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INNOVATION STRATEGY (PATTERNS OF INNOVATION), WhatsApp Image 2021-03-26 at…
INNOVATION STRATEGY (PATTERNS OF INNOVATION
)
THREE IMPORTANT
TECHNOLOGY S-CURVES OF PERFORMANCE
S-SHAPE
Beginning improvement is really difficult ( not have great information or great input and have a lot of mistake )
You accumulate info and inputs improvement can start to accelerate as your effort has a bigger payoff
S-curve tend to flatten out again
You approach the limits of technology
You've solved all the easy and obvious problem
Improving technology starts to get really hard again.
We can analyze shape of curves to predict when one tech will pay off more than another.
For example, In this graph technology 2 has a steeper s-curve and in a the long run will pay off more for each of effort. Technology 3 starts at a higher performance level than technology 1 and technology 2. It interesting to note that in most of the period technology 1 and technology 2 will have a higher payoff to effort but at some point technology 3 will have the higher payoff. It will create a discontinuity
TECHNOLOGY CYCLE
TECHNOLOGY CYCLE
Anderson and tushman and utterback and abernathy showed that technology often flows in a cycle first a technological discontinuity will usher in an era of ferment where design will compete for dominance.
Once a dominant design has emerged, we enter the era of incremental change where many firms are competing to improve the dominant design.
The era of ferment thus tends to correspond to that slow initial period of the s-curve and the era of incremental change corresponds to that steep improvement part of the s-curve because even though the individual changes are incremental they are accumulating rapidly by many different firms.
DIFFUSION OF INNOVATION AND ADOPTER CATEGORIES
One person convince her friends to adopt an innovation.
They convince their friends to adopt innovation and They convince their friends to adopt innovation.
In a social referral process like this the number of adopters will increase exponentially until most of the market has been reached.
After the bulk of the market or the innovation has been tapped.
The number of new adapters starts to decline so you get curve with a bump in the middle note (x-axis: time)
Everett rogers noted that there were differences in people who adopted an innovation over its life cycle
Innovators
The first 2.5 percent which he termed innovators tended to be adventurous comfortable with risk and had access to substantial financial resource. ( Richard branson sailing his hot air balloon around the world)
Early Adopters
13.5 percent are called early adopters
People are better integrated into their social system and have greatest potential for opinion leadership.
They are avid consumers of technical information about products and services and like to have the latest and greatest thing. (Child that obsession with gaming equipment)
Early majority (34 percent)
People need to believe that a product is good and reliable before adopting but they will still adopt slightly before the average member of a social system. ( Meet your friend at the hot new cafe that everybody's talking about.)
Late majority (34 percent)
People approach innovation with a skeptical error and may not adopt the innovation until they feel pressure from their peers. ( a mom getting on tick tock)
Laggards (16 percent)
They base their decisions primarily upon past experience rather than influence from the social network and they must feel certain that a new innovation won’t feel before adopting it. (Grandpa and the ATM)
PEOPLE ALWAYS THINK
Innovation must unpredictable BUT Innovation is not really that unpredictable
BUT IT DOES HAVE RELIABLE PATIERNS WE CAN USE TO MAKE PREDICTIONS
✔️
Performance curves and diffusion curves thus reflect different processes but they are related only innovators would consider adopting a product that was in its early clunky stages and it’s the rapid rise in performance on the s curve that enables the innovation to tap the rest of the market.
ANTICIPATE TECHNOLOGY DISRUPTION
MPROVEMENTS IN TECHNOLOGY PERFORMANCE
TECHNOLOGY ADOPTION (INNOVATION ADOPTION)
These patterns mean that we can us data to anticipate which technologies might ultimately outperform other technologies and when
These patterns also help us to get a sense of when a technology is still growing how fast it’s likely to grow and when it will mature.
Collectively these patterns mean that the emergence of innovation and that takes over time isn’t so unpredictable after all
NURUL ASYIQIN BINTI SAIFUL BAHARI (H18A0475) INDIVIDUAL ASSIGNMENT (SUMMARY VIDEO 1)
