Introduction
improve business efficiency by providing:
In today’s challenging global market, enterprises must * Dramatic reductions in time and cost of product
innovate to survive. Business innovation must occur in changes
all dimensions—product, process, and organization—* Significantly shorter product cycle and lead times
to improve competitiveness and business performance. * Decreased scrap and rework during production
To differentiate themselves, enterprises must capture, * Improved productivity in design engineering
manage, and leverage their intellectual assets. This can
Direct savings include reductions in the time and cost
best be accomplished through proper application of a
to design products, reduced inventory, and better reuse
Product Lifecycle Management (PLM) approach that
of components, shorter time to market (thus earlier
addresses the needs of the extended enterprise. PLM is
time to revenue) with new and enhanced products, and
a strategic business approach that helps enterprises
reductions in the time to locate and access needed
achieve its business goals of reducing costs, improving
information. These and other impacts deliver improved
quality, and shortening time to market, while innovat-
revenues and higher profits, much like other enterprise
ing its products, services, and business operations.
initiatives such as enterprise resource planning (ERP),
CIMdata defines PLM as:
customer relationship management (CRM), and supply
chain management (SCM). With demonstrated top and
A strategic business approach that ap-
bottom line impacts, PLM has become a strategic busi-
plies a consistent set of business solu-
ness initiative equal to, or more important than ERP,
tions in support of the collaborative
CRM, and SCM. For a business to be successful in
creation, management, dissemination,
today’s and tomorrow’s global markets, PLM is not an
and use of product definition informa-
option—it is a competitive necessity.
tion across the extended enterprise from
concept to end of life—integrating peo-
This paper describes key business challenges faced by
ple, processes, business systems, and
today’s global enterprises and how PLM solutions have
information.
evolved to address more and more of the product defi-
nition lifecycle to enable businesses to meet these
By increasing an enterprise’s flexibility and agility to
challenges. Included is a high-level PLM definition,
respond swiftly to changing market pressures and com-
describing its core components, and clarifying what is
petitors, PLM helps companies:
and is not included in a PLM business approach. The
* Deliver more innovative products and services
paper concludes with a further discussion of the busi-
* Reduce costs, improve quality, and shorten time
ness benefits of PLM.
to market, while achieving the targeted return on
investment (ROI)
* Establish more comprehensive, collaborative, and Addressing Business Challenges
improved relationships with their customers,
suppliers, and business partners Businesses today face three on-going challenges:
improving customer intimacy, achieving operational
PLM solutions meld technology, methods, and best
excellence, and providing product leadership. Improv-
practices to address today’s rapidly changing business
ing customer intimacy requires understanding and
environments. PLM is a catalyst for change within a
responding quickly to current and potential customers,
business—an opportunity to improve processes and
their needs, establishing effective relationships with
organizational relationships to create an innovative,
them, and providing consist, long-term customer value.
measurably improved business.
Achieving operational excellence requires enterprises
Once implemented, PLM solutions provide benefits to focus on operating efficiently, effectively, and flexi-
that have demonstrated a positive impact on an enter-bly, working with their partners to reduce the cost and
time necessary to deliver high-quality products that |
