Product Life Cycle and Product Life Cycle Management (PLM) concepts sustain new product development (NPD). The goal of PLM is to maximize the profits obtainable from the product over its life cycle.
From the perspective of a current new product development effort, launch success has secondary impacts. These include:
- After a successful launch, development resources are released and they are available for another project
- Profits from a successful launch help fund future development and operational expenses
- A post-launch analysis is used to refine the plans for the next versions of your product
Product Life Cycle and Product Life Cycle Management Definitions
The Product Development & Management Association's NPD glossary contains the following definitions.
Product Life Cycle: The four stages that a new product is thought to go through from birth to death: introduction, growth, maturity, and decline. Controversy surrounds whether products go through this cycle in any predictable way.
Product Life Cycle Management (PLM): Changing the features and benefits of the product, elements of the marketing mix, and manufacturing operations over time to maximize the profits obtainable from the product over its life cycle. The goal of PLM is to maximize the profits obtainable from the product over its life cycle.
A portion of a product life cycle for a given product can be shown in a sales-versus-time graph.
A discussion of phases, plans, and deliverables in a phased review or Stage-Gate™ product development method is presented on the Formal Development Methodologies page.
Product Life Cycle: Ensuring Development of the Next Version of Your Product
Several of the factors that increase the probability that a future version of your product will be developed include:
- Consistently making the best decisions from a large number possible ideas during the ideation, development, and launch "phases"
- Enlisting the appropriate individuals for the core and extended teams. Ensuring that these individuals can contribute at the time when their expertise and capacity is required.
- Efficient planning and development of the required deliverables for the first version of the product. Details of the launch strategy are documented in the Launch Plan.
- Presenting an orchestrated launch of the product into the target market. Having adequate product availability, quality, and the support criteria dictated by the market maximizes the probability of a smooth launch.
- Adapting the strategies and tactics to attain early product sales and growth that is supported by a viable communications (which includes public relations and advertising) plan
- Maintaining high sales rates at maturity by having the proper sales, service, and support resources
- Rapid adjustments to market and competitive factors
- Planning for obsolescence of the version 1 product while transitioning to the version 2 product within the product portfolio's time, resources, scope, and quality constraints
- Maximizing harmony with vendors and partners during the transitions
- Earning the customer's approval when they consider their experience with your old product, your current product, and the potential purchase of your future products.
What penalty would your company incur for a three month delay in meeting the original launch target and achieving sufficient early sales? Three months of sales revenue at maturity? A leadership position in this market? Funds to develop future products?
Product Life Cycle Management's Impact on the Customer's Viewpoint
PLM decisions impact the customer. Before investing in a product, a customer may ask questions such as:
- How long will it be before this product is obsolete?
- Will it be easy to keep this product operating? For example, "Will I be able to get a replacement battery when I need it?"
- Will this company be in business in a few years?
- Should I wait to buy the next version of the product with more features and a lower price?
After buying and using the product, will the customer be inclined to recommend your product to a friend?
To maximize launch success, consider translating your PLM decisions into a form that will improve the chances a customer will purchase your current product.
How to Maximize the Profits Now and in the Future
Great companies evolve their product life cycle methodologies to maximize the potential for the market success of the product currently under development AND for subsequent development efforts. Consistent launch-to-launch success enables the execution of a PLM strategy. An inefficient product launch has the potential to harm multiple projects within your company.
OpLaunch can maximize your ability to create the right product, deliver the product on time, ensure a quick ramp-up and early sales, facilitate a smooth hand-off to other parts of your organization, prevent costly mistakes, and free your resources to pursue new opportunities.
To learn more about how to maximize the potential for launch success, visit the Launch, Launch Types, Orchestration of Launch Resources, Launch Architecture, and Optimized Launch pages.
