Get Savvy about PLM

PTC sent my husband the following Aberdeen report today

The Best Kept Secret of Top SMB Product Developers?

published in July 2008, that confirmed what I see every day in the SMB market and in the SMB perception of PLM. What was interesting was that they concluded that SMB Executives are still struggling with perceptions.

SMB executives under estimate the level of effort associated with implementation yet they largely overestimate the overall cost of PLM. Aberdeen has a very good chart in the report showing the difference between reality and perception.

The best in class SMB’s see a 26.5% improvement in profit margins after deploying PLM showing that definitive ROI is available. To be that successful, the execution of planned implementation, out of the box systems, and conscious adaptation of business practices all being spearheaded with executive buy-in is critical. But even the “average” SMB implementation of PLM is yielding an 18.5% improvement in their profit margins.

What is heartening to me is that Aberdeen confirmed that the PACE framework that I’ve adhered to for years, is the primary means for a successful PLM implementation, namely
- Executive goal setting/workshop
- Requirements gathered from across the enterprise (not just engineering)
- Prioritize PLM plan to address top pain points
- Executives remain involved throughout process
- Address business process mapping prior to implementation
- Measure/track estimated deployment costs to actuals
- Establish success criteria prior to implementation

Thank you Aberdeen for providing one of the best business based perspectives on PLM I’ve seen in a long time.