An S-Curve Map is comprised of two S-shaped curves. The location of a product or industry on the S-curve can be used to infer the potential risks and opportunities that can arise when either entering the industry with a new product or using products already on the market. Broadly, this model assumes the products and industries follow a life cycle that consists of development, growth and eventual decline. In line with this assumption, the four phases on the S-curve are Incubate, Scale, Maturity and Discontinuity.
The S-Curve contains four major phases. An innovative product or service will go through these phases in this order:
Incubate. This phase describes products or an industry that is completely new and innovative. Organizations in this phase are in fierce competition to establish a dominant position in the market before the market becomes too established. In order to assure top-billing, organizations spend a lot of their time and effort researching and developing their products so that they are the best offered. This stage is located at the bottom of the S-shape as there is only a small amount of growth
Scale. In this phase, the product or industry has established its design or business model. In addition, the product or industry has proven to fulfill the needs of the market and is now gaining customer adoption. This phase is placed in the middle of the S-shape because it is characterized by hypergrowth, mass production and increasing market demand.
Maturity. A product or industry in this phase has reached the plateau of market acceptance. The product is well-established and widely used. Because of industry growth and the number of competitors, organizations usually spend time and money on improving their products or reducing their cost. Very incremental changes are made when it comes to innovation. As such, this stage is located in the peak of the S-curve as there is very little growth during this time.
Discontinuity. As prior products or older industries reach their peak, there is opportunity for new ideas to take shape, which is where innovation occurs. This stage is considered to be “disruptive” as opportunities arise for new product appeal, new market segments or new technologies to work with. This stage is located at the bottom of the second S (which is higher than the first S to reflect upward growth), and essentially restarts the four steps. It is advisable for all organizations to continuously be looking for succeeding S-curves as that is where the most space for innovation and development exists.




