PLM 2012 Part II – Can Vendors Pull It Off?

Last time, based largely on vendors’ marketing language,  PLM was defined as a comprehensive system and process that integrates, interfaces, and interacts with every other IT system within an organization, including CAD, ERP, CRM, etc.  While this occurs at a peer level, the PLM oversees and, to a certain extent, controls all data exchanges.

I think, however, there is a better definition and model of what PLM actually should be. Unlike many vendors’ definitions,  PLM is not a peer system to other systems, such as ERP, SCM, and CRM. Rather, PLM is the intellectual property backbone of an enterprise. While the other subsystems deliver indirect cost-reducing improvements, none of them have any measurable impact on delivering top-line, revenue enhancing results and only a minor impact on lowering direct costs. The only way to positively impact top-line revenues is to develop and build innovative, higher-quality products, and PLM is the only system of the four that addresses these issues.

In this context, PLM transforms ideas to profits, capturing customer experiences, and generating ideas for new products. Along the way, the intellectual property undergoes several transformations (such as ideas to concepts, concepts-to-prototypes, prototypes-to-products, and so on) and interacts with the other systems. Ideally, a well-implemented PLM system provides a comprehensive framework that lets all the other systems and disparate groups of users to easily interact with an enterprises’ intellectual property so anyone can add value to it.

I think the revised definition and vision finally get to the heart of what a PLM was always envisioned to be, but thus far, executed and implemented by only a few PLM vendors – an intellectual property asset manager that can be used universally within an organization.

Ultimately, the success of PLM is dependent on two things. First, it is imperative that vendors communicate comprehensively and truthfully what their PLM offerings can do and integrate with, as well as what their customers can reasonably expect in terms of gains and ROI. Second, customers must educate themselves to the true needs of their organizations and how they expect PLM to fit in with the rest of their existing and future IT infrastructures. Only then will customer expectations and vendor promises meet  for improving processes and resulting products through intellectual property asset management.

Can vendors pull off what PLM was truly meant to fulfill? I think so, and more and more vendors will do so, increasingly with cloud-based services that are just beginning, but should decrease implementation costs and increase productivity through being available to anyone anywhere.

Tags: CAD, CAE, CAM, cloud, CRM, ERP, PDM, PLM, product lifecycle management, SRM

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