CIMdata PLM Industry Summary Online Archive
19 December 2005
Company News
5 Critical Considerations for Midsized Company PLM Success
Aras Corporation provided expert insight to help midsized companies develop a Product Lifecycle Management [PLM] strategy for success and achieve business results that deliver a competitive advantage in the marketplace.
Midsized business whether independent companies or divisions of larger enterprises face an ever increasing combination of challenges in today's fiercely competitive markets. More demanding customers, new compliance requirements, and global outsourced manufacturing are creating significant complexity during product development. Midsized business executives realize that in order to survive they must automate the product development process to achieve:
· Greater new product innovation to fuel future revenue growth,
· Enhanced collaboration to shorten development cycles, and
· Better coordination at product launch to ensure quality and new product margins.
To these executive the need for a PLM solution is clear however, the critical considerations in deploying a PLM solution are often not as obvious, and while the need for PLM within midsized businesses has grown, conventional PLM systems remain prohibitively expensive and require endless consulting to implement and maintain. Midsized business executives are increasingly looking for cost effective alternatives and seeking guidance on PLM strategy best practices.
"We recognize the benefits CMII delivers for our customers and are pleased to have achieved certification," said Peter Schroer, President of Aras Corporation. "Aras has embraced the CMII model as the basis of our configuration and change management strategy within our solutions because the CMII practices are time-tested and proven effective."
Aras asserts that there are practical strategies to realize the benefits of PLM software that include:
Focus on the Business - Achieving alignment with strategic business priorities is essential. It is important for a midsized company to concentrate on a critical business process that must be fixed or improved to compete effectively, such as customer program management or new product quality planning. PLM is a category of software that can support a variety of business initiatives, and midsized companies must align a PLM project with strategic business drivers to accomplish meaningful results.
"One Size" Does Not Fit All - The ability to develop new products is more often than not part of a company's core competency and the process is integral to satisfying customers. In fact, within midsized companies the range of different approaches to product development and the level of process complexity vary dramatically. The diverse nature of product development processes makes it impossible for a preconfigured system or an unchangeable on-demand offering to support most midsized companies without sacrificing their ability to compete.
Ensure Ability to Adapt - Business conditions are increasingly dynamic and midsized companies are often faced with the need to adapt to survive. Challenging new customer requirements, unanticipated competition, additional compliance mandates, and global outsourcing needs all change constantly and sometimes simultaneously. A midsized company's PLM solution must be flexible in order to enable the business to adapt quickly to changes in the market and to turn threatening circumstances into strategic opportunities.
Plan for the Future - Midsized businesses should consider the strategic direction of the company and map out an incremental plan that will support the future. A project roadmap should identify manageable PLM project phases that will speed results and deliver benefits at each stage. By understanding and taking into account the future needs of the business a PLM solution project will ensure proper alignment with key initiatives and goals.
Long Term Ownership Cost - The Total Cost of Ownership [TCO] for a PLM solution is an important consideration for any midsized company. The initial cost of licenses is only the first in a series of expenses that include deployment-related expenses (including integrations and data migration), recurring fees (maintenance or subscription), personnel & infrastructure, and the often overlooked cost of solution scope. Midsized companies need to seriously consider the breadth of a solution's functionality scope when calculating ownership cost. Limited business functionality in a PLM solution can translate into the need for additional application expenses and unanticipated systems integration fees.
"Aras understands that midsized businesses need practical, affordable PLM solutions that help them compete effectively," said Peter Schroer, President of Aras Corporation. "We recognize the difference that these key considerations make in a PLM strategy and ensure that our business ready solutions are designed to support customers' continued success."
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