Week 9 Flashcards
What are the adopter categories in Rogers’ diffusion model?
Innovators, early adopters, early majority, late majority, and laggards.
What is relative advantage in the context of innovation diffusion?
The greater the perceived advantage, the greater the diffusion
Why is trialability important for innovation diffusion?
It allows users to test an innovation, reducing uncertainty and encouraging faster adoption
What does Geoffrey Moore’s “Crossing the Chasm” describe?
It describes the gap between early adopters and the mainstream market, emphasizing the need for companies to target niche markets with a complete product solution to cross this chasm.
How does disruptive innovation differ from sustaining innovation?
Disruptuve innovation creates simpler, cheaper products for new or underserved markets, eventually challenging mainstream products.
Sustaining Innovation: Improves existing products for current customers, enhancing features or quality without changing market dynamics (e.g., new iPhone models).
What are the key challenges for incumbents in responding to disruptive innovation?
Dependence on current customers, the mismatch between small markets and growth needs, the difficulty in analyzing new markets, and the gap between technology supply and market demand.
Give an example of a disruptive innovation.
Netflix disrupted traditional video rental services through its streaming and subscription model.
What does “small markets don’t solve the growth needs of large companies” mean?
Disruptive innovations often start in niche markets, which are not large enough to meet the growth targets of big companies.
How can large companies manage disruptive innovation?
By creating spin-out entities or small, agile teams dedicated to exploring new technologies.
What is the importance of aligning technology development with market needs?
It ensures that the pace of technological innovation matches customer demand, avoiding the disconnect between what is technologically possible and what the market is ready for.
Why might large companies struggle with markets that don’t yet exist?
They lack data and certainty, making it difficult to justify investment in these emerging markets.
What role does perceived risk play in innovation diffusion?
Lower perceived risks encourage faster adoption of new innovations.
Why is observability important in the diffusion of innovations?
When the benefits of an innovation are visible to others, it encourages faster adoption among potential users.
What is a key takeaway from Clayton Christensen’s The Innovator’s Dilemma?
Disruptive innovations often succeed by targeting new markets or underserved customers, eventually overtaking established players.
How does complexity affect innovation diffusion?
Simpler innovations are easier for users to understand and adopt, leading to faster diffusion.
