Establishing Obsolescence

as Part of a Long Term

Product Strategy
D I NA L AT U L I PPE
S E NI O R G LO BA L PR O D U CT M A N AG E R
PHI L I PS HEA LT HCA R E
My Perspective
• Manufacture proprietary Class 2 device
• Application software and firmware
• Multiple wireless radios
• Patient consumables
• System accessories
• Sold in 190 countries

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 2

 Photo source: The Texas Medical Center Library

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 3

Session Goal
• Recognize and plan obsolescence
• Win friends, influence R&D and management

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe

10/19/2015 4
Obsolescence
…under estimated
Unauthorized use of logos for purposes of training examples only

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 5

Obsolescence is FASTER

• Use of commercial components

• Design to cost initiatives

• Technology innovations

• Changing customer expectations

• Competitive pressures

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 6

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 7
Why Companies Need Product Managers
(And What They Do All Day)

“A continual cycle of planning and execution is required to meet

these market needs in a sustainable way.”
• Source: http://www.smashingmagazine.com/2014/09/why-companies-need-full-time-product-managers/

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 8

Obsolescence is INEVITABLE

Feature No replacement (EOL)

Component
• Parts
Direct replacement
• Sub-level

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 9

Obsolescence in the ROADMAP
5-year Roadmap

Big Ideas Annual Plan

Corporate
Refresh Quarterly
Direction
I &T Paths Redirect
Customer Monthly
Incremental I &
T Feedback
Weekly
Marketing
Analysis
Course Tactical
Alignment • BOM reviews
• Supply chain focused
• Quality metrics
• Finance analysis

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 10

Obsolescence UNPLANNED
• Assurance of supply
• Lost sales revenue
• Customer dissatisfaction
• Diminished sales confidence
• High inventory carry
• Costly LTB or bridge buys
• Burdened development schedule

Establishing
8 October Obsolescence as Part
14, 2015 M&M of a Long
Product Term Product
Management Strategy | D. LaTulippe
Confidential 10/19/2015 11
Obsolescence Planning: INTEGRATED
START
 Agreement, feasibility
Integrated  Integral project plan
Assessment Preparation Start
 Scope and req. aligned
Meeting
 Risks mitigated

 Opportunity  Charter  Shared objectives

 Challenges  Team Established  Commitment

 Constraints  Draft Plan

 Roadmaps…

Establishing
6 October Obsolescence as Part
14, 2015 M&M of a Long
Product Term Product
Management Strategy | D. LaTulippe
Confidential 10/19/2015 12
Obsolescence: Marketing Aspects

Acquisition
Don't underestimate

Delivery
Compatibility, culture,

End of

End of
End of

End of
Sales
Fit, form, function clinical adoption

Life
change = full release
P r od
u
Ram ction
p Last
Shipment
EXECUTE PLAN Support Phase

Start Obsolete
Integrated Stop Stop Support
Start Quotes Sales Period
Identify Bridge vs. lifetime buy
Obsolescence
Release/Dev Impact
Version Control

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 13

EXECUTE PLAN

Customers Marketing/Sales Service Manufacturing

Contracts Upgrade strategies Training Training

Upgrade offers Regulatory cycles Spares Test fixtures
Upgrade logistics Competitive Service Documentation
Warranties positioning documentation Procurement plans
Training Promotion plans Customer service Inventory
Pricing strategies procedures
User documentation Production plans
Marketing/Sales tools
Order systems

Establishing
15 October Obsolescence as Part
14, 2015 M&M of a Long
Product Term Product
Management Strategy | D. LaTulippe
Confidential 10/19/2015 14
TAKEAWAYS
• Obsolescence is inevitable and frequent
• Define product and/or component lifecycle and manage to it
• Planning and communication is essential
• Communicate a solid detailed plan
• Customers getting savvy - they will ask!

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 15

Establishing Obsolescence as Part of a Long Term Product Strategy | D. LaTulippe 10/19/2015 16