Managing Innovation in Organizations

Running head: MANAGING INNOVATION IN ORGANIZATIONS
MANAGING INNOVATION IN ORGANIZATIONS
Name of the Student
Name of the University
Author Note

MANAGING INNOVATION IN ORGANIZATIONS1
Table of Contents
Introduction......................................................................................................................................2
Application of Disruptive innovation theory...................................................................................2
Application of disruptive innovation in historical development of WeWork.................................6
Application of disruptive innovation in future development of WeWork.....................................10
Conclusion.....................................................................................................................................11
Bibliography..................................................................................................................................12

MANAGING INNOVATION IN ORGANIZATIONS2
Introduction
As discussed by Vecchiato (2017), innovation can be defined as the methods or ways that
are implemented by organizations for the purpose of doing things or completing specific tasks as
well. The new ideas and devices alone are not able to signify the process of innovation in
different organizations. Modification in the business models and adapting to the changes can be
helpful in achieving the better services and products. Innovation is thereby considered to be the
process of introducing new products and services in the industry and implementing the new ideas
as well. An innovative idea proves to be highly useful in the current business world and it is able
to enhance efficiency levels of different organizations as well (Christensen et al. 2018).
According to Hopp et al. (2018), disruptive innovation can be defined as an innovation
which has the ability to create an entirely new market as well as value based network. The
established market and value network is thereby displaced by the development of a new network
with the implementation of disruptive innovation. Disruptive innovation has also been named as
one of the most influential ideas implemented in the 21st century in different organizations. The
innovative ideas or activities that are a part of disruptive innovation process are considered to be
revolutionary in nature (Gobble 2016). The report will be based on the study of the development
and implementation of disruptive innovation in a major technology based organization like
WeWork.
Application of Disruptive innovation theory
Definition – According to Christensen et al. (2018), the theory based on disruptive
innovation has proved to be powerful method based on proper thinking related to growth that is
driven by innovation. The leaders of the small entrepreneurial organizations have provided major

MANAGING INNOVATION IN ORGANIZATIONS3
levels of importance to the process of disruptive innovation. However, the core concepts of
disruption theory have been misunderstood in a huge manner due to which it is applied in an
ineffective manner. The industry patterns are changed in a huge manner due to the
implementation of disruptive innovation and this is also able to bring changes in various strategic
approaches (Wilson and Tyfield 2018).
The success that is gained by an organization as a disruptive innovator is not applicable
for the all the firms in the same industry. Disruption can thereby be defined as the process in
which a smaller organization can challenge the established incumbent business organizations
with the help of few resources. The entrants are considered to be disruptive in nature if they are
able to overlook the segments by gaining a foothold in the industry. The incumbents in the
industry who seek high levels of profitability provide quick response to the disruptive innovation
processes that are implemented in the operations (van den Broek and van Veenstra 2018).
Principles and processes of disruptive innovation theory – The management of an
organization is considered to be responsible for maintaining its competitive edge in the industry
when the changes are implemented in its operations. The success and failure of a firm is thereby
based on the methods by which different processes are completed rather than the implementation
of any particular technology (Reinhardt and Gurtner 2018). The five principles related to ways
by which disruptive companies run and the reason behind their success are as follows,
1) Customers are able to determine the process of resource allocation – The needs
and demands of customers are taken into consideration by disruptive companies
to decide the resources that are required for development of the products. The
entire organization can be aligned with the disruptive innovation or the entire
organization can split the focus between the sustaining and the disruptive