This time a short post. When I committed myself to write posts about connecting PLM and ERP, I already touched several times the PLM and ERP vision (from the point of view of a PLM missioner of course)
Just as a reminder the 5 most objections I heard the most from companies when discussing a PLM implementation. You also will find references to the first two objections I already discussed.
The 5 reasons not to implement PLM I heard the most were:
- The costs for a PLM implementation are too high
- A PLM implementation takes too long
- We already have an ERP system
- Isn’t PLM the same as managing CAD files ?
- We are so busy, there is no time to have a PLM implementation in our company
3. We already have an ERP system.
From the analyst point of view, PLM has established itself as a discipline beside ERP and CRM. Which discipline requires the major focus in a company depends on the major business process of the company. It is clear PLM brings it benefits for manufacturing companies, where innovation and managing their product IP are major reasons for success.
Various publications on this topic (in order of relevance):
- Collaborative Visions.com- PLM action
Perfectly explaining where PLM brings value and where it is different from ERP - Aberdeen Group – The Best Kept Secret of Top SMB Product Developers. Finding the Shortest Path to PLM Value
Showing the difference in perception and real attention needed when implementing PLM and where the benefits are for SMB companies - AMR research- PLM Report
Showing the PLM market is growing steady, which means for companies that PLM vendors will invest in a more and more mature product based on common principles - TechClarity – Complementary Roles of ERP and PLM
Explaining the differences between ERP and PLM and why you need them together - Aberdeen Group – Integrating the PLM Ecosystem
Explaining integration of your PLM system will bring competitive advantages - CIMdata – SAP PLM roadmap
Showing that even SAP recognizes PLM exists
So by studying all the links in this post, you might come to the conclusion below:
Conclusion
All my previous posts and the above publications (and much more) explain that if a company is interested in managing their Intellectual Property (IP) – the reason why they really differentiate , plus if they want to remain in business by being innovative,PLM is the proven approach for this type op companies.
And tired of innovation, watch this:
3 comments
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September 3, 2008 at 3:04 pm
Herve
You’ve got it! First time I see a blog post on ERP vs PLM!
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September 3, 2008 at 8:25 pm
josvoskuil
Thanks Herve, although sometimes it seems ERP vs PLM but in most of the cases is should be ERP and PLM
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December 11, 2008 at 8:38 pm
Chris Williams
Your conclusion is just wrong!
Conclusion
All my previous posts and the above publications (and much more) explain that if a company is interested in managing their Intellectual Property (IP) – the reason why they really differentiate , plus if they want to remain in business by being innovative,PLM is the proven approach for this type op companies.
PLM does not manage the IP of a product. PLM has no knowledge of or connection to the IP of a Product. The IP of a Product is how did the team get to the design. The PLM tool only captures the net result. There is a reason why people dis like lossing a designer that has been there foerever. It is because he knows why the hole is .55 instead of .56…
To say PLM drives innovation or captures IP is just plain wrong!
Chris – Thanks for your reply – I see your are exactly supporting my point. The fact that we remain dependent from the designer is because we do not store our product knowledge but keep it in the heads of the people. This blocks any other person to understand what has happened with a product and what further exists – and for that reason unable to understand the full picture (IP) and where upportunities arise for innovation.
Jos
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