Technology obsolescence (TO) impact on future costs

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Technology obsolescence (TO) impact on future costs

Hitt, E.F. / Schmidt, J.

Obsolete technology impacts government and business in many ways. It impacts their cost of doing business and hence profits, as well as their day-to-day operations. Management needs to be aware of the impact of technology obsolescence on all aspects of their business, and factor it into their decision processes. Many of the avionics systems installed use obsolete technology, but not all parts of an avionics subsystem, or line replaceable units have high total ownership cost. This paper addresses a method of assessing technology obsolescence, and the tools to determine the impact of technology obsolescence and new technology on business management. Many complex systems, particularly major aircraft and military weapon systems, often have life spans far in excess of several life spans of many of the supporting components. As consumer use of technology accelerates, new products are introduced at ever increasing frequencies. Understanding and dealing with these market forces will separate the very successful program managers from those who constantly work only today's problems.