Cloud Technologies Bring PLM to All

Product lifecycle management (PLM) in the cloud, while still in its nascent stage, is changing the way many companies do business.

PLM software has typically been used by large enterprises to organize product data, enabling teams to collaborate through all of a product’s stages. However, the need to collaborate is ubiquitous across the value chain; that’s where cloud-based PLM is growing in importance.

PLM in the cloud is an internet-based system for managing a product and its associated information from the design stage all the way through to the end of that product’s life. The technology is used by numerous vertical markets in order to collaborate, track and regulate changes to the product. Similar to on-premise PLM, cloud PLM allows manufacturers to consolidate information about product development, streamline change orders and requests, and improve communication with suppliers. Because cloud PLM is available to anyone with an internet connection, it is an easier way to manage the complexities of product data, especially for companies with geographically dispersed organizations.

The main advantages of cloud-based PLM include:

• Easy implementation
• Facilitates innovation
• Better collaboration
• Low cost of ownership
• No hardware purchases
• Secure access anytime, anywhere
• No upgrade deployment delays
• Unlimited storage

“PLM is changing really quickly,” said John Laslavic, founder and CEO of Upchain, a PLM developer. “Cloud technology, among other factors like software-as-a-service models, has let companies like Upchain bring the benefits of PLM to businesses beyond enterprise organizations who can afford multi-million dollar software solutions by cutting the cost of PLM by upwards of 90 percent.”

This means that medium-sized companies and startups can now take advantage of the technology in the context of the internet of things (IoT) and Industry 4.0, which is a great first step, Laslavic said.

Garth Coleman, ENOVIA vice president of marketing at PLM vendor Dassault Systèmes, agreed that cloud PLM gives customers of all sizes access to digital transformation technology without the need for expensive hardware and complicated deployment roadmaps. Cloud PLM ensures that companies are using compatible software and prepares them to support future trends and capabilities, from wearable technology to next-generation CAD to anything else. The technology also allows smaller firms to compete with larger enterprises without huge investments in IT infrastructure, software or staff. Cloud PLM offers quick deployment and low upfront costs, Coleman said.

“There are also exclusive capabilities thanks to the cloud — continuous updates that are done by Dassault Systèmes, versus highly-customized on-premises deployments that are often several releases behind and are time-consuming and complex to upgrade,” Coleman said. “This allows the cloud customers to always benefit from the latest-and-greatest enhancements, and to ‘grow as they go.’”

Technavio forecasts the global market for cloud-based PLM will post a compound annual growth rate (CAGR) of more than 12% during the years 2018 through 2022. The market research firm said that in the Americas, cloud-based PLM could account for a market share of more than 63% by 2020. Much of that region’s growth will be attributed to the automotive sector’s increasing demand for cloud PLM, specifically through domestic manufacturing replacing outsourced parts.

Who Uses Cloud PLM?

Cloud-based PLM is emerging in a number of industries across the global value chain. Early adoption has been in the aerospace and transportation, sectors with many startups focusing on unmanned aerial vehicles (UAVs) and self-driving cars. The technology allows manufacturers to collaborate through the entire product development process on a single platform without information delays or discrepancies.

In the industrial market, products need to be precise, reliable and innovative to meet the needs of Industry 4.0 and the IoT. From initial design to mass production, cloud PLM is used to ensure streamlined development of high-quality of products that are delivered on time.

In the consumer electronics market, with an extensive network of global suppliers, constant product iterations are the norm and are necessary to keep up with the competitive landscape. Cloud PLM is a fit here because of the collaborative nature of the software, allowing people to access product data from anywhere.

The Future of Cloud PLM

What’s next for cloud PLM? The expanded use of the IoT will bring more capabilities to numerous markets that will be enhanced by PLM technology. Also, the rise of Digital Twin technology — a real-time digital replica of a physical device — will be expanded further, using cloud-based PLM.

“[Digital Twin technology] enables a complete virtual model of the real world, that can be simulated, tested, and optimized to not only improve the real delivery of the real object, but to help predict future outcomes based on real performance data and implement solutions well before failures occur,” Coleman said.