By David Keller
Developing an effective product lifecycle management (LCM) process is no longer just a ‘nice to have’ for manufacturers in the medical and diagnostics equipment industry, but an essential ‘must have’ to ensure long-term business growth. From managing the total cost of ownership (TCO) to accomplishing product updates without disruptions in regulatory compliance, a holistic view of product LCM during new product development can help you to increase operational efficiency and maintain customer loyalty and trust.
Effective product LCM starts with designing a new piece of medical or diagnostic equipment for a long and profitable lifespan.
Effective product LCM starts with designing a new piece of medical or diagnostic equipment for a long and profitable lifespan. Put simply, this is a key factor in determining which products have long-term success and which fail to achieve their potential. Whether your product development process involves an original equipment manufacturer (OEM) or a select few component suppliers, optimizing your product longevity has an impact on your bottom line.
What is product LCM?
Product LCM is the process of planning and overseeing a product's entire lifecycle, from its design and development through to production, growth, maintenance and end-of-life disposal or recycling. It encompasses all suppliers, departments, employees and processes involved with product development and operation, using real-time data to streamline activities, optimize the supply chain and support confident stakeholder decision making. Key benefits of a comprehensive LCM strategy can include faster development times, efficient manufacturing scale-up and more targeted marketing strategies, while simultaneously buying in to circular economies and sustainability efforts. Ultimately, the goal of LCM is to deliver a highly profitable product that outperforms its competitors and lasts as long as market desire and technology lifespan permit.1-4
Reinventing product LCM
Today’s ever-evolving and highly competitive business environment means that companies need to continually develop innovative products at an increasingly rapid rate. As a consequence, many manufacturers are collaborating with several different partners in product planning and development, including OEM suppliers. Many companies are also seeking help in generating innovative designs, building more efficient supply chains and even outsourcing manufacturing. There is also much more emphasis placed on developing products that can be customized for different markets and target audiences, allowing them to be more easily integrated with existing systems.
The more collaboration and outsourcing a company engages in, the tighter control it requires of its production runs, while also incorporating product-use data and customer feedback into subsequent development processes. A key aspect of product LCM is therefore ensuring timely and reliable information flow between stakeholders. This ensures that all parties have the correct information to deliver a successful product that achieves a long lifespan, and meets its evolution goals.
This approach is growing in popularity as a standard operating practice, especially as companies look for ways to manage increasing regulatory compliance challenges. In fact, spending on product LCM is projected to grow from USD 48.14 billion to USD 78.33 billion between 2024 and 2032, with a compound annual growth rate (CAGR) of 6.27 percent.5
What does LCM achieve?
The overarching goal of product LCM is to expand the profitable period of your product, while also maintaining customer loyalty as you introduce new products or retire old ones. Here are some key reasons to use LCM.
Risk mitigation and error reduction
You want to make sure that your product remains compliant, safe and dependable, and continues to offer reproducible results that stay well within regulatory standards; you don’t want any FDA scares as you roll out new products, functions or versions. LCM helps you ensure updates or changes maintain all compliance and safety standards, so your customers can be confident in your products.
Keep the product continuously attractive
LCM means better planning for future regulatory and technology changes, product enhancements, geographic expansions, customer needs and service requirements. Keeping your suppliers and OEM partners connected helps you to manage market updates more effectively, by understanding the broader industry implications.
Design products that are easier to service
Collaborating on product design and development can help keep your product’s total cost of ownership under control. By incorporating the right components, you’ll be able to deliver a reliable product with fewer planned and unplanned service interventions, reducing your service costs, enhancing your brand image and improving customer satisfaction.
Adhere to regulatory requirements
Regulatory bodies are increasingly looking at the entire product lifecycle, not just to the point of market launch. The European In Vitro Diagnostic Medical Devices Regulation (IVDR), for example, presents explicit and stringent requirements that extend across the entire product lifecycle, including post-market activities around monitoring and surveillance, corrective action and reporting.
What should you consider when incorporating LCM?
Making LCM work for your company may mean adopting new processes and partnerships that allow for a more collaborative approach and open information exchange. Some guidelines to consider include:
De-silo information
Strive to give all business groups access to information such as customer complaints, product failures, points of integration or logistical hurdles.
Incorporate data analysis
Gather and evaluate data on product usage, supply chain availability, production hiccups and technology changes.
Collaborate
Work with global partners early in the product development process to gain insights that will improve product service and lifespan.
Map out a future strategy
Plan for product updates and end-of-life at an early stage to ensure smooth transitions. This includes planning for continued compliance, obsolescence management, product evolution and the next generation of the product.
Use expert services
Adopt data-based tools and work with experts versed in LCM to improve your results.
Incorporate regulatory compliance
Factor in ongoing regulatory compliance needs and ensure new and updated components meet these standards.
Consider end-user needs
As you roll out updates or new products, be sure to account for disruptions in processes, accuracy of tests, ease of use, and offer services and information that help to maintain customer trust.
Digital tools
Incorporate LCM software for more efficient product development and faster time-to-market. Digital solutions make it easier to track and share data along the entire product value chain, providing real-time insights into product performance, customer feedback and market trends.
Incorporating LCM into your value chain for medical devices and diagnostic instruments can enhance the quality and lifespan of your products, providing a lower TCO and a greater ROI. Ultimately, this builds customer satisfaction and helps to maximize profitability, ensuring goods stay technologically current, updated and compliant while minimizing disruption to customers during product upgrades or phase-outs.
Improve your product LCM and stay ahead of the curve
Download our practical guide to LCM for IVD products. It covers key steps to consider in each stage of the lifecycle: design and development, launch, growth, maintenance and end-of-life.
References
1. CIMdata. All About PLM. CIMdata.
2. Kurkin O, Januska M. Product Lifecycle in Digital Factory. In: Knowledge Management and Innovation: A Business Competitive Edge Perspective. International Business Information Management Association (IBIMA); 2010:1881-1886.
3. SAP. What is product lifecycle management (PLM)? SAP.
4. Segal T. Product Lifecycle Management (PLM): Definition, Benefits, History. Investopedia.
5. Gupta A. Product Life Cycle Management Market Research Report: Information By Component (Application/Software and Services), by Deployment Mode (On-Premise and On-Cloud), by End-User (Automotive and Transportation, Industrial Machinery, Retail, and Energy), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032. (2024).
About the author
David Keller
David Keller is Head of Customer Product Management at Tecan and leads an international team of professionals in managing daily interactions with OEM partners. Together with his team, he provides comprehensive management support across the entire product lifecycle, ensuring compliance and the highest levels of customer satisfaction. David has over 20 years of experience in the medical technology sector, and his expertise spans commercial operations, customer relations, service management and product management. He rejoined Tecan in 2013, marking his second tenure with the company.