Interview

Let the specialists handle PLM

Nitin Tappe, Vice President and Head, Software Services, Geometric is of the opinion that enterprise software vendors that have forayed in the PLM space still have a long way to go in terms of developing products that are at par with those from PLM specialists. He discussed
the current market dynamics and key industry trends in a chat with Rajendra Chaudhary.

While there is no denying the value of a PLM based approach to manufacturing, CIOs often struggle to justify the large TCO typically associated with PLM projects. How do you reckon they get it past the management?

Today, global manufacturing organizations are being impacted by a number of key business trends. These include regulatory compliance, global engineering, and mechatronics (the idea that products are a complex mix of mechanical, electrical and electronics elements that need to be managed together). These trends alone have ensured that PLM no longer remains a nice-to-have discipline but rather becomes a standard and a natural business enabler.

As far as a large TCO project is concerned, we don’t believe that it’s a solid argument, at least not anymore. For CIOs who have a vision to benefit from a PLM system but need to be cautious with their budget allocation, the SaaS (Software as a Service) model is a practical answer—limited upfront capital expenditure is required and the company pays only for what it uses. Cloud computing is a further enabler for restricting investment. Software vendors have started to support this model, and Geometric is also working with a set of customers who are excited with the proposition of a hosted solution.

Another CIO concern has to do with the lengthy deployment cycles and long time that it takes to witness the benefits of PLM? Are there ways of cutting down on the time it takes to deploy PLM projects and reap its benefits?

I would prescribe four things for addressing this issue. First, a stringent evaluation of the PLM product is a must so that a strong mapping of the OOTB (Out of the Box) features to the business processes is achieved which in turn, limits the customization requirements.

Secondly, organizations should opt for industry specific and process specific solutions. PLM vendors today support this strategy by providing
industry-specific templates of the PLM solutions, and Geometric has been working closely with the leading PLM vendors to develop some of these industry specific accelerators, as well as some cross-functional process solutions on PLM that have shown faster benefits.

The third thing that user organizations need to go in for is a phased and agile approach to implementation so that feedback loops and the route to benefits are short.

Finally, the success of PLM system will depend on how fast the users pick it up and start using it effectively. So steps to ensure faster user adoption by involving them earlier in the implementation process through conference room pilots, early testing, and training and change management initiatives are important.

Historically PLM has been a specialized discipline practiced only by a handful of vendors. However, in recent times we have seen quite a few enterprise software vendors entering the fray. What do you make of it?

PLM has started to gain acceptance as an application that influences and connects multiple departments in a manufacturing company, as against earlier being thought of as a tool only for the engineering department; and hence has attracted attention from the ERP vendors.

However, it is important to note that PLM is not only about enterprise processes, its core is still engineering – managing geometry intensive design data and processes, managing complex analysis data and processes, interfacing with the required CAD, CAE and 3D applications and more.

In case of PLM vendors, they come with a strong legacy in CAD and design tools and their PLM products provide some best-of-the-breed features OOTB for the product development process. It is difficult for ERP vendors to provide this kind of NPDI (New Product Development and Introduction) process and integration support through their existing enterprise applications. So, while they create excitement in the market they cannot be successful without a real PLM product development strategy or without making a good acquisition.