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Innovations
&
Diffusion
Presented To:- Dr.V.N.Bajpai
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What is innovation?
Innovation is the process and outcome of
creating something new, which is also of value.
Innovation involves the whole process from
opportunity identification, or invention to
development, prototyping, production marketing
and sales, while entrepreneurship only needs to
involve commercialization (Schumpeter).
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What is innovation?
Today it is said to involve the capacity to quickly
adapt by adopting new innovations (products,
processes, strategies, organization, etc)
Also, traditionally the focus has been on new
products or processes, but recently new
business models have come into focus, i.e. the
way a firm delivers value and secures profits.
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Clothing & Appearance Toys
Stocks
Fads & Fancieswhats next?
Slang
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Types of innovation
There are three types of innovation
Continuous Innovation
Discontinuous Innovation
Dynamically Continuous Innovatoin.
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The Innovation
Characteristics of Innovation
Relative Advantage
Compatability
Complexity
Trialability
Observability
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The Innovation
Relative Advantage over existing technologies - can be
perceived, may be measured in economic terms, social
prestige, convenience and satisfaction.
Compatibility with existing values, past experiences,
needs of potential adopters (and their social system)
Complexity - degree to which an innovation is perceivedas difficult to understand and use.
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The Innovation
Trial ability degree to which an innovation may be
experimented with on a limited basis. A trialable
innovation represented less uncertainty to a potential
adopter.
Observability Degree to which the results of an
innovation are visible to others.
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What is diffusion?
The process by which an
innovation is communicated
through certain channels overtime among the members of a
social system.
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What is diffusion?
Diffusion is a special type of communication in which the
messages are about a new idea.
The newness of the idea gives diffusion its special
character it ensures that a degree ofuncertainty is
involved in diffusion.
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The Process of the diffusion of
Innovations
Diffusion is a process where an
innovation is communicatedthrough certain channels over
time among members of a social
system
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Four Elements in Diffusion of
Innovations:Diffusion is a process where:
1) an innovation
2) is communicated through certain channels
3) over time 4) among members of a social system
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THE INNOVATION-DECISION
PROCESS THE INNOVATION-DECISION PROCESS - the process through
which an individual passes from first knowledge of an
innovation to forming an attitude toward the innovation, to a
decision to adopt or reject it.
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THE INNOVATION-DECISION
PROCESS Five stages in the innovation-decision process:
(1) knowledge,
(2) persuasion, (3) decision,
(4) implementation, and
(5) confirmation.
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THE INNOVATION-DECISION
PROCESS Knowledge occurs when an individual (or other decision-
making unit) learns of the innovations existence and
gains some understanding of how it functions.
Persuasion occurs when an individual (or other decision-
making unit) forms a favourable or unfavourable attitude
toward the innovation.
Decision occurs when an individual (or other decision-
making unit) engages in activities that lead to a choice to
adopt or reject the innovation.
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THE INNOVATION-DECISION
PROCESS Implementation occurs when an individual (or other
decision-making unit) puts an innovation into use. Re-
invention is especially likely to occur at the
implementation stage.
Confirmation occurs when an individual (or other
decision-making unit) seeks reinforcement of an
innovation-decision that has already been made, but the
individual may reverse this previous decision if exposedto conflicting innovation.
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THE INNOVATION-DECISION
PROCESS At the knowledge stage the individual wants to know
what the innovation is and how and why it works.
At the persuasion stage the individual wants to know the
innovations advantages and disadvantages in his or her
own situation.
Ultimately, the innovation-decision process leads to
either adoption or to rejection.
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