Create better consumer packaged goods products more quickly with the Microsoft platform
Published: March 14, 2006
Whether you’re looking for cereal or shampoo, a new refrigerator or cleaning supplies, the choices available can be daunting. In actuality, there are more consumer packaged goods in the market than ever, leading to increased competition between manufacturers. By implementing a product lifecycle management (PLM) strategy based on effective collaboration, companies can get better products to market faster. Microsoft technologies and partners can help make that happen. Microsoft focuses on designing software solutions that help boost performance, so manufacturing companies can be both nimble and responsive to changing market pressures.
The need for product lifecycle management
Given the dazzling array of choices available every time we make a purchase, it probably won’t surprise most to learn that the failure rate for new products is between 50 and 80 percent. Between lots of product rivalry and extremely limited shelf space in stores, it can be very difficult for manufacturing companies to ensure their new product is successful. Add to this the rise of the mega store—which has major bargaining power and its own in-house brands—and it’s clear that consumer packaged goods (CPG) companies face stiff competition indeed.
Companies are responding to these challenges by focusing on two key areas. The first is obvious: developing better products. Businesses that pursue innovative offerings prove indispensable to customers and gain market share—as well as more market acceptance.
The second area is, perhaps, not quite as obvious: trying to get their products released more quickly. Simply put, if one company can release a product faster, they’re more likely to get space in stores—and they’re also more likely to be the “new” product people want to try. Moving more quickly also helps them be more responsive to the competition. For example, if a competitor improves a product, they can move quickly to develop a counter offering.
Ultimately, getting new products developed and to the public more quickly comes down to one thing: increased revenue. Still, the question of how manufacturers streamline these needs remains. The answer lies in effective product lifecycle management, or PLM.
“The business advantage of implementing a PLM strategy and focusing on new product development is that it increases revenue by staying at the forefront of the profit curve,” says Chris Colyer, global industry manager for process manufacturing at Microsoft.
Product lifecycle management and collaboration
PLM strategies differ from company to company, depending on individual goals. Still, all manufacturers have one thing in common: They need to develop great products—fast. As part of this, PLM can encompass everything from product inception to reengineering, and even include everything in between, such as design, recipe, and formulation management to packaging, marketing, and getting feedback.
Unfortunately, all this information can reside in many places. Design specifications will likely be located in different locations, just as manufacturing data will be stored in different places than consumer feedback. Therefore, to be effective, PLM relies heavily on collaboration, which helps organize information into useful knowledge that can be accessed both easily and immediately.
Furthermore, it’s not enough to connect internal systems. Truly valuable collaboration also connects all the external organizations involved in a product’s life cycle. In this way, suppliers and retailers can collaborate and gain the comprehensive information they need to make decisions. “Collaboration needs to include all the key players in the value chain,” says Colyer. “This ensures timely feedback, which accelerates new product development.”
Microsoft collaboration strategies
The Microsoft Windows operating system line of products is the standard in nearly all manufacturing companies. As a result, most companies already have the tools they need in place for effective collaboration, such as real-time communication and alerts, corporate portals, and line-of-business systems. At the same time, advances in computing power, the reach and speed of network capabilities, access to the Internet, and the low cost of establishing communications have boosted collaboration.
Because of the ready availability of collaboration tools, most manufacturing companies already have the technology they need to better manage product life cycles. And by extending the reach of Microsoft technology, companies can quickly and easily refocus their energies on getting newer and better products to market more quickly. For example, they can connect partners, vendors, and customers, using XML [Extensible Markup Language] Web services and then automate real-time communications. Or they can centralize all documents and information so they can be shared instantly.
Furthermore, Microsoft partners can help customize solutions for specific needs. Companies can get a single solution that uses the technology they already have—even if they are older systems or non-Microsoft applications. And because most users are already familiar with Microsoft applications, there is a much reduced need for training and almost no downtime.
Find a Microsoft partner that’s right for you
Regardless of whether you already have a PLM strategy in place or need help coming up with one, Microsoft Certified independent software vendor (ISV) partners have developed several solutions to address the unique challenges associated with managing the product life cycle.
