Innovation Theory and Deliveroo: A Comprehensive Business Report

This report provides a detailed analysis of Deliveroo's innovation strategies, focusing on the application of innovation theory, particularly the Diffusion of Innovation Theory. It explores the historical development of Deliveroo as an online food delivery service, highlighting its use of advanced technology and environmental awareness to gain a competitive edge. The report examines the different categories of adopters in the context of Deliveroo's market approach, discussing the advantages and disadvantages of the Diffusion of Innovation Theory. Furthermore, it uses the Business Model Canvas to assess Deliveroo's key elements, including financial performance, infrastructure, and customer relationships. Finally, the report considers potential pathways for future development, focusing on how Deliveroo can maintain its success in the competitive food delivery market.

Managing Innovation
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Table of Content
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Describe about Innovation theory................................................................................................3
Historical development of product or services............................................................................8
Pathways of future development.................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Innovation is understood as the process of managing and organising the business in a
different and creative manner which provide better solution to their clients (Alexander and Joe,
2019). In relation to this, it is an art of producing things in a different aspect which gain the
attention of consumers across the worldwide. This report is based on Deliveroo which is most
popular company in UK which is incorporated in London. It is online food delivery company
which provide fast services to their clients in order to generate more satisfaction in different parts
of the country. This report comprises of theories of innovation and historical development of
product or services. At last, this report covers pathways of future development so as to gain more
success.
MAIN BODY
Describe about Innovation theory
The most popular theory of innovation theory is Diffusion of Innovation which is
propounded by E.M. Rogers in the year 1962 (Diffusion of Innovation Theory. 2019). This
describes about the idea which is spread over different group of an individuals. Adoption of new
idea is not done at a particular time period but require a sequence of steps to be followed in an
organisation as they emphasise on generating new and creative ideas in a changing era. This
assist the company to make plans and follow modern practices by using new and advanced
sophisticated technology plus meeting the criteria of customers. While promoting and new
merchandise or service, it is essential to determine the target population that would either foster
or hinder innovation. Innovation must be provided in order to gain sustainability in a long run
and tus aids in achieving rivalry edge over a market place. Different types of innovators such as
innovators, early adopters and majority, late majority and laggards as they have different ways of
thinking that is subject to innovation and thus renders a high degree of idea (Biemans, 2018).
When a firm has to launch a particular product in a marketplace, it has to consider several
characteristics into consideration of buyers. The categories of adopters are elucidated below:
Innovators: These are those who emphasise on trying the innovation for the very first
time as they bring advanced ideas and help in taking best decision of a firm. They are also
termed as pioneers of the new idea as they are venturesome in nature. These types of people are
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ready to take risk and like to accept new challenges in day to day operations in a corporate
world. They ae so curious who always try to find out and like to explore new things. They tend
to implement a high-class lifestyle and are extroverts as well as are well educated.
Early Adopters: These are regarded as opinion leaders who tends to enjoy the roles of
leadership and embrace giant changes in a workplace. They possess certain leadership traits who
render proper guidance and are aware of changes takes place which help in achieving task within
short span of time (Chen, Jiao and Zhao, 2016). They are thoughtful in nature who thinks twice
before making any buying decision and also, they are highly educated who possess strong
financial performance. They also represent a high-status symbol in their society or community.
Early Majority: The kinds of people fall in this category are rare leaders who are cautious
while purchasing any goods or services from marketplace. They take time to make decision as
they consider feedback of customers and are not easily influenced by new products or services.
The marketer provides several success stories among the targeted audience so as to determine the
effectiveness of an innovation. In this early majority, people have excellent level of education
status, purchasing power and they belong from middle class families as it ensures more success
by gaining maximum customer satisfaction which is possible through mass advertising and
attractive packaging and so on.
Late majority: Unlike the three above phases, this involve majority of population who are
adhere to make best purchasing decisions as the product is tried by majority of population. They
are traditional in nature who doe not make purchasing easily and are strictly adhere to rules and
regulations (Jalles, 2016). They are also reluctant for making changes and are considered as
modern level of education and employment and medium income class. The only reason for
accepting the new product is possible when significant proportion of population would support
new innovation and thus generates greater satisfaction level.
Laggards: This is the last category of adopter in which consumer finally adopt the
innovation. They tend to be very conservative in nature who tends to skip changes and are not
ready to accept modification in a business enterprise. As the name suggest, they lag behind in
accepting the new innovation as well as products and also, they are governed by rituals and
norms. It is very tough to bring them on board and persuading them to adopt new techniques of
innovation. The personality traits involve fear appeals, emotional stability and lack of quick
decision making would lag them behind and tends to avoid competition in a marketplace. They
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are less educated who lacks modern thinking and are nor ready to accept challenging task and
positions. This hamper the growth and minimise the overall productivity within a marketplace
(Kerzner, 2019)
McPhee, C., 2016). Marketer spend less amount in promotional activities due to the reason that
brand value is diminishing with each passing stage.
The consumer would emphasise on adopting the modern innovation process which
consider sequence of steps such as awareness, persuasion, decision, implementation and
continuation.
Awareness: In this, consumers tend to obtain more and more information regarding the
product though interaction with salesman and its respective websites.
Persuasion: There is emphasise on strong advertising campaigns which possess greater
awareness of merchandise among their customers.
Decision: In this, consumer tends to make decision whether to accept the innovation by
comparing its pros and cons.
Implementation: The consumers are ready to implement the decision and determine the
effectiveness of goods or services in a marketplace.
Continuation: This involve the decision of consumer whether to continue or discontinue
the use of product in future.
Evaluation of theory
Advantages
The diffusion of innovation theory is proven to be more advantageous and useful as it
explains the rate at which consumer would accept the innovation (What Is Diffusion of
Innovation and Why Is It Important in 2019?. 2020). There are various categories of adopters
which provide assistance among their company to prepare an excellent marketing strategy so as
to convince more and more customers at a global level. This kind of theory is useful in varied
sectors such as retail, marketing, groceries, agriculture and many more. With the aid of this
theory, it is easy to determine the buying behaviour of individuals and they could determine a
proper marketing strategy which in turn generate more sales and boost the productivity at a
marketplace. This theory is useful in gaining an insight level of knowledge which assist the firm
to achieve a prominent leader within a market. This theory assists in understanding several
factors which influence and persuade customers to acquire a merchandise. Therefore, the theory
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aids the company to generate more details of customers, emerging trends and current market
scenario which help the company to gain competitive edge and also improve the overall share of
market.
Disadvantages
The drawbacks of diffusion of theory is presented as follows:
Conflicts: This theory is combined with producers or manufacturer which help in
examining a new merchandise. The needs of manufacturers are more prioritised which provide
an individual to study these aspects such as customers taste and preferences and help in
attainment of business objectives successfully. This involve the occurrence of diffusion which
give rise to conflicts and misunderstandings.
Possibility of cultural clashes: There are chances of cultural differences which affect the
day to day operations of a business (Patricio Chile. 2017). They influence the people to adopt the
same kind of innovation which in turn hamper the growth of a firm. In addition to this, company
forget to take into consideration the regions and norms in case of introducing new merchandise.
Economic differences: This theory put more emphasise on innovation rather than
advancement of infrastructural facilities. Lack of proper transportation and communication
facilities does not accelerate economic growth and thus bring negative consequences for a
society. There are several communities which are facing economic barriers that render the
growth of an innovation in a proper manner. This create difficulty for a firm to launch new
innovations within a society.
Lack of information: There is high chances of misleading information and opinions
which create confusion in the mind of individuals. When firm plans to launch its product,
sometimes it could lead to lack of details related to innovation which create misunderstanding
and thus develop lack of transparency and accountability in a workplace. This reduces the
possibilities of risk and hamper the success of a firm in a coordinated and efficient manner.
Time consuming: Marketers have to spend lot of time in persuading laggards and late
majority to acquire a product. In addition to this, the marketer has to incur huge cost on spending
on research and development and formulating proper planning so as to convince them to accept
the innovation quickly. Also, there is greater number of laggards and late majority in comparison
to innovators which affect the success and growth of a firm.
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Use of innovation theory in context of chosen organisation
Deliveroo is online food delivery company which is incorporated in London and
headquartered in United Kingdom. This company is founded by Will Shu In the year 2013 and
has expanded its operation in different parts of countries such as France, Spain, Italy, Australia,
and many more which has around 5600 employees. This is most popular company which is
smoothly running its business as the main motive is to provide a greater ease of convenience
among the group of individuals (Möller and Halinen, 2017). They emphasise to deliver its
products with greater accuracy of speed pan over the worldwide and thus generates more
satisfaction of buyers. The respective company works with biggest chain of restaurants that boost
the satisfaction of buyers as it improves the overall productivity and maximise the sale over a
market place. It is elaborated more in a presentable manner which is given below:
Use of advanced technology: There are several competitors of Deliveroo such as Just
Eat, UberEATS, Grub Hub and many more. So, the concerned firm uses advanced technology
and provide cost efficient services and also it takes care of proper health and hygiene which
create a strong rivalry edge over a marketplace. Furthermore, they emphasise to make chain of
best restaurants in UK that help in accelerating sales and productivity.
Environmental awareness: They are more aware towards environment aspects such as
use of CNG vehicle and avoid the use of plastic bags which provide a significant protection
towards an environmental aspect. They also emphasise on adopting the strategy of reuse and
recycle that aids in achieving sustainable development in a long run. They also emphasise on
making judicious usage of resources which create a positive brand image of company across the
globe.
A business canvas model is a management model which emphasise on adding value to its
customers with the help of several elements such as financial performance, infrastructure
facilities, customers and many more (Van Lancker, Wauters and Van Huylenbroeck, 2016). This
strategy encompasses of formulation and implementation of proper planning by deciding an
appropriate course of action among the several alternatives which assist the firm in achievement
of predetermined goal. The top manager of Deliveroo uses this model so as determine several
areas of business and it also assess the availability of resources so as achieve cost benefit and
sustainability within a marketplace. The business canvas of Deliveroo is showcased beneath:
Key Partnerships Key Activities Value Customer Customer
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Venture capitalist Packaging,
payment
processing,
logistics,
efficient
transportation
Propositions
Attractive
packaging and
use of clothing
bags
Relationships
Loyalty cards,
sales promotion
tactics and social
media sites such
as Facebook,
Instagram and
also it provides
attractive
schemes.
Segments
Working class
people and for
every generations
of individuals.
Key Resources
Sophisticated
technology
Use of CNG
vehicles
Infrastructure
Channels
Online platforms,
apps and its
respective
websites
Cost Structure
Promotional campaigns, Research and
Development
Revenue Streams
Payments could be done by customers through
online mode and cash mode and provide easy
distribution of goods.
Historical development of product or services
Deliveroo is a most popular company which is headquartered in London and is
propounded by Will Shu and Greg Orlowski as it is operating its operations in an around 200
cities. This firm would emphasise to make money by charging commission fee from both
customers as well as restaurants (Xu and Ding, 2016). It provides online delivery of food
products till the point of customers through motor cycle or bicycle in an efficient time period.
In the year 2017, the respective firm introduces Deliveroo plus which emphasise on
providing unlimited delivery of products among their customers so as to gain maximum
exposure at an international level. This firm has popular chain of restaurants in UK which gain
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giant access of customers in a marketplace. In 2016, concerned firm formed an excellent deal
with Heineken International that deliver different varieties of beers and wines as it began to
expand its activities across the globe. Then in 2017, it plans to announce an enormous job
opportunity and has employed full time staff. The founders of the company are awarded for best
start up founders and it also received Europas Grand Prix award that generate a positive brand
image. While starting the business, Deliveroo raises funds from various sources such as angle
brokers and Index brokers and raised approximately 2.75 million. The respective firm emphasise
on safety measures for riders to provide safety and emphasise among their customers.
Use of Diffusion Innovation Theory in case of historical development
The manager of Deliveroo use the theory of diffusion innovation and focus on customers
to attract towards their service. It provides several promo codes so as to attract early majority and
innovators. It also uses social media platforms such as Facebook, Instagram and many more as it
tries to influence early majority and late majority which create more awareness of products
which in turn develop brand loyalty. This theory of diffusion is so useful that it helps in
attracting loyal customers which generate more revenue and maximise the productivity. It has
tied with Amazon and provide varies online payment modes as it provides ease among their
customers. Various reviews and social proofs are methods which are encouraged by company to
influence late majority to adopt innovation as it would have major impact on society. In addition
to this, the theory of diffusion would aid the respective firm to grab the attention of customers
round the world and also help them to become a prominent leader in the market. This improve
the overall market share and accelerate the sales and thus gain rivalry edge.
Pathways of future development
Deliveroo has plan to conduct business in a new and modern style that help in making
transformation in a modern era. There is big revolutionise in this sector as the concerned firm use
online delivery of food products and provide fast and efficient services that shape a greater future
and ensure more success and prosperity within a market (Zumba-Zúñiga and et.al., 2016). They
are adapting several modifications in their business which emphasise to satisfy the needs as there
is increasing number of people ordering meals online. The respective firm is planning to
introduce autonomous delivery vehicle through robotics that provide fastest delivery as adoption
of new and advanced technology shape a bright future which saves time and provide cost
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efficient services. In future, customers would become more health conscious so the respective
firm would emphasise more on quality specifications so it establishes chain of restaurants which
are popular as a result would contribute towards more sales and thus improve the overall
business performance in a marketplace. The respective firm emphasise is working with
environment friendly producer which accelerate the sales.
The motive of Deliveroo is to work with greater than 40 restaurants and is planning to
reach 14 markets across the worldwide in Europe. The Amazon has planned to invest $575
million which is most valuable investment as it is considered as the most successful tech
companies in UK. Recently, it is planning to launch a scheme such as click and collect scheme
which provide easy availability of goods among their customers and provide them an appropriate
option to collect food from its platforms. They also continue to make a long chain with top most
restaurants in UK so as to provide quality food across the world.
In a technological era, the future plans adopted by Deliveroo is sooner they would replace
master chefs with robots plus riders with robots so as to provide services within fiction of
seconds among their customers. In future, this would fascinate especially the younger
generations and also lead to minimisation of cost and accelerate the profit margins in a
marketplace. This also facilitate proper coordination and improves the overall effectiveness and
efficiency as the work would be performed automatically. The emerging modes of technology
such as artificial intelligence has change the entire scenario of market which help the company to
make transformations in corporate world. Moreover, this also assist the company to beat its
competitors as it would attract and grab more users across the globe which in turn improves the
organisational performance and maximise the productivity in a marketplace. Globalisation is the
main reason which assist company to adopt several changes and make efficient utilisation of
technology and manpower which help in gaining competitive advancement. Deliveroo would
hire best and technical staff that would provide benefit in future as it would increase the
efficiency and effectiveness within a marketplace.
CONCLUSION
From the above information, it can be summarised that innovation help in development of a
nation and help in radical improvements in business corporation which ensure greater
transparency. The theories of innovation such as diffusion theory which includes several stages
such as innovators, early adopters, late majority and laggards as each have different roles and
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way of perspectives in a society. This theory is so much useful in today’s modern era which help
customers to make decision regarding the acceptance of innovation. The future development and
various pathways towards a firm to gain a significant position by adopting emerging mode of
technology and meeting customer expectations.
REFERENCES
Books and Journals
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Alexander, B. and Joe, T. eds., 2019. Managing Innovation: What Do We Know About
Innovation Success Factors? (Vol. 33). World Scientific.
Biemans, W., 2018. Managing innovation within networks (Vol. 7). Routledge.
Chen, J., Jiao, H. and Zhao, X., 2016. A knowledge-based theory of the firm: managing
innovation in biotechnology. Chinese Management Studies.
Guerra Guerra, A. ed., 2018. Organizational transformation and managing innovation in the
fourth industrial revolution. IGI Global.
Jalles, J.T., 2016. A new theory of innovation and growth: the role of banking intermediation and
corruption. Studies in Economics and Finance.
Kerzner, H., 2019. Innovation Project Management: Methods, Case Studies, and Tools for
Managing Innovation Projects. John Wiley & Sons.
Lind, J., 2017. The role of accounting for managing innovation processes when relationships
matter. IMP Journal.
McPhee, C., 2016. Managing Innovation. Technology Innovation Management Review. 6(4).
pp.3-4.
Möller, K. and Halinen, A., 2017. Managing business and innovation networks—From strategic
nets to business fields and ecosystems. Industrial Marketing Management. 67. pp.5-22.
Tsaih, R.H. and Han, T.S. eds., 2016. Managing Innovation and Cultural Management in the
Digital Era: The Case of the National Palace Museum. Routledge.
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.
Xu, L. and Ding, F., 2016. Parameter estimation algorithms for dynamical response signals based
on the multi-innovation theory and the hierarchical principle. IET Signal
Processing. 11(2),. pp.228-237.
Zumba-Zúñiga, M.F., and et.al., 2016, June. Social media: A new tool for managing innovation
in SMEs: Analysis in the service sector in the southern region of Ecuador. In 2016 11th
Iberian Conference on Information Systems and Technologies (CISTI) (pp. 1-6). IEEE.
Online
Patricio Chile. 2017. [Online]. Available through< https://bizfluent.com/info-8633492-
disadvantages-using-diffusion-theory.html>
Diffusion of Innovation Theory. 2019. [Online]. Available through:
<http://sphweb.bumc.bu.edu/otlt/MPH-
What Is Diffusion of Innovation and Why Is It Important in 2019?. 2020. Available through:
<https://www.thestreet.com/technology/what-is-diffusion-of-innovation-14804157>.
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