Managing Innovation: Blue Ocean Theory and Business Model Canvas

Managing innovation

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
INNOVATION THEORY.........................................................................................................3
Describing definitions, principals and processes along with evaluation of the theory..........3
Application of the Innovation Theory in the historical development....................................6
Application of the Innovation Theory in the future development..........................................8
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Innovation management refers to the systematic implementation of the innovations
within an organization and also involves the tasks of planning, organization, management and
control. It mainly deals with the measures in regard to promoting innovation in an
organization and generating benefits, for instance, new products or the services which will
help in conquering the new market and helps in standing out of the competition. In addition
to this, it helps in improving the internal processes which helps in strengthening the
organization’s from within or in regard to saving cost. In this report, LIME is taken as an
organization which is into providing affordable mobility through the distribution of shared
scooters, bikes or the transit vehicles. In this report, an insight is being drawn n the two
innovation theories which are blue ocean theory and the business model canvas and its
application in the historical and future development of the company.
INNOVATION THEORY
Describing definitions, principals and processes along with evaluation of the theory
Innovation is the process of conducting particular brand new idea, products and
services. In the current ear, implementing innovation theories becomes crucial to have
significant functioning of company in the industry. This comprises two strategy such as blue
ocean and business model canvas.
Blue Ocean Theory (BOM)
It is concerned with the adopting differentiation & low cost in the market so that
demand can be created. In addition to this, this particular theory can help Lime to make
competition irrelevant by capturing uncontested market.
The specific theory has principle of restructuring the market boundaries, focusing on
larger picture not numbers. In addition to this, it comprises reaching beyond the existing
demand for achieving higher market share. Blue Ocean Theory (BOT) ensures that company
has viable business model to produce & maintain profitable growth and development.
Overcoming key organizational hurdles through executing leadership via giving emphasis on
risk of company. BOT has the principle of ensuring that company its building and executing
the procedure in fair manner.
It is very systematic procedure that provide guidance to organization regarding the
conducting the innovation. It comprises few steps that provides assistance to company to
push the boundaries to cover the market to make the competition irrelevant (Namboodiri,
Banerjee and Dasgupta 2019). In addition to this, in the current era, implementing BOT can

provide more benefits to company to overcome challenges obtaining in the path of success. It
can help the firm to find the leadership framework by concentrating on four factors such as
eliminated, reduced, raised and created to achieve positive impact. Eliminating gives
knowledge of factors that are already completed in industry can be removed, raising refers to
encouraging to reach sector standards. In addition to this, creation is concerned with
implementing the course of actions that has not been offered to customers in industry.
Reducing is declining elements that are below sector standards. This provides ability to have
new value curve for getting stability. Blue ocean creation for accomplishing the objective by
executing six path framework. It aids firm to focus on looking across alternative industry and
strategic groups within sector. Redefining industry buyers group for removing the
competition. The next step of creation of blue ocean theory is to determining scope of
products and services offerings. It can be exerted by looking for complementary goods to
fulfill requirement of strategy to attain the goal of having appropriate innovation. BOT
rethinks functional and emotional orientation of sector and taking time for shaping external
trends to attract larger customers. The sequence of assessing exceptional buyers utility,
prices, cost that is capable of targeting profit at offered strategy and hurdles in adopting
business idea.
Advantages
 This specific theory of innovation cooperates with organization to find uncontested
markets and neglecting the matured & saturated segments. It allows the customer to
select between differentiation & low expenditure theorem.
 Blue ocean strategy aids firm to move from impediments of competing within
prevailing sector & cost pattern and give focus on constructive value modifications
(Yunus and Sijabat, 2021). In addition to this, eth analysis obtained is utilized to
eliminate traditional approach and industry market force of demand.
 Company achieves the ability to execute value innovation through concentrating on
price strategy, utility and cost position. The fundamental transformation becomes
possible by having capacity of recognizing appropriate opportunities.
Disadvantages
 It is becomes difficult for the organization to identify the untapped market by
formulating futuristic ideas and plans. The procedure of blue ocean theory is
concerned with extensive research which involves large detailed analyzing that makes
the current practicing complex.