As a follow-up of my holiday thoughts, I want to discuss this time the various interpretations of PLM that exist. Of course we have the ‘official’ definitions of the consultancy companies like CIMdata and 2PLM ( I took an American and European example). They describe clearly that it is a business approach, not necessary a set of technologies and tools to implement.
Then we have the PLM vendors, where Dassault Systems and Siemens claim their visionary leadership. Looking at their websites, it is hard to find an explicit message. They both claim PLM brings innovation (how ?) , where Dassault Systemes has a strong message around 3D and virtual product development and Siemens focuses more on efficiency and better collaboration benefits. I am not going in depth into PTC and Aras or other PLM vendors as I am only taking two examples per type of company, but look at their websites and find out how (and if) they describe PLM as a business approach.
For a PLM definition at SAP you have to dig a little deeper and I got even more surprised when searching through the Oracle web site. Here it was difficult to find a generic PLM message. There was the list of acquisitions (which make me wonder if this means they are all integrated) and there was the list of industries and only when drilling down into the industries, you will find PLM related information. Here I still have the feeling that these companies understand there is a need for PLM, but that it is not in their veins, they want to manage product data as a ‘single version of the truth’ – which is not a bad idea and I will come back on that later – but they want to manage different data.
Also upcoming are the generic PLM on-line solutions (Arena and PLM+), which for me still are somehow a contradiction to what consultancy companies describe as PLM. Instead of a bussiness approach it is an IT-solution. In parallel there are more dedicated on-line solutions that support a specific business process (where PLM practices are embedded) – like for Apparel, CPG.
For these type of solutions, I have a more positive opinion as they are lowering the threshold to implement PLM in a certain industry. However the biggest skepticism I have for these types of solutions is the degrees of flexibility it will offer the implementing company to be different from standard best practices. As all companies have their uniqueness in being competitive, will they be able to support this ?
And then there was the press release from Zero Wait-State which struck me:
Zero Wait-State is launching a new website that will provide a central location for Product Lifecycle Management software and partner reviews. This site will be a valuable resource for companies trying to assess different PLM solutions and which partners to work with. The site will be driven by users and allow them to share their experiences with different software products and implementation partners.
See the full press release here: Zero Wait-State Announces New Website for PLM and Service Provider Reviews.
I believe in these times of product selection and reviews certainly a good initiative. Where do we find vendor independent reviews of various PLM products ? Bringing PLM to social communities.
But ……
Here I want to take a step back. What is the essence of PLM and how do you know as a company you want to implement PLM ?
The majority of mid-market companies are not looking for a PLM system. Most of the mid-market companies have the impression that PLM is complex and expensive and typical mid-market vendors like Autodesk or SolidWorks are not pushing PLM (try for fun to search for PLM on their websites).
So will a mid-market company be able to select a PLM product through communities in the same manner as you select a consumer product ?
I believe the main challenge for a PLM implementation is not the software, but the business change.
In a company where most people are thinking (and rewarded) departmental, it is difficult to implement a new system that affects all departments. Creating the single version of the truth for product data is one of the basics for PLM. Try to get an agreement with sales, engineering, production and service who will be responsible for which part of the BOM. SAP’s single version of the truth is much more a statement from an IT-infrastructure point of view not focusing and pushing a change of business processes.
I believe, and this is also based on discussions and comments from colleagues focusing on the mid-market, that many mid-market companies are implementing basics of PLM, not always using a ‘certified’ PLM system or PLM vendor, but a pragmatic solution (customization / piece of software) which connects parts of the product information. These solutions are usually extensions on top of the CAD data management environment or the ERP system.
And here PLM vendors have a mission. Provide building blocks (services) that allow mid-market companies to connect data between departments based on known standard authoring tools. For classical PLM industries (Automotive/Aero/Fabrication & Assembly) the major CAD systems and virtual product development plus analysis software are major disciplines to manage. Other industries also have their authoring tools. Connecting them through services and provide an easy to implement backbone for product information. This should be not a big-boom effect in the mid-market, but more an evolution – moving to PLM 2.0 or beyond ?
Will this come from PLM providers or IT-providers ?
Conclusion:
For the mid-market it is not about which PLM, but more about who can provide a gradual business change from sequential and departmental business processes towards company-wide processes, where people share and collaborate around the single version of data. So which PLM should be called which provider …..
I am looking forward to your opinion.
3 comments
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September 14, 2010 at 8:53 pm
Stephen Porter
Jos,
Thanks for the mention of our press release and new website. So far it has garnered a lot of attention but not a lot of reviews. i am working with various vendors and partners to affect that. I definietely agree with you that the definition of PLM is somewhat nebulous depending on who you talk to and what their agenda is. But I also think larger companies have some of the same issues as the mid market companies when it comes to trying to put a ambitious all encompassing system in place. I think your idea of building blocks applies for any company trying to adopt PLM.
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September 22, 2010 at 2:46 pm
Chris Stewart
Hi Jos,
I think it was a wise idea to include both American and European influences in your blog. In my experience the way PLM is viewed and implemented in the US.
Regarding mid-size companies the PLM ‘sale’ is not more difficult as I don’t believe the cost per license is ever really and issue. It’s more a question of resourses for SMB, they have to dedicate staff (often their best) to the project definition and implementation – and this hurts them. Their alternative is to have the vendor/reseller to do the bulk of the job and then they will end up with a solution which has a lot of customisation that they (customer) can rarely support or understand.
This means that thw customer has entered the trap of being 100% reliant on the vendor/reseller and thus ends up having a high yearly cost that they never really planned for 😦
So in some sense I agree with you that it’s not the software but the implentation that is vital, however, I feel that SMB must be involved in the implentation to avoid being trapped in sky-high annual costs
Thanks Chris for your insights – interesting you make the association with yearly costs, where I would focus on yearly benefits (which for sure are influenced by the costs)
Best regards
Jos
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October 25, 2010 at 12:28 pm
Daniel Flipse
Hi Jos,
You mentioned that mid-market companies may not have the strategic layer in place to ‘see’ the need for (and benefits of) having ‘a single version of the truth’ and to make the concious decision to fully adopt PLM. But aren’t some of the properties of larger companies (like strategic / decision making layers, complex company structures and lack of flexibility), some of the main drivers for PLM? Isn’t PLM allowing larger companies to be as flexible as smaller ones, by being part of ‘virtual innovation teams’ and looking at ‘a single version of the truth’? You make the case that mid-market companies may not realise that they’d significantly benefit from having a full blown PLM. I’d love to hear from you that the business case for mid-market is very strong indeed, despite some additional challenges to sell and implement (gradual business change, etc.).
Thanks for your great weblog!
Daniel
Daniel hi,
Thanks for your interesting remark, where you mention that perphaps one of the main drivers for PLM is creating flexibillity and innovation (sorry for the quick interpretation). I was planning to write a post on that topic as I have seen various companies implementing PLM in such a rigid manner that it becomes like ERP – no flexibillity etc etc. I still believe in the business case for PLM (concepts) – see my reservation and will come back to that in future posts
Regards
Jos
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