Diffusion of innovations

Diffusion Of Innovation

BY:-

RUQAIYA (QA A017)

ANKIT (QA B020)

SAGAR (CEUTICS A016)

WHAT IS DIFFUSION?

DIFFUSION IS THE PROCESS BY WHICH AN INNOVATION IS COMMUNICATED THROUGH CERTAIN CHANNELS OVER TIME AMONG THE MEMBERS OF A SOCIAL SYSTEM.

IT IS A SPECIAL TYPE OF COMMUNICATION, IN THAT THE MESSAGES ARE CONCERNED WITH NEW IDEAS.

FOUR MAIN ELEMENTS IN THE DIFFUSIONOF INNOVATIONS:

• AN INNOVATION

• IS COMMUNICATED THROUGH CERTAIN CHANNELS

• OVER TIME

• AMONG THE MEMBERS OF A SOCIAL SYSTEM.

INNOVATION IS ANY NEW IDEA, NEW BEHAVIOUR, NEW PRODUCT, NEW MESSAGE I.E., A NEW THING THAT ONE BRINGS TO YOU FOR YOUR ADOPTION.

INNOVATION

THE "NEWNESS" ASPECT OF AN INNOVATION MAY BEEXPRESSED IN TERMS OF……

• KNOWLEDGE,

• PERSUASION,

• OR A DECISION TO ADOPT.

HOW THE PERCEIVED ATTRIBUTES OF AN INNOVATION, AFFECT ITS RATE OF ADOPTION……

FIVE ATTRIBUTES OF INNOVATIONS ARE:

RELATIVE ADVANTAGE COMPATIBILITY COMPLEXITY OF TRANSITION

POSSIBILITY OF TESTING

VISIBILITY OF BENEFITS

RELATIVE ADVANTAGE

ADOPTION PROBABILITY GROWS IF INNOVATION HAS CLEAR ADVANTAGES FOR PRODUCT, SERVICE OR CURRENT BEHAVIOUR

RELATIVE ADVANTAGE MAY BE MEASURED IN MANY WAYS INCLUDINGECONOMICSSOCIAL PRESTIGESATISFACTION

MICROSOFT STORE VS. APPLE STORE

COMPATIBILITY

• THE DEGREE TO WHICH AN INNOVATION IS PERCEIVED AS BEING CONSISTENT WITH THE EXISTING VALUES, PAST EXPERIENCES, AND NEEDS OF POTENTIAL ADOPTERS.

• COMPATIBLE INNOVATIONS WILL BE MORE RAPIDLY ADOPTED.

I m lovin it!!

COMPLEXITY

THE DEGREE TO WHICH AN INNOVATION IS PERCEIVED AS DIFFICULT TO UNDERSTAND AND USE.

COMPLEX CHANGES INVOLVED IN INNOVATION, REDUCE ADOPTION LIKELIHOOD

TRIALABILITY

• THE DEGREE TO WHICH AN INNOVATION MAY BE EXPERIMENTED WITH ON A LIMITED BASIS.

• INNOVATIONS THAT CAN BE TRIED OUT ARE MORE LIKELY TO BE ADOPTED.

OBSERVABILITY

• THE DEGREE TO WHICH THE RESULTS OF AN INNOVATION ARE VISIBLE TO OTHERS.

• THE EASIER IT IS FOR INDIVIDUALS TO SEE THE RESULTS OF AN INNOVATION, THE MORE LIKELY THEY ARE TO ADOPT IT.

COMMUNICATION CHANNELS

THE MEANS BY WHICH MESSAGES GET FROM ONE INDIVIDUAL TO ANOTHER.

THE NATURE OF THE INFORMATION-EXCHANGE RELATION DETERMINES THE CONDITIONS UNDER WHICH A SOURCE WILL/WILL NOT TRANSMIT THE INNOVATION TO THE RECEIVER AND THE EFFECT OF THE TRANSFER.

WIDELY USED MEDIUM…..

MASS-MEDIA – MOST EFFICIENT WAY TO CREATE AWARENESS KNOWLEDGE OF AN INNOVATION

INTERPERSONAL CHANNELS – MORE EFFECTIVE IN PERSUADING IN INDIVIDUAL TO ACCEPT A NEW IDEA.

VS.

MOST INDIVIDUALS EVALUATE AN INNOVATION, NOT ON THE BASIS OF SCIENTIFIC RESEARCH BY EXPERTS,

BUT

THROUGH THE SUBJECTIVE EVALUATIONSOF NEAR-PEERS WHO HAVE ADOPTED THE INNOVATION.

HETEROPHILY AND HOMOPHILY,

• MOST HUMAN COMMUNICATION TAKES PLACE BETWEEN INDIVIDUALS WHO ARE HOMOPHILOUS, A SITUATION THAT LEADS TO MORE EFFECTIVE COMMUNICATION.

• MORE EFFECTIVE COMMUNICATION OCCURS WHEN TWO INDIVIDUALS ARE HOMOPHILOUS.

TIME

DIFFUSION OF INNOVATION OCCURS OVER TIME, AND DIFFERENT INNOVATIONS ARE ADOPTED AT DIFFERENT RATES.

IN ANY GIVEN SOCIAL SYSTEM, THERE ARE DIFFERENT CATEGORIES OF ADOPTERS WHO ADOPT INNOVATIONS DIFFERENTLY.

SOCIAL SYSTEM

INNOVATIONS ARE ADOPTED WITHIN A SOCIAL SYSTEM.

SOCIAL SYSTEMS ARE GOVERNED BY NORMS AND INFLUENCED BY OPINION LEADERSHIP, CHANGE AGENTS, AND THE CONSEQUENCES OF ADOPTION.

“TIPPING POINT” CONCEPT

Ideas and products and messages and behaviors spread just like viruses do.

The change happens not gradually but at one dramatic moment, called “Tipping Point”or “Critical mass” (the message makes an impact) .

TYPES OF INNOVATION DECISIONS

1. Optional innovation

process• Made on an

individual basis.

2. Collective innovative

process• Made in mutual

agreement with others.

3. Authority innovation

process• Made by people

who are in power.

4.Contingent innovation

process• Made after, but in

relation to, another innovation decision

THE INNOVATION DECISION PROCESS

1. Knowledgestage

2. Persuasionstage

3. Decision stage

4. Implementationstage

5.Confirmation stage

THE INNOVATION DECISION PROCESS

Taking an example of a smartphone

CRITICISMS OF INNOVATION RESEARCH

Overadoptioneg. Too much use of

antibioticsPro innovation bias

Individual- Blame bias

eg. Financial inability, religious beliefs

Exploitation of weaker social

systems

Issues Related to Furthering

Inequalities

CRITICISMS OF INNOVATION RESEARCH

Exploitation of Weaker Social

Systems

Economic Leakage

Dependency

Political influence

INNOVATIVENESS AND ADOPTER CATEGORIESInnovativeness is the degree to which an individual or other unit of adoption is relatively earlier in adopting new ideas than the other members of a system.

RATE OF ADOPTIONRate of adoption is the relative speed with which an innovation is adopted by members of a social system.

S-shaped rate of adoption

When the number of individuals adopting a new idea is plotted on a cumulative frequency basis over time, the resulting distribution is an s-shaped curve.

Innovations that are perceived by individuals as possessing greater relative advantage, compatibility, and the like, have a more rapid rate of adoption

••••••••••••••••••••••••••••••••••

SOCIAL SYSTEM

SYSTEM NORMS AND DIFFUSION

Norms are: the established behaviour patterns for the members of a social system. They define a range of tolerable behaviour and serve as a guide or a standard for

the members’ behaviour in a social system.

OPINION LEADERSHIPThe degree to which an individual is able to informally influence other individuals' attitudes or overt behaviour in desired way with relative frequency

Characteristics of opinion leader

External communication

Socio-economic Status

Accessibility

Innovativeness

“Invention can start from the lowest ranks of the people, but its extension depends upon the existence of some lofty social elevation” -Tarde(1903)

Opinion Leaders

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OPINION LEADER

• VIDEO

CHANGE AGENT

An individual who influences clients' innovation decisions in a direction deemed desirable by a change agency

‘ One of the main roles of a change agent is to facilitate the flow of innovations from a change agency to an audience of clients ’

Change agent linkage

Client’s needs and feedback

InnovationFlow to clients

Changeagency

Clientsystem

Sequence of change

Agent roles

LOADING

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Develop need for change

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Establish an info exchange relationship


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Diagnose the problems of clients



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Create intent to change in client




Translate intent into

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Stabilize adoption

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Prevent discontinuance

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Achieve a terminal

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CONSEQUENCES OF INNOVATIONS

Desirable Versus Undesirable Consequences

Direct Versus Indirect Consequences

Anticipated Versus Unanticipated Consequences

• Functional effects on individuals or more• Dysfunctional effects

• Changes that occur in immediate response

• The consequences of consequences

• Changes that are recognized and intended

• Neither recognized nor intended

CASE STUDY: DIFFUSION OF HYBRID SEED CORN IN IOWA, USA

Background

-Hybrid seed corn: Introduced to Iowa farmers in 1928 and remained as one of the most important new agricultural technologies.

-Characteristics:. Increased productivity by 20%.. Suitable for mechanical corn pickers -> Reduced the need for a large number of farmers to

harvest the corp.. More drought-resistant.

Reproduced from Urban Farmer 2012 Reproduced from Urban Farmer 2011

Background

- In 1941, Ryan and Gross investigated on the diffusion of hybrid seed corn in the area. In general, their findings suggested that

(a) The diffusion process took 12 years to reach widespread diffusion.(b) The average farmer needed 7 years to progress from initial awareness of the innovation

to full-scale adoption.

- Specifically, a qualitative research was conducted in 2 communities in Iowa and a total of 259 famers were interviewed to understand farmers’ decision to adopt the hybrid seed corn. Most farmer-respondents recognized that they went through a series of stages.

Knowledge-Salesmen from the seed corn company introduced the innovation to Iowa farmers.

- Influencing factors:Socioeconomic characteristics: The seed lost it hybrid vigor after the first generation -> required annual purchase -> costed quite amount of money given the Depression context.Previous practice: Previously, farmers had selected the best-looking corn plants to use as seed for the following years -> the adoption of hybrid corn meant an important change in the corn-growing behavior.

Obstructed knowledge-gaining process. Slowed down the diffusion process as a whole.

Innovation-Decision process

Innovation-Decision processPersuasion

-Iowa farmers mentally applied the new idea to their present or an anticipated future situation before deciding whether or not to try it.

- However, like any innovation, hybrid seed corn carried some degree of uncertainty. Sought social reinforcement for their attitude toward the innovation by referring to the neighbors . The neighbor gave meaning to the innovation, leading to the forming of positive attitude and persuasion.

-The small-scale trial is often an important part of the decision to adopt.

-In 1930s, the seed corn salesmen gave a small bag of the new seed, which was enough to plant about an acre of corn, to Iowa farmers entering the decision stage. A large enough trial to convince the farmer to adopt the new idea on all of his corn acreage in the next few years.

Innovation-Decision processDecision

- Implementation usually follows the decision stage rather directly. With such facilitations from the seed corn company, the famers-respondents trialed the seed corn.

Innovation-Decision processImplementation

WINTERTemplate

- Innovators and early adopters were more likely to positively confirm their decision to implement the innovation than later adopters, meaning that the rate of adoption was faster.

Innovation-Decision processConfirmation

Thank you !!

“You cannot discover new oceans unless you have courage to lose

sight of the shore.”

Diffusion of innovations

Marketing

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