(engineering) Decreasing value of functional and physical assets or value of a product or facility from technological changes rather than deterioration.
| Sci-Tech Dictionary: obsolescence |
(engineering) Decreasing value of functional and physical assets or value of a product or facility from technological changes rather than deterioration.
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| Insurance Dictionary: Obsolescence |
Decrease in value of property as the result of technological advancement and/or changing social mores. This factor is used to measure the amount of depreciation in determining the Actual Cash Value of damaged or destroyed property protected by Property Insurance Coverage.
| Real Estate Dictionary: Obsolescence |
A loss in value due to reduced desirability and usefulness of a structure because its design and construction have become obsolete; loss due to a structure's becoming old-fashioned, not in keeping with modern needs, with consequent loss of income. See Economic Obsolescence, Functional Obsolescence.
Example: An old house may suffer from the following examples of obsolescence:
• rooms of improper size
• features no longer useful, such as a coal chute with a gas-fired furnace
• out-of-date plumbing, heating, and electrical fixtures and systems
• inadequate insulation
• unsuitable architectural style
• construction materials that require excessive Maintenance
• undesirable location
| Economics Dictionary: obsolescence |
A decline in the value of equipment or of a product brought about by an introduction of new technology or by changes in demand. (See planned obsolescence.)
| Wikipedia: Obsolescence |
| Look up obsolescence or obsolete in Wiktionary, the free dictionary. |
Obsolescence is the state of being which occurs when a person, object, or service is no longer wanted even though it may still be in good working order. Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects.
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Technical obsolescence may occur when a new product or technology supersedes the old, and it becomes preferred to utilize the new technology in place of the old. Historical examples of superseding technologies causing obsolescence include CD-ROM over floppy disk which allowed for greater storage capacity and speed, DVD over VHS which allowed for greater quality and multimedia functions, or the telephone over the telegraph which allowed for audio transmission instead of coded electrical signals. On a smaller scale, particular products may become obsolete due to replacement by a newer version of the product. Many products in the computer industry become obsolete in this manner; for example, Central processing units frequently become obsolete in favor of newer, faster units.
Some products are rendered technologically obsolete due to changes in complimentary products which results in the function of the first product being made unnecessary. For example, buggy whips became obsolete when people started to travel in cars rather than in horse-drawn buggies.
Particular items may become functionally obsolete when they do not function in the manner that they did when they were created. This may be due to natural wear, or due to some intervening act. For example, if a new mobile phone technology is adopted, and there is no longer a provider who provides service based on the old technology, any mobile phone using that technology would be rendered obsolete due to the inability to access service.
Products which naturally wear out or break down may become obsolete if replacement parts are no longer available, or when the cost of repairs or replacement parts is higher than the cost of a new item.
Sometimes marketers deliberately introduce obsolescence into their product strategy, with the objective of generating long-term sales volume by reducing the time between repeat purchases. One example might be producing an appliance which is deliberately designed to wear out within five years of its purchase, pushing consumers to replace it within five years.
When a product is no longer desirable because it has gone out of the popular fashion, its style is obsolete. One example is "acid-wash" jeans; although this article of clothing may still be perfectly functional, it is no longer desirable because style trends have moved away from the acid-wash look.
Because of the "fashion cycle", stylistically obsolete products may eventually regain popularity and cease to be obsolete. A current example is flared-leg jeans, which were popular in the 1970s, became stylistically obsolete in the 1980s and early 1990s, and returned to popularity in the early 21st century.
Postponement obsolescence refers to a situation where technological improvements are not introduced to a product, even though they could be. One possible example is when an auto manufacturer develops a new feature for its line of cars, but chooses not to implement that feature in the production of the least expensive car in its product line.
Obsolescence management refers to the activities that are undertaken to mitigate the effects of obsolescence. Activities can include last-time buys, life-time buys and obsolescence monitoring.
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| Environmental Obsolescence | |
| Locational Obsolescence | |
| Functional Depreciation |
| What are examples of planned obsolescence? Read answer... | |
| What is obsolescence in property construction? Read answer... | |
| What causes environmental obsolescence? Read answer... |
| What is excess and obsolescence? | |
| What is perceived obsolescence? | |
| A product that went into obsolescence? |
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