Innovation Management Report: Deliveroo's Strategies & Theories

This report provides a comprehensive analysis of innovation management at Deliveroo, a prominent online food delivery company. It explores two key innovation theories: Diffusion of Innovation (DOI) and Disruptive Innovation, examining their relevance to Deliveroo's historical and future development. The report details Deliveroo's journey since its founding in 2013, highlighting its innovative approaches to food delivery, including its emphasis on speed, quality, and technology integration. It discusses the company's historical product and service developments and speculates on future innovations. The report also considers how Deliveroo applies these innovation theories to maintain a competitive edge in the dynamic food delivery market, emphasizing the importance of continuous innovation for long-term sustainability and customer satisfaction.

Managing innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
Innovation Theories................................................................................................................1
Diffusion Of Innovation (DOI) Theory..................................................................................2
Disruptive Innovation Theory................................................................................................5
Innovation history of company...............................................................................................5
Historical Development of Products and Services.................................................................6
Future Development of Products and Services......................................................................6
Application of theories...........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation is defined as an aspect in which process related to creation of a new services,
products, technology, and process is being done in order to add value in existing process,
services and goods within an aim to fulfil consumer dynamic needs and demand (Phil-Thingvad
and Klausen, 2020). In today’s world each and every business organisation irrespective of their
size and scope are required to engage in the process of regular innovation practices in order to
ensure long term sustainability and provide immense satisfaction to consumers. Innovation allow
organisation to get competitive edge along with assuring long term loyalty from consumers that
automatically maximize entity growth opportunities. Present report is conducted on Deliveroo,
this company operate their services in online food ordering food delivery industry and was
founded in the year 2013. This company offer their services in different countries like United
Kingdom, Ireland, Spain, Australia, UAE etc. In this report formative discussion has been made
on two innovation theory alone with the implication in relation with respective organisation. In
addition to this report include historical and future developments of services and goods.
Innovation Theories
Innovation act as one of the most essential element and aspect for each and every
organisation in any industrial segment as it facilitate entity towards more growth opportunities as
well as profitability. It identify the extent to which entity can engage in the process of creation of
new services and products as to further add value in term to maximize their efficiency to attract
consumers and satisfy their needs in effective manner. Innovation can be done in terms of service
development, product development, methods of management to conduct task etc. This factor
maximizes organisation profit earning capacity and further enhances their strategic edge in
respective industrial sector. With the assistance of innovation entity can effectively drive
consumer attention towards unique and innovative organisational offerings that automatically
allow entity to enhance their profit earning capacity for long period of time. Innovation is having
significant tendency to satisfy consumer needs related to services and products.
It has been evaluated that research and development (R&D) department in an organisation
inform organisation to the need to adopt innovation process as techniques with their research and
evaluation of latest prevailing trends and technology in industrial segment. It further facilitate
management of organisation to develop plans, procedures and strategy in order to implement
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high –tech technology and procedure across organisational premises as to retain their customers
for long time period and ensure more competitive advantage. In relation to this diverse range of
innovation theories can be undertaken by entity in which some of them are defined below:
Diffusion Of Innovation (DOI) Theory
Diffusion of innovation theory was coined by E.M. Rogers in 1962, it is one of the oldest
social science theory and is mainly used in the procedure of exploring as well as communicating
the manner within which innovative idea for procedure is duly communicated by taking
advantage of different channels. It has been evaluated that there are different type of managers
with the help of which data can be transferred from interpersonal communication to mass media.
With the help of this theory determination of significant factors that are affecting the rate at
which innovation is get adopted by an individual (Lennerts, Schulze and Tomczak, 2020).
Along with this it also evaluate the way within which innovation first gained momentum and
then look towards diffuses across particular population. The end result of such diffusion is
implementation of innovative process or idea. It has been evaluated that essential element of
such adoption, is that an individual is required to have ability to perceive new technology,
modified ideas or goods.
According to the theory of diffusion of innovation implementation of innovative services,
ideas, technique for product does not get under take place instantly, as this procedure mainly take
significant sum of time period. In this it has been evaluated that some individual can implement
that innovation at initial stage while other individual adopt this process later. It has been
identified that those individual who implement innovation in their process is having different
form of behavioural characteristics comparatively to those who adopt this element in a slower
face. In addition to this it has been identified that in promotion of innovation process as well as
practice within target set of audience it is essential that main emphasis is required to be upon
behavioural characteristics of individual in such population as to effectively evaluate possibility
of implementation of innovation. As per the theory there are mainly five adopter categories and
although large number of individual that belongs to middle category. However it is important to
understand proper information into target set of audience. For this with use of different strategy
organisation can effectively able to influence various adopter categories in a significant manner.
According to the theory of diffusion, adaptors are termed as groups, individual, large base
of population or business entities that are prevailing in social system and further get
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characterized according to their capability to implement innovation. Mentioned below five
adopter categories that involved in respective theory is being defined:
Innovators:
Innovators are defined as those individual who are constantly looking towards process
and innovation in an enthusiastic way to offer new technology product service or process
(Joachim, G., Schulenkorf, Schlenker and Frawley, 2020). In this they take maximum level of
risk is they mainly aim towards implementing innovation ignoring the fact of failure chances.
Early adopters:
They are identified as those individuals those who are most discreet in terms with the
implementation choices comparatively with innovators, these are opinion leader and further
embraces opportunities as to implement potential product through which they can gain strategic
edge.
Early majority:
These are those individuals who implement innovative ideas as well as processes in long
course of time comparatively to early adopter and innovators. Early majority have their presence
in large number in marketplace, these individuals really require and evidence in context to ensure
success before implementing any innovative process or ideas. In addition to this it has been
identified that strategies in early majority are success stories and effectiveness of innovation.
Late majority:
Individual that belongs to the category of late majority is having the nature of immense
skeptical and cautious in order to implement innovation phase. These individual mainly
implement innovative practices as well as procedure after evaluating and identifying its proof
end outcome in order to ensure success of innovation implementation. In this strategy that can be
used to target late majority mainly include provision related to data number of individual who
have previously adopted innovation in a feasible manner.
Laggards:
These individuals mainly implement practices of innovation as well as procedure only
when they are found by traditional thinking and conservative ideology. They are the hardest
individual to convince to implement innovative practices. In this strategy through which
individuals can influenced towards innovation include pressure that may arise from personals
those who are part of other adopter categories and fear appeals.
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Illustration 1: Diffusion of Innovation Theory
(Source: Diffusion of Innovation Theory, 2019)
It has been evaluated that individual can adopt innovation with the use of stages that
include creation of awareness in order to bring innovative practices, ideas, selection to
implement the innovation, initial utilisation of idea in order to check their feasibility and
continuous use of innovation (Barbosa, 2020). It has been identified that there are mainly five
elements that are having capability to impact upon individual in the process of innovation.
Implementation all these factors are defined below:
Relative Advantage: It is mainly defined the extent at which innovation gets observed to
be better than service, product, idea or technique that drives towards strives to replace.
Compatibility: This defines as an extent to which an innovation is consistent with the
desirability of potential adopter’s requirement values and need.
Complexity: It is defined as the extent at which innovation is difficult to get into force by
a person. In addition to this it also evaluate probability of requirement of more competencies and
skill in order to utilise innovative practices and ideas.
Trialability: It usually states the extent at which innovative technology, product, process
or service get tested by an individual before they buy a product or service.
Observability: It duly determined as the extent at which innovative process, idea offer
benefits that are visible to other individuals.
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Disruptive Innovation Theory
Disruptive innovation theory was developed by Clayton Christensen in 1977 in his book
“The Innovator's Dilemma”. This theory is considered to be one of the most essential theory of
innovation and in this the author states that, there are some sort of innovation that further lead
towards development of new market and value network (Sydow and Müller-Seitz, 2020). This
form of innovation have ultimate destruction in the existing marketplace as well as value
network that act as major element of displacing prevailing technology in marketplace. With the
assistance of destructive innovation significant maximization in services and goods is being done
in an attractive or efficient manner.
Disruptive innovation theory mainly emphasise upon technological innovation in which
the use of advance form of technology over existing technology in marketplace one can gain
maximum advantages. With the help of this theory organisation can gain optimum advantage that
further ensure their existence and growth opportunity in future aspect. This form of innovation
mainly undertake place within an organisation in the way of a procedure, as it has been identified
that in the initial phase of process or product development with the assistance of destructive
technology entity can serve consumers in effective manner.
Innovation history of company
Deliveroo was established in the year 2013 in London by, Will Shu along with Greg
Orlowski. Main aim of this company is to provide food and proper delivery; it is a British start-
up and headquartered in London. Entity aim towards bringing world’s best local restaurants to
every individual office or home. In addition to this has been evaluated that respective company
effectively transforming the manner in which individual think about food delivering by providing
them reliable, fast and transparent delivery from premium restaurants. With their high quality
services Deliveroo provide individuals with excellent local cuisine from different places that
their customers love or know. Deliveroo is mainly known for their transparency, quality and
convenience, this company satisfy their customers by providing them fastest as well as easiest
way to order food and provide them with highest food quality excellent form high quality
restaurants. Innovation history this company effectively enhanced consumer loyalty as well as
trust towards entity that makes company to retain them for long period of time. Deliveroo
believes that nothing is less than the highest standards in food quality that they deliver and
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further provide high street to home that also allow deliveroo to provide assistance to local
independent restaurants to grow. By undertaking technology in their process this company
provide customers with their delivery in average of 32 minutes. With the help of their innovation
of Editions arms which is mainly a pop-up kitchen concept, deliveroo provide great solution to
restaurants. In addition to this it has been evaluated that the slicker Deliveroo’s model, as well
as the more data prove to be beneficial for entity in food sector to maximise their profitability.
Historical Development of Products and Services
It has been identified that deliveroo engage constantly in the process of adopting
innovation and strategies in order to ensure competitive advantage comparatively to other rival.
Company at present provide fastest delivery services to their consumers in order to satisfy their
needs and demand in a well effective manner (Tingru and Hock-Hai, 2020). With the help of
innovative technology this entity effectively conducts their operations in food sector. It has been
identified that this organisation has linked with different local restaurants and street restaurants
through which they satisfy their customers with exotic and tasty food. It has been evaluated and
deliveroo undertake use of technology in order to track town nearest rider in order to satisfy their
customers with hot meals. Alone with this with the assistance of technological measure this
company evaluate taste and preferences of consumers in a certain geographical area. It has been
evaluated that respectove organisation have also wishlist some of the innovative measures
through which they are planning to gain more economic growth in future. By typing the benefits
of technology this company provide immense satisfaction to customers.
Along with this, it has been identified that certain set of technological innovations adopted
by company provide them personalized recommendation to tracktown consumers need and want
according to their browsing history. In addition to this, by collaborating with street restaurants
and local restaurants this organisation ensure that they provide their services in easy and fast
manner to consumers minimum time period. In addition to this it has been evaluated that by
taking assistance of Editions arms and slicker Deliveroo’s model this company maximize their
growth in respective industrial sector.
Future Development of Products and Services
With the passage of time deliveroo has continuously engaged in the process of bringing
innovation in terms with feature, product and processes. By continuing the ritual of continuous
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innovation deliveroo is effectively capable to expand their services in both existing as well as
new market and further make their investment in projects like RooBox,it is a Pioneer remote
kitchen initiatives that effectively allow restaurants to have an access to delivery only kitchens in
accelerating geographic expansion, key location. In addition to this company also make
innovation by bringing the use of new technology which also act as big overhead as it allow
entity to maximize their efficiency. Company biggest innovation is in their logistic algorithm, it
allow them to find closest rider to the restaurant but now with the use of this innovation
deliveroo can identify the next order likely to be and where is the rider going. This further
facilitates entity to make predictions that make their system more efficient. With the help of this
algorithm Deliveroo’s significantly reduces waiting time for customers and further provide
assurance for them for their hot food arrivals and further maximize potential of earning of
deliveroo network of riders.
Application of theories
According to the understanding of Diffusion of Innovation (DOI) Theory, it has been
evaluated that in order to implement innovation it is essential for an individual to evaluate
feature and technology and then undertake a process to adopt innovation. In terms with
Deliveroo with the use of RooBox and slicker Deliveroo’s model entity aim towards maximizing
satisfaction level of consumers by offering them their services in limited period of time. This
innovation is being adopted by entity in order to track down nearest rider and provide consumers
with their delivery in limited period of time. In addition to this it has been evaluated that
deliveroo also undertake the use of Logistic algorithm innovation in which they allowed
themselves to evaluate next order along with where the rider is going. With the help of this
innovation respective organisation reduces consumers waiting time and further assures them with
their delivery in Limited period of time. It has been identified that there are diverse range of
factors prevailing in this theory which is having capability to impact upon innovation adoption
rate in marketplace:
Complexity:
It has been evaluated that futuristic and past innovation not duly required utilisation of
Hi-tech feature by consumers (Adegbite, Adedeji and Akintelu, 2020). In this has been evaluated
that innovation is not complex and can be effectively access in an easy manner.
Trialability:
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Persistence of technology of deliveroo in terms with Logistic algorithm allows company
evaluate their next order through which we can satisfy consumers in limited period of time.
Along with this with the use of innovative technology and collaborative with local and street
restaurants deliveroo provide consumers with the facility of wide range of menu through which
they can make their purchases.
By collaborating with different type of local restaurants deliveroo provide the customers
with the access to make their purchase from different restaurants according to their taste and
demand and fulfil their need in best effective manner,.
Observability:
With the benefit of Logistic algorithm and collaboration entity can satisfy their customers in
a best effective manner and can further more competitive advantage in food sector, this will
allow entity to satisfy their customers in efficient manner.
It has been evaluated that according to Disruptive Innovation Theory theory that different
type of innovation through which destruction in new market segment and value network can be
seen. In relation to this deliveroo largely disrupt food sector by introducing their whole new
concept of Logistic algorithm and roof box, with the help of this innovation company have
capability to disturpt food sector and can gain maximum shareholding in market price.
CONCLUSION
As per the above mentioned report it has been concluded that innovation act as an essential
tool through which entity can assure their maximum competitive advantage in respective market
segment. With the assistance of innovation business entity can maximize their sustainability and
growth opportunity for long period of time. In addition to this it has been evaluated that Theory
of Disruptive Innovation as well as Diffusion of Innovation (DOI) adoption allow organisation to
maximize their existing capabilities in context with services and products and increase their stake
holding in marketplace. Along with this it has been evaluated that by engaging in continuous
practices of innovation business organisation can be sure maximum loyalty and trust for
consumers and can retain them for maximum time period.
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REFERENCES
Books and Journals
Phil-Thingvad, S. and Klausen, K.K., 2020. Managing The Implementation Of Innovation
Strategies In Public Service Organisation—How Managers May Support Employees
Innovative Work Behaviour. International Journal of Innovation Management, 24(04),
p.2050074.
Adegbite, W.M., Okafor, E.E., Adedeji, O. and Akintelu, O.S., 2020. Managing Sustainable
Innovation in the Organisation: The Role of Workers’ Autonomy and Knowledge
Management. Nile Journal of Business and Economics, 6(14), pp.3-22.
Morgan, B., Holtham, G., Morgan, S., Huggins, R., Clifton, N., Davies, J. and Kyaw, S.,
2020. Managing Productivity in Welsh Firms. Hodge Foundation.
Tingru, C.U.I., Yu, T.O.N.G., Hock-Hai, T.E.O. and Li, J., 2020. MANAGING KNOWLEDGE
DISTANCE: IT-ENABLED INTER-FIRM KNOWLEDGE CAPABILITIES IN
COLLABORATIVE INNOVATION.
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Activity of Industrial Enterprises Against the Background of Digitalization of the World
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Education (EMLE 2019) (pp. 183-191). Atlantis Press.
McNamara, M.M., Linton, T.K. and Mikhail, N.K., Flextronics AP LLC, 2020. Method and
Apparatus for Managing, Displaying, Analyzing, Coordinating, and Optimizing
Innovation, Engineering, Manufacturing, and Logistics Infrastructures. U.S. Patent
Application 16/559,125.
Shi, X., Lu, L., Zhang, W. and Zhang, Q., 2020. Managing open innovation from a knowledge
flow perspective: the roles of embeddedness and network inertia in collaboration
networks. European Journal of Innovation Management.
Joachim, G., Schulenkorf, N., Schlenker, K. and Frawley, S., 2020. Design thinking and sport for
development: enhancing organizational innovation. Managing Sport and Leisure, 25(3),
pp.175-202.
Yordanova, Z., 2020. Gamification for handing educational innovation challenges. In Digital
Transformation of the Economy: Challenges, Trends and New Opportunities (pp. 529-
541). Springer, Cham.
Barbosa, A.P.F.P.L., 2020. Managing Collaborative R&D Projects with DifferentTypes of
Knowledge Sources. The Crest of the Innovation Management Research Wave, p.17.
Rangone, A., 2020. A Benchmark for Innovation. In Managing Corporate Innovation (pp. 85-
94). Springer, Cham.
Lennerts, S., Schulze, A. and Tomczak, T., 2020. The asymmetric effects of exploitation and
exploration on radical and incremental innovation performance: An uneven
affair. European Management Journal, 38(1), pp.121-134.
Sydow, J. and Müller-Seitz, G., 2020. Open innovation at the interorganizational network level–
Stretching practices to face technological discontinuities in the semiconductor
industry. Technological Forecasting and Social Change, 155, p.119398.
Wikhamn, B.R. and Styhre, A., 2020. Open innovation groundwork. International Journal of
Innovation Management, 24(02), p.2050013.
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