Choosing Step 1

Let's face it, PLM offers too many choices. There is ample room for improvement in most companies' product innovation and product development processes. And PLM suites are broad and varied. The simple answer is to solve the most burning problem for your business - but that is such a simplification it's not very useful. It's hard to identify the root of the problem and the area with the largest potential. Consultants can help, as can benchmarks that offer objective recommendations based on your company's current operations.

One of the keys in determining a first step is to pick something that you can build on in future projects. The first step in the process should be one that can be leveraged by future projects so that "one plus one is greater than two." There are a few common approaches to picking a first step. Some of the more common ones are:

• Get the data under control
• Pick a process to improve
• Extend a process or function with collaboration
• Focus on a specific organization

The right first step might be different for any given company, depending on the corporate strategy and current performance. Again, consultants and benchmarks can help. Many consultants suggest that a precursor to any improvement effort is to get a handle on the data.

Product development involves a lot of disparate information that needs to be pulled together in the context of a product and/or project. Many companies can improve efficiency and decision-making just by making information readily accessible. Benchmark after benchmark shows that the top performers have centralized product data. In fact, one of the earlier benchmarks that set the stage for our research at Aberdeen was called the "Product Innovation Agenda." Among other things, this research clearly identified the value of centralized data. In fact, the research showed that Best-in-Class companies are four times more likely to have centralized product data (see Figure below).

The data may be in a central vault or pulled together with a more virtual approach by tying product data together across multiple applications and databases. The key point is that the information is managed, up to date, and put in context of the work at hand.

Later this week, we will discuss some of the other options to start down the path to PLM.

I look forward to your comments.