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.

Recent Posts

Also on BeyondPLM

4 6
23 April, 2023

As the manufacturing industry continues its digital transformation journey, Product Lifecycle Management (PLM) systems are becoming more critical for industrial...

9 March, 2009

I’ve been observing a significant increase in the availability of personal services in today’s software and solution offerings. Many examples...

13 June, 2017

Experience is a new mantra in our world. Software vendors are taking it sometimes to extremes by starting to offer...

23 March, 2011

What do you think about the role of standards in CAD and PLM? Some of recent development in Open Standards...

16 July, 2023

The manufacturing industry is transforming and digitalizing. Managing data is becoming extremely important in the modern digital world. In the...

30 October, 2014

Enterprise IT adoption cycle diagram made by Simon Wardley made me feel sad and funny at the same time. I found...

23 November, 2011

Have you heard about “Consumerization” in IT? I’m sure you had a chance to read about  this trend. If not,...

24 March, 2020

Nobody Gets Fired For Buying IBM. I’ve heard this phrase many years ago when I was learning nuts and bolts...

24 June, 2023

What is the biggest value asset of your brand? Two decades ago, I attended a management couch session where the...

Blogroll

To the top