Efficient execution of Product Lifecycle Management (PLM) processes has become crucial to deliver products to market on time and to meet customers’ specific requirements.
Complementary with PLM activities are PLM capabilities. These numerous capabilities drive activities, decisions and data within the end-to-end PLM process. Examples include part and intellectual property management; product structure and reuse; engineering changes; stage-gate approvals; ideas/requirements; software configuration; quality tests and defects; product cost; and development project status.
For a global enterprise to maximize the business impact of PLM processes, they need to examine two dimensions: effectiveness and efficiency.
Product Lifecycle Management process effectiveness – The What
Companies are making substantial investments, often 5-to-25 present or more of revenue, inside the PLM business process. But according to Accenture’s analysis, nearly half of spending inside PLM ends up wasted on products that do not meet market needs or timing. This translates into huge improvement opportunities in PLM process effectiveness.
Product Lifecycle Management process efficiency – The How
Typically, these companies have thousands of highly skilled and well-paid designers, scientists and engineers working each day inside global PLM processes across hundreds of current and future products. But because of a frequent lack of central coordination, prioritization and integration of processes, systems and data, a substantial number of non-value-added or redundant tasks are necessary. This translates to substantial improvement opportunities in PLM process efficiency.
Together, effectiveness and efficiency impact corporate spending inside the PLM process and the potential market revenue impact from PLM, making PLM a billion-dollar lever of corporate performance.