Will PLM and Internet of Things unleash new value potential for organisations?
Summary of Findings
Has your company made PLM an integral part of its Digital strategy?
Product and product information is normally core to a company’s digital strategy and the need to have PLM connected to the strategy should be key for its realisation.
- 40% of respondents state PLM is currently a key part of their digital strategy.
- 22% of respondents do not yet have a digital strategy.
- Although PLM is part of their digital strategy, it will be included in the future say 21% of respondents.
- PLM is not a part of digital strategy in 17% of cases.
- The fact PLM is part of their digital strategy in 61% of companies means PLM is viewed as an enabler for digitalisation.
- Major research by Management Consultancies indicate that digital is recognised by executives as key for business survival (not growth) for the next 5 years.
Yet 22% of the responses received state they have no formalised digital strategy and a further 17% have not included PLM in it.
To what extent do you see your PLM implementation ready to support IoT for connected products?
If the “T” in Internet of Things is the ”P” in PLM, then businesses use of PLM in the execution of their IoT strategy should be a priority
- PLM implementation is not ready to support IoT with 30% of respondents. However, in the long term this is expected to change.
- 29% point out that their PLM implementation is not ready to support IoT and there is no plan to change in the near term.
- Their PLM implementation will be changed in near term to support IoT while currently it does not, say 17% of respondents.
- 17% indicate that their PLM Implementation does not take IoT into consideration.
- 65% of organisations understand there is a deficit in the maturity of their PLM implementation to support IoT.
- Both organisations and service providers alike must primarily concentrate their efforts to overhaul their current PLM to support IoT by analyzing and reducing gaps.
- PLM vendors and service providers must play a major role to educate organisations to prepare their PLM for IoT. To realize their IoT goals in short span organisations can use agile methodology to set up working prototypes, pilot and ramp up.
- IoT vendors have been pushing its adoption over the last years, with moderate success up to the level of Proofs of Concept and Pilot projects. However, full use in Production is far from achievable. The fact that only 7% of respondents have their PLM system ready, can give a good explanation why.
What are the biggest barrier you see for PLM enabling your IoT initiatives?
The “engineering” legacy of PLM and its complexities could be seen as a barrier to enabling IoT initiatives with critical product information.
- 84% of respondents attribute the unclear role of PLM, as opposed to other business systems, to having a moderate to very big impact in using PLM as an enabler for their IoT initiatives.
- 45% agree that PLM is seen as the Engineering tool has a Very big impact.
- The fact that people still do not understand what PLM is has 82% impact on creating a barrier to act as an enabler for their IoT initiatives.
- 67% of respondents indicate PLM is seen as too complex to work with.
- Its alarming that after 30 years of its inception, majority of organisations do not understand the role of PLM. This could be due to the majority of PLM organisations have not yet progress from Product Data Management (PDM) implementations. This indicates a need to showcase the potential and value of PLM.
- 81% indicate that PLM is still seen as an Engineering tool. This perception must change as PLM can bring value only when it is used through out the product’s lifecycle which is much broader than Engineering.
- PLM vendors must focus on user experience to gain acceptance.
To what extent do you believe new terms surrounding PLM like IoT, Digital Twin and Big Data in helping PLM’s positioning in your company?
The combination of the hype around PLM and IoT and a new vocabulary to describe concepts may be causing further confusion in the role of PLM for organisations.
- 43% of respondents point out that the new terms surrounding PLM is causing confusion on the value PLM brings to their Organisation.
- The new terms have not impacted the way PLM is positioned in 31% of companies.
- 21% believe that these terms are helping their companies redefine the role of PLM
- 5% see that the new terms have fundamentally changed the role of PLM and its value to their company.
- Less is more. For a majority of organisations the new terms seem counter-productive. A Body of Knowledge (BOK) could be recommended to define terms, concepts and activities around for digitalisation or industrie 4.0.
- IoT relies on a functioning PLM system, containing accurate and complete data. At the same time, the need for using IoT can enhance PLM’s visibility in a company. It is interesting in reality IoT has created confusion rather than clarify PLM’s role.