Technology life Cycle
The performance of a technology for a recognized over time that is
properly understood, can be of great use in strategic planning.
1) The S – Curve of technology progress
Transistors per chip
Aircraft speed n moles per hour
The S – Curve of technology progress
TLS – Technology Life Cycle
The new invention Period - The embryonic stage
Technology improvement period - The growth stage
Mature technology period - Vulnerable to substitution obsolesce
New invention period
Period of slow initial growth
Time for experiments
Mature technology period
Upper limit of the technology is approaches & progress in
performance slows down
When a technology reaches its natural limits, it becomes a mature
technology vulnerable to substitution / obsolesces.
2) Market growth & TLC
Market Growth – Expressed as market volume
Six Different phases
1 Technology development Phase 4 Mature technology phase
2 Application Launch Phase 5 Technology substitution phase
3 Application growth Phase 6 Technology obsolesce phase
Scientists & Engineers are spending significant amounts if efforts
& money to create the technology, develop prototypes & test the
new technology.
Very expensive & do not produce revenue.
New application is launched into the market – Slow initial growth
Penetration of the market depends on the rate of innovation & the
market needs for the new technology.
The growth rate slows down – Market volume reaches a
maximum & streets to decline
Companies that continue to use the old technology in this phase
will be faced with a strategy market share & a full in revenues.
Trial phase – Technology has little / No value
The Product Life Cycle
1) Concept Design Prototype
A product emerges from a concept – Translated into
engineering design & illustrated through an engineering
drawing.
2) Product Launch
Involves an increasing awareness of the product
Characterized by a very slow initial market response
3) Product Growth
Follows the product launching phase
Sales starts slow – Accelerates as the product
Becomes known & accepted in the market
4) Mature Stage
Product is diffused in the market
Market becomes saturated
Growth stage – slow dawn
5) Sbustitution Products
Represents the on set of obsolensence
6) Obsolete Products
The products have little / No monetary value
Placed at antiques or kept as rare items in museum
7) Reasons for finite lifetimes for principle reasons
Technical performance / feature obsolescence
Performance / features – markedly less at the
same price as those of a competing product
Cost Obsolescence
Same performance @ same price / less price then
the competitor
Safety obsolescence
Similar performance & price with improved safety
Fashion Obsolescence
Competition is un-differntiable in performance &
price but is differentiable in lifestyle
The performance of a technology for a recognized over time that is
properly understood, can be of great use in strategic planning.
1) The S – Curve of technology progress
Transistors per chip
Aircraft speed n moles per hour
The S – Curve of technology progress
TLS – Technology Life Cycle
The new invention Period - The embryonic stage
Technology improvement period - The growth stage
Mature technology period - Vulnerable to substitution obsolesce
New invention period
Period of slow initial growth
Time for experiments
Mature technology period
Upper limit of the technology is approaches & progress in
performance slows down
When a technology reaches its natural limits, it becomes a mature
technology vulnerable to substitution / obsolesces.
2) Market growth & TLC
Market Growth – Expressed as market volume
Six Different phases
1 Technology development Phase 4 Mature technology phase
2 Application Launch Phase 5 Technology substitution phase
3 Application growth Phase 6 Technology obsolesce phase
Scientists & Engineers are spending significant amounts if efforts
& money to create the technology, develop prototypes & test the
new technology.
Very expensive & do not produce revenue.
New application is launched into the market – Slow initial growth
Penetration of the market depends on the rate of innovation & the
market needs for the new technology.
The growth rate slows down – Market volume reaches a
maximum & streets to decline
Companies that continue to use the old technology in this phase
will be faced with a strategy market share & a full in revenues.
Trial phase – Technology has little / No value
The Product Life Cycle
1) Concept Design Prototype
A product emerges from a concept – Translated into
engineering design & illustrated through an engineering
drawing.
2) Product Launch
Involves an increasing awareness of the product
Characterized by a very slow initial market response
3) Product Growth
Follows the product launching phase
Sales starts slow – Accelerates as the product
Becomes known & accepted in the market
4) Mature Stage
Product is diffused in the market
Market becomes saturated
Growth stage – slow dawn
5) Sbustitution Products
Represents the on set of obsolensence
6) Obsolete Products
The products have little / No monetary value
Placed at antiques or kept as rare items in museum
7) Reasons for finite lifetimes for principle reasons
Technical performance / feature obsolescence
Performance / features – markedly less at the
same price as those of a competing product
Cost Obsolescence
Same performance @ same price / less price then
the competitor
Safety obsolescence
Similar performance & price with improved safety
Fashion Obsolescence
Competition is un-differntiable in performance &
price but is differentiable in lifestyle
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