Introduction
When a new technology emerged in the market, it undergoes a certain life cycle wherein it is being assessed based on how people adhere to its benefits, how the technology trends in terms of usage, and how it will become outdated and eventually decreases in value, both in monetary and usage (Boundless, 2016). Economically speaking, the technology life cycle greatly depends on how the consumer accepts the product, which in turn depends on the convenience it gives to people. Based from this, along with the other factors such as the time, costs, risks, and marketing, the life cycle can be predicted, and will be useful to the people that are possibly involved in the technology, such as the consumers, the developer, and the sellers.
The Flow/Development of Technology Life Cycle
Technology life cycle can be represented using different models; all of them accurately represent the flow of the technology in the market. Also, the model is based on how a certain criterion has something to do with (Beck, 2013). In this particular paper, the main focus will be the technology life cycle based on its utilization and time. Also, along with this model, the costs, risks, and market conditions are all considered.
The whale model is considered as an accurate representation of the technology life cycle with regards to the utility and time. This model has nine stages which describes how most technology behaves in the market industry (Beck, 2013). It is called a whale because the utility vs. time graph of the nine stages looks like a whale whose half of the body is submerged in water while the other half is exposed above the water surface.
The first stage of the model is conception stage wherein ideas are being brought together in order to form the desired technological innovation. After concepts have been finalized, the ideas will be materialized and transform into products (also called the birth stage), which are then introduced into the market. After this, there will be a certain time when the technology will remain dormant and noticed only by few. This is the third stage, and it is called the childhood stage. After some time, more and more consumers will start accepting the technology and use it; thus, the adolescence stage enters. Moving further in time, the technology will continue to rise in the maturity stage, the next phase. However, in this stage, a gradual decline in the use of technology will happen at the end of the stage. This means that the peak is already reached, and consumers will start to get weary on using the technology. After this, old age stage occurs wherein there is a continuous decline in utility. A more significant decline will occur in the senility stage, and then the technology will then eventually reach the death stage (Beck, 2013). The decline stages after the maturity happens due to several reasons such as the limitations, the changing preferences of the consumers, and the introduction of a newer technology or a new modification of the same technology.
In general, the different factors stated above play crucial roles in the occurrence of such stages. Depending on the circumstance, these factors will either lengthen or shorten the whole cycle.
Time
As evidenced in the whale model, time is an important factor in the life cycle. People changes preferences especially when the technology is frequently used and repetition happens. Also, the preference can change when a new concept has been introduced to the people; thus, making the technology outdated.
Costs
Technology is often related with higher investment costs especially in the research and development phase. As such, the management always makes sure that these costs can be returned once the technology is introduced in the market. Therefore, the technology will be developed in the best way that it can be so that its life cycle will remain in a longer period of time. Also, the interest of the consumers on the product must be maintained, so the technology must be developed to satisfy their needs. Thus, maintenance costs are also needed.
Risks
Evaluation of risks is also considered so that they will be minimized for as long as possible. However, it depends on the efficiency of the strategies implemented. If the technology was made considering the potential risks, then the chances of prolonging its life cycle is relatively higher (Beck, 2013). Some of the possible risks in developing new technology include high development and maintenance costs, dissatisfaction of the consumers, the current demands of the consumers, number of competitors, and its possible advantages and disadvantages over the same product of other companies.
Marketing
Lastly, the market also has a great significance over the life cycle of new technology. This is because consumers always live up to expectations which are provided when the technology is in the process of conceptualization and the technology’s advertisements promised the satisfaction of the consumers (Pepper, 2012). If the technology lives up with the consumers’ expectation, then it will stay long in the gaining stages especially when the expectations continue to serve the consumers. With this, the consumers easily adopt with the new technology, and if fortunate enough, consumers will even provide suggestions for improvement. Therefore, it is important to determine the current trends in the society and how will the rise of technology will respond to meet such trends.
References
Beck, D. (2013). Technology Development Life Cycle Process. Sandia National Laboratories, 1- 96.
Boundless. (2016). The Technology Life Cycle. In Boundless Management. Retrieved April 20, 2016, from https://www.boundless.com/management/textbooks/boundless-management- textbook/organizational-culture-and-innovation-4/technology-and-innovation-37/the- technology-life-cycle-202-3486/.
Pepper, D. (2012). The Market Curve: The Life Cycle Of New. Retrieved April 20, 2016, from http://techcrunch.com/2012/04/01/the-market-curve-the-life-cycle/
Shahmarichatghieh, M., Tolonen, A., & Haapasalo, H. (2015). Product Life Cycle, Technology Life Cycle and Market Life Cycle; Similarities, Differences and Applications. Managing Intellectual Capital and Innovation for Sustainable and Inclusive Society, 1143-1151.
