3. Diffusion of Innovations Flashcards
What is diffusion?
The innovation is spreading around the market
What are three theories
about the diffusion of innovation?
- S-curves
- Rogers’ diffusion of innovation model
- Gartner’s Hype Cycle
What is a s-curve?
An S-curve shows the relationship between effort (time since inception) and performance (improvements due to innovation).
What are the 3 phases of a s-curve?
- Slow start: Testing, errors
- Rapid growth
- Plateau: Difficult to make further improvements
What are 3 uses of a s-curve?
- Decide when to enter a new market.
- Decide when to switch to new production methods or technologies.
- Determine when to invest in or abandon innovations/products.
What is Rogers’ diffusion of innovation model?
The process by which an innovation is communicated through certain channels over time among members of a social system.
What are the 5 stages of Rogers’ diffusion of innovation model?
- Innovators: First to adopt.
- Early Adopters: Quick to follow.
- Early Majority: Adopts after seeing results.
- Late Majority: Skeptical but eventually adopts.
- Laggards: Last to adopt, resistant to change.
What is diffusion of innovation about in Rogers’ diffusion of innovation model? 4 key-words
- Adoption of the innovation
- Communication
- Time
- Social system
What 5 factors influence the adoption of an innovation?
- Relative Advantage: Perceived usefulness over existing solutions.
- Compatibility: Fits well with existing systems or behaviors.
- Complexity: Easy to understand and use.
- Trialability: Ability to try before fully adopting.
- Observability: Visible use by others encourages adoption.
How is innovation communicated during the diffusion process? 3 points
- Mass Media Channels: Top of the adoption curve.
- Interpersonal Channels: Social networks, opinion leaders, and friend recommendations
- Hybrid Channels: Influencers.
Why does diffusion take time? 2 points
- Adoption is an individual process:
Knowledge - persuasion - decision - implementation - confirmation - Adoption is also a social process:
Takes time for society or industry to fully adopt
What are 5 influential factors from the social system in diffusion?
- Laws and policies.
- Norms and values.
- Communication channels.
- Networks.
- Adoption as an individual or social process.
What is the chasm of Gartner’s hype cycle?
A gap where innovations struggle to transition from early adopters (seeking performance) to the critical mass (seeking solutions).
What are 3 aspects of Hype Cycles?
- Most new technologies go through a phase of over-enthusiasm.
- Most new technologies fail but may be a success in the future.
- They help to determine when to start investing as an organization
