You have PLM software installed and have been using it. You have arrived at a decision point – renew maintenance or not; upgrade the software to a new version at a price; change software providers; etc.
This calls for an opportunity cost analysis
What is the cost of an alternative that must be forgone in order to pursue a certain course? What is the dollar value of the benefit you could have received by choosing the alternative?
Thoughts on Renewing Maintenance
The costs: Maintenance is no longer cheap, but is it worth it? If you let it lapse, companies will typically make you pay for all of the years you missed to get back on maintenance.
The benefits: Running the current version of software makes it easier to get support. You have the ability to take advantage of software improvements. What is the value of being current to your company? Other benefits of the new software will be specific to your company.
Thoughts on Software Upgrades
The costs: Again, if you have let your maintenance lapse, you could be looking at paying full price for the software at this point.
The benefits: You are interested in the new version because of some features that are useful to your company. How much value will the upgrade bring to your company?
Thoughts on Changing Software Providers
The costs: Changing software providers will require you to purchase new software – seats for all those who need it. Most of the new software uses subscription pricing – you pay every year. You will either need to migrate all of your data to the new software or integrate the two packages together. You will need to train all of your users. You will be spending some amount of time installing the new software.
The benefits: The new software may provide needed functionality that the old software doesn’t have. It may be necessary for your growth plans for your company. The needed functionality may connect your company to all of its worldwide divisions. It may provide a better connection with your customers and suppliers.
These examples are an oversimplification designed to get you thinking about your situation. If you would like some help with this, give me a call…