Critical Issues in Business Management: Instagram's Innovation Report

This report provides a comprehensive analysis of Instagram's innovation and its impact on the social media industry. It begins with an introduction to critical business issues and then delves into an assessment of Instagram's innovative nature, examining how it has transformed the way users share photos and videos. The report identifies the key drivers behind Instagram's innovation, including financial pressures, increased competition, and changing market demands. It also critically evaluates the factors that enabled and hindered Instagram's innovation, such as individual and organizational factors. Furthermore, the report assesses the extent to which Instagram represents a disruptive innovation, exploring its strategic approaches and the theory of disruptive innovation. The conclusion summarizes the key findings and highlights the significance of Instagram's innovation in the evolving social media landscape.

Critical Issues In Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................2
ASSESSMENT................................................................................................................................3
5.1Analysis & discussion of the nature of innovation brought about by Instagram in the social
media industry.............................................................................................................................3
5.2 Identification and analysis of the main drivers that encouraged Instagram to innovate in
this industry ................................................................................................................................5
5.3 Critical evaluation of the factors which enabled and hindered Instagram to innovate within
social media industry...................................................................................................................5
5.4 Evaluation of the extent to which Instagram is a disruptive innovation in the industry ......7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
There are certain critical issues which affect the working environment of an enterprise.
To achieve the predetermined objectives, it is required to meet the changes of business
environment. In this report, critical issues have been mentioned in detail and their impact over
business enterprises is also discussed. When a business enterprise starts its business operations,
they need to analyse the market and its trend (Spenceley, 2012). In this report, critical issues
faced by Instagram have been mentioned. Instagram is a social networking site or application
which allows its users to share their memories through photos and videos with the world.
Instagram has been created by Kevin Systrom and Mike Krieger. It was launched in October
2010 and earlier it was only available on iOS platform but later on it was also launched in
Android in 2012. There are many certain critical issues which were faced by Instagram and its
management and innovation team during business operation.

ASSESSMENT
5.1Analysis & discussion of the nature of innovation brought about by Instagram in the social
media industry
Earlier, social media was limited up to sharing photos and updating thoughts. Now a days
Users using social media increased their requirements. They require to experience a more
realistic world inside their smartphones(Weiss, 2014). Social networking sites like Facebook and
Twitter have become a bit complex for the users as it has many fake users But later on, in year
2010 Kevin Systrom and Mike Krieger launched their social networking app Instagram. It
reduced the complexity of users to access their accounts. Users now can easily upload their
photos as well as their videos also. There are certain special features in Instagram like a user can
convert his public profile into a private profile which provides security to the users so that their
private data which they want to share with their followers only, cannot get publicly
accessed(Krutz and Vines, 2010). Social media allows its users to reach other users easily so that
they can communicate and can easily share their views. In social media industry, there are many
opportunities but there are some threats also. There are certain steps which are required to be
taken by innovation team of Instagram : Customer Requirement: Instagram has developed itself as the user friendly. A user
requires fast and easy access for their accounts further they want to share their videos and
photos. Instagram is a platform where the user can upload his photos and videos as well
as they can make live video which streams over the Instagram application (Romero,
2014).
 Accurate services: Customer satisfaction is the main goal of the entity. If cited entity will
provide accurate product and services to its customers then they will be satisfied.
Instagram provides services which are required by its users and it keeps on updating such
services so that customers can get better and updated services. Instagram has analysed the
trend and provided its services to users in accordance with that trend. Further, Instagram
has identified and sustained competitive advantage with other social networking sites.
Instagram is focused towards the innovation through the following points: Technology Push: Technology push can be described as the part of a business strategy or
a plan. In it, the research and development is made on technological aspects so that

services with better technology can be provided to the customers or users (Trkman,
2010).
 Market Pull: Market pull is different from the marketing push. Market pull can be
considered as the requirement or need for new product and services. These requirements
directly come from the market place. Need and requirements are simply identified
through potential customers. Instagram has developed and made innovation in the
services as per the requirement of the market place.
Types of innovation: Product: Instagram has made innovation in its services. Management has made certain
innovation so that users can experience something new in the social media (Malhotra and
Temponi, 2010). Process: Instagram has maintained a unique process to provide services to its users.
Instagram gives equal response to its business profile users and public profile users. It has
certain feedback process through which the bugs in any application can be removed
easily.
 Strategy : Instagram and its management has decided to provide better and unique
services to its users hence for this purpose they had made certain strategies to abolish
current trend of other social networking sites and to develop a new trend with uniqueness.
5.2 Identification and analysis of the main drivers that encouraged Instagram to innovate in this
industry
There are certain factors which conduct the activities for innovation. Due to these factors
or drivers, an entity is required to make innovation in products and services. Some of these
drivers are mentioned below: Financial pressure to reduce cost: The requirements to made innovation in the products
and services may also generate to reduce cost so that margin can be more. Further,
innovation can also be made to increase operational efficiency of the organization. If the
efficiency of an enterprise increases then this will increase its productivity level. Hence,
they can gain more in less efforts (Ajmal, Helo and Kekäle, 2010). Increased level of competition: Due to high competition, cited entity is required to make
innovation in its products. As in purely competitive environment, providing innovative
products and services to the customers can be a method to capture the targeted market.

Social media industry is highly competitive. Every other social media site is launching
some unique and interesting features so Instagram has made some changes in its
application to provide updated facility to its users. It has started many other features like
Boomerang so that it can easily overtake its rivals (DeTienne, 2010).Demographic,
Social and Market changes: Demographic factors and social factors make a tremendous
impact on the cited entity. Demographic factors like age group, ethnicity, religion and
culture etc. needs to be handled very carefully. Users using application of Instagram,
demands certain services which social media needs give hence they Instagram has made
certain innovative steps to fulfil their requirements.
 Rising customer expectations regarding quality: Customer’s demands better quality in
products irrelevance of the type of industry. Weather it is service industry or a
manufacturing industry, customers requires products with quality. Hence, to deliver
better quality to its users Instagram has made certain innovations in its products which
consist of better quality (Yeoh and Koronios, 2010)
5.3 Critical evaluation of the factors which enabled and hindered Instagram to innovate within
social media industry.
There are various factors which act as a hurdle for development and innovations. As
Instagram needs to make innovations in its products hence they need to deal in a positive way
with such factors to deliver its products and services to its users in an innovative way(Doz,
2011). Some of the factors which acts as an obstacle in development and innovation are
mentioned below :
 Individual Factors : Some of the individual factors which acts as a hurdle for innovation
to be made by Instagram are as follows :
◦ Trainning : Better training to make innovation can lead to successful delivery of
services to the users. But if employees are not trained enough to make innovations in
products and services then this will affect the innovations.
◦ Job Rotation : Job rotation can be considered as movement of work force to do
several different task at different point of time. In such technique employees can
develop their working skills to perform different task. But if job rotation is not
operated in an efficient way then it may create certain unwanted situations like

burden or stress on employees (Oliveira and Martins, 2010). This may reduce
innovation level of Instagram.
 Project : In projects there are certain factors which may create some confusing situations
which can lead to several conflicts in task of innovations. The employees who are
responsible to do innovations requires to perform well. For the achievement of goals and
targets of Instagram its innovation team needs to command in an effective and efficient
way.
◦ There are certain rule regarding management needs be followed properly so that
organisational structure of Instagram can work efficiently and it can yield positive
results.
◦ Openness to new ideas is necessary to make new and unique changes in the existing
products and services. If innovation team of Instagram community ignores ideas of
others then it may result in such innovation which may not be considered as fruitful
(Spenceley, 2012).
Some factors which enables Innovation are mentioned below :
 Organisation : There are some factors which are related with the organisational structure
of Instagram which may create hurdle in innovatory steps. Such factors are mentioned
below :
◦ Making survey for environmental scanning and after that analysis of such
environmental factors thoroughly may result in better and fruitful innovations.
◦ Communication across the boundaries of an entity enables better innovations.
Through which an entity can get better ideas from various communities.
◦ Identification of problems and analysing them to find solution for such problems.
Enables Instagram to make better innovative steps which can cultivate successful
outputs (Krutz and Vines, 2010).
◦ Targeting customers for questioning can remove their problems which will
ultimately results in better and innovative products.
 There are some environmental factors which enables innovations. Instagram needs to
manage such factors so as to manage innovations, these factors are mentioned below :
◦ Level of competition in the business environment decides the quantum of
innovations(Weiss, 2014).

◦ Further the extent of engagement of customers and other stakeholder also decides the
level of innovation.
5.4 Evaluation of the extent to which Instagram is a disruptive innovation in the industry
The disruptive innovation theory is a very powerful way to grow any enterprise through
the methods of innovations. Instagram has applied disruptive innovation theory and its methods
for growing its enterprise by making innovations in its products and services. There are certain
disadvantages of this theory as methods and concepts of this theory is this theory changes the
whole structure of competitive market. Instagram needs make several strategic approaches for
different innovations(What Is Disruptive Innovation?. 2015.). An entity which operates in a
market which usually shifts is not made for disruptive innovation theory(Romero, 2014). If
Instagram and its management team fails to imply the results of several research and
developments then it may not result in effective innovation. Theory of disruptive innovation was
initially innovated by Clayton Christensen in his book “The Innovator's Dilemma”. Instagram
has developed new category of customers or users through its innovations. The innovation team
implement new technologies and used to harness such technological aspects. Contrasting of
disruptive innovation along with sustaining innovation has been done by Instagram (Trkman,
2010). As per the needs and requirements of users Instagram has installed some tools like
Hashtag in its application so that users can connect their files or uploads with the uploads of
others. There are two key elements of disruptive innovation which are mentioned below :
 Improvement of incumbents : An incumbent results in betterment or innovation of
products for a particular area. Usually they improve products in certain established
areas.
 Pace of sustaining innovations : An entity whose product and services are squarely
maintained in current customer's needs and requirements, most probably will find the
fact regarding what those customers are able to utilize in future. Instagram has
maintained sustainability in the growth of its products and services. This allows
disruptive innovation to Instagram in its various services(Malhotra and Temponi,
2010).
CONCLUSION
The above mentioned facts explains that why users can demands better services and
products from the entities. Further this report also discuss certain critical issues in management

of business enterprise. Through report it can concluded that how Instagram and its innovation
team has reacted towards the demand of its users and it also includes types of changes and new
features added by it in its application to bring innovation in its products and services.
REFERENCES
Books and Journal
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Krutz, R.L and Vines, R.D., 2010. Cloud security: A comprehensive guide to secure cloud
computing. Wiley Publishing.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Romero, C., 2014. Handbook of critical issues in goal programming. Elsevier.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp.125-134.
Malhotra, R and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1). pp.28-37.

Ajmal, M., Helo, P and Kekäle, T., 2010. Critical factors for knowledge management in project
business. Journal of knowledge management. 14(1). pp.156-168.
DeTienne, D.R., 2010. Entrepreneurial exit as a critical component of the entrepreneurial
process: Theoretical development. Journal of Business Venturing. 25(2). pp.203-215.
Yeoh, W and Koronios, A., 2010. Critical success factors for business intelligence systems.
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Doz, Y., 2011. Qualitative research for international business. Journal of International Business
Studies. 42(5). pp.582-590.
Oliveira, T and Martins, M.F., 2010. Understanding e-business adoption across industries in
European countries. Industrial Management & Data Systems. 110(9). pp.1337-1354.
Online
What Is Disruptive Innovation?. 2015. [online]. Available through
:<https://hbr.org/2015/12/what-is-disruptive-innovation>. Accessed on [21st February
2017 ]