Introduction to the Product Life Cycle

Lecture description
Think of a product or service that your organization provides. Now think about the recurring activities that manage and support that product or service. These activities are known as product and service management. Your company might not classify these activities under the product and service management umbrella, but every organization carries out this management practice.
Learn more from the full course
Product and Service Management
Know the Work that is Involved in Getting a Product Onto the Shelf and a Service Ready for Effective Delivery
01:12:50 of on-demand video • Updated January 2022
understand phases of the product life cycle to actions that should be taken at each phase
sequence the stages of the new product development process
match current best practices in new product development with their description
apply strategies used to manage existing and mature products and services with examples of the ways they are used
English
Think of a product or service
that your organization provides. Now think about the recurring
activities that manage and support that product or service. These activities are known as
product and service management. Your company might not classify
these activities under the product and service management
umbrella, but every organization carries
out this management practice. This type of management is
responsible for creating strategies for a company's
products and services. To achieve this, product and
service management is interlinked with the product and
service life cycle. The product or service strategy
needs to be tailored specifically to the requirements
of the stage in the life cycle the product or service has
reached. The product and service
management process always begins with a new product or service
idea. This process guides the product
or service to the market and provides support to customers
who purchase it. Throughout the course the term
'product' may be used in reference to both products and
services. Product and service management
is a vital process in both service and manufacturing
operations. And, remember that whether a
product is tangible, for example a laptop, or
intangible, such as phone service support for laptop
operation, it requires product and service management. Manufacturing and service
operations both rely on product and service management to
provide a complete beginning-to-end solution for
their products. Examples of manufacturing
operations include automobile manufacturers, laptop producers,
and pharmaceutical companies. The same principles apply to a
service environment and a manufacturing environment. So, regardless of the type of
environment, the main principles of
operations management will apply. More often than not, companies
are combining both manufacturing and service elements in their
product offering to remain competitive. A common example of this is in
the computer manufacturing industry, where support services
are also offered with the product. By ignoring product and service
management, your company runs the risk of
failing to maximize a potentially successful product's
potential or promoting a product with no market potential at all. Both outcomes result in losses
for your company. All effective and successful
companies use product and service management. Sometimes it's referred to in
different terms or broken down into separate management
functions. Product and service management
gives shape and focus to a company's product strategy. Product and service management
plays a crucial role in generating revenue for an
organization. When handled correctly, product
and service management can contribute to selling more
current and new products to both current and new customers. All companies that produce goods
and services face the same customer requirements. Customers want a better, more
cost-effective product in a faster manner. The problem facing product and
service managers is how to achieve this. To successfully address this
requirement, there needs to be a close link
between a company's marketing and operations functions. When operations closely aligns
with marketing, the resulting synergy can
positively affect sales growth in existing markets. This organizational impetus may
also help explore the viability of expanding into new markets. The alliance between marketing
and operations has been traditionally strong in service
organizations. By tying customer requirements
in with these two functions, greater possibilities for
after-sales and promotions are created. Product strategies vary
depending on the product life cycle, and it's important for
operations managers to understand this. They need to be flexible enough
to react accordingly if there's a change in alignment with
current or future marketing requirements. And an operations manager who
understands the product life cycle, is able to participate in
the strategic redesign of existing products in cooperation
with marketing. Product and service managers are
responsible for identifying the best product strategy to
maximize a product's potential. To achieve this, the manager
must ensure that the strategy is in line with certain aspects of
the organization. The product strategy is aligned
with the organization's vision, corporate strategy, and
divisional strategy, which provide a focus for
developing and leveraging core competencies. The product strategy is also
aligned with marketing tactics and customer satisfaction,
resulting in a focus on customer-specific needs. So, why is it important to
understand how product strategies can vary depending on
the product life cycle? 1 - The operations section of an
organization can be responsive and flexible when a product or
process change occurs in the marketing section. 2 - Operations managers can
contribute to the redesign of an existing product in cooperation
with their colleagues in marketing. 3 - Operations and marketing
managers are able to separately carry out forward planning based
on the product life cycle and can concentrate on improving
their own functions. 4 - The operations and marketing
sections can predict where their respective roles will overlap so
they're able to schedule joint communication sessions at select
stages instead of having to collaborate at each stage. Please pause the video to
reflect on the correct answer. When you are ready we can
compare together. Option 1: That option is
correct. Operations and marketing need to
be closely aligned. If marketing detects a change in
consumer needs, this must also be made known to
the operations section, so it can react promptly and
effectively. Option 2: That option is
correct. It's vital that operations and
marketing collaborate. The product may need to be
enhanced at different stages with a function the consumer
wants. The need for an alteration to
the product will be identified by marketing, and then
operations will carry out the enhancement. Option 3: That option is
incorrect. For a product strategy to be
successful, it needs both operations and
marketing working in an aligned manner. Option 4: That option is
incorrect. It is important that operations
and marketing work closely together and communicate
effectively during all stages of the product life cycle. So, this is the overview of the
product life cycle. In the next lecture, you re
going to learn more details and focus on actions for product
life cycle stages.