How do you know when you have successfully implemented PLM? There is much hype, but often little (relatively speaking) results for many companies. What are the important metrics to capture to determine ROI?
Measurement metrics will definitely be the time and cost saved. Compared with the investment incurred, the benefits accrued must be achieved in a reasonable timeframe and must demonstrate sufficient flexibility fo adaptation to the rapidly changing environment. Cost of losing business due to lack of Adaptive systems also need to be demonstrated.
It appears to me that PLM is more of a cost of doing business today than anything. Not a lot of metrics can define the soft savings, and that is certainly not the focus at the executive level. They want to hear the hard cost savings: schedule (time), cost, and people. Even though metrics are important to help identify those business benefits, my feeling is that executives must first understand what PLM does and that PLM is a business tool, and is absolutely critical for many businesses today.
I found this blog article that provides some insight to this discussion - that PLM is considered a cost of doing business overlooks the true benefitd of PLM. In the article, Jos Voskuil writes that the concept of PLM is about sharing data. An interesting read!
Love the article and couldn't agree more that it's still a part of doing business - sharing the rich product information and data. It's not just about storing the data. The communication of the right data, to the right people, at the right time is so critical to doing business today. Thanks for sharing the article!