Managing Innovation: Rogers' Diffusion of Innovation Theory

Managing Innovation
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Table Of Contents
INTRODUCTION....................................................................................3
Rogers’ Innovation Diffusion Theory...............................................................3
Application of Roger’s Diffusion of Innovation theory............................................6
Application of Roger’s Diffusion of Innovation theory in the future development context...8
CONCLUSION.........................................................................................9
REFERENCES...........................................................................................10
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INTRODUCTION
Managing innovation can be defined in the manner that to come up with the
introduction of something new. It is similar to something which is concerned with inventing
something new in terms of the product and also needs to introduce into the world. This can be
managed into the very innovative manner. (Teece, D. J., 2016). Management innovation
somewhere defined in the manner that handling of all those kinds of activities something new
which is required to introduce which in practice means things like coming up with ideas,
creating, giving first preference and implementing them as well as putting them into practice.
One of the innovation theories is the base of analysis in this report. The analysis has been
done on the for the particular organisation with respect to the particular theory which explains
the historical development of one or more products and services. The research has been done
on the particular theory which recommends the possible future growth roadsof services and
products for the particular organisation. The chosen organisation is Lime. It is a
transportation company which is based in San Francisco, USA. It is the company which is
founded on a simple idea that all communities deserve access to smart, affordable mobility.
Rogers’ Innovation Diffusion Theory
This theory has been introduced in the year of 1962 by Everett Rogers. This theory
provides the factors which influence an individual’s choices about an innovation and the
foundation for understanding innovation adoption. This theory is in terms of broad spectrum
across many contexts which lends itself to being flexible. Under this theory, there are four
major factors of this theory which are named as the innovation, communication channels
used to broadcast information about the innovation, the social system existing around the
adopters/ non-adopters of the innovation and the time taken by the individuals to move
through the adoption process. (Ali, and et.al., 2016). Why an individual has to choose the
adopt and innovation or not has been understood through the interaction of different
components. This theory is the process or innovation decision which leads towards the
adoption or rejection of the innovation. In this process, the potential adopters have to move
through the five levels it presents. The first level is concerned about its function and the
seeking knowledge about the innovation. The second level is concerned about the persuasion
where about the innovation the potential adopter formulates an opinion. The third level is
about when a decision needs to be taken to adopt or reject the innovation. And in the last
stage which is fifth level where the adopter reaches to the confirmation stage where they seek
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reinforcement of their decision to adopt the innovation. There are four major principles of
diffusion of innovation theory which has been explained into the following manner:
 The innovation itself: The innovation plays a very important role in terms of business
as well as into the theory also. It is relative to the current knowledge of the analyzed
unit where the innovation is a broad category. (Thoe, N. K. and Baharum, B., 2020).
Innovation which is available for study could be considered as any idea, object or
practice which is perceived as new by an individual.
 Communication channels: Diffusion has been taken place among the people or
organisations. It gives the facility with respect to the information transfer from one
terms to the another. The patterns of communication must be established between
parties as a minimum for diffusion to other.
 Time: The innovations which has been going to adopted is necessary for the passage
of time. This has been adopted into the rarely manner in terms of the instantaneous
way.
 Social System: It is the which is the combination of external influences and the
internal influences under the social system . The external influences includes mass
media, organisational mandates. The internal influences includes the strong and weak
social relationships, distance from opinion leaders. The total influences on a potential
adopter represents the many roles and their combination in a social system.
Roger has identified that affect whether an innovation is adopted or not through the five
attributes which extends beyond the adoption process. It includes the relative change,
compatibility, complexity, trial ability and observe ability. Relative advantage can be defined
in the manner that how much greater or lesser the benefits of the innovation compared to the
alternatives. Compatibility tells about how much the innovation fits with the potential
adopter’s existing process or workflow. (James, E. and Taylor, A. eds., 2018). Under the
innovation process the more difficult to learn and adopt the innovation is perceived to be, the
less likely to be there to adopt it. This has happened due to the reason of high complexity to
be perceived. Triability has been defined in the manner that when the potential adopter has
the opportunity to try and test or experiment the innovation before making any decision in
this category then it comes under the trial parameter. (Aminullah, and et.al., 2017).
Observability occurs in that case when the innovation has been adopted and diffused across
the people within the cultural system who had not previously thought about adopting it or not
or at least change their minds to adopt the innovation. Under the process of diffusion of
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