Choosing the Right PLM for Small Business

By Chuck Cimalore, CTO, Omnify Software

Quite often a small- or medium-sized business (SMB) that seeks to gain a competitive advantage will do so by improving its products. Looking toward technology to support that goal, decision makers often implement PLM (product lifecycle management) software to streamline the product development process. Selecting a new technology is a challenge for any organization, but can be especially difficult for the SMB since most PLM software is designed to meet the needs of large enterprises.

Smaller companies, however, are beginning to find that large PLM vendors are not the only ones who can address all their needs. Because this software is designed for large companies like car makers, it includes functionality irrelevant to small organizations. Further, the SMB—with limited cash flow—winds up paying for functionality it likely will never apply to its product design process.

According to an AMR report, “Midmarket Manufacturing Needs PLM” by Kevin O’Marah, only eight percent of midmarket companies use PLM software from a large-scale vendor. This means that many smaller companies are looking to implement PLM products designed for their market segment. That’s good news; PLM vendors exist who design software with all the necessary functionality and application flexibility to adapt to a smaller organization’s needs.

To begin the selection process, the SMB first needs to understand what PLM should accomplish. The tool can help from product conception and design through manufacturing and support; all the while improving communications between both internal and external project constituencies. A successful PLM implementation can help reduce time-to-market and cut costs, dramatically reducing waste and rework. Once a company determines PLM will address its challenges, the question becomes which one to choose.

Because the SMB operates with less cash, develops fewer products, and has smaller customer and supplier bases when compared to large enterprises, the right PLM tool needs to address many challenges while being tailored to a distinct market segment. Too often, the SMB will select a PLM solution with broad functionality that fails to deal with the daily challenges of engineers and developers. Solutions designed for the large enterprise often manage few developmental logistics, instead helping with supply chain management, packaging, and post-development phases. For the smaller business, the process should begin with engineers faced with the daily issues of data management and communication.

Other factors to consider when selecting a PLM tool are the implementation period and the technical support that is available after implementation. Most software designed for the large enterprise has a considerably lengthy implementation process that can last more than six months. Alternatively, software designed for the SMB has a quicker implementation process and can often be up and running within a week, depending upon the vendor and level of integration with other systems. Following the implementation, the software must be maintained. Again, large enterprise software will require more attention and may even require the hiring of additional IT staff.

Finally, companies often overlook the importance of employee buy-in when selecting a new PLM application. If it is necessary for employees to learn an encyclopedia of information before using the software, the staff will be more resistant to using the tool and improving the product development process will be a greater challenge. In order to see a quicker return on investment, employees need a user-friendly PLM solution with limited ramp-up time. If employees feel comfortable using the software, they will be more likely to use it for a range of purposes. And remember, within a smaller business, employees are expected to take on multiple functions and that means they will likely need to understand many aspects of the software. If a software is easy to learn and use, you’ll see a greater and quicker transformation across the development process.

Selecting PLM software can be a challenge when you’re not aware of the options available within the marketplace. But if an organization starts the process by understanding what the technology should address, and then researches the unique needs of its business and market segment, it’ll be able to choose a PLM system that will help develop high-quality products more efficiently, and ultimately transform the organization.

Chuck Cimalore is co-founder of Omnify Software and has been Chief Technology Officer and Chief Architect of its technology since 2002. You can reach him via e-mail at Desktop Engineering Feedback.