Old, outmoded, falling into
disuse from a functional and
technological point of view.

The service is not competitive or not making
profit any longer.

The service logic needs significant updates.
The User Interface has to be significantly
upgraded.

Competitors grab an edge with new
technology features, so the company needs to
offer similar or better products (always looking
for the latest technologies).

The item is no longer economical to produce
(too expensive).
 Technical skills no longer available.
 The scalability has reached its limits (the
change in size of the product is not taking full
advantage of it anymore).
 The architecture is harder and harder to
maintain, too many patches.
 Asset is already depreciated .

Increased
foreign
competition
Rapidly
changing
Environmental
regulations
technologies
FACTORS
Safety
regulations
Limited
availability
of certain
necessary
materials

Process of a product becoming obsolete or
non-functional after a certain period or
amount of use in a way that is planned or
designed by the manufacturer.
Potential benefits for a
producer  the product fails
and the consumer is under
pressure to purchase again.
Its purpose is to hide the
real cost per use from the
consumer, and charge a
higher price than they
would otherwise be willing
to pay.
Backlash
for consumers  the manufacturer
invested money to make the product
obsolete faster  stimulate demand
The consumer might turn to a producer that
offers a more durable alternative.
Ways to make planned obsolescence successful:
Making the cost of repairs comparable to the
replacement cost or by refusing to provide
service or parts any longer.
 Creating new lines of products that do not
interoperate with older products can also
make an older model quickly obsolete, forcing
replacement.


Design  expected average lifetime.

Each component is made according to
those specifications.

Companies introduce new tech. That
replaces the old which doesn’t have the
same functionality as the new ones.

Associated (complementary) products also
become obsolete.

Value engineering  design a product to last
for a specific lifetime so as to reduce the cost
of making it.
There is an information asymmetry between
the producer – consumer.
CONSECUENCES:
Significant harm to society:
Continuously replacing, rather
than repairing, products
creates more waste, pollution,
uses more natural resources,
and results in more consumer
spending.
Links to sources:
http://it.toolbox.com/blogs/ea-matters/it-obsolescencecriteria-21090
http://en.wikipedia.org/wiki/Planned_obsolescence
www.youtube.com/watch?v=N2KLyYKJGk0&feature=related