PLM and Improving Product Innovation

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?