TECHNOLOGY DIFFUSION

TECHNOLOGY DIFFUSION:
The term diffusion refers to the spread of a new idea (product, technology, service or method) from the time of its invention or creation to its ultimate adoption by an increasing number of users in different circumstances.
Diffusion involves special types of communication method or system to help diffuse changes in practice, as well as change in knowledge or attitudes.
The diffusion process is complete when:
· A sufficient number of customers are using the innovation to pay back the amount used to develop it.
· it starts to make a profit
· A system is in place for assessing the need for changes to ensure the longevity of the technology.

Many organizations, such as Indian Space Research Organization (ISRO), Atomic energy(AE), Defense Research and Development Organization(DRDO), Council of Scientific and Industrial Research (CSIR) have set up their own mechanisms to diffuse their innovations and technologies.
IMPORTANCE OF DIFFUSION:
· Diffusion helps the organization to make most of its technical innovation.
· Companies can sell their technologies to different companies by understanding their needs.
· For example firm manufacturing telephone switching equipment for temperature climate and stable power supply should try to make equipment for tropical climate and unstable power supply.
· Technology that becomes obsolete in one market may still be useful in other markets.
· For example some technology India acquired from abroad in which hi-tech field is already out lived their life in their own countries.

PROCESS OF DIFFUSION:
Completed in five stages:
1) Individual action
2) applying basic research
3) industrialization
4) commercialization
5) full scale diffusion
INDIVIDUAL ACTION:
It involves 8 steps or phases to the innovation and diffusion process.
a) Creation of favorable conditions
b) Identification of unfulfilled needs (ex. modification required on existing technologies or creation of new technologies )
c) Definition of the problem
People marketing translate their perception to develop ment section. People in development section conveys to Research. The Research department translates their findings to development as marketing section. This way individual from each section and participates in innovation.
d) Preparation for problem solving:
Information collected on
*what customer really want?
· What other has done to solve it?
· What solutions have not been successful?
e) Incubation:
Conductive atmosphere is provided to promote creative thinking and stimulate ideas.
f) Inspiration: Superiors, coworkers encourage the creative work.
g) Externalization: Preparing the idea for others outside the organization also to develop and evaluate.
h) Influence: Influence Socio-Political leadership to gain acceptance for a generated solution.

2) APPLYING BASIC RESEARCH:
At this stage linking basic scientist work, applied scientist work and market to visualize market possibilities of new ideas.
3)INDUSTRAIALIZATION: At this stage, partial and profitable application of technology with the cooperation between Research personnel and marketing and engineering personnel for putting to industrial use for initial product process.
4) COMMERCIALIZATION:
Organizing trials and mechanisms for the transfer of technology and managing technological life cycle. The trials include
· Small scale pilot testing
· Launching innovation trials, prepare check manuals, for ease of understanding.
· Communication activities: Marketing people develops new promotional programme. Market is identified are targeted and enterprise develops capabilities to manage diffusion.



6) FULL SCALE DIFFUSION:
This is the last stage of comprehensive innovation/diffusion process. It includes a search for a wider range of potential markets, new industries new geographic regions, new market segments that have not been explored, and new ways to couple the innovation with other innovations. The way that electronics and computers have diffused throughout the industry and the world is prime example of full scale diffusion.

DEVELOPING A DIFFUSION STRATEGY:
TAKING THE TECHNOLOGY TO THE MARKET PLACE:
Developing a diffusion strategy involves a number of activities and many people.
1). Assess the Organizational Climate:
It includes the need to orient to the future, for timely action, to anticipate changes, threats, and opportunities, and for all members of the organization to play a role in launching an innovation.
Studies of successful diffusion show that presence of dedicated people who persist in their efforts. Such people are call ‘technology champions”
Or “change agents”
2) understand the role of “Technology Champion “:
He must play a bridge role within and outside the organization. Within the organization he should provide communications between the marketing and the R&D organization. In market driven organizations, the technological innovation come from the marketing. R&D reaction comes in the form of guidance on what is technically feasible and ideas from scientific circles.
When introducing a new technology to potential customers outside the organization he must explain the need for the technology. Demonstrations, films or other techniques can help the customer to become aware of new technology. He must show real interest in the user’s problems and prove it in his behavior. He should be sensitive to the user’s needs and help the user to overcome problems he encounters.
3) Define the Profile to the Technological Innovation:
Different types of technological innovation require different diffusion efforts. If the technology is new to both the market and the company, adopters of the technology have to be educated on its use. Diffusion efforts must stress the superior attributes of the new technology.
4) Use Opinion Leaders:
The identification of opinion leaders, assessment of their orientation (towards acceptance or rejection), assessment of their scope of influence, and development of ways to influence them is the important part of the diffusion strategy.
5) Develop a Communication Strategy:
Developing a communication strategy is to achieve successful communication the organizations must relate the innovation’s attributes to customer needs. The change agent must show, through its communications that it wants to be useful by meeting customer needs and is willing to learn from its customers.
Communications: Two areas of communication are within the organization (internal communication and with agencies outside the organization is external communication).

INTERNAL COMMUNICATION: The innovator must describe the innovation in terms that enable others to work on its behalf. Thus facilitating communications between R&D and marketing is a continuing management task. The message to internal corporate decision-makers should include realistic estimates of the initial resource requirements, staff, time, and money required to launch the innovation.
EXTERNAL COMMUCIATION: It is guided by the
a) attributes of the innovation and
b) The characteristics of the target market of the technological innovation.
a) ATTRIBUTES OF INNOVATION:
· relative advantage,
· compatibility
· complexity
· testability
· visibility
i) The relative advantage of a new idea helps determine its rate of adoption. Companies can reduce the perceived risk of trying an innovation by offering performance guarantee (like yield for a new process). Societal factors may also affect the customer’s perception of relative advantage. For example the oil crisis increase interest in energy saving technologies for automobiles, power generation etc.
ii) Compatibility is the degree to which potential adopters see an innovation as consistent with their values, experiences and needs. For example many organizations are diversifying into high technology computers and communication.
iii) Complexity is the degree to which an innovation is relatively difficult to understand and use. For example the user-friendly menu driven software have overcome user’s resistance to perceived complexity.
iv) Testability is the degree to which potential adopters can experiment with an innovation on a limited basis. For example, modular switching allows for testing the basic building blocks.
v) Visibility is the degree to which the results of a new technology are apparent to others. For example when digital technology was introduced in films they could perceive in significant difference in watching the film.
b) CHARACTERISTICS OF THE TARGET MARKET:
Communication channels: Two principal modes of communication for message about innovation are the mass media (radio, TV, film, mobiles, newspaper, magazines) and interpersonal channels (word of mouth, trade shows, demonstrations etc.)
The mass media are relatively quick in beaming the message to many people. But lack of feedback about customer reception will make the media less effective than interpersonal communication in molding attitudes to the new technology. This may be suitable for food preservation/processing with potential for large number of customers spread over a wide area.
Interpersonal communication can be a dialogue between the innovator and the potential customer, a strong relationship exists between understanding a technological innovation and begin influenced to buy.