BST190: Innovation Management

Title: Innovation matters
Candidate name: Chuanmo Yang
ID number: C2026006
Unit code: BST190
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Table contents
1. Introduction...........................................................3
Chapter1..................................................................5
2 The components of innovation and factors that promote innovation........5
2.1 The enablers of innovation in Mushroom Company......................5
2.2 Analysis of sustainable and feasible innovation.....................6
Chapter 2.................................................................7
3 Disruptive innovation...................................................7
3.1 Evaluation of disruptive innovation on Airbnb Company...............7
3.2 Analysis of disruptive innovation on Service Now Company and Tesla. .8
Chapter 3................................................................11
4 Example of Nokia that failed to innovate...............................11
4.1 Theoretical definition of boiled frog in warm water................11
4.2 Factors leading to Nokia's failure.................................11
4.3 Recommendations for Nokia’s innovation............................12
5. Conclusion............................................................14
6. References............................................................15
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1. Introduction
Innovation refers to something new or to a change made to an existing product, idea,
or field (Brown, 2015).
Innovation is the life of an enterprise. Innovation is the driving force of business
growth, offering clients benefits they value and distinguishing brands from
contestants (Brown, 2015). Purcell (2019) held the point of view that innovation can
help companies distinguish themselves. Innovation matters for ameliorating living
levels and is defined as the exploit and commercialization of products that are new to
the marketplace and the world (Racine, 2011). Essentially speaking, innovation is
trying something differently from others who work in your space. The goal of
innovation in an organization is to exploit new products until there is no same
product. Charan (2008) held the view that innovation can shape corporate life, which
helps leaders consider some unpredicted strategic choices. Evidence illustrates that
those businesses who pursue innovation are more likely to survive longer and provide
higher returns to shareholders. Through different forms of innovation, companies can
suppress competitors, increase barriers to entry and better satisfy clients’ present and
future demands (Monterde, 2015).
Innovation is of vital importance for the development of nation and society. The
competence of innovation can facilitate countries’ global competitiveness at a macro-
economic level. About a quarter of US productivity is generated by innovation
between 2010 and 2020 according to some academic research (Monterde, 2015).
Innovation is a crucial driver in exploring environmental-friendly resolutions to the
challenges the world faces, and will benefit for the environmental protection. People
can know a variety of methods that new technologies, such as AI, virtual reality, can
make sustainable effect (Picket, 2013).
This article will evaluate the main factors that boost innovation in the first chapter,
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then it will analyze the disruptive innovation taking some companies as examples in
the second part, and finally it will evaluate the negative example of innovation failure
in the third part.
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