PRODUCT LIFECYCLE MANAGEMENT
Successful Product Launches Address
All Requirements
New product launch success remains elusive cross-industry, with fewer than 60 percent on
average considered successful in high-tech alone. Yet PLM applications have been deploying
for over 10 years. Manufacturers claim time-to-market and cost benefits, so why such poor suc-
cess? The answer is a combination of narrow PLM deployments and PLM providers not grasp-
ing the attention of all stakeholders.
—Michael J. Burkett, vice president, PLM research at AMR Research
efining new product development and
launch (NPDL), success is a bit like the tale of
the three blind men touching different parts
of an elephant. Each describes a different experience based
D
ment of the product features the market most values. Adoption
of CNM remains slow, yet our research shows that the inability
to meet customer needs is often the top reason for product
launch failure. Achieving success is becoming more complex
upon their point of reference. When we ask companies to with the onslaught of environmental regulations and compa-describe their perfect product launch, the answer will invari- nies expanding into emerging markets that require lower cost
ably differ by cross-functional role in the NPDL process. products. PLM technology providers must meet the broader
Business executives want predictable shareholder growth needs of all NPDL stakeholders and manufacturers must take a
from their innovation investments. Yet product development more holistic view of PLM deployment to achieve product
may describe success as achieving technical complexity; launch success.
marketing looks for product variation; and supply chain
wants inventory turns through part and supplier re-use. This
The Outlook
dilemma of silos in NPDL is the core challenge for PLM to In 2010, we expect PLM providers addressing holistic require-impact total success.
ments for product launch success to lead the pack. Expect
Siloed implementations of PLM tend to optimize processes more capability supporting executive decision making in areas
for certain constituents like product development or supply such as value-cost trade-off analysis of product features. Social
chain, and not necessarily both. Yet marketing executives or networking will evolve to serve marketing during the less
the CFO often can’t spell PLM let alone how to derive value structured fuzzy front end of product development. Advanced
from the technology. An emerging area of PLM is customer capabilities and manufacturers taking a strategic view of PLM
needs management (CNM), which is used to ensure develop- will drive the market this year.
