Budgeting Technology Expenditures
A concept related to the technology S-curve is the technology trend curve. While the technology S-curve compares the resources and effort put into a technology with the way it performs, the technology trend curve is helpful “in providing guidance to the nature and extent of the various technology projects that a high-technology company should invest in. In other words, it presents a simple way of examining the portfolio of technology investments to provide a quick pulse of the company.”9
When a value-based management approach to technology projects is being considered, the trend curve is a useful tool. It shows three categories of technology (trailing-edge, leading-edge, and bleeding-edge) and looks similar to Exhibit 2.10. Each organization would invest in technology within the recommended percentages; therefore each organization's technology trend curve will look different. The technology trend curve can give organizations some guidelines on how to allocate their investment in technology.
The three categories ...
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