Product Lifecycle Management (PLM)
Software Implementation – An Alternative Way… anything but an IT project
A few facts…
- Products are the lifeblood of all companies
- We now operate in a global market
- Our desires as consumers are remarkably similar, despite geographic location and culture
- You do not buy things in the same way your parents did
- Your children are not going to buy things in the same way you are
- Today’s consumer demands innovation and continual product progression
Execution
As a company you will have already decided your strategy. Innovator, recognised brand leader, happy to reap the rewards of copying with pride, whatever the strategy clean execution makes the difference.
There is a need to link processes and tools creatively around innovation, brand development and product delivery to achieve that clean execution. This can be defined as; generating the required speed, flexibility and cost of getting the right product, in the right market at the right time consistently. Of course companies that do this survive all market conditions.
We see more examples now of products that generate such desire they transcend all normal classifications (social class, age, sex, geographic location, etc) e.g. mobile phones, flat screen TV’s, laptops, MP3 players. These products can be applied globally with alarming speed.
Those who find ways to combine entrepreneurial intelligence with the obvious benefits of standardisation will be the winners. Creating a dynamic chain reaction which balances creativity with the structure and discipline required for clean and cost effective execution within a network that can operate globally, is the new utopia.
Weak Points
PLM software tools focus on making product delivery efficient. They are a mirror of your process that cries out loud when something is not happening correctly! Doing this makes it very visible where the weak points are in the chain:
- Product portfolio planning?
- Strategic business planning process?
- Communication of direction?
- Innovation process?
- Brand development?
- Project management?
- R&D?
- Marketing?
- Supply chain?
- Sales?
- In market execution?
Practically it is usually a combination of several of the above coupled with business legacy issues such as data integrity, roles & responsibilities, skills and capabilities and organisational reporting lines.
Building Blocks
The building blocks of implementing a PLM software tool are specific:
- Capture best practice
- Provide a knowledge backbone
- Enable global collaboration
- Improve project visibility
Benefits
The benefits are an enabler to the delivery of hard financials that come from:
- Sales through faster and right first time NPD
- Margin through standardisation, quality, control and global sourcing
- Strategy through supporting a networked organisation that allows rapid roll out of best practice and product knowledge
- Risk management through improved legal and customer compliance
If you treat PLM implementation as an IT project, you will go through the upheaval of a software implementation to give people a fantastic tool, that after launch becomes a frustration because it serves to highlight many of the things people already know are wrong.
Surely, a better way is to focus on what PLM is to your business first?
Examine PLM in the context of what the business is trying to deliver and why?
3 keys stages
The diagram below shows PLM within the 3 keys stages of product planning.
Our Approach
Our approach integrates business planning and strategic direction with innovation as the essential feeds into the PLM software which becomes the efficient delivery mechanism. Without doing this you will create a very fast and transparent way of delivering garbage.
Partnering the stage and gate process with key project management tools bridges a gap that so often exists in NPD project delivery where the temptation to “JFDI” pushes people away from process and usually ends up taking longer!
This process is flexible enough to cover pure NPD, margin improvement projects, extensions, brand re-energising or a simple label change. Of course to complete the cycle you have to know what you are going to do with it next and moving back to the product portfolio plan and business plan provides that direction.
This is underpinned with a behavioural change programme focusing on key roles and responsibilities that are required to drive this model:
- New Activities Filter
- Project Board
- Project Leaders / Managers
- Functional Heads
- Project Team Members (cross functional)
Engaging people in behavioural change early has had a dramatic effect on adoption of the new process, model and software. In fact at the point of software go live we have experienced 100% adoption rates because the IT becomes the last piece in the puzzle.
Is PLM an IT project? Not in our experience.
For more information and or to discuss your PLM implementation call Nina on 07837 536979
Uchenna Nwakanma
said on June 26, 2009
PLM is absolutely fantastic!It is where every modern innovative company should be.
Uche (PZ Cussons).
Mickey Ryan
said on June 29, 2009
Even before we started the implementation of the PLM system 2 years ago, we were talking about it being more than “just an IT solution”. Since then, our experiences have shown how important this approach has been.
By engaging at an early stage and asking people to challenge their own behaviours, we have been able to tap into the excitement of Operating Units who are new to the Stage & Gate process. We have also been able to build upon, and learn from, the experiences and knowledge of Units who have already established Stage & Gate within their NPD process.
Using this as a base, the benefits of the software such as automation and improved visibility, speak for themselves.
efth
said on June 29, 2009
Globalization can be felt in all markets nowadays. Consumers are spoiled for choice, quality and price.
What people need is simple despite their age, sex and culture!
• A product that satisfy their needs!
• A product at the correct price!
• A product that is always available!
• A good quality product!
What should businesses do then in order satisfy them?
Maybe also do their processes simple in order to be efficient and cost effective, have always products available – ubiquitously and support their cause with good quality which can make them recognizable and respectable.
PLM looks like a good size mirror that can reflect the processes of any size business and show them in real time what they should do in order to become better.
anything but an IT Project….!
Indeed, plm is more like a spirit trying to find a body in order to come to life. If one is missing nothing works though..
Sandy
said on June 30, 2009
The benefits we gained from PLM is tremendous, with the introduction of Stage/Gate and Project Structure has transformed the business process into a more mature and professional operation unit. It also encourages a better cross functional team work through the value chain and enhance the approach in sharing and accessing to information.
Surely there will be numbers of business challenges through PLM journey… it takes courage from everyone but it’s so worthful to give a try.
Rotimi Jamodu
said on June 30, 2009
“Anything but an IT project” is absolutely spot on. Any PLM software is simply a tool. It needs to be supported with the right business processes and behaviours for it to be effective. Therefore, the business has to take a critical look at itself to see if its processes are ‘right’.
It is a bit like trying to play a guitar without knowing how to write music. You can learn a few chords by listening, imitation and practice, but it’ll will be difficult to create your own.
The engagement of people mentioned not only helps understanding and uptake, but also creates ownership and buy in which drives the positive change.
Niyi
said on June 30, 2009
Funny thing is i never really understood the whole picture until i became a part of the PLM team chosen to spread the good word of PLM.
imagine me with leather sandals, bushy beard and crazed eyes screaming at the top of my lungs “Prepare thyself for the future can only be bright with PLM”
Its ‘anything but an IT Project’, dont need to be a seer to see the change thats happening in Nigeria. Over the last few months, the approach to even the understanding of the process has been tremendous.
Parting word, just finished a meeting with the just nominated PLM champions and they chose amongst themselves the following; a coordinator(who is not a superuser), timing for their monthly meetings and a revolving minute taker….my job is just keep on stoking the fire. Since this is a blog, i’ll end with ‘One Love’
Happy Cloud
said on June 30, 2009
Don’t know who had the idea to start PLM, but I’d like to meet him/her. What vision!
Cheeky Monkey and the super users are the real stars, though. It takes guts, determination and staying power to help people see a better way and to make it stick. They have taken the water to the horse and drank the damn stuff if needs be. Thanks guys. One Love!
Margaret
said on June 30, 2009
To keep a company at the top of the list or take a company to the top of the list,the importance of PLM can not be overemphasized.To think that PLM brings together New Product Development, Product Portfolio Planning, Innovation and a host of other effective and rewarding business policies together, on the same platform is definitely something to think about.
Anything but an IT Project- makes me think of all business inadequacies that will be made visible for everyone to see if PLM is handled like an IT Project.
I actually see PLM as an ideal business culture(way of life).
Denise
said on July 1, 2009
There is nothing as inspirational as intelligence combined with common sense.
James
said on July 1, 2009
PLM is a fantastic methodology that supports delivery of great NPD in a manner that ensures best practice is followed around the business.
Just be wary of your system provider & the promises made by them. Ensure requirements, timelines & budgets are clearly defined…..
Craig
said on July 2, 2009
The engagement of NPD teams and Senior Management in PLM enabling the change aspects has been a huge positive and has helped the implementations enormously. The recognition from all levels of the business in the benefits that come from visibity and sharing of key information and the discipline PLM brings, makes the effort of implementation worthwhile. My favourite feedback from users goes along the lines of ‘wow I can get that information easily and can trust it’ – always great to hear. Definitely not an IT Project … the Super User team – not an ‘IT bod’ in sight!
Jim Botimer
said on December 17, 2009
Hi All,
PLM folks : WE ARE THE SECRET THAT MAKES EVERY PRODUCT AND WE ARE EXPANDING OUR SECRET SOCIETY
Have a good laugh: check this fun man-on-the-street video where real passersby are interviewed about PLM and its newest flavor PLM 2.0
http://www.youtube.com/watch?v=3bMVzTDP8c0