Innovation and diffusion of

innovation

PRESENTED BY:-
ABHIMANYU MISAL
SMIT CHANDAN PANDA
 What is innovation

The process of translating an idea or

invention into a good or service that creates
value or for which customers will pay.
 Components of innovation

1. A hardware components :- consisting of

material or physical aspects of innovation.
2. A software components :- consisting of
information base that is needed to use the
innovation.
3. An evaluation information component :- that
is useful for decisions related to adoption of the
innovation.
Model of innovation

1. Innovator
2. Early adopter
3. Early majority
4. Late majority
5. Laggards
Types of innovation

1. Incremental innovation
2. Disruptive innovation
3. Architectural innovation
4. Radical innovation
 1. Incremental innovation

It is the process of optimization and further

development of existing products, services.
The purpose and benefits are optimization of
customer benefit , cost reduction
repositioning.
2. Disruptive innovation

Disruptive innovation that shape a new

market. Disruptive innovations mostly
originate in the low-end segment in less
attractive segments however, as the
maturity of technology and product
increases, they are gradually attacking the
mass market and thus replacing existing
service .
3. Sustaining innovation

Preserving or continuous innovation

refers to the improvement of existing,
similar to incremental innovation this
type of innovation focus on current
customer and their needs.
4. Radical innovation

Radical innovation is what we think of

mostly when considering innovation.   It
gives birth to new industries (or swallows
existing ones) and involves creating
revolutionary technology.   The airplane, for
example, was not the first mode of
transportation, but it is revolutionary as it
allowed commercialized air travel to develop
and prosper.
Benefits of innovation

1. Improve sales and customer relationships

2. Reduce waste and costs
3. Boost your market position.
Diffusion of innovation

The diffusion of innovation theory is used

extensively by marketers to understand the
rate at which consumers are likely to adopt
a new product or service.
Elements of diffusion of innovation

1. Innovation
2. Adopters
3. Communication channels
4. Time
5. Social system
Process

1. Knowledge
2. Persuasion
3. Decision
4. Implementation
5. Confirmation
Process
 you
ha nk
T