What’s the best approach for manufacturers to adopt a new PLM solution or migrate their solution to the cloud? Our new white paper introduces a business-value-driven cloud adoption process that puts business first and technology second, a “solution first” versus “cloud first” approach. The white paper shares practical advice on how to frame a software-as-a-service (SaaS) PLM implementation.

Please enjoy the summary* below. For the full research please visit our sponsor, Aras (registration required).

For related research, please read The State of Cloud PLM to gain insights to how the shift to the cloud is affecting PLM.

Table of Contents

• Introducing Business-Value-Driven Cloud Adoption
• Think Business Before Software
• Focus on Agility and Transformation
• Focusing PLM Migration on the Right Benefits
• Prioritize Functionality and Capabilities
• Favor Functionality with Flexibility
• Don’t Forget Enterprise and IT Needs
• Conclusions and Recommendations
• Acknowledgments
• About the Author

Introducing Business-Value-Driven Cloud Adoption

Cloud-based software-as-a-service (SaaS) is the clear path forward for enterprise software, and the cloud transition in PLM is underway. According to our research, about three-quarters of companies now favor, prefer, or mandate the cloud for their new software selections. But companies must be strategic about adopting cloud PLM. 

We recommend companies take a “solution first” rather than a “cloud first” approach. Companies are not in business to run software, it’s a means to an end. In the case of PLM, it supports conceiving, developing, producing, and maintaining high-quality, innovative products. Companies should view the cloud transition with the same lens. They should avoid migrating to cloud PLM just for the sake of being on the cloud. Instead, they should do it to fulfill their business strategy. 

If your company is considering implementing a new PLM system or migrating your system to the cloud, it’s essential to evaluate how cloud PLM helps you improve the way you work. The cloud offers a variety of compelling benefits, but letting business value drive PLM migration to the cloud will ensure your company selects the right solution (and partner). Then, the cloud just reduces the barriers to attaining your business goals.

Think Business Before Software

Putting first things first, let’s start with the business in mind. Do those setting the direction for your PLM solution know your business imperatives? Have they investigated how cloud PLM adoption helps or hinders achieving that value? The answer to that question is too frequently “no” because software selection teams often focus on narrow, functional criteria without seeing the big picture. 

PLM selecting teams must consider what would impact the success of their company. Our research on long-term business success and profitability reports relatively consistent findings from 2019 to the present. 

Customer relationships, digital transformation, long-term profits, product / service innovation, and workforce development are the most common profitability drivers. So why is so much of the emphasis on cost instead of benefits when you don’t see “short-term profits,” let alone “software cost,” at the top of this list? The business case for cloud PLM should focus on enabling broader strategies that drive innovation and profitable revenue growth. That’s much more strategic than reducing software spend. 

That’s why a “solution first” approach can be so valuable, because it enables the business value and ROI companies need from their PLM system.

Conclusions and Recommendations

The PLM SaaS migration has begun, but needs to focus on business value in order for companies to achieve the innovation and agility they need to drive growth and profitability. Companies must first ensure they get a solution that provides the mature functional capabilities they need to support a complete digital thread. They can do this by taking a “solution first” as opposed to a “cloud first” solution selection process. This approach will allow them to choose a functionally mature PLM solution that delivers the features they need for digital transformation and PLM business value while also providing the strategic values of the cloud, including collaboration, ability to access data anywhere, and scalability.

To optimize their SaaS PLM transition, companies must:

• Think business value before software requirements
• Focus on agility and the ability for PLM to drive transformation
• Value PLM capabilities and how they deliver business benefits over deployment options and IT cost savings

Manufacturers can now get a SaaS PLM solution that provides mature capabilities, cloud benefits, and the agility they need to meet their unique requirements. As the State of Cloud PLM 2002 report said, “Manufacturers need to carefully consider their chosen cloud PLM for its impact on:

• The ability to deliver the rich PLM capabilities they need to deliver value
• The need and ability to customize PLM 
• The requirements and limitations related to controlling PLM upgrade timing”

Now, they can meet these requirements and can enjoy the general benefits of cloud such as enhanced security, lower barriers to entry, and faster access to new capabilities as an added bonus. It’s time to make your move to the cloud.

This summary is an abbreviated version of the research and does not contain the full content. For the full research, please visit our sponsor Aras (registration required).

If you have difficulty obtaining a copy of the report, please contact us.