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

The innovation process involves the preparation and implementation of product changes and is formed from interrelated phases. As a result, a solution is implemented and used. In the implementation of this process, 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 the diffusion of innovation? This phenomenon involves the spread in time of the once-mastered and used solution in new places or conditions. Their production is of a cyclic nature. This is taken into account in the formation of flexible management systems and organization of the economy. The process of innovation diffusion proceeds according to certain regularities. In the course of it, the mass dissemination of knowledge, which has materially expressed in the form of new technologies and products, is carried out.

Output

Having an idea of what is usually called diffusion of innovations, it is necessary to dwell in detail on the stages of creating a new object. There are four of them:

1. Research.
2. Project.
3. Production.
4. A commercial.

Characteristic

At the first stage, the concept of the future product is created directly. It is based on the scientific and technical and economic potential of the organization, the results of analysis of data on the expected demand, the current market situation, opportunities and constraints in the development of products. Equally important is the evaluation of the competitive positions of other producers. 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 the creation.

At the next stage, based on the developed concept, design is carried out. In the course of it, detailed elaboration of the future product, development of experimental designs, creation and testing of prototypes, drawing up of drawings is carried out. At the production stage, the ecological, planned and organizational preparation of 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. Among them, among others, include marketing research, the creation of a sales and service system. Actually, at this stage there is a diffusion of innovations.

Product Life Cycle

It involves two key steps:

1. Development of a new product.
2. Commercialization.

The first stage involves spending on the implementation of research and development activities. After the creation of the product, it begins to be marketed and sold. Commercialization consists, in turn, of the following stages:

1. Raise - increase in profit due to an increase in the sales volume.
2. Stabilization - achieving maximum sales and maintaining this level for a certain time.
3. Decline - decrease in sales volume.

The latter takes place due to obsolescence of the product, a decrease in interest to it from consumers.

Classification of innovations

Considering the concept of diffusion of innovations, it should be noted that its effectiveness is based on the practice of dividing new products. Thus, depending on the level of novelty, fundamental (basic) and current (improving) innovations are singled out. The first are fundamentally new products and technologies for a specific area. Improving products are modernized goods 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 the organization's competitive advantages in the long term. 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 concern the development or modernization of technology or technology. The latter affect the problems of the financial, economic and organizational and managerial spheres.

The theory of diffusion of innovations

The product must embody a new or improved idea, successfully implemented on the market and, accordingly, making a profit. In practice, various plans have been worked out, on which innovation diffusion takes place. Let us cite one of them. It consists of 11 steps:

1. Formalization of the idea. The author formulates his proposal for the development of innovation.
2. Collecting the requirements for scientific and technological potential, which is necessary to improve the idea in this manufacturing sector.
3. Implementation of marketing and technological expertise of the project, the study of the market situation, the formation of the forecast of the sales volume.
4. Development of a business plan, the creation of strategic alliances, the choice of sources of finance.
5. Formation of the team and infrastructure, management systems, the establishment of operations.
6. Implementation of applied and fundamental research.
7. Implementation of development activities, creating a sample.
8. Patenting and legal support.
9. Preparation of the product for release on the market. It includes licensing, certification, pre-production activities, creation of a service department.
10. Immediate release to the market. During this stage, marketing and implementation policies are developed and implemented, distribution channels are formed.
11. Expansion of the market segment.

Apparently, the diffusion of innovation is based primarily on marketing analysis. Its results allow us to develop really new solutions to improve the product or create an unknown object. Of no small importance is the study of consumer demand. After all, if the product is uninteresting to the buyer, diffusion of innovations will lead to nothing. The innovation will spread to the market, but will not be used.

Internal work in the organization

The innovative activity of the company is focused primarily on increasing the competitiveness of products, which it produces. To the work of the firm was effective, it is necessary to form a team of the best employees who would be exempt from the current tasks. This will allow them to concentrate directly on the process of product improvement.

It should be said that innovation activities may not be permanent, 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 timely detection and replacement of obsolete products, technologies, equipment. This employee is responsible for a comprehensive, thorough analysis of activities, the development of innovative operations.

An Important Moment

Enterprise management should be implemented so that staff perceive innovation not as a threat, but as a sufficiently favorable opportunity. Every employee needs to be aware that innovations act as the most effective way to maintain and strengthen the company. Moreover, staff should understand that innovations guarantee employment and welfare.

Conclusion

The main goal of the enterprise is the maximization of income. The main task of innovation work is to obtain a certain number of innovations in the form of newly created or improved products, technologies, raw materials, management methods and so on. This activity is key to maximizing profits. Innovative work can be conducted in different directions. They are embodied in projects aimed at developing or developing new products or technologies. Management personnel should perform a comparative analysis of the profitability of each of the areas of innovation. This is especially true for domestic companies, as many of them are experiencing a crisis and do not have enough financial resources to carry out innovation activities. Comparative analysis will make it possible to compare the profitability of alternative directions. The research indicators are the most important tool for justifying decisions in the field of innovation.