Managing Innovation: Theories, Historical Development, and Future Pathways for OLO

This report explores innovation theories such as Blue Ocean and Three Horizon and their application to OLO, a New York-based company that offers a platform for customers to order food from different restaurants. It also recommends possible development pathways for the company's products and services.

MANAGING INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. One or two innovation theories................................................................................................1
2. Apply of innovation theory with historical development of products and services of OLO...3
3. Recommendation of possible development pathways of products and services of firm.........6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation is a practical implementation of ideas with a motivate to introduce new goods
and services or make necessary changes so that wants of customers can be fulfilled. Innovation
is important for each and every organisation as it helps in building strong brand image and
growth of company in external environment. OLO is the interface between the restaurant’s and
on- demand of the world that focus on making customers happy and satisfied. The company
develops digital ordering and delivery program for restaurants. Thus it is a platform that allows
customers to place restaurants order from different points of origin. This report has contained
crucial information related to innovation theories that are used by firm to achieve their
respective goals. Furthermore, it has explained about the historical development of one or more
product or services in context of OLO. At last it has specified about possible future development
pathways of products or services.
MAIN BODY
1. One or two innovation theories
Innovation is process of introducing new products or services by the company so that it
can easily attract range of customers within the organization. Innovations is part of life as with
development of technology, changes in external environment or trends, company need to
adapted to new situation or bring new ideas that could be used by firm to gain competitive
advantages (Biemans, 2018). Blue ocean and three horizon of innovation are two innovation
theory which can be illustrated in detailed as follows:
Blue ocean strategy is an innovation theory that focuses that company need to find
alternative method to promote differentiation and low cost in order to cover large market area
and attract large range of individuals within the firm. In another words, the blue ocean is an term
that states it is “empty ocean” of market options and opportunities that are used by company in
order to stay ahead in competition. There are range of principle that need to be followed while
implementing the Blue ocean strategy so that company can easily adapt the innovation and grow
and sustain in external environment. Such as:
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 Look across alternative industries: The first and foremost step that need to be undertaken
by the company is put efforts in order to analysis what all alternative option available in
other industries. So that appropriate strategies can be formulated to be differentiate from
other competitors in market.
 Look towards the strategic group: Secondly it can be stated that company need to look
over companies that are making use of specific strategy in order to find alternative or some
innovative ideas that could be used by firm to promote its business operation.
 Overview buyer group: Moreover, company need to lay efforts on understanding the buyer
group or the people that are interested to buy products and services. So, on the basis of
needs and wants of the buyer, firm can easily plan a particular strategy that could be used to
meet their respective requirements.
 Complementary products and services offering: In order to implement the blue ocean
theory company need to find complementary products such as tea and coffee are
complementary products. So, firm to be innovative needs to select or introduce any products
that does not have any complementary product related to it.
 Trends in external environment: Lastly, firm can bring innovation by observing key
trends in external environment or what actually people are preferring to make purchase in
order to meet their respective wants.
THREE HORIZON
This is another innovation theory that can be easily adapted by the organization to
enhance its sales volume and market share by adding new and new customers. Three horizon pf
growth is an framework that is based on Mckinsey that helps in determining how well the
company is able to offer better or maximum value to customers so that they can be more happy
and satisfied (Kavadias and Hutchison-Krupat, 2020). The three stages involved in the three
horizon framework can be stated as:
 Horizon 1: The first and foremost areas in which company need to emphasis pertaining
to bringing innovative idea is exploring the current offering of the company. So, that
necessary steps can be taken by the organization to improve its current products and
services and enjoy competitive advantages in external environment.
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 Horizon 2: The second horizon helps in understanding that which areas of business
needs to extend in terms of new offering so that more customers can be added in the
organization. Therefore, it is horizon or stage that contribute in knowing that what new
or improvement can be done by the firm to retained its customers and market share
(Kearney, 2019).
 Horizon 3: It is the most crucial stages that helps firm in brining and gaining optimum
outcome through implementing the new and innovative idea. In this company explore
new future offering that it can offer to customers for satisfaction of their respective
requirements.
So, with time the firm is able to identified the changes that are happening in external
environment likewise, technology, customers taste and preference and competition. So, company
through continuously monitoring the changes, planning strategies that could be used by the firm
to cope up with the same can increasing its reputation and sustain business operation. Therefore,
organization by changing its set of action as per situation and circumstances are able to yield
maximum benefits.
2. Apply of innovation theory with historical development of products and services of OLO
OLO is New York city based company that offer platform to customers to easily place
order from any place to different restaurants for having good quality food. People can make use
of website, application, home assistance and social media platform, along with it the company
also provide order analytic and other services to restaurant’s The above discussed theories of
innovation such as BLUE OCEAN THEORY and THREE HORIZON can be applied to the
OLO. Likewise:
BLUE OCEAN THEORY: This theory can be applying in context of OLO to understand the
manner in which information or new innovative idea can be communicated to range of people
living in the society. So that they can be aware and take right decision to select products and
services of specific firm as compared to other enterprise (Kearney, 2019). Company by making
use of particular social system can able to easily make people aware about new product or
improvement that has been made by the firm that could help in satisfying their wants. The way
OLO has make use of innovation theories to promote its innovative products and services can be
stated as:
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 Look across alternative industries: OLO is business to business, company that has make
use of digital ordering and delivering program for restaurants so that qualitative food can be
offered to people at their doorsteps. Company by looking at trends or analyzing what is
happening in the external industries has plan strategy to provide customers preference to
place order from multiple points. Thus, through making use of innovative technology firm
is able to gain competitive advantages.
 Look towards the strategic group: There are less or no such companies that has make use
of such strategy of connecting with the restaurant and providing opportunity to customers to
have food products at their doorsteps. Thus, it has helped company in enjoying maximum
market share and yield maximum benefits.
 Overview buyer group: Thirdly, it can be stated that younger are group of buyers that are
interested to have products through online platform or any time, any place to satisfied their
wants. Company have put efforts to understand the wants or preference of youth people or
those that are interested to eat healthy and tasty food. So, it has contributed OLO in
planning method that could be used to attract the group of buyers to be part of the
organization.
 Complementary products and services offering: Furthermore, the OLO has put efforts on
finding whether the complementary products and services is there for the ideas that been
accepted by the OLO or not. After analysis, it has been identified that there is no such
companies or substitute that offer online services of delivering food to customers at their
doorsteps at any time and anywhere.
 Trends in external environment: In recent scenario, most of the individuals are spending
lot of their time in social media, wants faster and quick delivery of food products at their
home without going out. So, OLO by putting efforts to conduct market survey or analyzing
the external situation has planned to make use of internet, an application to provide ease to
customers to connect with the restaurant as well as the people. So, through the innovative
services provided by the company it is able to earn high profit margin and revenue and stay
competitive in external environment.
Therefore, from the blue ocean theory it can be analyse that company is able to expand
and grow its business operation through following all the above five principles of Blue ocean.
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So, it has helped in increasing sales, revenue and brand image of firm in mind and hearts of the
customers that it is an innovative firm.
THREE HORIZON
It is another innovation theory that can be used by firm to understand the manner in
which company have promoted its innovative ideas to customers so that they are ready to have
its services. OLO has make use of Three horizon level to effectively implement the innovation
and enhance its market share. Such as:
 Horizon 1: The manager of OLO has put efforts to understand what all things or
products that has been offered by the company, its core activities and incremental
innovation in order to improve the current offering. OLO by understanding that
customers want to have delivery of food products at their doorsteps within limited time is
able to bring idea to support restaurants in similar services (Saleem, 2017). Thus it has
helped in increasing company overall profitability.
 Horizon 2: In this stage, the company tried to find new services or offering that can be
provided to customers. Such as with changes in customer’s taste, it has decided to also
provide order analytics and other services to restaurants so that all work can be easily
completed. Company have lay emphasis more on customer’s satisfaction that has
motivated it to make change or improvement in products as per recent trends and enjoy
profitability (Gómez Montoya, 2018). So, through making necessary improvement or
brining new products is able to enhance customer’s satisfaction level.
 Horizon 3: OLO manager has also put emphasis on exploring the new future offering
that can be helpful for the organization to meet customer’s expectancy. Likewise,
information technology, internet and feedback from employees are various method that
has been used by firm to understand trends in external environment or analysis future.
Thus it helps company in finding what are the opportunities and threat present in future
scenario and the manner in which it can cope up with the situation (Siltaloppi, 2020). In
another words, it helps enterprise to become prepare about the future changes to grow
and sustain operation for longer time frame or may years. Thereby by looking into the
future and it is able to make necessary changes in its existing strategy and yield
maximum benefits as possible.
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3. Recommendation of possible development pathways of products and services of firm
From the above analysis, it can be stated that the OLO can make use some other
innovation theory to make changes or improvement in its existing services to make people happy
and satisfied. Likewise, the OLO out of different innovation theories can use ten type of
innovation theory to understand the manner new or innovative ideas is identified, being
promoted and implemented in the firm. This theory will help OLO in deciding 10 distinct
methods that could be used by firm to promote innovation that can be explained as follows:
1. Profit model: It is model in which company promote innovation or make improvement
in its existing services with a motivate to enjoy high profit margin (Bennink, 2020). So,
OLO through making efforts to research method or new services or ideas can effectively
increase its profitability and attained the end goals.
2. Network: Another thing that could be used by the OLO in informing more people about
new and innovative ideas is forming a good and strong network of people. So, that the
spread of information of innovative ideas can be delivered to millions of individuals out
of which maximum of them are motivated to have it services for satisfaction of their
desire.
3. Structure: It is also one of the most important elements related to implementations and
promotion of innovative ideas as OLO through making a proper structure, organisation
and integration of its resources can able to achieve the end goals. Therefore, the well
organises structure of talented individuals and all necessary assets helps in getting best
outcome.
4. Process: Furthermore, the OLO needs to take steps to improve its process and procedure
so that the new ideas can be smoothly communicated to all employees. Thereby they can
easily put their respective efforts to bring innovation within the organisation for
achievements of set objectives.
5. Product performance: Company also needs to put efforts to improve the performance
of products and services through distinguish between the features and functions. So, the
OLO needs to invest capital and time to make improvement in its services in order to
distinguish it from other competitor’s products. So that maximum individuals are ready
to select it rather than other alternative options available.
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6. Product system: Moreover, the OLO can also make use of complementary
products and services that is additional services provided with the
main so that customers are happy. Enterprise by offering two products
at single time to customers at free of cost is able to motivate more
number of individuals in the firm. Thereby product system contributes
in improving company position (Dawson and Andriopoulos, 2021).
7. Services: OLO is well known for providing online services to customers or good
relationship between the restaurant’s and people so that they can have food to fulfil their
needs. By offering complementary products it can easily influence people to be part of
firm.
8. Channel: The channel that used by company is also factor that helps in getting best
outcome from innovative idea. Such as in present scenario, firm is making use of social
media channel to inform or aware customers about the services. So it has opportunity to
make use of Omni channel or different medium to connect with customers such as email
marketing, social media and Instagram. Therefore, online channel will help OLO in
reaching range of people in limited time and cost.
9. Brand: OLO by making continuous improvement in its existing products and services
can easily build its brand image ore reputation. As it helps company in changing its
strategy, services as per existing situation thereby yielding maximum benefits as
possible. Company through putting its best efforts to improve customers experience and
satisfaction can easily create huge brand image (Gaynor, 2017). Along with it, OLO by
providing healthy working environment to employees can enhance their performance so
that they are motivated to bring innovative ideas. That can be used by the firm to expand
its business operation and attained differentiate positioning.
10. Customers experience: At last it can be suggested that the OLO to get more benefits of
innovation should emphasis more on improving the customers experience. It can be done
by providing proper training and development to individuals so that they can know about
the manner in which all task can be easily completed. Furthermore, OLO provide faster
and efficient home delivery of food to customers through partnerships with different
restaurant’s (Janjić and Rađenović, 2019). Therefore, through adding more value in
products or changes in services can easily contribute in growth and development of firm.
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CONCLUSION
From the above report there are crucial information that can be summarised such as
innovation is helpful for company in creating its strong reputation in mind and hearts of
customers. Organisation through making use of different innovation theories can learn method
or way in which it can be promoted so that firm can earn high profit margin. Furthermore, it has
been learned through above study that Three horizon innovation theory has helped manager of
OLO in taking decision related to changes or improvement needs to be made in existing product
or services. At last it can be summarized that the study has help in understanding the ten type of
innovation theory has also suggested effective method that could be used by firm to promote and
implement the new or innovative ideas for benefits of firm.
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REFERENCES
Books and Journals
Al Zaabi, J. A. and Hassan, H., 2019. Managing innovation through leadership and culture: The
mediating role of organizational commitment (Doctoral dissertation, Abu Dhabi
University College of Business).
Bennink, H., 2020. Understanding and managing responsible innovation. Philosophy of
Management, 19(3).
Biemans, W. G., 2018. Managing innovation within networks. Routledge.
Dawson, P. and Andriopoulos, C., 2021. Managing change, creativity and innovation. Sage.
Gaynor, G., 2017. Taking the lead and managing innovation. IEEE Engineering Management
Review, 45(3). pp.13-18.
Gómez Montoya, D., 2018. OI innovation: Corporate business model for managing
innovation (Doctoral dissertation, Maestría en Ingeniería).
Halemane, M., Janszen, F. and Go, F., 2017. Managing Innovation Process: A Structured,
Simulation-Based Approach. In Global Innovation and Entrepreneurship (pp. 21-42).
Palgrave Macmillan, Cham.
Janjić, I. and Rađenović, T., 2019. The importance of managing innovation in modern
enterprises. Ekonomika, 65(3). pp.45-54.
Kavadias, S. and Hutchison-Krupat, J., 2020. A framework for managing innovation. In Pushing
the Boundaries: Frontiers in Impactful OR/OM Research (pp. 202-228). INFORMS.
Kearney, M .J., 2019. Essays on managing innovation (Doctoral dissertation, Massachusetts
Institute of Technology).
Ottosson, S., 2019. Developing and Managing Innovation in a Fast Changing and Complex
World. Springer Books.
Saleem, F., 2017. Decision support framework for managing innovation portfolios.
Siltaloppi, J., 2020. Managing the innovation process.
Stoletova, M., 2019. Managing Innovation in Higher Education: Practical Examples. In ISPIM
Conference Proceedings (pp. 1-9). The International Society for Professional
Innovation Management (ISPIM).
Tidd, J. and Bessant, J. R., 2020. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
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