Innovation Theories and Strategies for Business Growth Report

This report delves into the critical role of innovation in business, particularly within the retail sector, using made.com as a case study. It examines various innovation theories, including the Diffusion of Innovation (DOI) theory, which explores how new ideas and products are adopted by different customer segments, and the Disruptive Innovation Theory, which focuses on how new technologies can reshape markets. The report analyzes the historical and potential future development of products and services at made.com, applying these theories to understand and improve their innovation strategies. It also considers the impact of various factors on the adoption of innovation, such as relative advantage, trialability, compatibility, complexity, and observability. The conclusion summarizes the key findings and implications for businesses seeking to foster innovation and achieve sustainable growth.

MANAGING
INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................3
Innovation Theories....................................................................................................................3
Diffusion Of Innovation (DOI) Theory.......................................................................................4
Disruptive Innovation Theory.....................................................................................................7
Innovation history of company...................................................................................................7
Historical Development of Products and Services......................................................................8
Future Development of Products and Services...........................................................................9
Application of theories................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In present business world, innovation is basically considered as a distinctive process,
which basically, aid a company while developing a whole new product, service or modifying
existing goods. With the help of this, maximum benefits could easily be gained by business
company through fulfilling all the needs and demands of customers (Helper and Henderson,
2014). Through focusing upon a range of factors, innovation can easily be brought in among
products or services that a particular business organisation is offering to the consumers. Along
with this, organisation that has been taken under this report i.e. made.com. Organisation is
performing business within the retail sector and offering customers with furniture along with
housewares and these are all being sold online across European nations. Along side this,
organisation is headquartered at London, United Kingdom. Report is going to be enclosed with
various innovative theories as well.
Innovation Theories
Innovation is said to be one of vital most element, which plays an important role for a
company when it comes to improvising the sustainability (Noble, 2017). Along with this, it is
said that creation of a new product or addition of value to existing procedures would help a
business organisation like made.com in reaching to new heights. In other words, innovation
basically helps a business organisation in developing a range of strategic edge that would aid in
surviving within the market. Every single business firm like made.com would basically require
to improve the overall performance level and this could easily be done through bringing
innovation within a range of services offered by company. Since, customer's demand is carrying
uncertainties it has become vital for a companies like made.com to develop themselves and their
products or service much more unique in nature. With the help of this, competitive advancements
can easily be gained in specified time frame. Along side this, innovation basically offers
satisfaction for the targeted individuals. Therefore, it is much required for the organisation to
develop strategies in order to bring innovation within the company.
In present context, organisation i.e. made.com is looking forward to expand its business
and this can be done through bringing innovation and this would directly help in offering
customers with satisfied products and services. Through this, customer loyalty could easily be
raised. Basically, innovative process along with a range of techniques can easily be pulled out by

taking in use Research & Development (R&D) department much effectively. It is much required
for made.com as well to keep its focus on this department and analyse the whole market and
necessity of targeted customers. Effective research done by this section of made.com will
directly help management in taking right steps in order to execute such advanced technologies
that might aid company in improvising the existing position, customer base, productivity and
profitability as well (Goolsbee and Krueger, 2015). In this regards, various types of innovation
theories can be used and implemented by enterprise, some of which are specified below:-
Diffusion Of Innovation (DOI) Theory
This theory is basically given by E.M. Rogers and it was propounded in the year of 1962.
This is being considered as one of the oldest social science theories. Along with this, innovation
theory is generally used in communication like how an individual can explain, how generate an
idea and imperilment on that idea. There are different people and they have different mentality,
this theory is basically depends on adopt a new idea, what is the behaviour of customers for that
products. If a person purchase a new products than customer have a particular and different
mentality for that products. The end outcome of this diffusion is adoption of innovative idea or
process. The most crucial thing of such adoption is the behaviour, idea or products.
As given in this theory, adoption of innovative idea, technique, product or services take a
lot of time because it is not easy for a customer to adopt it immediately. When a new products
comes into the market than customers have different precaution for that particular product. Here,
some customers adopt the products immediately when it comes in market, others are not
accepting that. If a person adopt an innovation immediately its mean that individuals behaviour
is totally different from other. These kind of people want be try first from other people. They
also know that it is a risky process but they want to take risk. they always develop new ideas to
others. They deliver a message to among audience. After it early adopter are comes, they peoples
are like who represent a opinion leader they people enjoy this role and they are always
comfortable in every situation (Dodgson, 2018). they are maintain sheets and they are not forced
to anyone to adopt that. Now comes on early majority, these are also innovate but they cant
adopt new things and ideas. before adopt a new idea they want proofs of that than they adopt it.
after it comes late majority, they people cant take innovation imminently, last are laggards, these
people who always follow tradition and not adopt any new innovation.

If an example is taken of made.com than this theory can be also applied on it. When
made.com launch its products than it is may be possible that some people purchase it imminently
and some people purchase after knowing it result like this product is really worth full of buying
or not. Some people like who are not purchasing after knowing the result because they follow
there customs or traditions (Greer and Hauptmeier, 2012).
Based on the above mentioned theory, it can be said that business organisations that are
looking forward to expand their business and more are said to be categorised among different
areas. There are five adopter categories within the Diffusion of Innovation (DOI) theory and all
of them are given underneath:
Innovators: These are said to be the individuals who basically stays interested to adopt
the innovation. Here, it can be said that enthusiastic approach is basically being utilised in order
to develop a whole new product or service. Along with this, these individuals basically carry
high risk tolerance capacity and looks forward to adopt the technology to bring innovation
without considering the risk factor of failure (Key Innovation Management Models and Theories,
2019). This approach can be utilised by made.com when there is a necessity of adopting it.
Early majority: Innovative ideas are basically being adopted by individuals that are
coming under this type of category, but they take a longer time frame for analysing the whole
situation of the market and stays a bit slower then innovators or early adopters. Here, it is being
found that individuals that are looking forward to bring innovation carries thought of getting
evidences in regards to the success, that if the plan will give sure short results or not. Here,
made.com's management could become this when it comes to pull out favourable outcomes in
any sort o uncertainties (Key Innovation Management Models and Theories, 2019).
Early adopters: These are the people who stays much more discreet when it comes to
their adoption choices in comparison with innovators. Early adopters represent opinion leaders
and embrace the change opportunities in order to adopt such potential products which may assist
in providing a strategic edge to them or the organisation in marketplace. They are highly aware
of the need to adopt change and thus, appreciate new and innovative ideas or processes.
Strategies by which an entity can appeal to this include 'how-to' manuals as well as information
sheets which contain data related to formulation. In the same manner, made.com's management
can also adopt this type of approach in order to sustain within the existing market or to enhance
the profit margins for a longer period of time.

Late majority: The personnel belonging to this category are immensely cautious and
skeptical of adopting innovation. They generally adopt innovative practice or process only after
seeing a proof of its favourable outcomes or ensuring that it has been adopted by majority of
people. Strategies that can be utilised for targeting this population can comprise of provision of
data related to the number of persons who have previously tried and adopted the innovation
feasibly.
Laggards: The people belonging to this category are last to adopt the innovative practice
or process as they are largely bound by conservative and traditional thinking and ideology. They
are immensely skeptical and are the hardest to be convinced for adopting the innovation.
Strategies that can be formulated to appeal to this category can comprise of fear appeals,
statistics and pressure arising from personnel who are a part of other adopter categories
(Diffusion of Innovation Theory. 2018).
Considering the above mentioned theory and all the stages that are being given under this
approach, could help individual’s whether he or she is an innovator, early adopters, laggards, late
majority or early majority right amount of innovation can be brought in in within a business
organisation like made.com. on the other hand, it has been found that there are a range of factors
which usually affects the adoption of innovation within a business organisation like made.com.
Some of these factors are given underneath:
Relative Advantage: This type of factor miserly impacts upon an innovation which
company is looking forward to have (Grandori, 2012). Here, it has been observed that innovation
that is going to be brought in is carrying is observed to be better than the product, what service
offered by made.com.
Trialability: This implies the extent to which the innovative product, service, technology
or process can be experimented or tested by individuals before making a purchase.
Compatibility: This refers to the extent to which an innovation is consistent with the
requirements, needs, values and desirability of potential adopters.
Complexity: This implies the extent to which the innovation is difficult to be perceived or
put to force by an individual. Also, it determines the probability of requirement of more skills
and competence to make use of innovative idea or practice (Jurkovic and et. al., 2015).
Observability: This explores the extent to which the innovative idea or process provides
such benefits which are visible to others (tangible).

Disruptive Innovation Theory
Clayton Christensen, basically propounded this theory in the year of 1997. Within the
ideology of Christensen, it is said that this is been considered as and innovation which basically
helps a business organisation in creating its own value networks through offering customers with
new products within the new markets of London. If it is talked about this theory then, company
or the company like made.com do not include existing markets for bringing the innovation or
while adopting it. Basically, theory has kept its focus on technological aspects and showed how
traditional approaches has reduced day by day within the existing business market in which
organisation like made.com was already operating the business. As propounder has showed
within the theory that new technology adoption and bringing the innovation with the help of
them are said to be totally different mainstream technologies. This is mentioned due to the the
value that is being created by new technology adoption helps made.com for any other company
to sustain within the market for a longer period of time. Considering the approach, it can easily
be said that innovation considering the new technology could help made.com in in enhancing the
overall performance level and offering customers with products and services exactly what they
are looking for. If it is critically analysed, then it can easily be said that the propounded theory is
not acceptable when it comes to focusing upon the traditional consumers. This is because they do
not want the product or the service to be changed considering the innovation based approach.
This thought was developed due to thoughts of them where they wants everything to be
purchased in the same cost it was before making any sort of modifications (Pound, 2013).
On the other hand, if it is talked about disruptive innovation theory, innovation takes
place within any company in the way of a process. In the early stages of product or process
development, goods developed using disruptive technology tend to serve only a niche market
which values their non-standard performance attributes. As per this theory, market disruption
occurs only when new yet inferior products developed as a result of disruptive technology
displace the mainstream goods irrespective of their superior performance.
Innovation history of company
Made.com was basically launched are formulated in the year of 2010, within The E-
Commerce industry, business organisation is is offering customers with both furniture and other
type of products through online. Within United Kingdom, most of rivals of this organisation are
not offering quality and this is being taken as the advantage where made.com was effectively

helping out local vendors to sell their furniture within London, United Kingdom. Along with
this, cost-cutting approaches being utilised by made.com in order to deliver furniture related
products to target customers. Since the business organisation is already dealing with in the
furniture industry and offering customers with quality products. On the other hand made.com
also consist with a manufacturing unit within the workstation, where the workers work bause on
the uncertainties. Along with this if it is talked about innovation history of the company then
company has kept its focus on innovation from starting which has helped them in in building
trust among people. NFC technology is being utilised by the company, which is given by
CloudTags. NFC chips are being installed in every single product that company the
manufactures. This has helped Made.com in becoming a well known brand within The E-
Commerce and retail industry which has given the chance to the company to gain many
competitive advantages (5 innovations propelling the furniture industry into the future, 2019).
Historical Development of Products and Services
If it is talked about past or historical development of different range of products and
services of made.com, company has captains focus on delivering a range of benefits to the
customers through taking in use of updated technology like NFC and more. Over the years the
technology that is being used or utilised by made.com has been helping organisation to retain the
value that they have presented amongst targeted customers. As the company is doing business
with in both offline and online shows it has given them the opportunity to take in use of the
technology in much more optimised manner. Over the years NFC technology has helped
company e in raising the value added services through offering all the details to the customer of
product and services offered by the company.
Basically, NFC scanning technology used by Made.com helps customers in gaining
knowledge about products leg when it was developed, on what date it but assembled and what
would has been utilised for making the product (Jurkovic and et. al., 2015). On the other hand it
is also beneficial for the company as well where, NFC technology offers the information to
managers as well of the the particular store. Here, modifications can be made within the furniture
as per the requirements of customers who has just scan the code of a product for many times
when he or she visited the store but did not purchased it. Considering this, it can easily be said
that made.com will directly e reach to new heights through offering customers with every single
thing based on their requirements and this will also raise their experiences as well towards the

services of the customer services offered by made.com. Along with this, this type of technology
also aid managers in giving the information related to the best employee, who has given extra
efforts for the company as employees also where NFC tags that can be scanned at the time of
delivering services to customers.
Future Development of Products and Services
Continuous improvement within the products and services is said to be an essential for a
business organisation. In the same way, made.com has also kept its focus on the same true
adopting innovation as vital most approach. Since, artificial intelligence can be considered as the
future of present world, made.com can also take in use of it. Using robots within the physical
store for developing robotic furniture are said to be the two things that can be done by made.com
in gaining competitive advantages in near future. With the help of this, customers might become
able to modify the product all the furniture based on their own requirements and the space utility
within their home. Let's think in example of a sofa which can be convert into a bed, table, chair,
or any other type of furniture. With the help of this comma customer (El-Refaie, 2013).
Application of theories
Diffusion of Innovation (DOI) Theory, show that bringing innovation within our
organisation is not an easy task to do because customers do not adopt the new technology e
within a short span. Here, it can be said that it requires a little time where customers basically
gets familiar first with the product or the technology which has been provided by the company
and then make a purchase or take in use of the technology. Same case for or made.com also took
place where the company used both NFC tags and the cloud tags but at initial level customers
has a fear of using the new and updated technology in the past but once they got familiar with
that organisation raised high profit because customers were getting loyalty from the brand that
they have used through offering them all the details related to the product from its manufacturing
date to what would is being utilised within the furniture. There are a number of factors within
this theory that impact the adoption rate of innovation in market, these are given underneath:
Relative Advantage: The technology that was used by made.com was being considered
as one of the important innovation that organisation brought in order to gain a competitive as
within the market of London. this also helped in identifying the best seller of the month because
at the time of serving to a customer employee can also scan the NFC tag.

on the other side if it is called about the future innovation then, customers will become
able to who built the the furniture which is robotic and turn into two or three other items
(Acharya, Schaefer and Zhang, 2015.).
Compatibility: Taking use of both NFC and cloud tags, organisation reached to a position
where employees would not required to do anything but to assist them where the the furniture is
being placed due to the tablet was already carrying all the information in regards to the product
that customers are looking for. On the other side, if it is talked about the future innovation that
made.com can bring is is going to be very helpful for the the people in near future because they
might customise the robotic furniture and turn it into anything what they are looking for a like
bed, chair, table, and many more.
Complexity: People in present world and in the past state influenced in regards to to the
technology which organisations brought for them and for performing the operations in a much
effective and efficient manner. For the future as well, curiosity among customers will rise due to
the product that they are going to use will give them high benefits of turning into do anything
whatever they want and whatever they feel like (Jurkovic and et. al., 2015). Therefore, it can
easily be said that the complexity for made.com is is not that big enough where organisation can
easily perform its operations to gain many range of competitive advantages. Through this,
sustainability and the strategic advancement can easily be seen within a business organisation
that is dealing in retail industry.
CONCLUSION
With the help of above mentioned report it can easily be concluded that, using innovation
within a company or any other business organisation can help up in gaining ample number of
competitive advantages. Along with this, it can be said that with the help of innovation company
could easily reach to to new heights where they could deliver high customer experience to
targeted consumers. On the other hand, using Diffusion of Innovation (DOI) along with the
Theory of Disruptive Innovation could help a company in managing all the innovations and aid
in enhancing overall profit margins of the company. Continuous innovative practice if followed
by the company e, it will directly help them in in sustaining within the competitive market and it
will also help organisation in building customer loyalty and interest as well of customers in
regards to the products and services offered by them.

REFERENCES
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Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
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