Product Lifecycle Profitability
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Category:  
Strategic

Measures the profitability of a product throughout its entire lifecycle, from development to end-of-life.

What it Measures ?

Measures total profit across a product’s lifecycle.

Relevant StakeHolders 

Product Manager, Finance Controller

In-depth Use Case / Real-world Example

A company manufacturing smartphones calculates Product Lifecycle Profitability by analyzing the costs associated with product development, production, marketing, and post-sale service against the revenue generated throughout the product’s lifecycle. If the smartphone generates ₹100 crore in revenue over its lifecycle with ₹80 crore in costs, the product is considered highly profitable.

KPI Definition

Business Value

Movement Direction

Sample Formula

Revenue - Total Product Lifecycle Costs

Should Aim For
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