TECHNOLOGY LIFE

CYCLES

BY
SHALINI.J.X
18MIB043

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 TECHNOLOGY LIFE CYCLES

The Technology Life Cycle can be defined as how the technology and its processes affect
the business processes and impact the entire life cycle of the product offerings of the company.
The stages that get impacted are the research and development phase, growth, maturity, and
decline.

Either a new product enters the fray and forces you to adapt, or the demands on the
current model increase and pushes you to introduce incremental updates of the current offering.
In any case, understanding the technology life cycle helps you predict when you’ll be able to
recover the investment you put into it development, and when to plan for new projects.

Breaking Down the Technology Life Cycle:

Technology Life Cycle - 1

The Technology Life Cycle is quite different from the product life cycle as the life cycle
of product deals with the performance of the product at the marketplace, whereas the life cycle of
the technology focuses on the various stages of the technology in the development of the product
and utilization of technology in the business processes.

It also harps on the aspect of the commercial gains of the technology used in the business
process or a product. The lifespan of the technologies depends on the nature of the products and
the business processes. Like the technologies such as steel, cement manufacturing or paper have
the larger lifespan whereas the technologies of electronic appliances or pharmaceutical have the
relatively short lifespan.

The Technology Life Cycle is mainly concerned with the time and cost of developing the
innovative style of technology that gives a new edge to the business with the factor of
competitive advantage. It harps on the aspects of the time required for recovering the costs
incurred and if the methodologies of making the technology are generating the profits required
and proportionate to the costs and risks involved in making it.

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 The development of a competitive product can have a major impact on the entire lifecycle
of the technology making it larger or shorter. Also, the loss of intellectual property rights through
leakages, loss of secret elements or litigation can make the Technology Life Cycle shorter
reducing its lifespan.

The management of the Technology Life Cycle is one of the most crucial and imperative
business processes and an important aspect of the technology development. The adoption of
technology is one of the most common facets that drive the evolution of industries along with the
life cycle of the various industries.

The shape of the Technology Life Cycle is often referred to as the S curved shape. Many
of the famous and renowned companies develop the technology for their own benefit and growth
of the corporation rather than licensing it.

But if there is a threat of plagiarism in the Technology Life Cycle, then the companies
license the same.

The 4 phases of the Technology Life Cycle :

Technology Life Cycle - 2

1) Research and Development Phase

The research and development are also called as the bleeding edge as the income from
the inputs being put in making the technology are negative in nature and the chances of failure of
technology are quite high in nature. As the revenues are quite, the money for developing the
technology is poured from your own pocket. At this stage, it is very important to take the
feedback on the technology developed from the industry experts and tweak it to match as per the
industry standards and to give it an edge of innovation and novelty.

2) Ascent Phase

The ascent phase of the Technology Life Cycle is also called as the leading edge as the
company starts to recover the costs and expenses that have been incurred and plus the technology
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developed begins to gather strength and goes beyond the initial point of development to get
accepted in the market. The company creates all the hype and promotion of the innovation and
newness of the technology grabbing the attention from all the quarters.

3) Maturity Phase

The maturity stage arrives when the gains from the technology are high and stable but
there is also a point of saturation. The technology developed is well accepted by the public but as
the competitors are well aware and have caught with the realms of the technology developed, the
market has reached the point of saturation. The revenues start to get slow down as the technology
developed starts to become yet another commodity in the market. In order to stay relevant in the
market, it is very important to make the incremental and innovative changes in the technology
considering the changing dynamics of the markets and the evolving tastes of the customers.
Keeping an eye on the competition is also very important at this stage.

4) Decline Phase

The decline phase is inevitable in nature most of the times and here is when the
companies witness the decrease in sales of its products and there is a need or an emergence of the
new and replacement of the technology. Many a time, the companies reach the point where there
are no returns at all and further developments are not profitable at all. The best possible step that
the company can initiate is to move out of the current technology and plant its resources on the
new project that is sure to yield more profits.

The 4 stages of Technology Life Cycle :

1) Innovation Stage

The first and foremost stage of the Technology Life Cycle represents the innovation or
the birth of the new product, software, material or the processes that are a result of the thorough
research and development activities. In the R & D department of the company, various new ideas
are planned, developed, tested, designed, and executed depending on the company resources and
the current needs and demands of the market. This stage is quite time to consume in nature as the

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ideas need to be tested and verified considering the various internal and external forces affecting
the operations of the business.

2) Syndication Stage

The syndication stage of the Technology Life Cycle focuses on the commercialization
and demonstration of the new technology developed. The products, processes or material with
the optimal potential for success are utilized on the immediate basis. In the research and
development departments, many innovations are put on hold and only a percentage of the same
are utilized for the commercial purposes. The outcome of the same largely depends on the
economic factors along with the technical and non-technical factors.

3) Diffusion Stage

This stage focuses on the penetration of the new technology developed in the market and
the technology is widely accepted by its potential users owing to its innovation and novel
ideation. All this results in the higher profits, enhanced brand value, and elevated revenue
generation for the company making it a market leader. But it is important to take note that the
demand and supply side of factors jointly influence the rate of diffusion of the technology.

4) Substitution Stage

The substitution is the last and final stage of the Technology Life Cycle and represents
the decline in the use of the technology due to its replacement with another technology that is far
better, novel, and innovative in nature catering to the current needs and demands of the target
market. The time frame of the substitution stage depends on the dynamics of the market and the
various technical and non-technical factors influence the rate of the substitution of the
technology.

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 DIFFUSION OF INNOVATION THEORY

Diffusion of Innovation (DOI) Theory, developed by E.M. Rogers in 1962, is one of the
oldest social science theories. It originated in communication to explain how, over time, an idea
or product gains momentum and diffuses (or spreads) through a specific population or social
system. The end result of this diffusion is that people, as part of a social system, adopt a new
idea, behavior, or product. Adoption means that a person does something differently than what
they had previously (i.e., purchase or use a new product, acquire and perform a new behavior,
etc.). The key to adoption is that the person must perceive the idea, behavior, or product as new
or innovative. It is through this that diffusion is possible.

Adoption of a new idea, behavior, or product (i.e., "innovation") does not happen
simultaneously in a social system; rather it is a process whereby some people are more apt to
adopt the innovation than others. Researchers have found that people who adopt an innovation
early have different characteristics than people who adopt an innovation later. When promoting
an innovation to a target population, it is important to understand the characteristics of the target
population that will help or hinder adoption of the innovation. There are five established adopter
categories, and while the majority of the general population tends to fall in the middle categories,
it is still necessary to understand the characteristics of the target population. When promoting an
innovation, there are different strategies used to appeal to the different adopter categories.

Innovators –

These are people who want to be the first to try the innovation. They are venturesome
and interested in new ideas. These people are very willing to take risks, and are often the first to
develop new ideas. Very little, if anything, needs to be done to appeal to this population.

Early Adopters –

These are people who represent opinion leaders. They enjoy leadership roles, and
embrace change opportunities. They are already aware of the need to change and so are very

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comfortable adopting new ideas. Strategies to appeal to this population include how-to manuals
and information sheets on implementation. They do not need information to convince them to
change.

Early Majority –

These people are rarely leaders, but they do adopt new ideas before the average person.
That said, they typically need to see evidence that the innovation works before they are willing to
adopt it. Strategies to appeal to this population include success stories and evidence of the
innovation's effectiveness.

Late Majority –

These people are skeptical of change, and will only adopt an innovation after it has been
tried by the majority. Strategies to appeal to this population include information on how many
other people have tried the innovation and have adopted it successfully.

Laggards –

These people are bound by tradition and very conservative. They are very skeptical of
change and are the hardest group to bring on board. Strategies to appeal to this population
include statistics, fear appeals, and pressure from people in the other adopter groups.

Distribution.png

The stage by which a person adopts an innovation, and whereby diffusion is

accomplished, include awareness of the need for an innovation, decision to adopt (or reject) the
innovation, initial use of the innovation to test it, and continued use of the innovation. There are
five main factors that influence adoption of an innovation, and each of these factors is at play to
a different extent in the five adopter categories.

Relative Advantage –

The degree to which an innovation is seen as better than the idea, program, or product it
replaces.

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Compatibility –

How consistent the innovation is with the values, experiences, and needs of the potential
adopters.

Complexity –

How difficult the innovation is to understand and/or use.

Triability –

The extent to which the innovation can be tested or experimented with before a
commitment to adopt is made.

Observability –

The extent to which the innovation provides tangible results.

Limitations of Diffusion of Innovation Theory

There are several limitations of Diffusion of Innovation Theory, which include the
following:

 Much of the evidence for this theory, including the adopter categories, did not originate in
public health and it was not developed to explicitly apply to adoption of new behaviors or
health innovations.

 It does not foster a participatory approach to adoption of a public health program.

 It works better with adoption of behaviors rather than cessation or prevention of

behaviors.

 It doesn't take into account an individual's resources or social support to adopt the new
behavior (or innovation).

This theory has been used successfully in many fields including communication, agriculture,
public health, criminal justice, social work, and marketing. In public health, Diffusion of
Innovation Theory is used to accelerate the adoption of important public health programs that

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typically aim to change the behavior of a social system. For example, an intervention to address a
public health problem is developed, and the intervention is promoted to people in a social system
with the goal of adoption (based on Diffusion of Innovation Theory). The most successful
adoption of a public health program results from understanding the target population and the
factors influencing their rate of adoption.