BUS020X618S - Managing Innovation: In-depth Report on TerraCycle

This report provides an in-depth analysis of TerraCycle, focusing on its innovative approach to waste management and recycling. The study begins with an introduction to the concept of innovation, discussing different innovation theories such as the Innovation Matrix, business model innovation, and the diffusion of innovations. It then applies these theories to TerraCycle, examining the company's historical development, current business model, and future innovation pathways. The report highlights how TerraCycle has implemented innovative strategies to eliminate waste and promote environmental sustainability. The analysis includes discussions on TerraCycle's partnerships, recycling processes, and the impact of its initiatives on the market. The report also explores the historical context of innovation and the role of marketing innovation in driving business success. The conclusion summarizes the key findings and offers insights into TerraCycle's potential for future growth and its contribution to the recycling industry.

Running head: MANAGING INNOVATION
MANAGING INNOVATION
Name of the student
Name of the university
Author note

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Table of contents
Introduction......................................................................................................................................3
Discussion of innovation theory......................................................................................................3
Application of TerraCycle...............................................................................................................9
Intro of TerraCycle......................................................................................................................9
Historical discussion of innovation.............................................................................................9
Future innovation pathway........................................................................................................10
Business model discussion........................................................................................................13
Conclusion.....................................................................................................................................14
Reference list and bibliography.....................................................................................................15

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Introduction
The term innovation indicates the process in which the ideas are being introduced by
creating the values (Jensen et al. 2016). In the other words, it can be said that by replicating the
economic cost, the process of innovation helps to satisfy the needs of the customers. Depending
on the deliberate application of innovation, imagination as well as the initiative for satisfying the
specific needs and creating values for individuals are being done. In the words of Berry and
Berry (2018), depending on the innovation ideas, the technological advancement is being
introduced. It cannot be denied that innovation is being considered as the risk taking process that
introduces the revolutionary products and technologies by taking the greatest risk. On the other
hand, the term diffusion indicates the physical process that helps to move the material from high
concentration to low concentration areas (Christensen, Raynor and McDonald 2015). Therefore,
it can be said that diffusion is the process of spreading innovation in the market. By highlighting
the recycling innovation strategy of TerraCycle, the innovation practices have been developed. In
the year 2001, TerraCycle was founded by Jon Beyer and Tom Szaky. By critically analyzing the
situation in the organization, the study has shed light on the case of understanding the emerging
situation in TerraCycle. The purpose of this study is to shed light on different in novation
theories and those implication in case of describing the innovative initiatives of the company.
Discussion of innovation theory
The Innovation Matrix
The innovation Matrix is being considered as the popular tool of innovation program,
which can be considered as the most suitable innovation format for every organization
(Acemoglu, Akcigit and Kerr, 2016). In order to design and execute the wide range of innovation

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initiatives, Innovation Matrix has been introduced by the organizations. In the innovation model,
nine innovation initiatives have been introduced.
Figure: The Innovation Matrix
(Scope: Mao and Ding 2015)
Startup Fund: The startup fund is the corporate fund, which is being invested depending on the
available opportunities in the external market (Acemoglu, Akcigit and Kerr, 2016). In case of
TerraCycle, the finding is done by the brands, companies and retailers.
Emerging business Areas: It indicates the sandbox area, in which the new business initiatives
are being introduced in the market (Mao and Ding 2015). By continuing this it can be said that
the new business ideas are being developed for understanding the potentiality and profitability
rate of the organization.
Center of Excellence: It indicates the formal group presentation that coordinates with the
innovation initiatives for ensuring the structured innovation process.

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External Incubator: In this process, through the evaluation of the external startups the growth is
being evaluated for a specific time period.
Internal Accelerator: The internal accelerator is being considered as the innovative accelerator
that indicates the growth of business ideas as well as the business processes so that the effective
business outcome can be delivered.
Community of Practice: It is being considered as the cross functional group of people, who
have the same goals and same the interest. People who are concern about the environmental
degradation, have been involved in the process (Mao and Ding 2015). By recycling the waste
products the company has introduced charitable innovation to the recycling industry.
Innovative Challenge: The term innovative challenge describes the open initiative for getting
the external expertise for solving societal and organizational challenge.
Design Sprint: The design sprit indicates the process in which the critical business questions,
which are being designed, tested and prototyped for closely interacting with the world.
Innovation Workshop: Innovative workshop is the one day session in which new ideas and
concepts are being introduced for introducing the improving the business work processes (Mao
and Ding 2015).
Theoretical aspects of business model innovation
Business model innovation is the process of conscious change of the existing business
model so that new business ideas can be introduced for satisfying the potential customers
(Carayannis, Sindakis and Walter 2015). In the business innovation model, the value is being
generated in the innovative manner so that the profitability of the companies can be increased.

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By visualizing the dimensions of business concepts, new business ideas are being developed
through the model. On the other hand, it can be said that the business model innovation not only
indicates the technological and product creation process, but also it indicates the process of
determining the business success. An organization can operate different business models at the
same time. Depending on the business innovation model, the potential revolution in the industry
can be effectively introduced (Carayannis, Sindakis and Walter 2015). Analyzing the concept of
business innovation, it can be said that grasping the principles as well as creating the values of
the company, different business possibilities can be increased. As stated by Burmeister, Lüttgens
and Piller (2016), depending on 4 dimensions the business model innovation model can be
developed. Based on the needs of the target customers, value is being created by the
organization. In order to deliver the sustainable benefits, the companies develop the innovative
business models. Based on Customer segment, value proposition, channels, customer relations,
key resources, key activities, key partnership and cost structure, the business model canvas is
being developed (Dudin et al. 2015).
Diffusion of innovations
In the year 1962, thee diffusion of innovation theory was developed by E.M. Rogers. In
this theory the adopting the new behavior, product and ideas are being described. Based on the
abilities of the adopters (Utterback, Pistorius and Yilmaz 2018). In this theory, the author has
highlighted five adopting categories based on which the innovation is being introduced. It has
been mentioned in this theory that depending on the behavioral characteristics of individuals, the
innovation adoption habits are being highlighted.

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Figure: Diffusion of innovations
(Scope: Tsutsui 2018)
Innovator:
Innovator indicates the small group of people, who are keen to explore the new ideas and
models in the market (Utterback, Pistorius and Yilmaz 2018). People with these behavioral
characteristics, have the ability to take risk and appreciate the new ideas.
Early adopters
Early adopters are those who prefers to enjoy the leadership roles. These people are
aware of the needs of changes. The early adopters are very comfortable while adopting the new
ideas. It becomes easier for the organizations to convince the early adopters for change
implementations.
Early majority

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Depending on the evidence of innovation, the early majority of people adopt the changes
(Dearing and Cox 2018). In order to convince these kind of people, it is very important for the
organizations to introduce the success stories. If the typical needs of the individuals will be
fulfilled in that case, the early majority of will adopt the innovation.
Late majority
These people are very constructive and skeptical of change and after the adoption of large
numbers of people, these people accept the changes (Dearing and Cox 2018). Depending on how
many people have appreciated the innovation and changes, these people appreciate the changes.
Laggards
These people are very constructive and tough to convince. These group of people hardly accept
the change.
Theoretical concepts of innovative marketing
Marketing innovation indicates the new method that helps to bring the innovation in the
marketing process (Baker and Saren 2016). Marketing plays the strategic role for driving thee
business success. Depending on the marketing mix, not only the Marketing plays an important
strategic role that it has been identified that marketing trends can be describe by highlighting the
four dimensions (Groening, Sarkis and Zhu 2018). Analyzing the complexity of marketing
innovation it can be said that depending on the competitiveness and marketing innovation, the
marketing strategies are being developed. In order to develop the successful business practices,
the strong relationship development through gaining marketing competitiveness is important. It
cannot be denied that in order to deal with the emerging business challenges, it has become
important for the companies to implement effective marketing strategies. Competition in the

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market encourages the firms to demonstrate their abilities so that they can be able to effectively
serve the customers.
Application on TerraCycle
Intro of TerraCycle
The term TerraCycle is being considered as the process or idea which helps to eliminate
the wastage. In the process of Terracycle, non-recyclable products are being recycled. In this
process, pens from school, plastic gloves, coffee capsules, which are non- recyclable products,
are being recycled (Terracycle.com 2019). It is being considered as the biggest innovation as in
this process TerraCycle collects and recycle every kind of wastage. Developing partnership with
large retailers, municipalities, small business organizations and large companies, in 20 different
countries the TerraCycle idea has been implemented (Terracycle.com 2019). Using this
innovative idea, it has become easier for the organizations to divert huge pounds of waste from
the incinerators and landfills.
Historical discussion of innovation
The term Innovation has become magic for the business developers. The innovation path
through the centuries is complex. As per Godin, innovation can be considered as the latest
blooming incarnation of previously used terms. It is the reflection of invention and imagination.
In the thirteenth century, innovation has been used for renewing the contracts. Through the
industrial; revolution, the customer culture and demands have been changed, which has driven
the necessity of innovation in business. In the nineteenth century, the new element has been
woven in the definition of innovation. As per Goblin, after the nineteenth century, the
government has also contributed in case of bringing the improvement in the case of improvement
in the research and development process so that the customers can be satisfied in the better

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manner. In case of the economic gains, the contribution of internet has brought the huge
revolution in the innovation process. It cannot be denied that in most of the cases, internet has
brought development in the manufacturing areas. Analyzing the history of innovation, it can be
said that innovative waste management organization namely TerraCycle has become the worlds’
leading complex waste processing organization. In the year 2001, TerraCycle was founded by
Jon Beyer and Tom Szaky. Initial funding of the company came from the family and friends
(Terracycle.com 2019). After getting the opportunity of one million dollar, the TerraCycle got
the media attention. Through the carrot capital business plan, the business model of TerraCycle
has been changed. In the initial stage, the company aimed to take the organic waste and process
worms into the fertilizer. After the introduction of technological innovation, the amount of
collecting solid and complex waste has been increased. Understanding the emerging market
demand, TerraaCycle has started contributing in recycling the waste products in cost effective
manner, which has brought huge growth to the company (Terracycle.com 2019).
Future innovation pathway
Analyzing the future innovation initiatives of teracycle it has been identified that the
company aims to find the innovative way for eliminating the very idea of waste. By in order to
accomplish the mission, the company has already started collecting the wastage and has
developed the recycling platform so that the environmental sustainability can be maintained
(King and Prince 2015). By continuing this it can be said that the company also aims to introduce
innovative recycling applications so that the waste can be collected in large scale (Kim and
Mauborgne 2004). Analyzing the general trend of the Greener customer behavior, it can be said
that in the current competitive market, where environmental degradation has become the major
concern for the world, TerraCycle can be able to bring its business growth through its recycling

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initiatives. Not like others organization, TerraCycle has the competitive challenges in the market.
Rather than that assuring the people care, it aims to introduce the fierce culture of innovation. By
maintaining the transparency, TerraCycle has decided to grow its recycling innovation process
from one country to another so that within coming 10 year it can be able to serve near about 26
to 50 companies (Kim and Mauborgne 2004). Analyzing the business innovation in TerraCycle,
it can be said that by developing partnership with brands, retailers and corporate organizations,
the collection of waste has been done by the company through effective business model of
innovation.
Terracycle is the free recycling program that is being funded by the retailers, brands and
manufacturers around the world for helping to collect the waste for recycling the products. In the
year 2018, analyzing the waste recycling terms, it has been identified that the waste and
recycling trends from the past few years have brought the various technological innovation in the
market. By continuing in the infrastructural growth, the increasing amount of ocean population
has become the threat for the emerging industry (Mao and Ding 2015). It is true that the
stakeholders are also trying to develop the business in circular economy with smart cities. In the
waste recycling industry, incredible strides have been developed. Based on the innovation
matrix, TerraCycle will be able to introduce its innovation processes in better manner, which can
not only help to bring technological improvement, but also it can help to grab large numbers of
customer attention. After the introduction of machinery learning, smart city technology and
robotic innovations, advanced innovation has been introduced in both the private and public
sectors (Gillespie et al. 2016). With the increasing adoption of circular economy principles, the
continuous growth in the startup-up business and others corporate sectors have influenced the
take-make-waste-culture. By introducing the collaborative profitable solutions, it has become

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easier for the recycling organizations to bring the business empowerment. In order to drive the
attention of large numbers of people towards the recycling process, both the offline and online
business practices have been introduced by the company (Baker and Saren 2016). Using
effective marketing model the social media the marketing campaigns have been introduced.
Developing a different Webpage, TerraCycle has tried to maintain its transparency to the people.
After the years the technological innovation, the technological industry has started
embracing the technological initiatives. In the year 2018, with the greater efficiency in the route
planning and navigation system, reporting and data processing has become easier for the
organizations. Through the critical infrastructure improvement process, enabling the virtual
waste assessments has become highly advanced with the recycling facilities. In the China’s
national Sword in the year 2017, it has been announced that in order to remaining profitability,
the recycling infrastructure needs to be involved in industry. By creating the waste management
opportunities, not only the cost saving policies will be improved, but also it can play an
important role for bringing the efficiency in both the macro and micro scale. Analyzing the
problems in recycling industry in the year 2018. It has been identified that driver shortage has
become one of the major concern in the recycling industry. In the running year, the solution
against this problem has been introduced to the people. By recognizing the potential needs of
individuals, the structural improvement has been introduced, which has increased the
engagement of individuals towards the empowerment process (King and Prince 2015). By
ensuring the facilities to the servicing communities, recycling industry has driven large numbers
of candidates; attention. On the other hand, it is true that in order to fill the gap of the drivers,
technology has plays an important role. By creating the efficient route models, the recycling
industry has brought huge changes in its services.