Managing Innovation: Evaluating Diffusion Innovation Theory and Its Application on Dyson

MANAGING INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
Evaluating the innovation theory.................................................................................................3
Overview of company and application of theory on the organization.........................................6
Future development and recommending pathways for development..........................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation management refers to the process that helps the company to have the best
procedure of the innovation at the starting stage of the company. It is very important for the
company to sustain the innovation as this supports them to have development in market. The
current assignment is based on Dyson which is the multinational technology based company in
the market of Singapore. The chosen innovation theory for the report is Diffusion innovation
theory. This report will put focus on the innovation theories that helps the company to have
growth in the market. Further this report will outline the application of innovation theory on the
chosen company in order to grow in the competitive market. This will also include the products
and services and application of the innovation the company. At last this report will outline the
recommendations to the future development of the products and services rendered by the stated
company.
MAINBODY
Evaluating the innovation theory
Theory of innovation refers to the different investment theories of the business that helps
them to have expansion in market. This theory helps the company to have better working in the
market that makes them to have better growth in the market. It is one of the most important
function of the entrepreneur that introduces them the innovation and profit as the reward
(Clohessy and Acton, 2019). The entrepreneur used to do the innovation in order to gain the
profit and also reduces the overall cost of production in the market. The most used innovation
theory by the company is Diffusion innovation theory that helps them to have better and new
ideas. Adoption of something new helps the organizations to have better market and also
increase in the target market. The adoption of the new idea or product makes the company to
have better growth in the competitive market. This theory is one of the oldest theory that used to
have new and better ideas internally. This helps to outline the new technological advancements
that are spread in the societies and culture as well (Diffusion Of Innovations Theory, Principles,
And Practice, 2022). The researchers of this theory has developed the different models in order
to explain and forecast the changes of diffusion in the innovation.
The innovation diffusion theory used to describe the process that provides them new
ideas, products and practices attracting more customers in the market. This basically involves the
five categories that involves innovators, early adopters, early majority, late majority and

straggler (Min, So and Jeong, 2019). This theory used to explain that how the new ideas and
practices are adopted by the company in order to have long- term growth. As it is very important
for the organizations to know about the development of the market share as company used to
offers new products on the continuous basis. The application of the theory is very useful as this
helps the company to identify the recruitment in order to bring innovation in the market. It
includes the different types of categories that is described as below:
1. Innovators: In this the entrepreneur used to take the open risk and try first on the
ideas developed in the market.
2. Early adopters: In this the people are interested in order to work with new
technologies and have utility in the market (Foucart and Li, 2021).
3. Early majority: This includes the person which used to pave the way in order to
have innovation in the society.
4. Late majority: This includes the set of people who used to follow the above
phase in order to have innovation in everyday life.
5. Stragglers: In this the people used to lag the population in order to adopt the new
and innovative ideas.
Principles of Diffusion innovation theory:
1. Relative advantage: In this principle, the degree of innovation used to appear in
the better way as compare to other alternatives in the market. This is one of the
most important principle that helps the company to serve for the best purpose in
the market (Sartipi, 2020). By having the innovation it makes the company to
compete with the other innovations in the same purpose. By focusing on this it
helps the company or people to have the relative advantage in the market.
2. Observability: this the degree of principle that makes to have better innovation
and helps to adopt such innovation. If the innovation adopters are not aware of the
innovation they must observe their peers and adopt the innovation. By observing
the peers helps them to know about the innovation made in the market.
3. Trial-ability: In this principle, it is seen that the innovation is experienced firstly
on the limited access. As more focus on the innovation makes the company to be
in loss and disturbs the existing working in the market as well. Having more focus
on the innovation decreases the profitability as well.