Managing Innovations: Theory, Application, and Evaluation

This study explores the theory, application, and evaluation of managing innovations. It discusses the principles and processes of innovation theory and how it is applied in historical and future development contexts. The study focuses on the successful application of the Business Model Canvas by Made.com to increase effectiveness in innovation.

MANAGING
INNOVATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
INNOVATION THEORY...............................................................................................................1
Definitions, Principals and processes of the theory.....................................................................1
Evaluation of the theory...............................................................................................................6
APPLICATION OF INNOVATION THEORY IN THE HISTORICAL DEVELOPMENT
CONTEXT.......................................................................................................................................7
Company background..................................................................................................................7
Historical development................................................................................................................7
APPLICATION OF THE INNOVATION THEORY IN THE FUTURE DEVELOPMENT
CONTEXT.......................................................................................................................................8
Future development.....................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Managing innovation consists of different activities that help to achieve goals by setting
different goals and targets. With respect to making an improvement, every enterprise needs to
increase efficiency in a systematic manner (Preece, 2018). It is a very important element for the
organisation to develop coordination and understanding among different employees. The present
study based on Business Model Canvas is a great tool of describing, challenge, design, etc. In
this regard, a visual chart explain organisation’s position. Therefore, Made.com has been
selected in which this model successfully applied within the organisation. With this aspect,
company deal in design different wooden products in whole world.
In this aspect, the report includes principals and processes of the theory. Furthermore, it
includes the application of the theory for future development to perceive company plans in a
systematic manner. At last, theory successfully applies to increase effectiveness with future
development. It helps to deal with more effectiveness in the development context.
INNOVATION THEORY
Definitions, Principals and processes of the theory
Managing innovation is a social technology that is most effective which brought and
profound within the organization. Managing innovation in Made.com can be defined with
traditional principles, practices, and processes. In this aspect, the work of management
successfully performed with different innovations (Stevens, 2018). It includes several elements
such as commitment to a large management problem, new approaches that illuminate novel
principles. With this aspect, the business canvas model used to manage innovation. Business
Model Canvas is a strategic management template for developing existing or new business
models. It is a successful visual chart with certain elements that help to describe the organisation,
its products or services, infrastructure, finances, customers, etc. (Norman, Parry and Van Hout,
2016).
Principals of managing innovation theory
Made.com consist Canvas model because it is a start-up enterprise. It consists of high risk
and action in which the model can be applied with a large amount of time to complete. In a
timely manner, it is updated as the business environment changes (Doz, 2016). Following are
different principals of this theory:
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 Actionable: In this model, the design considers actionable items at prioritizing bases. Hence,
it includes those items that are directly lead to a particular action in a systematic manner. In
addition to this, in the Made.com consider different kinds of wooden products such as small
sofa bed, Lamp Shade, etc.
 High Risk: In this principle, it has been assessing that actions that are taken at a prioritizing
basis, generally consist high risk (Burkhardt, Nazemi and Ginters, 2019). It means that this
area of extreme uncertainty factors that are used for start-up endeavours.
From the above principals, it can be stated that Lean Canvas is generally ease/speed in
completion. With respect, focus on high-risk aspects of start-up and actions that are taken at
prioritizing so that actionable items are related to building successful business outcomes (Xiao
and et.al., 2019).
Process of Business Model Canvas
Business Model Canvas is a graphic representation in which several numbers of variables
generally show the value of a particular organization. This is a model that can be deployed as a
strategy for the development of new business (Tidd and Bessant, 2018). With this regard,
Made.com implement their development with a new different designs in wooden products. In
addition to this, it also analyses the situation for an existing work that changes with
implementing new things in it. Therefore, the following are different blogs which consider a
successful model for the chosen organization:
 Key partners: Made.com consider several keys partners such as TV channel providers to
become more accessible consumers. For instance, online sites, pop ups, etc. In addition to
this, there are several content production companies with the chosen company work
(Heikkinen, Belt and Haapasalo, 2018). Furthermore, this enterprise provides content
from different networks in which it includes DreamWorks Animation, Sony
Entertainment, Universal pictures, etc.
 Key activities: In order to perceive different key activities, it can be stated that Made.com
contains several aspects. In this consideration, several activities performed by the
organisation such as processing DVD orders, streaming digital content, producing digital
content, development of technology, etc. (MAYOROVA, SHINKAREVA and
MALININ, 2018). In addition to this, new customer acquisition considers important
activity in which selected businesses streaming their performances to attract more
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customers. With this regard, the marketing expenses of the company grow continuously
in order to increase their subscribers. Customer viewing suggestions also help in
improving the five-star rating system with certain recommendations. It assists to build
Made.com’s content.
 Key resources: In this aspect, it can be stated that Made.com considers technology
infrastructure. With this regard, infrastructure facility related to Amazon and master
copies as digital films. Each film movie being stored on Amazon S3. In addition to this,
data are sent to the content delivery networks that feed content to ISPs. Furthermore,
license content which provides wide range that considers diverse title licensing in several
activities (Biemans, 2018). Original content consider in 2007 and specific content
development for niche consumers.
 Value propositions: Value proposition consist more effective pricing facility that helps to
gain more effectiveness. In this regard, it can be stated that furniture at a substantial
discount with luxury retailers (Alexander, 2019). In this regard, with an advertisement, it
can be seen with exclusive content. It is very difficult to find elsewhere, so that co
creation designers with exclusive of particular products. Quickly new concepts build with
own product portfolio for future development.
 Customer relationships: There are several aspects exists that help to maintain customer
relationships. In this consideration, communication is one of the main aspects that help to
successfully proved to offer substantial opportunities with different customers. For
instance, FB, newsletter, Twitter, etc. tools included that are related to the selected
business. Furthermore, a self-service website is another important aspect that provides
important information about the website of the company (Rosca, Agarwal and Schlegel,
2019). Help center website solve doubts of customers by providing services to them.
With the help of first-line communication, this problem can be solved in a systematic
manner. Customer services also helpful content to maintain a relationship with providing
services online. In this aspect, self-service web site is not useful or helpful and unable to
solve problems of customers, there is a possibility to directly connect with customers
with contacting services online (Laptev and Sozinova, 2018).
 Channels: There are several channels in which Made.com consider their streaming of the
app. With this aspect, the main element is a website which is a well-known channel. It is
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streaming customer use in a successful manner. Furthermore, IOS Apps also used that
helps to offer same features as website provide (Nicholls, 2018). Along with this, mail
and e-mail is another channel that helps to bring successful results via mail. Furthermore,
the app considers highlights the newest and greatest content that is added to Made.com
which operates in many areas of the world. Moreover, it is also considered designer
furniture. This is because there are several different video game consoles that provide
content streaming users to stream content that are available at Made.com.
 Customer segments: Customer segment consider proper customers in the different world
that creating thus enterprise with pay a limited amount of fee. With the help of app, it can
be stated that people can easily order designer furniture and receive them with the trusted
products. Nowadays, this system only work in the world. Furthermore, streaming content
customers with mass & niche strategy, it can be seen that Made.com understood the
digitalization trend to stream content. With the help of a niche segment, it can be stated
that it looks very specific which is very hard to find elsewhere (Koster and Lambooij,
2018). The mass-market generally watches more mainstream content. Along with this,
product placement is another strategy that is useful for the customer segment. With the
help of this strategy, Made.com moved into app with creative design. With the first series
of house cards, it is well known in many areas. In addition to this, Made.com understood
that with the help of digitalization trends, it can be stated that customers stream content.
In this aspect of the segment, there are 2 broad segments such as mass and niche markets
available everywhere. Both segments pay a particular amount of fee that helps to deliver
content (Heikkinen, Belt and Haapasalo, 2018).
 Cost structure: Made.com consider their cost structure with taking perfect design,
processing costs of taking creative furniture, content license contracts, facilities, staff,
equipment data, original content producing cost, communication, etc. With this regard, it
is essential to maintain same cost structure because no other company provide same cost
as shown (Norman, Parry and Van Hout, 2016).
 Revenue streams: There are several subscriptions available that help to Made.com to
contain revenue. In this regard, designer wooden furniture offers different opportunities
at attractive prices for maintaining customer loyalty. In addition to this, streaming plan at
a particular rates that are also available for attract more customers. With respect to
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considering the main competition, it has been seen that Made.com dealing with
competitive pricing that is more beneficial to deal with in different areas of the world.
Key partners
 Different
app
channel
providers
 Productio
n
companie
s that
provide
content
Key activities
 Streami
ng
content
of
digital
aspects
 Viewin
g
suggest
ions of
custom
ers
 Develo
pment
of
technol
ogy
Value
proposition
 Increa
sing
aware
ness
 Delive
ring
absolu
te
conten
t work
Customer
relationshi
p
 Web
site
of
self-
servi
ces
 Com
muni
catio
n
 Serv
ices
for
cust
omer
s
Customer segments
 Different set of customers with pric
 Replacement of products.
Key resources
 Infrastr
ucture
of
technol
ogy
Channels
 Web
site
 App
s of
IOS
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 Content
for
niche
market
 Vide
o
gam
e
cons
oles
Cost structure
 Creative cost for different products.
 Processing cost for creative furniture
 Designer products
 Communication
Revenue stream
 Plan of different products
 Streaming of plan transparency communication
Evaluation of the theory
Benefits
Made.com saw their gap which feels with providing creative designer wooden furniture. In this
way, they created their services in the pan world. Services are very effective so that customers
attracted easily. Furthermore, technology advancement also positive that innovates several
activities in a systematic manner (Rosca, Agarwal and Schlegel, 2019).
Limitations
However, expansion is very risky. This is because the financial return on investment is hard to
implement successfully. Therefore, it can be stated that a successful strategy has been
successfully developed (Heikkinen, Belt and Haapasalo, 2018).
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APPLICATION OF INNOVATION THEORY IN THE HISTORICAL
DEVELOPMENT CONTEXT
Company background
Made.com is a streaming service which allows their customers or members to watch
different varieties of shows such as bed, sofa set, chairs, draining table, dining table, etc. With
the help of this program, customer can easily enjoy unlimited content that is discover something
new. Every month it include different types of services and content provided by the organisation.
Made.com content at one time which can be view in term of standard definition, ultra-high and
high. There are different plans has been set such as mobile, basic, standard and premium (What
is Made.com?, 2020). The mobile plan consists plan with creative furniture which includes a
watch on a different app at a particular time. Standard plan consider 2 creative furniture that
considers 2 devices at a particular time. On the basis of the premium plan, it can be stated that
there are 4 screen plans available with HD/UHD 4K at the same time that include high definition
when it available.
As a member of Made.com, it can be stated that once a month on the date that originally
signed up. For more consideration, different plans can be seen. Along with this, there are 190
countries in which Made.com members get instant access to great content. The organisation has
an extensive content of global creative furniture featuring that getting award-winning Made.com
which consider different products and many more (Heikkinen, Belt and Haapasalo, 2018).
Generally, content is varied by region to region that might change over time. Different devices
are also useful that assists to watch anywhere, anytime with thousands of devices.
Historical development
Made.com is an online furniture retailer which founded in March 2010. This company is
generally UK based enterprise which expanded in different areas of the world such as Ireland,
France, Italy, Germany, Belgium, etc. They are primarily operates with different kinds of online
channel, they are promoting great relationship with different network with creative designs.
Their sales growth is also developed 50% more to get unique success in different areas of the
world. Unique business model of Made.com revolutionized in field of furniture retailers.
Made.com consider customer centric business model in which customers put effective
price to get creative furniture products (Nicholls, 2018). IKEA is one of the greatest competitor
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which deals in different kinds of furniture products. On the basis of upcoming designers get to
submit unique designs with favourite designs. It helps to boost country economy in positive
consideration so that it is important to deal creative results. Incorporate designs is also useful for
different product line of an existing company.
APPLICATION OF THE INNOVATION THEORY IN THE FUTURE
DEVELOPMENT CONTEXT
Future development
Made.com considers its innovations for future development programs. In this regard, they
are continuously turned to reach different dimensional marketing activities that help to hit
different locations of the world. Marketing generally push shows of Made.com with their
creative furniture products. Therefore, the biggest content drop in 2010 which helps to attract
many customers. The company also predicts new customers those are adding continuously and
giving great competition to IKEA organization. With respect to deal with the competition, it can
be stated that success also gains to work with Made.com. There is online app is a major element
that make more success in the organization. Furthermore, the company also spend more money
on their content that helps to get more users and enhance market capitalization as well. This year,
they are going to be dealing with the biggest challenge which needs to streaming creative
effective results in the company. There are different products adding by company to make more
productive results in the company. On the basis of different creative furniture, it can be stated
that customers attracted to deliver positive outcomes (Rosca, Agarwal and Schlegel, 2019).
In addition, Made.com also spends made emerging talent that is more important for
upcoming designers get unique design. Different designs of wooden furniture helps to submit
profitable results. In addition to this, it can be stated that boost world economy of the different
country (Nicholls, 2018).
Made.com strategy outspends rivals that are IKEA so that they match with successful
outcomes. The second biggest competitor company is IKEA so that the chosen organization got
into a bidding war with other companies. A comedy-drama television series also show by the
organization which studded cast led by different companies. On Made.com, there are several
shows present that would be the first big marquee with new services. Made.com also dominates
in the App that make creative services that grew several subscribers all over the world. The
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chosen organization is also watched by 45 million customers in all over the world in starting
seven days within the services. Another movie also released by the organization in December.
On the basis of different customer’s views, it can be stated that co-create that is way for feel
more connected to the brand of an existing company.
In order to deliver express more effective result within incorporate personal style for
particular products of existing company. (Alexander, 2019). With existing plan, proper attention
also boost world economy into production.
CONCLUSION
To conclude the present report, it can be stated that Made.com considers its effective
planning and streaming video as well. With this regard, the present study summarises Business
Model Canvas. Based on this model, it can be summarised that different elements of the
successful model help to deal in several areas. Furthermore, the report articulated key partners,
resources, channels, value proposition, revenue stream, customer segment, etc. With this
consideration, it can be stated that the successful planning of Made.com helps to deal with
different areas. In addition to this, the report discussed company background and historical
development. Based on the different contexts of company background, it can be stated that
several subscribers attracted by the international market as well. In this regard, the continuous
development of the organization with increase customers is one of the important elements.
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REFERENCES
Books and Journals
Alexander, B. ed., 2019. Managing Medical Technological Innovations: Exploring Multiple
Perspectives (Vol. 5). World Scientific.
Biemans, W., 2018. Managing innovation within networks. Routledge.
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Adaptation to Assist Visual Trend Analytics in Managing Transportation Innovations.
In Workshop on ICTE in Transportation and Logistics (pp. 319-327). Springer, Cham.
Cronin, M.J. and Dearing, T.C. eds., 2017. Managing for social impact: Innovations in
responsible enterprise. springer.
Doz, Y., 2016. Managing multinational operations: from organisational structures to mental
structures and from operations to innovations. European Journal of International
Management, 10(1), pp.10-24.
Heikkinen, T., Belt, P. and Haapasalo, H., 2018. Managing radical innovations in established
companies. International Journal of Management Practice, 11(4), pp.422-447.
Koster, F. and Lambooij, M., 2018. Managing innovations: a study of the implementation of
Electronic Medical Records in Dutch hospitals. International Journal of Innovation and
Technology Management, 15(01), p.1850006.
Laptev, A.V. and Sozinova, A.A., 2018. ANALYSING" UNDERDEVELOPMENT
WHIRLPOOLS" AS A TOOL FOR MANAGING INNOVATIONS AND THE
PROCESS OF REORGANIZATION OF ENTERPRISE STRUCTURES. Quality-Access
to Success, 19(S2), pp.3-7.
MAYOROVA, E.A., SHINKAREVA, O.V. and MALININ, S.A., 2018. Developing innovations
in retail trade in Russia. Revista ESPACIOS, 39(19).
Nicholls, A., 2018. Managing educational innovations. Routledge.
Norman, I.J., Parry, C.D. and Van Hout, M.C., 2016. Best Practices and Innovations for
Managing Codeine Misuse and Dependence. Journal of Pharmacy and Pharmaceutical
Sciences, 19(3), pp.367-381.
Preece, D., 2018. Managing the adoption of new technology. Routledge.
Rosca, E., Agarwal, N. and Schlegel, J., 2019. Developing and managing innovations in
resource-constrained settings. The Routledge Companion to Innovation Management.
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Stevens, V., 2018. Managing the Ostrich's dance: a study on the management of collaborative
networks for the promotion of policy innovations. University of Antwerp.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Xiao, J. and et.al., 2019. Managing the e-commerce disruption with IT-based innovations:
Insights from strategic renewal perspectives. Information & Management, 56(1), pp.122-
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Online
What is Made.com?, 2020. [Online] Available through:
<https://help.Made.com.com/en/node/412>.
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