Managing Innovation

Managing Innovation

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Innovation theory and its explanation in detail......................................................................3
Implementation of theory that explain historical development among organisational product
and service..............................................................................................................................7
Disruptive Theory in context of future development.............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term innovation is explained as the process for converting an idea or invention into
product or service that satisfy need and wants of customers in an organised manner. In order to
develop an innovation an idea must be replicable at an economical cost and the main motive of
innovation is to satisfy need and wants of market in an appropriate manner. This report is written
from perspective of Ocado which is an online grocery store and in present scenario it work with
adoption of Ocado smart platform for performing work as market leader in the world (Bailey and
et. al., 2018). Moreover, this report highlights on innovation theories such as disruptive
innovation and diffusion of innovation theory for the improvement of products and business
model. Implement of innovation theory from perspective of historical development and future
development context will also be included in the report. In the last, implement of theory among
organisation is focused in the upcoming report.
MAIN BODY
Innovation theory and its explanation in detail
Disruptive innovation
Disruptive innovation works as a technique that is utilised for applying new technology
among the organisation. It is also used by management for improvising the process of Ocado that
leads to complete all task with more efficiency and effectiveness by implementing innovation in
existing process of organisation. The nature of disruptive innovation is stealthy that offer inferior
in the existing market technology. With the analysis of UK retail market it is identified that the
market conditions is too competitive and most of the organisations are performing their work at
global level (Bates, Ingram-tedd and Shields, 2018). So it is difficult to compete with retail
organisation but with the help of innovation it is easy to sustain in market and attract more
number of customers through adopting innovation.
Principle of disruptive innovation
In order to implement disruptive innovation there are different principle implemented by
organisation which leads Ocado to implement disruptive innovation. Some of them are mention
as follow:
 To assume possibilities- An organisation required powerful ways or methods to re-
establish and reinvent the business than helps to assume some paths. This leads an

organisation to formulate or find new areas that not exist in market. So the assumption
principle supports an organisation to implement innovation in product and services.
 To work with experience- In the present scenario, there are various situations exists
in market such as change in policy, new trend etc. which generate challenge for
organisation to complete their work (Bieraugel, 2015). So by using the experience from
previous situation it is easy for management to formulate right innovation methods.
Example- Ocado implements disruptive innovation method to make presence of its
stores on online platform.
 Embrace failure- According to present market conditions there are various ideas
implemented by management. So to implement them among all departments Ocado
management explain the benefits of innovation that leads to select right method of
innovation for organisation.
Process of disruptive innovation
The process of the disruptive innovation is competent for establishing changes in the
organisation or enterprise by entering in market from bottom point. This process slowly leads
business for continuing growing to the up market. There are four different steps mention as
follow to understand disruptive innovation.
 Change in market- With the disruption method and organisation is able to make
changes in their normal process. This is the first step which is applied by Ocado for
entering in the market in a successful manner. Moreover, in order to achieve more
success disruptive innovation implements changes among all segments.
 Innovation for low end or new market- The term low-end disruptive innovation refer
to a business plan that is enough for satisfying needs of lower markets. With taking
action towards low end market it is easy for organisation to make their focus on greater
profit margin (Bowers and Khorakian, 2014). Similarly, for new market business
compete with rival companies with low price rate. So with emerging model of disruptive
innovation it is easy to earn revenue from new market by focusing on under-served
customers.
 Disruptive innovation inclusive procedures- This is the last that relates with overall
process for organisation it refers among all operations and functions disruptive
innovation perform their work. In simple terms it governs that Ocade is performing their