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

New-to-the-world (“Really New”) 1.Personal Computer14.Touch-Tone Phone 2.Microwave Oven15.Laser Surgery 3.Photocopier16.Computer Disk Drive 4.Pocket Calculator17.Organ Transplanting 5.Fax Machine18.Fiber-Optic Systems 6.Birth Control Pill19.Disposable Diaper 7.Home VCR20.MS-DOS 8.Communication Satellite21.MRIs 9.Bar Coding22.Gene-Splicing 10.Integrated Circuit23.Microsurgery 11.ATM24.Camcorder 12.Answering Machine25.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?