Managing Innovation Report

Managing innovation report
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Table of Contents
INTRODUCTION...........................................................................................................................3
INNOVATION THEORY...............................................................................................................3
APPLICATION OF BLUE OCEAN THEORY IN HISTORICAL DEVELOPMENT.................6
APPLICAION OF BLUE OCEAN THOERY IN FUTURE DEVELOPMENT............................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Every business requires do implement innovation in it so that they are able to grow and
develop. Innovation brings in vast number of opportunities for firm to expand in the market.
Also, it helps in competing with other companies to sustain in market for long term. Innovation
can occur in several areas such as operations, product, etc. this leads to create a positive culture
as well. However, in such a competitive environment it is necessary for organisation to innovate
new products and services. This enables them to attract new customers and expand at global
level. Innovation brings in creativity and it improves efficiency of organisation as well. Besides,
new product development helps in fulfilling demand of people. There are various theories of
innovation that is applied. It depends on nature and type of innovation which is going to be
made within firm. Also, each theory focus on various aspect of innovation and procedure
introduced. Generally, blue ocean theory is used that create differentiation in products and
generate demand of that product in the market.
In this report it will be described about innovation theory of blue ocean. Also, it will be
discussed about how theory is applied in historical and future development of Dyson.
INNOVATION THEORY
Overview of Blue ocean innovation strategy
Innovation is a kind of a new idea, new imagination which is used for development of new
product, device or method. There are various kinds of innovation theories that can adopted by
organizations for bringing improvement within their working process. Blue ocean strategy is also
one of those strategies that can be used by organization for exploring wide, deeper and potential
market space that still has not been explored yet (Agnihotri, 2016). This theory helps the
organizations in capturing new and unmet demands of their customers which not only helps
organizations sustaining within the market, gaining competitive advantage but also helps them in
attracting more of customers. It is one of the most common and well- known theory that has
helped various firms’ development of products or services for customers by meeting their unmet
needs and requirements and develop their own market space. Using this theory various
organizations like Dyson has opened and new market space and created new demands within
their customers by exploring market opportunities that were not explored yet and also helps the
organizations in making current competition irrelevant. It can also be said that this theory creates
a new uncontested market space that has not been explored yet. Organizations can use this
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innovation theory to create their own market space and provide high quality products that can
fulfil needs and requirements of their customers in a much better and appropriate manner.
Usage of this theory can not only help in exploring unexplored requirements of customers
but can also help in creating a much larger market scope for the organizations and sustain within
the market as well as develop a brand name (Vieira and Ferreira, 2018). There are very a smaller
number of organizations that uses Blue ocean strategy for growth and development of their
organization. Dyson is one of those organizations that uses Blue ocean strategy and developed a
vacuum cleaner that didn’t require vacuum bags. It was an unexplored market need that was
explored by Dyson which further helped them in developing a new market segment which
further helped them in growth and development of the organization.
Principles and process of Blue Ocean Innovation Theory
There are four basic principles that helps in forming for Blue ocean strategy that have
been explained below:
 First is to create uncontested market space created by reconstructing market boundaries. First
of all, organizations should study things that are done by current market and on the basis of
this, organizations should develop their own strategy which is completely different from rest
of the market. This can be done by focusing upon characteristics of products that can be
eliminated and characteristics of product upon which focus can be increased that are not
being focused upon (Priilaid, Ballantyne and Packer, 2020). For doing this it is extremely
important for organization to gain understanding of needs and requirements of the customers
so that organization can focus upon characteristics that are required to be focused upon and
fulfilled in order to create a uncontested market space. In order to protect the organization
from any kind of serious marketing issues, the strategies should be implemented effectively
so as to lower down the competitive environment structure.
 Second principle is to focus upon bigger picture. Many organizations focus upon collection
and analysis of large amount of data due to which actual strategy that should be focused upon
is lost. Instead of this, organizations should focus upon actual needs and wants of their
customers, understand current market offering and things or features that are not offered by
the market currently. This will help the firm to get an idea that will further lead them towards
development of blue ocean strategy. So, it can be said that instead of focusing upon numbers
it is important to focus upon successful strategy development.
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