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The Idea of Diffusion





                                            What is Diffusion?


                  In the business context, diffusion is the process by which an idea or
                  offering spreads through the context (population of potential users) or
                  more narrowly is adopted by users.


                  From Emergence to Diffusion


                  An idea or technology emerges as agents interact in the context of

                  prior knowledge and develop synergies that lead to new higher level
                  functionalities. They do this by pursuing their own local interests
                  within the context of their times.


                  Once an idea has emerged it may remain local and unknown to the

                  mass of other agents or it may spread and impact the actions of other
                  actors. The spreading can be spontaneous or it can be managed/driven.
                  The process of spreading is technically called diffusion.


                  Diffusion, from a business perspective, is the process by which the idea
                  or offering spreads through the agents in a context leading to its

                  adoption or rejection.


                  As a corollary, the new idea typically displaces prior accepted ideas or
                  offerings that met the same need leading to the collapse of established
                  worldviews or a decline of business models dependent on the prior

                  idea.


                  Diffusion-displacement may be rapid or slow as practical factors (such
                  as replacing infrastructure or active defense of the old by adherents
                  with power/influence) intervene. Example, streaming technology on

                  the internet has been available for some time, but it is only recently
                  that the 'unhooking cable' movement has really made a measurable


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