Research has shown that people can be broken down into 5 main categories when it comes to how they respond to innovation:
- Innovators
- Early adopters
- Early majority
- Late majority
- Laggard
This is known as the ‘Diffusion of Innovation’ theory, as it was developed by E.M. Rogers in 1962. It’s particularly interesting when applied to innovative accounting software, and looking at how new ideas and technology spread through a group of peers. In this case, accountants.
It looks at how ideas are spread among groups of people and discusses the likelihood of a new idea being adopted by members of a given culture. But what is the difference between each of these groups of people?
1. Innovators
Innovators are eager to try new ideas. They can get locked onto an idea in an almost obsessive way. They’re smart, but they’re also risk-takers, and they often have the privilege of accessing substantial financial resources to realise their ideas. They are perceived as rash or daring, and perhaps a little unpredictable, but they can also adapt to setbacks if their ideas prove unsuccessful. Does this sound like anyone you know?!
2. Early adopters
Early adopters are generally leaders, and as such are respected within their area of expertise. They are happy to provide advice and are often successful in their careers.
Immediately after the early adopters comes the ‘tipping point’. This is where people quickly start to come on board and adopt the new way of thinking or begin using the new technology more readily – in this case, accounting software.
3. Early majority
If you’re part of the early majority group, you’ll adopt new ideas and change much more readily than your peers, but these people are rarely seen to hold leadership positions. They take time in making their decisions, not wanting to take too big a risk, but they are extremely important in the diffusion process!
4. Late Majority
The late majority group are sceptical, hence taking a long time to get on board with a new idea or technology. It must already be well recognised and talked about for them to adopt the approach themselves – and they are often pressured to do so by their peers.
5. Laggard
Laggards are traditionalists and as such as the last group to adopt an innovation. They are often suspicious of change.
Where does accounting software fit into the diffusion of innovation?
When it comes to innovative accounting software, we feel as though we’re at the ‘tipping point’. Whilst we have early adopters, we’re yet to see the early majority get on board with the change. But why?
Change is difficult, and financial risk is scary. Changing the way you’ve operated for years by adopting a new platform is a daunting task. But it’s a calculated risk. It’s something that has already been proven to improve efficiency, and it can open up a whole new way of displaying data through integration with the whole business.
So, what are you waiting for? Don’t be a laggard! Get in touch with Neil Campbell today to talk to us about how the Risk Dashboard can work alongside your accounting role.
For more information on how the Risk Dashboard can assist you, visit our website or please don’t hesitate to contact Neil Campbell, Commercial Director on neil.campbell@riskdashboard.co.uk or info@riskdashboard.co.uk.
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