Explain the technology life cycle.

Question

What will be an ideal response?

Answer 1

Answer: Technological innovations typically follow a predictable pattern called the technology life cycle. Early progress can be slow as competitors continually experiment with product design and operational characteristics to meet consumer needs. This stage is where the rate of product innovation tends to be highest. Once early problems are resolved and a dominant design emerges, improvements come more from process innovations to refine the technology. At this point managers gain advantage by finding process efficiencies and lower cost. Eventually the new technology begins to reach the upper limits of both its performance capabilities and the spread of its use. Development slows and becomes increasingly costly, and the market becomes saturated (there are few new customers). The technology can remain in this mature stage for some time or can be replaced quickly by another technology offering superior performance or economic advantage. Life cycles can take decades or even centuries, as with iron- and steel-making technologies. Significant innovations, often entirely new technologies, are followed by many small, incremental innovations. Ongoing development of a technology increases the benefits it provides, makes it easier to use, and generates new applications. In the process, the technology spreads to new adopters.