Friday, March 14, 2008

Diffusion of Innovation

I've been thinking about how companies adopt new technologies, and how that's changed over the past few years. Take a look at this chart:


The model explains how innovation is adopted by the purchasing consumer, and proposes that sales success to innovators and early adopters is a prerequisite to sales success with the early and late majority.

New thinking on this model proposes that selling to Innovators and Early Adopters requires different messages and positioning than selling to the Majority – that Early Adopters want to know “why” they should invest their time and energy with a new business model, and that satisfying this need requires messages that inspire. A terrific example is the iPhone -  “innovators” standing in line overnight to be the first users, when they could purchase the product off the shelves 3 days later. They don’t care what the phone does. They are a motivated army of Apple promoters because they are inspired by Apple messages of disruption, against the status quo, and elegant design.

Companies introducing innovative solutions to the marketplace need to consider this dynamic and create brand messages and positioning that inspire early Adopters to champion their products. Many companies introduce innovation by describing “what” their product does but that message doesn’t resonate with the Early Majority because it’s too early for them.