The degree of competitive advantage offered by a technology will change
as the technology progresses through the three phases of the lifecycle.
In the development stage, competitive advantage belongs to the innovator
whose technology has the greatest advantage.
In the early phase of the growth cycle, the technology has the potential
for changing the basis of competition and is called a
pacing technology [29].
In the rapid growth phase, technologies associated with dominant designs
offer performance advantages and potentially competitive advantages if other
firms do not have similar technologies. Such technologies are called
strategic or
key technologies [30] and should be a focus of your firm’s internal development.
During the mature stage, the technology becomes a commodity that is generally
accessible across the industry. It no longer offers competitive advantage and is called a
base or
enabling technology [29].
Strategic or Key Technologies
These are proprietary to some degree and your organization should seek to control them.
They differentiate your organization from its competition by enabling it to provide greater
value to its customers. These technologies provide your products with their competitive advantages.
Sometimes these are called core technologies. We do not like to use this term because it interferes
with a proper understanding of core competencies, since core competencies can comprise all types of
technologies, not just strategic ones.
Pacing Technologies
Are those that have the potential to become key technologies in the future.
Enabling Technologies
These are technologies that are essential to the quality and efficiency of the design,
manufacture and delivery of the organization’s products or services. They are, however, broadly
available to members of the industry and therefore offer little strategic value.
General forms of information technology, networks and CAD tools would find their place here.
The strategic choices of which markets and technologies to be involved with is becoming
increasingly complex as technology domains become more interrelated.
Use our expert assistance to provide you with a fresh perspective. Come and talk to us.
info@strategies2innovate.com
Learn about other important topics such as managing technological change.
