Technology Life Cycle is a model that describes the different stages that a technology goes through from its initial development to its eventual decline. It can help businesses and innovators understand the stages of technology development, anticipate future trends, and make strategic decisions about investment and development

1. TECHNOLOGY LIFE CYCLE
ROSHAN BHATTARAI

2. THE TECHNOLOGY LIFE CYCLE MODEL
• is a model that describes the different stages that a technology goes through
• from its initial development to its eventual decline
• can help businesses and innovators understand
• the stages of technology development,
• anticipate future trends, and
• make strategic decisions about investment and development

3. Four stages in the technology life cycle:
• the innovation stage,
• the commercialization stage,
• the diffusion stage, and
• the substitution stage

4. THE INNOVATION STAGE (R&D PHASE)
• earliest stage of the technology life cycle
• characterized by the initial development and introduction of a new technology
• the technology is often untested and experimental
• there may be few or no competitors in the market
• Innovators invest heavily in research and development to refine the technology
and demonstrate its potential benefits

5. THE COMMERCIALIZATION STAGE (GROWTH PHASE)
• the technology begins to gain wider acceptance and adoption
• gains more demand for the product or service
• technology is refined and improved, and new competitors enter the market
• profits for early adopters and innovators can be high, but competition can also be
fierce

6. THE DIFFUSION STAGE (MATURITY PHASE)
• the technology becomes more standardized and widely adopted
• growth begins to slow down
• the market becomes more saturated, and competition becomes more intense
• Companies focus on reducing costs and increasing efficiency, rather than investing
in new innovations
• Profits are often lower than in the growth stage

7. THE SUBSTITUTION STAGE (DECLINE PHASE)
• demand begins to decline
• companies may continue to sell the product or service, but profits are low
• investment in new innovation declines
• eventually, the technology becomes obsolete, and
• companies must adapt or move on to new technologies

8. It’s important to note that
• not all technologies follow this exact cycle
• the length and intensity of each stage can vary depending on the technology and
market conditions
• understanding the technology life cycle can help businesses and innovators make
strategic decisions about investment and development, and
• prepare for future trends and changes in the market

9. THE 4 PHASES OF THE TECHNOLOGY LIFE CYCLE
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'
Business
gain

10. • 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

11. TECHNOLOGY ADOPTION LIFE CYCLE
• The technology adoption life cycle typically occurs as in the shape because
customers respond to new products in different ways
• people have different levels of readiness for adopting new innovations and
that the characteristics of a product affect overall adoption

12. • Rogers classified individuals into five groups:
• innovators,
• early adopters,
• early majority,
• late majority, and
• laggards.
• In the curve, innovators occupy 2.5%, early adopters 13.5%,
early majority 34%, late majority 34%, and laggards 16%

13. ADOPTER CATEGORY
Innovators
• Innovators are :
• willing to take risks,
• have the highest social status,
• have financial liquidity,
• have closest contact to scientific sources and interaction
with other innovators
• Their risk tolerance allows them to adopt technologies
that may ultimately fail

14. Early adopters
• These individuals have the highest degree of opinion leadership among the
adopter categories
• They have:
• higher social status,
• financial liquidity,
• advanced education
• more socially forward than late adopters
• more tactful in adoption choices than innovators

15. Early Majority
• They adopt an innovation after significantly longer time
than the innovators and early adopters
• Early Majority have
• above average social status,
• contact with early adopters and
• relatively hold lower positions of opinion leadership in a
system

16. Late Majority
• They adopt an innovation after the average participant
• approach an innovation with a high degree of doubt and after the majority
of society has adopted the innovation
• They are typically
• doubtful about an innovation,
• have below average social status,
• little financial liquidity,
• in contact with others in late majority and early majority and
• very little opinion leadership

17. Laggards
• They are the last to adopt an innovation
• individuals in this category show no opinion leadership
• These individuals typically have
• lowest social status,
• lowest financial liquidity,
• oldest among adopters, and
• in contact with only family and close friends

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