TEchNOLOGy TRaNSFER MODEL - Javna agencija

9
Product and Service Dissemination
Knowledge is when the group within the company which is the decision making unit starts to understand what the innovation is
about and how that relates to their needs.
Persuasion is when the decision-making unit develops a positive or negative attitude towards this particular innovation. They try to
evaluate if the innovation could or could not be useful for their business.
Decision is the third step and here the unit may try the product or a smaller version of it. After the trial they decide.
Implementation is vital for the adaptation. If something goes wrong here and the start up firm is not able to provide adequate
information the buyer may cancel the transaction or just not use the innovation.
Confirmation is the last step where the buyer needs to get feedback on whether they are using the innovation correctly.
The second element of the diffusion of the innovations process is communication channels and the influence of intermediaries
(opinion leaders, change agents, facilitators). For Rogers (2003), communication is “a process in which participants create and share
information with one another in order to reach a mutual understanding” (p. 5). This communication occurs through channels between
sources. Rogers states that “a source is an individual or an institution that originates a message. A channel is the means by which a
message gets from the source to the receiver” (p. 204). According to Rogers diffusion is a specific kind of communication and includes
these communication elements: an innovation, two individuals or other units of adoption, and a communication channel. On the
other hand, “diffusion is a very social process that involves interpersonal communication relationships” (Rogers, 2003, p. 19). Thus,
interpersonal channels are more powerful to create or change strong attitudes held by an individual.
But there are also some characteristics of the (potential) adopters determining the process of adoption:
• Previous practice
• Perceived, Felt needs/ problems
• Innovation adoption
• Demographic variables
• Personality variables
• Communication behavior
• Norms of social system
• Process integration / involvement
9.6.1 Key factors of dissemination: planning and creating a benefit
One of the most important insights when marketing products and services is the necessity of presenting uniqueness, of offering an
additional benefit, and of sustaining this additional benefit. This additional benefit is often called USP (Unique Selling Proposition),
Competitive Advantage, or Value Proposition. It comprises a product of an organization’s assets and capabilities that together make
up its so-called core competencies. A strategically optimally positioned innovation so developed, will transform into a competitive
advantage if 4 factors are met:
• Sustainability – The maintenance of this advantage over a period of time. It is difficult to copy this advantage
• Visibility / Recognizability – Out of the perspective of the customer the key issues of benefits and advantages are visible
• Relevance – importance of the innovation’s unique aspects in the customers’ perception
• Uniqueness – Is the product, the service, the idea really unique? Uniqueness could be a really new item or a bundle of existing ideas
which are unique in their combination
In general there are two different ways to gain a competitive advantage: differentiation or cost.
Figure 5: Two ways to competitive advantage
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