Research Rap: Implementing PLM takes Hard Work (when will we learn?)

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:

1. The value that can be achieved is significant,
   and can impact company performance and profitability
2. 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.