A Comprehensive Report on Innovation Management at Terracycle Company

This report examines innovation management through the lens of Terracycle, a US-based recycling company. It begins by defining innovation and its importance for business growth. The report then explores various innovation theories, including the diffusion of innovations theory, detailing the stages of adoption and the characteristics of different adopter groups. It also covers the general theory of innovation, differentiating between reactive, proactive, and on-demand innovation. Furthermore, the 4Ps concept of innovation is discussed, encompassing paradigm, product, process, and position. The analysis demonstrates how Terracycle applies these theories to its business, focusing on its unique recycling model and the creation of innovative products from recycled materials, such as fertilizer and backpacks. The report highlights Terracycle's marketing and communication strategies, emphasizing the role of social media in promoting its products and building customer relationships. The study concludes by showcasing how Terracycle's commitment to innovation drives its profitability and market position.

MANAGING
INNOVATION

INTRODUCTION
Innovation is a plan to increase market profits or share through service and product
innovation, it also indicates whether products improvement. It is one of the best strategy that
grow business profitability and productivity more than others in business world. Managing
creations is very essential for organizations that build their image in marketplace and set up
positive position in customers mind (Saunila, Pekkola and Ukko, 2014). They manage
innovation successfully by focus on clients, be exemplary, open up etc. The present report is
based on Terracycle company which is a private organization in US. It is an innovation recycling
firm that has become global leader in recycling hard to recycle resources. In this study explains
about the concepts and theories of innovations and clarify their helps in future development or
success of business. It will justify the historical development of one or more service and goods.
TASK 1
Innovation theories
Terracycle is recycling organization that runs volunteer based curbside collection system
to collect non recycling, post consumer waste and pre- customer, and then spouse with corporate
donors to turn it into raw materials to be using in new products. Firm licenses their name to
manufactures of roughly 200 goods made using their raw assets. The main products of company
is fertilizer made form vermicompost which is make by feeding organic waste to worms. They
always make innovation and creation in their business that build its position in marketplace
better than another (Lakemond and et.al., 2016). By following some theories of innovation
company develop their business and increase profits.
Diffusion of innovations theory-
This theory explain why, how and at what rate new thoughts and technology spread, in
this process innovation is communicated with among participants in social system. Diffusion of
creations theory are span and varied multiple disciplines (Karakaya, Hidalgo and Nuur, 2014).
This model is based on four basic elements such as, innovation itself, time, communication
channels and social system. Maintain quality of products is not enough for the organizations,
they have to focus about market value. This theory provide greater detail and concentrate on
what rate new ideas and product spreads through certain group.
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 Innovation: Innovation is an idea, object and practice perceived as new by person or
individual. It also is impulse to do something different and unique or bring some social
change.
 Communication channels: CC is one of the best way that take message form one person
to another, it helps to spread general information across individual. This process has been
done form like word of mouth, social media platform and SMS.
 Time: It refers to duration of time which takes form individual to get except to
innovations in society. In another words this stage explains time period of people which
they take to get using new and different ideas or creation.
 Social system: It refers to interrelated network unit that are joint together to resolve
issues for common goal. Social system mean all types of components that construct
society like institution, religion, group of people etc.
In this cycle distinguishes five stages in which products may find itself with five various
user unit that accept idea or product. Through this theory Terracycle becomes clear how idea or
product develop among users.
 Innovators: Innovators are group of people that needs to be first buy or try new products
and they are willing to take risks. They play role as trend setters that help to increase
product popularity and maximise sales. Innovators just not create some innovation in
existing product, but get interested in new concepts or products leads them out of local
circle of peers into social relationships that is more cosmopolite than normal. Usually,
they have substantial financial assets and ability to understand and use complex technical
knowledge.
 Early adapters: Just like innovators, early adapters like to try out some new things and
not afraid to invest money in new goods. This group is larger than other groups of people
and often they already know about new product or service. They integrated into local
social program more than pioneers. They are considered to be versus, localities and
cosmopolite creators. EA usually respected by their peers and discrete using of new ideas
and has reputation for successful. Because of their knowledge or understand they are
playing essential role in word of mouth promotion with respect of new ideas as result of
which business sales will maximize strongly.
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 Early Majority: This group loves current trends, but see product before making purchase
and prefer to wait. Early majority group buy new goods when they drop out at the level of
low price, they do not except new goods before average person (Aizstrauta, Ginters and
Eroles, 2015). They believe that innovation works rapidly before people are willing to
adopt it. EM group bought things that become extremely popular and this will cause
landslide in requirement.
 Late majority: In this group people actually lags behind and buy products after many
other individual have purchase it and its popularity is already decreasing. Late majority
adopt creations or new products after it has been excepted by Earlier majority. Reason
why LM does not purchase new products from beginning has to do with confidence in it.
This people has absolutely certain that they are not purchasing bad buy or things, but on
the other hand it beneficial for organizations because in this stage goods is sold quickly.
 Laggards: Laggards team lags behind in trend and does not like change or innovation,
they are less interested in buying new products. They decide to buy things until it is not
much in requirement and leave market place. They are traditionalist and last except
innovation or creation. Laggards are localities to target of being isolates compared to
other categories adopters. They take their decision in terms of focusing previous
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Illustration 1: Diffusion of Innovations theory
(Source: Diffusion of Innovations theory, 2017)

experience about new products. These people are very conservative and skeptical of
change and hardest group to bring on committee.
General theory of innovation-
GTI was created by Greg Yezersky the work aimed at make theory concerned with
understanding causes of enabling mechanisms for success, emergence and demise of human
made program. General theory of innovation process is based on historical analysis of
evolutionary procedures of real world program such as processes, markets, companies, products,
services etc. this theory have capability to forecast future of evolution, nature of success, ability
to objectively judge next innovation, to control procedure of creation etc. it is based on some
principles such as, all computer systems such as product, service etc. regardless of their
complexness and particular nature single step in this continual procedure, despite their perceived
randomness process of evolution has logic and predominant guidance (Van Beers and Zand,
2014). For creating various business applications GTI were using for it. It is rigorously tested to
address wants of real task, it also proven their effectiveness beyond any doubt. General theory of
innovation has three sections such as reactive innovation, proactive innovation and on demand
innovation. Reactive innovation: RI is invention that waits for good or better idea to be presented, in
this stage organization expects thoughts to be receive and then reacts to those it they are
considers better ideas. Performance based challenge and cost reduction is included in
reactive innovation. Pro-active innovation: It refers to company function that they are constantly defining
new challenges, opportunities and using ideas generate to attempt to produce new
services or products based on those challenges which they are facing during
performance. Pro-active is one of the best approach that has to be apply by the firm in
their business functions which give starting innovation path to it.
 On demand innovation: This happens when customers expectation towards organization
will be increase and they need products according to the latest trends. Thus, at this
moment firm has to innovate existing goods and present it within different way that is
beneficial for business growth and success. Without knowing any things about people
company does not create or innovate and they have to get all the knowledge regarding
customers preferences. On demand have two applications like, creation of capability of
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an entity to innovate on demand and creation of innovation management program for
entity.
4Ps Concept of innovation-
`This tool enables business what innovation procedure will improve and bring to
organizations, it based on four pillars such as paradigm, position, product and process. In
planning this concept it supports to understand where business stands in marketplace, how they
will innovate to improve their products, procedures and market position. It provides good
direction of where firm need to go and in which areas of their business that they need to
innovate. This is very useful tool that helps company to explore possible heighten in each area of
their business.
 Step 1: Paradigm- Paradigm is set of steps that helps show right path in term of success
and growth. It will guide or direct business how do they make innovation and what they
want to do to run business effectively. It gives directions to organizations let their
imagination take business to all possible change that will be leverage its share or profits.
It includes changes in firm business model, like for example, changing existing goods
form another platforms
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 Step 2: Product- In this step organizations get all the knowledge about how to improve
goods or services, how they will make it better and appealing than other available
products. Suggestion includes the best ways to make things good which is known as
incremental change. In other words innovation is one of the best suggestion that make
existing product completely unique or radical change.
 Step 3: Process- this stage reflect how business will create that offering, it does not
include preparation procedure of services or goods. This will think all the steps business
take, such as workflow, hiring candidates, supplying goods and training of workers. How
all these things enhanced to increase market share or profits, what are current trends to
carry out those process is their general inductions.
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Illustration 2: 4Ps concept of innovation
(Source: 4PS- EXPLORING THE INNOVATION SPACE, 2018)

 Step 4: Position- it works on changing context in which services or products are framed.
How do people see product, How business communicate with customers, employees,
public, customers, how firm make their position get better than others.
Terracycle run their business effectively within consistently make innovation or creation
in firm, they recycle wastage product and present in different or unique way that attract people
attentions towards their services. They manufacture 200 goods by using raw material that build
their image in marketplace better than another. Company focus on creating new things by using
pre consumer and post consumer waste that give it different looks. By following diffusion of
innovation theory in business function or activities they develop one or more products that build
their position in better way. They still make some innovation in their business structure for
example, Terracycle produce plan food packaged by reusing bottles and rejected spray bottles
tops. It also produces back pack which is made form juice pouches that grab the attention of
people and pressure them to buy it because it is totally worth it (Zhou, Jiao and Linsey, 2015).
In innovation serious organization both products grow their profitability and productivity more
and more.
Firm create innovative or creative products like, back pack and plan food bottle by using
wastage material that are rejected by people. After produce product or services in different way
company introduce both of them in marketplace by communicating with them through various
channels and sources that helps to introduce goods in front of customers. Advertising and
promotion is one of the best way that support to run this program effectively without any
barriers. Terracycle do marketing for their products that attract consumers towards them and grab
the attention of others that is very beneficial for business. Social media is better platform which
spread information about new goods form one unit to another. Communication capabilities or
patterns established strong relationship between clients as minimum for diffusion to occurs.
Promotion process is based on advertising new products in marketplace that will increase
business profit and market share more than other organizations.
Company give some time to customers for adopting their new products or services. By
producing plans and strategies they attract consumers that is very easy for them to except new
things in their lifestyles. Most of firm make marketing strategy that provided best opportunities
for developing their business smoothly. For example, in stage of late majority most of the clients
actually does not except or buy products they take some time. This group of people will buy new
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products after thinking too much and bought by many people's (Resnick and et.al., 2016). At that
moments goods popularity get decreased and its already lower in price that is beneficial for them.
Terracycle innovate pack back and promote it in market place that helps to grow business and
develop it more and more. Give time to clients organization improve their position because after
thinking too much people come out with one result that is purchasing products which sold goods
frequently that maximize profit margin.
Terracycle rapidly innovate new products by following many theories that help to
manage innovation and develop historical stage of one or more product. They adopting 4Ps
concept of innovation that support overall function of innovation effectively. According to this
theory organisation realised that it need to develop new range of product in order to stay in
market. By following all the stages they improve their position or reputation in better way which
effects financial budgets. It applies at the stage where organization need to improve their
positions.
 Paradigm: Terracycle started to see new aspects in their business, they are known for
firm that recycle wastage materials and produce it within different look. They are looking
with totally different paradigm, organization is recycling products firm. Innovation
needed seeing the same thing form unique perspective that take its business to further
level towards success.
 Product: Company have series of innovative products and now they are doing more
innovation in new products and develop existing goods. Terracycle produced many
products such as back pack which is made form juice pouches and plant food packaged
form reused bottles and reject spray bottle tops. They make innovation according to
customers needs that retain them with organization for longer.
 Process: Procedure innovation includes production process and supplier process, instead
of only selling at supermarkets. They also using booth presence in large retails with
attractive products display. They offer their best quality products to customers by
connecting with other organizations or using marketing strategies that enhanced to
increase their profit.
 Position: Terracycle opened up new market segments targeting people's based on gender
and age. For example, children's school bags or cartoon images bags for them. In order to
survive competitive market place they innovate new products that help to build their
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position and raise level of business in marketplace better than others. They are using
innovation mix to improve many business aspects and that what make them whole
difference.
Future development of Terracycle-
Terracycle produce their products or services by using wastage materials and make some
innovations that increase its profitability and productivity more than others. Know they began
with innovating of fertilizer made from vermicompost which is produced by feeding organic
waste to worms. Within this process they composed tea by mixing it with warm water and air in
large vats. It packaged in reduced plastic water bottles and their spray part of tops were made by
rejects form other companies. Organization diversified their production into upcycling and began
innovating products form other waste materials that develop their business more and more in the
future. According to Li, (2014) innovation is one of the best development pathway that increase
profitability and improve business position. It also develops productivity of products or service
that build them stronger than others.
Factors that help to grow commercial success-
Marketing of new products- As discussed by Batra, (2016) marketing is one of the best
factors that grow commercial success and growth of business effectively. It is key procedure of
promoting, researching and selling new products or innovative goods to target market. Promotion
and advertising contributed to move goods at high level where business get positive results as
increasing profit margin. It is very essential that Terracycle using marketing to promote their
products, innovation and offerings. It makes business successful and powerful that help to beat
any competitive environment effectively.
Identify customers needs- Clients needs are things that customers wants, required or
excepts in services or products which offering by Terracycle (Zhou, Jiao and Linsey, 2015). This
was another factor that increase commercial growth as well as success that is very beneficial for
business. By identify needs of consumer organization make innovation in their existing products
and give different or unique look that garb attention of customers and other people's.
Purpose of apply theory-
The main purpose of applying theory in business is to improve their products or service
position in marketplace as well as organization (Silva, Marques and Teixeira, 2014). It helps to
understand current needs and latest trends in society. It also supports to manage innovation and
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consistently do something innovative that is beneficial for Terracycle. By using these theories'
organization generate new ideas and produce products that garb the attention of other.
CONCLUSION
This report will discuss about managing innovation by using different theories that help
to improve business position in marketplace. It has been concluded that innovation is one of the
best way to raise organization level and attract customers towards firm. This unit discussed that
marketing and advertising support company to achieve goals and objectively and grab the
attention of set target market better than others. Identify customers needs and promotion is one of
that factors that increase profitability and productivity. Furthermore, it discussed about the
purpose of applying theory and ways for future development of business effectively that directly
impact on profit margin.
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