The document discusses the technology life cycle, which outlines the phases a technology goes through from development to decline. It describes the four phases as: 1) research and development, 2) growth, 3) maturity, and 4) decline. During research and development, risks are high and costs are negative. In the growth phase, costs are recovered and popularity increases. Technologies mature as competitors emerge and the market saturates. Finally, technologies decline as newer alternatives substitute them and profits decrease. The document provides examples to illustrate these phases.

1. Technology Life Cycle
Mr. Roshan Bhattarai
Kathmandu, Nepal

2. Technology Life Cycle
• The Technology Life Cycle can be defined as
– how the technology affects the business processes and
how it impacts the entire life cycle of the product
offerings of the company
• The phases that get impacted are:
– Research and development,
– growth,
– maturity, and
– decline
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3. Breaking Down the Technology Life Cycle
• Life cycle of product deals with the performance of the
product at the marketplace, whereas
• 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
• The lifespan of the technologies depends on the nature of
the products and the business processes
• Technologies such as steel, cement manufacturing or paper
have larger lifespan whereas technologies of electronic
appliances or pharmaceuticals have relatively shorter
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4. • TLC 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
• development of a competitive product can have a major
impact on the entire lifecycle of the technology making it
larger/longer
• the loss of intellectual property rights through leakages,
loss of secret elements or litigation (court case) can make
the TLC shorter
• The TLC may, further, be protected during its cycle
with patents seeking to lengthen the cycle and to
maximize the profit from it
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5. • Thus, it is apparent that the management of the TLC is an
important aspect of technology development
• Shape of the TLC 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
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6. The 4 phases of the Technology Life Cycle
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7. 1. Research and Development Phase/ Innovation Stage
• bleeding edge as income from the input being put in
making the technology are negative in nature
• chances of failure of technology is quite high
• the money for developing the technology is poured
from your own pocket
• important to take the feedback on the technology
developed from the industry experts
• also important to tweak it to match as per the industry
standards and to give it an edge of innovation and
novelty
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8. 2. Ascent Phase/ Commercialization Stage
• leading edge as the company starts to recover the costs
and expenses that have been incurred and
• plus the technology developed begins to gather strength
• goes beyond the initial point of development to get
accepted in the market
• company creates all the hype and promotion of the
innovation and
• newness of the technology grabs the attention
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9. 3. Maturity Phase/Diffusion Stage
• arrives when the gains from the technology are high and
stable, technology developed is well accepted by the public
• as the competitors are well aware of the technology
developed, the market has reached the point of saturation
• revenues start to get slow down as the technology
developed starts to become yet another commodity in the
market
• 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
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10. 4. Decline Phase/Substitution Stage
• decline phase is inevitable in nature
• when the companies witness gradual decrease in sales of
its products, there is an emergence of the
new/replacement of the technology
• companies reach the point where there are no returns at
all and further developments are not profitable at all
• best possible step is to move out of the current technology
and plant its resources on the new project that is sure to
yield more profits
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11. • After reaching a point such as D in the above diagram,
the earnings from the technology begin to decline rather
rapidly
• To prolong the life cycle,
– owners of technology might try to license it out at some point L
when it can still be attractive to firms in other markets
• This, then, traces the lengthening path, LL'
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12. • In the early 2000’s the mobile brand Nokia was one of the best
of the crops
• was much loved and adored by its loyal customers
• The Symbian technology used in its mobile phones was an
instant hit with the customers
• the brand was the market leader for a very long time until the
inception of ios and Android technologies by Apple and Google
• that were high on the levels of revolutionary ideation and
innovation leading to the decline stage of Nokia and its
technologies
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