The cost of managing products is a key performance indicator when determine the efficiency of your Product Management Lifecycle (PLM)
Some important things to know:
Service providers spend an average of 10.4% of their revenues on managing their products.
- That may be the average, but the range is considerable. 16% of organizations spend less than 5% of revenues while another 16% spend up to 20% of their revenues.
- 26% of SPs reported they either didn’t know what they spent on PLM or didn’t collect the information.
- The actual number of SPs who can’t give an accurate estimation is likely higher, because frequently SPs fail to factor in all the costs and, in all fairness, this can be difficult to do.
Underestimating the cost of managing products undermines the case for improving the process through better automation. Therefore, understanding how CSPs are performing against global and regional norms and best practice is key for PLM optimization.
To learn more about PLM, download our whitepaper.