The goal to improve product innovation is on the rise now and over the next couple of years, according to research for a recent Aberdeen report. The report shows continued focus on improving all aspects of developing profitable products - from innovation through development, and including all of the underlying innovation found in design and engineering. How is the major enterprise software technology, PLM, helping?

Defining PLM in 2008-2010
Product Lifecycle Management solutions are much more common in companies that are hitting the metrics that drive product profitability. At Aberdeen, we call these companies the "Best-in-Class." Feel free to skip the rest of this section if you have heard more definitions of PLM than you care to count. The core of PLM is data management, frequently known as "PDM" or "Product Data Management." Not many people I speak with disagree on that part. But trying to define "PLM" meets with a lot more discussion and a host more opinions. For simplicity, I view PLM as centralized data extended by business processes. On a good day, I'll include collaboration in the definition as well.

What Happens with PLM through 2010?
Centralizing product data, and maintaining "one version of the truth" for design information helps companies innovate and develop profitable products. Our research from 2005 indicates that Best-in-Class were 4 times more likely to have centralized data than average companies. A majority of the Best-in-Class had already centralized their data, while adoption in other companies was still low. But extending to PLM (see my working definition above if you skipped it) was even less common in the leading companies, although still about 4 times as likely in the Best-in-Class. So PDM was a best practice, and PLM was an emerging best practice. Now? PLM has emerged. PDM is becoming a right to play in today's market. PLM is heading in that direction. The current benchmarks in indicate that the Best-in-Class are only about twice as likely to have core PLM in place. Why? Adoption has increased, and the average companies are catching up.

PLM Plus in 2008-2010
So what is a Best-in-Class company to do? To maintain their advantage, they are leveraging the current lead they have. They have begun implementing capabilities such as portfolio management, digital manufacturing, regulatory management, and other extensions to PLM that leverage the data they have. They are extending the centralized data beyond designs and bills of material (BOMs) to a fuller view of the commercial product. In short - they are extending their adoption of PLM beyond the basics, and moving the bar higher for their competitors.

I hope the brief look into the research is helpful. I'll share more here, or you can download the report for free (although sponsored) access. 

I look forward to your comments, where do you plan to take PLM next?