Is a new technology just hype that will quickly go down, or will it eventually become mainstream and important to your organization? Many entrepreneurs find it challenging to correctly assess the value of new technology. Should you invest in the new technology to keep up or even stay ahead, or is every dollar spent on it one too many? The Gartner Hype Cycle can help you with these considerations.
The Gartner Hype Cycle
Research and consulting firm Gartner has developed the Hype Cycle as a tool to visualize the maturation of new technologies. Between introduction and full adoption, each new technology goes through five stages:
1. Technology Trigger: the potential technological breakthrough comes full circle, without already having useful products or applications.
2. Peak of Inflated Expectations.: the peak of the hype is reached with the first success stories, but the first stories of failures also come along. Some companies take off with the technology, others don't.
3. Trough of Disillusionment: failed experiments and failed implementations lead to declining interest. Only companies that successfully improve their products and solutions to the liking of early adopters continue to invest in the technology. This is the tipping point of hype or mainstream.
4. Slope of Enlightenment: it is becoming increasingly clear how technology can be used profitably by companies. Second- and third-generation products are entering the market, more and more companies are starting pilots, conservative companies remain cautious.
5. Plateau of Productivity: widespread adoption is taking place. Companies know if they can do something with the technology and how to provide value to customers. The technology has become relevant.
How the Gartner Hype Cycle can help you
The Hype Cycle is not scientifically based and it is questionable whether technologies do indeed evolve through the stages defined by Gartner.
Still, Gartner's Hype Cycle can be useful for companies when making strategic decisions in which new technologies play a major role. Together with your colleagues, you can discuss what stage the technology is at and thus weigh whether this is the right time to start investing.
In addition, Gartner itself evaluates more than 2,000 new technologies each year. The technologies with the greatest potential are included in the model. The place on the curve that Gartner assigns to a technology is subjective, of course, but it gives you a guideline for which technologies to keep an eye on. Check Gartner's updates to the Hype Cycle regularly; there are bound to be technologies you are familiar with that could be of value to your business now or in the future.
Source: Gartner Hype Cycle
April Potts is responsible for Marketing & Sales at Dysel North America and combines experience in marketing, at equipment dealers and with ERP software to help dealers drive their business forward.
