In my previous post, I shared my thoughts Why PLM is the forgotten domain in digital transformation. Legacy data, (legacy) people and slow organizations are the main inhibitors to moving forward. Moreover, all this legacy makes it hard to jump on the digital wagon.
When you talk with vendors and implementers of PLM solutions, they will all focus on the fact that with their solution and support PLM is simple. It is simple because:
- We have the largest market share in your industry segment
- We have the superior technology
- We are cloud-based
- We are insane customizable
- Gartner is talking about us
- We have implemented at 100+ similar companies
For my customers, implementing PLM was never simple as every PLM implementation was driving a business change. In the early days of SmarTeam, we had the theme “We work the way you work”, which is in hindsight a very bad statement. You do not want to automate the way a company is currently working. You want to use a PLM implementation to support a business change.
Never implement the past, implement the future
And there are changes ……
When I was discussing PLM with my potential customers ten years ago, the world was different. PLM was in a transition from being a PDM-tool from engineering into an extended PDM-tool centered around product development. A major theme for this kind of implementations was to move from a document-driven environment towards an item-centric environment. Instead of managing documents (CAD files and other files like Excel) the implementation was based on providing a data continuity, where the item (the physical part or in SAP terms the material) would be the main information placeholder. The continuity is implemented around EBOMs and MBOMs and thanks to automation the MBOM can be connected to the ERP system in a continuous flow.
Just search for item-centric or BOM-centric, and you will find many references from vendors and consultants for this approach. Implementing PLM item-centric is already a big step forward in efficiency and quality for companies. However,…
Never implement the past, implement the future
And there will be changes …..

Digital Transformation & PLM on YouTube
Digital transformation is changing the way we do business and is changing the way companies should organize their data. A BOM-centric approach is no longer the ultimate implementation concept. To support a digital enterprise, the next step is a model-based enterprise. The model (not necessary the 3D-model) and its maturity and configurations are intended to be the reference for an organization. The model and its representation can connect hardware and software in a data-driven environment through the whole lifecycle. A model is needed to support smart manufacturing and the digital twin concept.There are many impressive marketing movies on YouTube explaining how companies/vendors implement digital continuity. Unfortunate the gap between marketing and reality is big at this time because moving to a model based enterprise is not an easy step. Coming back to the LEGACY-statement at the beginning of this post, it is not simple.
We all have to learn
Digital transformation is just starting in the domain of PLM. Sharing and collecting knowledge is crucial, independent from particular solutions. For me, the upcoming PDT-conference in October is going to be a reference point where we are on this journey. In case your company has the experience to share related to this topic, please react to this link: http://pdteurope.com/call-for-abstract-now-open/
In case you want to learn and believe it is not simple, wait till the program it will be announced. The PDT conference has always been a conference where details are discussed. Looking forward and discuss with you.
Conclusion
Implementing and continuing with PLM is not simple for a company due to changes in paradigms. Digital transformation forces companies to investigate the details how to make it happen. Implementing PLM in scope of a digital transformation requires learning and time, not products first.
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April 18, 2017 at 9:23 am
Transformer
In the process industry, Intergraph and AVEVA dominating the market, and they want to become PLM player. However, EPC should maintain multi-cad environment because CAD system is project dependent. How do they implement PLM at multi-cad environment ? do you know best practice for EPC PLM ?
Dear transformer, I have been involved in several engagements with EPCs in the process industry – Oil & Gas, Chemical, and Nuclear. The concepts of modern PLM (data sharing and an end-to-end flow of information) are not common for these industries. By changing the way of thinking, moving from a document-driven towards a data-driven environment the benefits can come for an EPC, actually the whole value chain. A data-driven approach requires standards, like in the construction industry BIM (IFC) or in the process industry ISO 15926. Instead of focusing on file formats, the EPC environment should contribute to a virtual model of the plant. The challenge of this approach: it is not easy, it takes time, and you need strong advocates that trust the expected outcomes from a digital environment. I could write a blog post about this team soon 🙂 Thanks for your question.
Best regards, Jos
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May 16, 2017 at 9:04 pm
Kent Keller
Right on the money. I have spent my career trying to explain the difference between EBOM/MBOM/ERP and why Item-centric, CAD agnostic system are better suited to enterprise level deployment. Key employees that are incapable of change, yet empowered to direct policy are venom to any organization that wants to compete in the marketplace.
Thanks for your feedback Kent. It is clear we are not alone in this mission. There is so much to improve when you just take the time to digest the concepts. Unfortunate this does not happen, in particular in small and medium-sized businesses. Best regards Jos
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