Managing Innovation: Report on BrewDog

Managing Innovation
Report on BrewDog

Table of Contents
INTRODUCTION...........................................................................................................................3
Innovation theories.................................................................................................................3
Application of the Three Horizon theory of Innovation in the historical development context....7
Company background.............................................................................................................7
Historical Development..........................................................................................................8
Application of the Three Horizon theory of Innovation Theory in the future development context
..........................................................................................................................................................9
Future Development...............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Innovation is defined as the procedure under which new ideas and innovative ideas are
introduced by thinking in extraordinary manner. Innovation is implemented by emphasising on
individual problems and solving them by the new innovative idea or feature. This report is made
on BrewDog which is largest company among beer sellers in Scotland. This report is based on
presentation of various innovation theories with reference to the company’s scenario. The
theories which are included on this report are disruptive theory and three horizon theory.
Disruptive theory is based on formation of new market and formation of new value added
networks. Three horizon theory is used basically in determining the value rendered by the
products and services which is having some predetermined perception in customer’s mind. If the
answer is no then company is supposed to offer some new products and offerings in the market
so as to add more business value. Both theories are greatly based on introducing new alterations
within existing product and offering innovative products in the marketplace so as to solve
problems of individuals. This report is going to cover the presentation of both the theories as in
favour of historical and future development. (Hamada, 2018)
Innovation theories
Disruptive innovation: This theory is associated with formation of a new innovative
business idea which assists to aim at new market so that to enhance customer base in the
marketplace. This is measured as no so much expensive method for that business entity which is
preparing a new innovative product to be launched in the market and wants to enhance their
customer base. The approachability level is very huge which is helpful for the businesses to
achieve high market competitive edge within the industry just by offering some new feature in
the current market. The effect of this within sectors is substantial which is advantageous for the
businesses to attract larger number of audience and to have competition with current market
competitors. With the purpose of gain huge market portion this theory can be used by BrewDog
as by offering new variety of beverages at a brand new location. With the use of this theory they
can capture new market share, new customer and new competencies in the marketplace which is
beneficial for them in expansion of their business successfully in the new market. (KRAVETS,
KOSORUKOV and UTYUSHEVA, 2017)
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Principles of Disruptive innovation theory: Some specific principles are mandatory to
be concentrated by whole the business as in the process of business development, which are
explained as under:
 Letting go the past: This principle says that each and every business organisation is
required to acquire knowledge from their past and let that go. So the persistence of
growth is required to be emphasised so as to get market sustainability. (Hossain,
2017)
 Encouraging courage: For the purpose of accomplishing business development is
very essential for all the business entity to show their courage as because the race is
won by the one who is slow and steady. For this objective the businesses are required
to examine major concepts which are given by their in house workforce and best from
the sum is chosen so as to have business growth.
 Embracing failure: As per this principle, if the business has confronted breakdown
then that it should be treated in an appropriate manner. All the previously faced
blunders should be avoided in the next project so as to get success.
 Doing opposite: This principle says that numerous activities which are required to be
executed by the organisation which may have opposite impact. These factors are
dependent on prospects and expectations which are keeping restrictions.
 Imagining the possibilities: It is important for overall businesses to examine their
opportunities for taking appropriate decisions to get future succession in the business
over the marketplace.
 Rejecting limits: This principle stats that as in the process of development of new
product or any service in the marketplace it is very essential for the businesses to
expand their limits and break their limitations. This is helpful in development of
business in order to have future growth. (Larsson and Larsson, 2017)
Process of disruptive innovation theory: With the purpose to apply this innovation
theory in the business, these steps are required to be followed:
 Identifying key markets: This is the foremost stage of disruptive innovation is
businesses are supposed to examine their major marketplaces where new innovative
product is going to be unleashed. After this the best market will be designated as on the
origin of having maximum obtainability
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