Question

You will submit your Adoption and Strategies Proposal for the innovative technology that you selected. You will identify different adoption timelines and strategies that can be applied within the business scenario and justify the adoption timeline and strategy that your analysis indicates is the best option for the business scenario. Specifically the following critical elements must be addressed:

1. Phase: In what phase of the technology life cycle is the chosen technology? When is the ideal time for adopting this particular technology?

2. Timeline: Based on the technology adoption models, what possible timelines of adoption could be implemented, and which timeline best fits the needs of the organization?

3. Variables: What variables affect the timing and implementation of new technologies?

Answer 1

1.

The technology life cycle (TLC) describes the costs and profits of a product from technological development phase to market maturity to eventual decline. Research and development (R&D) costs must be offset by profits once a product comes to market. Varying product lifespans mean that businesses must understand and accurately project returns on their R&D investments based on potential product longevity in the market.

Due to rapidly increasing rates of innovation, products such as electronics and pharmaceuticals in particular are vulnerable to shorter life cycles (when considered against such benchmarks as steel or paper). Thus TLC is focused primarily on the time and cost of development as it relates to the projected profits. TLC can be described as having four distinct stages:

Technology life cycle chart: This chart illustrates the stages in the technological life cycle.

• Research and Development – During this stage, risks are taken to invest in technological innovations. By strategically directing R&D towards the most promising projects, companies and research institutions slowly work their way toward beta versions of new technologies.
• Ascent Phase – This phase covers the timeframe from product invention to the point at which out-of-pocket costs are fully recovered. At this junction the goal is to see to the rapid growth and distribution of the invention and leverage the competitive advantage of having the newest and most effective product.
• Maturity Stage – As the new innovation becomes accepted by the general population and competitors enter the market, supply begins to outstrip demand. During this stage, returns begin to slow as the concept becomes normalized.
• Decline (or Decay) Phase – The final phase is when the utility and potential value to be captured in producing and selling the product begins dipping. This decline eventually reaches the point of a zero-sum game, where margins are no longer procured.

2.

An innovative/visionary type would be classified as a company and management team who take risks and are eager to adopt new technologies quickly. They welcome change and are open to risk because they see the payoff to be significant, either in the form of profits, efficiency of operation, inspiration to employees, leadership in the field, or any number of other forms. They understand that early adoption may not always work out, but they thrive on the excitement of the technology. This type of company tends to hire enthusiastic, flexible overachievers who are driven to succeed and want a new technology the second it goes into early beta stages of development.

An early adopter would be classified as a management team and organization that needs some stability before moving forward but looks to its future, always wanting to have the latest technology as soon as it is released. They are well-informed on new technologies as they develop and emerge, and research the potential benefits of adopting the latest and greatest. These people are leaders when it comes to implementing new things, but they lead more cautiously than the innovative/visionary group. An early adopter differs from an innovative/visionary as they do not take as much risk.

The average adopter is defined as the company and management team who must eventually move to the technology so they will not be left behind. They dont seek the thrill and leadership role of being one of the first out of the chute. And while they may acknowledge the possible payoffs of the new technology, they prefer not to leave that which is comfortable. They take very little risk and only change because everyone else is doing it. They basically keep up with the Jones'.

Conservative management and organizations want to take no risk at all and resist change. They will wait as long as possible to adopt a new technology, and have the attitude of ''if it isn't broke, don't fix it''. These are companies that fight to the very end when forced to change or adopt any piece of new technology.

Keep in mind that the position of your management team toward change and your company culture can vary depending on the type of technology you are introducing. You may be cutting-edge on collaboration technology, but conservative on your hardware infrastructure.

3.

Product development and capitalizing on the new invention covers the business side of these R&D investments in technology. The other important consideration is the differentiation in consumer adoption of new technological innovations. These have also been distributed into phases which effectively summarize the demographic groups presented during each stage of TLC:

Technology adoption life cycle: This adoption chart highlights the way in which consumers embrace new products and services.

• Innovators – These are risk-oriented, leading-edge minded individuals who are extremely interested in technological developments (often within a particular industry). Innovators are a fractional segment of the overall consumer population.
• Early Adopters – A larger but still relatively small demographic, these individuals are generally risk-oriented and highly adaptable to new technology. Early adopters follow the innovators in embracing new products, and tend to be young and well-educated.
• Early Majority – Much larger and more careful than the previous two groups, the early majority are open to new ideas but generally wait to see how they are received before investing.
• Late Majority – Slightly conservative and risk-averse, the late majority is a large group of potential customers who need convincing before investing in something new.
• Laggards – Extremely frugal, conservative, and often technology-averse, laggards are a small population of usually older and uneducated individuals who avoid risks and only invest in new ideas once they are extremely well-established.

Taking these two models into consideration, a business unit with a new product or service must consider the scale of investment in R&D, the projected life cycle the technology will likely maintain, and the way in which customers will adopt this product. By leveraging these models, businesses and institutions can exercise some foresight in ascertaining the returns on investment as their technologies mature.

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