Managing Innovation in Spotify Organization

Managing Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Description of innovation theory............................................................................................1
2. Application of innovation theory in context of Spotify organisation.....................................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation management is a aggregation in which innovation is combined with process of
management so that changes can be implied effectively. Innovation management allows a
business organisation to respond to external and internal opportunities available with business
organisation. Creativity available with businesses are introduced with new ideas, process or
introduction of new products. Managing a innovation involves a process in which traditional
management principals and practices are managed as per changes are made in the business
environment (Aizstrauta, Ginters and Eroles, 2015). In the process of managing innovation focus
of management is created on products, process in business, organisational structure and
marketing innovation opportunities. To provide a detailed information how various organisations
manages their innovation this report is prepared. In this report Spotify Technology organisation
is considered to reflect techniques of managing innovation. This is a European American media-
services provider based in Luxembourg. It was founded in the year 2006 by Daniel Ek and
Martin Lorentzon. Project report will provide description of innovation theory and its application
on organisational context for development of historical, current and future products (Biemans,
2018).
MAIN BODY
1. Description of innovation theory
The process of innovation involves translating an idea or invention into a good or service
that creates value or for which consumers pay more. Innovation is a result of assessing needs and
wants of consumers and applying the new ideas to generate more satisfied consumers. Through
innovation application of better solutions can be made so that new requirements and unsatisfied
needs in the existing market is satisfied. Innovation in long run turns out as a medium for
business organisations to become adaptive to changes. Their are number of theories applied on
business organisations to implement innovation this will help to ensure that value is created for
consumers and more and more amount of revenue is generated (Bruns, 2014). Some of the most
common innovation theories applied by business units are descriptive innovation, effective
brainstorming, diffusion theory and blue ocean strategy for innovation. In Spotify technological
organisation Blue Ocean Strategy is applied for innovation and detailed description of the
strategy is as follows-
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Blue Ocean Strategy: It is a simultaneous pursuit of creating differentiation and
providing low cost to goods and services provided with a motive to open up a new market
opportunity. In this new market space is created and new demand is fulfilled with providing them
desired goods and services. In blue ocean strategy a uncontested market space is created and
captured and competition is resulted irrelevant (Campbell, Lambright and Wells, 2014). This
strategy is based on the idea that each business organisation can achieve higher profits by
creating new demand in non-competitive market. Ensuring higher amount of profits is much
easier then competing with the rivals in the existing market. Implementing the strategy is right
sequence is one of the most important part to ensure its commercial validity. When blue ocean
strategy is applied in strategic sequence then it reduces risk of business model. The idea must be
passed through a sequence of buyers utility, price, cost and adoption.
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