Challenging title MAKING THE CASE FOR PLM Jos Voskuil

With IT and investment budgets tight this session looks at how to asses and communicate the case for PLM PDM vs PLM – the difference between internal and external focus What are the known benefits of PLM but why are they not driving the decision for PLM? How to get PLM on the agenda in a mid-market company. ROI and TCO estimates – are they really driving the decision for PLM The importance of business change as enable for PLM Jos Voskuil, Independent PLM consultant, virtualdutchman.com, Netherlands Jos Voskuil

Learn from those who did it MAKING THE CASE FOR PLM Jos Voskuil

A formal definition Bring products faster to market Less iterations – lower prototype costs Better communication between departments Better collaboration / sourcing with suppliers Lower compliance efforts and costs Select the right potential products Respond better to customer and market demands Innovate – create the opportunity

PLM – the basics Intellectual Property

PLM and ERP - complementary Slide from tech-clarity: closing loop product innovation erp plm

PDM versus PLM – PDM characteristics Product Data Management Boosted by 3D CAD Departmental solution ‘Easy’ to implement

PDM versus PLM – PLM characteristics Product Lifecycle Management IT and Business Strategy Connecting and sharing Requires change  difficult to implement

Making the case for what ? Efficiency Quality Innovation Time to Market …………..

Extended PDM or Innovation oriented ?

Making the case for Efficiency PLM reduces manual processes Visibility of data across the enterprise Reduce errors and design iterations

Making the case for Quality Assure standard processes Work with the right data Integrate requirements Connect field / customer data

Making the case for Innovation Identify opportunities in an early stage Connect to the customer Spend time and energy in early development

Making the case for Time to Market A combination of all

And upcoming cases for PLM….. Knowledge capturing: aging workforce Managing the digital explosion

Summary PLM value drivers are diffuse PLM benefits vary per company (business) So there is no clear:

How should do they do it ? PLM is not just automate how we worked before PLM is not OOTB (out of the box)

The difficulty of bringing a change The majority of PLM projects fail at a certain stage due to: Lack of communication Lack of motivation Lack of adhesion Quote: Gartner Group

Step 1: Build the vision Does the management want the organization to change ? Where do we want to be in 5 years from now ? WHO:The Management You – challenging the management Consultants – helping the you and the management

Step 2: Understand the vision Share and discuss the vision – make it your mantra – make it known inside the company Imagine the implementation of the vision Start collecting proof points (measure) Explore the world (PLM congresses, Social Media, Consultants, PLM vendors, IT trends ) WHO:Management / Middle management PLM champion(s) / Thought Leaders

Step 3: Understand the vision Map the vision to reality: Alignment / Efficiency / Quality Time to market ? Customer centric ? Innovation ? What are the relevant KPIs? Decide on your type of PLM platform WHO: Management / Middle management / IT PLM champion(s) / potential PLM implementation partners / vendors

Can you make the case ? Step 1 to 3 are mandatory steps for success, but …. Now it is time for commitment ! Will there be active executive sponsorship ? Will there be a champion / project team ?

Step 4: Building the commitment – Do’s / Don’ts Do’s : Keep the vision all time in the picture Small steps – give the organization time to adjust Involve the users, but lead the change Communicate and sell internal

Step 4: Building the commitment – Do’s / Don’ts Don’t s: Think PLM is an IT project Think a PLM product feature is a solution Believe customization is solving the change Believe it is easy and in the cloud

Conclusions Define your PLM focus area(s) Build the vision and motivation Realize PLM is change – create the enthusiasm Measure before and after

Questions ? What is your PLM target ? Thank You