Managing Innovation Report: Funding Circle, Innovation Theory Analysis

This report provides a comprehensive analysis of innovation theories, specifically focusing on disruptive innovation and diffusion of innovation, and their application within the context of Funding Circle, a peer-to-peer lending platform. The report begins with an introduction to innovation and its imp...Read More

Managing Innovation

Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................5
Disruptive Innovation Theory..........................................................................................................5
Principals of Disruptive Innovation Theory...........................................................................5
Process of theory....................................................................................................................5
Limitation...............................................................................................................................6
Diffusion of innovation theory.........................................................................................................6
Importance to the business.....................................................................................................7
Drawbacks of theory...............................................................................................................7
Funding circle..................................................................................................................................8
History....................................................................................................................................8
The business model of funding circle.....................................................................................9
Application of Disruptive Innovation Theory In future Development context....................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is something which is clearly related to the development of respective ideas at
the particular level of goods and services in creating more respective level of values. There is
application of innovation helps in deliberateness the different level of information along with
impersonation of imagination into ideas and respective initiative. Innovation in converted as the
greater level value form different resources which have clear inclusions of the generational and
level.
In the business, innovation have the major consideration to have developed proper e
further manifestations. This will be helpful in order to have composition of respective needs and
the expectation ti have the further development of customers. There is proper level of importance
in theories of innovation which is such as the disruptive innovation theory and Diffusion of
innovation theory.
The former innovation theory has the clear level in providence over the larger company’s
explanation over the smaller one (Vaughan and Daverio, 2016). This is better understanding of
disruptive innovation understanding. On the other hand, the latter one has the relation to adopting
of innovation with proper implementation of action which will influence the respective
individual choices. In this report, there will clear discussion on the application of disruptive
innovation theory on the brew dog company which will be helpful in understanding as a
disruptive thinker to have effective formation of consumer behaviors and marketing strategy.

MAIN BODY
Disruptive Innovation Theory
This theory has the clear references to the developmental of technology which effects the
business in more differentiated and noninvasive way (Fahmi, M.Y., 2020). The development of
new technology in more convenient way make dramatic changes in different structure and
function of business. This theory in applicable to the company in more integrated way which will
be helpful in growing easy plans. With helps of these plans proper growth of an effective
potential which behave the need for enough desires to be developed.
Principals of Disruptive Innovation Theory
The first and most basic principles of the innovation theory is to have small thinks. As it
has been stated by the Peter Ducker, the information which is being effective will have the
startling of statement which is small. So, they are the process which cannot be grandiose.
The next principle in to have the more turning out to be crappy in order to have
achievement of respective targets in nor critical manner. This means to have targeted the
customer who are considered to be potentials and being overs served with existing product in the
market.
This innovation is being considered as the perfect level of combinations as there are a
good deal of considerateness of through which is required to be well designed behind the bars in
order to have the developmental of effective innovation int the business (Iyanda, O.A., 2016)
This innovation is considered as perfect level of combinations of the various level of
thought as more level of passion and perseverance in being required in the combination in order
to make the perfectly right. There is need for the major level of amount in order to have thinking
over different ideas in order to turn it out for effective innovation.
The last level of principle which have level of applicability of the 70/20/10 which make the
overall aske of the business in more differentiae way to make the origination more level f
invasions. this is having the clear tendency to make the customer haves best serving, along with
applying employees and earn the increase level of compositive advantages in more.
Process of theory
The model of disruptive innovations will have the clear highlighting of the changing
trends along with evaluation customer preferences along with their respective demand and needs
. This is helpful in increasing the passements of company which have the involvement of the

path breaking and novel terms of the ideation of development and growth of firm (Sampere,
Bienenstock and Zuckerman, 2016).
This will have conclusion is shifts in demands which is trajectory for the technological
development. The development new meet and products along with panned services which is
properly designed and executed for changing needs and demand have new level of features and
value attributes which is consider to be me far better from the existing technology of the products
and serves.
Disruptions the commonization’s always the process will go hand in hands so that’s the
company can have the process of overshoot which win and go furthers in longer run
perspectives. On the other hand, the either accommodation will have stealing the profits or have
losing the market share with high level of disruption.
Limitation
This theory is considered to be separate strategy for company which is high level of
successful in the market. The strategy along with process needs to have proper level of focusing
on the level of unexpected issues along with opportunities and success. In next to that’s the
intended to have focus over understanding what is needed to be worked and what doesn’t.
In order to have the figuring out the level of futurize markets along with what is the real need is
very difficult to identify as judging and figuring out which reality in failure of the innovation in
respective market (Møller,2017).
In order to have the addressing of new markets which is higher end and low end there is
more level of huge profits which cannot be attained at very fast level. As the venture capitalist
tends to get very impatient for three business developments which have the deleverage of the
profits in very fast manner.
Diffusion of innovation theory
This theory has the building on the premises that’s the any level of commercial consumers
which are existing in marketplaces which have the different types of needs and preferences. this
have the clear versioning of enthusiasms or perception in regards to particular product along with
raising it out. This theory has in relations of comember to put up into respond of identifying the
innovation trends by placing different consumers in defernite trends. this is also so called
innovative products which in wave of costumer acceptances which is stating the early stage

innovators towards the early adopter, early majority along with late majorly and laggards at the
ends.
Importance to the business
This theory is considered to be important as for the business in order to have the tool which is
convenient to address different level of consumers to have engaging the product and services.
The important towards the business to have clear expansion over level of decision making
(Nagy, Schuessler and Dubinsky, 2016).
Knowledge- this is initial point where knowledge have potentiality over the identifyee the
consumer experiences along with perception and needs in order to have accretions and
continuation of knowledge. The company wants have the word out in regards to product.
Persuasion- the company have the development of goals which is helpful after accomplishing
different knowledges to be came intrigued regards the products so the consumer has
perseverance.
Decision- this is the phase where consumer have to make appropriate level of decisions as this is
considered to be important point where company is needed proper allaying the ways the direction
is heading. The development of various ads and outreach will be considered as best strategy for
consumer to make the decision which is irrational. Hence the phase of decision masking is
considered o most difficult ones so the firm have to have look into sell of product.
Implementation- after the purchasing of product, the aim task of company is to have
relativeness and usefulness of product to be proofed to costumer. this is also helpful in increasing
the consumer in experiences for product engagements of the product and to be refund. The good
news is the consumer wants to keep the product, and wants to learn more so it's used correctly,
so it's up to the company to up the ante on access to good product and data information, and
make sure the customer gets it.
Confirmation- this is last and short phase of diffusion of innovation theory where consumer
wants to have the proper confirmation which can be usually form the friends, family with help of
internet. this is considered to be few levels of opportunities and to have proper garnisheeing in
order to repeat customers after the poste sale secrets.
Drawbacks of theory
These theories have the potential level of downsides along with limitative, as they are such as –

An uphill climb where the larges consumer are nit the great level of risk takes which steer them
to have buying of new products and services (Nagy, Schuessler and Dubinsky, 2016). There is
more level of failure in more way of bringing ideas as the theory provides the level of road map.
Cultural limitations as the companies are more level of unveiling the in level of innovations
which often doesn’t have the consideration o culture into it. This is resets in the lacks more
resection for products in market. So, the company should be careful in regarded to have the
proper consideration and carefulness about the development of cultures norms while making the
innovation.
The numbered is more against you as per the suggestion of data where the company have the
plans’ level of early and late majority along with heavy dose of laggards. So, it is important
along with early adopters in order to push products to have widespread level of
commercialization’s, this isn't necessarily Rogers' fault - it's just a fact of life that there are more
risk-averse consumers than risk-taking consumers.
Funding circle
This is peer to per lending firms which have proper allowance to company in order to lend the
money directly to the different small and medium business enterprises. Thorough this process,
there is exchanges of businesses with accessing the low cost for financing as comparative to
banks (Vesti and et.al., 2017). The public turned out to be effective lenders along with effective
returning of capital.
The company have the creditworthiness business which is looking into the finance level
opportunities with people and different organizations as the platform is considered to be more
level efficient along with big transparent that traditional lending for development of effective
business chain.
History
In year 2010 the loan for small business UK had dried up due to banks’ struggle to get back on
track in the face of the financial crisis. As such, many of the companies were seeking alternative
sources of financing. At that time the firm has been introduced to solve the struggle in markets
by Samir Desai, a former management consultant and private equity investor; Andrew Mullinger,
a former risk manager; and James Meekings, a former management consultant.
The firm have proper analyzing of the information from cuticle sources to the small risky firms.
the company have the consumptive advantages to have the customized level of risk calculations

to have proper determination of the loan to the investing. At present scenario company have the
bans which is referring the client’s and its platform is being hosted over 48000 investors.
The business model of funding circle
Customer segments
The firm is using multi-dimensional model with two interdepends customer segment which is
necessary to operate.
Borrowers- the small firm who have the demand of the secured and unsecured loans in order to
develop the property.
Investors- inclusion of wide ranges of entities which have clear inclusion the corporation,
universities along with government agencies.
Value proposition – as the consideration of have five value proposition which are accessibility,
convivences, performances and brand /statuses. The firm touts strong performance, claiming
investors can earn an estimated return of 7.3% a year.
Customer relationship
The firm have the primary level of self-services along with automated natures as the customer
are able to have proper utilizations o the websites while having limited level of interactions with
employees (Reinhardt and Gurtner, 2018). The investor has auto bid fester to have allowances to
invest in qualified firm in automatic manner.
Key activity
Key partners
The partner is such as referral partners who are considered to be intermediaries in order to have
wish to connect with clients.
Brand partners who have caller providences of commercials level of goods and services to
small firm in order to help business growth
The franchise partner in order to seek better level of alternatives for speeding up the level of
growth.
Key resources
The company have the its proprietary software platform that uses a risk calculation technology
to specify investor loan amounts.

Application of Disruptive Innovation Theory In future Development context
This part of the report is required to apply the theory of disruptive innovation of a new
innovative idea for Funding Cycle. From discussion about the company it is clear that company
works and ensures that people who are willing to expand their business and invest in their
business can get loan from directly to public lenders (Vesti and et.al., 2017). In this investors and
borrowers meet through funding cycle and borrowers can get loan at a rate less than financial
organisations and banks.
They are working as mediator between businesses and investors and they are working
quite efficiently. In this innovation which they can develop an application software as a platform
at which both investors and businesses can upload their details. This is a more open platform and
benefits which both the parties will get are that now they are open to each other. At present what
funding Circle is doing is deciding and playing important role in selecting the businesses which
can be provided loan and financial support.
Through this businesses and investors will be able to know to whom they are giving their
money and businesses will be able to know who have invested in their business. This gives rise
to question what will be role of Funding Circle in this. The role of Funding circle in this is that
they can present business and investors as anonymous parties and both are only able to know the
business details of each other (Vecchiato, 2017). This is more for the benefit of investors,
because they should be having knowledge of the business in which they are investing. This will
make all the process of Funding Circle more transparent and more people will be able to invest
through Funding Circle with more confidence than earlier.
Through its transparency Funding Circle will be able to attract more clients towards
itself. This way this innovation in their business will be very beneficial for both Funding Circle
and the investors. Businesses also have benefits as they will be more aware of their investors’
expectation. This generates a sense of liability for people who are investing in their business and
the process of collecting money from businesses will become easy for Funding Circle.
One more innovation that Funding Circle can adopt is that it can create a platform where
people who want to invest in the businesses can look for the type of business in which they want
to invest. This also creates transparency for the investors and they can invest as per their
feasibility (Christensen and et.al., 2016). When this innovation are analysed on the basis of
disruptive theory, both these innovations can be considered as disruptive innovation. This is

quite possible that when company brings innovation of such nature that transparency is improved
and investors are able to have more knowledge about the businesses. This will reduce their
dependency on the Funding Circle and will be more dependent on their taste and priority. In this
their anonymous identity will also not affect the business of Funding Circle.
This will become first choice of people to connect with Funding Circle and their
traditional and general method of connecting with Funding Circle. This means that this
innovation of Funding Circle can be considered as Disruptive innovation. Through this
application they will be able to connect with more people as internet is an open platform and
connect with the people all over world (Atz and Bholat, 2016). This can increase the client base
of the Funding Circle more easily and people can trust more easily on the Funding Circle, this is
because the platform is open to them and they have all the details of their investment and
businesses which are using their funds.
Through this innovation company can also promote itself can highlight their speciality in
transparency to attract more people towards the company. Application software developed by the
can also be used by them as a place of promotion. There are various other benefits of such
application such as company can communicate all its policies and procedures which investors
and businesses are required to follow and which is important for them to know in order to have a
proper business relationship.
Application also allows company to communicate its schemes and offers for investors
and businesses. These are platforms which are able to communicate their offers to general public.
Through efficient development of application and software they can also enable their investors
and businesses to operate through the application. This is a very effective and productive manner
of work. Increasing popularity of such methods of work also clarify that this is a disruptive
innovation and have capability to ensure and reduce the popularity and usability of the old and
traditional methods of the work (Pinto and Castor, 2017). Technology and increasing use of
internet also gives indication that this innovation will be a success of Funding Circle.

CONCLUSION
On the basis of this report it can be concluded that innovation are very important for growth
and to increase the life cycle of the organisation it is very important that organisations keep
bringing innovation. Innovation and their nature depend on the type of organisations. This report
included discussion over innovation and disruptive innovation theory and as per discussion it can
be said that this theory is the one in which innovation in the organisation disrupt and close
markets for prior products of the organisations. Later Funding Circle which is a peer to peer
financing company have been discussed. This company works as mediator between businesses
and investors. Importance of innovation for business was discussed in this report along some
new ideas that Funding Circle can adopt in their company to make its working more efficient and
give better and improved services to its clients.

REFERENCES
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Nagy, D., Schuessler, J. and Dubinsky, A., 2016. Defining and identifying disruptive
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