Innovation Theories Applied to Product Development: A Case Study

This report examines innovation theories, focusing on the diffusion of innovation, and their practical application in the context of product development. The report begins by defining innovation and its importance, particularly within the context of an organization. It then delves into the diffusion of innovation theory, detailing its origins, key concepts such as adaptation, and the characteristics of different adopter categories (innovators, early adopters, early majority, late majority, and laggards). The report also discusses factors influencing the adaptation process, including relative advantage, compatibility, complexity, triability, and observability. Furthermore, the report applies these theories to the historical development of TransferTravel.com, an online travel marketplace, illustrating how innovation has shaped its services and customer offerings. It concludes by discussing the limitations of the theory and the importance of adapting strategies to remain competitive in the market. The report also highlights the significance of innovation in the travel industry, specifically in providing last-minute deals and accommodation services. The report also considers the five-stage decision making process that includes awareness, interest, evaluation, trial, and adoption.

Innovation

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
1) Describe in detail innovation theories....................................................................................1
2) Apply innovation theory in historical development of one or more product basis.................4
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.........................................................................................................................................................9

INTRODUCTION
Innovation refer to the process of delivering and translating ideas or invention into a
product and services which generate value and for which the client will pay. It can be a new idea,
creative thoughts and imaginations in form of device and method. In context of an organization,
innovation refers to the process of make little change in existing products and services by using
new ideas and thoughts which add values and offer customers as per their requirement. This
assignment is related to TransferTarvel.com which is an travel organization and belongs from
tourism sector. It is an online marketplace and bring people with unwanted travel plans together
with those who searching for last minute deals. This firm offer travel and accommodation
services to its clients. This assignment will be discussed about the theories of innovation and
how they will be help in explaining the historical development of one or more products and
services and the possible future development pathways of the goods and services.
MAIN BODY
1) Describe in detail innovation theories.
Innovation is the process of translating an idea or beliefs into goods and services that
helps in creating value for that consumer will pay in proper way (Aghion, Van Reenen and
Zingales, 2013. ). For an organization it is very much crucial to bring innovation in their works
and activities so that they remain always relevant into market place and gain larger market share.
To bring innovation in organization, they have to apply various kinds of theories and practices
that guides to follow a definite path to reach at desirable outcomes in positive manner.
Diffusion of innovation theory:
Diffusion of innovation theory developed by E.M Rogers in year 1962 that is one of the
oldest theories in social science theories. It is basically originated with the motive of
communication to elaborate how, with time an idea or concept get momentum and diffusion for a
specific population or social system (Amit and Zott, 2012). The ultimate results of that
particular theory that people is a n important part of social system to get unique ideas or views,
behaviour and regarding product. According to that model adaptation refers that an individual
and organisation do something in different manner that previously implement in their
organisation in innovative way to draw attention of large no. of consumer base in positive way.
With the new idea or concept diffusion is possible for any organisation to lead in market in
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innovative way. Adaptation is an new idea or concept, behaviour or product that not
simultaneously happen in an organisation social system but with the help of it people who
concerned with it can be more apt to adopt innovation in better way. After conducting research it
is found that an individual who adopt innovation earlier in comparison to others have different
characteristics that helps in getting success (Berry and Berry, 2018.). When an organisation
adopt innovation that for a particular target audience that can be only possible after detailed
study about characteristics of the target population in better way so that products should be build
accordingly. To categories people on the basis of their characteristics five established should be
framed. In context of transfertravles.com organisation to remain always relevant in market they
bring new things and attributes that are rare in nature for organisation to deal in effective
manner. So it can be proved effective when organisation apply various theories and practices that
helps in follow a definite path. At time of promoting innovation on wide scale organisations
adopts various strategies that appeal in various product categories that are as follows:
Innovators:
Innovators are the people who first try to bring innovation in positive way in organisation
. That kind of individuals are venturesome in nature and also keenly interested to bring new ideas
into practice. People are risk takers and move towards to develop new ideas and concepts.
Early adopters:
Early adopters are people who represents opinion leaders and possess all kinds of
leadership roles and responsibilities with always deliberate to adopt change opportunities to
remain always relevant in market (Christensen, Raynor and McDonald, 2015.). Early adopters
are acknowledge about need to bring change and very much comfortable to adopt and implement
new ideas and concepts. They also uses various kinds of strategies that helps to appeal with
population included manuals and information sheets to implement innovative idea into practical
way. Early adopters do not need to convince for bringing changes they are very much conscious
for need of change in organisation. While promoting products and services organisation have to
evaluate that in which category they come so that they can choose proper strategy before come in
to market place so that they can bring right kind of output in organisational growth and
enhancement.
Early majority:
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Early majority are people who rarely in their life span adopts innovation and changes to
lead in market in positive manner. They are rare leaders and observe various evidences from that
innovation works exactly before they willing to adopt it in positive way. With help of success
stories and various evidences of innovation effectiveness.
Late majority:
People who come in that category are suspicious to adopt changes and until not adopt
changes tried by majority of people. Strategies should be build by observing that how many
people or population tried to innovate and grab it in positive manner.
Laggards:
People who come in that category are very much conservative and follow traditions and
not easily adopt changes that are very crucial for their organisation (Drucker, 2014.). Strategies
to appeal population in which includes statistics, appeals of fear and pressure from other groups.
All these stages or processes are very much crucial for an individual as well as organisation to
bring innovation in organisation. On other hand it also provides awareness to bring innovation,
important decisions and many more. It also depicts about initial use of innovation by testing it
and after that continue use of it (Edquist, 2013). There are some factors that are very much
important to influence adaptation process of innovation that are as follows:
Relative advantage:
In that factor of innovation consist of what kinds of innovation is better for an idea,
product or a program.
Compatibility:
That factor deliver about how much values, experiences and ideas consist with innovation
to give better product and services to the ultimate consumer.
Complexity:
In that aspect complexity associated with innovation while implementing it into
organisation in better way.
Triability:
In that aspect at which extent innovation can be tested and experiments should be
implemented before commitment come into existence.
Observability:
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In that factor consist of the tangible results that associated with innovation for an
organisation. There are some limitations also that faced by diffusion of innovation theory that are
as follows:
After implementing these strategies in proper way in Trasfertravels.com they able to bring
desirable outcomes by identifying gaps in positive way. It proved beneficial to gain competitive
advantage in marketplace by identifying innovation and their possibilities. They planned to
combine and give services to people who planned trip at last moment so that they also get
delighted experience.
The major limitation of theory that it includes only adopter categories but not originate into other
sectors that are very much important while taking significant decisions. It do not support towards
participatory approach for adaptation of public health program. It is more favourable with
adaptation of behaviours rather than focusing on cessation about it. So there are some drawbacks
that exist with that theory to remain always competitive into market place and bring uniqueness
in products and services as per consumer demand.
Many kinds of technologies for personal uses that are smart phones and fit bit kind of devices
bring high extent of diffusion with motive of bring innovation with rapid pace. That helps in
access the success and failure of strategy with learning challenges that face by early adopters in
competitive world.
There are some characteristics of innovation that helps to understand the particular behaviour
that demands in particular situation (Etzkowitz and Zhou, 2017.). In that context potential
adopters visualize innovation as an relative advantage with its compatibility with pre existing
system. Sometimes the complexity assigned with complexity and difficult to learn from the
observed effects in proper way. To implement that kinds of innovation organisation moves from
definite path that is a five step decision making process that is a series of communication
channels for a specific time period in a social system. In their five stage process consist of
Awareness, interest, evaluation, trial and adaptation that are integral part of social system for that
innovation theory. With the help of evaluation organisation or an individual can easily reject at
any during or after the process of adoption (Freeman, 2013). It can be diffuse after analyse
factors that are inefficient and technically inefficient innovation can be diffuse that hinders
technically efficiency to catch right kind of innovation at right time. In the later stages of
Diffusion of innovation that Rogers change their working pattern with five stages of knowledge,
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decision, implementation, persuasion and confirmation to get updated as per the requirement. In
that condition organisation have to evaluate various factors to deal in effective manner to remain
always competitive in marketplace. For an organisation while implementing innovation
organisation have to understand the characteristics of the innovation and strategies that proved
appropriate to bring effective results in organisational process. In context of Trasfertravels.com
by bringing innovation is to provide travel and tour packages to people who want packages and
services at last moment. So respective organisation planned and coordinate each and every
activity accordingly.
2) Apply innovation theory in historical development of one or more product basis.
Innovation theories and practices are very much important for an organisation to bring
diffusion innovation in the organisation. To implement in best manner after evaluating each and
every aspect that can be possible after analysing current practices and plans for accomplishing
effective diffusion to understand in best manner Rogers' theory in various contexts. To
understand Academic e books for the innovation diffusion to developing effective marketing and
strategies of innovation. In context of Transfertravel.com they are very well known brand name
in sector of travel and tourism to give best services under one roof to give delighted experience
to consumer base. For that organisation focus to bring diffusion innovation that are very much
important for an individual and firm to remain always competent and get loyalty of consumers in
positive manner. In historical development use of innovation theory which is diffusion
innovation by bringing unexpected changes in giving attributes to consumers. In olden days
consumers have to consult with various dealers and service providers to give overall experience
to the ultimate consumers (Govindarajan and Euchner, 2012.). But with help of diffusion
innovation organisation can be able to give lot of services under one roof. That proved beneficial
to build brand image in front of consumers and many dealers associated under one umbrella give
them security and brand association that serves self interest of both consumers and services
providers in better way. Diffusion innovation helps to make that idea successful by accumulating
all resources and dealers. With diffusion innovation which is an important research subject of
analysis that studied by ranges of disciplines in which includes psychological, sociology and
consumer behaviour with many more. While implementing diffusion theory of innovation
several gaps exist in practice that aims to address in proper way. That study is based on main
ideas that are adaptation of innovation, opinion leadership and market mavenship. Major
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characteristics of an innovation has found effect on rate of innovation adaptation and network to
users for innovation diffusion. To bring all major service providers organisation have to
primarily access the needs and wants of their consumers with marketing trends that are very
much crucial for organisational growth and enhancement should be properly analysed. After that
organisation find out the prevailing trends in market that give rise in market potentiality in better
way by comparing with fierce competitors (Jensen and et. al., 2016.). Diffusion of innovation
are very much important as an business tool to convince levels of consumers to associate with
particular product and services. After implementing services that are providing all travel and
tourism services under one roof that helps to engage consumer with main service provider to get
loyalty from them in proper way. There are some major attributes that helps in taking major
decisions while applying diffusion of innovation theory that are as follows:
Knowledge:
As per the Rogers knowledge is foremost touch point to bring diffusion innovation.
Knowledge is very much important to give best experience about new idea , product and services
in the first experience. In past transfertravel.com to bring all products and services under one
roof for that knowledge about consumers needs should be evaluated primarily. In that particular
phrase organisation needed word out, viral and other new products and services.
Persuasion:
In that process once a consumer hears about the product and services that launch by an
organisation then the main aim of Transfertravel.com is to persuade their consumers. That
persuasion helps to consumers in taking right kind of decision related to buying.
Transfertravel.com persuade consumers that they are deliver all kinds of services related to travel
and tourism under one roof so that they can convey right message up to them. To give proper
knowledge and information to consumer base to enhance sales of organisation and to build
loyalty that are crucial.
Decision:
In that phrase of Diffusion innovation, in which consumer takes important decisions
regarding buying or not that particular product. In that step consumers totally acknowledge about
brand name, their features that ultimately helps in taking crucial decision. As per the view of
Rogers it is very much difficult to read or evaluate consumers needs and wants with direction in
which consumers want more improvements (Owen and et. al., 2013.). To reach at desirable
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goals and objectives advertisement and outreach one of best strategy. But at last Rogers find out
that decision of a consumer is very irrational in nature thus taking decision one of most difficult
step for looking to sell a product and services.
Implementation:
After implementing the innovative services in market consumer have to make purchase
decisions and in that aspect organisation also have to persuade their consumers to take
favourable buying decision (Patti, Yanes and Siuzdak, 2012.). Organisation have to give proper
knowledge and information about usefulness of products and have to give proper education to
maximise engagement experience. The major challenge before Transfertravel.com is to provide
right kind of knowledge and information after post selling environment. Also organisation have
to giving information about usage of that services. Such as Transfertravels.com elaborates
advantage of getting kinds of services under one roof such as delighted experience and discount
offers many more are very much crucial for an individual. That all information helps to
consumers in taking right kind of decision in case of any doubt.
Confirmation:
It is the last and shortest stage in context of innovation diffusion to end up process in
positive way. In that consumer confirms with their family and friends and other sites by
comparing services of their competitors so that they remain always in profitable condition. It is
very much crucial for organisation to consumers repeat their services by providing after sale
services in better way to get loyalty from consumers. In context of Transfertravel.com they focus
on giving overall best services to their ultimate consumer to remain enough competitive in
market place.
Future innovation:
travel and tourism industry is one of the most technologically advance and taste with
preferences of consumers also changes in rapid manner. In context of Transfertravel.com they
are very much conscious to bring technological advancement in their organisation to remain
always relevant in market in proper way ( Tidd and Bessant, 2018. ). With the help of diffusion
innovation organisation aimed to bring augmented and virtual reality that are very much
important for an organisation to remain always relevant to give best experience to consumer base
in positive manner. In recent time AR and VR are very much popular in travel and tourism
industry by setting trend in market. That kind of technology proved fruitful for content marketing
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as well as to give delighted experience to consumer base in positive way. In airlines industry
which is major part of Hospitality industry used Virtual reality to showcase cabins to travellers in
advance to enhance the sales of tickets and ancillary services to enhance sales of organisation. In
context of Transfer travels.com that uses augmented and virtual reality to connect with
consumers in virtual manner by accessing their needs and wants in proper way so that
potentiality should be created in front of them. To implement all these innovations in successful
manner organisation have uses diffusive innovation that gives indication about need of particular
innovation in marketplace. That kind of diffusive innovation can be applied after analysing needs
and wants of consumers base such as rising demands of consumers in positive way for that
organisation have to think about better solutions of concerning problems which they are facing
(Weisburd and Braga, 2019). To bring that innovation Diffusive innovation helps to build
awareness in organisation that about relevant factors at present time to give delighted experience
to consumer base. So to remain always competitive in marketplace organisation have to bring
harmony in works and products that not only proved beneficial for organisational growth but also
for individual development in which consumers and employees consist in it. All kinds of
innovation and changes are very much essential for economic growth and stability to remain
always in market. There are majorly two factors for VR diffusion that are mass media and more
personal networks to bring awareness in people. It can be possible by releasing and developing
the VR headsets, apps with viewers with content in life cycle instead of bringing improvements
should be made.
It is very much obligatory to understand the need of adoption as looking for early
adopters to bring necessary improvement in works and procedures to remain always relevant into
marketplace (Wolin, 2016). Hence it has been summarised that innovation in future world and in
past is very much important to remain always competitive enough in marketplace by evaluating
needs and wants of consumers and by conducting research and development in proper way so
that proper needs should be accessed by marketers and proper actions should be taken in
industry.
CONCLUSION
From the above report it has been summarised that organisation have to remain always
competitive in marketplace organisation have to bring innovations time to time. Innovation not
only give organisational advancement but also give consumer satisfaction. Diffusion innovation
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are very much important for an organisation to accessing the future demands of industry and
consumers that are crucial to remain competitive enough in fierce rivalry world. Diffusion
innovation helps to not only remain relevant in past but also planned for future growth.
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REFERENCES
Books & Journals:
Aghion, P., Van Reenen, J. and Zingales, L., 2013. Innovation and institutional
ownership. American economic review. 103(1). pp.277-304.
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan
Management Review. 53(3). pp.41-49.
Berry, F. S. and Berry, W. D., 2018. Innovation and Diusion Models in Policy Research.
In Theories of the policy process. (pp. 263-308). Routledge.
Christensen, C. M., Raynor, M. E. and McDonald, R., 2015. What is disruptive
innovation. Harvard Business Review. 93(12). pp.44-53.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Edquist, C., 2013. Systems of innovation: technologies, institutions and organizations.
Routledge.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Freeman, C., 2013. Economics of industrial innovation. Routledge.
Govindarajan, V. and Euchner, J., 2012. Reverse innovation. Research-Technology
Management. 55(6). pp.13-17.
Jensen, M. B., and et. al., 2016. Forms of knowledge and modes of innovation. The learning
economy and the economics of hope. pp.155-182.
Owen, R. J., and et. al., 2013. Responsible innovation (Vol. 104). Chichester: Wiley.
Patti, G. J., Yanes, O. and Siuzdak, G., 2012. Innovation: Metabolomics: the apogee of the omics
trilogy. Nature reviews Molecular cell biology. 13(4). p.263.
Tidd, J. and Bessant, J. R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Weisburd, D. and Braga, A. A. eds., 2019. Police innovation: Contrasting perspectives.
Cambridge University Press.
Wolin, S. S., 2016. Politics and Vision: Continuity and Innovation in Western Political Thought-
Expanded Edition(Vol. 23). Princeton University Press.
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