The innovation process involves the preparation and implementation of product changes and is formed from interconnected phases. The result is an implemented and used solution. In implementing this process, diffusion of innovation 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 diffusion of innovation? This phenomenon involves the spread in time of a once mastered and used solution in new places or conditions. Their development is cyclical in nature. This is taken into account in the formation of flexible management systems and the organization of the economy. The process of diffusion of innovations proceeds according to certain laws. During it, the mass dissemination of knowledge that has received material expression in the form of new technologies and products.
Output
Having an idea of what is commonly called the diffusion of innovation, we should dwell in detail on the stages of creating a new facility. There are four of them:
- Research.
- Design.
- Production.
- 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 estimated demand, the current situation on the market, 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 drawn about the key parameters of the new product, the technical feasibility of its release, as well as the economic feasibility of creating.
At the next stage, based on the developed concept, design is performed. In the course of it, a detailed study of the future product is carried out, experimental development, creation and testing of prototypes, drawing up drawings. At the production stage, environmental, planned and organizational preparations for the release and subsequent development of the facility are carried out. During the commercial stage, a set of measures is being taken to promote a new product on the market. These include marketing research, the creation of a marketing system and after-sales service. Actually, at this stage there is a diffusion of innovations.
Product life cycle
It involves two key steps:
- New product development.
- Commercialization.
The first stage involves the costs of the implementation of research and development activities. After creating the product, it starts bringing it to the market and selling it. Commercialization, in turn, consists of the following steps:
- Rise - increase in profits due to increase in sales volume.
- Stabilization - achieving maximum sales and maintaining this level for a certain time.
- Recession - decrease in sales.
The latter is due to 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 practical separation of new products. 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 particular area. Improving products are modernized products and services that exist on the market. It is necessary to emphasize the importance of this classification and note that only basic innovations can provide a competitive advantage for an organization in the long run. Accordingly, the company will occupy a leading position in the market.
According to their content, innovations can be product, technological, organizational and economic. The first are related to the improvement of a certain product. The second concerns the development or modernization of equipment or technology. The latter affect the problems of financial, economic and organizational management.
Theory of diffusion of innovation
The product must embody a new or improved idea, successfully introduced into the market and, accordingly, profitable. In practice, various plans have been worked out, according to which the diffusion of innovations is carried out. Here is one of them. It consists of 11 steps:
- Formalization of ideas. The author formulates his proposal for the development of innovation.
- Collection of requirements for scientific and technological potential, which is necessary to improve ideas in this manufacturing sector.
- Implementation of marketing and technological expertise of the project, market research, forecasting the sales volume.
- Development of a business plan, creation of strategic alliances, selection of sources of finance.
- Team building and infrastructure, management systems, operations.
- Performing applied and basic research.
- Implementation of development activities, the creation of the sample.
- Patenting and legal support.
- Preparation of the product for launch on the market. It includes licensing, certification, pre-production activities, the creation of a after-sales service.
- Direct market launch. During this stage, a marketing and implementation policy is developed and implemented, distribution channels are formed.
- Expansion of the market segment.
As you can see, the diffusion of innovation is based primarily on marketing analysis. Its results allow us to develop truly new solutions to improve the product or create 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 innovation will not lead to anything. The innovation will spread to the market, but will not be used.
Organization internal work
The innovative activity of the company is primarily focused on improving the competitiveness of the products it produces. For the company’s work 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 concentrate directly on the product improvement process.
It should be said that innovation activity may not be constant, especially in small enterprises, where this, in general, is 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, development of innovative operations.
Important point
Enterprise management should be carried out in such a way that personnel perceive innovation not as a threat, but as a rather favorable opportunity. Every employee needs to be aware that innovations are the most effective way to preserve and strengthen the company. Moreover, staff must understand that innovation guarantees employment and wealth.
