Guido Spooren, Week 50, Networks Assignment 6

Guido Spooren, Week 50, Networks Assignment 6

Hi readers, welcome to my sixth blog about Entrepreneurship and Networks!

For this week’s assignment, we had to come up with an appropriate innovation for entrepreneurs. When I read this, I immediately thought of one of the biggest adopted innovations among big businesses: social media. I think that as for the maturity of the diffusion of social media in terms of Rogers (2003) –  who wrote a book about innovation diffusion –  social media has a very high diffusion in my opinion. Not only just among people in the society, but also among businesses who use it for their advantage. Social media counts in my opinion mainly as a service innovation, which businesses use to advertise their products/services (think of Facebook, Instagram, Youtube), but also to get in touch with people (think of Facebook again, LinkedIn, Google+) in order to expand their network and potentially their social capital. As I said, one thing that is for certain is that big enterprises use social media, but what about smaller businesses and beginning entrepreneurs? Do they use it as well?

In order to find this out, I interviewed 3 entrepreneurs, each with small retail businesses: a relative of my family who owns her own small flower stall in Amstelveen, a former class mate of mine who co-owns a small jewelry and must-haves store, and a former teammate of mine, who just recently opened his own surf shop in Sneek.

As for the florist, she recently started using Facebook and Google+ for her business purposes. I consider her among the late majority who is using social media for their business. She told me that she never actually thought of it as a means of, for example, advertising, which she now uses it for. As for the other 2 entrepreneurs, they started using social media for their business purposes. My former class mate mainly uses Facebook and Instagram to promote her wares and my former teammate mainly uses Facebook and Youtube, where he regularly posts videos to draw attention for surfing and his shop in particular. I think the both of them can be considered as early adopters, since they weren’t the first ones to use it, because their businesses aren’t that old, but they immediately started using it when they started their business.

I hope you’ve enjoyed reading my blog and hopefully you will read my next week’s blog as well! 🙂

Guido

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Matthijs de Mari – Week 49 – Entrepreneurship and Networks: Assignment 6

Matthijs de Mari – Week 49 – Entrepreneurship and Networks: Assignment 6

Hi readers!

This week we had to identify an appropriate innovation for entrepreneurs which has over 50% of adopters. I will be discussing a service innovation, which if you think about it nearly everyone uses right now, the cloud. Dropbox and Google Drive are both examples of cloud storage services which basically store whatever you want remotely and you can get these files back any time you want. Many people use this to store, share and work on projects together. Cloud computing is that companies are running software on other people servers so they don’t need to have gigantic servers in their own company to handle all of the data etc.. For example, Amazon is a provider of this service. They made it popular in the year 2000 even though it had been around a little longer than that.

I found an entrepreneur through the company I work for which offers IT migration services and asked if he used cloud computing or a cloud storage service. He told me that he constantly uses Google Drive (cloud storage service) for his business because of planning with the other managers in the company, since they work on a project basis they constantly need to update the schedule and different people are working to plan all these different projects. With Google Drive other users can instantly see what has changed. They started using this last year so I would say they are late adopters since the technology has already spread everywhere. He said that one of his employees showed him the capabilities, and ever since that day they used it. I talked to another entrepreneur who owned a programming company. I got to know him through a friend of mine who does computer science. He had a similar story but used cloud computing only on a personal level since he was concerned with the privacy issues. If his code got out because, for example if Dropbox is hacked, the project might be compromised. He’d rather have the files only locally instead of in the cloud.

I did my best to find three similar entrepreneurs who might use this innovation, but sadly I only found two. Fortunately I talked to a cousin of mine who works in a company where they work out statistics for other businesses and he told me that they work with a cloud based network. Nothing they do on the computer is actually stored there. The company sometimes gets huge pieces of data which they need to process quickly through a program and this is also done on a remote server provided by another company.

The diffusion and adoption of the two services I mentioned which the cloud offers is very high. Cloud storage services are very handy for accessing and sharing your data anywhere with anyone. Cloud computing saves companies a lot of money and time, which influences the adoption process positively. I think that the adoption process is somewhat slowed down by people who have concerns about privacy.

See you,

Matthijs

Assignment 6 – Entrepreneurship and Networks – M. van der Burg

Assignment 6 – Entrepreneurship and Networks – M. van der Burg

Contactloos-betalen-met-ING-BetaalpasHi Readers, This is the last assignment for Entrepreneurship and Networks. This week we have to identify an appropriate innovation for entrepreneurs which is sufficiently spread among the entrepreneurial population. I will be discussing a recent innovation which is payments using NFC. This service enables users to pay their bill by just holding their debit card against a special device. There is no longer any need to enter your pin code, which is really beneficial for payments in areas where time is short for example at train stations. Since some people see this as a security issue, it only works for bills up to 25 euro’s.

The remarkable thing is that the diffusion and adoption of this service is quite high. Nearly all ING and ABN AMRO customers are able to use this service. However, not many people know this which slows down the adoption since they simply don’t know they are able to use it. Furthermore not every shop has the new payment device already available. I think the adoption is not that fast since the service is not yet supported by many shops which may cause people to ditch this innovation. But the usage rate is increasing, in terms of Rogers (2003) adoption is now among the early majority. Recently Apple revealed the iPhone 6 which is capable of NFC payments, since the iPhone has a really high level of diffusion it might be able to help to make NFC payments more mainstream. History thought us that all Apple’s services are received well which will hopefully also happen to NFC payments since it’s a really good innovation.

I spoke to three owners of small shops in my street (bakery, flower shop, butcher) whether or not they are supporting NFC Payments, this first shop owner I spoke with had never heard of it and was not going to implement it any time soon. The second owner I spoke with was actually expecting his new payments device next week, he did however not expect many people to use it. The last shop (butcher) supported it and was quite happy with is, he has a special service where people can buy a lunch, since these people are often in a hurry he noticed they are using NFC payments. He saw one other shop which provides this service and decided to provide it himself, imitation (contagion) according to Young (2009).

After these interviews I came to the conclusion that NFC payments are not widely accepted yet but there is certainly a future for it!

 

Thanks for reading,

Martijn

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Joep van Gelder, week 49/50, Entrepreneurship and networks

Joep van Gelder, week 49/50, Entrepreneurship and networks

Joep van Gelder

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Entrepreneurship and Networks

The lecturers of Entrepreneurship and Networks had a great surprise for us, seen as this last blog about innovation adoption and diffusion is one of the harder ones. Even though I think that it has not been adopted by 50% of the entrepreneurs, hybrid cars directly came into my mind.

For entrepreneurs, the hybrid car is a paradise, seen as there are many tax reductions for them when they buy such car, even if they only make use of gasoline or diesel! This price reduction may even be two third. Let’s have a look at an example. If I want to buy a Porsche Panamera S E-Hybrid, the basic price will be 106,900 euros. If I would buy it via my own business, it will cost me less than 40,000 euros over several years! This ‘innovation’ is considered to be a product.

Looking at the maturity, I took in mind that the tax advantages are quickly being repealed. Therefore, I considered this innovation to be somewhere in between the late majority or the laggards. The following growth graph made me realize this:

Groeicurve elektrisch rijden per 31-10-2014

It is seen that growth decreases. By the end of 2012, there were 7,311 electric/hybrid cars in The Netherlands. One year later this amount was 30,086. In October of this year, the amount was 42,860. Therefore, growth seems to decrease, but we are not at the end of the year yet. Maybe there will be some generous givers for Christmas..

In my own environment, I know that at least three entrepreneurs are driving a hybrid car. They work in different sectors (healthcare and financial services). All three of them are categorized as early adopters or early majority. They knew about it via news articles. I consider this both forms of contagion, as well as social learning, as they first wanted to find more information about it. Moreover, they wanted to make a cost-benefit analysis.

I increasingly see hybrid cars on the road. Especially the Mitsubishi Outlander is very popular. People were able to buy this car for only 6,000 euros. In Amsterdam, I often see Tesla cars. I would advise other entrepreneurs, that have not yet done so, to grab their final chances and buy a hybrid car with tax advantages.

Entrepreneurship and Networks – Tom Willemse – Assignment 6

Entrepreneurship and Networks – Tom Willemse – Assignment 6

Hi there readers,

This week’s blog is all about the diffusion of innovation adoption. I have to tell you guys about an appropriate innovation that has been sufficiently spread. It’s not hard to find such an innovation since these days the news is all about start-ups and new technologies or innovations. Since the government gave me a student travel card I immediately though of this as an innovation.

The government introduced in cooperation with all the public transportation businesses an public transport chip card, replacing the older paper cards. Every public transport carrier had his own paper ticket, with bad luck you had to buy four different tickets to get to your destination. Now with the public transport chip card you can travel through the Netherlands with a prepaid card.

This public transport chip card is mainly a service because of the paper cards it replaces and the time it saves. This service started at a small group that travels regularly by public transport: students. You can call them the opinion leaders, although they had no other choice eventually. There was a time (almost a year) that you had the choice to use a public transport chip card or the old fashion paper card. Within the students there were innovators and early adopters. But when we take a look at the whole, last summer everyone who wanted to travel by public transport had to use the public transport chip card. Although most people accepted and adapted the card a lot earlier, the younger the people the earlier they adopted the innovative chip card.

Entrepreneurs using a public transport chip card don’t have problems not losing the paper cards anymore in case they want to declare them in their tax reports. There is a clear overview online with the costs and tracks covered. I didn’t find any entrepreneur using this, all driving a private/lease car where they have to pay for a parking ticket with the same problems. In that case YellowBrick or ParkLine is a nice innovation to write about but that’s something I came up with after writing this all down. Maybe something for next year…

Tom Willemse

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Faye Best – Week 50 – Entrepreneurship & Networks

Faye Best – Week 50 – Entrepreneurship & Networks

Dear readers,

Of course the last blog assignment is the hardest one. That’s why it took me so long to start writing. This week’s blog is about innovation diffusion and adoption and therefore we had to identify an appropriate innovation for entrepreneurs, which is sufficiently spread. It was hard to find such an innovation, but then I took a cab.. And during that drive I thought of Uber and talked about it with the taxi driver.

Uber is a rideshare and taxi service company, which is founded by Travis Kalanick and Garret Camp in 2009. It started in San Francisco, but at this moment it is already situated in more than 200 cities and is worth more than $40 billion. Uber uses an app, where people can request for a ride. They can both get a ride from a licensed taxi-driver or just people like you and me (UberPOP service). This service-based innovation breeds on the inefficient use of cars and the need for sustainability.

Uber is still a very young company, but has grown rapidly in the last 5 years. If we look at the diffusion model of Rogers (2003) I think it is diffusing at the edge of early adopters and early majority. It just passed the diffusion among young professionals who live in Amsterdam and has still time to grow.

Although Uber is a service for individuals it is also a major innovation among licensed taxi drivers. Do they keep on going like they always did and be laggards or do they sign in at Uber and do it their way? Well the taxi driver I spoke to wasn’t really a fan of Uber. It was an older men and he didn’t saw the advantages of it. He has his own network of customers and he likes it that way. I asked if he would ever consider using it if all other cabs he know did. He then would overthink the situation and maybe become an Uber cab as well. In this last part social learning and the social influence mechanism play a role. He will maybe adopt it if there is enough evidence and if enough others have adopted it too.

I think taxi drivers should seriously consider to become an Uber cab. Caps are expensive and people don’t like to spend money on them. The world has changed and cabs haven’t been innovative for a very long time. I think this innovation would give the taxi driver much more customers. Especially young people (and even other generations) using smartphones and Uber fits perfectly within their lifestyle.

I didn’t follow the exact outline of the assignment, but I think it was worth sharing!

Goodbye everyone and good luck with the final course, which I will not follow L.

Faye

Robbert de Kruijff 2522315 Entrepreneurship Networks week 49

Robbert de Kruijff 2522315 Entrepreneurship Networks week 49

Being able to pay by card with a non-contact device, so hold your debit card in front of a sensor to pay. This is a good example because it is well known and sufficiently spread in the entrepreneurial population. This particular innovation can be clearly categorised as a service innovation, because it is an innovation made to help costumers faster and to make paying easier since you don’t have to enter a pin-number.

Looking at the diffusion of this innovation, this innovation can be seen as an early majority in the model of Rogers regarding diffusion of innovations. This is because most entrepreneurs and business do have the innovation in their business to use and see the importance. Buy the fact that in the Netherlands not every debit card had the ability to use this function of the device to pay non-contact with the sensor, makes it an early majority, simply because the biggest part of the costumers is not able to use the innovation to pay. Also the risk for entrepreneurs to use this innovation is not very high anymore, because more debit cards, eventually all of them will be able to use this way of paying. Still, there are some flaws; like the maximum price is 25 euros and some people are not convinced of its safety.

To see how it is adopted amongst entrepreneurs I found three entrepreneurs who have a business in the same sector and have the same core business. They sell clothes. Still there are some differences between them, which also resulted in having the innovation, or not. One of them was a small shop selling leather jackets with prices over 100 euros. He didn’t own the innovation because he doesn’t have very many costumers per day, and the costumers he does have, stay there for longer for the service and take the time to buy his product, so this entrepreneur doesn’t think he will need this innovation now and not in the near future, an example of a Laggards. (Rogers, 2003). The other two business owners I talked to were both owners of retail shops of a bigger company and both possessed the innovation. The difference was the pricing of their products, the first one was cheaper and sometimes already used the innovation, the other barely used the innovation but had it for the future when the maximum amount of money payed with this innovation will be higher. So the first will be categorized as early majority and the other as an early adopter.

Reference

Rogers, E. M. (2003). Diffusion of innovations (5th ed.). New York: Free Press.