idw benefits to dynamic product life cycle; dirk heartman, epicor
DESCRIPTION
We will examine how the Internet, eStore and global supply chains are changing the product lifecycles for manufacturers and distributors. Come learn about the IDW benefits and how it can help manufacturers and distributors to better manage product mix, product content and product life cycle. Dirk Heartman has been involved with IDW since its inception and works with IDEA on strategic initiatives.TRANSCRIPT
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IDW Benefits to Dynamic Product Life Cycle
Dirk Heartman Tom Brown
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Product Life Cycle (PLC) Overview 1. What? PLC Stages 2. Why? Sales & profit impact 3. Trends & Examples 4. How? IDW
• Instant updates • Accelerate introducOons • Extend peaks • Pull products via eStores • IDW fields: Status code, etc. • How and why?
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• Concepts apply to electrical industry • Examples used from familiar non-‐electrical products • Reason 1—Protect sensiOve informaOon • Reason 2– Everyone can understand it
Disclaimer
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PLC Stages
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PLC: Why? Sales and profits impact
• CompeOtors • Taller, faster peaks • Shorter unprofitable declines • Replacement products • Right product at right Ome
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Extending Peak
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• More PLC opOons • From mass producOon to flexible mfr. • Growing eStore sales & a[ributes • eCommerce product updates criOcal!
Trends
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Apple PLC-‐Taller Peak & Faster Sony Walkman
• 10 year to peak • Never reached 30M units/year
Apple Products • iPod—5 years to 30M units/year • iPhone-‐4 years to 30M units/year • iPad—2 years to 30M units/year
Palm—Smart Phone launched too late
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Apple PLC-‐Closer Look PLC Strategy • New release every year • Price strategy—older is less $ • Main channel—iPhone 4 to 6 • Secondary markets (eBay)-‐ all iPhones • Internet can extend PLCs 1: June 29, 2007, 3G: July 11, 2008 3GS: June 19, 2009 4: June 24, 2010 4S: October 14, 2011 5: September 21, 2012 5C,5S: September 20, 2013 6 Plus: September 19, 2014
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eStore Trends
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Product Life Cycle (PLC) & IDW 1. What? PLC Stages 2. Why? Sales & profit impact 3. Trends & Examples 4. How? IDW
• Instant updates • Accelerate introducOons • Extend peaks • Pull products via eStores • IDW fields: Status code, etc. • How and why?
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• Main product vs part • Stock vs non-‐stock • Pricing strategy • Part a[ribute
PLC &IDW ConsideraOons
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IDW Status Codes & Usages A AcOve Item C Change of UPC or EAN D Delete J Repair/Replacement Part K Non-‐price Maintained Item O Obsolete Item P Planned Obsolescence R Replacement Item for changed UPC or EAN T Item Unavailable U Unlisted W Withdrawn from IDW
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IDW Status Codes & Main Products Status Codes on main products
A AcOve Item P Planned Obsolescence O Obsolete Item D Delete
Example: main products vs repair products • Ford Probe-‐disconOnued 1997 (D) • PLM on every screw, sparkplug, etc.? • PLC on main products (Car, engine, etc.)
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IDW Status Codes & Repair Parts Status Codes (non-‐main products)
J Repair/Replacement Part K Non-‐price Maintained Item T Item Unavailable
Example • Old sparkplug xxx & new sparkplug yyy
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Stock Indicator • N Non-‐stock • Q Quick Ship • S Shelf Stock
Stock vs Non-‐Stock
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• Increase price on old item (shorten decline stage)
• Decrease price on old item (Extend PLC)
• Price Group Codes
PLC &Pricing
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Product Life Cycle (PLC) Summary 1. What? PLC Stages 2. Why? Sales & profit impact 3. Trends & Examples 4. How? IDW
• Instant updates • Accelerate introducOons • Extend peaks • Pull products via eStores • IDW fields: Status code, etc. • How and why?