Our world, where the Internet of Things (IoT) is present in nearly every product we use, is rapidly becoming one where big data is king. Although many people still see IoT in a blurry and abstract way, there is no doubt that even the theoretical volume of data is incredible.
One of the natural ways many experts are suggesting that we manage and use this data is with product life cycle management (PLM) theory and software. With its ability to help organize disparate development strategies, information, and capabilities, PLM has huge potential to scale.
This would also allow all stakeholders in a product’s life cycle to see how the product is performing and how it’s being used in real time, without waiting for customers to report on it. This in turn vastly improves PLM.
In this guide, we will explain product lifecycle management (PLM) stages and steps, how it’s organized, and provide some examples. You’ll learn about concepts and other lifecycles that overlap with and feed into PLM, as well as the benefits and challenges to expect. Finally, we will look at PLM for your business, and experts provide their best tips and insight for how they see the future of PLM.
Each product’s PLC is different in the length of scope and duration, and each product is at risk of not making it out of the introduction phase. However, the company strategy should remain consistent throughout each of the phases.
The PLC, in brief, is as follows:
Stage 1: Product Development: The new product is introduced; this is when all of the research and development happens.
Stage 2: Product Growth: The product is more than an idea or a prototype. At this stage, the product is manufactured, marketed, and released. Distribution increases, demand increases, and competition also increases.
Stage 3: Product Maturity: During this stage, the product is widely available, and there are many competitors in the marketplace. You market the product to different segments, but more spending on advertising will have no impact on its demand.
Stage 4: Product Decline: The product is losing market share, or becoming obsolete. It is well past its point of highest demand, and the demand decreases.
The product life cycle affects the average selling price (ASP). The ASP is how much you generally sell your products or services for. When a product has many competitors or it is in the decline stage of its PLC, the ASP will be lower.