From ideation to development and launch to final decline, every product exists in stages. These stages are structured in a product life cycle and this is one of the most important tools in e-commerce. The product lifecycle determines everything from marketing strategy, price, expansion into new markets and branding. While companies previously used spreadsheets and paper-based methods, the advent of product lifecycle management (PLM) software means there is now a more efficient option.
WHAT IS PRODUCT LIFECYCLE MANAGEMENT?
Product lifecycle management encompasses the stages and processes involved in managing a product from development to disposal. So it's essentially about maximizing the lifespan and value of each product. Different authorities define the stages of a product's life cycle in different ways. Typically, a product lifecycle includes conceptualization, research and development, launch, growth, maturity, and decline. Now that PLM software is available, a previously complex process is now much simpler. And good news if you do not yet have a Product Information Management system, because there are systems available that have good PLM functionality.
WHAT ARE THE BENEFITS OF PRODUCT LIFECYCLE MANAGEMENT SOFTWARE?
While different software solutions may have different functions, a central feature of PLM is that it functions as a single source of product data from conception to retirement. Product lifecycle management software centralizes the data that designers, manufacturers and all other relevant employees need, regardless of industry. This capability offers numerous benefits to end users. Here are five benefits of PLM software for businesses.
REDUCES TIME TO MARKET
One of the benefits of product lifecycle management software that is immediately apparent is a shorter time-to-market. Research shows that PLM software can shorten time-to-market by as much as 75%. Speed is especially important in business today, as competitors are constantly working hard to innovate new products for the insatiable market. With the capabilities of PLM, companies can always stay ahead of their competitors. This is because teams can work much faster with this software as all data is centralized in a universally accessible location. This enables designers, manufacturers, engineers, salespeople and marketers to share information seamlessly and collaborate effectively.
For example, designers can make last-minute changes to specifications. In the absence of centralized data, engineers and manufacturers can create the wrong products, leading to callbacks that delay launches. However, product lifecycle management software ensures that any changes or corrections are updated in real time. As a result, the development cycle remains uninterrupted and products reach the market faster.
GUARANTEES QUALITY
Every customer-oriented company understands the importance of product quality. For context, over 80% of the e-commerce returns occur because the customer received terrible products. Product lifecycle management helps to keep products of excellent quality. For example, the Bill of Materials (BOM) management feature helps manufacturers monitor the raw materials and information needed to create the final goods. Designers can also use PLM with simulation capabilities to digitally prototype and perform multiple tests prior to production. In addition, the smooth cooperation between employees improves the production process.
A product cannot be of high quality if it does not meet industry standards. Many companies struggle with compliance. The situation is complicated by regularly changing rules and regulations. Product lifecycle management software makes it easier to control production. All documentation is stored centrally while processes are streamlined. Therefore, loopholes and errors become apparent early and corrections can be made before they are released to the market.
INCREASES PRODUCTIVITY
On average, office workers are productive for only 2 hours and 53 minutes per day. If that time is spent on repetitive tasks, it becomes difficult to get the full value of each team member. That is why product lifecycle management software is important in the workplace. This software can automate repetitive tasks for all stakeholders involved in production.
Removing such time-consuming tasks allows team members to focus on valuable activities. By facilitating collaboration, PLM software ensures smoother workflows. Data can move from designers to engineers and back in real time. In addition, the product data management capabilities ensure that there are no duplicate and incomplete data in the system. Therefore, less time is spent reworking products created from polluted data. From conceptualization to retirement, everyone works faster and better.
IMPROVES THE CUSTOMER EXPERIENCE
Which customer is not happy with high-quality products? Product lifecycle management helps companies satisfy more customers by ensuring they receive great products. In addition, PLM simplifies the involvement of customers in the production process. Customer feedback often contains a lot of insight to improve products. PLM software synchronizes communication between customer service and designers. Therefore, it is easy to exchange information about customer preferences useful for product updates and upgrades. This not only means that customers enjoy better products – which leads to a better customer experience – but also ensures more customer loyalty.
INCREASES SALES AND SAVES COSTS
Ultimately, every business strives for profit. Product lifecycle management helps save costs as well as increase revenue. Cost savings can be achieved in several ways. For example, eliminating errors in the design phase reduces the need to recall defective products. It also saves costs that would have been spent building physical prototypes. Plus, fees like legal fees and fines for poor compliance will never be an issue.
Higher quality products sell faster. Hence, PLM software will help companies earn more revenue through an increase in sales. More importantly, product lifecycle management software is critical to a company's ability to scale. Plans to expand globally will be challenging to execute with a means of centralizing data into a single source of truth.
in short, product lifecycle management software is an excellent addition to any company's tech stack. The global market for this software continues to grow annually and is expected to grow in 2030 reach a value of USD 122.28 billion. Now is the best time to start using this software to optimize your company's production process.
