Managing Innovation: Report on Brewdog

Managing Innovation
Report on Brewdog

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Innovation theories......................................................................................................................2
Application of the Three Horizon theory of Innovation in the historical development context....6
Company background.................................................................................................................6
Historical Development..............................................................................................................6
Application of the Three Horizon theory of Innovation Theory in the future development context
..........................................................................................................................................................7
Future Development....................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation can be defined as the process of formulating new and creative idea by using
imaginations. It is mainly focused with finding solutions for the issues which are currently faced
by individuals (Acemoglu and et.al., 2014). This report is mainly based upon BrewDog which is
one of the largest beer companies of Scotland. This assignment is focused with application of
different innovation theories. These are disruptive innovation and three horizons. First one is
focused with the creation of new market and value network. Second theory is mainly used to
determine that the products and services which are offered by the organisation are able to deliver
the predetermined value or not. If not, then new offerings are designed with new values of the
business. Both of them are highly focused with making modifications in the existing products
and introducing innovative items in the market for the use of individuals. This assignment will
cover the application of the theories in the context of historical and future development context.
MAIN BODY
Innovation theories
Disruptive innovation: This theory is related to the creation of a new business idea which
can help to target a new market so that number of customers could be increased. It is considered
as the less expensive option for the companies that are planning to introduce a new and
innovative product in the market and enhancing the market share. The level of accessibility of it
is very high which help the enterprises to attain competitive advantage in the industry by
launching something new in their existing marketplace. The impact of it on the sector is
significant which is beneficial for the organisation to attract large number of clients and compete
with existing rivalries. In order to capture large market share this theory could be applied by
BrewDog by introducing an innovative beverage in a new location (Biemans, 2018). By using it
the entity will be able to target new clients and expand business successfully.
Principles of Disruptive innovation theory: Some of the key principles which are
required to be focused by all the organisations while implementing it for business growth are as
follows:
 Letting go the past: This principle states that every organisation should learn from the
past and let it go. It is required to be focused for the purpose of attaining growth in future.
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 Encouraging courage: In order to attain growth it is very important for all the
organisations to have courage because slow and steady wins the race. For this purpose
companies should analyse key ideas provided by employees so that best one from then
could be selected for attaining growth (Chen and et.al., 2016).
 Embracing failure: According to this principle, if an organisation have faced any failure
then it should deal with it properly. All the mistakes which were made previously should
be ignored to attain success.
 Doing opposite: This principle states that there are various activities which should be
performed by organisations oppositely. These are dependence upon expectations, keeping
the boundaries etc.
 Imagining the possibilities: It is essential for all the companies to analyse possibilities
of growth and then formulate a decision for future so that business could be developed
(Principles of disruptive innovation, 2020).
 Rejecting limits: This principle of innovation states that while planning to introduce a
new product or service in the market it is very important for the organisations to go
beyond the limits. It will help to attain growth and develop business.
Process of disruptive innovation theory: In order to apply it within the business the
organisations will be required to follow following steps:
 Identifying key markets: It is the first stage of process of disruptive innovation in which
the organisations are required to analyse the key markets where innovative products
could be launched. Afterwards, one of them will be selected on the basis of availability of
growth opportunity.
 Selecting market segment: When a specific market for introducing an innovative
product is selected then the management of the company is required to choose a target
segment. It could be geographic, behavioural, psycho-graphic etc.
 Deciding the new innovation: After deciding the market segment for which the
innovation will be made then one of the key idea of innovative product is selected from
all the suggestions which are provided by staff. At this stage, different ideas are evaluated
and then one is selected to introduce.
 Introducing new product in the market: It is the last stage where decisions for
introducing innovative products are taken.
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