A concept which draws an analogy between..

Yes. "that" is used to avoid repeating what has already been said. Here it replaces (and means) "span". Notice the sentence doesn't really make sense though. It's not the span of a product, but the span of the product's life. The sentence would be better as :

A concept which draws an analogy between the life-span of a human and that of a product.
Now "that" substitutes for "life-span" which is what the writer really wanted to say.

Thanks