7/23/2019 Chapter 5 Technology Life Cycles

1/14

Co

pyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsreserv

ed.

MANAGEMENT

ofThe Key to Competitiveness

and WealthCreation

TECHNOLOGY

Tarek Khalil | Ravi Shankar

7/23/2019 Chapter 5 Technology Life Cycles

2/14

Co

pyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsreserv

ed.

Technolo

gy LifeCycles

0

7/23/2019 Chapter 5 Technology Life Cycles

3/14

Copyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsreserv

ed.

THE DIFFUSION OF MOBILE

COMMUNICATIONS (Contd.

Installed base of phones

(landline only), mobile phones

and personal computers in

USA, Sweden and Japan, from

1875 to 1999

7/23/2019 Chapter 5 Technology Life Cycles

4/14

Copyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsreserv

ed.

THE S!CU"#E OF

TECHNOLO$ICAL %"O$"ESS

The S-curve of technological progress

7/23/2019 Chapter 5 Technology Life Cycles

5/14

Copyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsreserv

ed.

THE S!CU"#E OFTECHNOLO$ICAL %"O$"ESS

(Contd.

Changes in natural limits of technology

The rate of performance improvement is shown for two technologies

7/23/2019 Chapter 5 Technology Life Cycles

6/14

Copyright20

12byTheMcGraw-

HillCom

panies,Inc.Allrightsreserv

ed.

THE TECHNOLO$& LIFE C&CLE

AND MA"'ET $"OTH

Market growth at different stages of the technology life cycle

7/23/2019 Chapter 5 Technology Life Cycles

7/14

Copyright20

12byTheMcGraw-

HillCom

panies,Inc.Allrightsreserv

ed.

MULTI%LE!$ENE"ATION

TECHNOLO$IES

Multiple-generation technologies

Sub-technology life

cycles in multiple

generations of

innovation shape the

overall technology

life cycle

7/23/2019 Chapter 5 Technology Life Cycles

8/14

Copyright20

12byTheMcGraw-

HillCom

panies,Inc.Allrightsreserv

ed.

TECHNOLO$& AND MA"'ET

INTE"ACTION(Contd.

Market Pull

Combined effect of technology push andmarket pull

Integrating technology push and marketpull to stimulate innovation

7/23/2019 Chapter 5 Technology Life Cycles

9/14

Copyright20

12byTheMcGraw-

HillCom

panies,Inc.Allrightsreserv

ed.

THE %"ODUCT LIFE C&CLE

Product-market life cycle

7/23/2019 Chapter 5 Technology Life Cycles

10/14

Copyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsr

eserv

ed.

THE %"ODUCT LIFE C&CLE(Contd.

Technological progress

The progress of

technology is shown

in relation to

product and process

innovation

7/23/2019 Chapter 5 Technology Life Cycles

11/14

Copyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsr

eserv

ed.

DIFFUSION OF TECHNOLO$&(Contd.

Diffusion curves

7/23/2019 Chapter 5 Technology Life Cycles

12/14

Copyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsr

eserv

ed.

THE DIFFUSION)COMMUNICATION!CHANNEL

"ELATIONSHI%

The diffusioncommunication-channelrelationship

This relationship can

be used to forecast the

rate of adoption of

innovation

7/23/2019 Chapter 5 Technology Life Cycles

13/14

Copyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsr

eserv

ed.

THE DIFFUSION)COMMUNICATION!CHANNEL

"ELATIONSHI% (Contd.

Innovation-decision time

7/23/2019 Chapter 5 Technology Life Cycles

14/14

Copyright20

12byTheMcGraw-HillCom

panies,Inc.Allrightsr

eserv

ed

EBLIN'S

http://www.druid.dk/uploads/tx_picturedb/ds2003-885

.pdf

http://www.jstor.org/discover/10.2307/2090611?uid=2

&uid=4&sid=21101263748217

http://www.druid.dk/uploads/tx_picturedb/ds2003-885.pdfhttp://www.druid.dk/uploads/tx_picturedb/ds2003-885.pdfhttp://www.jstor.org/discover/10.2307/2090611?uid=2&uid=4&sid=21101263748217http://www.jstor.org/discover/10.2307/2090611?uid=2&uid=4&sid=21101263748217http://www.jstor.org/discover/10.2307/2090611?uid=2&uid=4&sid=21101263748217http://www.jstor.org/discover/10.2307/2090611?uid=2&uid=4&sid=21101263748217http://www.druid.dk/uploads/tx_picturedb/ds2003-885.pdfhttp://www.druid.dk/uploads/tx_picturedb/ds2003-885.pdf