Module 8 Flashcards
(38 cards)
What are the five adopter categories in Rogers’ diffusion model?
Innovators, Early Adopters, Early Majority, Late Majority, Laggards
What does the Rogers’ adoption curve represent?
The number of adopters of an innovation over time
Who is an example of an “innovator” in Rogers’ model?
Richard Branson
What is the “chasm” in Moore’s model?
A gap between early adopters and the early majority that must be crossed for mainstream success
How are early and later adopters different according to Moore?
Their motivations and expectations differ fundamentally, not just gradually
Early adopter categories are qualitatively different from later adopter categories
What characterizes early adopters (early market) in Moore’s framework?
Technology enthusiasts (innovators), and visionaries (early adopters)
What characterizes the mainstream market in Moore’s model?
- Pragmatists (early majority),
- Conservatives (late majority),
- Skeptics (laggards)
Why washing machine was slow to adopt compared to refrigerator?
refrigerator (faster):
1. immediate universal value
2. simple integration
3. urbanization & food supply changes
washing machine (slower):
1. Infrastructure challenges
2. social & cultural barriers
3. high costs & complexity
4. perceived necessity
What are the three primary commercialization modes?
- By the innovator himself/herself
- third-party transfer (licensing/selling),
- hybrid (e.g., spin-off)
What are examples of commercialization via third parties?
Licensing intellectual property or selling it to another party
What does a hybrid commercialization strategy typically involve?
Creating a spin-off company to commercialize the innovation
What does in-house commercialization typically require?
- production capacity
- sales channels
- brand recognition
- rights to complementary technologies
What are benefits of in-house commercialization?
- improved product quality
- product differentiation
- lower costs
- entry into new markets
- increased use of an innovation (standard setting!)
What is a key requirement for successful licensing?
Strong intellectual property rights (e.g., patents)
Also requires markets for technology
What is meant by a “market for technology”?
A market where technologies can be bought, sold, or licensed
What is a real-world example of profitable licensing?
Licensing can be very profitable.
IBM, which earned over $1.25 billion from licensing/selling IP in 2011
What are the cons of licensing or selling innovation?
- requires considerable resources
- is often difficult to implement for small firms
When is a spin-off a suitable commercialization strategy?
Usually chosen in case of:
* climate misfit
* strategic misfit
* resource-related misfit
* focus on core business, i.e., no “willingness to cannibalize” existing products/technologie
What benefit do spin-offs offer to innovators?
- enables the innovator, to “test the commercial waters” for his/her innovations at relatively low cost
- the external partner assumes the main risk
- the innovator retains his/her option to reintegrate the spin-off
What are the 2 Determinants of Commercialization?
- Technology
- Timing
What is ZipDose technology?
3D-printed pills that rapidly disintegrate for easier dosing
Who commercialized pharmaceutical applications of ZipDose technology?
Aprecia Pharmaceuticals
Aprecia has the rights to more than 50 patents related to pharmaceutical applications of 3DP
What are the three timing strategies for market entry?
First movers, early followers, and late entrants
Explain the following timing of entry strategies:
First movers, early followers, and late entrants.
-
First movers
→ the first entrants to sell in a new product or service category -
Early followers
→ entrants that are early to market, but not first -
Late entrants
→ entrants that do not enter the market until the time the product begins to penetrate the mass market or later
