11. Discuss why life cycle management so important for business.

Def:

Life cycle management (LCM) is an integrated framework of concepts and techniques to address
environmental, economic, technological and social aspects of products, services and
organizations. LCM, as any other management pattern, is applied on a voluntary basis and can be
adapted to the specific needs and characteristics of individual organizations.

-Hunkeler et al. (2004)

Importanace:

1. Revenue growth: LCM helps higher customer satisfaction and improved reputation for
the company, which ultimately contribute to more revenue and, consequently, profit.

2. Reduced costs: LCM provides a means for tracking the resources, and gives management
the heads up in the event that some adjustments have to be made to address these
inefficiencies and waste of resources.

3. Higher accountability: LCM establishes a system of checks and balances within the
organization, so the functions and corresponding responsibilities and accountabilities of
each department, each officer, and each employee are clearly defined. This minimizes
(and may even eliminate) the risk of losses due to human error as well as the potential
of fraud and negligence.

4. Improved and increased productivity: LCM have an impact on factors, including proper
utilization of capital and resources, human resource management, and physical working
conditions, among others ensuring that overall productivity is boosted.

5. Improved reliability of information : LCM increases the reliability of generated business

information which, in turn, will be used by management for decision-making, and other
stakeholders. Information retrieval and dissemination is also easier.

6. Simplified and assured compliance: LCM allows the organization to cover all its bases
and keep track of their duties and obligations, compliance with regulations and rules
imposed by legislation and industrial standards.

7. Tighter security measures: LCM measures are also designed to protect the resources, as
well as information, that belong to the company will be safer from loss, theft and
misuse. Proper documentation and dissemination of information ensures that they will
not fall into the wrong hands, especially those of a confidential nature.

8. LCM facilitates the improvement and management of processes that drive optimized
business results, leading to lower costs, higher revenues and high customer satisfaction,
to name a few.
 9. LCM enables businesses to align its processes with the needs of their customers.

10. LCM aids decision-making on matters such as deployment, measurement and

monitoring of the resources of the organization.

11. LCM contributes to the maintenance of a sound financial management system of the
company.

12. LCM allows the organization to keep track of its progress in meeting and achieving its
goals.

Conclusion:

Life cycle management helps the customers solve challenges, meet deadlines, and run their
businesses in a better and smarter manner by providing value.