Impact of Technology Commoditization on Learning Curves PPT

This PPT slide, part of the 25-slide Technology Commoditization PowerPoint presentation, focuses on the concept of technology commoditization and its implications for new entrants in the market. It introduces the learning curve as a framework for understanding how proficiency in a task correlates with the time and effort invested. The graph illustrates that performance improves with increased learning effort,, but the text challenges the notion of a "steep learning curve." It argues that this phrase inaccurately suggests that acquiring technical expertise is inherently difficult and time-consuming.

The content emphasizes that emerging technology companies can circumvent traditional barriers to entry, such as extensive practice and experience. This is largely due to the transfer of tacit knowledge from established firms to newcomers, often through employee movement. Such dynamics enable these new players to rapidly develop their capabilities and pose significant challenges to established competitors.

The slide also highlights that knowledge is increasingly embedded in tools used for design and manufacturing, which further accelerates the learning process for new entrants. This shift allows them to compete effectively in the market, even without the historical experience that typically benefits established firms. The mention of "kamikaze industries" suggests that the rapid pace of commoditization can lead to volatile market conditions where traditional advantages are quickly eroded.

Overall, the slide presents a compelling argument for potential customers to consider how technology commoditization alters the competitive dynamics of their industries. It encourages a reevaluation of traditional assumptions about learning and expertise in the face of evolving market conditions.

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