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Product Lifecycle Management

Product lifecycle management (PLM) is the process of managing a product as it passes through its several lifetime stages, including introduction, growth, maturity, and decline. The production of the good and its marketing are both a part of its handling. When making business decisions, from pricing and advertising to expansion or cost-cutting, the idea of a product life cycle will prove to be helpful. The goal of effective product life cycle management is to produce a product that outperforms its competitors, is highly profitable, and lasts for as long as consumer demand and technology permit. This is accomplished by bringing together the numerous companies, departments, and employees involved in the product's manufacturing to streamline their operations.

PLM systems assist businesses in overcoming the engineering difficulties and growing complexity of product development. The marketing strategy for a product is determined by the stage of its life cycle. For instance, a new product that is still in the introduction stage needs explanation, but a mature product requires differentiation. PLM has an impact on a product's most basic components as well. A product can continue to develop even after it reaches maturity, especially if it is updated or enhanced in some way. Effective product lifecycle management offers various advantages, including accelerating product launch, releasing a product of higher quality, enhancing product safety, boosting revenue prospects, and minimising errors and waste. PLM can be aided by specialised computer software that performs tasks like document management, design integration, and process management. Improved product quality and reliability, quick identification of sales opportunities and revenue contributions, a framework for product optimization, reduced waste, maximized supply chain collaboration, etc. are a few of the many benefits of PLM.

PLM developed as a manufacturing and marketing tool for businesses looking for a way to to maximize their advantage in bringing new products to the market. The idea of a product having different stages in its life and the need to manage these stages emerged as early as 1931. One of the first recorded applications of modern Product Lifecycle Management occurred with American Motors Corporation in 1985. AMC decided to put an emphasis on extending the product lifecycle of its flagship goods in order to compete more effectively against its bigger rivals while missing their greater resources, particularly Jeeps. The system for managing product data was so successful that once Chrysler acquired AMC, it was spread across the entire company, integrating everyone involved in product development. By the middle of the 1990s, Chrysler had reduced production costs to the lowest level in the auto industry by implementing PLM technology.

Typewriters and VCRs are products that have reached the decline stage whereas AI related products are at the market introduction stage of the product life cycle. Companies may determine whether their goods are meeting the needs of the target market by understanding how a product's life cycle, including its development, testing, and maintenance, works. They can then determine when they may need to change their focus or produce something new. In order to retain longevity in the market, a corporation might shift its product focus by evaluating a product in relation to market needs, competition, costs, and profitability. Being unduly dependent on a declining market is avoided by your organisation when you are aware of a product's decline. With a product life cycle strategy, you can reinvent a current product, create a new replacement product, or alter course to keep up with a shifting market.

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