How To Effectively Use the Product Lifecycle Model

How To Effectively Use the Product Lifecycle Model
  • Opening Intro -

    The product lifecycle model (PLM) is a method of tracing a product’s trajectory from idea to market saturation to decline.

    Anyone who’s creating a product or service can use this model.

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The key benefit of the PLM is its ability to plan how your product will perform both in the boardroom and with consumers, making it an integral part of any business’s production process. It can adjust in real time according to feedback from the consumers and the market.

So how do you effectively use the product lifecycle model? Read on to find out.

The Process

Traditionally, the PLM is divided into five different phases:

  • Concept and design: When the idea for the product is first conceived
  • The development phase: The design process for the product, including prototyping and piloting
  • Production and launch: Feedback from the development phase’s pilot process adjust the product design and marketing plan.
  • Service and support: After you launch the project, there should be a period during which you provide support for the consumer. You manage product marketing withdrawals to determine what to do with them next.

An Example of a Product Lifecycle Model

As an example, let’s say that you just started a construction company and are preparing to sell lumber to other companies. How will your particular company meet market needs?

How are other companies selling their lumber? What are some common trends in the lumber construction industry? Ask yourself all these questions before you set a business plan.

The concept and design phase would involve looking at your top competitors, best practices in the business, and conceptual ideas during launch. The development stage would encompass procuring materials—in this case, wood for lumber—and altering them to fit your needs.

At this point, you would move to the production and launch stage to pilot your product and make adjustments according to the feedback provided. Finally, you would focus on service and support.

The lumber market will likely never bust, but new technologies increase every day. If there’s a demand for plastic composite lumber and very little for traditional wood, it might be wise to discontinue the conventional lumber product line in favor of the new one. And how will your company manage “legacy” products?

This is another question you need to answer.

The Benefits

By using the project lifecycle model, you gain many benefits, including:

  • A framework for product optimization
  • Quicker prototyping
  • Improved product forecasting
  • Ability to make quick adjustments based on sales opportunities and contributions to revenue
  • The ability to forecast to reduce material costs
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In short, this is how to effectively use the product lifecycle model. Using the PLM will save you valuable time and allow you to prepare your products for market in no time. You’ll find that you have an easier time managing a product from conception to maturation and beyond.

You can always find new strategies to experimented with, but the PLM is a classic that will keep your business on track.

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CFOne Business Management Reference:

GUIDE: step-by-step exit planning

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