It seems that the major difference between product management practices in the software business and the consumer electronics business lies in the perception of how, or even whether, a life cycle of a product can be managed after its release.
In software, alpha and beta testing by actual users are a common practice, that results in multiple releases based on actual user experiences learned or observed during these processes. In other words the product is actively managed throughout its life-cycle.
In contrast CE product management practices do not appear to be very pro-active after product launch, and are limited primarily to promotional functions. If a product is expected to have an 18-24 month life, focus groups are organized 12-14 months after product launch, to learn how to design and market its next generation. These exercises are very expensive in that they require a lot of effort to organize, and a lot of special skills to produce truly valuable results, hence they are often contracted to specialists.
There are multiple channels available for finding this data, and multiple technology offerings to process it into a meaningful source of business intelligence, however I am not aware of many processes that use this intelligence to pro-actively manage launched CE products profitability.
The example above is a very positive one, but keep in mind it only addresses the issue of the “next” product design – not how to improve profitability of the “current” product. However I suggest that it can be done and I would love to learn about people and companies who are already do, before starting to speculate how I would approach doing it myself.
As usual, your comments, opinions and experiences are greatly appreciated.
I think in some ways, since CE devices are so dependent upon software now, the product life-cycle can be managed after release, with firmware/software updates. Not all devices can easily get the update, but since more products are connected to the Internet (or have the capability to connect to a computer), there is more opportunity to provide product support remotely.
However, for products that have problems that can’t be managed remotely, I think it comes down to more of a customer support/marketing issue. A company can try to openly address reviews through social media sites, and help their brand image at the very least by offering workarounds and advice for those with the product.
Rick,
You are exactly right – a lot of CE products have substantial software/firmware component that can be looked at as terrific opportunity to co-create and test new features/functions with the existing customers.
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