Blue Ocean Theory of Innovation: Explaining Historical Development of Organisational Service

Managing
Innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Description of innovation theory.................................................................................................1
Application of innovation theory for explaining historical development of organisational
service..........................................................................................................................................5
Application of theory for recommending possible future development pathways of
organisational service..................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is defined as deliberately implementation of imagination, information together
with initiatives for deriving different values from available resources and involves processes to
generate new ideas along with converting them into functional products. It is viewed as applying
better solutions which gave capabilities to meet unarticulated demand, new requirements and
emerging market choices (Biemans, 2018). It takes place through provisions related to more
effective products, business models, services, technologies etc. innovation creates bigger
opportunities along with are necessary for success, survival and growth of enterprise. For
realising leaders, it is crucial for leaders to be collaborative as well as open minded. For any
business, innovation is crucial as innovating something means introducing new addition to
improved merchandise, processes and methods with the hope of improving productivity, building
brand values, increasing turnover, reducing costs and establishing new relationships. Moreover,
innovation can be done through launching new technologies, working practices and process for
giving more consistent product quality. In this report, chosen innovation theory is Blue Ocean
Theory of Innovation. The theory is simultaneous pursuit of low cost as well as differentiation
for opening in new market space as well as creating new demand. The theory is executed across
industries and businesses. It captures new demand and make competition irrelevant through
applying better solutions in exiting products that meets new requirements, current needs and
unarticulated choices.
MAIN BODY
Description of innovation theory
Innovation theory is defined to the framework which explains the ways in which
advancements gain traction along with over time spread within particular situation. In an
organisation, innovation is managed by superiors through appropriate framework of innovation
management (Blue Ocean theory of innovation, 2015). The theory comprises of market creating
innovation. In modern world, the theory is adopted by various companies such as Ocado, halo
Fresh, Yellow tail, Cirque du Soleil, iTunes, Backroads etc for having more success, enhanced
profits along with fewer risks in blue ocean market. Deliveroo follows Blue Ocean Inn ovation
theory that generates uncontested market space, emphasis on larger picture and getting strategic
sequenct accurate for innovation of services in online food industry. The company time to time
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innovates its services through adding mew methods or elements in the working that meets needs
of customers for timely delivery and many more. Following are some innovation theories
through which the entity can use for innovation aspects:
Blue Ocean theory of innovation
The theory is based on the principle of value innovation. It was propounded by W. Chan
Kim along with Renée Mauborgne. The theory majorly deals with competition within market
space which are unrecognised with instates customer preferences and are required to realise and
further developed (Agnihotri, 2016). The theory revolves around finding for company wherein
few businesses operate and have limited pricing pressure. The aim of the innovation theory is for
creating something innovative which makes competition irrelevant for business. It offers
systematic together with reproducible processes in context to innovation to both either new or
established organisation. Its frameworks are designed as per visualisation for not only building
effective collective wisdom of firm but to properly implement easy communication. The key
principles of Blue Ocean theory of innovation are as follows:
 Reaching beyond current demand: Blue ocean theory assists organisations to reach
beyond the demand of market and customers in present state so that products gains
recognition in dynamic business environment. The principle assist managers of Deliveroo
to work hard and offer services that are beyond current demand. The entity emphasis on
the ways to gain potential further customers which are not existing buying from market
for some of the reasons. This also suggests in emphasising on understanding which keeps
potential buyers out of industry and work to make strong position in the large growth
sector.
 Reconstructing market boundaries: Blue ocean theory reconstruct market boundaries
for a business in order to perform outstanding activities by adding something new in
methods or processes of business. The principle suggest that organisations are required to
look towards what the market is performing, competing and devising strategy which are
vastly distinct that others. The principle helps Deliveroo to use aspects such as eliminate,
reduce, create and raise framework for developing effective strategy which will generate
uncontested market space and reconstructing market boundaries.
 Emphasis on big picture: Blue Ocean theory has principle of focusing towards big
picture despite of numbers. It helps in attaining set targets with huge values and
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