Select a PLM Solution to Make Better Products
Selecting a best-fit solution requires balancing needs, cost, and incumbent applications.
- There is no margin for error.
- PLM is such a crucial business process that both the business and IT are hesitant to suggest changes to existing processes. Mistakes can lead to catastrophic business outcomes.
- If major mistakes are made during the PLM initiative, IT will face significant rework and the business will lose trust in the department.
- It’s a difficult market to navigate.
- The PLM market is more complex than other application markets. There is minimal transparency with regard to pricing and feature sets. Additionally, it is not always clear which PLM tools will integrate with an incumbent ERP.
- Choosing the right technology stack is critical. IT needs to spend time understanding who the major players are before making a selection decision.
Our Advice
Critical Insight
- Alleviate organizational pressure in a rapid product lifecycle.
- Shorter product lifecycles and higher frequency of releases put pressure on PLM to get product design and cost management right the first time.
- A PLM that can adapt to the shifting needs of an organization ensures that each product achieves its target cost and planned margin and exposes supply risk while there is still time to fix it.
- PLM and ALM are converging.
- Most physical products are now software enabled. IT needs to manage software releases not just for applications but also for physical products.
- Software vendors have yet to embrace this convergence.
- Get a 360-degree view of the product lifecycle.
- Feed downstream data into upstream processes for constant product improvement. Organizations need to figure out not only where PLM fits in their application process (e.g. PLM – MRP – ERP) but also what data feedback loops are necessary. For example, if a design change needs to occur at some point in the production process, interoperability between ERP, CAD, and then PLM results in faster turnaround and better data hygiene.
Impact and Result
- Our methodology will address the issues presented using a vendor feature–set based approach to showing the client the art of the possible for PLM.
- Drawing on experience from nearly three dozen analyst engagements pertaining to PLM, half of which involved the manufacturing sector, our methodology enables the member to find a structured approach to vendor selection for this complex application category.
- Moreover, by utilizing Info-Tech’s vendor landscape and executive primer, the member and their business stakeholders can be confident they are taking the right approach to selecting a PLM solution.
Select a PLM Solution to Make Better Products
Selecting a best-fit solution requires balancing needs, cost, and incumbent applications.
ANALYST PERSPECTIVE
Product lifecycle management (PLM) is not only for designers and engineers anymore! Navigate the complexity of a vast ecosystem by taking a structured approach to selecting a PLM tool.
PLM systems have grown from simple repositories of engineering and product information to managers of the entire product lifecycle, from product ideation to product retirement. Modern solutions are fostering collaboration among different business units, better integration with the manufacturing/production process, and offering more advanced reporting and analytics.
Likewise, a partner with differentiating features such as CAD change management and automated workflows can act as a powerful extension of an overall product development strategy. It is crucial to make the right decision; missing the mark on a PLM selection will have a direct impact on the business’ bottom line.
Samuel Leese,
Senior Consulting Analyst, Enterprise Applications
Info-Tech Research Group
Phase milestones
Launch the PLM Project and Collect Requirements
Phase 1
- Understand the PLM market space.
- Align organizational use-case fit with market use cases.
- Understand where PLM fits within the enterprise application suite.
- Collect, prioritize, and document PLM requirements.
Shortlist PLM Solutions
Phase 2
- Assess organizational and project readiness for PLM selection.
- Review PLM vendor profiles and capabilities.
- Shortlist PLM vendors based on organizational fit.
Select Vendor & Communicate Decision to Stakeholders
Phase 3
- Invite vendors for product demonstrations.
- Score vendor demonstrations and select the final product.
- Present methodology and outcomes to stakeholders.
Our understanding of the problem
This Research is Designed For:
IT teams tasked with exploring the PLM vendor market and making solution recommendations.
Organizations looking to deploy PLM for the first time, replace their entire PLM, or modify a component of their PLM tool.
This Research Will Help You:
Understand the PLM market of today.
Understand where PLM fits within an application portfolio – specifically, enterprise resource planning (ERP) and customer relationship management (CRM).
Follow best practices to prepare for and execute on selection, including requirements gathering and vendor evaluation.
This Research Will Also Assist:
PLM project teams or working groups tasked with managing the requirements gathering process for vendor selection.
Organizations looking to manage computer-aided design (CAD) data.
Manufacturers looking to manage product data and streamline product development.
This Research Will Help Them:
Assess organizational and project readiness for embarking on PLM selection.
Prepare for implementation by following best-practice recommendations.
Executive summary
Situation
- PLM tools need to integrate deeply with an organization’s existing technology stack in order to be effective. Thus, there is actually a limited selection of solutions on the market that will meet all of the business’ specific needs. Moreover, confusion around vendor CRM/ERP integration and feature sets also creates missed opportunities for the business.
Complication
- PLM is such a crucial business process that both the business and IT are hesitant to suggest changes to any existing processes.
- Making a mistake can lead to catastrophic business outcomes. If major mistakes are made during the PLM initiative, IT will face significant rework and the business will lose trust in the department.
Resolution
- Info-Tech’s methodology will address the issues presented using a vendor feature set–based approach to showing the client the “art of the possible” for PLM.
- Drawing on experience from nearly three dozen analyst engagements pertaining to PLM, half of which involved the manufacturing sector, Info-Tech’s methodology enables members to find a structured approach to vendor selection in this complex application category.
- By using Info-Tech’s cursory vendor landscape and executive primer, members and their business stakeholders can be confident that they are taking the right approach to selecting a PLM solution.
Info-Tech Insight
- PLM and ALM are converging.
Most physical products are now software enabled. IT needs to manage software releases not just for applications but also for physical products. - Expose downstream risk with a view of the entire product lifecycle.
Gain visibility into the entire product lifecycle with PLM. This view leads not only to increased product quality but also to smarter decision-making with more critical data points being collected.
The PLM movement is upon us
Why care about PLM?
“Companies make PLM investments in many different areas and with many types of solutions, including mechanical CAD, simulation and analysis, visualization and collaboration, building design, and others. This diversity is reflected in the many different solution providers to the PLM market and in the fact that no single type of provider dominates the industry.”
– CIMdata, 2016
$43.5B
The PLM software market was valued at US$43.5 billion in 2017, registering a compound annual growth rate of 9.93% going forward.
Source: Business Wire, 2017
What are PLM’s measurable benefits and KPIs?
The following are baseline metrics and measurable key performance indicators (KPIs) that illustrate the value of PLM at your organization.
The baseline measurements enable you to determine how your organization has been operating thus far and the degree to which it has been transformed following a PLM selection.
The aim of examining the KPIs is to help you build a better business case for PLM by articulating the software’s benefits, such as accelerated new product creation, reduced time to market, and decreased waste.
Baseline Metrics
- Time it takes to access data
- Sales figures and successful contracts
- Inventory waste
- Returns
- Cost of lost user productivity
- Number of data entry errors and their associated costs
Quantitative KPIs
- Number of workflows implemented
- Time to find information
- Design time, including travel time and collaboration
- Number of design errors
- Design review process time
- Product development cost
- Response time to clients and partner companies
- Time-to-manufacturing and other relevant product development milestones
Qualitative KPIs
- Abided by industry environmental and health and safety regulations
- Reduced opportunities for human error and reduced administrative tasks
- Maintained a traceable record system
- Improved enterprise communication and sped up response times to issues
- Product artifact reuse
Info-Tech Insight
No two organizations will have the same objectives for a PLM system. When selecting an application, the vendor should help set benchmarks that match your company’s goals.
Major retailer kicks off a PLM initiative to improve product quality
CASE STUDY
Industry - Retail
Source - Parker Avery Group
Challenge
A global $3-billion multichannel retailer and wholesaler of clothing and accessories was using multiple systems and spreadsheets to handle all product design and development processes.
The disparate systems caused a lack of visibility into the coordination of these processes, inhibiting the company’s ability to foresee issues causing production problems.
The retailer needed relevant information to be consolidated into one system, providing visibility into the entire process for those involved in product development.
Solution
After project leads met several stakeholders, PLM requirements were developed and weighted. An RFP was then created from these requirements.
Following a market scan, the retailer selected vendors to complete its RFP. Demonstration scripts were developed as the RFPs were completed by vendors.
Shortlisted vendors progressed to the demonstration phase.
Results
The retailer selected a shortlisted solution, and as a result of the project it now develops all items in a single integrated system. All applicable hierarchy and supplemental item information is entered in the PLM system and shared seamlessly throughout the retailer’s technological footprint.
Additionally, the retailer gained visibility into any tasks tracking late during the product design and development process.
What is a PLM tool?
Our Definition
Product lifecycle management (PLM) is an information management system that facilitates the definition, design, testing, and marketing of a product throughout its entire lifecycle. It is used by internal product development teams as well as customers and suppliers. PLM suites supplant more basic applications that manage product lifecycle, such as the procure-to-pay module of an enterprise resource planning (ERP) platform or an office productivity suite.
What It Does and How It Works
A PLM tool provides several key capabilities, including but not limited to:
- Requirements management
- Bill of materials (BOM) tracking
- Change management
- CAD integration
- Compliance checks
- Quality assurance
- ERP data integration
Many organizations elect to tightly integrate their PLM solution with other parts of their ERP to provide a 360-degree view of any given product.
Info-Tech Insight
PLM tools improve overall product quality by allowing manufacturers to take notes given to them by product designers and ensure all details and procedures surrounding the manufacturing of the product are of sufficient quality. This is especially helpful if there are teams in multiple locations working on different phases of the product lifecycle.
PLM provides a 360-degree view of the four phases of the product lifecycle
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DEVELOPMENT/ INTRODUCTION:PLM houses the data associated with development and bringing the product to market such as CAD files, BOM, requirements documentation, and marketing collateral. GROWTH:PLM enables production efficiencies by feeding product data (i.e. defects) back to engineering teams who then refine the product and production processes. MATURITY:PLM is leveraged to maintain profitability. For example, the organization views the product BOM to determine which components can be found for a lower cost. DECLINE:PLM surfaces artifacts from the product in decline during the development of a new edition of the product or an entirely new product in order to improve time to market and efficiency. |