Integrating product life cycle and purchasing strategies.

INTRODUCTION

Linkages, integration, synergy, competitive advantage, distinctive competence, and interdependence - if these words sound familiar, they should: They represent the strategic battle cry of management in the competitive environment of the 1990s. The literature continually reveals the need for integrating corporate, business, and functional strategies(1) to achieve a synergistic effect. To obtain synergy among the various levels of strategic planning calls for the alignment of efforts at all levels.

The literature addressing the integration issue is, for the most part, conceptual and descriptive in nature. The focus of the literature has been in the strategy formulation area and on methods for achieving implementation. Many of the proposed implementation methods target the impact of organizational structure, communication channels, or planning issues. Still others indicate how to incorporate various organizational levels in the strategic planning framework. The frameworks are sound, but lack substance in offering specific direction or guidelines. There is an absence of frameworks that are prescriptive and proactive in scope.

Models remain relatively descriptive due to the diversity inherent in each specific strategic situation. To develop a prescriptive, proactive model first requires the identification of a common strategic denominator that can be applied across a wide variety of strategic scenarios. This article presents the development of an integrated framework using the product life cycle (PLC) concept as the common denominator. The model will be referred to as the Integrated Product Life Cycle (IPLC) model.

STATEMENT OF PURPOSE

The purpose of this article is to present an integrative strategic model. The IPLC model uses the PLC as a "common strategic denominator," for connecting the various parts of the organization. The model offers one potential solution, to fill the need identified in the strategic literature for a link among the various strategic planning levels.

Originally developed in the marketing area, the PLC concept is one that readily transfers to other disciplines. Founded on the notion that products pass through a life cycle much as humans do (i.e., birth, maturity, death), the PLC provides a structure to the life of products. This structure is what allows the PLC to facilitate the coordination of strategies among functions and levels.