In Chapter 5, the book touches on Diffusion of Innovation on page 152 but I wanted to provide you with a little more detail on the topic. It's really important when you think about change- this could be the kind of change that comes when you develop a new product, modify an existing one, or make any kind of organizational change. It's all about how to people adopt (or accept) innovation.

The process by which the use of an innovation- whether a product, a service, or a process- spreads throughout a market group, over time and across various categories of adopters is diffusion of innovation. The theory around diffusion of innovation helps marketers understand the rate at which consumers are likely to adopt a new product or service. It also helps them to identify potential markets and predict sales for their new products.

In the diffusion of innovation theory, five adopter groups have been identified: innovators, early adopters, early mainstream, late mainstream, and laggards (or lagging adopters). I've attached a visual representation of the diffusion of innovation- you will notice it makes a bell curve.

Innovators- are buyers who want to be the first to have a new product or service. They enjoy taking risks and are regarded as highly knowledgable. They are generally very well informed about a certain product category. While they represent only 2.5% of the total market for a new product, they are crucial to the success of any new product because they usually talk a lot about the products and review them vocally.

Example: Think of a person who drives a self-driving car prototype as an innovator OR think of Steve Jobs and the folks at Apple as they created iPhones/iPads, etc.

Early Adopters- This group consists of about 13.5% of all buyers. They generally don’t take as much risk as innovators (they wait to see what innovators say about a product) but they are regarded as opinion leaders for particular product categories as the other three buyer categories often rely on their feedback.

Example: When the iPhone was first released, the very first buyers would be early adopters.  

Early majority- this group represents about 34% of all buyers. This group is crucial because a product usually doesn’t become profitable until this large group purchases it. If this group never becomes large enough, the product or service can fail. The early majority doesn’t take as many risks and tends to wait until the bugs are worked out of a particular product or service.

Example: When the bugs were worked out on the iPhones, this group bought. They waited until the product was purchased and reviewed by the early adopters.

Late majority- this group also represents about 34% of all buyers. This is the last group of buyers to enter a new product market. When they do, the product has achieved its full market potential. By the time this group enters the market, sales tend to level off or may be in decline.  

Example: After several versions of the iPhone were released, they finally decided to ditch their Blackberry and purchase.

Laggards- this group represents about 16% of the market. These consumers like to avoid change and rely on traditional products until they are no longer available.

Example: Laggards STILL use flip phones. They will probably use flip phones until they are no longer manufactured. They resist change at all costs.

I use the example of phones but it's important to keep in mind that the Diffusion of Innovation can apply to just about anything. It's also important to remember that people are not set in their adopter group for every product- it can vary. For example, my stepdad would be a laggard when it comes to phones (he still uses a flip phone). However, he might be considered an early adopter or early mainstream when it comes to golf clubs. He's much more likely to purchase a newer model of golf club than a new phone. So....don't think of people as being stuck in their adopter group, it can certainly vary based on the product/service/process.

What affects the rate of adoption?

Some of the things that affect the rate include:

Relative advantage- this is the degree to which the innovation appears superior to existing products. Example: Electric cars were adopted quickly because of their advantage over gas powered cars.

Compatibility- The degree to which the innovation fits the values and experiences of potential customers. Example: Electric cars are driven the same way as gas powered cars so they fit the experiences of drivers.

Complexity- The degree to which the innovation is difficult to understand or use. Example: This is where self-driving cars may struggle because it's hard to understand how that could be safe.

Divisibility- The degree to which the innovation may be tried on a limited basis. Example: consumers can test-drive electric or self-driving cars which helps increase the adoption rate.

Communicability- The degree to which the results of using the innovation can be observed or described to others. Example: If you can easily describe or demonstrate how to use a self-driving car and how the technology works, you will increased adoption.

Discussion Board Assignment Instructions:

1. Identify a product or service you use where you may be considered an early adopter. Explain.

2. Identify a product or service you use where you may be considered early mainstream or late mainstream. Explain.

3. Identify a product or service you use where you may be considered a laggard. Explain. (We are all laggards in some area. Confession- I still love have the old school Uggs but I don't wear them in public anymore).  

The Mayo Clinic and IBM have partnered in a venture to improve medical imaging technology. The clinic’s current technologies are not keeping up with the intense processing demands required to analyse digital medical images such as x-rays, CT scans, and MRIs. Bradley Erickson, chairman of radiology at the Rochester-based Mayo Clinic, was quoted in Computerworld as saying, "We are facing significant problems in medical imaging because the number of images produced in CT scanners basically tracks Moore’s Law. My eyes and brain can’t keep up. I see more and more images I have to interpret. ... The innovation here is to take computer chips and extract the information in these increasing number of images and help present it usefully to the radiologist.” This is a case of technology outpacing the human ability to manage the information it produces. In such cases, we turn to technology for solutions. For doctors and radiologists at the Mayo Clinic, standard computer processors cannot keep up with their need to analyse digital images. So, they are turning to the Cell processor from IBM in hopes that it will provide a solution. The Cell processor is the chip that makes Sony’s PlayStation video-game console the most powerful console in the industry, according to many game enthusiasts. The Cell processor was created in a joint effort by IBM, Sony, and Toshiba, with an architecture that is specially designed to accelerate graphics processing. Researchers at IBM and Mayo believe that it could turn a 10-minute CT image analysis into a four-second job. One of the tasks in which the Cell processor could be useful is in comparing scan images of a patient over time. For example, to track the progression or regression of cancer in a patient, physicians compare CT scans of the tumour over time to look for change. Changes are often too subtle for the human eye to notice, so software that implements a complex algorithm is used to analyse the photos. Using a standard PC processor, the algorithm may take several minutes to complete. While this may not sound like much, typically a physician needs to run several analyses in sequence, consuming significant amounts of time. The process of transforming 2-D images into 3-D—something the Cell processor was designed for—also requires significant time using traditional processors. With the Cell processor, these tasks might be completed in a matter of a seconds. Whether it is working to save a life, to finish design specifications for a new product, or to analyse stock market trends, the difference between a minute and a second can mean success or failure. For professionals in most industries, having the best processor for the task at hand, and matching it with the best hardware and software, provides them with a winning solution. [Source: Chapter 3, R. M. Stair and G. W. Reynolds, Principles of Information Systems: A Managerial Approach, 9th ed. Cengage, 2010.]

a) Explain why the Cell processor is the best choice for the Mayo Clinic’s tasks?

b) In what other industry and scenario might the time play an important role when it comes to processing? Explain how reducing minutes to seconds has an impact in such a scenario.

According to The Myths Of Innovation book by Scott Berkuns, innovation happens randomly, and that anyone can stumble across a new breakthrough. Do you think this might happen to you one day? please explain

"Economics of Innovation and Intellectual Property Rights:
- Patents, copyrights, and trademarks - R&D races, digital innovation- regulation of digital platforms."

Write a half-page post, adding your own analysis and comments.

The following data is provided for a market 500 Index:                                                               
                                                                                    
                        Year     Total return     Year     Total return                 
                        2010    9.0%                2020    2.0%                
                        2011    11.0%             2021    3.0%                
                        2012    -3.0%               2022    3.0%                
                        2013    1.0%                2023    -1.0%               
                        2014    5.0%                2024    5.0%                
                        2015    -12.0%             2025    4.0%                
                        2016    3.0%                2026    -3.0%               
                        2017    4.9%                2027    3.5%                
                        2018    -7.0%               2028    7.0%                
                        2019    0.1%                2029    5.8%                
                                                                                    
Calculate the 20-year arithmetic average annual rate of return on the market Index.

A) 2.07%

B) 0.10%

C) 2.59%

D) 5.62%                                                          

The stockholders’ equity section of Fleming Corporation at December 31, 2009, included the following: 6% preferred stock, $100 par value, cumulative, 15,000 shares authorized, 10,000 shares issued and outstanding $1,000,000 Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding $2,000,000 Dividends were not declared on the preferred stock in 2009 and are in arrears. On September 15, 2010, the board of directors of Fleming Corporation declared dividends on the preferred stock to stockholders of record on October 1, 2010, payable on October 15, 2010. On November 1, 2010, the board of directors declared a $2.50 per share dividend on the common stock, payable November 30, 2010, to stockholders of record on November 15, 2010.

Prepare the journal entries that should be made by Fleming Corporation on the dates indicated below:

September 15, 2010

November 1, 2010

October 1, 2010

November 15, 2010

October 15, 2010

November 30, 2010

Please show work and explain why

Use the following ratio information for Johnson International and the industry averages for Johnson’s line of business to construct the DuPont system of analysis for both Johnson and the industry.

1. In the lowe left corner of the Excel 2010 window. What does blue square icon in the status bar ( outlined in red) indicates?

a. It means that sheets is in ready mode

b. it means that current shape fill color is blue

c. It's the stop button for the macro that is currently being recorded.

d. It means that the current workbook is open in protected mode

e. It means that Excel is currently refreshing local data from the external data sources.

2. Excel backstage allows you to do many workbook related activities such as opening, savings, setting permissions, printing and sharing. Which of the following is not a tab available in the backstage?

a. print

b. share

c. help

d. Info

e. Permissions

3. Bellow top right corner of the Excel 2010 window, what is the purpose of the small button ( outilned in red) that appears right above the vertical scrollbar?

a. It splits the window vertically

b. It locks the verical scrollbar

c. It hides the vertical scroolbar

d. It freezes the panes around the current cell.

e. It enables synchronous scrolling

4. What value will be returned by formula bellow?

=SUM (IF FREQUENCY A1:A9, A1:A9) > 0, 1))

NAMES: A1=33 , B3=48, B6=48, B8=25, B9=33

a. 3

b. 9

c.8

d. #Value

e.#Name

5. The figure bellow shows the excel's name box (A1). Which of the following common functions can Name Box help you with?

Select all answers that apply

a. Show the selected cell address when only one cell is selected

b. show the selected range address when multiple cells are selected.

c. Show the selection size in R x C format during the selection

d. Show a drop-down list of the available defined names

e. Select the corresponding range when a defined name is selecetd from the drop-down list

6. Excel 2010 allows you to apply 3D Format and surface material to both chart are and individual series. Which of the following materials are available in the list of the standard materials in Excel 2010?

Select all answers that apply

a. Plastic

b. wood

c. Matte

d. Charcoal

e. Metal

If you could show all your work it would be greatly appreciated!

Sportz, Inc., manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines (clothing and shoes), which are produced in separate manufacturing facilities; however, both manufacturing facilities share the same support services for information technology and human resources. The following shows total costs for each manufacturing facility and for each support department.

The total costs of the support departments (IT and HR) are allocated to the production departments (clothing and shoes) using a single rate based on the following:

Information technology: Number of IT labor-hours worked by department
Human resources: Number of employees supported by department

Data on the bases, by department, are given as follows:

What are the total costs of the production departments (clothing and shoes) after the support department costs of information technology and human resources have been allocated using (a) the direct method, (b) the step-down method (allocate information technology first), (c) the step-down method (allocate human resources first), and (d) the reciprocal method?

Assume that all of the work of the IT department could be outsourced to an independent company for $97.50 per hour. If Sportz no longer operated its own IT department, 30% of the fixed costs of the IT department could be eliminated. Should Sportz outsource its IT services?