There are many readily available references to ERP Selections, CRM Selections and so on… The principles are generally the same for PLM. First and foremost – technical requirements and technical qualifications are not the ONLY criteria by which to judge a system. Neither is price. The canned demonstration is also not the best means to select a system (it’s too easy for vendors to use smoke and mirrors).
Generally when we examine solutions for the customer we make sure the following criteria are included in the analysis and we work with the customer to assess:
Technical Qualification – The technical qualification is still a first qualification and always will be. But the qualification should be based upon a clearly defined requirements matrix that the vendors must show evidence of meeting, making distinctions between out of the box functionality, configurable functionality, and customized functionality. Requirements should be weighted based upon business need and vendors should be evaluated with regards to those needs. Do not use the canned demo as evidence of meeting the requirements. Walk thru every requirement in detail with the vendor showing you exactly how that requirement is met.
Business Standing – How long has the vendor existed, how have they funded growth and development? What percentage of the customers are paying maintenance (i.e remaining current)? If publicly held – what are the analysts saying. Are their customers in the same industry verticals as your company or are the customers similarly modeled as your business? Will the vendor be there for you in 5 years? in 10 years?
Customer Support – How well are the customers supported? How is helpdesk support provided for you as a customer. What forms of training are available? Is there an “active” user community and how is it controlled/supported by the vendor? Are there local groups or readily available forums for end-users, administrators, etc. Are there larger events where training, exchange of experiences, and networking is supported?
Referenceable – Does the vendor have referenceable customers in your business sector or of your business size, using versions of the system you would be considering? When a vendor gives you a reference name it is often an executive who purchased the system, ask to speak with members of the deployment team, and to end users – that is where you will get the real story. How long has that customer been a customer – are they actually in live production use of the system or are they still in the honeymoon of getting the system set up?
Roadmap – Does the vendor’s roadmap provide a path for your company to grow with the vendor as a “partner”- what happens with your data when you “outgrow” the current toolset. Are there modules that scale with your business growth? Does the platform support appropriate technologies to remain current on your overall enterprise infrastructure requirements? How has the vendor demonstrated commitments to past roadmaps?
A system could meet every one of the technical requirements and come up severely lacking in the other criteria and without a thorough examination of all aspects of the relationship you could be throwing good money into a system that will fail due to the non-technical aspects listed above.
Copyright 2007, LRHirr
Hi Laila,
I read you posts in the blog and find it very intresting. I have been assosiated with the PLM for last many years and I found your approach as quite practical. I would like to get in touch with you. Can I have your contact details and email.
Cheers
Sudeep
Comment by sudeep gupta — May 25, 2007 @ 2:41 am |
Hi Laila,
With respect to your article titled “Top level criteria for PLM System Selections”
I would like to know the difference between
.out of the box functionality,
.configurable functionality,
and customized functionality
I have some understanding of the terms however I feel your views would add more clarity to my understanding.
Thanks
Jags
Comment by Jagmeet — January 18, 2008 @ 1:48 am |
Jags
Out of the box – is that… any workflows are with default templates, roles and priviledges, etc are all as defined by the software. Most PLM systems require “configuration” to be put to use however some – aside from creating users could be used literally within minutes (such as Arena Solutions) but the reality is you would likely want to do some setup.
Configurable is where the workflows, business model, data types, forms etc can be set within the application or with an administrative interface. Configurable functionality does not require “code” to be written in order to obtain the functionality. Arena, Agile and Windchill have highly configurable systems.
Customizations are often required when specific business processes must be replicated. Many integrations to other applications will require code development in order to properly transact the integrations. Customizations may or may not be enabled by toolkits. Caution should be used with the customizations to be sure that software upgrades will continue to be supported without significant “rebuilding” of the customizations.
There is actually a forth category as well – rarely mentioned by the vendors – that is the level of hands on work that may be needed to get the system installed or operational. It is advisable to make sure the vendors inform you of the installation procedures for the modules you plan to use. I’ve worked on some systems where to get all of the modules playing well together, one has to edit many many configuration files, parameter files, registry settings, and so on.
I hope that helps.
Comment by Laila Hirr — January 18, 2008 @ 10:14 am |
Thanks Laila that really helps. Appreciate your time.
Comment by Jagmeet — January 21, 2008 @ 6:13 am |
Hi Laila,
For full disclosure, I’ll start by saying that I am currently employed at Arena Solutions (www.arenasolutions.com) — a PLM vendor.
Your list is good, but what about cost of deployment? The up front costs of deployment (money + time) can be daunting, so evaluating how a product fits your current process and time-to-go-live are important for IT departments and product groups to consider.
Comment by christine lieu — July 10, 2008 @ 9:54 am |