Innovation Management: Dyson's Growth with Diffusion Theory

This report examines Dyson, a multinational technology company, through the lens of the Diffusion Innovation Theory to understand its growth and innovation management strategies. It evaluates the Diffusion Innovation Theory, outlining its principles, processes, benefits, and drawbacks. The report applies this theory to Dyson, analyzing its historical product development, business model, and strategic factors using a business canvas model. It explores how Dyson leverages innovation to attract customers and maintain a competitive edge. Furthermore, the report suggests future development pathways for Dyson's products and services, grounded in the Diffusion Innovation Theory, to ensure continued growth and market relevance. Desklib provides access to this and other solved assignments for students.

MANAGING INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
Evaluating the innovation theory.................................................................................................3
Overview of company and application of theory on the organization.........................................6
Future development and recommending pathways for development..........................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation management refers to the process that helps the company to have the best
procedure of the innovation at the starting stage of the company. It is very important for the
company to sustain the innovation as this supports them to have development in market. The
current assignment is based on Dyson which is the multinational technology based company in
the market of Singapore. The chosen innovation theory for the report is Diffusion innovation
theory. This report will put focus on the innovation theories that helps the company to have
growth in the market. Further this report will outline the application of innovation theory on the
chosen company in order to grow in the competitive market. This will also include the products
and services and application of the innovation the company. At last this report will outline the
recommendations to the future development of the products and services rendered by the stated
company.
MAINBODY
Evaluating the innovation theory
Theory of innovation refers to the different investment theories of the business that helps
them to have expansion in market. This theory helps the company to have better working in the
market that makes them to have better growth in the market. It is one of the most important
function of the entrepreneur that introduces them the innovation and profit as the reward
(Clohessy and Acton, 2019). The entrepreneur used to do the innovation in order to gain the
profit and also reduces the overall cost of production in the market. The most used innovation
theory by the company is Diffusion innovation theory that helps them to have better and new
ideas. Adoption of something new helps the organizations to have better market and also
increase in the target market. The adoption of the new idea or product makes the company to
have better growth in the competitive market. This theory is one of the oldest theory that used to
have new and better ideas internally. This helps to outline the new technological advancements
that are spread in the societies and culture as well (Diffusion Of Innovations Theory, Principles,
And Practice, 2022). The researchers of this theory has developed the different models in order
to explain and forecast the changes of diffusion in the innovation.
The innovation diffusion theory used to describe the process that provides them new
ideas, products and practices attracting more customers in the market. This basically involves the
five categories that involves innovators, early adopters, early majority, late majority and

straggler (Min, So and Jeong, 2019). This theory used to explain that how the new ideas and
practices are adopted by the company in order to have long- term growth. As it is very important
for the organizations to know about the development of the market share as company used to
offers new products on the continuous basis. The application of the theory is very useful as this
helps the company to identify the recruitment in order to bring innovation in the market. It
includes the different types of categories that is described as below:
1. Innovators: In this the entrepreneur used to take the open risk and try first on the
ideas developed in the market.
2. Early adopters: In this the people are interested in order to work with new
technologies and have utility in the market (Foucart and Li, 2021).
3. Early majority: This includes the person which used to pave the way in order to
have innovation in the society.
4. Late majority: This includes the set of people who used to follow the above
phase in order to have innovation in everyday life.
5. Stragglers: In this the people used to lag the population in order to adopt the new
and innovative ideas.
Principles of Diffusion innovation theory:
1. Relative advantage: In this principle, the degree of innovation used to appear in
the better way as compare to other alternatives in the market. This is one of the
most important principle that helps the company to serve for the best purpose in
the market (Sartipi, 2020). By having the innovation it makes the company to
compete with the other innovations in the same purpose. By focusing on this it
helps the company or people to have the relative advantage in the market.
2. Observability: this the degree of principle that makes to have better innovation
and helps to adopt such innovation. If the innovation adopters are not aware of the
innovation they must observe their peers and adopt the innovation. By observing
the peers helps them to know about the innovation made in the market.
3. Trial-ability: In this principle, it is seen that the innovation is experienced firstly
on the limited access. As more focus on the innovation makes the company to be
in loss and disturbs the existing working in the market as well. Having more focus
on the innovation decreases the profitability as well.

4. Comparability: In this element, the innovation is seen as to be done on the
consistent by having the existing values, experiences and wants of the user. The
innovation used to exist among another innovations and the experienced used to
have the potential adopters with their personal values and beliefs. There are some
innovations that are done on the part of big group that are known as technology
cluster. This makes the experienced adopters to compare the things with the other
innovations in the market. By this there is better innovation in the market by
comparing the things on the continuous basis.
5. Complexity: In this principle, the innovation is seems to be difficult to
understand as there must be some complexity in the projects. The people or
adopters used to adopt less complex projects in the innovation (Qazi, Raza and
Shah, 2018). As this used to mismanage the profitability of the company and
decreases the market share as well.
Process of Diffusion innovation theory: This innovation theory used to include the five
process that helps them to have better innovation in the market. The five stages is as described
below:
1. Awareness: In this process of innovation the person used to become aware of the
things in order to do innovation in the market. They used to have some innovative
ideas of what and how to do changes in the market. By having full focus on the
innovation helps he company to have better changes.
2. Persuasion: In this step, the person used to develop the attitude in order to bring
the innovation. In order to do this they collect the information for which they used
to bring innovation in the competitive market. By compelling and seeking the
information makes them easier to adopt the innovation.
3. Decision: further in this step of the process the person used to see the benefits and
drawbacks of doing the innovation in the market (Syahadiyanti and Subriadi,
2018). By evaluating the innovation and checking pros and cons of it, it makes the
decisions to adopt or reject the innovation. The person must take the appropriate
decision that helps them to have better selling of products and services in the
market.

4. Implementation: If the company or person has adopted the innovation than they
used to put the innovation in the market. After adopting this makes them know
about the importance of having the innovation in the market.
5. Continuation: In this the company used to check the results of the decision make
by them in the innovation. This makes them to know about the innovation and
motivates the company as well.
Evaluation of theory: (Benefits and Drawbacks of innovation theory)
Benefits:
1. This innovation theory is successfully working in the every field of that includes social
work, marketing, public health, etc.
2. It supports the organization to generate the new and innovation in the market and have
better profits (Sasaki, 2018).
3. This is one of the most successful theory used by the organization in order to have new
ideas and have better survivability in the market.
Drawbacks:
1. In this theory lots of evidence id required in order to adopt the innovation in the market.
2. It does not have the participatory approach in order to have the better health program.
3. This theory used and works better when there is proper adoption of the behaviours in the
market.
4. As there are different elements in this theory which mismanages the work of the
company.
Overview of company and application of theory on the organization
Dyson is the Singaporean multinational technology organization that was founded by
James Dyson. The company was first established in 1991 at Malmesbury, England and used to
produce household appliances. The company basically produces vacuum cleaners, air purifiers,
hair dryers, fans and variety of lights. As the company used to produce the variety of products so
it used to have more than 12000 employees over the world. In 2022, the cited company has
announced to have further investment of around S$1.5 billion the operating company. The
company has done the innovation and manufactured its own electric vehicle that helps the
company to have better profit as compare to past years.

The company can used the Diffusion innovation theory that helps the company to have
new and innovative ideas that makes them grow in the competitive market. In this theory of
innovation the company used to have communication by using the different channels and attracts
more customers in the market (Mori and Mlambiti, 2020). This basically includes the innovation,
channel of communication and social system as these are the important components of the
innovation in diffusion.
It is best and one of the oldest innovation theory that makes Dyson to have widespread of
the innovation in the market. The researchers of the company has found that this is one of the
important theory that includes the different models in order to forecast the innovation. This
theory includes the five categories that is innovators, adopters, early majority, late majority and
stragglers. From this the company is the innovator that makes them to have better adoption of
innovation in the market. The innovators in this used to take risks and develop the new ideas in
the market and make the people attracted towards such innovation. The cited organization used
to produce the household appliances that makes them to do innovation which used to have more
target customers in the market (Faisal and Idris, 2020). Business canvas model used to describe
the visual presentation of the company by highlighting the strategic factors of the company. The
business canvas model of Dyson is as stated below:
Key partners
The well-being of
the partners by
having the good
employees.
The strategic
alliances between
the competitors.
Media.
Key activities
The company
used to have
problem solving
adapting ideas.
Must do
incremental
innovations.
Marketing
innovations.
Value
propositions
Increase the
performance in
the market.
Must have good
design of the
products.
Customer
relationships
Self- services and
personal assistant
both are there.
Customer
segments
Cleaning firms.
Household
appliances
produced by
company.

Key resources
Financial
resources: High
value
Investment in
R&D: High
Channels
Advertisements
done by using
social media.
Cost structure
Depends on economy on scale.
Depends on people and customers.
Marketing and sales.
R&D is the important part for the company.
Revenue Streams
The advertisements benefit of the
products increases the value of the
products.
Actual sales of the company is also
high.
As previously the company does not do lot of innovation which makes them to have
fewer profits in the market. By comparing from the past the company used to innovation that
helps them to have development in the market. In 1978, James Dyson used to produce the
vacuum cleaner but it makes them frustrated and decreases the performance of the company.
Further it produces the more products that helps them to have development in the market. By
adopting such innovation theory makes the company to grow in the competitive market. This
makes the company to follow the proper process of the Diffusion innovation theory that helps
them adopt the new and innovative ideas in the market. This also makes the company to have the
proper forecast of the things and have great ideas to do innovation. By following the innovation
process helps the company to have the systematic and creative ideas that helps them to maintain
the decorum at the workplace.
Future development and recommending pathways for development
Future development is the most important development that makes the company to have
proper planning of the things in order to grow. The company must make the plans and have
approvals on that made plans to get successful in the market. Dyson is the multinational

company so it must have the future developments programmes that makes them to have better
growth in the market. As the cited company used to make the house appliances items which
helps them to have better sales in the market. They must do something innovative which attracts
the customers in order buy the products of Dyson. It is one of the famous company that produces
the house appliances so the future development is most required (Goh and Sigala, 2020). As the
company has done innovation and brought the electric vehicle which has supported and increases
the profitability. In order to earn more profits the company must also make the proper plans and
have approval on that plans which supports them to have growth in the market.
The company must also focus on the diffusion innovation theory that makes them to
generate new and innovative ideas. This theory makes them to have better growth in the future
and have development in the market. As the cited company has announced that it will launch the
'Dyson Zone' that is the air-purifying headphones that helps the customers to buy such product.
These plans make the company to have future development and have good market share. The
company as also decided to have increase in the portfolio of the products and working in the new
fields by 2025. In order to enable this the company also has the investment plan of £2.75 billion
that helps them to have future developments in the coming five years. The company used to have
the development teas that helps them to generate the new ideas and converts them into reality.
By this the company used to have innovation in the technology by having changes in the market.
As the target market of the company are the consumers who uses the advanced and best
technology which makes the company to have better profits in the market.
There are some recommendations to the company that helps them to have the better
future growth in the market which is described below:
1. Have more presence on social media: as the most of the people are busy on the
social media so its one of the best way to promote the products. So it is
recommended to the company that the must have their more presence on the
social media sites that helps them to have better future development. As there is
not so much of capital required in order to have the access on the social media.
The company can also have its own websites which will be easier for the
customers to find the hose appliances products on the websites as well.
2. Engage employees: The employees of the company is the most important human
assets that makes the company to grow in the market. It is suggested to Dyson

they must engage their employees more in work which makes them to have better
innovations in the future. By this the company can bring some new products
which attracts the customers to buy the new and innovative products in the
market.
3. Have better tools: In order to innovation and have future developments the
company must have the best tools. By having the best productivity tools and
adoption of the new technology makes the company to grow in the market. Using
the new technology increases the production and have the future developments
(Ayodele, Nwatu and Olise, 2020). It is also suggested to the company that they
must have the proper management of the inventory in order to reduce the shortage
of the products in the market.
4. Have online selling: This is one of the important thing that the company must do
in order to have proper selling of the products. By making the online strategy of
selling the products helps the company to have good investments in the market.
The well-stated strategy make the company supports them to have better future
developments in the competitive market.
5. Focus on needs of the customers: It is further suggested to the company that
they must focus on the needs and wants of the customers in the market.
Customers appreciation is one of the important things that the company needs in
order to operate in the market. The company must have the online payment
systems that helps them to have better and more delivery of the products. By
having the advanced payment systems has the future development of the company
in the competitive market.
CONCLUSION
From the above report it is concluded about the management of the innovation in the
company that helps the company to grow in the market. The report has evaluated about
definition, principles and process of the innovation theory. In the report it is described about the
diffusion innovation theory by describing its process and principles. This is one of the best and
oldest innovation theory that makes the company to generate new ideas. Furthermore, the report
has described about the application of the innovation theory on the cited company. This makes
Dyson to have new and innovative ideas in order to grow in the market. At last this report has

evaluated about the future developments by recommending the best ways to the company. The
company can have the new websites that makes them to have increase in the target market. These
are the future pathways that helps the company to have development of the products and have
more customers. As it is seen that the diffusion theory is the most important innovation theory
for the company that helps them to have innovation in the market.

REFERENCES
Books and Journals
Ayodele, A. A., Nwatu, C. B. and Olise, M. C., 2020. Extending the diffusion of innovation
theory to predict smartphone adoption behaviour among higher education institutions’
lecturers in Nigeria. European Journal of Business and Management. 12(5). pp.14-21.
Clohessy, T. and Acton, T., 2019. Investigating the influence of organizational factors on
blockchain adoption: An innovation theory perspective. Industrial Management & Data
Systems.
Faisal, S. M. and Idris, S., 2020. Innovation factors influencing the supply chain technology
(SCT) adoption: diffusion of innovation theory. International Journal of Social Science
Research. 2(2). pp.128-145.
Foucart, R. and Li, Q. C., 2021. The role of technology standards in product innovation: Theory
and evidence from UK manufacturing firms. Research Policy. 50(2). p.104157.
Goh, E. and Sigala, M., 2020. Integrating Information & Communication Technologies (ICT)
into classroom instruction: teaching tips for hospitality educators from a diffusion of
innovation approach. Journal of Teaching in Travel & Tourism. 20(2). pp.156-165.
Min, S., So, K. K .F. and Jeong, M., 2019. Consumer adoption of the Uber mobile application:
Insights from diffusion of innovation theory and technology acceptance model. Journal
of Travel & Tourism Marketing. 36(7). pp.770-783.
Mori, N. and Mlambiti, R., 2020. Determinants of customers’ adoption of mobile banking in
Tanzania: Further evidence from a diffusion of innovation theory. Journal of
Entrepreneurship, Management and Innovation.16(2). pp.203-230.
Qazi, W., Raza, S. A. and Shah, N., 2018. Acceptance of e-book reading among higher education
students in a developing country: the modified diffusion innovation
theory. International Journal of Business Information Systems. 27(2). pp.222-245.
Sartipi, F., 2020. Diffusion of innovation theory in the realm of environmental
construction. Journal of Construction Materials. 1(4). pp.2-4.
Sasaki, M., 2018. Application of diffusion of innovation theory to educational accountability: the
case of EFL education in Japan. Language Testing in Asia. 8(1). pp.1-16.
Syahadiyanti, L. and Subriadi, A. P., 2018. Diffusion of innovation theory utilization online
financial transaction: Literature review. International Journal of Economics and
Financial Issues. 8(3). p.219.
Online
Diffusion Of Innovations Theory, Principles, And Practice. 2022. [Online]. Available through:
<https://www.healthaffairs.org/doi/10.1377/hlthaff.2017.1104>
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