Lakshya Presentation for CB

8/7/2019 Lakshya Presentation for CB

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Diffusionof

Innovation

Presented by:

LAKSHYALAKSHYASyndicate 6

Mangalmay Institute of Management Studies


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Lakshya Members Meenaz Hafizee

Shikha Dayal

Krishna Kumar Verma

Pranav Kumar

Rabindra Kumar

Rajesh Chowdhary

Rishikesh Arya Sameer Kumar

Sandeep Kumar

Tarun Kumar Mandal (Group Leader)


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Diffusionof Innovations

is a theory ofhow,

why

,at what rate

new ideas and technologies

spread through cultures.


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History of the Study:

Concept was first studied by theFrench sociologist Gabriel Tarde(1890)

Followed by German anthropologists

Friedrich Ratzel and Austrian scholarLeo Frobenius.

Other important studies were done by:o H.Earl Pemberton

o Ryan and Gross

By: Rabindra


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DiffusionofInnovation Everett M. Rogers proposed 4 main

elements that influence the spread of anew idea:

Innovation,

communication channels, time

social system.

Definition by Rogers :DI is the process by which aninnovation is communicated throughcertain channels over time among the

members of a social system.

By: Krishna


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Innovation

"an idea, practice, or object that is perceived as newby an individual or society.

Communication channels

"the means by which messages get from oneindividual to another

Time

length of time required to pass through theinnovation-decision process. The relative speedwith which an innovation is adopted by members

of a social system.Social system

A set of interrelated units that are engaged injoint problem solving to accomplish a common

goal.

ElementsofDiffusionofInnovationBy: Krishna


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InnovationDecisions

Two factors determine what type of a

decision it is:1. Whether the decision is made freely

and implemented willingly

2. Who makes the decision

Based on these considerations, there arethree types of innovation decisions:

Optional innovation-decisions, Collective innovation-decisions,

Authority innovation-decisions.

By: Rajesh


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Optional Innovation-Decision

This decision is made by an individualwho is in some way distinguished fromothers in a social system.

Collective Innovation-Decision Made collectively by all individuals of asocial system.

Authority Innovation-Decision

Made for the entire social system by fewindividuals in positions of influence orpower.

InnovationDecisionsBy: Rajesh


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The Adoption Process

EarlierCategorization

ModifiedCategorization

awareness knowledgeinterest persuasion

evaluation decision

trial implementationadoption confirmation

Everett M. Rogers categorized it into five

stages (steps) as:

An individual might reject an innovation at

any time during or after the adoption process.

By: Shikha & Tarun


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Knowledge

Persuasion

Decision

Implementation

Confirmation

R

E

J

E

C

T

A

C

C

E

P

T

Individual has becameaware about itsexistence but lacks

information about theinnovation.

By: Shikha & Tarun


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Knowledge

Persuasion

Decision

Implementation

Confirmation

R

E

J

E

C

T

A

C

C

E

P

T

Has acquiredknowledge and has

formed a favorable orunfavorable attitude

towards it

By: Shikha & Tarun


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Knowledge

Persuasion

Decision

Implementation

Confirmation

R

E

J

E

C

T

A

C

C

E

P

T

Individual engagesin activities thatlead to a choice toadopt or reject the

innovation

Due to the individualistic nature ofthis stage Everett M. Rogers remarksit as the most difficult stage.

By: Shikha & Tarun


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Knowledge

Persuasion

Decision

Implementation

Confirmation

R

E

J

E

C

T

A

C

C

E

P

Tputs the innovation

into use

By: Shikha & Tarun


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Knowledge

Persuasion

Decision

Implementation

Confirmation

R

E

J

E

C

T

A

CC

E

P

T

The individualevaluates the resultsof

innovation-decision

already made

By: Shikha & Tarun


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Characteristics ofInnovations

which determine the

RATE OF ADOPTION

Characteristics:

Relative Advantage

Compatibility

Complexity

Trialability

Observability

By: Meenaz


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Relative advantage:

how improved an innovation is over the

previous generation. Several Analysis

The greater the perceived relative advantageof an innovation, the more rapid its rate of

adoption will be.

Compatibility:

The innovation has to be absorbed into an

individuals life. degree to which the product is consistent

with existing values and past experience ofthe adopters


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Complexity: whether it is easy to be adopted, if the innovation is

too difficult to use then individual will not likely

adopt it.Trialability: ability to make trials easy for new products.

New ideas that can be tried beforhand be adoptedmore quickly than innovations that are notdivisible.

Trialability reduces Uncertainity.

Observability: the extent that an innovation is visible.

The easier it is for individuals to see the results of aninnovation, the more likely they are to adopt it.

Visible will drive communication.

By: Meenaz


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Adopter categories

Everett M. Rogers in his book categorisesadopters into 5 Classes:

innovators,

early adopters,

early majority, late majority,

laggards

By: Rishikesh


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Innovators First to adopt an innovation. They are:

willing to take risks, Generally young in age,

Are from high social class, have greatfinancial lucidity.

Early Adopters Second fastest category of individuals who

adopt an innovation.

Early adopters are academically advancedand are socially forward. Maintain centralcommunication position

These individuals have the highest degree of

opinion leadership among the other adoptercategories.

By: Rishikesh


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Earl ajorit opt an innovationaftera var ing egree of

ti e t at is significantl longer t an t einnovators and earl adopters.

ave above average social stat s,

e rarel old positions of opinion leaders ip ina s ste .ate ajorit

e ave ighdegree ofdo bts.

dopt onl after the ajorit of societ hasadopted the innovation.

ave belo average social stat s, ver littlefinancial l cidit .

B : ranav


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Laggards The last to adopt an innovation.

They do not like to change . Generally are advanced in age.

Are focused on traditions.

By: Pranav


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Shortfalls of the Study It is an overly simplified representation of a complex

reality. Adopters often fall within differentcategories for different innovations: a currentlaggard can be an early adopter the next timearound.

The model is not predictive. It does not provide

insight in how well a new idea or product will dobefore it has gone through its adoption curve.

Customers often adapt technology to their ownneeds, so the innovation may actually change in

usage when moving from the early adopters to themajority of users.

Innovation is often not an free-standing process,but part of a larger historical setting. An example isthe QWERTY PC keyboard whose design originated

from 19th century mechanical typewriters.


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Thank You for your

AttentionYour Questions are

welcome

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