E-Business and Technology Management Report: Innovation and Strategy

This report delves into the realm of E-Business and Technology Management, exploring critical concepts such as disruptive and sustaining technologies, open and closed innovation processes, new product development, and organizational knowledge management. The report defines and compares these concepts, providing real-world illustrations through the case of Innocent smoothies. It examines how Innocent utilized both disruptive and sustaining technologies, demonstrating how they introduced new products and repositioned existing ones. Furthermore, the report analyzes the processes of open and closed innovation, highlighting the strategies employed by Innocent to gain a competitive advantage. Finally, it discusses the importance of organizational knowledge management and its role in leveraging opportunities within a business.

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E BUSINESS AND TECHNOLOGY MANAGEMENT
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Question 1
Disruptive and Sustaining technologies
Definition
Disruptive technologies depict an organization that adopts technologies that aim at creating
new markets and value to customers and at the end they displace the existing market and the
initial value that was existent. Disruptive technologies instigate new firms, more products, and
business alliances. On the other hand, sustainable innovation can be defined as technologies
that are of the essence of escalating the performance of a product (Reinhardt, R. and Gurtner,
S. 2015, p. 138).
Comparison
There are various distinguishing factors between the disruptive and the sustaining
technologies. To start with, the disruptive technologies are majorly adopted by small business,
and the big business finds the technologies unattractive, yet at the end, the small businesses
grow to own a significant market share. Sustaining technologies are applied by large
companies that prove to be more conversant with apt technologies that progress the
performance of the product that is on the market. Also, the sustaining innovations are cultivated
from considering to the values and expectations of the customers in an already established
market. The company provides products that are customized for the customers in future.
Illustration
The reliable company engaged in disruptive technology at its conception. The company was
aware of the existence of other smoothies in the market but went ahead to produce their brands.
Later on, the brand displaced the market, and it continued producing more products. In the
beginning, it started with three brands that are; Sainsbury, Tesco and M &S (Trott 2012, p. 443).
Also, the company came up with products that had health benefits and directly
responsive to the campaigns that were being made about the benefits of incorporating of plenty
of vegetables and fruits in the everyday meals. The smoothies displaced the existing market
where they came up with their prices that were higher than those in the market and had a
particular target population that is the young and affluent (Trott 2012, p. 447).
Sustainable technologies are illustrated in the case where the first company that was
started by Henry in 1994 for smoothies. Initially, he inhabited in California and was fond of

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smoothies. When he came to the UK, he found that there were no smoothies yet there was the
need for the product. The smoothies that were present were difficult to import. It is through this
that Henry started his smoothie company (Wever, R., Schermer, R., Smit, L., and Vos, L. 2015).
That is the entrepreneur was aware of the needs of the customers and wanted to satisfy them
through availing the smoothies.
Lastly, Innocent engaged in various innovations regarding the designs of the packages
and the delivery vans of the smoothies. It was of the essence of creating value for the company
despite the product being evidently expensive as compared to the other beverages and drinks in
the market. The Innocent smoothies sell up to $1.99 for the on to go smoothies.
Innocent utilized the sustainable technologies through insisting on production of smoothies that
were made from natural fruits and with no additives. The innovation was to improve the
performance of the product in the market. Smoothies that was extremely different from those
that were being produced by the rival companies. It is also imperative to note that the company
ensured the strategies or the technologies that it established still made the smoothies simple. It
was the aim of instigating performance of the smoothies in the market.
Open and Closed Innovation Process
Definition
Open innovation stipulates the use of intended internal and external knowledge sources
with the aim of accelerating the expansion of the existing markets and for institutional
innovation. After the installation of open innovation, the organization opens up for partnership
with other companies through availing of its resources. Via the open innovation, an organization
can be able to sell its self-generated innovations in the case that the innovations are not viable
in their businesses (Felin, T., and Zenger, T.R. 2014). Products can be developed through
external resources. On the other hand, closed innovation is whereby businesses incorporated
innovation into their operations through utilizing of the primarily internal sources of knowledge.
The ideas that are brought forward are evaluated, and then the best and the most feasible one
are chosen for development and majorly on its commercialization.
Comparisons
The similarity between the open innovation and the closed innovation practices revolve
around the fact that in both the circumstances, the business uses the internal sources in coming
up with innovative ideas.

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The difference lays in the fact that in the closed innovation, the ideas that are
generated, the inventions that are formulated and the product and market developments are
mainly driven from within the business. While in the case of an open innovation, the business
considers the external sources in its ideas generation and invention such as the use of
technology (West, J. and Bogers, M. 2014). At the same time, the company still avails its own
generated ideas towards strategic innovation of the products and processes.
Illustrations
Open innovation is clear in the case, Henry during his innovation process, identified the
fact that he was not deemed to market his products. He essentially relied on word of mouth in
the marketing of his products. Through this, his company reduced its costs and thus it gained a
competitive advantage. Due to the reduced costs, the company was able to expand its market in
other places such as in Norway and Nottinghamshire. Innocent in the same way was able to
gain knowledge from experts and their university friends on how to convey its designs into its
smoothies (Johnsen, M.Ø., Kristiansen, K., Raddum, M.A., and Repstad, P.J. 2016). The use of
the two bins during a concert in helping the three entrepreneurs that began the Innocent was a
compelling way in determining if the products could be accepted into the market or not. Also,
Innocent utilized its internal resources in the innovation process. Since the composition of the
starters of the company was young well educated, affluent and modernized individuals, they
were able to come up with ideas such as those of sticking on the simplicity of the smoothies and
engaging in products that promoted a health value to the consumers.
Closed innovation can be illustrated in the case by highlighting the fact that the
company engaged its starters in the compilation of the ideas entirely at some point. At the
conception of the company, the three entrepreneurs of Innocent brought forth ideas such as
those of producing a product that could prevent the blocking of baths and the smoothies and
later on they decided on settling on the smoothies (Johnson 2017). The product testing was
entirely done by the entrepreneurs, and so is the implementation of the ideas. It is a clear
indication that the business at some point depended on internal resources in acquiring
knowledge for its innovation process.
1.3 New product development and the repositioning of an existing product
New product development is the process that encourages the creation of new products.
The development process is influenced by factors such as marketing of the products, designing
of the products, product management and research and development. A new product is mostly

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less than five years old in the market. Repositioning is where existing products are developed to
be able to create new applications of the product (Holahan, P.J., Sullivan, Z.Z. and Markham,
S.K. 2014).
Comparisons
Repositioning of the products can be psychological to the customers that are the
perception of the product in the minds of the customers is changed, and a new aspect of the
product is placed. For instance, customers are much aware that Aspirin is a pain killer, but
through advancements, the product can be repositioned as a drug that prevents perceived heart
attacks. On the other hand, new product development can involve the complete emergence of a
new product or an improvement of the product (Klimchuk, M.R. and Krasovec, S.A. 2013). New
product development can also include expansion of markets or their diversifications. NPD
involves an increase in the product line of a business while a repositioning does not necessarily
extend the product line of a product, it can just be an increase in the uses of the product. In both
of the cases, the markets may not be changed, but they may just strengthen.
Illustrations
Innocent as it conception majorly targeted the young and affluent individuals. The
products were majorly customized to serve this specific group. The company has brought about
a smoothie that is apt for the children. The smoothie is sold at 99p. It is thus ideal to note that
the business has come up with another class of consumers that can purchase the modified
products in the market in the bid to expand its markets.
Innocent was also has engaged NPD through coming up with a new product identified
as Juicy water in 2003. The product development strategy that was also utilized by Innocent is
to diversify its products. Initially, the products were only of 3 brands; the company has
developed its brand to incorporate other seventeen brands to increase its product line. The
seventeen products have created new markets for the smoothies. The company also aims at
expanding its markets beyond Europe (Purvis, L., Spall, S., Naim, M. and Spiegler, V. 2016).
Through continuous advertisements in the market and with the aid of expert knowledge,
Innocent has been able to develop its products. For instance, through the use of the
advertisements, consumer insights are instigated, and the company can determine the
acceptance of the product. It can then identify the gaps that are available and fill them through
the development of new products. Through the advertisements, the company can create new
identities for the developed products thus new markets.

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Repositioning of the products of Innocent was through the establishing the fact that the
smoothies were natural and pure and with health benefits. This was a new face for the
smoothies. Initially, smoothies were characterized as those that were concentrated, with
preservatives and with water. It was a repositioning of the product when the customers were
acknowledged of another reason to purchase the smoothies (van Rensburg 2015). The other
instance in the case of the position was to create the impression that the smoothie was the most
suitable for the sandwich eaters. The buyers thus found another reason to purchase the
smoothie.
Question 2
Organizational Knowledge management
Knowledge management can just be defined as a process of coming up with knowledge,
passing it on to others, utilizing it to allow its management of information possessed by an
organization. The information in this context is viewed as an asset to the organization (Birasnav
2014). And it can be substituted by the same in the definition of KM. KM integrates the
strategies and the goals of the organization in its management.
Some sources can be utilized to access knowledge. The sources are not limited to
individuals who are the main source of tactical knowledge. Tactical knowledge refers to
knowledge that is gained naturally, and it is not easy to pass the knowledge to someone else.
The other source is the fundamental knowledge that is propagated in the culture and the inbuilt
processes of an organization. Then there is the organizational knowledge, which consists of
knowledge that is created by groups through team work (Hislop 2013). Lastly, there is the
community knowledge, where this is the knowledge that is shared by communities that have the
same language or say practices and can pass amongst themselves shared values and skills.
Knowledge management is essential for business for it allows it to discover
opportunities and how to seize them to their benefit. The technological trajectory and knowledge
base that are explored determine if an organization is in a position to utilize the opportunities.
Technological trajectory refers to defined paths that innovation can utilize. Technological
trajectories can be determined by the scientific improvements, economic dynamics and
organization variables that are present. Lastly, a firm needs to have an absorptive capacity
which is the ability of a business to access and use new knowledge (Holsapple, C. ed. 2013).

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Innocent needs to engage in organizational knowledge management to successfully
operate in the fruit smoothie market. To start with, Innocent needs to engage external linkages
and build network relationships to promote KM. It is evident that the external linkages will
provide the business with professional advice on how to make the business more innovative say
in the case of how to market their products, through which media and at what costs (Totterdill
2015). Also, they can aid in the process of new product development where they can help in the
determination of the viability of the products and the best way to carry out the development to
create new value and new markets for new products. In doing so, the business will be more
competitive through the competitive advantage that the company will acquire from KM.
The other strategy would be for Innocent to gather competencies that will equip the
company with skills, processes and knowledge bases that cannot be replicated by another
business. The innocent should be able to update its competencies from time to time to
discourage other companies from replicating its skills (Oliveira, A. and Gimeno, A. 2014).
Innocent has tried to implement this through its acquiring expertise skills to manage its
processes. Also, the company n engaging in products that are purely natural with no added
preservatives has made it difficult for some companies in the industry to duplicate its processes.
Organization learning is another factor; a learning organization is that which can learn
from its past experiences and the outcomes of the experiences to be able to plan for the future
strategically. Through learning from the past, one can come up with viable ideas that will be able
to stir innovation in the future to curb the past problems. For instance, Innocent is facing
challenges of stiff competition from other market players that are more established than it.
Companies such as Coca-Cola and Pepsi have unique competencies that deprive Innocent of a
larger market share. KM through learning will aid in innovation that will make the company more
successful in the fruit smoothie business. In organizational learning, teams can learn from their
successes and failures (Nguyen, B., Wu, M.S.S. and Chen, C.H.S. 2017), the challenges of
pricing that the company faces should be corrected through organizational learning. This will
ensure that the company comes up with better production methods that are cost effective that
will make the smoothies to be well priced in the market. However, the learning process should
be consisting of every member of the organization. This is of the essence because it facilitates
sharing of the same ideas and beliefs. There is a limited chance for change to be refuted.
Limited rigidity by some of the employees to change accelerates innovation, and this should be
the case at Innocent.

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The innocent should stimulate a culture that allows free flow of information. Through the
sharing of ideas in the company, the company is in a position to instill new ideas, corporate
values and grow leaders. Through the incorporation of such cultures, the organization will be
ready for a change and will thus be in a position to carry out innovation. Through the impacting
of the business with new corporate values, Innocent owners will be rejuvenated to engage in
innovation to realize the new corporate values (Siemens, G. 2014). For instance, if Innocent
establishes a corporate value that stipulates that a customer is at the center of the organization,
then it is ideal that the company will make sure that it engages new technology in the devising of
Customer relationship management. Customer relationship, management indicates that the
customer is considered in every aspect of the business decisions and proper strategies are in
place to facilitate a close relationship between the business and the customers. The smooth
flow of data can incorporate technologies such as the use of intranets and extranets in the
organization.
Nonetheless, the company has to engage data that is filtered to be able to make more
informed decisions. Innocent has to put in place measures that will essentially reduce the
processing of large loads of data at a time. To be in a position to make significant decisions
then there should be forums that will allow the sharing of information that is filtered and supports
best practice (Kianto, A., Ritala, P., Spender, J.C. and Vanhala, M. 2014). Informed decisions
accelerate the ability of a company to engage in innovation because it will be in a position to
implement only ideas that are viable for the business and thus the creation of efficiency.
Moreover, the company could prompt quick idea generation that avoids duplication of
the previous failures as a way of knowledge management. It is significant for the new product
development teams to utilize organization learning in the generation of ideas. In the context of
Innocent, it can engage idea generation that will instigate efficiency such as cutting down the
time to market the smoothies. Time efficiency is a determinant of a company that is innovative
or not. Through KM, knowledge can be captured and thus instances of forgetfulness are
mitigated.
Furthermore, it is ideal for a business to implement methods that will allow safeguarding
of data that belongs to the organization. It is imperative to share ideas or to be transparent. But
there are processes or ideas of a company that is private and the leaking of information can be
destructive to the much-toiled efforts of a company. When the rival firms access the confidential
information of the company, they can use the information in destroying the victim company
completely. Systems should be in place that will inculcate a culture of securing access to data.

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Data should only be accessed by authorized individuals. The strategies that should be included
are; physical controls and the access controls. The innocent should put in place these measures
to ensure that its data access is restricted and thus its competencies are not at stake in any
dimension.
Question 3:
Use CIM to Illustrate Innocent’s Innovation process
The CIM integrates forces that impact each other in a cyclic form. These forces include;
scientific research, product development, market transitions and technological developments.
The model is the idea that innovation is flexible that is it can be carried out at any place at any
time and creates value. Innocent utilized the CIM in their innovation process.
To begin with, a cyclical interaction first takes place where the technological research is
at the center. In the case of Innocent, technological adoption, took place in the sciences cycle in
aid of life sciences. The change that occurred with technology was as a result of the company
engaging different experts to help them in the innovations (Schenkl, S.A., Behncke, F.G.,
Hepperle, C., Langer, S. and Lindemann, U. 2013). For instance, the company consulted
experts in the designing of their new products and also in the advertising of their products. The
experts included Turner Duckworth who helped in the design of the first shape of the product.
Also, the company engaged an agency in carrying out an advertising campaign in Ireland. Also,
the three entrepreneurs that started Innocent were learned individuals, one who was skilled in
management, and thus this helped in the stirring of technological changes through the art of
science.
The next cycle is the combined cycle; in this case, product development is carried out
through various strategies such as changing the design of the product’s package (Yates, D. and
Price, J. 2015). In the case of Innocent, the company had to maintain and come up with simple
designs that were catchy and fun. The entrepreneurs had to design the package in such a way
that the consumers could find it more convenient to handle. That is as smoothies were
produced essentially to be accompanied with a sandwich, it was ideal to have a package that
made it easier to use while taking a sandwich. Also, technologies were to be applied to the
packaging of the product so that the shelf life of the product could be prolonged. Lastly, the logo
of the product was too well designed on the products that could identify the product from the
other products on the shelves.

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There is an indication that the technologies in the science cycle are instigated by new
scientific ideas that can be identified as science push. Another factor to note is that technology
was driven by the functions of the products like in the case of prolonging the life of the product.
It is thus evident that technological dynamics are as a result of emerging insights in science and
the requirements for new products.
Double dynamics are also present around the market transitions. In these double
dynamics, there are two cycles are closely linked. The context in this scenario involves a market
change contrary to the previous double dynamics that incorporated technological dynamics at
the center of the cycle. In this case, the demand in the market takes the central role. The
changes in the demand in the market are seen in the science cycle. With the insights from the
behavioral and social aspects, social and technical remedies can be encompassed promptly
and still maintain economic efficiency. In the case of innocent, the company was able to identify
the changes in the attitude of the customers towards products that were believed to cause
obesity.
Also, it was keen on the campaigns that sensitized individuals on the significance of
incorporating fruits and vegetables into the diet (Trott 2012, p. 445). The societal needs thus
drove the entrepreneurs into availing products that were made primarily from natural fruit and
with no added preservatives into the market. Smoothies that was not only tasty by those that
were healthy and still affordable to their target population. It is also imperative to identify that
the smoothies that were introduced by Innocent were as a result of recognizing that the
customers lacked a smoothie that was natural and that which could suit the lifestyle of the
individuals that were slightly of a high class, young and with female characters. This made the
company be encouraged to come up with the product. In the other cycle that consists of the
services cycle. Innocent utilized the democratizing innovation where it contacted most of their
perceived customers through email to be able to identify if the product design was viable and
they depended on their comments to make decisions on the smoothie packages (Petit 2017).

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