Lecture on New Ideas and the Law of Diffusion of Innovations

Introduction to New Ideas and the Status Quo

• People with new ideas can threaten the status quo.
• The status quo exists because it is working for many.
• Those benefiting from the status quo resist change due to fear of failure.

Challenges of Being an Entrepreneur

• Most people don’t start businesses due to high risk of failure.
• Entrepreneurs face chances of failure in the high 90th percentiles within the first three years.
• Not everyone should be an entrepreneur due to risk factors and family responsibilities.

The Approach to Spreading New Ideas

• Avoid trying to convince those who don't want change.
• Focus on finding people who align with your beliefs.

The Law of Diffusion of Innovations

• Proposed by Everett M. Rogers in the 1950s.
• Population divided into:
  • Innovators (2.5%): Big idea people like Steve Jobs, Richard Branson.
  • Early Adopters (12.5%): Willing to spend resources to align with beliefs.
  • Majority (68%): Practical and need evidence of success.
  • Laggards (16%): Change only when necessary.
• Mass market success requires 15-18% market penetration.
• The Tipping Point is achieved when early majority adopt after innovators and early adopters.

The Strategy for Adoption

• Crossing the Chasm (by Jeffrey Moore) involves moving from 10% to 15-18% acceptance.
• Communicate with early adopters by explaining 'why', not 'what'.
• Build brand without traditional marketing by targeting early adopters.

Real Life Examples

Building a Brand

• Focused on early adopters.
• Built brand with emotional appeal rather than product specs.

Consulting Experience

• Distinguishing early adopters from non-adopters.
• Example: Declined work from a prospective client who was not an early adopter.

Implementing Change in Companies

• Developed a millennial training program using early adopters.
• Created small barriers for participation.
• Program required application and effort.
• Resulted in high demand and organic growth through word of mouth.

Conclusion

• To affect change, stop trying to convince everyone.
• Find and engage early adopters who are willing to experiment.
• Use the Law of Diffusion to create demand and spread new ideas effectively.