For many years, manufacturing firms have used PLM (Product Lifecycle Management) to drive strategic benefits ranging from top-line growth to bottom-line savings. A recent survey of 200 manufacturers conducted by Tech-Clarity and PTC, however, shows that the level of business improvement that manufacturers achieve from their PLM programs varies widely. In this context, one of the most important findings of the study is that the top performing companies are much more likely to embrace PLM across a broader range of organizational functions and processes. In other words, the more that companies use PLM the greater value they achieve. This is true in three different aspects of PLM implementations: • Process: Business processes implemented • People: Departments adopting the solution • Time: How long the technology has been in place

1. Global Services Insights
Broader Scope PLM Yields
Greater Business Value
For many years, manufacturing firms have used PLM (Product Lifecycle Management)
to drive strategic benefits ranging from top-line growth to bottom-line savings. A
Figure 1: Business Processes
recent survey of 200 manufacturers conducted by Tech-Clarity and PTC, however,
Implemented with PLM
shows that the level of business improvement that manufacturers achieve from their
PLM programs varies widely.
5.3
In this context, one of the most important findings of the study is that the top
performing companies are much more likely to embrace PLM across a broader range 4.5
of organizational functions and processes. In other words, the more that companies
use PLM the greater value they achieve.
This is true in three different aspects of PLM implementations:
• Process: Business processes implemented
• People: Departments adopting the solution
• Time: How long the technology has been in place
Process
The survey asked companies how many major business processes are implemented in
their PLM solution (e.g., engineering change management, manufacturing planning,
and so on). As shown in Figure 1, the higher performing companies have used PLM to
automate more processes, indicating they are using PLM to add value in more ways.
Specific processes that the top performers cited more frequently include quality planning Average
High
and project/portfolio management. This suggests that top performers are addressing and Lower
Performing
Performing
strategic business processes across the enterprise in addition to improving core product Companies
Companies
development capabilities.
About the Research:
PTC Global Services and Tech Clarity, an analyst firm that specializes in product life cycle management, interviewed 190 senior business and IT leaders in April
2012 about their experiences with PLM. The goal of the telephone survey was to understand key success factors in planning, implementing, and adopting PLM solu-
tions in complex manufacturing environments.
The survey highlighted four issues: PLM strategy and approach, programmatic challenges, implementation and adoption techniques, and adoption. Survey partici-
pants included representatives of a wide range of manufacturing companies across Europe and North America, including automotive, aerospace, industrial, and
consumer products.
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2. PLM has clearly expanded from the core foundation of managing product
data, enabling manufacturers to achieve more value across the business. Figure 2: Tech-Clarity’s Four
Tech-Clarity’s “four dimensions of PLM expansion” shows how the scope Dimensions of PLM Expansion
of PLM is expanding to include more people, a more extensive scope of
the product lifecycle, a richer view of the product, and more business
processes (Figure 2).
For example, PLM has grown to support processes such as environ-
mental product compliance and service management. At the same time,
PLM systems often now integrate a more complete view of the product,
including commercial information and manufacturing data in addition to
technical specifications. This provides more opportunity to expand adop-
tion and capture the value identified by the survey.
People Figure 3: Departments Adopting PLM
Given the expanding potential of PLM, perhaps it is no surprise that the
survey documented similar results regarding the range of people and
departments across the business using PLM. Specifically the survey shows
4.4
that the high performing companies have extended PLM to more parts of
their business than the others (Figure 3).
Additional departments cited more frequently by the high performers
3.1
include non-Engineering departments such as Sales & Marketing, Quality,
and General Management. PLM implementations clearly provide more
High Average
value when extended outside of the Engineering department. Performing and Lower
Companies Performing
Companies
Time Figure 4: Length of Time PLM Adopted
Finally, the higher performing companies have been using PLM for a
longer period of time. In fact, approximately three-quarters of the high
performing companies had PLM in place for more than 2 years compared
with only 38% of the other companies (Figure 4). PLM can offer a rela-
0 1 2 3 4
tively rapid ROI, but as companies expand PLM to more processes and
departments over time they gain greater value. 0-2 Years
24%
62%
2-4 Years
39%
22% 4+ Years
37%
16%
High Average
Performing and Lower
Companies Performing
Companies
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3. Why are these findings important? The study shows that beyond the
initial value manufacturers gain from implementing PLM they can “go
back to the well” multiple times to get more value. PLM is a strategic
investment with long-term potential to drive year-over-year improve-
ments through greater adoption.
The fact that greater PLM adoption provides greater value should
encourage manufacturing companies that are looking for new ways to
improve their business. Once their PLM foundation is in place, manufac-
turers can continue to expand the scope of their PLM program to improve
their business for years, not just on a one-time implementation basis.
The data are also important for those embarking on a PLM implemen-
tation. This research should help them recognize that a strategy to get
the basics of PLM in place, achieve an initial ROI, and then build on that
foundation is a sound approach. Companies sometimes get distracted
by trying to do too much too quickly with PLM. Instead, an incremental
approach provides tangible business value within a short time frame
(e.g., a year or two), and then can grow from there.
The new research provides great insight into how leading manufac-
turers get the most out of their PLM implementations. The findings on
broader scope PLM, along with earlier Tech-Clarity research, are clear:
• PLM offers significant top-line and bottom-line business benefits
• PLM offers a variety of ways to improve product development
performance and continues to expand
• Companies that want to gain more business value from PLM should
expand the adoption of PLM to more business processes and
departments over time
• Companies can gain business value from implementing PLM and
then expand on that infrastructure to extend their ROI, even expecting
higher ROI on subsequent implementations as they leverage their
early investments
About PTC Global Services
The 1400 professionals at PTC Global Services help the world’s leading
manufacturing companies gain product and service advantage through
solution strategy and design, process transformation, technology
configuration, and organizational training and adoption. Our in-house
experts and premium services partners work overtime to ensure the
best possible results and maximum return on investment. Learn more at
P TC .c o m /c o n s u l t i n g.
For more Insights from the Global Services team, please visit
b l o g s .p t c .c o m /c a t e g o r y/s t r a t e g y/. Or scan this code with your
mobile device.
About the Author
© 2012, Parametric Technology Corporation (PTC). All rights reserved.
Jim Brown is the founder and President of indepen- Information concerning the benefits and results obtained by customers
using PTC solutions is based upon the particular user’s experience and
dent research firm Tech-Clarity. Jim is a recognized testimonial, is furnished for informational use only, and should not be
expert in software solutions for manufacturers, with over 20 years of expe- construed as a guarantee or commitment by PTC. Due to the varying
rience in application software, management consulting, and research. degree of complexity of our customers’ products and/or their design
processes, typical or generally expected results are not available. PTC, the
He has broad knowledge on applying Product Lifecycle Management PTC logo and all PTC product names and logos are trademarks or regis-
(PLM), social computing, Supply Chain Management (SCM), ERP, compli- tered trademarks of PTC and/or its subsidiaries in the United States and in
ance, quality, service management, and other enterprise applications to other countries. All other product or company names are property of their
respective owners.
improve business performance. For more information on Jim and Tech-
Clarity, visit w w w.tech-clarity.com. J0456–Broader–Scope–PLM–Insights–EN–0712
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