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Research Rap: Implementing PLM takes Hard Work (when will we learn?)
August 28, 2008
A quick peek into some research on ... how small to midsize manufacturers are implementing PLM points out some of the same things we have been learning as an industry (or at least I thought we were learning) about implementing enterprise systems over the last couple of decades. There aren't any shortcuts, it takes some hard work, and there is a right (and wrong) way to do it.
My history spans ERP, Supply Chain, and PLM solutions and I am constantly amazed at the fact that companies continue to try to get a PLM implementation on the cheap - meaning without doing the right homework up front. Haven't we learned anything? And this is not just for smaller companies, I see the same things in the larger companies I speak with. But the Aberdeen research shows that leading companies are taking a more mature approach, and reaping greater benefits.
Enterprise Application - for better or worse
PLM is an enterprise application, whether we like it or not. That means two things:
- The value that can be achieved is significant, and can impact company performance and profitability
- That value will require changing the way the business operates, which takes more effort than loading up some new software
I hope we are on the same page so far. Don't get me wrong, you can implement CAD and other engineering tools without fundamentally rethinking cross-departmental business processes. Even product data management (PDM) can be put in place without major business changes if you take a straightforward data management approach and don't plan to change the way the business runs. But PLM as a tool doesn't provide as much value as PLM as an enterprise application - and the Aberdeen data proves it.
What the Research Says
One of the things that really struck 
me from Michelle Boucher's report was the information on "securing a successful implementation." The research proves that the leading companies - what Aberdeen calls the Best-in-Class - are performing better in product development. It also shows that they:
- "Recognize that an enterprise application requires executive oversight" - meaning they are more likely to have executive steering committees
- "Are 1.3 times as likely as than the Industry Average, and 2.2 times as likely as Laggards to establish success criteria for PLM implementations" - indicating they spend the time to analyze their business and set a strategy before implementing software
- "Prioritize the implementation according to their largest identified pain points" - meaning they don't try to solve all of their problems at once, and focus on tangible returns in a programmatic approach
The graphic from the Aberdeen report also identifies that they use experienced help and audit their development processes up front. There are a lot more recommendations in the study, but what I love about the study is that it proves what many of us have been saying for years - use the lessons learned from implementing past enterprise applications on PLM to get the most value.
What it all Means
What is means? Don't expect PLM to implement itself. Get help from someone that knows how to implement PLM, and don't forget the lessons you learned from implementing other solutions. The best practices identified in the Aberdeen report are not new. There is no magic, but the value is there for those that are willing to do it the right way. There is now a lot of help available for companies implementing PLM. Working with the large services firms with PLM expertise - such as Accenture, Atos, CSC, Deloitte, or IBM - can provide best practices and experience. The large systems integrators - EDS (soon to be a part of HP, who had their own PLM practice), Infosys, TCS, and others - have a lot of PLM expertise as well and often have a surprising amount of business process expertise. Some more niche consulting firms - like Integware, Kalypso, or PRTM - can also provide a lot of direct experience, senior resources, and (potentially) more flexible engagement models than the big guys. In short, there are a lot of options for help out there, and companies should take advantage of them.
So that was a quick peek into some recent research on implementing PLM, I hope you found it interesting. Does the research reflect reality? Do you see it differently? Let us know what it looks like from your perspective.
Posted by Jim Brown on August 28, 2008 | Comments (2)
