Group/Individual Level

Facilitating structures - Innovation analysis

There are several characteristics of new technologies that affect the likelihood of their being adopted. Research has illustrated that the higher the innovation's score on each of these characteristics, the more successful the implementation was likely to be. Research has suggested that the first three to be discussed here (relative advantage, compatibility, and complexity) have the most significant relationships with the adoption and implementation of technological innovations.

Relative Advantage (Is it better?)
Compatibility (Does it fit?)
Complexity (Can it be understood?)
Trialability (Can it be tried?)
Observability (Can the operations and results be seen?)
Re-invention (Can it be modified?)
Innovation analysis scorecard (Use this tool to compare various stakeholder groups' perceptions of your innovation or technical change)

Relative Advantage (Is it better?)
The relative advantage of a new technology is defined as the degree to which the new equipment is perceived as being better than that which precedes it. Therefore, if a personal computer is perceived as providing easier text entry and editing, more flexibility in terms of document formats and preparation, and increased efficiencies due to its ability to electronically transfer data between users, then its relative advantage over manual typewriters is great. This will increase the likelihood of the PC being adopted over the manual alternative.
It is the notion of perceived advantage here that is most important, not just objective advantage. If vendors of new technology sell people on outlandish over-estimates of possible benefits, even if these benefits are never realised, it is the expectation of realising these benefits that produces the perception of relative advantage that, in turn, leads to the decision to innovate.

Relative advantage may be further subdivided into two types: economic advantage and social advantage.

Economic advantages. Although reductions in labour and unit production costs are frequently cited to justify the purchase of new technology, new technologies do not save money as frequently as people seem to expect. New technologies do, however, provide other economic advantages allowing firms to stay competitive, to gain significant competitive advantages, or new technologies may provide new opportunities to make money.
Social advantages. Quite frequently new technology is seen as a way to increase prestige, personal power, and organisational status. Convenience and satisfaction are also among the many personal and social advantages that will increase the likelihood of the adoption of the new technology. If someone thinks that having a PC on their desk enhances their image in some way, then they will be more likely to adopt the technology and successfully use it.

An important thing to remember is that relative advantage is not enough to assure successful adoption. It is a necessary, but not sufficient pre-condition.

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Compatibility (Does it fit?)
Compatibility is defined as the degree to which an innovation is consistent with existing values, past experience, and current needs. Of course, the more compatible a new technology is with an organisation's needs, the more likely it will be adopted. But if the innovation is not compatible with the firm's culture, this will adversely effect the likelihood and success of its adoption.

If an organisation is faced with this type of situation and recognises potential incompatibility barriers, managers can take steps to change attitudes and behaviours before the firm adopts the innovation.

Go to related information on organisational culture.

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Complexity (Can it be understood?)
Complexity is defined as the degree to which a new technology is perceived as relatively difficult to understand and to use. If a technology is perceived as being too complex, people will be less likely to try it. Many advanced manufacturing technologies are frequently assumed to be too complex by many firms. This inhibits the rate of their adoption. Also, new technologies may be so complex that they fail to satisfy the unrealistic expectations of many of those who do decide to adopt them.
 
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Trialability (Can it be tried?)
Trialability is the degree to which a new technology may be experimented with on a trial basis. Trialability reduces uncertainty and greatly increases the rate of adoption. An innovation with low trialability requires more implementation planning and careful consideration.
 
Computer integrated manufacturing (CIM) systems, for example, are not trialable. They are too expensive and large to trial. Personal computers and fax machines, on the other hand, are trialable. It is very easy, and relatively inexpensive, to buy a single PC or fax machine and to try them out. Suppliers are frequently sensitive to users' desires to "take it for a spin" before investing in new technology. Do not be afraid to take advantage of this and exercise your opportunity for trialability and experimentation.

Remember, however, our desire for trialability can lead to problems. If we implement incrementally, we could end up with islands of automation. If you adopt this strategy, plan for the technical leap that is frequently necessary for later integration of these isolated systems.

 
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Observability (Can the operations and results be seen?)
Observability is the degree to which the operations and results of a new technology are observable to others. This may also be thought of as the "black box" idea. Generally, the more highly visible the operations and results of a new technology the better. This reduced uncertainty will be positively related to its rate of adoption.
 
The results of CIM are very observable. Therefore, if the results are good, this is a major advantage. If the results of the CIM implementation are less than attractive to employees and managers, however, this will negatively impact on the success of the implementation. From a broader point of view, however, it is beneficial to get the "bad news" sooner, rather than later. Highly visible systems and results must be managed and implemented very carefully. As observability increases, so does the need to trial or pilot-test the innovation.
 
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Re-invention (Can it be modified?)
A sixth characteristic sometimes discussed in conjunction with the original five is re-invention. Re-invention is defined as the degree to which an innovation is changeable or modifiable by users.
 
In the process of its adoption and implementation, certain innovations can be more or less modified by the users. Clearly, if customisation and incremental improvements via experimentation and adjustments are desired, technologies that are more modifiable will be considered better and will more likely be successfully adopted. However, if standardisation of procedures or outputs is the goal, then technologies that are modifiable may be less attractive and more problematic.

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