PLM Benefits Reference Model [2], Not Investing in BPM?, PDT Europe 2010
2PLM NewsletterJohn Stark Associates October 25, 2010 - Vol13 #15 |
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Welcome to the 2PLM e-zine This issue includes :
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| PLM Benefits Reference Model [2] by Roger Tempest |
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The PLM Benefits Reference Model (see October 11) opens the door to a radical transformation of the PLM marketplace. At present, implementing PLM is an uphill task for everybody, but the Model will mean that it becomes easier to adopt and develop PLM than to do nothing.
In the current PLM world, users have to develop complex feasibility and justification arguments from first principles, every time. The PLM team wants to move forward, and the rest of the organisation puts up resistance. Availability of the Model will greatly reduce the time currently spent by companies in identifying and justifying their potential benefits from PLM. Vendors are hampered because their own metrics are viewed with suspicion by customers, who feel that they may automatically produce an outcome that means buying more software. Availability of the Model as a neutral reference will allow vendors to show the validity of their own, more specific, calculations. Consultancies currently have to present PLM as a "black art" that only they can solve. Availability of the Model will make the common basics clear, and allow clients to decide based on the specialised expertise and detailed methodologies that they need. Development of the PLM Benefits Reference Model will be an international project:-
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The project itself will generate a wave of positive news about PLM, and benefits for the participants:-
In the PLM industry, the term "leadership" has come to mean "position on a magic quadrant". Mobilisation of the Benefits Reference Model will take real leadership, from organisations that are far-sighted enough to want to change the way that PLM will be in the future. The Model needs a Steering Group to give it authority, drive and direction. The Steering Group needs leading companies from all parts of the industry to join it and provide that direction. In particular, it needs user companies to act on what they have been thinking for a long time - that what we have now is not good enough. As well as Steering Group members, the project will need user companies of all sizes to take part in the ongoing consultation and benchmarking. This will calibrate the metrics and disseminate the methods, and is a great opportunity for companies in America, for example, to understand the kind of benefits that European companies are achieving: and vice versa. The discussion process about the structure and timescales of the programme continues, and we would like to talk to anyone who might like to be involved. If you think that your organisation might like to take part then we would be glad to give you more information. Roger Tempest is co-founder of the PLMIG. You can request more information via brm@plmig.com
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| Not investing in BPM? by Scott Cleveland |
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According to the 2009 BPM Market Report, reasons why respondents had not invested in BPM software included use of workflow management inside other enterprise software [like ERP]; inability to find a project sponsor [desire is there, but no funding]; inability to demonstrate a compelling business case; lack of internal motivation.
My Thoughts.... I will take on these in reverse order.
Lack of internal motivation - I can't understand this one. In this economy, competition is fierce. How will you win your share of the business? Either you get more customers to maintain your profits, or you must be more efficient to increase your profit margins. This is a perfect time to increase your market share. Unable to demonstrate a compelling business case - Every return on investment analysis that I have performed shows that BPM can pay for itself within a year. I contend that not enough time has been spent to analyze the financial benefits.
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Unable to find a project sponsor - If you do a good job building a compelling business case, finding a project sponsor should be easy.
Using workflow management inside some other enterprise software - Most charge for their workflow capabilities, and those capabilities are not the best. Before making that decision, I recommend that you perform due diligence comparing the alternatives. What does it all mean? More efficient business processes lead to increased revenues, lower costs and improved customer relationships. It can differentiate you from your competitors. It can be the key that allows your company to break out as the market leader. Your Thoughts....
What steps has your company taken to be a market leader?
Scott Cleveland can be contacted on +1 408-464-6387
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| PDT Europe 2010 Conference |
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| Eurostep is pleased to officially announce the PDT Europe 2010 conference to be held November 16-17 at the Microsoft Campus in Reading, UK. |
This year's theme is "Standards based PLM for Global Innovation and Collaboration".
To view the agenda please visit www.pdteurope.com. |
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