How does PLM help manage the product lifecycle?

In a climate where product lifecycles are becoming shorter and competition is fierce, PLM is becoming a crucial element for businesses seeking to gain a competitive edge.

The growth of global trade and changing consumer habits are having a significant impact on product lifespans. For this reason, a PLM is vital for anticipating the different lifecycles of the products you sell.

In this article, we will explain exactly what PLM is and what it can offer your business, taking into account the various ways of accessing this type of system and the synergies it enables.

PLM: definition

What is PLM? Product Lifecycle Management (PLM) is a comprehensive process that encompasses the management, coordination and control of all phases of a product’s lifecycle, from design through to commissioning or market launch.

This strategic approach aims to maximise a product’s value throughout its entire life cycle. This is achieved, in particular, by integrating processes, data and internal or third-party staff into the process.

The origins of PLM

Industry as we know it today is characterised by:

• Globalisation and increasing competition,
• Constantly evolving consumer demands,
• Shorter product life cycles,
• Rapid technological innovation.

Companies are therefore under constant pressure to develop high-quality products that can be brought to market quickly and at a lower cost.

Originally, product management relied on fragmented processes organised around disparate systems. This led to inefficiencies, delays in bringing products to market and increased costs. The advent of PLM has therefore enabled companies to adopt an integrated and systematic approach to managing their products.

Product Lifecycle Management (PLM) is therefore a response to this transition towards a more competitive market. In particular, it helps address issues relating to transparency in the management of the entire product lifecycle.

The key components of PLM

For a PLM system to be comprehensive, it must incorporate several key features essential for effective data management. These features may vary depending on the specific needs of individual organisations.

• Data management: a Product Lifecycle Management system centralises and manages all product-related data. This includes data such as design models, specifications and technical documents. It enables all this information to be centralised into a single data source for all product-related information
• Process management: the system defines and automates processes relating to product development, manufacturing and maintenance. This includes, in particular, validation processes, change management, etc.
• Collaboration: the PLM system facilitates collaboration between the various stakeholders involved in product development and management. Collaboration is enabled in particular through instant messaging tools, rapid document-sharing features and virtual workspaces
• Configuration: the system enables the management of product configurations, i.e. the multiple versions and variants of products throughout their lifecycle. This ensures that the correct product specifications are used over time, even if changes are made
• Integration with other systems: PLM systems are often integrated with other enterprise systems, such as ERP systems, PIM systems or supply chain management systems. This ensures consistent management of all data and processes

The product lifecycle

The product lifecycle represents the various stages a product goes through, from its design to its withdrawal from the market. The following phases characterise it:

1. Launch: The product is launched onto the market and presented to the target consumers. This phase is characterised by high marketing costs, with the aim of promoting the product to the target consumer group.
2. Growth: The product gains popularity in its market. Sales growth can be observed, driven by increased consumer demand, which enables the product to gain market share. Companies can then focus on introducing product improvements to capitalise on its growing popularity
3. Maturity: The product reaches its peak in terms of profitability and popularity amongst consumers. Sales gradually stabilise at a high level, leading to the emergence of alternative products and intensified competition. At this stage, companies mainly seek to utilise marketing strategies or pricing tactics to maintain their market share
4. Decline: As consumer needs evolve, sales decline and more innovative products appear on the market. The product then becomes obsolete. Companies have several options: to maintain the product as it is, to redesign and update it, or to phase it out of the market.

The phases of PLM

PLM is divided into five distinct stages, corresponding to the various phases of the product life cycle outlined above:

1. Product design: this phase involves the generation and evaluation of product concepts. It also takes into account the detailed specifications for the subsequent development of the product;
2. Product development: during this phase, the product is manufactured and tested prior to its launch. It is at this stage that various iterations and adjustments are made, with the aim of precisely meeting the requirements of end consumers;
3. Market launch: once the product has been developed and tested, it is launched onto the target market. This stage involves the following activities: sales, distribution, marketing, end-user training, etc.;
4. Product use: once the product has been purchased by consumers, it is used by them to fulfil specific objectives. Companies may then develop after-sales, support and maintenance services to ensure consumer satisfaction during this post-purchase phase;
5. Decommissioning: the cycle concludes when the product reaches the end of its useful life. It is then withdrawn from the market on which it was distributed. The appropriate way to do this is to consider recycling the materials used to manufacture the product where possible, and reselling equipment to help develop the product if it is no longer needed, …

PLM therefore enables each of these phases to be optimised by streamlining the flow of information and communication between different teams, ensuring efficient data management. Ultimately, this helps to reduce costs and maximise the value perceived by consumers through centralisation on a single platform.

What are the benefits of PLM?

Using a product lifecycle management system enables businesses to improve the flow of processes and collaboration, thanks to the following benefits and features:

Data management with PLM

Within the product lifecycle, data is of great importance and helps to anticipate the various phases and identify issues:

Data centralisation

A PLM system centralises all data relating to the product and its development. This data is stored and accessible throughout the process, enabling all teams to obtain their information from a single source.

In particular, this helps to avoid data redundancy or duplication, ensuring the consistency of the information available and necessary for the smooth running of the product lifecycle.

Clarity of information

Thanks to the Product Lifecycle Management system, decision-makers have a reliable, single source of information that enables them to make informed and appropriate decisions.

This information thus aids decision-making in design processes and their feasibility, manufacturing, and supply chain management planning.

Automation of repetitive tasks

Among its many features, a PLM system offers task automation, which frees up valuable time for teams. This helps to reduce manual intervention and speed up processes. Furthermore, this automation minimises the potential for human error.

Reducing time-to-market

Optimised data management and automated processes ultimately help to reduce time-to-market. Companies are then able to bring their products to market more quickly, giving them a significant competitive advantage and the ability to respond swiftly to trends and various opportunities identified in the market.

The collaborative benefits of PLM

As mentioned, PLM systems offer collaborative and centralisation features, helping to reduce errors, facilitate communication between departments and promote collaboration within the organisation.

Reducing errors

Centralising all product-related data and processes within a single platform reduces the risk of errors and inconsistencies. Indeed, PLM enables different teams to access accurate and regularly updated data, reducing the risk of errors or confusion.

Changes made to this data are logged and everything is documented, so that teams have access to all versions.

Communication between departments

PLM optimises communication between the various departments involved in the product lifecycle. These departments may include staff with a wide range of expertise, such as engineers, logistics specialists, marketing professionals, and so on.

By providing a centralised platform on which teams can share data and feedback in real time, PLM streamlines the flow of information within the organisation and promotes transparency in communication. This helps to foster proactivity, the early identification of issues and informed decision-making.

What are the different types of PLM?

The PLM software market offers a wide variety of solutions. These must be tailored to the needs of each organisation and meet their requirements effectively.

Traditional PLM

On-premises PLM is a solution deployed directly on the company’s servers. This type of PLM requires a significant initial investment, including hardware infrastructure and software licences.

With this approach, companies have full control over the installation, customisation and maintenance of their system.

This type of PLM includes highly effective features for end-to-end product lifecycle management, comprising data and process management, collaboration between teams, and integration with various business systems such as PIM systems.

On-premises PLM offers a high level of customisation and performance. However, it can be costly and may require in-house expertise for its management and maintenance over time.

Open-source PLM

This type of Product Lifecycle Management software allows for a high degree of customisation for businesses, thanks to access to the source code. In particular, this enables the system to meet very specific requirements.

In the vast majority of cases, open-source solutions are offered free of charge to businesses with a limited budget. Among their features, open-source PLM solutions once again facilitate collaboration and the previewing of changes over time, with access to various versions of the data.

However, like all open-source solutions, these require an investment of time, involving effort in the development and customisation of the software. This may therefore require the involvement of a third party or the need to undertake the development of the solution.

Cloud-based PLM / SaaS

Cloud-based PLM may also be referred to as SaaS (Software as a Service) PLM. It offers a modern alternative to on-premises or open-source deployments. This model means that the software is hosted on remote servers, accessible via the internet in return for a subscription.

Cloud-based PLM is easy to deploy, as it is already set up on servers, saving both time and money. It can be used from any device, and maintenance is included in the subscription and carried out by the teams responsible for the software’s development.

Why integrate PLM and PIM?

Product lifecycle management software can be integrated with other software to create highly effective synergies within the organisation. Among these systems is PIM.

Reminder: what is a PIM?

A PIM (Product Information Management) is a system developed to centralise and structure the management of all information relating to the company’s products.

This information includes technical specifications, descriptions, images, prices, etc. The aim of a PIM is to ensure consistency in product information, whilst streamlining its distribution across the various sales channels.

The benefits of PLM and PIM working together

There are several advantages to creating synergies between PLM and PIM software, given their shared objective: to centralise data.

Data centralisation

PLM, for its part, manages data relating to the product lifecycle. By integrating it with a company’s PIM, the company can centralise all relevant product data. This harmonisation of data is carried out across the organisation and enables all stakeholders to access a single source of truth throughout all phases of the product lifecycle.

Process optimisation

Centralising information streamlines processes and enables faster decision-making, offering greater foresight. This integrates the cross-functional expertise of various business departments, such as logistics, marketing and engineering, amongst others.

The product data, enriched and structured by the PIM, can be used to create an optimised product catalogue, which can then be used to develop marketing materials or optimise the various distribution channels.

Conclusion

You now know all about PLM and the benefits it offers, particularly when used alongside a PIM.

This synergy significantly boosts your company’s efficiency and enables you to streamline all processes by centralising and structuring rich data centred on your product. It therefore helps you anticipate the various stages of the product lifecycle and bring to market products tailored to the highly specific and constantly evolving needs of consumers.

As a reminder, PLM software can be used on-premises, as open-source software or as a SaaS solution.