TECHNOLOGY LIFE CYCLE

C
Upasna Sharma 45 Sakshi Uppal 44 Kritika Dua 59 Samahita Ghosh 57

The technology life-cycle (TLC) describes the commercial gain of a product through the expense of research and development phase, and the financial return during its "vital life".

Life cycle varies

steel, paper or cement manufacturing, have a long lifespan (with minor variations in technology incorporated with time) electronic or pharmaceutical products, the lifespan may be quite short.

How is TLC different from Product development cycle?....

PDC is concerned with the life of a product in the market-place in respect of timing of introduction, marketing measures and business costs. The technology underlying the product (such as, for example, that of a uniquely flavored tea) may be quite marginal but the process of creating and managing its life as a branded product will be very different. The technology life cycle is concerned with the time and cost of developing the technology, the timeline of recovering cost and modes of making the technology yield a profit proportionate to the costs and risks involved. The TLC may, further, be protected during its cycle with patents andtrademark seeking to lengthen the cycle and to maximize the profit from it. The 'product' of the technology may just be a commodity such as the polyethylene plastic or a sophisticated product like the ICs used in a smartphone.

Phases of TLC
(a) the research and development (R&D) phase or "bleeding edge (b) the ascent phase or "leading edge (c) the maturity phase (d) the decline or decay phase

1- R&D
Investigative activities that a business chooses to conduct with the intention of making a discovery that can either lead to the development of new products or procedures,or to improve the existing products or procedures.

Common link??????

Research and development is one of the means by which business can experience future growth by developing new products or processes to improve and expand their operations. incomes from inputs are negative and where the prospects of failure are high

2-Ascent phase
Technology becomes known and is in demand out-of-pocket costs have been recovered

the technology begins to gather strength

3-Maturity phase
Technology is widely used by the consumer gain is high and stable

the technology demand is stable

4-Decline phase
Technology is rarely demanded by the consumer declining gain Very less utility of the technology Newer technologies take away the share

LICENSING OPTIONS

In current world trends, with TLCs shortening due to competition and rapid innovation, a technology
becomes technically licensable at all points of the TLC, whereas earlier, it was licensed only when it was past its maturity stage. Large corporations develop technology for their own benefit and not with the objective of licensing.

Licensing in the R&D phase

LICENSING IN ASCENT PHASE

The ascent is the strongest phase of the TLC because it is here that the technology is superior to alternatives and can command premium profit or gain. The slope and duration of the ascent depends on competing technologies entering the domain, although they may not be as successful in that period. Strongly patented technology extends the duration period.
Till this stage is reached, the technology-owning firm would tend to exclusively enjoy its profitability, preferring not to license it. If an overseas opportunity does present itself, the firm would prefer to set up a controlled subsidiary rather than license a third party.

LICENSING IN THE MATURITY PHASE The maturity phase of the technology is a period of stable and remunerative income but its competitive viability can persist over the larger timeframe marked by its 'vital life'. However, there may be a tendency to license out the technology to a third-parties during this stage to lower risk of decline in profitability (or competitivity) and to expand financial opportunity.
In addition to providing financial opportunity it allows the technology-owner a degree of control over its use. Gain flows from the two streams of investment-based and royalty incomes.Further, the vital life of the technology is enhanced in such strategy.

LICENSING IN THE DECLINE PHASE

Licenses obtained in this phase are 'straight licenses'. They are free of direct control from the owner of the technology (as would otherwise apply,say, in the case of a jointventure). Further, there may be fewerrestrictions placed on the licensee in the employment of the technology.The utility, viability, and thus the cost of straight-licenses depends on the estimated 'balance life' of the technology. For instance, should the key patent on the technology have expired, or would expire in a shortwhile, the residual viability of the technology may be limited, although balance life may be governed by other criteria viz. knowhow which could have a longer life if properly protected.

In any case, access to technology in the decline phase is a large risk that the licensee accepts. (In a joint-venture this risk is substantially reduced by licensor sharing it). Sometimes, financial guarantees from the licensor may work to reduce such risk and can be negotiated.

TECHNOLOGY LIFECYCLE ADVANTAGE

Reduced risk

with a seamless approach. Lower technology, services & administrative cost Rapid response time and faster remediation when events occur. Everyone knows who needs to take action

Technology Life Cycle for Competitive Advantages

A company that wants to get the most out of its technology must plan carefully to realize the full market value of that technology at all stages of its Technology Life Cycle (TLC) evolution. The TLC generally identifies the various phases that product technologies go through during their lifetimes. Technology Development begins long before any production, when research shows a potentially valuable technology. Since everything is in Micronics stage, the major focus will be on whether further development of technology should take place.

The technology may have several potential but unclear and possibly unrelated applications. It may be clear as to which application would produce rewards matching investments. Once a company decides to apply a technology to a new product whether for its own products or for production by others it incurs its first major costs. In view of the heavy initials costs, companies usually take a cautious approach at this stage. When incorporating technology in a product, companies incur heavy costs in developing associated process and product technologies available with other companies. It may be necessary to join hands either through licensing or joint bearing strategies.

TECHNOLOGY LIFECYCLE MANAGEMENT

Technology Lifecycle Management (TLM) is a multiphased approach that encompasses the planning, design, acquisition, implementation, and management of all the elements comprising the IT infrastructure. The convergence of in-depth technical knowledge, astute business processes, and expert engineering and financial services into a solid business model enables

Technology lifecycle management follows the

following steps :
Asses and identify.
Technology

acquisition. Integrate and implement. Support services. Technology refresh. Asset disposal.