Technology S-Curve

The performance of the product increases rapidly initially and once there is a decline in the slope the productivity doesnt improve in spite of the increase in RD investments. Initially at the beginning of the curve, extra effort is required to extract a high performance from the product. However, once this bit is done productivity advances significantly with marginal input. Later, when a new generation technology is introduced advances to the previous generation technology stays limited and it eventually phases out. This leads to a creation of a new S-Curve which is shifted to the right of the Original S-Curve.

It helps in assessment of a technology in its different stages. It helps in identifying the need to re-align strategy when productivity declines and in turn warn of any technology obsolescence.

The S-Curve framework doesnt provide a roadmap to the managers about how to deal when the technology is no longer exhibiting performance. It doesnt help in estimating the gains one can make from new technologies. As it is a generalization from various technology paths as observed, the size and the structure of the S-Curve can vary so one cant determine the right time to invest in new technology and abolish the existing one.

The S-Curve framework is deduced from studies done on technologyfirm performances and it can be used along with other frameworks to provide a suitable recommendation.