PDM/PLM and Customization

April 21, 2010

Customization is a topic in Product Lifecycle Management that always raises discussions. There are multiple aspects related to customization of PLM systems, and I decided to explore them. In my view, the nature of PLM system customization is deeply related to engineering and product development aspects that in most of the manufacturing organizations are related to their core competencies and touch many processes in the organization. To be able to support them PLM systems are providing various customization capabilities. On the other side, the total cost of PLM systems and especially cost of changes becomes crucial for many companies and implementations. When it comes to implementation cost, need to customize PLM system becomes a negative factor.

Early Monsters
In the early beginning, PDM started as a completely customizable toolkit-oriented systems. In order to implementation and customize them, the significant amount of work needs to be done. For most of the early cases, vendors provided unique production builds of the systems dedicated to a particular customer. PDM was considered as 1M dollars project.

Flexible Data Models and API
Since demand on PDM/PLM systems started to grow, vendors looked how possible to deliver PDM system that will not require a significant effort in order to be customized and tailored to customer needs. The concept of “a flexible data model” was born and few very innovative systems were introduced to the market in late 80s and early 90′s. They provided set of customization tools to modify data schema and additional parameters as well as advanced APIs to support customer-oriented environment. Later in the mid of 90s, more PDM systems were created under significant influence of Microsoft Windows environment.

Out-Of-The-Box PLM
Next step in the PDM customization story was so called “out-of-the-box” system, yet fully customizable. Most of these systems were born as a modification of “a toolkit”-oriented implementations and providing their configuration tuned with a specific parameters and data schema. In my view, it was a beginning of “PLM industrialization” bubble. When systems still provided all options to be flexible configured and customized, the marketing story always emphasized their ability to be ready-to-implementation AS IS. Unfortunately, because of a significant emphasizing of out-of-the-box, technological and  development focus shifted from innovation in providing of flexible, customizable systems towards “packaging” and selling of boxed PLM for industries.

Cloud and PLM
Customization is considered as one of the most significant risks and problems related to PDM/PLM systems in what called ASP model in the beginning and later became OnDeman/Cloud systems. I don’t think, there is a Cloud/SaaS PDM/PLM system today that can provide the same level of customization as a system-on-premise. I think, an effort need to be made to learn Salesforce.com environment and specifically their Force.com platform in order to understand the “secret sauce” of their success story.

What Is Next?
I have a feeling, we are in the middle of debates about flexibility and customization vs. out-of-the-box flavors of PLM. When it became clear, out-of-the-box systems cannot provide what customers need, industry is still continuing to promote ready-to-go solutions, industrial verticals and other sales and marketing oriented speeches. Nevertheless, I can hear strong voices to revise experience of the past 4-6 years and focus on technological development that can provide a platform for the future flexible and customization PDM/PLM system.

What is my conclusion today? Product Lifecycle Management is in the critical situation. It started as a complete customizable environment and, since 1990s moved towards out-of-the-box packages and non-customizable solution. The last happened based on the strong message about making implementation faster and cost reducing. It seems to me that out-of-the-box PLM is a marketing and sales dreams. Engineering and product development cannot be done “out-of-the-box” and even so, companies are doing similar things, their strong believe in the uniqueness and benefits of the engineering and manufacturing environments. The key word for me in PLM customization today is a granularity. To make it work is hard. How to bring it up remains a completely technical topic.

Just my thoughts…
Best, Oleg


Is PLM Customization a Data Management Titanic?

February 26, 2010

PLM implementations are not simple. At the time when PLM vendors are working how to improve their out-of-the-box product offerings, PLM customization plays a very significant role. According to the analysts, customizations and services can be estimated as about 40-50% of total revenues in PDM/PLM domain.

What is behind these numbers and why it happens? In order to understand it, I think, we need to get short round-trip in the history of Product Lifecycle Management. The roots of PLM are in the first implementations made by large aerospace, defense and automotive manufacturers. This is the birth place of PLM and origin of PLM ideas. Since then, PLM started their journey downstream by proliferating ideas, software products and implementations. I can identify the following three trends in Product Lifecycle Management these days:

Maturity of the basic product offering
The PLM core functionality came to the stable form and mostly represented by product data management, lifecycle components and additional modules related to the business process activities – requirements, program, project, services and other processes. Interesting is that PDM and Lifecycle are considered as the most mature components of these portfolios.

Industry specialization
Initially, PLM started in aero/auto domains. However, nowadays it is moving towards all industries. In order to play industry game well, PLM vendors decided to invest into industry orientation. This trend can be characterized by a wide range of options starting from industry marketing and ending by providing packaged PLM solutions for the specific industries (i.e. Apparel, CPG, Food and Beverage, etc.)

Emerging trends
I can identify two main emerging trends – SaaS / OnDemand and Open Sources. Both are focused on how to satisfy needs of customers differently utilizing new software technologies  and deployment as well as by investing in the alternative form of business models.

When PLM industry focused mostly on providing out-of-the-box functionality, I didn’t find any technological trends focused on core data management capabilities of existing and future PLM systems. This is a very bad sign, in my view. Looking backwards, I can see significant improvements that were made in PLM software by the introduction of flexible data modeling. It allowed to decrease cost of PLM implementations, but created the huge amount of today’s customizations and implementations based on existing PDM/PLM platforms.  And this is a growing conflict between customized PLM software and upgrades to the coming releases of PLM portfolios.

I found the following Develop3D’s article as a very interesting. Al Dean is writing about replacement of highly customizable instance of MatrixOne by Open Source PLM Aras. There is more information about this event on Aras website. Read it. It looks like customer made the decision in favor of Open Source because of absence of alternatives to move to the next version of out-of-the-box MatrixOne version. I want to point out on the discussion about PLM software upgrades – PLM, Cloud, SaaS and Software Upgrades. My conclusion was simple – technology and architecture matter. If PLM data management capabilities could manage the upgrade event from highly customizable solution, I doubt the customer’s decision was to dump out existing vendors. Does it mean Aras has such technology? I don’t know. However, coupled with Open Source business model it crushed existing PLM implementation.

So, what is my conclusion? My hunch is that PLM vendors forgot to invest into data management technologies. PLM data management technologies were created 10-15 years ago. Since then, industry developed huge amounts of customized implementations. I see these implementations as Titanic pushing forward… Do you think they will be able to achieve port of destination or will die in front of icebergs of upgrades? I see it as a real and dangerous problem.

Just my thoughts…
Best, Oleg

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