Management of Innovation (Made.com) [pic]

COM 2 Innovation theories are basically the theories which help organisation to develop, grow and expand their business in such way that it remains powerful and competitive in different situations aswell.The renovation theory will help them to make the optimum us of the resources and by providing standard quality and performance. Com for this technique with no change in the existing market,customers need to either buy or listen on the technique which is already successful in the industry.their focus is to grow and improve the product as well as

Managing
Innovation
(Made.com)

INTRODUCTION
Innovation is implementing the new idea into action by bringing all the resources
together effectively and efficiently.
Management of innovation is basically a combination of innovation processes
and management. it allows manager and innovators to have a cooperation with a
common understanding of the goals and processes and it improves the performance of
business and make it capable of being competitive ion dynamic situations. Present
study will lay focus on Made.com. It is basically a London based company that designs
and retail the furnitures and home wares online, across a network of showrooms in
Europe. Made.com was launched in 2010 earlier it is completely online but after
adopting some of innovation theories they bring up to physical showrooms also.
Report will highlight one or more innovation theories used by company which will
help them to exist in the market for long run. It will also show the historical development
of products and services designed by Made.com.
PART 1
1.INNOVATION THEORIES ADOPTED BY MADE. COM
Innovation theories are basically the theories which help organisation to develop, grow
and expand their business in such way that it remains powerful and competitive in
different situations as well. The renovation theory will help them to make the
optimum us of the resources and by providing standard quality and performance.
1.Disruptive innovative theory
This theory says that any innovation that creates or develop a new market by providing
different set of values, which overtakes an existing market. In terms of better technology
or low price.
This is the theory which are adopted by the Made.com to innovate new products and
disrupt the existing market.
Made. Com innovate a wall of product sheets and samples which product a long
lasting impression on the customers. Each and every piece of furniture in collection has
their own product sheet that customer can take with themselves along with the product
sample. As Made.com wants to eliminate the hurdle which employee faces while
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purchasing expensive product (Allen, Adomdza and Meyer, 2015). These sample acts
as a guide for employees and give them the impression about what the final product
would be.It is one of the clever retail innovation technique adopted by the company
which help them to disrupt the other companies existing in the same industry. The
another disrupt which bring by MADE. COM in market is innovating a digital assistant
which help people to shop the product .this digital assistant is black plastic card with a
sign of + on the back of the card , which provides information about the product and the
information is automatically displayed to the customers when the tablet is placed on the
top of the card.
Analysis
this innovation technique used by Made.com brings offline and online worlds
together and help customers to get all the information without the price tags. The
another feature of this theory is disrupting the complete existing market of the industry
by bringing amazing designs of the store attractive stores attract many customers to
walk in. Everything is well managed and clearly arranged and terribly attractive (Tell and
et.al., 2017). If anyone compares the design with outstanding services than it can be
said that it is a winning combination for any organisation as same with Made .com .this
term disruptive innovation may sometimes found misleading when we used it as to refer
a particular product and services at one fixed given point instead of evolution of product
and services over time. Sometimes of idea of disruptive innovation fails for Made. Com
because this indicate no change in technology compared to other firm of the same
industry. This theory in successful for only with the firm which are ell managed. And
they are having good and effective market research and development (Archibald and
Archibald, 2016).
In this technique with no complete change of the product and little required
change and alteration in product according to customers need and requirement
Made.com remains attach to customers as they listen consumer needs and
requirements and the product is already known to customer which help Made.com to
earn good amount of profit as ther are many customers who continue their trust on the
product and on the company., benefiting both customers by providing altered products
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to satisfy their needs and Made.com to ear good amount of profit as well a increasing
their goodwill (Noorderhaven, Koen and Sorge, 2015).
Radical vis incremental theory of innovation
This technique uses the existing product with a minor innovation and change in
it ,which is familiar to available customers and make it possible for customers to buy the
new alter product as that was already known to them.
Made. Com has two ways to innovate their products either incrementally or
radically. The company can choose either or both of the technique to get success in the
market depending on some factors which affect the company and the new innovated
product. Incremental innovation does not have huge changes in the product, company
which innovate incrementally its focus is to grow or do a little at one time .
Analysis
This technique has many advantages including continuous and timely
improvement in products if needed. They are relevant to the consumers and it helps in
making of product more competitive continually. This technique adopted by made.com
as it focused on reduction of cost also. This technique has somewhere advantage on
the product that it is difficult and hard to go wrong. Incremental strategy is a good way
for company to make things in growing direction but also at the same time this is not the
only way on which company has to depend on. (Landaeta, and et.al., 2016). This
technique of innovation is basically an up gradation or required improvements in
existing product. Made.com focus on improvement of the existing product for its further
development through this strategy. Whereas Radical technique of innovation also helps
Made.com to get success in short run and increase probability compared to other firms
in an entire industry. This technique implies the development and innovation of
complete new technology which is not existed in the market before its launch (Prange
and Schlegelmilch, 2018).disruptive innovated product has capability of creating a new
huge market niche. And any innovation which is entire new in the market and success
of that product can completely transform the whole market , industry and society.
Hence, these levels can be defines in following points.
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1. Breakthrough innovation
2.Disruptive innovation
3.Game changer
Radical innovation is basically a complete new entry in the amrket which disrupts
the existing market products, business and industry.
This is kind of innovation which is much riskier in comparison to incremental
theory of innovation but also at same time it is capable of earning high returns.
Made.com has innovated many products through radical technique that is they produce
many compete new products whose availability are not in the market before their
innovation. The designer Living sofas, armchairs with more comforts and for small
spaces are some products which are complete new in the market and industry for all.
For implementing radical approach Made.com require enough and optimum availability
of resources so by using all those resources efficiently they are able to produce new
goods with complete new technology (Halemane, Janszen and Go, 2017).
They are generally worked in large corporations or in the organisations which are
having wide venture network. There are many products which are developed by
Made.com through radical approach are living sofas ( sofas which are, made for small
spaces with comfort).
There is chance of winning over competitors in industry as this approach helps
Comrade to bring a complete different brand and product.
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Illustration 1: Sales chart
Source: (Made.com, 2016)

This also helps new challengers to use this approach and get to ear better profits.
Similarly, those innovations which have major impact in any way in industry can be
defined as radical. This approach prepare Made.com for future growth and also creatinh
new market niches.
Radical approach is basically the one of the innovative approach which requires a lot of
efforts to combine all the resources and optimising the best from it (Bengtsson and
et.al., 2016). The Best combination of resources will bring a better and new product
which can be further introduced in the market by Made.com to offer innovative product
and to earn higher success. Introduction of new technology and working on that
technology is itself a difficult task by Made.com, but successfully working and efficient
use of resources help organisation to achieve success in the industry and using the
resources in nan efficient manner., benefiting customers, industry, economy and the
company itself. For successful implementation of this theory some factors which
Made.com has to keep in mind and they are:-
 Market learning,
 competitor product and policy,
 customer's taste and preferences,
 industry requirement,
 competition,
 target segment of customers,
 goodwill of company
 available resources (including human, finance, capital)
 informal networks
 Allocation of resources.
In addition, of all these factors Made.com attracting new creative competencies from
different sources internal and external.
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PART 2
2. Theories of innovation applied on historical development of products or/ services by
Made. Com
Made. Com is business involved in designing furniture and manufacturing
process. They have collaboration with many designers in the year of 2012, Made.com is
awarded by a huge leader and the prize they received is putting their design into
product innovation and launching that product into the market through their official
website of Made.com. Company is in partnership with design museums so that the
designers got opportunity to create designs and submitting those designs for different
furniture products including two seater sofas etc. The customers/public have a variety of
option to choose their desired design on Made.com website
Many graduate designers offer their designs and their designs get into the
production and sold into the market through Made.com website.
The company by using innovation techniques minimises their overheads by online
selling their products. This disruptive innovation technique help Made.com to achieve
great success as it benefited customers to choose their favourites from online showcase
of furniture through the site of Made.com .
Customers can select and can give order for the production and if three is mass
production of particular goods than order's go directly to the manufacturers for
production of the goods. After the production these goods are shipped and delivered
and dispatched to the customer's place.((Cohendet, Parmentier and Simon, 2017).)
This disruptive technique bring a huge interruption in the industry as before the
customers has to go physically to purchase the furniture but after this innovation and
technique online trading can be done easily of furniture, which disrupts the existing
market and products and it leads to greater success for the company. Made.com does
not own their factories instead of owning they give commissions to factories which help
to meet their orders.
Disruptive innovation theory of Made.com on its product design of furnitures and
Sofas
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Figure 1Disruptive innovation theory
(Source: What Is Disruptive Innovation, 2018)
Chloe macintosh who is a co founder of Made.com being a creative personality
whose mission was to offer the new and innovative designs to the market at better
prices. The good thing about which leads Made,com to a great success is their skills in
listening their customers and press (Goffin and Mitchell, 2016).
The only priority of business is to listen to the customer's need and requirements
and implementing the same. From all these factor Made.com built s a goodwill, brand's
value and promise (Biemans, 2018). The company being purely a online brand with no
physical shops has to show different ways to show their products to the consumer that
the product is completely made with different features and customers according g to
their needs and requirements choose out the best which satisfy his need and affordable.
Made.com communicate with people through videos, media, television and make
a trustworthy attachment to its customers.
Made.com was the first real brand which was made online and this is a huge disrupt all
over including market, existing firms and their products, industry which gives disrupt
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everywhere and leads to a greater successful organisation through his innovative and
disruptive technique of innovation.
The only challenge faced by the company is physical availability of showrooms
as customers want to see, touch the product quality before buying the product (Rubin
and Abramson, 2018). They capture feedback from, customers and useful feedback is
taken into consideration for their further product development. This could also be
considered as disruptive technique as the existing firm with physical stores got
disrupted because of the Made.com new offices or showrooms.
Radical vis incremental theory of innovation of Made.com on its product design
of furnitures and sofas
Radical theory of innovation on product design is tremendous by Made.com. The
company does not restrict to one design or only product style, they keep on changing
and altering the products design according to requirements of customers through their
feedback.
Radical theory brings innovation or introduction of complete new technology or
new design which get attracted by the customers into the market (Dodgson, 2018). This
theory brings a great change in a market or industry but there is also a chance of failure
too for the company, efficiently managing all the resources and factor for introducing a
complete new technology to the market special skills, knowledge are required by the
company. Made.com adopted this technique to introduce complete new product design
in the market and the introduction of new designs by designers require special skills
and efficient usage of this theory on their in individual product design.
The radical innovation offers a framework which is very much rational and are
likely to be adopted, as new products make customers exciting and force them to see,
buy and enjoy benefits derived from the new product with new technology and
additional features. Whereas Incremental theory brings a little change or required
alteration into the product to satisfy the needs and wants of the customers (Halemane,
Janszen and Go, 2017). This theory is different from radical technique as there is no
complete introduction of new technology, instead change or addition of some features in
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existing product to keep the product remains competitive in the market in a long run.
Therefore, these techniques applied by made.com on their different product designs.
Some products design are capable of satisfying the customers but requires little
alterations which somewhere are necessary to change so to satisfy the customers need
and wants. Customer satisfaction is the most important factor which Made. com is
keeping in mind.
Product designing or updating the existing design helps Made.com to get
success of their existing product design in long run without disrupting more to existing
market. Product design is one of the major streamline business of Made.com. Their
orders placed by customers depends on their different product designs only which offers
by the company. The more the variety they offer ,the more capturing of larger share in
the market (Sjödin, 2018).
Historical development
Any need which are not satisfying by the customer through existing product
design than Made.,com need to make changes in their design in such a way that it fulfil
the needs of customers and help them, to grow in long run. As like earlier the beds and
their designs are made by Made.com to comfort the customers, but some people find it
space consuming. Which lead Made.com to make such design that it can be used by
the people having small spaces also.
Future innovation Pathway
Through the incremental theory of innovation make it possible to make little up
gradation in existing product that is innovation of sofa beds for small spaces which are
comfortable and affordable.
These sofa beds are helpful fort the customers with small spaces in their living area.\
These beds can easily get converted into sofas and vice versa.
This make customers crave for the product as this product is attracting them in all ways
especially to the people who are having lass space in their area. There are many
examples which can be taken into considerations which made .com have taken to get
success and stability in the market in long run.
Through this innovation techniques only,Made.com is capable of being competitive
worldwide and offering the best to the customers.
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The theory of incremental and radical approach is applied in the companies according
to their requirements.
CONCLUSION
From the above study it has been summarised that application of different
innovation theories by the companies has help them to grow better and have success in
long run. Disruptive, incremental and radical innovation theories are some techniques
which company used for long run existence company has applied different innovation
techniques which help them to earn good profits and as well customers also as the new
introduced product was capable of satisfying needs and wants of the customers. The
company invented different product designs and products which helps in further grow of
the organisation. company requires knowledge, skills, ability and adequate resources
for application of innovation techniques. Innovation has some level that is an innovation
of new product is complete solution to the problem which is challenging and the other
existing product is incapable in fulfilling the need. Hence, this new innovated product
helps to overcome the challenge and problems which are earlier faced by Made. Com.
Basically it could be said that disruptions got to begin without not knowing that
what could not be done. The company start creating a connection with customers so to
get feedback about their product and building a vision for projecting it. By disruptive
innovative technique Made. Com has disrupted the industry so they have to maintain
the trust created online with customers. A complete new design in the market is very
attractive for customers as people wants to buy more features by paying less and this
make Made.com a complete successful organisation. Made.com has continuously,
regularly focuses on factors which made them alert for timely application of the theories.
However, this disrupts are somewhere good for customers as well as for
company as this brings something new, effective and attractive in the market which
ultimately benefiting the customers without paying more. As well as company is getting
higher profit margins as innovative products have no availability of substitutes.
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