Jim Brown

Who Says a PLM Program Works?
September 21, 2007

Past posts defined the PLM program and discussed why you might want to adopt one. But other than opinion and anecdote, what proof do we have that this works? This concept is not new, and is partially a reaction to the challenges companies faced in the past with large, unwieldy ERP implementations. PLM does not have to be the same way (neither did ERP, by the way, but that is a different story altogether). Many companies with successful PLM environments today started with PDM and extended it with new business processes. In fact, quite a few companies we interviewed have extended their base implementation multiple times. Conversations with leading Systems Integrators support the success of this approach as well. But beyond that, Aberdeen Group research has confirmed the value by identifying two important facts:

• Best-in-Class companies (those that have improved the most from PLM) are more likely to have developed a strong, firm vision for PLM - as opposed to focusing on individual wants and needs

• These leading companies have, however, adopted PLM in either a "phased" or an "incremental" approach - addressing tangible business problems of a size and scope that can provide a rapid, concrete return on investment (ROI)

Why does this matter? It's a simple matter of results:

• Best-in-Class companies achieve twice the ROI on their initial PLM projects, and 2.5 times greater ROI for subsequent PLM extensions
• Best-in-Class companies have received five times greater improvement in product profitability than their competitors

These leading companies are using the same tools as the rest, but have set themselves apart with a more complete strategy and a better implementation approach. For more information on the PLM Program, feel free to download the Aberdeen Group report on "Profiting from PLM."

I look forward to your comments.

Posted by Jim Brown on September 21, 2007 | Comments (0)