The technology life cycle shows the journey your technology takes. From its exciting birth and growth; to its inevitable decline and eventual death 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.
Technology undergoes 4 stages:
1. Introduction Stage
It is the buildup stage of technology where it is being tested by early adopters. A lot of revenue is used to develop the technology.
At this stage get early adopters on board and get as much feedback as possible.
2. Growth Stage
You will want to take advantage of newness of the technology and start creating extra customers.
3. Maturity Stage
The technology is fully accepted by the public. The market has reached a saturation point and competitors are now catching up. Revenues begin to slow down. The strategy at this stage is:
• To maintain public interest in your technology.
• Trade upwards (increase more features of the technology)
4. Decline Stage
This is a stage where you‘ll see a decrease in sales or the emergence of a replacement technology.
Further development is not profitable.
The strategy here is to phase out the current technology and move resources to a new project that yields more profits. Technology life cycle seeks to predict the adoption, acceptance and decline of a new technology innovation. This allows for a more accurate reading of whether more research and development is needed.