CIMdata PLM Industry Summary Online Archive
14 March 2007
CIMdata News
A New CIMdata Whitepaper-PLM Selection and a Company's Business Model: Selecting the Most Appropriate PLM Solution"
CIMdata consulting and research firm announces the availability of a recently published White Paper entitled "PLM Selection and a Company's Business Model: Selecting the Most Appropriate PLM Solution". This paper provides an analysis of one of the significant challenges faced by companies in the fabrication and assembly (F&A) industrial segments as they prepare to launch a Product Lifecycle Management (PLM) program. The challenge lies in determining what role their Enterprise Resource Planning (ERP) system should play in enabling PLM. Peter Bilello, Director of Consulting Services at CIMdata clarified, "The issue for these organizations has less to do with whether to implement PLM or not, but rather how and through which enterprise solution. Should they go with a PLM-focused application, an ERP application's view of PLM, or a combination of both?"
Mr. Bilello explained that PLM and ERP technologies have emerged from different parts of industry and different parts of the value chain. "This PLM-ERP issue gains visibility when organizations understand both the "information infrastructure" role of PLM, as well as the overlap and conflict with functionalities that are also supported within ERP systems." Mr. Bilello added, "In coordinating product production activities, the use of ERP systems is necessary to run competitive manufacturing operations. On the engineering side, PLM solutions speed the flow of work and information throughout the product definition lifecycle. The basic objectives of these initiatives are not in question. But the issue lies in how to best utilize their capabilities, and the money already invested to support the organization."
Based on CIMdata's research and experience, there is not a single answer to satisfy all situations. "There are multiple approaches to address the PLM-ERP issue. The ones that have been most successful, and there are many, have focused on the true value-added or core competence of the enterprise in question. In this case, what are the core competencies of F&A companies, and how can PLM and ERP solutions best enable a successful PLM strategy." said Mr. Bilello.
Copies of the "PLM Selection and a Company's Business Model: Selecting the Most Appropriate PLM Solution" White Paper are available at no cost through the CIMdata website.
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