Lecture 3 Diffusion of Innovation

Question 1

S curves

Answer 1

S curves are curves that explain how technology is adopted. It tries to explain when an innovation will be changed into another. A useful too to determine in which state the innovation is.

Question 2

Key phases of s curves

Answer 2

-introduction (slow growth)
-growth (rapid growth)
-maturity (slower growth)
-decline (possible decline or plateau)

Question 3

the Introduction phase in the S-Curve

Answer 3

The early stage where a new technology has limited adoption and progress, with slow growth as the product is refined and the market learns its value.
Example: Early smartphones were expensive with limited functionality.

Question 4

the Growth phase in the S-Curve

Answer 4

A phase of rapid adoption and improvement as the technology matures, and the market expands quickly.
Example: Widespread smartphone adoption in the 2010s.

Question 5

the Maturity phase in the S-Curve

Answer 5

Growth slows as the technology peaks. Most potential customers have adopted it, and improvements are incremental.
Example: Current smartphone market with few groundbreaking changes.

Question 6

the Decline phase in the S-Curve

Answer 6

The phase when a technology faces decline due to market saturation or new innovations.
Example: Decline of feature phones as smartphones became dominant.

Question 7

What does an S-Curve illustrate?

Answer 7

The adoption of technology, showing slow initial uptake, rapid growth, maturity, and possible decline.

Question 8

What are key strategic decisions influenced by the S-Curve?

Answer 8

Market entry, investment in new technologies, and when to abandon old products.

Question 9

What is the Ferment stage in the S-Curve?

Answer 9

The early stage where innovation is developing and improving.

Question 10

What is the Take-off/Dominant Design stage in the S-Curve?

Answer 10

A stage of rapid improvements and widespread acceptance of a particular design.

Question 11

What is the Maturity stage in the S-Curve?

Answer 11

A stage of limited improvements and innovation potential.

Question 12

What is the Discontinuity stage in the S-Curve?

Answer 12

A new wave of innovation begins as the old design reaches its limits.

Question 13

What factors influence the adoption of innovation?

Answer 13

Relative advantage
Compatibility
Complexity
Trialability
Observability

Question 14

What is the Relative Advantage of an innovation?

Answer 14

The perceived benefits of an innovation over existing products.
Example: Mobile phones versus landlines.

Question 15

What does Compatibility refer to in the adoption process?

Answer 15

The innovation must fit existing technologies, needs, and values.
Example: Gay marriage in Muslim countries.

Question 16

What does Complexity refer to in the adoption process?

Answer 16

The innovation should not be too complex to understand or use.

Question 17

What is Trialability in the adoption process

Answer 17

The ability to try the innovation before fully adopting it.
Example: Trying out new video games in movie theaters.

Question 18

What is Observability in the adoption process?

Answer 18

Seeing others adopt and use the innovation.

Question 19

What are the five key phases of Gartner’s Hype Cycle?

Answer 19

Innovation Trigger
Peak of Inflated Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity

Question 20

What happens during the Innovation Trigger phase of gartners hype cycle?

Answer 20

A new technology is introduced, generating excitement but often with little practical use.
Example: Early talks about blockchain.

Question 21

What happens during the Peak of Inflated Expectations phase of gartners hype cycle?

Answer 21

Unrealistic hype builds, leading to overpromises and underdelivery.
Example: Overhyped AI expectations.

Question 22

What happens during the Trough of Disillusionment phase of gartners hype cycle?

Answer 22

Interest drops as the technology fails to meet expectations.
Example: VR struggles to gain mainstream traction.

Question 23

What happens during the Slope of Enlightenment phase of gartners hype cycle?

Answer 23

Practical use cases emerge, and the technology improves steadily.
Example: VR becoming more useful in gaming and training.

Question 24

What happens during the Plateau of Productivity phase of gartners hype cycle?

Answer 24

The technology becomes mainstream and widely adopted, delivering tangible benefits.
Example: Smartphones today.

Question 25

What is Critical Mass in innovation adoption?

Answer 25

The tipping point where enough people have adopted the innovation, ensuring rapid growth.
Example: Social media platforms like Instagram reaching critical mass.

Question 26

What are the five adopter groups in Rogers’ Diffusion of Innovation model?

Answer 26

Innovators (2.5%)
Early Adopters (13.5%)
Early Majority (34%)
Late Majority (34%)
Laggards (16%)

Question 27

What is the role of Innovators in adoption? (Rogers diffusion of innovation model)

Answer 27

They are the first to try new ideas, often risk-takers and tech-savvy.

Question 28

What is the role of Early Adopters in adoption? (Rogers diffusion of innovation model)

Answer 28

They embrace innovation early and influence others to adopt it.

Question 29

What is the role of the Early Majority in adoption? (Rogers diffusion of innovation model)

Answer 29

They are cautious and wait for proven benefits before adopting the innovation.

Question 30

What is the role of the Late Majority in adoption? (Rogers diffusion of innovation model)

Answer 30

They are skeptical and adopt only when the innovation becomes mainstream.

Question 31

What is the role of Laggards in adoption? (Rogers diffusion of innovation model)

Answer 31

They are the last to adopt, often resistant to change.

Question 32

What are the drawbacks of Rogers’ Diffusion of Innovation model?

Answer 32

It assumes total market penetration, overlooking niche markets.
It is innovation-based and doesn’t predict the success of individual companies.
It doesn’t account for innovations that may fail due to the rapid introduction of newer technologies.