How can PLM help you control the product lifecycle?

In a context of shortening product life cycles and fierce competition, PLM is becoming a crucial element for companies seeking to make a competitive difference.

The development of global trade and changing consumer habits are having a major impact on product lifecycles. That's why PLM is so important for anticipating the different life cycles of the products you market.

In this article, we'll define exactly what PLM is and what it can do for your company, taking into account the different ways in which this type of system can be accessed and complemented.

PLM: definition

What is PLM? Product Lifecycle Management (PLM) is a global process that takes into account the management, coordination and control of all phases of a product's lifecycle, from design to commissioning/marketing.

This strategic approach aims to maximize the value of a product throughout its life cycle. This is achieved by integrating processes, data and internal or third-party collaborators into the process.

The origins of PLM

The industry as we know it today is characterized by : 

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

As a result, companies are under constant pressure to develop high-quality products that can be put into service quickly and at lower cost.

Originally, product management was based on fragmented processes organized around disparate systems. This led to inefficiencies, delays in time-to-market and increased costs. The advent of PLM enabled companies to adopt an integrated, systematic approach to product management.

Product Lifecycle Management is a response to this transition to a more competitive market. In particular, it addresses the issue of transparency in product lifecycle management.

The building blocks of PLM

For a PLM system to be complete, it needs to integrate a number of functions that are essential for efficient data management. These functionalities can vary, depending on the specific needs of each company.

• Data management: a Product Lifecycle Management system centralizes and manages all product-related data. This includes data such as design models, specifications, technical documents, etc. It centralizes all this into a single data source for all product-related information.
• Process management: the system defines and automates processes linked to product development, manufacturing and maintenance. This includes validation processes, change management, etc.
• Collaboration: the PLM system promotes collaboration between the various stakeholders involved in product development and management. Collaboration is made possible by instant messaging tools, rapid document sharing functionalities and virtual workspaces.
• Configuration: the system enables you to manage product configurations, i.e. the multiple versions and variants of a product during its lifecycle. This ensures that the right 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, PIM or supply chain management systems. This ensures consistent management of all data and processes.

The product life cycle

The product life cycle represents the various stages a product goes through, from conception to withdrawal from the market. Here are the phases that characterize it: 

1. Introduction: The product is launched and presented to target consumers. This phase is characterized by high marketing costs, with the aim of promoting the product to the target consumers.
2. Growth: The product gains popularity in its market. Sales growth can be observed as a result of increased consumer demand, leading to market share gains. Companies can then focus on introducing product improvements to capitalize on its growing popularity.
3. Maturity: The product reaches its peak of profitability and popularity with consumers. Sales gradually stabilize at a high level, leading to the emergence of alternative products and intensified competition. In this phase, companies mainly seek to leverage marketing or price to maintain market share.
4. Decline: As consumer needs evolve, sales decline and more innovative products enter the market. The product then becomes obsolete. Companies have several options: maintain the product as it is, reorganize and update it, or gradually withdraw it from the market.

PLM phases

PLM is divided into 5 different stages, and represents a response to the different phases of the product life cycle presented above: 

1. Product design: this phase refers to 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 on the market. It is at this point that the various iterations and adjustments take place, with the aim of precisely meeting the requirements of end consumers;
3. Market introduction : once the product has been developed and tested, it is introduced to the target market. This stage involves the following activities: commercialization, distribution, marketing, end-user education, etc;
4. Product use: once the product has been purchased by consumers, it is used by them for specific purposes. Companies can then develop after-sales or support and maintenance services to guarantee consumer satisfaction during this post-purchase phase;
5. Retirement: the cycle concludes with the end of the product's useful life. The product is then withdrawn from the market in which it was distributed. The appropriate way to do this is to take into account the recycling of the materials shaping the product, if this is possible, the resale of equipment enabling the product to be developed if it is no longer useful, etc.

PLM optimizes each of these phases by streamlining the transmission of information and communication between different teams, ensuring efficient data management. Ultimately, this reduces costs and maximizes the value perceived by consumers, thanks to centralization on a single platform.

What are the advantages of PLM?

The use of a product lifecycle management system enables companies to achieve greater fluidity in processes and collaboration, thanks to the following benefits and functionalities: 

Data management with PLM

In the context of the product life cycle, data is of great importance, helping to anticipate the various phases and identify problems: 

Data centralization

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

This avoids data redundancy and duplication, and ensures consistency in the information available and required for the product life cycle.

Clear information

The Product Lifecycle Management system provides decision-makers with a single, reliable source of information, enabling them to make informed, appropriate decisions.

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

Automating repetitive tasks

Among its many functions, a PLM system offers task automation, which frees up valuable team time. This helps to reduce manual intervention and speed up processes. What's more, this automation limits the potential for human error.

Shorter time-to-market

Optimized data management and automated processes ultimately reduce time-to-market. This enables companies to bring their products to market more quickly, giving them a strong competitive edge and the ability to react quickly to market trends and opportunities.

The collaborative benefits of PLM

As mentioned, PLMs offer collaborative and centralizing features, helping to reduce errors, facilitate communication between departments, and foster collaboration within the company.

Reducing errors

Centralizing all product-related data and processes on a single platform reduces the risk of errors and inconsistencies. In fact, PLM gives different teams access to accurate, regularly updated data, reducing the risk of errors or confusion.

Modifications made to this data are listed and documented, so that teams have access to all versions.

Communication between departments

PLM optimizes communication between the various departments involved in the product lifecycle. These departments may include employees with very different areas of expertise, such as engineers, logisticians, marketing professionals, etc.

By providing a centralized platform on which teams can share data and comments in real time, PLM streamlines the information process within the company and promotes transparent communication. This helps develop proactivity, upstream problem identification and informed decision-making.

What are the different types of PLM?

The PLM software market is rich in a variety of solutions. These must be adapted to the needs of each company, and meet their requirements efficiently. 

Traditional PLM

On-premise PLM is a solution deployed directly on the company's servers. This type of PLM requires a high initial investment, including hardware infrastructure and software licenses.

With this option, companies have total control over the installation, customization and maintenance of their system.

This type of PLM includes highly effective functionalities for end-to-end product lifecycle management, including data and process management, team collaboration and integration with various enterprise systems such as PIM.

On-site PLM offers a high level of customization and performance. However, it can be costly, requiring in-house expertise to manage and maintain over time.

Open-source PLM

This type of Product Lifecycle Management software offers companies a high level of customization, thanks to access to the source code. This makes it possible to meet very specific needs.

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

However, like all open-source solutions, these require an investment of time and effort in software development and customization. This may require the intervention of a third party, or the assumption of responsibility for the development of the solution.

PLM cloud / SaaS

Cloud-based PLM can also be called PLM SaaS (Software as a Service). It offers a modern alternative to on-premise or open-source deployments. This modality means that the software is hosted on remote servers, accessible via the Internet in exchange for a subscription fee.

PLM cloud is easy to deploy, as it is already developed on servers, saving time and money. It can be used from any device, and maintenance is included in the subscription, carried out by the teams responsible for software development.

Why complement PLM and PIM ?

Product lifecycle management software can be coupled with other software to create highly effective synergies within the company. Such systems include PIM.

Reminder: what is a PIM ?

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

This information includes technical specifications, descriptions, images, prices, etc. The aim of PIM is to guarantee consistency in product information, while making it easier to distribute to the various sales channels.

The benefits of PLM / PIM

There are several advantages to creating synergies between PLM software and PIMsoftware, with their common objective of centralizing data.

Data centralization

PLM, on the other hand, manages product lifecycle data. By coupling it with PIM , a company can centralize all relevant product data. This harmonization of data is carried out throughout the company, giving all stakeholders access to a single source during all phases of the product lifecycle.

Process optimization

By centralizing information, processes can be streamlined and decisions taken more rapidly, offering greater capacity for anticipation. This integrates the cross-functional skills of various company departments, such as logistics, marketing, engineering, etc.

Product data enriched and structured by PIM can be used to create an optimized product catalog, which can then be used to develop marketing materials or optimize various distribution channels.

Conclusion

You know all about PLM and its benefits, especially when used in conjunction with PIM.

This complementarity significantly increases your company's efficiency, and enables you to streamline all your processes by centralizing and structuring rich data around your product. This helps you to anticipate different product life-cycles, and to market products adapted to the very precise and constantly evolving needs of consumers.

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