Managing Innovation

Managing Innovation

Table of Contents
MAIN BODY...................................................................................................................................4
Innovation Theory..................................................................................................................4
Application of the Innovation Theory....................................................................................9
Application of Innovation theory in context of Historical development..............................12
Application of Innovation theory for future development...................................................13
CONCLUSION..............................................................................................................................15
REFERNCES.................................................................................................................................16
INTRODUCTION

Innovation is a process that is related to a change that is brought in a existing product or
new ideas that are bought by a organisation in their present products so that they can make
continuous innovations and retain their existing base of customers. There are different creative
solutions that can be bought to existing products and services of a organisation. It can be done by
creation of a new product to existing range or development of a completely new product. There
are different innovation theories that can be applied to a organisation to understand the process
of innovation (Noble, 2017). Present report is based on application of diffusion theory to context
of a organisation to gain insights about the way innovation is evolved in a organisation.
Diffusion of innovation theory is earliest theories of innovation and it was founded by E. M.
Rogers in 1962. this theory is applied to a product or a idea to understand its strength on time &
spreading across a particular area. This theory is applied when a organisation is launching a new
product and services or making any changes in their existing product or services.
MAIN BODY
Innovation Theory
Diffusion of Innovation theory is very helpful for a organisation in developing a
understanding the way buyers are adopting any new product or services. This is a theory that
was developed in year 1962 by E.M Rogers. This theory is used for expanding the new ideas that
are being developed by a organisation. Innovation can never be adopted by all organisation at
same time but it is always adopted in a sequence that is classification is based on categories like
early adopters according to the tome that is taken to launch their innovation (Diffusion of
Innovation Theory. 2019). This category of adopters is divided in different categorises as
mentioned below:
 Innovators: Organisations who are part this segment is who are using the product for
first time. These organisation are always involved in making continuous researches os
that they are bale to launch some new options for their customers. These organisation are
willing to take higher risks and has to make new innovations. These organisation posses a
strong financial background and this is the reason they can bear the situation of high risk.
 Early adopters: Early adopters are the ones who are representing the opinion leaders &
those who are willing to enjoy the change opportunities. These are aware of requirement
to adopt changes and do not find it much difficult in the process of adopting new ideas.

Early adopters are providing information to different adopters who are searching for
some new product or a innovative idea.
 Early majority: People who are part of this category are not leaders but can also work
for any new idea. These are the ones who are willing to search for evidence whether it
will work for them or not. These strategies will be used as marketers to appeal to this
segment of adopters (Routledge. Jurkovic and et. al., 2015). Strategies that assist people
who belong to this group is the evidence of success stories , innovation etc.
 Late majority: organisation and individuals who are part of this category are very
sceptical and cautious about adoption of innovation. They are willing to adopt innovation
practice only after they have a proof about its outcomes and they are sure that it has been
adopted successfully by the early majority segment. Strategies can be adopted for
utilisation for the targetting this segment of population and it comprises of data provision
that is related to number of people who have been involved in trying the innovation and
adoption more feasibly.
 Laggards: These are the people who are part of this category and are last to adopt a
innovative practices and are bound by traditional and a conservative ideology. They are
the Hardest to get convinced for adoption of innovation. There is formation of startles to
appeal this category to that consist of pressure from personnel, statistic figures from other
adopter categories.
Illus
tration 1: Diffusion of Innovation theory
(Source: Diffusion of Innovation Theory, 2019)
The process of this theory: