PLM vs. ERP – Don’t Manage Innovation!

I was reading Tech Clarity insight “Evolving Role of ERP and PLM“. The topic of PLM and ERP is not new. However, I was always looking for detailed analyzes of PLM and ERP functions and roles in the organization, especially taking into account latest technological and social trends. You can find the report on this link. It provides 15 pages of analyzes, and, I think, this is the biggest publication from last time I had chance to see about PLM and ERP together.

Below my notes, emphasizing points of agreements and disagreements with Jim’s report:

Distinct roles of ERP and PLM
The roles of PLM and ERP are blurred in the organization. For the last years ERP companies successfully acquired and developed their PLM portfolio. So, their presentation of PLM as “Yet another app in ERP portfolio” was quite successful. PLM fights ERP heavily on their ability of manage product and engineering data. Unfortunately, instead of becomes an ultimate product and engineering data shop, PLM is running upstream by trying to establish themselves as “Innovation Management”… This is something that made me feel bad. Don’t try to manage innovation! You just cannot…

Design and product data management
The need for design and product data management one is clear for me.This is undervalued zone. What exist today as a mainstream PDM is only top of the big iceberg. I think PLM needs to get back to the roots and fix PDM topic. Otherwise future crash is the only question of time. PLM needs to define themselves as “product data unbreakable”. Not what happens today, in my view.

Cross functional processes.
There are no PLM or ERP processes. There are “organizational processes”. Therefore, the process’s problem cannot be resolved in PLM or ERP separately. The step toward BPMN can be good for PLM. It will set up openness to the right level and will establish a spot for process improvement in the organization.

PLM and ERP integrations
This is a hugely disappointing topic. The PLM/ERP integration reminds me ball in the air when both players are trying to keep him flying and not landing.  Demand for data integration is huge. I’d expect here some technological thinking and not process-organization. Until now, this is in complete ownership of services and smaller partners developing specific integration application.

Where does PLM stop and ERP begins?
Don’t even try to put this border. To establish this border is the same like to establish gatekeeper on the firewall between engineering and manufacturing. In my view, this is a huge mistake. We need to work toward removal of this wall by using appropriated technologies, methodology, collaboration and social application.

What is my conclusion after all? I can identify two PLM trends. (1) Cross organizational processes. By ability to connect and interplay different organizational process, PLM can be in unique role in the organization representing a product-oriented activities. (2) Future design excellence, 3D tools, consumer-oriented experience.

PLM and ERP need to stop fighting in the organization. As a first step, PLM needs to take the next level in the organization and embrace a cross-functional processes and organizational needs that cannot be served by any of existing systems.

Just my thoughts.
Best, Oleg