The Technology Commoditization Curve Simplicable

Technology Commoditization

Technology Commoditization The simplicable technology commoditization curve shows the path of technology prices over time. all technology, whether it be hardware, software or a service becomes commoditized with time. Many tend to view every product in every market as differentiated, making it a challenge to evaluate broader markets and technology landscapes to identify markets moving to commoditization.

Technology Commoditization

Technology Commoditization Knowledge embedded within state of the art production and design tools is a powerful force that is leveling the global technology playing field. it democratizes innovation and makes future competition ever more challenging. What is the commoditization of technology? what are some examples and will it affect manufacturing? read our blog post to learn this and more!. A particular technology becoming a commodity also spurs innovation in other areas, a good example of this is the “mobile phone dividend”. volume production of mobile phones forced the commoditisation of batteries, sensors, and high efficiency processors. The commoditization level of it markets acts as a moderator dampening this positive relationship. this implies that it firms should take existing commoditization levels as well as a mix of it product innovation types into account as part of their innovation strategy.

The Technology Commoditization Curve - Simplicable

The Technology Commoditization Curve - Simplicable A particular technology becoming a commodity also spurs innovation in other areas, a good example of this is the “mobile phone dividend”. volume production of mobile phones forced the commoditisation of batteries, sensors, and high efficiency processors. The commoditization level of it markets acts as a moderator dampening this positive relationship. this implies that it firms should take existing commoditization levels as well as a mix of it product innovation types into account as part of their innovation strategy. What has changed dramatically is the speed with which most technology markets move through the tech commoditization curve stages. this exponential acceleration of technology market commoditization has outpaced any evolutionary procurement and vendor management processes. Commoditization is the tendency for certain types of products and services to become a commodity over time. this means that customers begin to purchase the lowest price item every time as they view products in a category as more or less the same. the following are common examples. This ppt slide presents an analysis of how technology commoditization impacts overall costs, particularly focusing on value added costs. it references the foundational work of bruce henderson from the boston consulting group, who introduced the unit cost model and the experience curve concept. The experience of many technology based industries shows the existence of powerful long term dynamics that lead to "commoditization" of products and services. these industries exhibit recurring cycles in investment, capacity utilization, prices, margins, and return on capital.

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