Managing Innovations

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Managing Innovations
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Managing Innovations 1
Table of Contents
Introduction......................................................................................................................................1
Theories of innovation.....................................................................................................................1
Principles of Disruptive Innovation.............................................................................................2
Background of Monzo Bank Ltd.....................................................................................................6
Innovation role in Monzo................................................................................................................7
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

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Introduction
Innovations are beneficial for social, commercial, and economic point of view for an
organization. Organizations are based on the innovations and marketing strategies. Many things
are affecting organization processes, which are business strategies and innovations. Most of the
organizations are having their personal innovation centre or research and development
department for innovation in their fields to better growth of organization. This report will
provide details about innovative innovation with their theories and principles. It is a way to
handle competitive challenges of industries. In this report, disruptive innovation will discusses in
next parts. It will provide strength and weakness of the disruptive innovation theory.
This report is based on the Monzo bank Ltd. It is a bank, which provides advance facilities with
technical specifications. This report will provide details about the disruptive innovation theory in
Monzo Bank Ltd. Monzo are a group that is having highly technical company, which was
founded in 2015 (MONZO, 2019). It is having a new concept in the field of banking industry.
This report will provide details about the company as well as role of disruptive innovation theory
for their success. Monzo is a new app-based bank in UK. It is a digital mobile-only bank
(BorneDigital, 2018).
Monzo introduced new concept for managing spending and banking through a mobile-based
application. This is a disruptor for baking industry. Disruptive innovation provides high profit to
the company. In the next section of this report, disruptive innovation theory will linked with the
Monzo Bank Ltd (Caldwell & Verl , 2017).
Theories of innovation
Innovation is a fresh idea for solving a problem or reducing efforts for a work. Innovative ideas
are helpful for the changing the game of market. Innovations have divided in four types, which
are architectural, radical, Incremental and disruptive innovation. All those are categories based
on the market and technology. It is depend on the new and existing market as well as new and
existing technology (Pinkse, et al., 2014). Many technologies are presented in the world but they
are not used in business. Some technologies are having increments in their functionalities. Few

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innovations are having game changing capability. They change the current market and
innovative a new environment, such as touch screen technology in mobile phone ( Geiger, 2018).
Source: ( Lopez, 2015)
Disruptive innovations are those innovations that are created in existing market with new
technology, such as Apple iPhone. Disruptive innovation term is first time framed through Clay
Christensen. According to Clay Christensen, it is states that reinventions has created threatened
to the established companies. Disruptive innovation is start with the small profit but it will
provide high profit in short time.
Disruptive innovation is a way to create new concepts for a business processes. Innovation is
having a huge role for revenue, profit, and growth of an organization. Disruptive innovation is
creating a new market of existing market through the technological changes (Nelson, 2013).
Principles of Disruptive Innovation
In business, successes is getting through many things, one of them is disruptive innovation.
Organization can change their existing market through disruptive innovations. There are some
principles of the disruptive innovation that are based on different things. Past is a great teacher,
therefore, innovators are always thinking large beside their past. They have different objective
for imagination (Morris, et al., 2010). Organizations are always motivating their employees for
reinventions in current technologies for better growth in existing market. Manager should
embrace failure of their employees, as success is not an easy task. Therefore, they make