A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

What will be the future potential cost saving with PLM 2.0?

What will be the future potential cost saving with PLM 2.0?
olegshilovitsky
olegshilovitsky
27 May, 2009 | 3 min for reading

Web 2.0 and following 2.0 technologies came to us a few years ago (around 2003 and 2004) and changed the way people interact with the Web. Web 2.0 created a massive wave of 2.0 and social technologies (including Enterprise 2.0) and changed the way people work in many areas in our lives. Back in 2008, PLM companies such as DS and PTC introduced new offerings (PLM 2.0 and Social Product Development) based on concepts of Web 2.0 and social development. I’d like to discuss the various aspects where future PLM 2.0 technologies can impact what we are doing today in and around PLM.

One of the important characteristics of the future PLM 2.0 is the potential cost saving factor for enterprises. Usage of Web 2.0 has changed the way enterprises work. Here are my potential cost saving factors for companies implementing future PLM 2.0 technologies:

1. Optimize communication, reduce email, streamline processes

Social tools and the internet can simplify communication. People are more connected and easily communicating. Open social communication reduces the need for email and simplifies processes. Collaboration will be easy. You will easily be able to find relevant people to communicate to inside and outside the organization. Companies will reduce online storages (i.e. for mails) and will move gradually to cloud-based services.

2. Improve information transparency

Product data and related information will become more available. You will be able to easy share information outside of the engineering organization, collaborating with people downstream – in manufacturing and sales – as well as with people in the value chain. Social tools such as wikis, blogs and others will establish a more transparent layer of information sharing.

3. Reduce IT costs

There are two main sources of IT cost reduction. First of all, PLM 2.0 rely more on internet and other social resources that have a much lower cost compared to dedicated corporate IT expenses. Secondly, the ability to share resources (corporate and public clouds) will bring additional IT savings.

4. Reduce integration costs

Usage of Internet technologies will lower the cost of integration. The use of open Web-based technologies will streamline the ability to integrate data and systems across the enterprise and value chain. You can use Mashup and other Web tools to manipulate, mix, and share data among people and applications.

5. Reduce printing services

Development of various connectivity and information share options will decrease the need for printing services. This will happen in organizations as a result of the wider availability of information outside of an organization – in the sales and supply chains. Wide usage of internet and mobile devices will reduce the need for paper materials.

6. Change trend in software cost

Last, but not least. The leverage of Internet, Web 2.0 and other 2.0 technologies brings a stream of new providers to the PLM eco-system. These providers are less dependent on legacy, on-premise product offering and maintenance revenue streams. These companies will be more dynamic and will drive the software cost trend down. Many companies will be leveraging this new trend.

I think that the future of PLM 2.0 is good, but still very challenging. We have seen dramatic changes in Web 2.0 and changes that the following technologies made in our life and on social communication. I’m sure that PLM 2.0 has a great potential and am looking forward to your opinions and discussions.

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