TECHONOMIC METRIC PROCESS

• Determine major technical contributors to performing an endeavor.
• Determine a consistent cost measurement for the delivery of the endeavor.
• Combine the technology performance with the delivered endeavor cost to
create a single metric (typically: unit/$).
• Track techonomic metric over time to monitor evolution of the endeavor.
• Techonomic metrics are most valuable when:
1. They broadly address all important contributors.
2. Subjective data are minimized.
In periods when technological change is slow, market forces of supply and
demand control the economy. But in periods of rapid development, technology
revolutionizes production methods, resulting in enormous economic efficiencies and
organizational impact. The fundamental purpose of techonomic analysis is to be able
to spot trends that lead to success in the marketplace and also use understanding of
those trends to determine when to enter the marketplace. In the following chapters
we will use history as a teacher of techonomic trends and develop techonomic metrics
to predict those trends into the future.