innovations & diffusion

7/30/2019 Innovations & Diffusion

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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
http://www.thequickweightlossdiet.com/howtoloseweightfastblog/faddiets.jpg


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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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PROCESS Five stages in the innovation-decision process:

(1) knowledge,

(2) persuasion, (3) decision,

(4) implementation, and

(5) confirmation.


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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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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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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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innovations & diffusion

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