A quick peek into some research on ... how PLM fits into the enterprise system ecosystem from Aberdeen Group shows that PLM is playing a much larger role in Best-in-Class companies at housing product data for the corporation.

ERP <> PLM

The Research
The research was targeted at understanding how companies are integrating the "PLM Ecosystem" in relation to business processes, applications, and data. Today, I am focusing on the data aspect, in particular which system is the "master" or "system or record" for specific data related to a company's product. Some of the information wasn't a surprise, such as engineering bills of material having their system of record in PLM. After all, it is typically developed in the PLM suite. But some surprises came out. For example, the "as built" BOM. As you would expect, most companies store this in ERP and consider that the master. It is transactional information, after all. On the other hand, but about 1/3 of Best-in-Class companies (the research defines these as those that are hitting specific product profitability metrics) are storing as-built in PLM.  Don't get me wrong, 1/2 of the Best-in-Class store it in ERP. But only 13% of all other companies use PLM, leading to the conclusion that Best-in-Class companies are rethinking the "obvious" choice of ERP as the master for as-built data.

This is just one example among many. These leading companies are shifting to PLM to house their product data for the enterprise, ranging from engineering information to marketing, service, and sourcing data. The information is fascinating, and spans the product lifecycle.

The Results
In the interest of keeping this short, I will simply share the following snipit from the research. I focused on things that weren't obvious like "items" and "BOMs" but on the areas traditionally outside of PLM (until now, I guess). The raw percentages are in the appendix of the report if you are interested. What is most interesting is where the Best-in-Class differ from the Industry Average in how they view their system of record. In cases where the Best-in-Class take a different approach than the Industry Average, the Best-in-Class are much more likely to be using PLM as their product system of record.

• Costs / sourcing. ERP is the most common SOR, but 42% of the Best-in-Class use PLM (three-times more likely than others). The Approved Material List (AML) SOR is about split between ERP and PLM overall, but 75% of Best-in-Class use PLM. The Approved Vendor List (AVL) SOR, on the other hand, is more evenly split by the Best-in-Class between ERP and PLM (42% versus 50%). 
• Manufacturing. The SOR for manufacturing processes is split between ERP, MES, PLM and others / none overall, while ERP is the most common SOR for the Best-in-Class (50%). For the production model and process specifications SOR is scattered overall, but 42% of Best-in-Class store both in PLM.
• Quality. Over half of the Best-in-Class store quality plans in PLM, over two-times more than others. The Best-in-Class are most likely to use PLM as SOR quality results as well (33%), with QMS close (25%), and ERP not far behind (17%).
• Service. Service instructions are scattered in regards to SOR, but the majority of Best-in-Class (55%) use PLM as SOR. 

So PLM is taking over as the "one source of truth" for product information, as many have predicted. I will share more about integration of processes, applications, and data as I can. Does the research reflect reality? Do you see it differently? Let us know what it looks like from your perspective.