I don’t know if it is the time of the year, but suddenly there is again in the PLM world a discussion which is related to the theme of flexibility (or the lack of flexibility). And I do not refer to some of the PLM supplier lock-in situations discussed recently. In a group discussion on LinkedIn we talked about the two worlds of PLM-ERP and that somehow here we have status quo do to the fact companies won’t change the way they manage their BOM if they are not forced to do or see the value.
Stephen Porter from Zero Wait-State in his blog wrote an interesting post about using PLM to model business processes and I liked his thoughts. Here the topic, flexibility was brought into the discussion by me.
Then Mark Lind from Aras responded to this post and referred to his post on Out-Of-The-Box (OOTB) PLM which ended in a call for flexibility.
However, reading this post I wanted to bring some different viewpoints to Mark’s post and as my response became too long, I decided to post it in my blog. So please read Stephen’s post, read Mark’s post and keep the word flexibility in the back of your mind.
My European view
As I have been involved in several OOTB-attempts with various PDM / PLM suppliers, I tend to have somehow a different opinion about the purpose of OOTB.
It is all about what you mean with OOTB and what type and size of company you are talking about. My focus is not on the global enterprises – they are too big to even consider OOTB (too many opinions – too much politics).
But the mid-market companies, which in Europe practice a lot of PLM, without having a PLM system, are my major target. They improve their business with tools fitting in their environment, and when they decide to use a PLM system; it is often close related to their CAD or ERP system.
In this perspective, Mark’s statement:
Now stop and think… the fundamental premise of OOTB enterprise software is that there’s an exact match between your corporate processes and the software. If it’s not an exact match, then get ready to customize (and it won’t be OOTB anymore). This is why the concept of OOTB enterprise PLM is absurd.
I see it as a simplification – yes customers want to use OOTB systems, but as soon as you offer flexibility, customers want to adapt it. And the challenge of each product is to support as much as possible different scenarios (through configuration, through tuning (you can call it macros or customization) Microsoft Excel is still the best tool in this area
But let’s focus on PLM. Marc’s next statement:
It doesn’t matter if we’re talking about Industry Accelerators or so called ‘best practice’ templates
Again is simplifying the topic. Most of the companies I have been working with had no standard processes or PLM practices as much of the work was done outside a controlled system. And in situations that there was no Accelerator or Best Practice, you were trapped in a situation where people started to discuss their processes and to-be practices (losing time, concluding the process was not so easy as they thought, and at the end blame the PLM system as it takes so long to implement – and you need someone or something to blame). Also her Stephen promotes the functionality in PLM to assist modeling these processes.
PLM is a learning process for companies and with learning I mean, understanding that the way of working can be different and change is difficult. That’s why a second, new PLM implementation in the same company is often more easy to do. At this stage a customer is able to realize which customizations were nice to have but did not contribute to the process and which customizations now could be replaced by standard capabilities (or configured capabilities). A happy target for PLM vendors where the customer changes from PLM vendor as they claim the success of the second implementation. However I have seen also re-implementations with the same software and the same vendor with the same results: faster implementation, less customization and more flexibility.
I fully agree with Marc’s statement that PLM implementations should be flexible and for me this means during implementations make sure you stay close to the PLM standards (yes there are no ‘official’ standards but every PLM implementation is around a similar data model.)
As the metadata and the created files represent the most value for the customer, this is where you should focus. Processes to change, review, collaborate or approve information should always be flexible as they will change. And when you implement these processes to speed up time-to-market or communication between departments/partners, do an ROI and risk analysis if you need to customize.
I still see the biggest problem for PLM is that people believe it is an IT-project, like their ERP project in the past. Looking at PLM in the same way does not reflect the real PLM challenge of being flexible to react. This is one of my aversions against SAP PLM – these two trigrams just don’t go together – SAP is not flexible – PLM should be flexible.
Therefore this time a short blog post or long response, looking forward to your thoughts
7 comments
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December 10, 2010 at 1:32 am
Dick Bourke
Jos,
Very nice job bringing a different viewpoint to the subject. Mark’s point seems to lead up to ARAS as the solution. Surprise?
Perhaps another thought is: Can a small/medium size company afford not to go OOTB?
Dirk, agree with your question and I believe if there was one product that solves all I would promote it
Best regards
Jos
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December 10, 2010 at 2:50 am
MarcL
Dick’s absolutely right, my perspective is biased. It seems like we’re in agreement and maybe just misunderstanding each other. OOTB is a great starting point, but one should not conclude that OOTB is ‘the only way’ forever – which is what too many people do. In fact, I like the way Jos puts it as a way to start using the system and get value while accelerating the learning & improvement process.
One of the problems is that OOTB is popular because PLM systems have traditionally been very difficult to customize and when customized upgrades become near impossible, sometimes forcing a re-implementation. This is the reason people say, “I only want it OOTB”. Because they are scared of the effort, cost, future headaches and pain they will endure if they customize.
Solving that problem is the whole reason our company exists (Aras, for those that don’t know)… OOTB PLM data model that can be easily customized w/o complex programming and no matter how much someone customizes, still upgrade in hours or days (not months or years).
This is why I make such a big deal about flexibility and end up plugging my own company. Its our purpose in life to rid the world of locked down OOTB impossible to customize & upgrade PLM systems.
MarcL
http://www.aras.com
Marc, I agree with your statement and understand your role – we all need to provide value to our customers and as customers are different they have different entry points – so let’s be flexible 😉
Best regards
Jos
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December 10, 2010 at 2:58 am
MarcL
great ‘flexibility’ picture also!
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December 10, 2010 at 10:51 am
Jovan
@Jos @Dirk
Agree with you both. I am a firm believer that in order to address SMBs PLM vendors should get away from typical software sales. They should offer a platform on which either SMBs or third parties can do whatever they want. I have two example in mind: Apple and Salesforce.com. Both the iPhone and Force.com allow them to deliver cheap and specific user experience. It will be cheaper for SMBs, Low investment (if done on the cloud like salesforce) and a huge agility to address specific pains.
For PLM VARs it would be a huge opportunity to grow a new market (the success of Technia on ENOVIA leads me to think that there is more to do if they were offered a structure designed as a Platform and not as a Software). Applications could interact with each others and adress the market in the best way possible.
PLM vendors would benefit of this change because they will enable innovation in a domain that has not fundamentally changed for the last 15 years. As Firefox did with their extensions, they could implement OOTB innovations from others and make all the platform benefit from it.
Yannis
Yannis, you are talking about my dream and I believe both DS and PTC with their platforms are announcing the idea of apps. Thanks for your feedback
Best regards
Jos
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December 10, 2010 at 11:11 pm
Jovan
Jos,
For PTC, you can refer to my blog post with some critics about the approach (http://jovansthoughts.blogspot.com/2010/10/plm-art-of-marketing-or-how-to-screw-up.html).
For DS, I honestly cried when I saw their “AppStore”. I am sorry to say, but an appstore is not a place with links to download where you can download free applications that DS already had! Have an appstore is trendy from a marketing perspective, but it has no practical reality.
Will that come? I do not see it to be honest. I still hope though, but I believe that like with Salesforce.com the change will come from a smaller and more agile actor…
Thanks again Yannis – let’s look end of 2011 what will be the status. Having a vision – excellent – now execute
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December 13, 2010 at 11:42 am
Max J. Pucher
PLM Product Lifecycle Management is an innovation process. How could it ever be driven by hardcoded OOTB products or designed by means of orthodox, rigid BPM workflows. But typical Case Management isn’t good enough either as it lacks functionality.
You mention that GOALS won’t be achieved if the system doesn’t support them. Therefore the system must enable the definition of goals and manage the complete cycle around them.
A week ago we did a demo for large German insurance and defined their current PLM setup into ACM Adaptive Case Management by focusing on a list of goals and below that on activity checklists. All the signoffs for getting a new insurance product into production were included. The necessary data entities were setup and the content that would become the complete product documentation for auditing was already setup.
How long did this take? ONE DAY give or take a couple of hours. The reason to use ADAPTIVE processes is the necessary flexiblity enhanced by social collaboration AND the reusability of previously successful goal-oriented activities. The Papyrus Platform provides OOTB through the ACM framework and a set of PLM templates. If you don’t like those you simply define your own and let evolution and people empowerment drive innovation.
More on: http://www.adaptive-process.com
Max thanks for your reply – I find it hard to put your comments in my context – for me PLM is an innovation enabler and not necessary an innovation process – i think innovation cannot be put into a process. Secondly I did not mention GOALS are related to a system – I believe it is always nice if a system offers support for processes but to which level it is implementable depends indeed on the system. And when I mentioned that implementing processes takes time and effort when no templates exist – it is true I can model a process in one day, but to have people integrated and committed to it – the change process (human change) and politics can often take the majority of time
Best regards
Jos
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December 23, 2010 at 9:03 pm
Oleg Shilovitsky
Jos, I think the discussion about flexibility is an important one. However, the balance between OOTB and flexible is the most important – http://beyondplm.com/2010/12/13/plm-out-of-the-box-misleading-or-focusing/
Best, Oleg
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