Which payment mechanism is typically found in the extension phase?

In the context of the Better Business Cases framework, understanding payment mechanisms during the extension phase is crucial. The extension phase often involves considerations around ongoing service delivery and changes in the operational environment. Technological obsolescence is a primary concern during this phase as it directly affects the sustainability and relevance of the services provided.

When technology becomes obsolete, it can create additional costs or the need for updated solutions to meet current demands, which impacts the overall performance of a project or program. By focusing on this aspect, organizations can address the risks associated with technology that may no longer serve their needs effectively. This means they are preparing to adapt and evolve their payment mechanisms to ensure they remain competitive and maintain operational efficiencies.

Understanding that alternatives might involve cost of change or transaction payments, these options do not specifically target the unique challenges posed by technological advancement and its impact on extending service life and utility. Instead, focusing on technological obsolescence ensures that payment models take into account the need for innovative solutions and investments in newer technologies that might be required as situations evolve.