You may call it New Product Development; New Product Introduction; Product Management; or Product Management Lifecycle. I see it as the logical extension of product lifecycle management [PLM].
The lifecycle of a product usually begins with a 'change order'. Even a brand new product will be released with a change order [or change notice or by some other name]. Still, it starts in engineering and moves through manufacturing and not much beyond.
But, what does the real lifecycle of a product look like?
It starts with the customer. Sales interfaces with the customer - they uncover something the customer wants. They take this to marketing so that product requirements can be gathered. Marketing will decide if it makes business sense to manufacture this product [market size, revenue potential, profit potential, etc.]. They will meet with engineering to arrive at a compromise between what they can sell and what they can manufacture. The compromise is called an engineering requirements document. While engineering is developing the product, marketing is developing their marketing/sales plans. Manufacturing is coming up with how to manufacture the widget. Manufacturing will develop work instructions. Support will come up with support plans. It is like an orchestra - different instruments [departments] playing different parts at different times - all without an orchestra conductor.
If product lifecycle management is a key process, doesn't it make sense that the lifecycle of a product [product management lifecycle] is a key process?
My Thoughts...
I have been touting managing this process for years. It is amazing to me how few companies have addressed this process.
I have found a company that understands the importance of this process and is going to address it. I tip my hat to them.
Their expectations [and yours too]:
Lower costs - Remove non-value add activities from the process. With total visibility into the process, you can head off problems.
Increased revenues - If you can shorten the time it takes to go from idea to product, you can get your product to market sooner - beating the competition. It used to take Detroit 5 years to turn around a new car while Toyota took half that time.
Increased profits - Lower costs plus Increased revenues will result in increased profits.
Your Thoughts...
Has your company addressed a process to manage product development?
Process Management - Keeping it Real!
RScottCleveland@gmail.com
Scott - good insights that I agree and disagree with. First, thanks for waving the banner that Product Management has and needs to be the catalyst in the product lifecycle and this process lives throughout a products cycle, but has to be engaged when markets are assessed and sensed.
Executive management has to realize that products must be defined on real market evidence and there is nothing more important than having a "messenger of the market" who consistently assesses, researches and connects with markets and customers. This as you know is the roles of Product Management. In its truest form product management "discovers" (not uncovers) what customers want. While Sales may be a line of communication into the market, it is not a replacement for product management.
Thanks again for raising this critical issue.
We had BPM systems in a few places where I worked. It is not something that a startup is going to do. Absent BPR, any startup I'm in will think in terms of the technology adoption lifecycle, which spawns one or more product lifecycles that move through market phases that involve very different markets, and very different customers.
Even as we mature, I won't BPM. There has to be something more pressing that creating a few more database records, or becoming a surrogate for the real product. Make that case. Don't make the case that it hooks to my EAP or CRM system. Startups use IT the least. They hardly eat their own dog food.
Scott, very interesting insight. I do think that BPM will need a significant business insight to move successfully into organization. Some more thoughts about it in my blog - http://plmtwine.com/2009/09/02/plm-vs-erp-demand-for-business-process/.
Best, Oleg