Managing Innovation in Business

This report explores the concept of managing innovation in business, focusing on Revolut Ltd. It discusses the market analysis of the firm, their innovation history, existing performance and capabilities. The report highlights the significance of innovation in a competitive marketplace and the research and development carried out by the firm. It also examines the innovation brought by Revolut Ltd and its impact on achieving organizational goals.

Managing Innovation in Business
CW1

Executive Summary
Managing innovation implies aggregation of management of innovation processes along
with change management. It denotes marketing, business processes and products which are
brought in by organisation as a result of innovation. Managing innovation acts as liability of each
firm for sustaining within market for longer time duration. This report is based on Revolut Ltd
for managing innovation. This study is carried out for explaining market analysis of the firm for
carrying out innovation audit for presentation of creativity which ahs been brought by them. The
history of firm, their existent performance and capabilities are also evaluated for having an in-
depth knowledge about offerings of organisation. The rationale of this report is to determine
significance of innovation within competitive marketplace. In addition to this, report also
provides details about innovation capabilities in terms of research and development that is being
carried out by firm for enhancing experience of their customers along with brand awareness
within marketplace.
This has been identified that effectual innovation capabilities aids within enhancement of
market shares along with revenue of Revolut Ltd. This report involves innovations which are
brought in by organization as well as ways in which they are being maintained by them to have
competitive positioning in market. Revolut Ltd provides their customers with different currencies
for making exchanges as per their requirements. This innovation idea as well as capability assists
within accomplishment of objectives of organization. It provides enhanced experience to their
customers which enables firm to attain their goals and objectives.

Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Purpose of the report & its structure......................................................................................................4
Organization and their innovation History..............................................................................................4
Organizations existing innovation Performance and capabilities............................................................6
Industry in 2019.......................................................................................................................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

Introduction
The imperative activities which are being conducted by businesses for attaining enhanced
results is referred to as managing innovation in business. It is a methodological process that is
liable for generating value for organization (Biemans, 2018). To understand concept of managing
innovation within business Revolut Ltd is taken into account which is a British financial
technology which is liable for rendering banking services that involves EUR and GBP bank
accounts along with many other facilities.
Purpose of the report & its structure
The rationale of this report is to examine innovation history of Revolut Ltd by carrying out
innovation audit. This will aid to formulate effectual learning outcomes as well as goals by
reinvesting efficacious amount of study for making tasks presentable as well as innovative.
Revolut Ltd has collaborated with Visa for giving their customers with enhanced payment
experiences.
This report involves overview of Revolut Ltd and facts about them with respect to their
history which will illustrate by making use of 4P. Apart from this, it also contains innovations
which are brought in by them along with capabilities of firm for achieving desired organizational
goals. It also comprises innovation which is made by them for acquiring adequate profits.
Organization and their innovation History
Revolut Ltd deals within FinTech industry which was founded on July 1st, 2015 and is
headquartered in England, UK. They offers banking services to their customers which comprises
of Visa debit card or MasterCard, stock trading, peer to peer payments, fee-free currency and
crypto currency exchange (Revolut Ltd, 2020). They have their own application that is liable for
supporting spending as well as withdrawals which are made by making use of ATM within 120
and direct transactions can be made in 29 currencies. Furthermore, access is provided to
customers for crypto currencies like Ethereum, Bitcoin Cash, XRP and Bitcoin by making an
exchange to or from 25 different flat currencies. To understand the innovation history of Revolut
Ltd, 4P model can be utilized which will provide in-depth insight with respect to operations of
organization.

The four P’s of marketing denotes key factors which are involved within marketing of
peculiar services or goods (Nardelli and Broumels, 2018). They are constrained through external
or internal factors within entire business environment and also communicate with one other in
significant manner. With respect to Revolut Ltd, these four elements or entities are mentioned
beneath:
Product: Revolut Ltd provides their customers with wide range of services as a part of
their marketing mix product strategies. They involves: insurance, current accounts, debit cards,
remittance and peer to peer lending. The USP of products and services that are being rendered by
Revolut Ltd is acknowledging requirements of their customer and identifying the innovative
ways through which they can be accomplished (Prokop and Stejskal, 2017). Services given by
them include making payments and currency exchange that is available by making use of
application as well as it can be done in distinct currencies.
Price: The Revolut Ltd is one of their kinds which is liable for rendering specialized as
well as unique products and services to their customers. Pricing strategy is value based pricing as
Revolut Ltd believes that value is crucial driving force for which customers are willing to pay as
per benefits which are being furnished to them. Depending upon services which are being
delivered by firm prices vary from low to high.
Place: Revolut Ltd is headquartered in London, England, United Kingdom and they
deliver their services around UK. They have their own application, basically a platform through
which people can carry out their transactions as per their requirements irrespective of currency in
which payment is made. It provides an easy method for carrying out their activities by having an
ease.
Promotion: The promotional strategy which is being utilized by Revolut Ltd emphasize
on comprehensive marketing plan which will lead them to reach to maximum of individuals.
They make use of word of mouth campaigns, posters, brochures, and advertisements on their
website, newspapers and billboards (Ritzén, 2019)
.

The certain strategies with respect to Revolut Ltd are illustrated above which are being
utilized by them in an affirmative manner and at present they have around 10 million users who
make use of services furnished by them.
Organizations existing innovation Performance and capabilities
Revolut Ltd has recently launched commission-free NASDAQ and New York Stock
Exchange stocks which are trading in their app for consumers within their metal plan. The
advantage of this is rendering their customers with enhanced speed for accomplishment of their
activities within a relevant way (Antikainen and Valkokari, 2016). This enables them to provide
impelling experience to their consumers. Revolut Ltd furnishes leading as well as creativity
within their productive action plan.
Existing Innovation
Revolut Ltd have opted for making use of systematic approach for bringing in innovation
that aids within exploring as well as managing growth of business. The creativity which is
brought in by firm involves banking services that involves EUR as well as GBP bank accounts,
fee-free currency exchange, cryptocurreny exchange, VISA debit card, peer to peer payments
and MasterCard (Archibald and Archibald, 2016). Furthermore, Revolut Ltd has provided their
customers with an online mobile application that is liable for supporting ATM withdrawals as
well as spending is done through different 120 currencies as well as they can be transferred
directly from application within 29 currencies. This furnishes access to customers towards
cryptocurrencies like Ethereum, XRP, Bitcoin Cash (BCH), Litecoin as well as Bitcoin by
carrying out exchange from and to 25 flat currencies.
Customers agree that Revolut Ltd is leading as well as creative firm that aids individuals
for making new experiences as per new services and products. This aids them to develop
management of their effectual growth as well as carrying out their operations in a systematic
way. Revolut Ltd opts for bringing in innovation as these aids within getting success in market
for longer time duration. This leads them to sustain and accomplish requirements of their
customers (Ferreira and et.al., 2015). For this, they have developed new managing goals as well
as objectives and in accordance to this they have to develop effectual strategies.

Revolut Ltd is an innovative firm which renders there services in different currencies that
leads to creation of competitive market as well as attain outcomes which will impact firm by
formulating long lasting impact. They posses more enhanced goals along with relevant strategies
through which they manage their performance. Revolut Ltd is authorized for accepting deposits
as well as provide their customers with credits. They furnishes impelling investment services and
for this they have also attained license from Electronic Money Institution (Forsgren, Holm and
Johanson, 2015). They aims at building up enhanced innovative solutions through which easy
transactions can be made by them as per their needs.
Revolut Ltd is technologically sound which makes them to understand what is required
by customers and how it can be delivered accordingly they have developed their application. In
addition to this, they adhere to different legal formalities and laws which are related with online
transactions for staying away from any kind of legal hindrance within their activities. This leads
them to have loyal customer base as they can have the services when they are required without
any discrepancies. It provides them with enhanced capabilities that aid them to have stability
within evolving market for longer time duration within market They have managed challenges
by building effectual barriers for safeguarding their position within market. But they have to
bring in continuous innovations within services. Through rapid innovation within new products,
Revolut Ltd brings in innovation within their services which leads them to captivate more
individuals.
The innovation have been illustrated above which are brought in by Revolut Ltd but for
attaining them, firm makes huge investment in research and development activities. This enables
them within designing of their innovative services and capabilities that will lead to furnish their
customers with unique experience, thereby leads to have impelling profits along with market
shares within FinTech industry (Frow and et. al, 2015). They have opted for innovative
technologies through which they are able to have competitive vantage in comparison to their
rivals. Apart from this, Revolut Ltd needs to ensure that they have implemented intellectual
property rights with respect to innovation brought in by them within the market place. This is an
important aspect through which their competitors like Monzo bank, WeSwap and Green Dot
cannot copy their products. Basically, they will protect the assets of firm from any kind of illegal
practices and will ensure that this peculiar products or service belongs to respective firm.

Industry in 2019
Revolut Ltd is a financial technology firm which renders various features to their customers via
mobile app. This leads to creation of long lasting impact of productive services which leads them
to sustain within market (Schmiedel and vom Brocke, 2015). The firm renders their services in
high competitive market which makes it necessary to analyse different aspects related with
marketplace for being strong player. Porter’s five forces provides an holistic framework through
which firm can look into strategic decisions by which they can have competitive edge as well as
explore profitability prospects. Revolut Ltd can make use of Porter’s five force analysis this is
illustrated below:
 Threats of new entrants: New entrants within FinTech will bring in new ways through
which things can be carried out as well as innovation will be brought in. The overall
threat of new entrants to Revolut Ltd is low. For this, emphasis is laid by Revolut Ltd on
opting for low pricing strategies, minimisation of costs along with furnishing their
customers with new value propositions (Schoemaker, 2015).
 Bargaining power of suppliers: They possess prevailing position within market which
will lead to decline within margins earned by Revolut Ltd. Strong suppliers makes use of
their negotiation power for extracting high prices from FinTech industry. There is
minimum impact of this factor on Revolut Ltd as they furnish there services by making
use of mobile app. Along with this, there are various suppliers who delivers credit cards
or other services to their customers (Van Lancker, Wauters and Van Huylenbroeck,
2016).
 Bargaining power of buyers: This factor depends on two factor i.e. price sensitivity as
well as control over firms. The impact of this entity is low as individuals as it involves
high switching cost. Revolut Ltd have high loyalty from their customer base that enables
them within maintaining higher revenues along with market shares within United
Kingdom.
 Threats of substitute: When new services or products meets identical requirement within
distinct ways then it will lead to minimisation of profitability of firm (Vrontis and Rossi,
2016). For an example Green Dot, WeSwap, Monzo and TransferWise also provides
same services as furnished by Revolut Ltd. This implies that there is high threat which is

being experienced by organisation. For this, it is important for them to acknowledge
needs of their customers and accordingly render services to them.
 Rivalry among existent competitors: This implies the existent competition which
prevails within market if intense rivalry prevails then profitability of industry will be
declined (Winterhalter, Zeschky and Gassmann, 2016). Impact of this factor on Revolut
Ltd is high as there are many strong players like TransferWise, Monzo, Green Dot and
WeSwap within the market. For this it is crucial that firm should develop sustainable
differentiation and develop a large scale by which they can compete in an effectual
manner.
Porter’s five force model provides Revolut Ltd with an option to explore different aspects
associated with the market and formulate strategies accordingly. This will lead firm to have
enhanced profitability and captivate more number of individuals towards their services.
Conclusion
From above it can be concluded that, it is important for firms to bring in innovations within
market but along with this they have to be managed in an effectual way. This will lead to ensure
their sustainability within marketplace for longer duration of time. 4Ps has been used to identify
the existing services that are provided by them and their existent innovation performance as well
as capabilities has been evaluated. This is done to identify possibilities for growth and being
sustainable in market. Porter’s five forces model is used for analyzing the market which will aid
firm to formulate strategies accordingly.

References
Books & Journals
Antikainen, M. and Valkokari, K., 2016. A framework for sustainable circular business model
innovation. Technology Innovation Management Review. 6(7).
Archibald, R. D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Ferreira, J. J., and et.al., 2015. Drivers of innovation strategies: testing the Tidd and Bessant
(2009) model. Journal of Business Research. 68(7). pp.1395-1403.
Forsgren, M., Holm, U. and Johanson, J., 2015. Knowledge, Networks and Power—The Uppsala
School of International Business. In Knowledge, networks and power (pp. 3-38).
Palgrave Macmillan, London.
Nardelli, G. and Broumels, M., 2018. Managing innovation processes through value co-creation:
A process case from business-to-business service practise. International Journal of
Innovation Management. 22(03). p.1850030.
Prokop, V. and Stejskal, J., 2017. Different approaches to managing innovation activities: An
analysis of strong, moderate, and modest innovators. Engineering Economics. 28(1).
pp.47-55.
Ritzén, S., 2019. Managing Innovation for Circular Industrial Systems. In Sustainable Business
Models (pp. 181-209). Palgrave Macmillan, Cham.
Schoemaker, P. J., 2015. Strategic approaches to managing uncertainty. Decision Strategies &
Wharton, 19.
Van Lancker, J., Wauters, E. and Van Huylenbroeck, G., 2016. Managing innovation in the
bioeconomy: An open innovation perspective. Biomass and Bioenergy. 90. pp.60-69.
Vrontis, D. and Rossi, M. eds., 2016. Managing Globalization: New Business Models, Strategies
and Innovation. Cambridge Scholars Publishing.
Winterhalter, S., Zeschky, M. B. and Gassmann, O., 2016. Managing dual business models in
emerging markets: An ambidexterity perspective. R&D Management. 46(3). pp.464-479.
Online
Revolut Ltd. 2020. [Online]. Available through :< https://thebanks.eu/emis/revolut-354834>.