lecture 3 Flashcards
What does diffusion mean?
The innovation is spreading around the market.
What 3 theories do we know about diffusion in an innovation?
- S-curves
- Rogers’ diffusion of innovation model
- Gartner’s hype cycle
What does the S-curves show?
The relation between the amount of effort you have to put into an innovation and the performance of the innovation (improvements)
What can you read in the S-curve?
- innovation is slow at first and rapidly improves once the technology takes off
- effort often on the X-axis
What can S-curves help an organization decide with?
- when/if to enter a new market
- when/if to switch to new production methods
- when/if to invest in new inventions/technology
- when/if to abandon products
What is the main idea of Rogers’ diffusion of innovation model?
It takes a while before all people accept an innovation. (not only with technological innovation)
What are the different groups of people in Rogers’ model?
- Innovators
- early adaptors
- early majority
- late majority
- laggards
according to Roger: what is diffusion of innovation about? (what 4 aspects?)
- Adoption of the innovation
- communication
- time
- social system
What is addoption of the innovation about?
The individual purchase decision (choise is you want to adopt the innovation)
What 5 things does the adoption of an innovation depend on?
- relative advantage
- compatibility
- complexity
- trialability
- observability
What does relative advantage mean (Rogers’ model)
The user thinks the innovation is useful on top of other innovations.
what does compatibility mean (Rogers’ model)
an innovation fits other innovations (vb. phone works/looks the same as others)
What does complexity mean? (Rogers’ model)
an innovation must be easy to use
what does trialability mean (Rogers’ model)
can you try the innovation before adopting it? 30-days free trail vb.
what does observability mean? (Rogers’ model)
if you see others using the innovation, you will sooner buy the innovation yourself.
