Diffusion of Innovations

January 23, 2007

NPD in Perspective Diffusion of Innovations

Rogers (1962, 1983, 1995)

NPD in Perspective Diffusion of Innovations

Rogers (1962, 1983, 1995): Product Factors Influencing Diffusion

Speed: Relative Advantage (+) Compatibility (+) Complexity (-) Trialability (+) Observability (+) Risk (Ostlund) (-)

NPD in Perspective Diffusion of Innovations

Rogers (1962, 1983, 1995) People Factors Influencing Diffusion

Speed:

Crossing the Chasm by Geoffrey Moore

NPD in Perspective Diffusion of Innovations

Rogers (1962, 1983, 1995) Bass (1969)

NPD in Perspective Diffusion of Innovations

Rogers (1962, 1983, 1995) Bass (1969):

The Model:

P(T) = p + (q/m) Y(T)

An Example of the Bass Model: Corn Adoption by Iowa Farmers

NPD in Perspective Are all new products the same?

Continuity Continuum (Robertson ‘71)

Commonly accepted categories: New-to-the-World New Category Entries (New Lines for Co.)

Additions to Product Lines Product Improvements Cost Reductions Repositionings

NPD in Perspective

NPD in Perspective New-to-the-world (“Really New”)

1. Personal Computer 14. Touch-Tone Phone 2. Microwave Oven 15. Laser Surgery 3. Photocopier 16. Computer Disk Drive 4. Pocket Calculator 17. Organ

Transplanting 5. Fax Machine 18. Fiber-Optic Systems 6. Birth Control Pill 19. Disposable Diaper 7. Home VCR 20. MS-DOS 8. Communication Satellite 21. MRIs 9. Bar Coding 22. Gene-Splicing 10. Integrated Circuit 23. Microsurgery 11. ATM 24. Camcorder 12. Answering Machine 25. Home Smoke Alarm 13. Velcro Fastener ** Source: R&D Magazine 1992

Part II: Strategic Issues for NPD

The Pioneering Advantage: Myth or Reality?

The Pioneering Advantage

Reasons Why It Should Exist Consumer-Based Reasons

Producer-Based Reasons

The Pioneering Advantage

Reasons Why It Should NOT Exist

The Pioneering Advantage

Myth or Reality?