Diffusion of innovations: essence, stages, innovative roles of enterprises

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:43

The innovation process involves the preparation and implementation of product changes and is formed from interrelated phases. The result is a implemented and used solution. In the implementation of this process, the diffusion of innovations is of particular importance. The essence, stages, innovative roles of enterprises in this phenomenon will be considered in the article.

General information

What is meant by innovation diffusion? This phenomenon implies the spread in time of a once mastered and used solution in new places or conditions. Their development is cyclical. This is taken into account in the formation of flexible management systems and organization of the economy. The process of diffusion of innovations proceeds according to certain patterns. In the course of it, a massive dissemination of knowledge is carried out, which has received material expression in the form of new technologies and products.

Product launch

Having an idea of what is commonly called the diffusion of innovations, one should dwell in detail on the stages of creating a new object. There are four of them:

1. Research.
2. Project.
3. Production.
4. Commercial.

Characteristic

At the first stage, the concept of the future product is created directly. It is based on the scientific, technical and economic potential of the organization, the results of the analysis of data on the expected demand, the current market situation, opportunities and limitations in the development of products. Equally important is the assessment of the competitive positions of other manufacturers. As a result of the research stage, a conclusion is formed about the key parameters of the new product, the technical feasibility of its release, as well as the economic feasibility of creating it.

At the next stage, design is carried out based on the developed concept. During it, a detailed study of the future product, developmental development, creation and testing of prototypes, and drawing up drawings are carried out. At the production stage, environmental, planned and organizational preparation for the release and subsequent development of the facility is carried out. During the commercial stage, a set of measures is implemented to promote a new product on the market. These include, among other things, marketing research, the creation of a sales and service system. Actually, at this stage there is a diffusion of innovations.

Product lifecycle

It involves two key steps:

1. New product development.
2. Commercialization.

The first stage involves implementation costsresearch and development activities. After the creation of the product, its introduction to the market and sale begins. Commercialization consists, in turn, of the following steps:

1. Rise - increase profits by increasing sales volume.
2. Stabilization - achieving maximum sales and maintaining this level for a certain time.
3. Recession - decrease in sales.

The latter is due to the obsolescence of the product, a decrease in consumer interest in it.

Classification of innovations

Considering the concept of diffusion of innovations, it should be noted that its effectiveness is based on the separation of new products adopted in practice. So, depending on the level of novelty, fundamental (basic) and current (improving) innovations are distinguished. The former are fundamentally new products and technologies for a specific area. Enhancement products are upgraded products and services that are on the market. It is necessary to emphasize the importance of this classification and note that only basic innovations can provide competitive advantages to the organization in the long term. Accordingly, the company will take a leading position in the market.

In terms of content, innovations can be product, technological, organizational and economic. The first are related to the improvement of a particular product. The second relate to the development or modernization of equipment or technology. The latter touch upon the problemsfinancial, economic, organizational and managerial spheres.

Theory of diffusion of innovations

The product must embody a new or improved idea, successfully introduced to the market and, accordingly, profitable. In practice, various plans have been developed, according to which the diffusion of innovations is carried out. Let's take one of them. It consists of 11 steps:

1. Formalization of the idea. The author formulates his proposal for the development of innovation.
2. Collection of requirements for scientific and technological potential, which is necessary to improve the idea in this production sector.
3. Performing marketing and technological expertise of the project, researching the market situation, forming a sales volume forecast.
4. Developing a business plan, creating strategic alliances, choosing sources of finance.
5. Building a team and infrastructure, management systems, establishing operations.
6. Performing applied and basic research.
7. Implementation of development activities, sample creation.
8. Patenting and legal support.
9. Preparing the product for market release. It includes licensing, certification, pre-production activities, creation of a service department.
10. Direct release to the market. During this stage, a marketing and sales policy is developed and implemented, distribution channels are formed.
11. Expansion of the market segment.

As you can see, the diffusion of innovations is based primarily on marketing analysis. Its results make it possible to develop truly new solutions for improving a product or creating a previously unknown object. Of no small importance is the study of consumer demand. After all, if the product is not interesting to the buyer, the diffusion of innovations will lead nowhere. The innovation will spread to the market, but will not be used.

Internal work in an organization

The company's innovative activities are primarily focused on increasing the competitiveness of the products it produces. For the work of the company to be effective, it is necessary to form a team of the best employees who would be freed from current tasks. This will allow them to focus directly on the product improvement process.

It should be said that innovative activity may not be constant, especially in small enterprises, where it is, in general, impossible. At the same time, the company must have an employee responsible for the effectiveness of the innovation. It should ensure the timely identification and replacement of obsolete products, technologies, and equipment. This employee is responsible for a comprehensive, thorough analysis of activities, the development of innovative operations.

Important moment

Enterprise management should be carried out in such a way that staff perceive innovationnot as a threat, but rather as an opportunity. Each employee needs to be aware that innovation is the most effective way to save and strengthen the company. Moreover, staff must understand that innovation guarantees employment and increased well-being.

Conclusion

The main goal of the enterprise is to maximize income. The main task of innovative work is to obtain a certain amount of innovation in the form of newly created or improved products, technologies, raw materials, management methods, and so on. This activity is key to profit maximization. Innovative work can be carried out in different directions. They are embodied in projects focused on the development or mastering of new products or technologies. Managerial staff should perform a comparative analysis of the profitability of each of the areas of innovative work. This is especially true for domestic companies, since many of them are experiencing a crisis and do not have sufficient funds to carry out innovative activities. Comparative analysis will allow you to compare the profitability of alternative directions. Research indicators are the most important tool for substantiating decisions made in the field of innovation.