ORGANISATIONAL READINESS FOR PLM

Are organisations ready to elevate and refine the role of PLM?

Summary of Findings

Organisational Readiness for PLM - Summary of Findings
Organisational Readiness for PLM – Summary of Findings

How would you best describe the acceptance of your PLM Projects?

Business acceptance on the need for change is critical for the project’s success. This is true for any change within an Organisation.

Figure 13: How would you best describe the acceptance of your PLM Projects?
Figure 13: How would you best describe the acceptance of your PLM Projects?

Key Findings

  • 35% of organisations have accepted the change, provided it was beneficial for the organisation.
  • 36% of respondents say change has been accepted if it supported the department implementing PLM.
  • 23% of companies have largely rejected the change.

Conclusions

  • The balance between only accepting changes locally verses accepting changes for the wider business at local level is finely balanced.
  • This resistance could be due to the way departments are measured in their performance and not to their contribution to overall business results.
  • The high resistance to change due to wishing to maintain current processes and ways of working is human nature. Why fix something that is not broken. Given in the previous section we have seen that PLM benefits are often intangible, it is often hard to see how things could be better if improvement can not be defined and measured.
  • Acknowledging that changes are often easier said than done, organisations must embrace a flexible culture and use agile implementation approaches to prove, pilot and ramp up.

What is the level of clarity of PLM ownership within your organisation?

The ownership of PLM has traditionally been held in engineering or IT departments of an organisation; however, to drive wider change, executive ownership is needed.

Figure 14: What is the level of clarity of PLM ownership within your organisation?
Figure 14: What is the level of clarity of PLM ownership within your organisation?

Key Findings

  • 20% of respondents believe IT owns PLM.
  • 20% of respondents believe PLM is owned by multiple departments with a central governance.
  • 18% of respondents assign PLM ownership to a departmental manager

Conclusions

  • The equal distribution of answers suggests PLM ownership varies across companies and not common view ownership.
  • Only 11% of companies reported Executive ownership with functional accountability. This demonstrates the legacy of departmental ownership and usage of PLM in businesses (typically Engineering).
    This also indicates that PLM has yet to establish itself as a business critical enterprise application along side ERP and CRM.
  • A significant proposition of responses show that PLM is owned by IT and as a consequence PLM is still seen as only an IT tool.
    Like any other IT initiative, PLM must be aligned to organisational strategies to gain benefits. PLM ownership must be held centrally and function in partnership with the business.

What is the main focus of your PLM Programme?

The historical focus of PLM projects has been around the reduction of cost, either IT or the business;  but for PLM to maximise its potential it needs to be creating value inside of an organisation.

Figure 15: What is the main focus of your PLM Programme?
Figure 15: What is the main focus of your PLM Programme?

Key Findings

  • 41% of PLM programmes aim to transform cross-functional processes
  • 20% of the organisations are currently focusing on implementing their current processes in PLM
  • 36% focus on software maintenance projects or implementing new features and functions from the software

Conclusions

  • There is a duplicity between the focus of PLM projects being cross-functional transformations and 59% of responses stating resistance to change being high if processes are change or benefits are not departmental (Page 30).
  • Given the aforementioned resistance to changes, it is not surprising that 20% of projects are focused on implementing current processes into PLM systems. This does limit the potential of increased benefits through process changes optimised by application capabilities.

What do you see are the greatest barriers for PLM to deliver the maximum benefits in your organisation?

Organisational complexities and legacy ways of working could be seen as the greatest barrier to change, which may in turn limit PLM’s value to business.

Figure 16: How are the benefits from PLM seen in your organisation?
Figure 16: How are the benefits from PLM seen in your organisation? (values in %’age)

Key Findings

  • 88% of PLM programmes are highly impacted by resistance to change.
  • 71% implementations are impacted by focus on other change programmes having more business focus and priorities.
  • Only 36% ignore the fact that seeing PLM as an IT tool prevents it from delivering benefits.
  • 97% are impacted by the siloed business processes that are not cross functional.

Conclusions

  • Resistance to change is a common roadblock to organisational transformation. Organisations must establish and adopt flexible culture and be ready sell the benefits of change to business owners.
  • Siloed business process present a major barrier for delivering maximum benefits. However, as seen previously1, most  companies with siloed business processes have started a consolidation process using PLM.

Notes

1 41% of PLM programmes aim to transform cross-functional processes