A PLM Response

From a comment from a fellow blogger – Max Pucher…

Product Lifecycle Management is partially about retaining and exchanging information and also about formal signoff procedures between departments. But more than anything it is about supporting and even promoting a creative innovation process. You do anything else with PLM and you seriously restrict that creativity.

PLM is not about cost or efficiency at all! Especially in tough times, it will be those businesses that innovate the fastest that come out shining at the other end of the dip. The ones that cut costs to the bare minimum will be killing whatever creative ability they had before.

My Thoughts…

25 years ago, when I was selling one of the first PLM software products, we solved 2 problems – Managing versions of documentation [check in; check out] and Managing the engineering change process. If they used the wrong version of a document [this happened frequently], the mistake cost them money. If it took them 2 months to turn around an engineering change request [sometimes longer], it cost them money. So it was definitely about cost and efficiency.

However, innovation is extremely important.

Innovation is important because the opposite of innovation is a commodity. If you develop innovative products and/or services, you can charge a premium. Look at Apple with their iPhone and then their iPad. If you are not innovating, you end up competing on price. Look at the PC market today, Dell does not have the ability to charge high prices. I am sure that Max will like this thought – if you are not innovating, your intellectual property may have zero value someday.

Your Thoughts…

How is your company approaching innovation?


One thought on “A PLM Response

  1. Thanks, Scott. I am glad to hear that there are areas where we are in agreement. And you are absolutely right: if you don’t innovate, you end up competing on price and having to cut cost to do so, further reducing your ability to innovate. It is a vicious circle and worse, a very slippery slope to get onto. It’s only downhil from there.

    Innovation is knowledge work and it does not only happen in product development, but has to happen each day in each process by the people who perform them. That’s why I propose ADAPTIVE processes that do not need an expensive and slow governance bureucracy for change.

    All the best, Max

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