Waking up with a brilliant idea for a product inspires you to hit the ground running immediately. Whether it is a groundbreaking software that could change how people communicate or a new type of sustainable packaging that could revolutionise the industry, you are ready to bring it to life.
However, introducing a product is more than just having a great concept and creating prototypes. It must go through product lifecycle management (PLM), a process that comprises the item’s conception to its eventual retirement.
For the uninitiated, the main question may be: what is product life cycle management (PLM) and how can blockchain help?
As technology changes various industries, PLM allows enterprises to make informed decisions in R&D, product development and manufacturing, supply chain management, sales and marketing, etc. Pair it up with blockchain, a tool that can provide multiple advantages across processes, the possibilities are endless.
Blockchain in PLM is more than a buzzword. It’s in your best interest to learn about the advantages of blockchain in product development that can benefit your organisation, as shown in the infographic below.
What is product lifecycle management and development?
Product lifecycle management and development is a business strategy for overseeing a product’s entire lifecycle, from inception to retirement.
Much like a roadmap, PLM helps all involved with a particular good or item seamlessly coordinate throughout the various stages of its development. Regardless of the industry, PLM promotes efficiency by streamlining processes and reducing time-to-market.
The practice saves costs by minimising errors and optimising workflows thanks to consistent quality checks throughout product life cycle development. PLM also empowers businesses to innovate, meet evolving market demands and maintain competitiveness.
What are the advantages of using blockchain in product lifecycle management and development?
Integrating blockchain into your business can benefit product development processes, streamline operations and put you ahead of competition. In particular, the following areas can maximise blockchain technology’s value for enterprises.
• Production
Blockchain can automate agreements through smart contracts, effectively reducing delays and optimising processes. Decentralisation, a core feature of blockchain, also enables micropayments.
For instance, your company can set up instant fund transfers to suppliers once they deliver the raw materials you need. Once everyone fulfils their obligations, the transaction is irreversible and completely traceable. This system encourages cooperation among all parties involved in production and streamlines manufacturing operations without requiring third parties to validate every exchange.
Blockchain’s real-time tracking capability lets you see all market activities like pricing and make timely decisions. If any changes happen, you can respond and adapt promptly.
• Distribution and logistics
Blockchain provides end-to-end visibility in supply chains, offering you precise tracking of shipments. It not only reduces delays but serves as a deterrent against fraud.
Tracing how goods are distributed lets you optimise routes, reduce carbon emissions and contribute to sustainable logistics practices. Customers who see these environmental efforts are 66% more likely to be loyal, which can increase revenue.
Ethical sourcing also becomes more accessible with blockchain. Both you and your customers can have more control over product origin, as reviewing the records lets you identify suppliers or manufacturers who promote ethical practices and support socially responsible initiatives.
• Product usage
Another advantage of the openness of blockchain is that customers can verify your product’s authenticity, effectively combating counterfeiting and guaranteeing they receive genuine and safe-to-use items.
Once the product is on the market, customers can access its iterations, upgrades, and recalls on the blockchain. Then, they know they have the latest and safest versions. Blockchain in PLM also makes it easy to include usage guidelines and other helpful tips, enhancing the user experience.
Making all this information available to customers makes your company more credible while fostering trust and confidence.
• Recycling and the creation of a circular economy
The end-of-life product tracking on blockchain invites companies to practise efficient recycling and disposal of items. When you know the entire process and where raw materials come from, you can plan to reduce waste.
For one, tokenised rewards incentivise consumers to participate actively in recycling programs. This engaging approach contributes to establishing a circular economy, which reduces the environmental impact of discarded products.
• Enhanced supply chain transparency
Blockchain fosters transparency by creating an immutable and visible ledger of every activity in the supply chain. The records provide stakeholders with real-time insights into the movement of items or goods, enabling them to understand and monitor the entire production.
• Raw material authentication
The unalterable nature of data on the blockchain eases the authentication of raw materials by recording their origin and quality.
It also ensures the integrity of the production process, offering a tamper-proof record of every material’s journey through the supply chain. Because every change is transparent, you can see if another party introduces anything, discouraging counterfeiting or other fraudulent activities.
• Design change tracking
Blockchain’s inclusion into an enterprise’s infrastructure allows for the traceability of design changes throughout the product life cycle. With blockchain, you get a comprehensive and unalterable history that other departments can use. As a result, there are fewer errors due to miscommunication. Plus, teams can seamlessly perform hand-offs, leading to effective collaboration.
3 challenges of blockchain implementation in product lifecycle management and development
While blockchain provides many benefits and resources for enterprises, there are also challenges you may encounter when trying to implement the technology.
1. Match and integration of technology
Existing systems may experience difficulties incorporating blockchain. There will likely be compatibility issues due to the fundamental differences in the architecture and operation of traditional systems compared to the latter’s decentralised nature.
Strategic planning and a careful assessment of your existing systems are critical before adopting blockchain. Trying to hasten implementation may cause disruptions in workflow and stall operations.
2. Compliance with and regulation of industry standards
Business standards and practices may vary significantly depending on the location or industry. As a result, compliance can be challenging. It would entail examining every law and regulatory rule to ensure blockchain integration does not violate anything.
There is also concern about blockchain’s decentralised nature. Since ledgers have no physical location, there is a matter of which law or jurisdiction governs issues that may arise from transactions.
The transparency of blockchain records may also be a concern in specific industries with stricter rules regarding personal information and non-disclosure agreements, such as healthcare and financial services.
Learn more:
- How public and private blockchain compete on data privacy and throughput
- Private use of a public blockchain
- The BSV blockchain’s inherent privacy, accountability, security & scalability
3. Adoption and collaboration
The success of blockchain for product development in an enterprise hinges on everyone’s collaboration and adoption of the technology. However, some may resist change due to unfamiliarity, fear of disruption or concerns about the learning curve.
Blockchain can be complex for beginners and may lead to scepticism about its benefits. If your company is global, there may also be differences in implementations across offices, leading to confusion on how teams must work with the changes.
To mitigate these risks, everyone needs clear insights on how blockchain works, what its advantages are and what transformative impact it can have on PLM. Training programs, workshops and informational campaigns can bridge the knowledge gap.
Elevate and innovate PLM with blockchain
Blockchain technology can be a transformative force for product lifecycle management and development. By enhancing security and productivity through transparency and optimisation, you can elevate your processes to deliver quality products and satisfy customers.
BSV blockchain is a technology that can improve your enterprise’s product lifecycle management and development to scale your business. Dive deeper into the possibilities by downloading our eBook on how the BSV Blockchain restores the promise of an enterprise blockchain.
