How to Solve PLM & ERP – Implementation Options

In my previous article How to solve PLM & ERP, I explored the challenges and complexities involved in integrating PLM (Product Lifecycle Management) and ERP (Enterprise Resource Planning) systems. The feedback and comments from readers have been incredibly insightful, and I want to thank everyone who contributed their thoughts and experiences. One of the most important feedback was related to the implementation of unified information model in practice. What does it mean for companies and software selection? If you’re PLM architect in the manufacturing OEM implementing PLM system or supply chain management solution, how you can improve PLM-ERP implementation process today? And if you’re PLM software vendor or a company providing software implementation services, how it can help you to develop better products and provide services for your customers.

Today, I want to dive deeper into the various business systems implementation options for PLM-ERP integration, examining historical approaches and modern solutions. For system architects it is an opportunity to think about various process management options for complex product lifecycle management and supply chain. Also, it triggers a question about the role of product data in different disciplines such as product’s lifecycle, project management, customer relationship management, and production process.

The Necessity of Both PLM and ERP

I think, the industry is finally came to the consensus about the role of both PLM and ERP systems. Most of companies I’m talking to see the necessity of both (except of maybe some SMB/SMEs that still dream to connect CAD systems directly to ERP. If you’re still at this phase of your company development, check this article – CAD to ERP integration controversy. Beyond that point, let’s agree that both PLM and ERP are essential for manufacturing companies, each serving critical functions. PLM manages the lifecycle of a product and focuses on product data from inception through engineering design and manufacturing. At the same time, ERP focuses on the business processes, including production, inventory management, and order processing.

However, the ideal solution to seamlessly integrate these systems remains elusive despite decades long attempts to make these integrations happening using multiple approaches and technologies. Let’s talk about them.

Historical Approaches to PLM-ERP Integration

Over the years, several methods have been employed to bridge the gap between PLM and ERP systems. Here are four significant approaches:

Batch Integration

This method involves periodic data transfers between PLM and ERP systems, typically through file exchanges or batch processing. Many CAD-ERP links fall into this category. While this approach can work, it often leads to data synchronization issues and delays, as the data is not updated in real-time for continues process. At the same time, it is a great step for anyone to understand the details about how product data can be transferred between both systems.

Out-of-the-Box (OOTB) Integration

There always believe that building a specific end-to-end use case with out of the box solution is the best approach. A prime example of this approach is the multi-year project undertaken by Siemens and SAP to integrate with Teamcenter. Check Engineering.com article and also materials on both SAP and Siemens websites. This massive investment aimed to provide a pre-configured integration solution. If you had an experience in using this integration, please share your firsthand comments.

Hub Architecture or INaaS

Integration as a Service (IaaS) is a cloud-based model that allows businesses to connect data from different systems and applications, both on-premises and in the cloud. IaaS enables real-time data exchange and sharing between systems and third parties, which can help businesses gain agility, automate processes, and improve services.

In this approach, an integration hub acts as an intermediary between PLM and ERP systems. This architecture is common in enterprises and often includes additional services to manage the data flow. While many solutions exist in this space, they can require significant customization and ongoing maintenance.

Custom Direct Integration Using APIs

With the rise of REST APIs and cloud-based systems, custom direct integration has become more popular. This approach offers flexibility and real-time data synchronization, allowing companies to tailor the integration to their unique processes and requirements.

The Unified Information Model: A New Way or Just a Technology?

The creation of a unified information model represents a blend of both a new way and an enabling technology. Let’s explore the implementation layers of various PLM-ERP integration solutions:

Technology

This layer encompasses the underlying databases, semantic technologies, graph databases, and other data management tools. Advances in these technologies provide the foundation for more robust and scalable integration solutions. From a technological perspective, unified information model provide a rich data set that can be used by all product PLM, ERP and other solutions to integrate the information and translation options.

Data Modeling

Effective integration requires a well-defined data model that can bridge the gap between PLM and ERP systems. A graph-based data model is a promising candidate, offering the flexibility to recombine and reuse information for various purposes. The biggest advantage of graph data model is robustness of data set integrations. You can merge to graphs without mapping and explore data sets.

Process Tools

This layer includes the tools and systems used to manage and automate business processes. Depending on the situation, PLM or ERP systems can host the integration, or a separate system of engagement may serve as the integration host. While introducing of new services to enterprise is a tricky option, these days, cloud SaaS is a way to easy provide solutions and connect tech and organizations.

Integrated End-to-End Processes

This is the area where most debates occur. Deciding which system should host the end-to-end process is highly specific to each company’s needs. The goal is to create seamless workflows that enhance efficiency and data accuracy. I expect implementation to happen in both existing systems and new solutions introduced for enterprises.

How Unified Information Models Can Help

Unified information models can simplify and enhance PLM-ERP integration in several ways. Drawing an analogy to SQL, which became mainstream in the 1990s, graph-based information models are now at a similar stage of maturity. The introduction of Graph Query Language (GQL) is a significant milestone, offering a standardized way to manage and query graph databases. Scalable graph databases and online services can serve as a robust implementation layer, facilitating more efficient and flexible integrations.

What is my conclusion?

Implementing a solution for PLM-ERP integration is not a one-size-fits-all scenario. We will continue to see a variety of use cases and technological advancements. Modern cloud SaaS solutions have the potential to introduce innovative services that support plug-in solutions, build advanced data models, and leverage AI to bridge the gap between PLM and ERP systems.

These are just my thoughts, and I look forward to continuing the conversation with all of you. The journey to solving PLM-ERP integration is ongoing, and together, we can navigate the complexities and uncover the best solutions.

Best, Oleg

Disclaimer: I’m the co-founder and CEO of OpenBOM, a digital-thread platform providing cloud-native PDM, PLM, and ERP capabilities. With extensive experience in federated CAD-PDM and PLM architecture, I’m advocates for agile, open product models and cloud technologies in manufacturing. My opinion can be unintentionally biased.