Analyzing Disruptive Innovation: Just Eat's Development Report

This report provides a comprehensive analysis of Just Eat's adoption of disruptive innovation. It begins with an introduction to the concept of innovation and its benefits for businesses, followed by an in-depth explanation of the disruptive innovation theory, including its requirements, characteristics, and advantages. The report then delves into Just Eat's historical product development, covering stages from idea generation to commercialization. It highlights how Just Eat has leveraged technology and innovation to gain a competitive advantage in the food delivery industry. Furthermore, the report explores potential future development pathways for Just Eat based on the application of the disruptive innovation theory, offering insights into how the company can continue to evolve and maintain its market leadership. The report draws upon case studies and academic literature to support its analysis, providing a well-rounded understanding of Just Eat's innovative journey.

Innovation

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Explanation of Disruptive theory of innovation..........................................................................1
Explanation of historical development of product in Just Eat.....................................................4
Application of theory for possible future development pathway for future................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation refers to introduction of new idea, thought, technology, product, service in market
which is completely new concept for a firm. It helps them in reducing cost of business and also
in increasing profitability level of an enterprise (Chesbrough, 2017). This innovation attracts
customer segment towards company and provide them competitive advantage which helps to
over come from other market player existed in market place. Innovation also improve production
technology which helps to reduce over cost of operation process in a firm. It also assists
managers to bring differentiation for their product as well as business in market place from other
market players in industry. This innovation not only provide benefit to business but also to
customers as well as economy of country. This innovation creates employment opportunity in
market place. It also contributes in gross domestic product of country and contribute in taxes
which is important for welfare of people living in that country. This project report include study
of Just Eat which is established in the year of 2001 by Jesper Buch. Organisation is providing
services in various countries and provide facilities like take away restaurants, order placement,
online payment. Company is also using different types of technology including artificial
intelligence and augmented reality. This project report includes explanation of theory of
innovation in business. It also includes historical product development of product of enterprise
along with future development of product in market place.
MAIN BODY
Explanation of Disruptive theory of innovation
Disruptive innovation is one of innovation theory which is introduced in the year 1995 by
Clayton M. Christensen who is American Scholar. Disruptive innovation is based on creation of
new market as well as value network which disrupt previously exited market as well as value
network and displace well established market, leading firms, their products and their alliances.
Disruptive innovation is one of term of innovation which helps to transform expensive products
in more affordable product (Glückler and Bathelt, 2017). These expensive products are highly
sophisticated and is previously available for skilled and high market segment of customers
whereas affordable products are accessible for major market population. This transformation
create disturbance in market place through displacing established market players in market.
Disruptive innovation is not based on improving product and service of previous target market
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instead it includes use of technology which is easy to use as well as available to large non target
market. There is some requirement of this disruptive innovation theory which are as follows:
 Enabling technology: Enabling technology in business is used for purpose of bringing
substantial change as well as to improve process of doing things (Harper, 2018). But in
disruptive innovation, enablement of technology is innovation that helps in affordability
as well as availability of product and service in market place. Disruptiveness of market
depends on development of technology and improvement in it.
 Innovative Business Model: Innovation business model is one of model which use
innovation in target market customers. These market segment does not generate profit for
business and dos not buy their product as offering of business is not affordable for them
and is not sophisticated for them to use.
 Coherent Value Network: This network includes both upstream as well as downstream
partner for business which get benefit form disruption. It is important for suppliers,
vendors, distributors to reorganise process change for purpose of adaption to new
business model.
Disruptive innovation is related to exiting product and service offered in market and is
measured through traditional value metrics (Gobble, 2018). In initial level, when disruptive
innovation introduced in market, it does not provide large profit to a company and focusing on
high demand customers. Demanding customer is one which has higher profit level and well-
established market players are focusing on them as they are more profitable segment. Value for
disruptive innovation is mainstream as well as high customer segment are minimal at this time at
S-curve at in bottom level. There are various characteristic of this model and these are as
follows:
 This theory includes low level of profit margin ain beginning and helps an organisation in
access to various opportunity in market. It also includes high risk in implication of this
theory to business.
 This theory includes new business model and new technology in company and is based
on create disrupts in existing market or in new market segment within existing one.
Benefits of disruptive innovation: There are various benefits that a business get from adoption
of disruptive innovation model. These benefits are as follows:
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Helps in expansion of market and in finding niche: It helps an organisation in finding
out new opportunities in market on basis of changes occur in behaviours of consumer against
traditional industries (He and Tian, 2020). Sometime opportunities occur for business may be
small in initial period and are no expanding market share as well as profit. It is characteristics of
disruptive innovation that it includes small margins and small target market. Just Eat are
adapting innovation in their business which helps them in expansion of their market share and
also assist them in finding a niche for their offering.
It helps in improving process: it helps managers of business in examining of current
market share as well as in identifying solutions for consumer needs. It also assists in improving
services, product, adaption of changes and disruption within industry in which they work. It also
helps in identifying areas which is require improvement and is able to adapt changes.
Application of this theory helps in expansion of more quickly. Business of Just Eat is using this
theory of innovation in brining innovation in their operation process which improve their
processing and helps to reduce additional cost as well as efforts of employees.
Open up new opportunities for business: When an organisation become open to new ideas
as well as innovation, there are various opportunities unfold for their business (Herrera, 2016).
These future opportunities will improve market share as well as profitability level of an
enterprise. Just Eat are using disruptive innovation theory for implementation of innovation in
their business process which bring various marketing opportunities for firm and also increase
their revenue as well as marketing share.
Limitation of Disruptive innovation Theory:
 This theory needs separate strategy and include emergent process which is based on
unanticipated opportunities as well as problem and success. It is intended and focused in
improving understanding for what is working as el as what is not working.
 This theory is not based on designing product as well as service which indicating
behaviours of current customers instead it is aimed at people who should inform
designing innovation. This theory does not support Just Eat in designing product as well
as service in their business.
 Business adopting this theory is not able to achieve large profit because of its nature as it
is addressing existing market with low end or new market. It does not provide
opportunity to Just Eat to earn more profit at initial level.
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Explanation of historical development of product in Just Eat
Just Eat is an organisation which is innovator in field of restaurant as well as take away
food. They are leading enterprise in food delivery industry and providing their services at
different place in world. Organisation is established in the year 2001 in Denmark and providing
independent takeaway as well as food outlets to their customers (Huesig and Endres, 2019).
Company has provided their service in around 13 countries including Europe, Oceania, America
and Asia. Enterprises has 12 active market for their product and service and also handling more
than 68000 restaurants with their firm. Organisation has introduced this idea earlier in economy
which is emerging and are voiding their services on digital platforms. This digital platform helps
creating value for their product in market. This organisation has also adopted Disruptive
innovation as they hare handling their risk of being disruptive as per changes in consumer
behaviours, emerging of new entrants and replacement of technology.
Idea generation: First step in product development process is idea generation. This idea is
based on innovation which is completely new as it helps business to get competitive advantage in
market. This unique or innovative, a business can get from their customers, suppliers, employees
and other source (Isaksen and Trippl, 2017). Small business has limited funds but large
organisation has enough funds to conduct market research which helps in idea generation for
enterprise. It is an important stage in generation of idea for product as this is initial phase of
process of product development. Just Eat has identified a unique idea which is based on
innovation and new in business. They are providing online food delivery system which is based
on innovation as well as technology which provide them competitive advantage in market.
Screening: This is stage of product development in which managers are screening various
ideas to choose one among them. Organisation seek ideas from their workers, competitors as
well as customers which assist them in avoiding costlier ideas. There are various factors which
can affect their ideas so managers need to consider them while selecting one idea. These factors
include legislation, changes in level of technology and legislation. Just Eat are screening in
various ideas as per suitability of organisation as well as market conditions. Managers of Just
Food has selected idea which provide helps in generation of demand as well as helps to face
competition.
Concept Development: In this stage, company is carrying out a research to identify cost,
profit generate form prospective product as well as service. Managers of firm, also conduct
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various analysis including SWOT analysis which helps to identify strength, weakness,
opportunity and threats. Managers also formulate various marketing strategies which helps them
in identifying target market for their offering in market. This segmentation allows managers to
take various decisions related to marketing of product in market. Just Eat has used various
technology in their offered product including Artificial Intelligence and Augmented Reality.
Their product is based on online food delivery. They are bringing connectivity in customer as
well as modern market and working in food technology industry.
Product Development: Product development is that process which is based on actual
design for manufacturing of product. This process is based on market testing and managers or
owners take decisions on basis of test result (Meissner, Polt, and Vonortas, 2017). Managers of
Just Food has adopted this innovation based on their product development testing. This product
innovation helps them in developing this technology and also implementing in market. Company
is taking their food orders form app or websites. They are also providing service like take away
food, restaurant service which make their product different form other market players. Other
market players are using technology like phone order for take away service. Just Eat are focusing
on providing forefront in online food delivering services.
Commercialisation and rollout: After getting desired result from implementing this
technology, managers are focusing on commercialisation of their product as well as service.
They are formulating various marketing strategies which helps them in increasing their market
share. Just Eat are using innovative technology for their product and to communicate about their
offering they se using different promotional strategies which increase their reach. They are using
digital medium of social media marketing to promote their product and are focusing on youth,
hostelers and student as they preferred to eat from outside.
Application of theory for possible future development pathway for future
Disruptive innovation is one of those innovation which helps them in creating new market
with helps of technology. Just Eat is an organisation which is adopting innovation based on
disruptive theory (Parrilli, Fitjar and Rodríguez-Pose, 2016). This will help them in developing
their future pathway which allow them to further grow in future. Firm is using technology in
present way with helps of disruptive innovation which also assist them in formulating strategies
for future time. There are various pathways using y business which are as follows:
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Fourth industrial revolution: Fourth industrial revolution is one of digital revolution which
include is based on technology breakthrough evolution that include robotics automation process,
block chain, artificial intelligence and other internet things. It creates a great impact on industry
and also disrupt all industry which is in emerging stage or is developed. Industry is keeping
executive up as it is based on fear of disrupted. As Just Eat is an organisation which is already
working on innovation and also focusing on digitalisation. They are enhancing experience of
customer by providing them digital planform. Disruptive innovation is based on digital
technology and so business of Just Eat. So, it helps them to provide various opportunity in future.
From manpower intensive to technology centric: Disruptive innovation force market players
to make changes in operating paradigm as of being manual to technology centric (Saji and
Ellingstad, 2016). This will help to make future of organisation as manifestation of digital work
with helps to strategy for which executives working in enterprise. This will allow people to
follow certain process which is supported with technology and supervised by people using
technology. Just Eat can also make their organisation from manpower to technology centric as it
helps them in making their company for digitalised. Adaptation of disruptive innovation can help
them in more technology centric which helps to reduce human process and make operation of
firm more automatic. This will transform their job from doing things to thinking new ways for
innovation.
Future of Work: Future of any organisation will be automated but people has fear in their mind
than this automation can replaced as well as displace humans from workplace. There are few
occupations which can be automated fully with presently available technologies but is can be
automated by robots in future period of time (Silva, Styles and Lages, 2017). Just Eat by
adopting disruption innovation can be using fully automated job as they are currently doing some
of their activity automated like order taking, managing order online etc. This automation will
benefit them in many ways as human work include error whether accuracy with robotic work is
more.
Democratisation of work: Firm adopt various method as well as working arrangement to meet
their requirement of business. There are various types of employees working for company as full
time, part time, contract basis employees, freelancers, artificial intelligence, robots, offshoring
and many more. Just Eat is an organisation which has full time employees, artificial intelligence
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and other technologies. In future, they can use various other employee relationship as they can
access to other advance technology.
Preparation of job in future: If an organisation is not adopting technology, they their survival
in market will be difficult and it is more difficult them to compete with other market player
(Torfing, 2019). Technology innovation helps to reduce cost of business but if enterprise is not
adopting new technology, they their business will shut in market. In future periods of time, there
will be new emerging job occur in work. This job is depending on their tech centricity as well as
time horizon. Just Food can adopt various technology in future which create different job in their
enterprises. Organisation need to prepare themselves for these technologies as well as skills.
Anticipate skills in high demand: Business can identify various opportunity of growth in future
by preparing themselves for job opportunities (West and Bogers, 2017). It is important froe n
enterprise to learn new skills as well as improve old skills to be a market leader in terms of
innovation. These skills will assist managers in creating demand for their offering in market
place. There are various skills required by human resource to be prepared for future for digital
transform. These skills include digital skills, interpersonal skills, communication skills, agile
skills operating skills. Agile skills are one o those skills which helps business to accept changes
according to time whereas interpersonal and communication skills help them in automation as
well as connectivity with technologies. Digital skills allow firm to grow faster by using emerging
social media, e-commerce etc. Just Eat is one of those organisations which s adopting various
skills which helps them not only in present marketing condition but for future marketing
conditions.
CONCLUSION
From above mentioned project report, it can be concluded that Innovation in introduction in
market something new which include idea, concept thought, service, technology etc. This
innovation is important for a business in survival in market. There are various types of theories
of innovation adopted by business include disruptive innovation, blue ocean which helps in
implementing successful innovation. There are various benefits of this innovation as it helps in
providing various opportunity to business. It also helps them in increasing their profit margin and
increasing market share. It also helps in improving process of business which helps them n
sustaining in competitive environment. This innovative theory includes use of innovative
technology, innovative business model to implement changes in their process and also allow
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them to introduce differentiated product as well as service. But there is various limitation of this
theory as it does not allow firm to earn more profit in initial level. It also does not support in
designing product as well as service and also need separate strategy for an enterprise. Enterprise
adopt different process for historical product development which helps to introduce new product
or innovative product in market. For this, idea generation is important, business owners can
generate ideas form their customers, employees, competitor, partners or other source. After this,
they have to do screening process in which they select suitable idea to their capacity as well as
market condition. This innovation in market helps them in development of future path for their
business venture. Innovation ensure survival of business in future and also developed strong
market position in market.
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REFERENCES
Books and journal
Chesbrough, H., 2017. The future of open innovation: The future of open innovation is more
extensive, more collaborative, and more engaged with a wider variety of
participants. Research-Technology Management. 60(1). pp.35-38.
Glückler, J. and Bathelt, H., 2017. Institutional context and innovation. In The Elgar companion
to innovation and knowledge creation. Edward Elgar Publishing.
Gobble, M.M., 2018. Digitalization, digitization, and innovation. Research-Technology
Management. 61(4). pp.56-59.
Harper, D.A., 2018. Innovation and institutions from the bottom up: an introduction. Journal of
Institutional Economics. 14(6). pp.975-1001.
He, J. and Tian, X., 2020. Institutions and innovation: A review of recent literature. Available at
SSRN 3530214.
Herrera, M.E.B., 2016. Innovation for impact: Business innovation for inclusive growth. Journal
of Business Research. 69(5). pp.1725-1730.
Huesig, S. and Endres, H., 2019. Exploring the digital innovation process: The role of
functionality for the adoption of innovation management software by innovation
managers. European Journal of Innovation Management.
Isaksen, A. and Trippl, M., 2017. Innovation in space: the mosaic of regional innovation
patterns. Oxford Review of Economic Policy. 33(1). pp.122-140.
Meissner, D., Polt, W. and Vonortas, N.S., 2017. Towards a broad understanding of innovation
and its importance for innovation policy. The Journal of Technology Transfer. 42(5).
pp.1184-1211.
Parrilli, M.D., Fitjar, R.D. and Rodríguez-Pose, A., 2016. 11VBusiness Innovation
Modes. Innovation drivers and regional innovation strategies, p.197.
Saji, B.S. and Ellingstad, P., 2016. Social innovation model for business performance and
innovation. International Journal of Productivity and Performance Management.
Silva, G.M., Styles, C. and Lages, L.F., 2017. Breakthrough innovation in international business:
The impact of tech-innovation and market-innovation on performance. International
Business Review. 26(2). pp.391-404.
Torfing, J., 2019. Collaborative innovation in the public sector: the argument. Public
Management Review. 21(1). pp.1-11.
West, J. and Bogers, M., 2017. Open innovation: current status and research
opportunities. Innovation. 19(1). pp.43-50.
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