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Managing Innovation Assignment - AirBnb company

   

Added on  2020-11-12

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Managing innovation

Table of ContentsINTRODUCTION...........................................................................................................................1Innovation Theories................................................................................................................1Diffusion Of Innovation (DOI) Theory..................................................................................2Disruptive Innovation Theory................................................................................................5Innovation history of company...............................................................................................5Historical Development of Products and Services.................................................................6Future Development of Products and Services......................................................................7Application of theories...........................................................................................................7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10

INTRODUCTION The term Innovation is known as process of transforming idea into the form of productor service which creates value at which consumer is willing to pay. This process is concernedwith various multiple activities that contributes towards finding new ways for carrying out newthings. Innovation is essential for every organisation as it assist in maximising return oninvestment, increasing profitability ratio and ability to deal with external challenges effectively.Whereas, diffusion in innovation is concerned with the hypothesis which outlines different waysby which culture of innovation will spread throughout the organisation and society concernedwith introduction till wide acceptance. This report is based on AirBnb which was founded in SanFrancisco, California around 10 years ago by Joe Gebbia, Nathan Blecharczyk and BrianChesky. This company is online marketplace which connects people who wish to rent theirhouses with individuals finding for accommodations in that local area which operates in aroundmore than 81,000 cities and 191 countries in all over the world. This present report is conductedto provide depth knowledge about innovation which can be adopted by AirBnb for its productionenhancement and future development at the marketplace. Also, this report shows detailedanalysis of innovation theory by determination of various theories which will further assistcompany for bringing innovation within the business operations. Lastly, this report comprises ofevaluation of historical developments made by the company for identification of futuredevelopment pathway for products and services offered (Helper and Henderson, 2014).Innovation TheoriesInnovation is most essential concern of all organisation and its function at the market istransferable. This determines the degree to which organisation participates itself towardsformation of unique product or making alterations to the existing processes. Innovation inorganisation can be carried out in terms of new product or process development, methods of taskmanagement, different ways of carrying out work activities and many more. This element strivesto give important place to the business organisation at the marketplace. Innovation grabs theattraction of its customers for innovative and unique offerings of business concern and helps forsustainable growth and survival of organisation. Also, innovation provides maximumgratification to its consumers by providing products as per their expectations, needs, desires,wants and necessities at the market (Noble, 2017).1

The research and development department determines the need for organisation to bringinnovative techniques and processes with continuous study of current trends and method whichare prevalent in the market. Further company undertakes various steps to implement advancedtechnologies and processes in the premises for retaining customers for longer time period andgain recognition in market. In this regard, different kinds of theories can be utilised and executedby business organisation, some of them are described below:-Diffusion Of Innovation (DOI) TheoryThis theory was propounded by E.M Rogers in the year 1962 and forms part of ancienttheories of social science. This is basically utilised for procedure of communication and findvarious ways by which innovative idea or process is transmitted by adopting different channels.Their are number of ways by which information can be communicated which ranges from socialcommunication channel to mass media. Diffusion theory of innovation helps in determination ofvarious prospects which impact the innovation rate being adapted by individuals. It investigatesthe way in which innovation is accepted by the consumers and then it is diffused between thespecified population. The finish result of this theory is espousal of innovative idea or process.The most critical prospect of such adoption is that personnel must be able to comprehend thenew or altered idea, goods or technology (Goolsbee and Krueger, 2015).According to this theory, adaptation of innovative idea, product, technique or service arenot implemented on the spontaneous basis as this procedure requires the proper time period.Here, some individuals accept the innovation at right time while remaining other accepts it later.Their is vast difference between the individuals accepting innovation at right moment of timerather than who adopts innovation at the slower pace. To determine the probable chances ofapplication of innovation while promotion of innovative practices and processes between theaudiences as emphasis it upon the behavioural features of individuals in the specified population.As per this theory, it consists of five adopter strategies where number of individuals consists ofmiddle categories, as it is important to increase viewpoints for the attributes of target market.Various schemes are utilized by businesses for application of several adopter categories(Dodgson, 2018).According to this theory, adopters are known as “individuals, corporations, groups, orbigger universe prevalent in the society which is classified according to cognition for selectinginnovation.” Therefore, the brief description of mentioned strategies is given below:- 2

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