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Customers

european-plm-cloud

Cloud is raising lots of controversy in Europe. While manufacturing companies in U.S. are generally more open towards new tech, European rivals are much more conservative. Many of my industry colleagues in Germany, France, Switzerland and other EU countries probably can confirm that. Europe is coming to cloud systems, but much slower. I’ve been posting about cloud implications and constraints in Europe. Catch up on my thoughts here – Will Europe adopt cloud PLM? and here PLM cloud and European data protection reforms. These are main cloud concerns raised by European customers – data, privacy and specific country regulation. With companies located in different places in EU, it can be a challenge.

Earlier today, I’ve heard some good news about cloud proliferation in Europe coming from Microsoft. TechCrunch article – Microsoft’s Enterprise Cloud Services Get A Privacy Thumbs Up From Europe’s Data Protection Authorities speaks about the fact Microsoft enterprise cloud service meets the standards of data privacy in several European countries. Here is a passage that can put some lights on details and what does it mean:

But today comes a piece of good news for Redmond: the data protection authorities (DPAs) of all 28 European member states have decided that Microsoft’s enterprise cloud services meet its standards for privacy. This makes Microsoft Azure, Office 365, Microsoft Dynamics CRM and Windows Intune the first services to get such approval. The privacy decision was made by the “Article 29 Data Protection Working Party,” which notes that this will mean that Microsoft will not have to seek approval of individual DPAs on enterprise cloud contracts. In its letter to Microsoft (embedded below), chair Isabelle Falque-Pierrotin writes, “The MS Agreement, as it will be modified by Microsoft, will be in line with Standard Contractual Clause 2010/87/EU… In practice, this will reduce the number of national authorizations required to allow the international transfer of data (depending on the national legislation).”

Majority of PDM / PLM providers are friendly with Microsoft tech stack. Some of them are completely relies on MS SQL server and other Microsoft technologies. Most of them are supporting SharePoint. Now, these PLM vendors have an additional incentive to stay with Microsoft technologies for the cloud. It can be also a good news for manufacturing companies already deployed PDM/PLM solutions on top of Microsoft technologies and developed custom solutions.

What is my conclusion? The technological landscape these days is very dynamic. The time, one platform worked for everybody is over. In light of technological disruption and future challenges tech giants will be using different strategies in order to stay relevant for customers. Will European cloud regulation keep PDM/PLM players with MS Azure and other Microsoft technologies compared to alternative cloud technological stacks? How fast will take to other players to reach the same level of compliance? These are good questions to ask vendors and service providers. Just my thoughts…

Best, Oleg

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Why PLM stuck in PDM?

by Oleg on April 5, 2014 · 2 comments

plm-stuck-pdm-round-square

I’ve been following CIMdata PLM market industry forum earlier this week on twitter. If you’re are on twitter, navigate here or search for #PLM4UM hash tag on twitter. The agenda of PLM forum is here. The following session discussed one of my favorite topics- PDM v PLM. PLM: Well Beyond Just PDM by Peter Bilello. This passage is explaining what the session is about

CIMdata’s research reveals that leading industrial companies are looking to expand beyond PDM functionality to truly enable a more complete PLM strategy. This becomes even more important in a circular economy. In this presentation, CIMdata will discuss which areas are most important, and what opportunities they create for PLM solution and service providers.

My attention was caught by the following tweets coming from this session:

According to CIMdata, leading Mfrs are now looking to move beyond PDM. #PLM4um
— ScottClemmons (@ScottClemmons) link to tweet.

Peter B / CIMdata explains that it’s hard to find a ‘real’ end-to-end #PLM implementation hat works #plm4um
— Marc Lind (@MarcL_) link to tweet.

It made me think why after so many years of PLM implementations, most of vendors are still solving mostly PDM problems for  customers and it is hard to move on into broad downstream and upstream adoption of PLM beyond CAD data management functions. Here are my four points explaining in a nutshell why I think “PLM stuck in PDM”.

1- Focus on design and CAD. 

Most of PLM vendors historically came from CAD-related domain. Therefore, PLM business for them was the expansion of CAD, design and engineering business. As a result of that, use cases, business needs and customer focus were heavy influenced by design domain. The result – PDM focus was clear priority.

2- PLM is a glorified data management toolkit 

The initial focus of many PLM systems was to provide a flexible data management system with advanced set of integration and workflow capabilities. There are many reasons for that – functionality, competition, enterprise organization politics. Flexibility was considered as one of the competitive advantages PLM can provide to satisfy the diversity of customer requirements. It resulted in complicated deployments, expensive services and high rate of implementation failures.

3- Poor integration with ERP and other enterprise systems

PLM is sitting on the bridge between engineering and manufacturing. Therefore, in order to be successful, integration with ERP systems is mandatory. However, PLM-ERP integration is never easy (even these days), which put a barrier to deploy PLM system beyond engineering department.

4- CAD oriented business model 

Because of CAD and design roots, PLM sales always were heavily influenced by CAD sales. Most of PLM systems initially came to market as a extensions of CAD/PDM packages. With unclear business model, complicated VARs and service companies support, mainstream PLM deployment always focused on how not to slow CAD sales.

What is my conclusion? Heavy CAD roots and traditional orientation on engineering requirements hold existing PLM systems from expanding beyond PDM for midsize manufacturing companies. The success rate of large enterprise PLM is higher. But, it comes at high price including heavy customization and service offerings. Just my thoughts…

Best, Oleg

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Why hard to sell PLM over the phone

by Oleg on February 26, 2014 · 0 comments

plm-telesales

Life is transforming around us. Technology and communication are coming to our personal and business life. So, it comes to enterprise sales and PLM. The debates between new sales models and enterprise sales old schoolers are heating up. I posted about it last year and enjoyed many lovely conversations with sales people. My conclusion after that was – sales requires good organization and belief. Few weeks ago, I came with the idea of PLM sales cheat sheet outlining some important principles of how successful sell PLM to organizations.

Do you think you can successfully sell PLM over the phone? Personally, I haven’t heard about such examples. However, maybe new type of communication can help us. I was looking for some good examples of enterprise telesales to identify the pattern for success.

Mark Benioff is coming with some examples of CRM telesales in his book – Behind the cloud. The book is an easy read and fun – I recommend it to everybody if you have some free time. Play #41 from this book – telesales works (even though everyone thinks it doesn’t) was repeat in the following salesforce.com blog post. Mark brings top 5 points for a winning conversation in a successful sales call: Leverage the experience the prospect has had with other solutions; Introduce the value your product offers; Provide success stories from customers; Verify success stories by offering customer testimony; Provide a customer for the prospect to contact.

These points seems logical and simple. I was trying to apply it to my experience and compare to my notes from conversations with sales people to see and analyze how it can be applied in PLM sales. Why PLM sales conversation over the phone is hard? I put some of my thoughts below:

1. Leverage the experience the prospect has had with other solutions.

PLM competition (as well as previous customer experience) can be separated into two large groups – existing PDM/PLM solutions and homegrown systems. The first group is usually a result of heavy investment company made for the last 5-10 years. Second group is a solution developed by internal people (often with heavy inclusion of Microsoft Excel, Microsoft Office and other non-PLM specific tools). From my experience, it is very hard for customer to summarize main pain points. Companies are looking for more functions and lower TCO. Very often customer is not transparent about the existing PLM system situation, especially when it comes to the need to retire existing system (PLM vendor shifts to another solution/version) and existing solution is draining into problem. In a generic way, experience can be summarized as high cost, complexity and absence of specific functions. If you succeed to come to the last points, it will be clearly the success in your call, since you will be able to build your sales strategy based on these missing functions.

2. Introduce the value your product offers.

As I speak in my blog about PLM differentiation, many of them are very complicated to explain. Marketing story looks great – low cost, easy implementation, streamline your company processes, etc. However, devil is in details and the story about them is long and complicated to be told to a single phone call.

3. Provide success stories from customers.

PLM companies have large set of successful implementation stories. The problem with these stories – they all look the same on the high level – “we (company) had a problem in engineering and manufacturing process, complexity of competition, bad collaboration. With XYZ PLM solution we succeeded to solve these problems and our life is good”. It is very rare (but possible) to see PLM specific examples of what process and how company improved their work environment with PLM, rather than say it is good now.

4. Verify success stories by offering customer testimony.

PLM implementation testimonial are too generic and raising too many questions from too many people in the company. It goes way beyond what is possible to answered via phone and/or WebEx session.

5. Provide a customer for the prospect to contact.

In my professional life, I never had a problem to provide reference customer to call. However, I’ve heard that on a broad scope engineering and manufacturing organizations tendency is less speak about how their working processes are organized. The diversity of manufacturing organizations plays another role and making “apples to apples” comparison very hard.

What is my conclusion? The uniqueness of existing PLM solutions and sales is high level of engineering and technical complexity. So, to maintain a successful PLM sales conversation you probably need to bring in some specific technical / functional use cases and pain points the solution you are selling can solve in a unique way. It will help you to win over the customer mind and build a foundation to continue sales process. Just my thoughts…

Best, Oleg

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CAD, Engineers and Online Communities

February 19, 2014

Remember our life before internet? The meaning of community was about social group that shares common values. Actually, the history of communities is longer than history of CAD software . So called “Community Rules” were mentioned in one of the first scrolls found in Qumran Cave. Community word often explains common geography or environment. However, […]

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PLM Role in Different Manufacturing Environments

February 9, 2014

One thing doesn’t fit all in engineering and manufacturing. Every manufacturing company is trying to innovate and differentiate the way they design and build their products. It comes in variety of ways and PLM system can play different roles depends on the type of manufacturing. PLM vendors are trying to deliver software tailored to a […]

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Why My PLM Won’t Work For You?

February 6, 2014

To implement PLM is a process and change. Speak to anyone in engineering and manufacturing community and they will bring you lots of stories about complexity of PLM implementations and associated cost. Also, you can hear lots of stories about complexity of moving from one PLM implementation to another or switching from one PLM system […]

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PLM and Magic of MBOM planning

January 21, 2014

Manufacturing BOM (MBOM) is an interesting topic. After all design and engineering operation,  MBOM defines how product is going to be actually manufactured. While most of PLM / ERP debates about MBOM are going around “who owns what”, the most fascinating part that I found in MBOM is related to the nature of manufacturing planning. The […]

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PLM Sales Cheat Sheet

January 20, 2014

I have to admit – I don’t have formal sales education. My childhood was mostly influenced by math and tech. Technology has a smell of precision and knowledge. At the same time, sales appears to be manipulative. I can try to blame Soviet Union regime, but it doesn’t matter now. I was wrong. The understanding of […]

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Why PLM can be infected by digital schizophrenia?

November 13, 2013

Our life is getting more complex everyday. The time when we’ve been localized by our personal computer and document files gone forever. The complexity came from connectivity – networks and emails. For the last decade it was exposed even more with the web and mobile. We are overloaded with the information coming from different places […]

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Will Tesla Motors build their own PLM system?

November 4, 2013

History of CAD and PLM development knows examples of home grown systems. 20-25 years ago, the idea to build their own CAD and PDM system was considered as an absolutely normal option. Since that time, many things changed. In my view, the last decade clearly demonstrated PDM/PLM trend towards using more OOTB (out-of-the-box) and ready […]

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