Applying Diffusion of Innovations Theory
November 14, 2010
COM 126
K. Vook
Once innovation occurs, innovations may be spread from the innovator to other individuals and groups. In 1962, Everett Rogers proposed that the life cycle of innovations can be described using the “s-curve” or diffusion curve. The s-curve maps growth of revenue or productivity against time. In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself. At some point consumer demand increases and product sales expand more rapidly. New incremental innovations or changes to the product allow growth to continue. Towards the end of its life cycle growth slows and may even begin to decline. In the later stages, no
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The elements selected for these evaluations vary widely from company to company and may include new product revenue, amount spent on research and development, time to market, customer and employee perception and satisfaction, number of patents, and additional sales resulting from past innovations (DeFleur, M. & Ball-Rokeach, S. (1989). On a political level, measures of innovation are used to compare one country or region with another. The OECD (Organisation for Economic Co-operation and Development) Oslo Manual of 1995 suggested standard guidelines for measuring technological product and process innovation. The new Oslo Manual of 2005, 3rd edition, added marketing and organizational innovation. The Bogota Manual was created in 2001 for Latin America and the Caribbean countries. A traditional indicator used to measure innovation is expenditure, for example, investment in R&D (Research and Development) as a percentage of GNP (Gross National Product). (DeFleur, M. & Ball-Rokeach, S. (1989) Economists Christopher Freeman(born 1921) and Bengt-Åke Lundvall developed the National Innovation System (NIS) to explain the flow of technology and information which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among people, enterprises, universities and government research
Alongside the entrepreneur spirit, Innovation is the process of taking new ideas and implementing them into the market. Key word being “new”, an innovation can be sometimes viewed as the application to better solutions that meet new demand-requirements, inarticulated needs or existing market needs. Innovative ideas range from: goods, services, products, processes, services, technologies or ideas that create value for which customers will pay for. For an idea to be an innovation, it must be replicable at an economical cost and must satisfy a specific need. This means is that one must be ready and willing put their new idea to the test. On the other hand, there is recognition that “innovation is also critical to cultural, environmental, social, and artistic progress as well” (Bullinger, 2006). With this stated, high-tech innovation is ultimately the reason why we can be thankful for the many new conveniences of the 21st century. Although we might see the forefront of innovation being very prominent in today’s world, innovation is truly nothing new. From the start of modern man times, innovative ideas have paved the way for civilization to advance and develop into what we are today and at the same time, we have barely begin to chip away at the tip of the iceberg of our true human potential. Some scholars believe that innovation is a
A metric measure is the other method that may be used while choosing innovation projects. The first test in this process is conducting a feasibility test of a given project. It is easier to determine availability of material and labor at the initial stages. Market performance of a given product is the other factor that is put into consideration. It is important for a company in this case to assess potential of return on investment using metrics.
Technological change is a fundamental driver of economic development and performance, not only at the level of firms and industries but also economies. Innovation is the organizational process through which new
The word ‘innovation’ is derived from Latin word ‘innovare’, which means “to change something to new”. In other words, we may say that ‘innovation’ means changing the regular way of doing things and involves doing the regular things in a novel way.
The tobacco industry makes millions off its consumers every year. Yet, tobacco products in the United States are known to cause damages and even death to their consumers. Ads to inform tobacco users about the risks are continuously being distributed through radio and television commercials. This problem is being addressed by using the Diffusion of Innovation and Social Marketing theories. The Diffusion of Innovation and Social Marketing theories both aim to disperse a program to a certain group of individuals to help them change an unhealthy habit, or to help them start a healthy one (Edberg, 2015).
(1983) and Rothwell (1992). The model attempts to understand the innovation challenge as a dynamic
Tidd et al (2000) states, “the innovation is a business process of revolving opportunity into new ideas and of putting these into widely used practice. In term of the nature, there are five major types of innovations: novelty, competence shifting, complexity, robust design and continuous improvement. While in term of the extent of change, innovations can be divided into incremental, radical and
Openness to experience is related to the Individual characteristics such as imagination, curiosity, originality and open mindedness (Wehrli, 2008). Barrick & Mount, (2001) defined openness to experience as the extent to which an individual is intellect, creative, conventional and broad minded. According to Costa & McCrae (1995), openness to experience consists of six factors which are fantasy, aesthetics, feelings, actions, ideas and values. Individuals who are strong in openness show a preference for variety, and are intellectually more curious and imaginative. McCrae (1996) suggested that openness to experience may have the strongest influence on social and interpersonal phenomena among all five traits under comparison. Previous studies about internet technologies which examined the role of openness to experience show that users high in this trait are adopters and users of various communication tools available through this medium. The research results from both Heinström (2003) and Wyatt and Phillips (2005) shows that people high in openness undertake information from internet. Marcus et al., (2006) found that individuals high in openness to experience are likely to have a personal website. Similar results obtained from Guadagno et al. (2008), they found that people high in openness to be more likely to have a blog and communicate with others over internet. Since the individuals described as high
Innovation can be defined as new scientific knowledge, tools, technical products, and application methods that assist in the problem-solving process for prospective adoption. Diffusion is the operation through which an innovation disseminates through communication channels among social system's members over time. DOI theory is significant for many organizations and firms these days because it can be utilized to increase the number the users of new IT-based products and services, like
Innovation is normally used to denote the process that takes place when a product or a process is developed, from idea to market; the concept of invention only denotes the process that takes place when new ideas or solutions are generated. Baumol (2002) argues “is it possible to have lots of inventions and still lack innovations. Nevertheless, inventions are a necessary precondition for innovation”.
Entering the second week of innovation class, the topic is about the diffusion of innovation. As I have mentioned before in my first learning log, innovation needs to be managed as a whole process and I thought that the diffusion of innovation plays a vital role in that process in which commercialization is the part of it. As I have already had the experiences on the diffusion of innovation, therefore, I will elaborate more about it that linked with my experiences in this second learning log. Also, I would like to criticize the diffusion of innovation in one of the innovations from iSearch1, the Samsung family hub refrigerator.
Successful and Inappropriate Diffusion In Thermador The Thermadorian society had been isolated from the world for hundreds of years. The successful diffusion of farming technology failed for a number of reasons. Based on our information, there were several components missing. Components such as no research or plans to sustain a long-term solution to the problem.
Models for diffusion of innovations among potential adopters have been recently used to study the life cycle of new products and to forecast first-purchase sales. Those models are useful for managers as decision aids to create and perform strategies to maintain the profitability of new products across their life cycle. Bass (1969) pioneered this area of research with a model for diffusions of new products under peer pressure via word-of-mouth. This model distinguished two parameters: innovation and imitation. Later, Chatterjee and Eliashberg (1990) provided a microeconomic version of Bass’s model that included interactions among potential adopters and the formation of beliefs.
Research has indicated through various thesis and reports that innovation is a continuous process, it will be interesting to look at factors that show why most innovative ideas do
The term Technological Entrepreneurship can be defied an organization or agency, which is spread and divide amongst various kinds of actors, where each of these actors becomes engaged with the technology. Hence, in the process, these actors also put forth such inputs, which in the end results in switch the path of any emerging technological innovation or discovery. To successfully propagate their new ideas, new technology ventures have to overpower different challenges. In order to establish jobs and to enrich economic