal solution that able to fulfil unarticulated needs, new
requirement and existing market desire (Andriopoulos and Lewis, 2010). To be called an
Innovation, an idea or invention must be replicable at an economical cost and must meet
customer specific need. In context of business, new ideas are applied or implemented so as to
satisfy the expectation and needs of target user. According to Kanter, Innovation can be
described as creation, admission and realization of new idea, services, product and processes.
This chosen company for this report is Apple Inc. which is a leading multinational technology
company headquartered in California. This report talks about how Apple Inc. has innovate their
product with passage of time so as to attain high competitive advantage. Further this report also
covers detailed analysis of chosen innovation theory and its key attributes.
Theories of Innovation
Innovation is essential for the survival and growth of the company. It is extensive concept that
can be understood in different ways. According to Marquis, Innovation is not viewed single act,
but rather seen as a total process of inter-linked sub processes. They think that it is not only
related with invention of new device, formulation of new idea or development of new market but
it refers to the process of all these combined factors and implementing in an integrated manner.
There are many theories that are related with the concept of Innovation like radical and
incremental, disruptive, innovative mix etc. Each theory is different from one another depending
upon the nature of company, its product and market (Seebode, Jeanrenaud and Bessant, 2012).
Some of its theories are defined in detailed below:
1. Innovation Mix: Innovation can be used or applied everywhere no matter whether it is for
product, process or position. Innovation management is a multi-disciplinary field that mainly
covers almost all essential aspect of organisation. This theory was developed by Joe Tidd and
John Bessant. The model enables you to identify what the process of innovation is and how it can
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bring or implemented in the business. It is just like the framework of marketing mix. The only
thing that differs is it's 4P's that normally consist of Product, Process, Position and Paradigm.
When and Why it is used:
In planning, the innovation mix aid in understanding how company can innovate to enhance its
product, position, process and paradigm. This tool gives direction to the organisation regarding
where they want to go and in which aspect or area they want to innovate (Lundstedt and
Colglazier, 2013). The innovation space promotes the process of new idea generation and how its
can be incubated in the business.
How is this tool used:
With the assistance of this tool, any company can explore all possible improvement in each area
or aspect of business. It enable the to take the advantage of high competitiveness level over their
rivals. Needs and wants of customer are kept on changing frequently, thus in order to fulfil those
requirement in an effective manner it is important for every organisation to implement
innovation mix in their business practices.
Mentioned below is the detailed analysis of each P element of innovation mix:
 Product : It refers to the change in product/services offered by the company to end user.
Basically this “P” deals with changing the attributes or features of existing product so to
satisfy the need and demand of potential buyer in an effectual manner. Here the point of
discussion is how existing product/services can be improved or make it more appealing
or attractive better than other available rivalry product.
 Process: Innovation also emphasize on processes through which products are delivered
or created. This basically deals in changing or modifying the process of production. The
main focus is in on optimally using the available resources so as to create positive effect
on humanitarian sector (Tschirky and et. al., 2010). It not only deals with altering the
process of product or services but also taken into account other processes such as
workflow, hiring people, training and workflow. Further when all these areas combine
together it laid stress on how to increase overall profit of the company.
 Position: This “P”talks about change in terms of how goods/services are communicated
and framed among target users. It mainly deals with re-positioning the view-point or
perception of customer for an already established product. This area laid stress on
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changing the context in which good are communicated and how employees, public and
customers sees it.
 Paradigm: In order to change or improve the business, company's usually innovate. The
change could be radical or incremental, but it should be noted down that all changes
might not result positively (Gillier and et. al., 2010). Here the imagination power of team
member is evaluated that can leverage profit. This could be anything changing published
product from print to various online platforms.
Pros of Innovation Mix:
Gaining higher competitive advantage over rivals, Meeting the dynamic needs & wants of target
customer effectively and efficiently, Promotes innovative thinking among team & its members,
Flexible tool, Aid in developing several other aspect of company that leads to generate higher
profits and revenues.
Cons of Innovation Mix:
This framework lacks structured and succession planning, High level of risk involved, May or
may not accepted by end-users.
2. Disruptive Innovation: The theory of disruptive innovation gained popularity in the year
1995. It came out as a powerful way of thinking in terms of innovation-driven growth. In
business, this theory is taken into account so as to create new value network and market, causing
disrupt in existing market and value network and displacing already established companies,
alliance and products.
When and Why it is used:
This method is used by business enterprise so as to create new market and value network that aid
in enhancing the goodwill of the firm (Nambisan and Sawhney, 2011). For example: In order to
seize or capture the target market of Kindle, Apple has introduced Mac Book for them. Here
disruptive technology is taken into consideration.
When does it occur:
The theory focuses on improving the products or services of the respective company so as to
meet the needs and desire of user in most profitable manner.
Pros of Disruptive Innovation:The target market has already been established, Analysis of
target market has already been done, Customer familiarity with existing solution, Possibility of
huge buyout, Possibility of very limited competition.
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Cons of Disruptive Innovation:
Competing product or services already exist in the market, Entrenched firms possess strong
interest in terms of preventing company from succeeding, Risky i.e. success is not guaranteed.
Overview:
Apple Inc. is considered as one of the most valuable organisation in the world in context of
market capitalization (Bieraugel, 2015). It led the global technology market by constantly
developing innovative products such as I-Pod, I-Phone, I-Pad and Mac which redefined their
respective markets. The company was mainly established in the year 1976 by Steve Jobs, Ronald
Wayne and Steve Wozniak to sell and develop Apple I personal computer. With the changing
needs and desire of customer, Apple laid stress on developing I-Phone, which undoubtedly
proves out their biggest success and from their Apple's success journey continues. In 2015, It
became U.S first business entity to be valued at over 700 billion US$. The company employ
more than 123,000 employees & maintain 499 retail outlets in 22 countries. The annual revenue
of Apple Inc. is 229$ as for 2017. From the past 42 years, the firm enjoys & maintain high level
of brand loyalty and repeatedly ranked in the list of world's most valuable and precious brand.
The success of respective firm is recognized all across the globe. In-fact, expert referred Apple
as the most innovative entity in today's competitive world. Steve Job said that “It is all about
creativity and Innovation”. Starting from its founder, the company innovates on these following
aspects:
 Product: The product I-Pod shuffle is very creative and innovative. It is the world's
smallest or tiny music player. It's innovative design makes it easy to use and carry it
everywhere. The entire control remains with earphone cord, so it can be reached any
where. Moreover the I-Pod shuffle has a press button that enable it to speak for itself. The
voice-over function tells the user that what song is playing and who is performing it.
With its I-Tunes(computer software), I-Pod Shuffle can download ample number of
songs, even more than any other music player. Therefore, the product prospective of
innovation is quite radical or revolutionary that creates mark on mobile industry.
 Process: The process of I-pod Shuffle product is innovative but not in wider area. Apple
assemble I-Pod Shuffle at its headquartered and other parts are outsourced from different
countries (Lundstedt and Moss, 2013). The most common way for Apple Inc. to launch
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its product is its Apple Store only. The entire process goes through the wholesaler to
retailer to potential buyers. Therefore, the process perspective of its I-pod product is quite
incremental.
 Position: The positioning of I-Pod Shuffle is in terms of providing music of good quality
and its is easy to control and carry and mainly focused at teenager or young generation
market which is quite similar to other rivalry MP3 players as well. The support software
also gives large range of music to end-user to download it for free and enjoy listening it.
So like its process innovation, the perspective of I-Pod Shuffle positioning is bit
incremental.
 Paradigm: The paradigm of product I-Pod Shuffle is. It's main function is to provide
music to their end-customers when they want it. Although the company has add some
extra key features like Voice over, powerful software and small figure which makes it
attractive and distinguish from that of competitors (Den Hertog, Van der Aa and De Jong,
2010). However it doesn't change its paradigm as it is still a music player for the world
and its residents. But in context of entire organisation, the whole Apple Inc. company
paradigm from computer to I-phone.
Historical Development of I-Pod: 10 years ago, Apple drastically change the concept of music
player by introducing their very first I-Pod which is a sleek music player packed with 5GB music
storage not bigger than deck of cards. The company launch its digital music player in a low key
event held at Cupertino. When life was going digital, Steve Job came up with its digital hub
strategy i.e. launching I-Pod. Steve believes that music is a part of everyone's life and just
because it is important it's target market is quite large. However the initial reaction of public after
the launch of I-Pod was not good as they think that it is too expensive and too little. But later I-
Pod is merely accept by those who criticise it initially. In July, 2002 Apple launch second
generation of I-Pod with minimum capacity of 10-20 G.B. Moreover its appearance is almost
similar to its previous generation adding extra feature in the form of touch-sensitive wheel rather
than prior mechanical one. The company has also redesign its hold switch and a cover on the
FireWire port. However same year in September, customers again start criticising its product and
said that it is too loud and might damage listener ear's. Their users in the region of European
Union are not satisfied with the product. On the other hand, same in October as well Apple again
add new feature in their product which leads to improve their sales tremendously. More than
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600,000 I-Pods were sold during the year 2002. In 2003, Apple has again launched its third-
generation including features like controlling buttons and touch sensitive button under the
screen. With each passage of year company keep updating their product as per the demand and
choices of target customer. Above mentioned innovation mix is applicable only in the context of
I-Pod Shuffle. However, from last 43 years there has lots of changes that undergoes by company
in the form of development of I-Phone. In 2017, Apple has launched the X series of I-Phone and
I-phone 8 so to gain competitive advantage over its rival Samsung.
1. Product: Respective company currently deals in selling mac, I-pod,I-Pad, I-Phone, Apple TV,
Apple watch and software. The company ranks in the list of world's most valued organisation
with an revenue of 229$ annually. The company continues on developing new product or
modifying the existing one so as to retain that 20% of its customer and tries to increase the ratio
for the same. The main aim behind this is to address the dynamic needs and desire of target
audience.
Recommendation: Apple is giving tough competition to Samsung but there are certain features
or area in which rivalry firm is good instead of Apple. Like Samsung has launched its first edge
screen phone which attracts the attention of customer and enable them to buy or try these
products (Wang and Tsai, 2014). In order to gain high competitive advantage, Apple has recently
launched its X series but its is sufficient. According to my point of view, they are required to re-
design its product and makes it edges curved. Moreover, they can improve its connectivity to
other phones like other phones are having Bluetooth facility which I-phone lacks. By adding or
improving these two features, Apple can take the advantage of high competitiveness level.
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(Source: Key products of Apple, 2017)
2. Process: The company has re-design its business process along with changing its vision as
well. Steve Job has applied the concept of design thinking characteristics in its business practices
and operations. They laid stress on building simple yet user friendly products instead of complex
products. Moreover the company emphasize on excellence in execution, iterative customer
involvement, platform strategy, beautiful products.
Recommendation: Currently Apple is operating across traditional boundaries to develop a
successful innovation friendly ecosystem. System innovation integration is at the heart of Apple's
success. It's creative value proposition in terms of making product as an experience makes it
worthy (Talukder, 2014). None of the I-phone user is dissatisfied. They can focus more
minimizing frustration and saving time.
3. Promotion: Currently the company is selling their product their own retail outlets and
advertising it using different channels of media such as print media, advertisement, social media
etc.
Recommendation: The existing promotional strategy of Apple is quite unique but make it more
effective they can allow users or customers to experience it or use it by taking selfie with it
before final purchasing.
4. Paradigm: It is the mixture of above mentioned all factors and states changes undergo by
company so to capture or hold large market share and high competitive advantage. Starting from
computer to I-phone, Apple has paradigm its business operation and that too effectively and
efficiently.
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Illustration 1: Timeline of Apple's Innovation

Recommendation: As per my point of view Apple is doing well but what they can further
introduce is selling their product from other retail stores as well (Merethe, 2011). They can ad
feature of online selling also.
Disruptive Innovation:
As Christensen states that, disruption happens when any business concern successfully challenge
“existing incumbent businesses” by first offering products and services that appeal or attract to a
niche part of the market. Further that niche could be overlooked by existing target audience or
new customers. Apple has launched I-Phone almost 10 years ago which becomes the classic
example of technology disrupting in mobile sector. The company has ended the Nokia's
dominance from the market place and developed the first smartphone worthy of its name and key
features. Apple is considered as the best example when somebody talks about the disruptive
technology. In addition to that, Apple has created its own market which other mobile industry
doesn't really think of it. Though the company was not the first one to consider apps but they laid
stress on re-inventing them and again launched it in 2008. Currently, there are more than 2
million apps available in App Store (Aasen, 2011). The success of Apple shall considered as
disrupter as they continue to disrupt by adapting or modifying themselves as per the dynamic
needs and wants of the market. Apple Inc. is referred as iconic when it comes to the development
of product. Mentioned below is the example that tend to explain the ways in which I-Tunes has
implemented disruptive innovation in its business operation. Apple I-Pod was launched in the
year 2001, in which the market share of personal computer at that time was only 3 percent. It is a
device where potential buyers loads ample number of songs for subsequent listening. The
important that needs to be taken into consideration here is, at that there were other digital music
players competitors available in the market such as MP3 player that also focuses on offering
similar services which I-pod is offering. Along with this, Apple has also launched I-tunes that is
mainly used to organise and play digital music. It we thoroughly go through the product
development of Apple, we can simply state that I-Pod was their disruptive innovation.
Recommendation: In order to take the advantage of high competitive edge and capture large
vast market share of competitors firm, they can modify their product. Though Apple keep
updating their product like recently they launched its new X series and I-phone 8 series. But in
order to capture the target market of Samsung curve edge screen, they can bring curve to their I-
phone also ( Johannessen, 2011). The company can focus more enhancing its connectivity with
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other mobile devices. Moreover they company is aiming to make it more taller and narrower.
They are trying to use OLED display for power saving and deep blacks while maintaining the
same eye- impressive technologies that will make the product spectacular. In addition to that, the
only mechanical button in I-Phone will be its power button.
Future Development Pathways: It can be concluded that future market of I-Pod are still
profitable. The basic necessity of every individual is music. Sometimes it becomes difficult to
handle mobile everywhere therefore people are still demanding in case of asking or demanding
for musical player. The company has announced I-Pod before the I-Phone but its growth and
success not solely depend upon just one product. Combination all their products assist in
generating higher revenues and profits.
CONCLUSION
As per the above mentioned report it ca be stated that, innovation is essential for every
company for its future success and development. Various theories of innovation provides
assistance and guidance to company's in terms of how they can innovate their product or services
in an effective manner with proper well designed steps. Theories or models like Innovation Mix
and Disruptive Technology enables firm to gain high competitive advantage in the market over
its rivals and meet the requirement and needs of customer in a cost-effective and timely manner.
REFERENCES
Books and Journals
Andriopoulos, C. and Lewis, M.W., 2010. Managing innovation paradoxes: Ambidexterity
lessons from leading product design companies. Long range planning. 43(1). pp.104-122.
Seebode, D., Jeanrenaud, S. and Bessant, J., 2012. Managing innovation for sustainability. R&D
Management. 42(3). pp.195-206.
Lundstedt, S.B. and Colglazier, E.W. eds., 2013. Managing innovation: the social dimensions of
creativity, invention and technology. Elsevier.
Tschirky, H. and et. al., 2010. Managing innovation driven companies: approaches in practice.
Springer.
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Gillier, T. and et. al., 2010. Managing Innovation Fields in a Cross‐Industry Exploratory
Partnership with C–K Design Theory. Journal of product innovation management. 27(6).
pp.883-896.
Nambisan, S. and Sawhney, M., 2011. Orchestration processes in network-centric innovation:
Evidence from the field. The Academy of Management Perspectives. 25(3). pp.40-57.
Bieraugel, M., 2015. Managing library innovation using the lean startup method. Library
Management. 36(4/5). pp.351-361.
Lundstedt, S.B. and Moss, T.H. eds., 2013. Managing innovation and change. Springer Science
& Business Media.
Den Hertog, P., Van der Aa, W. and De Jong, M.W., 2010. Capabilities for managing service
innovation: towards a conceptual framework. Journal of service Management. 21(4).
pp.490-514.
Wang, C.J. and Tsai, C.Y., 2014. Managing innovation and creativity in organizations: an
empirical study of service industries in Taiwan. Service Business. 8(2). pp.313-335.
Talukder, M., 2014. Managing innovation adoption: From innovation to implementation.
Ashgate Publishing, Ltd..
Merethe, T., Aasen, B. and Johannessen, S., 2011. Managing innovation as communicative
processes: a case of subsea technology R&D. Operations Management: A Modern
Approach, p.9.
Online
How to Manage Innovation, 2013. [Online]. Available through:
<https://www.forbes.com/sites/mitsubishiheavyindustries/2018/01/23/watch-a-master-
craftsman-apply-the-human-touch-to-cutting-edge-rotor-technology-video/
#1f13f0471ae2>.
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