Marketing91

  • HOME
  • Marketing Concepts
    • Marketing
      • Retail Tutorials
      • Market Research
      • Customer Management
    • Strategy
    • Management
    • Advertising
    • Branding
    • Business
    • Finance
    • Sales
    • Career Guidance
  • Digital Concepts
    • Blogging
    • Search Engine Optimization
    • Social Media Marketing
    • Facebook Marketing
    • Internet Marketing
    • Ecommerce
  • Brands
    • Marketing Mix of Brands
    • SWOT analysis of Brands
    • Brands Strategy Analysis
    • Business Models
    • Brand Competitors
    • TOP 10
  • Courses
Home » Strategy » What is Technology Life Cycle? 4 Stages of Technology Life Cycle

What is Technology Life Cycle? 4 Stages of Technology Life Cycle

April 17, 2019 By Hitesh Bhasin Tagged With: Strategy

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.  

Table of Contents

  • Breaking Down the Technology Life Cycle
  • The 4 phases of the Technology Life Cycle :
    • 1) Research and Development Phase
    • 2) Ascent Phase
    • 3) Maturity Phase
    • 4) Decline Phase
  • The 4 stages of Technology Life Cycle :
    • 1)  Innovation Stage
    • 2) Syndication Stage
    • 3) Diffusion Stage
    • 4) Substitution Stage
  • Example of the Technology Life Cycle
    • 1) Nokia

Breaking Down the Technology Life Cycle

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.

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 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 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 more 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.

Example of the Technology Life Cycle

1) Nokia

Technology Life Cycle - 3

In the early 2000’s the mobile brand Nokia was one of the best of the crops and was much loved and adored by its loyal customers. The Symbian technology used in its mobile phones was an instant hit with the customers and the brand was the market leader for a very long time until the onset of IOS and Android technologies by Apple and Google that were high on the levels of futuristic ideation and innovation leading to the decline stage of Nokia and its technologies.

Share this post:

Share on Facebook Share on Twitter Share on LinkedIn Share on Email Share on WhatsApp
Digiaide Marketing and Digital Marketing Courses

Related posts:

  1. Industry Life Cycle – Stages Of Industry
  2. What is Disruptive Innovation?
  3. Above 30 Marketing and strategy models and concepts
  4. Market Development – 4 Steps and 5 Types Of Market Development
  5. What is Diffusion of Innovation? Theory by Everett Rogers
  6. What is the Importance of Innovation to an Organization?
  7. BCG Matrix Explained – Boston Matrix Model Analysis and Advantage
  8. Ansoff Matrix Theory Examples of Business Strategies for Future Growth
  9. The Top 10 Strategy Framework for Businesses Explained
  10. Barriers To Entry: Meaning, Types, Examples

What Do You Want To Learn About? (Start Here)

  1. Marketing Hub
  2. Management Hub
  3. Marketing Strategy
  4. Advertising Hub
  5. Branding Hub
  6. Market Research
  7. Small Business Marketing
  8. Sales and Selling
  9. Marketing Careers
  10. Customer Management
  11. Top 10 Lists
  1. Internet Marketing
  2. Blogging
  3. Search Engine optimization
  4. E-commerce
  5. Facebook Marketing
  6. Social Media Marketing
  7. Business Model of Brands
  8. Marketing Mix of Brands
  9. Brand Competitors
  10. Strategy of Brands
  11. SWOT of Brands
GET DAILY MARKETING UPDATES

About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Accordions
Part 1 - Models of Strategy
  1. Ansoff Matrix - The growth share Matrix of Ansoff
  2. BCG Matrix or BCG analysis
  3. Product Life Cycle
  4. Benefits and limitations of Product life cycle
  5. SWOT Analysis
  6. 7s Framework by McKinsey
  7. Porter's Diamond Model
  8. SOAR analysis explained
  9. The GE McKinsey matrix
  10. Porter's Value Chain Model
Part 2 - Models of Strategy
  1. Michael Porter's Five forces model for industry analysis
  2. Mintzberg's 10 school of thoughts for Strategy formulation
  3. PESTLE analysis
  4. Competitive profile matrix and analysis
  5. Competitor Analysis
  6. Strategies of market leaders
  7. Product Differentiation
  8. Types of Differentiation Strategies
  9. Gap analysis
  10. Process of Gap Analysis
Part 3 - Models of Strategy
  1. EPRG Framework and its 4 Stages
  2. Opportunity analysis
  3. Core competency
  4. Diffusion of Innovation
  5. What are Strategic business units and their advantages
  6. 6 reasons why Strategic Business Units are Important
  7. Sustainable competitive advantage (SCA)
  8. The Supply and Demand Curve
  9. Triple Bottom Line Concept
  10. Vertical integration - Three types of vertical integration
Part 4 - Models of Strategy
  1. What is 3C Model by Ohmae?
  2. What is Bowman's Strategy Clock?
  3. What is CAGE Framework?
  4. What is Disruptive Innovation?
  5. What is House of Quality?
  6. What is Technology Life Cycle?
  7. What is The Kraljic Matrix - Portfolio Purchasing Model?
  8. What is Vrio Analysis?
  9. Defensive Marketing
  10. Economies of Scale
Part 5 - Models of Strategy
  1. Product line competition Explained
  2. What is Six Sigma? Six Sigma Concept Explained
  3. What is Total Quality Management?
  4. What is Turnaround Management?
  5. Wheel of consumer analysis
  6. What is Benchmarking? Importance of Benchmarking
  7. 9 Types of Benchmarking
  8. 7 reasons diversification strategy is better
Recent posts
  • Books of Accounts – Definition, Formats and Types
  • Capital Reserves – Definition, Example and Exceptions
  • Book Value Formula – Definition and Calculation

Marketing91

MORE INFO

  • About Marketing91
  • Privacy Policy
  • Cookie Policy
  • Disclaimer
  • Terms of Use
  • Advertise
  • Contact us
  • Sitemap
  • ISO 9001:2015 Certified

LEARNING SERIES

  • What is Communications
  • Types of Communication

WE WRITE ON

  • Marketing
  • Small Business
  • Management
  • Internet Marketing
[email protected]

Copyright © 2022 Marketing91 All Rights Reserved