Managing Innovation

This document discusses the theories of innovation, including diffusion of innovation theory and general theory of innovation. It explores the antique development of products and services in the selected organization, Just Eat, and also discusses the future pathways for growth in the company. The document provides insights into the strategies and approaches used by Just Eat to establish itself in the market and expand its operations.

Managing Innovation
1

Table Of Contents
INTRODUCTION………………………………………………………………3
1.Describe about the two innovation theories and one theory should be explained in the
deeper form …………………………………………………………………………………3
2. Explain about the chosen theory for the antique development of products and services for
the selected organisation …………………………………………………..5
3. Explain about the chosen theory for the future pathways for the development of products
and services for the selected organisation ……………………………………………………7
CONCLUSION……………………………………………………………………………….9
REFERENCES……………………………………………………………………………….10
2

INTRODUCTION
Change management can be defined as the handling of all those activities which gives
introduction of being up to date. It means that coming with latest and innovative ideas ,
growing, ranking and tooling them. For example introducing of a new product. The
description about innovation itself said about that there are different kinds of innovations. In
this report the analysis has been done on the innovation theories in context with the
organisation. (Huh, and et.al., 2017). And also about the antique growth of one or more items
and amenities with reference to the particular organisation. Research has also been done on
the future development pathways of the products and services of the selected organisation.
The focus is on the diffusion of innovation theory and general theory of innovation. The
chosen organisation is Just Eat which is an online food delivery service. It was founded in
2001 in Kolding, Denmark. It act as a mediator between independent food deliver and
consumers.
1. Describe about the two innovation theories and one theory should be explained in the
deeper form
The two theories which have been chosen for the purpose of innovation are named as
Diffusion innovation theory and general theory of innovation.
Diffusion Of Innovation Theory: This theory was developed by E.M. Rogers in1962. It
originated in communication over the time how an idea or product get evolved. Being part of
the social system people adopt new product, idea, process and behaviour at the end result of
diffusion. There are five adopter categories. (Bogers, and et.al., 2018). When promoting an
innovation, to appeal to the different adopter categories there are different strategies need to
be adopted. These are categorised in the following manner:
 Innovators: Innovators are those people who are the initial people of trying for the
innovation. They are interested in taking the chance and are the first one to develop
new ideas.
 Prompt End Users: Early adopters are those people who have their own opinions and
act as leaders. They enhance the new opportunities and enjoy leadership.
 Prompt Majority: Under this category of people they have adopted the new ideas
before an average person. Before adopting the idea they are interested in finding out
that whether the innovation works or not.
3

 Late Majority: Under this category of majority, the people who adopt the ideas after
trying the innovation by the early majority. Strategies to appeal to this population
include information on how many other people have tried the innovation and have
adopted it successfully.
 Straggler: Straggler are those who are traditional in nature and also conservative.
Statistics, fear appeals and pressure from people in the other adopter groups are the
strategies used by the population.
Source: http://blog.leanmonitor.com/early-adopters-allies-launching-product/
There are five stages involved in the diffusion of innovation theory which are in the
following manner:
 Knowledge: Under this point consumer is aware about the product but does not make
any judgement concerning the relevance of the product.
 Persuasion: In this stage, consumers attitude is more important whether they are
favourable or not favourable towards the innovation of product and service. Marketers
used many coaxing methods. Catalogues is one of the method which is used for new
products.
 Decision: It means that the continued use of the service unless situational variables
prevent usage.
 Implementation: Implementation means that people make use of their innovation.
Behavioural change is required in this stage. Whether a good product has been
communicated effectively is the key determinant in the marketing plan. Marketing
plan should be in such a manner that purchase could be easy. With new products and
4

communication process, there should be proper coordination of the channels of
distribution.
 Confirmation: Under this point, consumer has find out the approval for the innovation
decision. In case of the conflicting messages regarding the product consumer seeks
approval for the innovation decision but reverse the decision. This stage is also
influenced by communication sources.
General theory of innovation: This was given by Greg Yezersky. In the initial phase of
creation of this theory, three crucial choices were made: it includes the historical analysis of
evolutionary processes of real world systems and it results into the process of creating GTI,
the systems were chosen on the basis of different natures which are technology based and not
technology based and the investigation is focused on both the systems which includes
themselves as well as with the rest of the environment. (Mahmoud, and et.al., 2018).This
theory was aimed at understanding the causes of and enabling mechanisms for emergence of
the man-made systems. This theory was based on certain facts and principles:
 All the artificial systems have evolved regardless of their complexity and specific
nature.
 The process of evolution has a logic and a predominant direction despite of its
perceived randomness.
 While improving the great outcome emergence of the science of innovation enables
drastic risk ad cost reduction
 Creation of corporate “On-demand innovation” capability results into the
development of an scientific theory.
All these general theory of innovation capabilities were used to create various business
applications which were tested for the purpose of the need to address the needs of real
projects.
2. Explain about the chosen theory for the antique development of products and services for
the selected organisation
Just Eat has launched the service in Denmark in august 2001 by Jesper Busch with the
support of five Danish entrepreneurs. In 2005 they moved the company to UK. The
company’s international expansion has started from the UK headquarter which starts with
Netherlands and followed by Ireland. The company has done its joint venture in India. There
5

were four partnerships which has been launched in new countries with local operators: Eat.ch
in Switzerland, ClickEat in Italy, RestaurateWeb in Brazil and Alloresto in France. (Newell,
S., 2015). For solidifying its presence in UK there are three acquisitions in the UK, Canada
and Grub Canada for the Ontario and British Columbia markets. In april 2012 Just Eat
consolidate its position by acquiring filmbelly.com. The company has acquired its main
competitor in October 2012 named as Sindelantal in Spain. In 2014, Just Eat has listed itself
in London Stock Exchange and expansion has continued in America by launching in Mexico.
The company has also acquired Orderit.ca which was a Canadian online food ordering
company. In 2016, the company has sold its operations to Benelux (The Netherlands and
Belgium). The company has announced that in December 2016 they were acquiring
hungryhouse from delivery hero and Canada’s skip the dishes. (Flor, and et.al., 2018).
Just Eat has collaborate with McDonald’s in January 2020 to deliver the food in United
Kingdom. This has end the monopoly in the market of Uber eats. Just Eat has launched itself
in Ireland in April 2008. (Ho, J. C. and Chen, H., 2018). The company has acquired 250
restaurants from Eatcity.ie. The company has entered into the North American market in july
2009. Index Ventures and Venrex Capital invested 10.5 million pounds into Just Eat
Holdings Ltd. In the second round of investment in 2011 there were two leading US venture
capitalists, Greylock partners and redpoint ventures invest 30 million pounds. With the third
round of investment in april 2012 named as Virtuvian partners and existing backers, index
ventures, greylock partners and redpoint ventures invest 40 million pounds in just eat
holdings ltd. In 2016 the company has rebranded itself with a vision to “create the world’s
greatest food community”. (Dvorak, and et.al., 2015).
According to the theory of diffusion of innovation, any product or service get start its
momentum from a very initial point where they have to work very hard and plan the things
accordingly for each and every step. Just as Just Eat company has done, it started with some
four to five entrepreneurs and slowly with following each and every step they have reached to
their highest point. Initially after getting some investment and building itself with the help of
marketing and make its name at the international level then it has started acquiring the
companies and do mergers with other companies. Any new idea and technology takes some
time to establish itself at a very large level. (Greco, and et.al., 2016). They have to work
consistently on their strategies, innovation with the changing period of time and the needs of
market. They have to also understand the comfort zone of their customers and also have to
match up with the changing environment of technological development. For reaching at a
6

higher level the company needs lots of investment which will be implemented on the various
aspects of the organisational development. Just Eat has developed itself in the similar manner
by getting lots of investment in their company and by gradually it has developed for the level
of acquisition and merger stage so that it can increase their expansion and its name in the
market. Its also very difficult to convince their customers for the adoption of any new kind of
change. For example for the launch of any new product and service in the market. The
customers are already facing or using the earlier system so they are not very easily convince
and trust for the any new launch of product and service. Until and unless the company does
not take efforts in realising and build trust on their own company for the customers then it
becomes difficult to attrat the customers on their website for ordering the food. So company
has followed each and every step of the development of the company’s service so that it can
gradually comes out from the historic pattern to modern approach.
3. Explain about the chosen theory for the future pathways for the growth of products and
services for the selected organisation
With reference to the Just Eat organisation, the chosen theory which is named as
diffusion theory of innovation. This theory is a hypothesis which covers the area of new
technological development and advancement which is spread in the society and culture. This
theory explains that how and why new ideas and practices are adopted.
How quickly diffusion has occurred can be understood in the way that in which innovations
can communicate to different parts of society and the opinions associated with the
innovations are important factors. (Buse, and et.al., 2019). Just Eat has provided online
delivery service which has lots of ideas regarding the future of online food delievery and how
food tech influenced it. The technologies included are augmented reality(AR) artificial
intelligence(AI) and robotic delivery carriers. There are rare chances of anyone who pick up
the phone to order a takeaway anymore. And thanks to particular service for the purpose of
delivering the food at the doorstep from places that don’t deliver.
Just Eat vision is that they just don’t want to showcase as one of the fastest food delivery
service for choosing and ordering takeaway but also showcased that what it thinks about the
future food delivery service look like. (Laine, and et.al., 2016). The company has planned to
involve themselves in the internet media with various connected devices around the house
which is displayed in the demo space. Just Eat will provide the service of voice-driven
artificial intelligence which allows users to talk to products and order the food through this
7

manner. In this system the artificial intelligence will order back to the consumer and allow
customer to pay, using stored payment details, then tells to the customer that how long it will
take to deliver the food. Just Eat will also provide the service on the I phone and I pad. With
this kind of online delivery system there can be possibilities that in future some problems can
be there with regard to this artificial intelligence system. For that purpose it is important that
Just Eat has also been working on a customer care chatbot using the Microsoft Bot
Framework to help deal with queries as well as Facebook Messenger chatbot can be used to
order food or get suggestions on what to eat. (Kaltenecker, and et.al., 2015) These robots
have the capability to detect if someone come into their path then they can take another path
to reach to their destination and also have the capability to keep the food hot until to their
destination point rather than the traditional thermal bag or tin container food. This kind of
delivery system of the food by unmanned robots where the order has been placed on timely
basis and also received the payment then the whole process experience data can be useful for
the purpose of how they can improve the process. By using the facility of robots they can use
the data to identify in which areas they can expand their business and how much they can
expect new orders from that particular area. It is that kind of technology which gives the
assurance for the tasty food and the future could seriously enhance a retailers capability to
make profitable business decisions.
Just Eat optimises the so called new economy- an economy which is started to emerge before
ten years ago with the arrival of smart phones, cloud services and ubiquitous broadband. Just
Eat shows its power through digital platforms not only as the fastest food delivery system but
also inserted itself between fast food outlets and fast food consumers and also takes a
significant share of all order revenue going through its platform. Just Eat has the facility to
see how this market disruptor will handle the risk of being disrupted itself. Just Eat shows its
innovative skills and it reaches to traditional method to new era of technology driven market
where competitors also need to think to give a fight to this new competitor. (Chen, Y. C.,
2017). The diffusion of innovation theory always aims for the adoption of new ideas,
innovation, new technology which has improved the structure of every kind of business over
the period of time. This theory also explain about the different kinds of adopters in the
market. Different kinds of adopters means that everyone has their own frequency of adopting
the new ideas, technology and new inventions also. Just Eat has totally transformed the
situation with this kind of online delivery system of food. This facility enables the customer
to have the kind of facility of getting the food at their doorstep with the availability of hot
8

food system. (Persons, T. M., 2019). Just Eat has taken one step forward as compared to
their competitors for the purpose of satisfying their customers. It has taken various steps ,
efforts for improving themselves from the traditional kind of system to the modern approach.
Customers also sees the future of the company very bright and also their employees has trust
on their company in which they work.
CONCLUSION
Managing innovation plays a very important role in the business world. With the
changing time period and technological development, innovation has been consistently done
in the product and services provided by the company. (Sawant, A., 2021). It’s the company’s
responsibility that how does it manage their innovation among the competitive market. Due
to lots of competitors and various options of innovation customer can switch to other options
also. So its important for the organisation to make an edge in the market so that customers
can prefer only the particular product and service. It should be company’s aim that they can
market and advertise their product and service in such a manner that their innovation can
make difference in the market and they can earn new profits as well. Managing the
innovation from the historical perspective to the modern approach is a very long journey
where lots of planning, practices and risks need to be taken so that they can achieve their
company’s objectives.
9

REFERENCES
Books and Journals
Huh, and et.al., 2017, February. Managing IoT devices using blockchain platform. In 2017
19th international conference on advanced communication technology (ICACT) (pp. 464-
467). IEEE.
Bogers, and et.al., 2018. The “human side” of open innovation: The role of employee
diversity in firm-level openness. Research Policy, 47(1), pp.218-231.
Mahmoud, and et.al., 2018. Service innovation and customer satisfaction: the role of
customer value creation. European Journal of Innovation Management.
Newell, S., 2015. Managing knowledge and managing knowledge work: what we know and
what the future holds. Journal of Information Technology, 30(1), pp.1-17.
Flor, and et.al., 2018. External knowledge search, absorptive capacity and radical innovation
in high-technology firms. European Management Journal, 36(2), pp.183-194.
Ho, J. C. and Chen, H., 2018. Managing the disruptive and sustaining the disrupted: The case
of Kodak and Fujifilm in the face of digital disruption. Review of Policy Research, 35(3),
pp.352-371.
Dvorak, and et.al., 2015. Managing Innovative Approaches to Education in Natural Sciences.
In Managing Intellectual Capital and Innovation for Sustainable and Inclusive Society:
Managing Intellectual Capital and Innovation; Proceedings of the MakeLearn and TIIM
Joint International Conference 2015 (pp. 383-383). ToKnowPress.
10

Greco, and et.al., 2016. An analysis of the open innovation effect on firm
performance. European Management Journal, 34(5), pp.501-516.
Buse, and et.al., 2019. Global Innovation: An Answer to Mitigate Barriers to Innovation in
Small and Medium-Sized Enterprises?. Managing Innovation: Internationalization Of
Innovation, 34, p.241.
Buse, and et.al., 2019. Global Innovation: An Answer to Mitigate Barriers to Innovation in
Small and Medium-Sized Enterprises?. Managing Innovation: Internationalization Of
Innovation, 34, p.241.
Laine, and et.al., 2016. Managing program impacts in new product development: An
exploratory case study on overcoming uncertainties. International Journal of Project
Management, 34(4), pp.717-733.
Kaltenecker, and et.al., 2015. Managing potentially disruptive innovations in software
companies: Transforming from On-premises to the On-demand. The Journal of Strategic
Information Systems, 24(4), pp.234-250.
Chen, Y. C., 2017. Managing digital governance: issues, challenges, and solutions.
Routledge.
Persons, T. M., 2019, July. Chemical Innovation: Technologies for Making Products and
Processes More Sustainable, Statement of Timothy M. Persons, Chief Scientist and Managing
Director, Science, Technology Assessment, and Analytics, Testimony Before the
Subcommittee on Research and Technology, Committee on Science, Space, and Technology,
House of Representatives. In United States. Government Accountability Office (No. GAO-19-
660T). United States. Government Accountability Office.
Sawant, A., 2021. Managing Editor's Note. The Arthniti, pp.ii-ii.
11