The technology life cycle describes the profit and price of a specific technology throughout its useful life, including its initial development stage, and its eventual economic return during its “commercial life”. it’s important to stay this in perspective because, as a technology grows, its cost can grow and its utility cost can increase. In fact, the last word goal of any entrepreneur, from the earliest investor seeking capital for research and development to the most important corporation seeking a lucrative niche, is to form technology “pay for itself” over time. More importantly, the life-cycle of a technology should be considered an investment within the long-term success of any business or organization.
There are four stages within the technology life cycle, each of which is defined by the technology’s “investment” within the enterprise or the corporate . These investments include the prices of making the technology within the first place, and people costs are only discounted over the course of three stages. These three stages are the testing, demonstration, and deployment stages. There also are four primary venture capitalists within the market who play a key role in each of those three stages.
The testing stage is that the most vital of the stages because it provides the corporate with real-time data regarding the performance of their new product or technology. Venture capitalists wish to see tangible results from their investments, which is why this phase is usually called the proof of the pudding experiment. The testing phase provides a way of confidence within the abilities of the corporate to proceed with their planned activities. However, this confidence will fade because the companies’ implementation continues and therefore the product or technology begins to lose market share to skilled competitors. Venture capitalists may begin to say no a technology if the market share gains aren’t substantial enough to justify the risk capital investment.
This is the stage where the potential for revenue becomes evident and it becomes necessary for the corporate to work out whether the potential exists to justify further development. During this stage investors should stay updated on the products progress and its impact on the general marketplace. the first adopters become the first majority, which drives the longer term growth of the market. A technology that fails to draw in an early majority of early adopters won’t achieve success within the end of the day . additionally , technology that draws an outsized percentage of early adopters can typically enjoy rapid and sustainable growth, which serves to scale back the danger of a venture bankruptcy in these markets.
The next two periods, the demonstration and deployment phases, leave a more tangible outcome of the technology. The presentation and demonstration phase to permit for an indication of the usefulness of the technology to a 3rd party. Ventures can provide an indication of their technology to a 3rd party by deploying the technology during a setting or situation where the technology are often readily demonstrated to a 3rd party. Venture capitalists wish to see prototypes and real-world usage examples in order that they can properly evaluate whether the technology as an entire are going to be profitable also as useful to potential customers. Venture capitalists can also review financial metrics like gross and net worth as a part of their evaluation during this stage of the risk capital investment.
Finally at the substitution stage, which is that the end , a replacement technology developed has been deployed into the market and is during a position to compete with other technology. This competitive setting provides a far better place for the technology to be tried on various market segments. the top results of the investment within the substitution stage is that the most promising scenario for future profitability and growth.