Product Lifecycle

Management
“Empowering the Future of Business”

A CIMdata Report
 Product Lifecycle Management
“Empowering the Future of Business”

Introduction prise’s top and bottom lines. PLM solutions can

improve business efficiency by providing:
In today’s challenging global market, enterprises must • Dramatic reductions in time and cost of product
innovate to survive. Business innovation must occur in changes
all dimensions—product, process, and organization— • Significantly shorter product cycle and lead times
to improve competitiveness and business performance. • Decreased scrap and rework during production
To differentiate themselves, enterprises must capture, • Improved productivity in design engineering
manage, and leverage their intellectual assets. This can Direct savings include reductions in the time and cost
best be accomplished through proper application of a to design products, reduced inventory, and better reuse
Product Lifecycle Management (PLM) approach that of components, shorter time to market (thus earlier
addresses the needs of the extended enterprise. PLM is time to revenue) with new and enhanced products, and
a strategic business approach that helps enterprises reductions in the time to locate and access needed
achieve its business goals of reducing costs, improving information. These and other impacts deliver improved
quality, and shortening time to market, while innovat- revenues and higher profits, much like other enterprise
ing its products, services, and business operations. initiatives such as enterprise resource planning (ERP),
CIMdata defines PLM as:
customer relationship management (CRM), and supply
A strategic business approach that ap- chain management (SCM). With demonstrated top and
plies a consistent set of business solu- bottom line impacts, PLM has become a strategic busi-
tions in support of the collaborative ness initiative equal to, or more important than ERP,
creation, management, dissemination, CRM, and SCM. For a business to be successful in
and use of product definition informa- today’s and tomorrow’s global markets, PLM is not an
tion across the extended enterprise from option—it is a competitive necessity.
concept to end of life—integrating peo- This paper describes key business challenges faced by
ple, processes, business systems, and today’s global enterprises and how PLM solutions have
information. evolved to address more and more of the product defi-
By increasing an enterprise’s flexibility and agility to nition lifecycle to enable businesses to meet these
respond swiftly to changing market pressures and com- challenges. Included is a high-level PLM definition,
petitors, PLM helps companies: describing its core components, and clarifying what is
and is not included in a PLM business approach. The
• Deliver more innovative products and services
paper concludes with a further discussion of the busi-
• Reduce costs, improve quality, and shorten time
ness benefits of PLM.
to market, while achieving the targeted return on
investment (ROI)
• Establish more comprehensive, collaborative, and Addressing Business Challenges
improved relationships with their customers,
suppliers, and business partners Businesses today face three on-going challenges:
PLM solutions meld technology, methods, and best improving customer intimacy, achieving operational
practices to address today’s rapidly changing business excellence, and providing product leadership. Improv-
environments. PLM is a catalyst for change within a ing customer intimacy requires understanding and
business—an opportunity to improve processes and responding quickly to current and potential customers,
organizational relationships to create an innovative, their needs, establishing effective relationships with
measurably improved business. them, and providing consist, long-term customer value.
Achieving operational excellence requires enterprises
Once implemented, PLM solutions provide benefits to focus on operating efficiently, effectively, and flexi-
that have demonstrated a positive impact on an enter- bly, working with their partners to reduce the cost and
time necessary to deliver high-quality products that

Product Lifecycle Management Copyright © 2002 by CIMdata, Inc Page 1

meet their customer’s requirements in a timely manner. ship companies must continue to enter new markets
Providing product leadership means delivering leading- with innovative products. This requires leveraging and
edge products and solutions tailored to customer needs. reusing the product-related intellectual capital created
All of these challenges require getting the right prod- by business partners working together across the
ucts to the right market, at the right time, for the right extended enterprise value chain.
cost.
Globalization is an overarching reality that spans each
To meet these challenges, businesses must become of these business drivers. To be successful in global
more innovative. However, being an innovative busi- markets, organizations must develop and apply a
ness doesn’t simply mean creating innovative products. diverse set of skills and business processes. Global
It also means improving the processes a company uses enterprises must:
to produce its products and how it supports its products • Make effective use of a widely-distributed
using innovative approaches to the complete product worldwide organization, creating a virtual value
lifecycle. Today, innovation is recognized as critical chain with no time, distance, or organizational
for a business to maintain its competitiveness in the boundaries
marketplace. However, innovation must be achieved • Ensure that corporate acquisitions and mergers
while reducing overall product-related costs across work together
development, production, and service. • Create and enable virtual product teams
composed of people that are spread around the
A primary business driver is increasing product com- world
plexity and customization. Not only are mechanical • Leverage the intellectual assets in these dispersed
configurations getting more intricate, products teams and organizations
increasingly include complex electronics and software. • Enable 24 x 7 development and product support
In addition, customers want to have “their” product or using global teams
plant configured to their individual specifications. The
increase in product complexity, coupled with the desire These drivers are putting increasing pressure on
for personalized configurations, requires an enhanced organizations to invest in solutions that include tech-
ability to quickly define new product variations and nologies, methodologies, best practices that can help
options, and to be able to manage the configurations them improve their ability to focus on product innova-
being offered. Additionally, companies must manage tion, leverage business partners, and compete more
the “entire” product or product family, integrating ele- effectively in the global market place.
ments such as product recipes and packaging to meet
The next section describes how the terminology and
regional requirements and regulations.
technology of PLM evolved to address these vital busi-
In the past decade, many business investments, such as ness issues.
ERP, addressed improving operational efficiency.
Those investments continue today with an expanded
focus on using product definition information more
The Evolution of PLM
effectively in both production and operation of a prod- The term “product lifecycle management” emerged
uct or plant in service. Effectively leveraging supply after nearly twenty years of market and technological
chain partners for both design and production effi- evolution. In the mid 1980’s to early 1990’s, there was
ciency continues to grow in importance in achieving confusion as to what to call product-related informa-
operational excellence. tion, particularly engineering information. As the data
came to be referred to generically as product data, the
Achieving product leadership focuses on revenue gen-
term product data management (PDM) emerged.
eration from a steady stream of innovative, new prod-
CIMdata heavily promoted both the term and the nas-
ucts. Today, enterprises must bring innovative products
cent industry through publications and educational
to market more effectively and more quickly to maxi-
events. Both users and solution providers embraced
mize customer interest and sales. The pressures to
PDM and used the term for many years. In fact, PDM
reduce time, improve product quality, and lower costs
remains a foundation component of PLM. Over the last
haven’t gone away; they are being reaffirmed and
several years, more acronyms created confusion in the
folded into programs that focus on delivering the
market, as people began to consider the product lifecy-
“right” product. To continue to expand, product leader-
cle and collaboration—PDM, cPDm, CPC. These terms

Page 2 Copyright © 2002 by CIMdata, Inc. Product Lifecycle Management

overlap and carry multiple meanings. PLM has As part of this evolution, the view or definition of the
emerged as the term used to describe a business “product lifecycle” has also changed. Fifteen years ago,
approach for the creation, management, and use of the “lifecycle” focused on the design engineering
product-associated intellectual capital and information activity, as the tools concentrated on CAD data man-
throughout the lifecycle. agement. In the late 1980’s, that perspective began to
expand to include workflow and processes across the
PLM has evolved in much more than terminology. product lifecycle, i.e., to share information and proc-
There has been a continuous evolution of what PLM esses between different design activities.
represents, as illustrated in the figure below. Fifteen
years ago, custom implementations focused on precise In recent years, when organizations invested in PDM
applications wrapped around primarily engineering and early PLM, the buyers were typically mid-level
design data. In the late 1980’s, the major emphasis was managers, or occasionally, some high-level managers
on how to manage engineering drawings, with limited in IT, engineering, manufacturing, or other functional
solutions primarily sold to managers in engineering groups. Because of its expanding scope and impact on
departments. the extended enterprise, today’s PLM solutions are
viewed as enterprise solutions,
strategic to improved business
performance. Strategic business
investment decisions, regardless
Increasing Business Value

Business Solutions of size, are being reviewed and

Innovation
Focus - The Bottom Line
approved by C-level management,
by—CIOs, CTOs, CFOs, and
Time-to-Market Business Applications even CEOs. Other senior execu-
Focus - Processes
tives, such as senior vice presi-
Toolkits and Generic Applications
dents of major business units or
Quality functional groups (e.g., engineer-
Focus - Functions
ing and manufacturing) may also
Custom Implementations Cost be involved. For senior managers,
Focus - Data and Technology their investments must be focused
on solving specific business
problems, leveraging other op-
1985 1990 1995 2002+
portunities, and taking advantage
The Evolution of PLM of previous investments within
their organizations.
Custom implementations evolved to tool kits and Now that PLM has emerged as an enterprise solution, it
generic applications that automated some typical func- is important to understand how PLM fits with other
tions. As the solution providers gained experience enterprise solutions that manage product information
implementing their tools in different industries, their and operations. The next section describes this rela-
offerings evolved into delivering focused business tionship in more detail.
applications. These applications provided standard data
models, predefined workflow templates, and other
functions necessary to solve some business problems. The Role of PLM
Today, the focus is on complete business solutions that
address top and bottom line issues. These solutions Precisely what product-related lifecycles are companies
incorporate best practices to allow organizations to seeking to manage with today’s PLM solutions?
migrate their business processes toward de facto CIMdata defines the overall product lifecycle as com-
industry standards. This evolution has changed not prised of three major, interacting lifecycles:
only the level of managers that buy these solutions; it • Product Definition
has changed the issues that are driving these • Production Definition
investments and, more importantly, it has changed the • Operational Support
manner in which these solutions are acquired and
implemented.

Product Lifecycle Management Copyright © 2002 by CIMdata, Inc Page 3

 out the extended enterprise, includ-
ing suppliers, business partners, and
customers. In the early 1980’s, in-
dustrial companies began to look at
Product Definition Lifecycle
Intellectual Assets information, their intellectual capi-
tal, as an asset and, therefore, value
Product Production Lifecycle
Physical Assets
it. PLM is a continuation of that
theme because enterprises now rec-
Operations Support Lifecycle
Resources
ognize that the product definition
itself is a tremendous intellectual
Major Enterprise Lifecycles asset to their business.

It is important to understand the scope of these within The second lifecycle, product pro-
the context of the entire product lifecycle. Within any duction, focuses on the deliverable product—typically
industrial enterprise, the overall product lifecycle is a physical asset such as a car, toy, appliance, airplane,
comprised of these three primary and tightly inter- or plant. This lifecycle includes all activities associated
twined processes as illustrated in the above figure. with production and distribution of the product. ERP
Each lifecycle encompasses the processes, information, systems are the primary enterprise application that
business systems, and people involved in delivering the addresses product production, focusing on how to pro-
related business functions. duce, manufacture, handle inventory, and ship.

In the PLM context, the primary of these is the product The third major process is the operations support life-
definition lifecycle—the creation and management of cycle. This focuses on managing the enterprise’s core
intellectual assets. As with the overall product lifecy- resources, i.e., its people, finances, and other resources
cle, this lifecycle begins at the earliest point of cus- required to support the enterprise.
tomer requirements and product concept, and extends For an enterprise to succeed, there must be close coor-
until the product is obsolete and field support has dination and communication among all three lifecycles.
ceased. It includes the definition of the complete prod- A close and collaborative effort is required to create the
uct, from mechanical and electronic components, to seamless product lifecycle needed to bring innovative
software and documentation. products to market effectively. The enterprise faces
several challenges:
• Developing an improved focus on product
development and definition, learning to best
capitalize on its intellectual assets
• Enabling integration among its people and
organizations and create collaboration across the
three lifecycles
• Effectively sharing product definition information
throughout the extended enterprise throughout the
Product Definition = The Intellectual Product life of the product or plant
• Seamlessly integrating with its suppliers to make
Product definition is not just the upfront engineering them a logical extension of the enterprise for
design. It also includes the entire set of information maximum collaboration and innovation
that defines how the product is designed, manufac-
Management of the product definition lifecycle and its
tured, operated, or used, serviced, and then retired and
close integration with other major lifecycles is not a
dismantled when it becomes obsolete. This product
new concept. In fact, it has been around for many
definition is continually updated throughout the entire
years. Over the last several years, industry’s ability to
lifecycle. Product definition is an intellectual property
achieve this concept has improved dramatically with
of a business; an intellectual asset that must be created,
the availability of a wide range of new technologies
captured, maintained, and leveraged. To make the
and approaches that facilitate collaborative work
problem more difficult, this information resides not just
efforts across extended enterprises.
within an individual business entity, but also through-

Page 4 Copyright © 2002 by CIMdata, Inc. Product Lifecycle Management

Defining PLM tems, and logistics warehouses. Other “products”
include bridges, highways, and other civil engineering
CIMdata defines PLM as: projects. Organizations across many industrial sectors
have successfully used PLM solutions to manage prod-
• A strategic business approach that applies a
uct information across the lifecycle for all of these
consistent set of business solutions that support
the collaborative creation, management, “products.”
dissemination, and use of product definition In the 1990’s, this lifecycle view expanded from man-
information aging primarily the mechanical elements of a product’s
• Supporting the extended enterprise (customers, definition to include the electronics and software ele-
design and supply partners, etc.) ments that have become a greater portion of many
• Spanning from concept to end of life of a product products. That expansion continued to push the per-
or plant
ception of what “design” encompassed. PLM includes
• Integrating people, processes, business systems, management of all product-related information from
and information
requirements, through design, manufacturing, and
It is important to note that PLM is not a definition of a deployment. This information ranges from marketing
piece, or pieces, of technology. It is a definition of a requirements, product specifications, and test instruc-
business approach to solving the problem of managing tions and data, to the as-maintained configuration data
the complete set of product definition information— from the field. The PLM solution links information
creating that information, managing it through its life, from many different authoring tools and other systems
and disseminating and using it throughout the lifecycle to the evolving product configuration. At the same
of the product. PLM is not just a technology, but is an time, the lifecycle began to include production-focused
approach in which processes are as important, or more attributes and information.
important than data. It is critical to note that PLM is as
concerned with “how a business works” as with “what Today, PLM encompasses significant areas of process.
is being created.” It’s not just program and project management proc-
esses. It is also the processes required to manufacture
Three core or fundamental concepts of PLM are: the product or plant, operate it in the field, and dispose
or decommission it at the end of its useful life. PLM
1. Universal, secure, managed access and use of
product definition information solutions help define, execute, measure, and manage
2. Maintaining the integrity of that product key product-related business processes. Manufacturing
definition and related information throughout and operational process plans are also now viewed as
the life of the product or plant an inherent part of PLM. Processes, and the workflow
3. Managing and maintaining business processes engines that control them, ensure complete digital
used to create, manage, disseminate, share and feedback to both users and other business systems
use the information. throughout each lifecycle stage.

While information includes all media (electronic and CIMdata’s world-class PLM model, shown in the fig-
hardcopy), PLM is primarily about managing the digi- ure below, describes the technology, management, and
tal representation of that information. process components of an enterprise PLM solution.
Across the bottom of the model are technology foun-
Based on user experience over the years, PLM solu- dation components that are an integral part of any PLM
tions can support a broad range of “products.” Exam- solution. Solution providers use these foundation ele-
ples of “products” include manufactured products, such ments to construct core functions, such as design auto-
as automobiles, computers, refrigerators, mobile mation (e.g., the authoring and analysis tools and proc-
phones, toys, and airplanes. Many products today also esses used to create, simulate and analyze a product or
contain software, firmware, and electronic components plant), product structures and Bills of Materials, work-
whose data must be managed. Some organizations have flow and process management, and information and
long-lived assets that need to be managed such as util- content management and vaulting. These core func-
ity distribution networks, e.g., power, telecommunica- tions are inherent capabilities contained within PLM
tions, water, gas, and cable TV, or facilities like plants, solutions.
drilling rigs, buildings, airports, harbors, railway sys-

Product Lifecycle Management Copyright © 2002 by CIMdata, Inc Page 5

 Requirements (functional,
performance, quality, cost, physical
factors, interoperability, time, etc.)
Product and project portfolios and
product families
Assets, e.g., plant machinery and
facilities, production line equipment
In-service information supporting
service after sales
• Program and project management
• Visualization and collaboration
• Component supplier management
• Digital manufacturing
• Product definition information authoring
• Product analysis, validation, and
simulation
• Technical publications such as:
Service manuals
CIMdata’s World-Class PLM Model User guides
Assembly instructions
Note that in CIMdata’s PLM definition, product data The definition and use of product information is still
authoring and analysis tools are included as part of the evolving. For example, the in-service or service after
PLM environment. This is a different approach than in sales operations, maintenance, and service activities are
other previous market descriptions, such as PDM or now included within the scope of PLM. In some
cPDm. Creation of product definition information and industries, the service component is the primary driver
related intellectual capital includes authoring and for PLM ROI and benefits. In the aerospace and
analysis tools for mechanical design (e.g., CAD/CAM, defense industry, much of the profit enterprises make is
CAE, and other MDA tools), electronics design (e.g., not from the original design and sale, but from main-
ECAD and other EDA tools), and software design taining aircraft and engines for the product’s thirty plus
(e.g., CASE). In addition, technical publication year lifespan. Other products, such as elevators, must
applications used to create the documentation used to be maintained for over fifty years. The real profit is in
define and support the product throughout its lifecycle the overall lifetime service; of course, this requirement
are within the scope of PLM. extends to other types of “products.” For example, pet-
rochemical plants and offshore drilling rigs must be
Solution providers use core functions to build func-
maintained for decades to maximize efficient
tional applications such as workflow and configuration
production.
management. To CIMdata, business solutions are built
using functional applications and incorporating best Supply chain management, which is primarily focused
practices, methods, and processes pertinent to an enter- on ordering and procurement logistics, begins at the
prise’s market and specific industrial sector that can be front end of the product lifecycle because, in many
fine-tuned to meet enterprise requirements. industries, the same partners that produce parts or
components for a product are being delegated respon-
Given this broad definition, it is important to be clear
sibility to participate in the design of those parts and
on which elements are included within PLM solutions
components. Collaborative product development (also
and which are not. Using CIMdata’s definition, PLM
called design chain management) or management of
includes, but is not limited to:
the intellectual supply chain is becoming as important,
• Management of: or more important than the logistics and production
Product data and information—both its supply chain. Design chain partners must be able to
content and context
quickly and effectively share and leverage each others
The design chain
resources, knowledge, products, and where appropriate,
Documents and their associated content (all
intellectual capital. PLM encompasses and enables
types, formats and media)
management of the intellectual property created and

Page 6 Copyright © 2002 by CIMdata, Inc. Product Lifecycle Management

shared among design chain partners. Integration of • Conduct campaign management as a basis for the
design processes fosters innovation for all marketing planning that runs in parallel with
organizations throughout the design chain. product development to ensure a successful
product launch (i.e., shorter time to market)
A major evolution in PLM over the last two years, is a
recognition that defining the manufacturing processes The same is true for ERP—it is integrated or interfaced
required to produce a product are just as critical as with PLM. ERP has traditionally dealt with the product
defining the mechanical, electronic, software, and production lifecycle. Over the last several years, the
documentation configurations. Leading solution pro- focus shifted from ERP to other enterprise solutions
viders are incorporating manufacturing processes and such as SCM, CRM, and now, PLM. As part of the
digital manufacturing into their PLM Offerings today. continuing evolution, new solution providers are
beginning to deliver products that combine some ERP
Overall, PLM is an initiative that encompasses all of and some PLM capabilities into one offering. Other
what is within design and development, added program business functions, such as the logistics of supply chain
management, and is expanding out into maintenance management, logistics itself, marketing and sales, dis-
and support. While PLM encompasses many areas, it is tribution, HR, and finance are not part of the basic
important to understand what PLM is not. PLM does PLM capabilities, but they all interact at multiple
not include other major enterprises solutions, such as points along the product lifecycle or with components
CRM, ERP, and logistics-based supply chain manage- of a comprehensive PLM solution.
ment. It also does not include systems supporting other
major business functions, such as marketing and sales, The figure below depicts the relationships between
distribution, human resource management, and finance. these enterprise solutions. Product businesses have at
However, each of these and other major business areas their core the intellectual assets describing their prod-
interacts with multiple PLM components and the over- ucts. Typically, PDM solutions were used to manage
all PLM solution. product development and design work-in-process.
Once a product could be released to manufacturing,
For example, CRM, which typically focuses on man- ERP took over.
aging sales and order processes, may be used to gather
customers’ product requirements. While portfolio man- Supply chain management was often used by procure-
agement and product or customer requirements are part ment to support the production function. Once the
of PLM, the traditional CRM technologies are not. product was in the field, CRM systems helped manage
However, there is a significant level of information and the customer relationship. As described in the previous
process interaction between the two sections, today’s businesses require enterprise solutions
solutions. PLM integrates with CRM
systems to:
• Provide product definition
information used in sales and service, Partners
e.g., product options and variants, cost PLM Develop
for custom orders, etc. Products ERP
CAD
• Feed product definition information
directly to sales configurators Produce
• Obtain customer requests for product Use/Support/ Collaboration Products
improvements, new requirements, and Maintain and
problems that require product changes Integration
to correct
• Provide tracking and traceability of
customer requirements throughout the Market
product lifecycle CRM & Sell
• Manage innovation opportunities Customers
SCM
including portfolio analysis and Suppliers
evaluation of opportunities against
target customer and market segment
definitions Relationships Among Enterprise Solutions

Product Lifecycle Management Copyright © 2002 by CIMdata, Inc Page 7

that can integrate all of this disparate information to ment initiatives that can make or break an enterprise.
optimize product development, production, and Without PLM, some of these initiatives will be difficult
deployment. CRM data must be used to embody to achieve, especially if ones competitors are deploying
today’s customer requirements into the next product PLM solutions to achieve similar objectives.
generation. To save money, SCM systems must be
active from the beginning of the product definition PLM solutions can also improve the enterprise’s capa-
lifecycle, saving procurement time and money while bility, efficiency, and effectiveness as an organizational
supporting the product development process. Business unit. Benefits result from improved corporate commu-
partners, suppliers, and customers must all have visi- nications, responsiveness of the organization to change,
bility into this information to optimize their decision and using PLM to support concurrent engineering and
processes to benefit the enterprise. PLM is becoming other industrial best practices.
the overall view port or portal into such product defini- Benefits also accrue from applying enabling technolo-
tion information and processes, providing collaboration gies to integrate mechanical and electronic design
and integration functions to synthesize information automation environments, ERP, SCM, CRM and other
residing in CRM, SCM, ERP, and other business sys- systems. These technologies can also increase the secu-
tems to enable new, complex business solutions. rity of access to, and distribution of product definition
information—protecting the valuable intellectual assets
Benefits of PLM—Improving upon which an enterprise’s competitive position is
built.
Business Performance
PLM solutions bring benefits to an enterprise’s product
A PLM solution is a powerful business and technology or service performance in terms of lower costs, higher
approach that has been shown to deliver substantial plant uptimes, quicker delivery, and higher quality.
benefits to organizations taking advantage of it, but PLM solutions help an organization address customers’
PLM is not an end in itself. PLM solutions include a needs more effectively, overcoming the competition as
set of enabling technologies that support implementing a result. Product and service quality as perceived by the
management programs and procedures. PLM solutions customer is of paramount importance in today’s busi-
may be used to implement or support programs such as ness climate. In this important area, PLM solutions
globalization, collaborative product development help enterprises provide faster response to customer
(product design collaboration among partners), and queries, more efficiently design personalized products,
other business initiatives. leverage previous designs and components, and reduce
the number and severity of errors and product changes,
Further, implementation of PLM solutions provides a to name just a few.
catalyst for change within a business. To take full
advantage of PLM, business processes and organiza- Additionally, PLM solutions improve an individual’s
tional structures and relationships must be examined performance by managing not only product definition
and best practices that leverage PLM technologies need information, but by guiding and facilitating their tasks
to be applied. Such changes address both internal busi- through well-defined business processes and work-
ness processes and how an enterprise will interact with flows. PLM solutions have a very positive effect on
its business partners, suppliers, and customers. In process efficiency and effectiveness by supporting and
today’s increasingly distributed, global and collabora- encouraging work in a more structured manner and
tive business environments, PLM is the vehicle to cre- providing the right information, at the right time, to the
ate and maintain an innovative business—one that right people.
competes effectively in all of its markets.
PLM solutions touch every aspect of an enterprise. The
Business performance benefits can result from ability to effectively integrate and use product defini-
improvements in many areas, including market posi- tion information is important to sales and service, mar-
tion, customer satisfaction and retention, and the envi- keting, production planning, plant operations, custom-
ronment. PLM enables performance improvements by ers, and suppliers. All disciplines need detailed, timely
helping enterprises manage all classes of product defi- knowledge of what products are being designed and
nition information and associated business processes. produced.
As a foundation infrastructure, it can become a practi-
cal enabler and a means of support for key manage-

Page 8 Copyright © 2002 by CIMdata, Inc. Product Lifecycle Management

By increasing an enterprise’s flexibility and agility to For a business to be successful in today’s highly com-
respond swiftly to new changes or new markets and petitive global market, PLM is not an option—it is a
competitors, PLM helps enterprises: competitive necessity.
• Deliver more innovative products, services, and
marketing—improving customer intimacy
• Reduce costs, improve quality, shorten time to
market and ROI—increasing revenue and
profitability
• Establish more comprehensive, collaborative,
improved relationships with their customers,
suppliers, and partners—ensuring long-term
corporate viability
PLM solutions have a positive impact on an enter-
prise’s bottom line. Examples of specific benefits
achieved by enterprises that have deployed PLM solu-
tions include:
• An ~40 percent improvement in product change
cycle times
• A 15-30 percent reduction in prototypes
• A 40 percent reduction in lead times
• A 25 percent productivity increase in design
engineering
• Reduced development time for a household
product by 75 percent—from 18 months to 4
months
• Reduced time to cost a product from 5 days to 5
minutes
• Reduced an engineering review process by 83
percent—from 12 day to 2 days
These quantifiable improvements and cost savings
resulted from PLM implementations. PLM solutions
provide an improved ability to create cross-organiza-
tion innovations through information sharing. Based on
current implementation results, CIMdata estimates this
can potentially deliver 5 to 10 percent revenue uplift.
Benefits from PLM solutions fall to an enterprise’s
bottom line. Results like those identified above, and the
associated savings and business performance
improvements, have helped increased net profits for
organizations ranging from 10 percent to more than
100 percent.

Conclusion
CIMdata believes that PLM is much more than a tech-
nology or software product. PLM is a strategic business
approach to empower the business, to enable product
and process innovation, and enhance both top and bot-
tom line business performance. It includes technology,
processes, best practices, and other elements that pro-
vide a complete solution to business problems.

Product Lifecycle Management Copyright © 2002 by CIMdata, Inc Page 9

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