More Terminology Related Techonomics

Predictable Antiquation.
A shortened useful life of many electronics products
is the result of continuous improvements in performance enhancement
resulting from Moore’s Law. This advance causes a computer bought
today to be obsolete in 2 to 5 years, even though it remains fully functional.
It is no longer compatible with the software and peripherals emerging in
the industry and the user may demand faster system performance.

Product Life Cycle.
The life cycle of a product refers to the period of time in
the marketplace that a particular design will remain a competitive offering.
Due to the impact of Moore’s Law, the product life cycle for consumer
electronics is typically less than 2 years.

Renewable Energy.
An energy source that can be replenished regularly is referred
to as renewable. This term is used to refer to solar, wind, hydro, wave,
bio-fuels, and others that regenerate cyclically through the day or season.
Nuclear breeder reactions also create more fuel than they consume, but
are seldom considered in the definition of renewable energy.

Rolling Warehouse.
Just-in-time delivery often uses trucks for delivering supplies
to product integrators. The work in progress is the work inside the
truck, hence the name rolling warehouse.

Self-Interest.
It is the nature of all organisms and organizations to preserve their
own lives. Self-interest refers to the motivation to make choices conducive
to survival.

Switching Costs.
In transaction analysis, the switching cost is the cost or risk
associated with replacing a supplier should a problem arise. If alternative
suppliers are plentiful and outages are not critical, switching costs are
low. When there are no known alternatives, or the cost of downtime is
great, switching costs are very high.

Techonomics.
Techonomics is a theory of organizational evolution resulting from
the study of technology trends and their economic effects on organizations.
Techonomic Metric.

A measurement based on technology performance and
economic cost. It is used to anticipate trends in organizations.

Techonomic Sweet Spot.
The combination of performance advantages and cost
savings yields
a target where new technology offers significant market
positioning opportunities.

Transaction.
An exchange between parties of endeavor for monetary compensation
is the essence of transactions.

Transaction Costs.
The expenses associated with transactions that determine the
total economic consideration for an exchange. In addition to the price
itself, transaction costs include the cost of transportation, maintenance,
replacement, quality assurance, vendor reliability, etc.

Virtual Age.
The Virtual Age is marked by an ever-expanding digital infrastructure
capable of fulfilling an increasing array of life needs. We have passed
through an Agricultural Age and an Industrial Age, and more recently
through the Atomic Age, Space Age, Information Age, and Biotechnology
Age. The Virtual Age is based upon the three current trends of techonomics
that will propel organizational change throughout the first half of this
century.