Managing Innovation: Theory, Application, and Evaluation

Managing Innovation

Table of Contents
INTRODUCTION...........................................................................................................................3
2. THEORY.....................................................................................................................................3
2.1 Definition of theory...............................................................................................................3
2.2 Evaluation of theory..............................................................................................................4
3. APPLICATION OF THE THEORY...........................................................................................6
3.1 Company Background...........................................................................................................6
3.2 Application in historical development..................................................................................7
3.3 Application in future development........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Managing innovation is referred to as the combination of various innovation processes
and also results as change in the management (Agnihotri, 2016). Innovation management in the
field of organizational innovation, business processes, marketing, product, etc. Managing
innovation helps in encouraging and supporting innovation which results in incremental
improvement associated with existing product. Managing innovation is considered to be a
systematic process which helps in generating, evaluating, prioritizing and validating the idea by
effectively putting them into the practice. Innovation has become the new imperative of the
management (Aithal and Kumar, 2015). The key three pillars associated with the innovation are
competency, management and strategy. This leads to higher operational growth and also helps in
realizing the various benefits which leads to higher sustainable growth. Innovation tends to focus
on creating increasing likelihood of the business getting succeeded. This helps in motivating the
team and also helps in creating the value to the product. This helps in realizing commercial
benefit and leads to better productivity. Innovation of new idea within the organization context
helps in effectively carrying several business activities. This study will highlight on principals,
processes advantages and limitation of the Blue ocean strategy. Blue ocean strategy is an
effective pursuit to create new demand by opening a new market space. Furthermore, this study
will highlight on the application of the historical development and future development of this
theory.
2. THEORY
2.1 Definition of theory
Illustration 1: Blue ocean strategy.
2019.

Blue ocean strategy refers to the extension of the market where competition is less or there
is no competition. In current time period competition is very high and due to this reason firms
focus on either low cost or product differentiation. Problem become more worst when market is
saturated in nature and firms have to serve same sort of product to the target audience. Under this
strategy company believed that there is not border of industry and company within which it must
operate (Definition of Blue Ocean strategy., 2019). Firm break boundaries and develop products
that meet unsatisfied needs of the people. Apart from this, many times business firm also create
needs for the people and satisfy it and by doing so capture market share in the industry. Blue
ocean industry can be applied in any industry and company. Blue ocean strategy is completely
different from red ocean strategy. In the saturated market where there is less space firm try to
identify a new market and it is known as Blue Ocean. Main aim of this strategy is to create
demand and to make competition irrelevant by producing and making available product of
superior quality. One of the best example is Apple that follow Blue Ocean strategy in proper
manner. Apple commence digital music service in 2003 where online user can search music and
download its original version by paying price (Mi, 2015). iTunes app was developed by Apple
from where one can download music. This make traditional sources of distribution irrelevant.
Earlier CD/DVD was used to view movies and listen songs but now due to advent of iTunes
demand of CD/DVD comes to end. Hence, it can be said that Apple within same industry create
a new market and make competition irrelevant. This is one of the classic examples of Blue
Ocean strategy.
2.2 Evaluation of theory
In order to evaluate theory its positive and negative sides need to be taken into account. In
order to identify positive points of theory case of Cirque du Soleil is taken into account. Circus in
the year 1980 was dominated by the Ringling Bros and Barnum & Bailey. Both these circus
operators demonstrate ring circus, clowns and animal acts. Children were there primary target
customers. In other words, it can be said that focus was only on Children’s. Cost of circus was
very high as they need to carry animals from one place to another which was very costly. At that
time TV and Video games also comes in the market and children were more attracting towards
such kind of things. Hence, Circus operators earn less revenue and less profit in the business. In
such situation Cirque du Soleil combine circus with the adult theatre and show things differently.
They stop use of animals in circus as at that time many videos were circulating and social