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Innovation Diffusion Theory

Innovation Diffusion Theory describes how new ideas and technologies spread in a social system.

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Adoption Curve
Innovators Early Adopters Early Majority Late Majority Laggards

What is:

Innovation Diffusion Theory

In simple words, imagine:

Like how everyone starts using a new slang word after a few popular kids use it first.

Innovation Diffusion Theory explains how new ideas and products spread through a population It looks at how different groups of people adopt innovations at different times:

  • Innovators: The first to try new things
  • Early adopters:  Next to follow
  • Early majority:  They adopt after seeing others' success
  • Late majority:  They are more cautious and adopt later some text
  • Laggards: The last to adopt

Explain it to Grandma:

This is like how everyone in the neighbourhood starts using compost after one gardener sees great results. It starts with a few people, and then the idea spreads like a wave, improving everyone’s garden. It’s all about how good ideas catch on and spread, making the whole community bloom.

Business Cases:

Pfizer
Fitbit
LendingClub
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Pfizer
Pfizer-BioNTech COVID-19 Vaccine
Pharmaceuticals

Pfizer utilised Innovation Diffusion Theory in the global distribution of its COVID-19 vaccine. The company engaged opinion leaders and used mass media to accelerate the adoption of the vaccine worldwide.

Result
Highly successful
The vaccine was rapidly adopted across the globe, playing a critical role in the fight against the pandemic.
Fitbit
Fitbit Wearables
Wearable Tech

Fitbit applied Innovation Diffusion Theory when launching its wearables, targeting health-conscious early adopters and using their success stories to promote the product to a broader audience.

Result
Successful
Fitbit quickly became a leader in the wearable tech industry, with widespread adoption among fitness enthusiasts.
LendingClub
Peer-to-Peer Lending Platform
Peer-to-Peer Lending

LendingClub used Innovation Diffusion Theory to introduce its peer-to-peer lending platform, initially targeting tech-savvy investors before expanding to a broader market.

Result
Successful
LendingClub has grown into one of the largest peer-to-peer lending platforms, with substantial adoption among both borrowers and investors.

Academic Research:

Innovation Diffusion Theory

Authors:

Everett M. Rogers

Paper Link

https://archive.org/details/diffusionofinnov00roge_0

Year Researched

1962

Summary:

Similar to the DOI, Innovation Diffusion Theory focused on how new ideas spread within a society. It emphasizes the role of communication and social systems in the adoption process. The theory helps to understand why some innovations are adopted quickly while others take longer, or fail to be adopted at all.

Some links

  • https://open.ncl.ac.uk/theories/2/diffusion-of-innovations
  • https://files.eric.ed.gov/fulltext/ED231712.pdf
  • http://www.smhp.psych.ucla.edu/pdfdocs/systemic/rogers%20diffusion.pdf
  • https://www.britannica.com/topic/diffusion-of-innovations
  • https://link.springer.com/article/10.1007/s11423-006-0009-7