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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?