Application of Evert Roger’s Diffusion of Innovation Curve in Business Models

Roger’s model of diffusion classifies the customers by how they adapt to an innovation or an emerging technology with respect to the market share. According to Roger’s diffusion curve the customers are classified into Innovators, Early adopters, Early majority, Late
majority, and laggards.

Innovators are very small group of people classified as 2.5% of the adaptors who explores new technology and tries out new technology and innovation as soon as it is released to the market, they are the most integral part for the success or failure of an innovation as their feedback are the first to echo and most trusted and influences early adopters to pave through, if their feedback turns out to be negative, the technology dies in the early stage.

Early adopters are the next to adapt to the technology who comes by receiving the l feedback of the innovators and even if the feedback is negative there are chances that the early adopter will give a try. They are a comparatively larger group considered to be the most important group of 13.5% whose feedback influences a large group of people. Negative feedback from the group has high probability for the innovation to die in this stage.

Early majority is a large population of 34% who gives a great rise to the market share, these people take less risk as they go completely with the feedback of early adaptors and innovators, they do some analysis and their entry to try the product rises market share to 50%.

The late majority 34% and laggards 16% are followers who are risk averse comes in after 50% of the crowd have already entered. The entry of the laggards brings market share to 100 and the organization should make sure that the entry of laggards happens soon before the technology life cycle of the curve expires.
Instagram will now let you buy things directly through the app
Instagram is launching its new shopping feature called as checkout, which already has many retailers like Nike Inc. and designer fashion platforms.
Instagram has taken this move in the market to capitalize the growing number of users who follow and share food, fashion, and design on its platform. This will hugely benefit its parent Facebook which is constantly trying to enter into the e-commerce market through various models with various results in its platform. But this feature of Instagram goes naturally with its flow as followers already follow models and brands, so a direct buying option from the Instagram platform through various payment methods like using Visa, Mastercard, Discover, and PayPal fits naturally.

This promises to be a great business model for the dynamic environment and seems promising to benefit its parent Facebook, as advertisement growth in newsfeed is slowing down. Facebook is now searching for new business models to generate revenue and bring in new innovators and adaptors to keep the product life cycle running.

The technology curve of a product runs out and the product lifecycle starts to decline with the entry of late adaptors and laggards. Facebook is bringing in innovation and technology on Facebook, WhatsApp, Messenger, and Instagram. To avoid the product entering decline stage, this done by introducing a new technology and keeping the innovators and Early adaptors active to exploration when the previous innovation is used by late majority and laggards.

Explaining Instagram’s Checkout feature with Roger’s diffusion curve, product life cycle, and technology life cycle curve:
As growth rate in advertising has been slowing down for Facebook and Instagram, Facebook has been trying hard to enter into e-commerce market through various strategies and has shown varied results. So, to keep the business running Facebook is making many innovations in Facebook, WhatsApp, Instagram, and Messenger.

And various business models have been implemented in these platforms. Checkout is once such feature which suits naturally with Instagram’s business model and it is expected to create promising results in the future.

These business models has been created by Facebook to keep the services running without
entering into maturity stage by creating new introduction and growth stages. That is, these products are travelling with various technologies and as one technology life cycle is about to decline when it is used by late majority and laggards, the push in by starting a new service or technology, bringing in a new life cycle as when the previous technology is getting adopted by late majority, they push in a new service to innovators.

This way they will keep Innovators, Early adopters, Early majority, Late majority, and Laggards occupied at the same time. So, their products never enter the decline stage, the restart with a higher market share in the introduction stage. So that the process of Research and Development, Introduction, Growth, and some part of Maturity stage is seen in cycles with Increased market share in each stage.
This can be seen as an effective strategy where the next introduction starts with a market share which was there in previous growth or maturity stage. This keeps the company running with increased revenues. Pushes innovation and new technology in the market, and keeps the market running towards new innovations, products, and services to survive in the market.

This article talks about how Facebook keeps updating new services and technologies in it’s platform and in its entities like Instagram, WhatsApp, and Messenger. An analysis is made
on this front from a news article “Instagram will now let you buy things directly through the app” from Live mint. The inferences from this article are gathered regarding why such new business models, technologies, innovations, and services are created in Facebook group entities and the reason for the same has been given by using Evert Roger’s diffusion of innovation curve on technologies, Technology life cycle curve, and product life cycle curve. The relation between the same has been arrived and explanation and critic regarding the implementation of these strategies has been briefed in this document.



Author: A.C.

Dr. Chakraborty is a researcher in electronics and has authored numerous articles in the domain. She is also an avid blogger and shares a penchant for domains like technology, business and science.

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