Innovation in business has advanced to create better ways to handle operations within companies. Several systems have been developed to ease different departments in companies, including customer relationship and human resource management.
In the manufacturing industry, the very first ultra-modern Product Lifecycle Management system was developed in American Motors Corporation in 1985. Product Lifecycle Management (PLM) entails dealing with processes and procedures that a product goes through right from production to marketing. This enhances good decision making for companies, especially in terms of production costs, product pricing and marketing strategies.
A product goes through various stages which the Product Lifecycle Management deals with. These stages include introduction, growth, maturity, and decline.
Before anything is set, a product must be well researched. This involves experts in the industry getting as much information about the product through various sources such as previous data and customer feedback. Once all is set, the new product can then be developed by designers. Life Cycle Management enhances rapid design, which fosters faster production. Ultimately, the new product can be launched into the market and promoted with ease.
Growth and Maturity
Getting a product into the market requires a lot of funds. The life cycle management system aids in cutting costs in production. With rapid processes, companies can push their products faster into the market and make much more revenue than their competitors. With market trends being dynamic, a company also needs to change tact with time as the product matures. Lifecycle management also enables companies to adapt well to such changes by enhancing decision making through mitigating measures in manufacturing processes.
At the end of every product life cycle, it encounters a decline. This is either due to inflation, competing products or change in consumer needs. The lifecycle management system monitors and evaluates the product. With this information, companies can make informed decisions on improving current products or developing new ones.