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If you strip its definition down to its most basic level the S Curve of most things is a mathematical model also known as the logistic curve which describes the growth of one variable in terms of another variable over time.
S curve business. More specifically it is a logistic curve that plots the progress of a variable by relating it to another variable over time. An S-curve helps you track a projects progress. References more information.
The second is the most critical as it signifies that a business has reached a growth ceiling. The reason why its called an S curve is not a very technical one. You can however think of it as.
The S-Curve is an effective framework that can be used to evaluate the growth and progress of companies at their different levels and to justify their successes and failures. This data can be the cost or man-hours plotted against time. The S curve refers to a chart that is used to describe visualize and predict the performance of a project or business overtime.
That data may be anything from man-hours to costs. The theory fits greatly to a foundational innovation that is currently in the news and I describe in detail in another post. Traditional strategic-planning methods are useful in stretching the revenue S curve of an existing business but they cant help companies detect how the basis for competition in a market will.
In the early days of a new technology it takes a long time to improve performance. The term S curve was developed as a result of the shape that the data takes. The S in the S-Curve definition stands for Sigmoidal which is a mathematical term related to the way the curve is derived.
The S-Curve of Business allows a company to determine where it is on a typical growth life cycle and adjust its strategies accordingly. For a quick refresher an S-curve is simply a graphical display of cumulative quantities plotted over time. In project management an s-curve is a mathematical graph or illustration that properly illustrates the appropriate cumulative data for a project or task.
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