We’re Ready for PLM 3.0 – Are you?

We’re Ready for PLM 3.0 – Are you?

February 10, 2016

In its 20+ year history, PLM has constantly evolved and today, PLM is undergoing its greatest transformation yet, with the advent of PLM 3.0, also known as “PLM-as-a-Platform.” PLM 3.0 is helping companies realize new breakthroughs in time to market, cost reduction and responding to consumer demand.

PLM 3.0 doesn’t require you to scrap your current PLM system and that’s good news for companies that have already invested in PLM over the past decade. Let’s take a closer look at the evolution of PLM.

PLM 1.0: Product Data Management. In the early 1990s, with the shift to overseas manufacturing, fashion and CPG companies needed to a way communicate product data to factories on the other side of the globe, which gave rise to PLM 1.0: Product Data Management, or PDM.

The end product of PDM was the tech pack, which quickly became a universal communications document for companies that sourced products. Tech packs were distributed by email, enabling the rapid growth in global sourcing. There were limitations, though, which gave rise to the next wave of PLM innovation.

PLM 2.0: Where we are today. With the growth of the Internet, companies needed a web-based system that connected design, production and planning teams with factories and agents in real-time. Collaboration, calendaring and exception management were essential, which led to the development of PLM 2.0 in the early 2000s. PLM 2.0 covers concept to adoption, and that’s where most of the industry is today.

Today, when people think of PLM, they typically think of PLM 2.0. While the capabilities in PLM 2.0 are essential for product development, it doesn’t begin to unlock the complete potential of PLM to transform the entire product lifecycle.

PLM 3.0: The next step in PLM’s evolution. With PLM 3.0, the focus is on connecting the data and systems in your organization to drive better decision-making. PLM 3.0 takes PLM beyond its traditional role, turning PLM into an enterprise platform that shares data among key stakeholders in every department of your company, as well as third parties such as vendors, suppliers, product testing labs, logistics providers and more.

PLM 3.0 takes information from all organizational systems and data sources, shares and analyzes it, and executes decisions based on the results. Every stakeholder shares in the information, which is important, since issues in one part of the organization have ripple effects upstream or downstream.

This represents a big step forward from PLM 2.0. Today, issues that happen in production aren’t shared in a timely manner with decision-makers upstream, where problems can be resolved before they escaIate into full-blown crises. Companies that have a PLM 2.0 mindset believe in order to improve the final result, they need to improve the concept to adoption phase.

Planning is important, and companies must continue to improve here. But they need to get better at reacting, too, because even the best-laid plans can go awry. That’s where PLM 3.0 makes a huge difference.

To learn more about PLM 3.0 and how it can help change your business and give you the ability to react to the ever-changing business environment, check out NGC’s latest white paper, “Get Ready for PLM 3.0."