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1. High Performance PLM:
Key Success Factors for PLM Strategy, Implementation, and Adoption
Data and Analysis from Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

2. The Bottom Line
An international survey of 190 manufacturing companies by Tech-Clarity and PTC Global
Services highlights FOUR KEY SUCCESS FACTORS that distinguish high
performers in Product Lifecycle Management (PLM) from the rest of the pack:
→ Strategic business alignment
→ Process-based solution design
→ Reduced customization of PLM software
→ Comprehensive, role-based learning and adoption
Most executives understand that each of these can be important contributors to PLM
success. But the practical reality is that the companies that actually follow these approaches
in detail achieve business results far greater than those which take shortcuts in planning,
implementation, and adoption.
In fact, the high performers in the survey achieved RESULTS FIVE TO TEN
TIMES GREATER than the others in the top three business metrics: improving time to
market, increasing product development efficiency, and reducing product cost.
This eBook provides data and key findings from the survey. To learn more about the survey,
please see the contact information on page 18.
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3. The Challenge
PLM solutions have always involved large, complex software implementations – and these are never easy
in an enterprise environment. As the scope of PLM programs has grown in recent years, these imple-
mentations often require collaboration across multiple functions and processes across the organization.
Indeed, according to the analyst firm Gart ner, “PLM applications rank among the most vital for
accelerating delivery and supporting new innovative products, and THEY RANK AMONG
THE MOST COMPLEX TO DEPLOY.”
Resource
Speed vs. Scope
Limitations
Legacy Processes Investment
and Systems Timing
Organizational Short- and
Dynamics Long-Term Value
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4. About the Survey
Tech-Clarity & Global
Services
In April 2012, PTC Global Services, the consulting and training arm of PTC, joined forces
with Tech-Clarity, an analyst firm that specializes in product life cycle management, to survey
manufacturing executives in Europe and North America about their experiences with PLM.
The goal of the survey was to understand key success factors in planning, implementing,
and adopting PLM solutions in complex manufacturing environments.
The telephone survey* focused on senior business and IT leaders with current PLM experi-
ence, and highlighted four types of questions:
→ Strategy and approach to PLM
→ Challenges
→ Implementation and adoption techniques
→ Results
Survey participants included representatives of a wide range of manufacturing companies
with commercial software-based PLM solutions in place.
* The survey was conducted by ITSMA, an independent research and consulting firm that specializes in IT services and solutions,
on behalf of Tech-Clarity and PTC Global Services.
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5. The survey included 190 senior representatives from aerospace,
Survey automotive, consumer product, high tech, industrial, and other
manufacturing companies. The majority of participants worked
Participants on the business side of their organizations, and all participants
had direct experience with PLM solutions.
Senior Business IT
Years with PLM Solution
4 + Years 0-1 Year
1-2 Years
2-4 Years
$1 B +
North America Europe
$500-999 M
$400-499 M
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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6. Business Objectives
Manufacturing companies today are looking to PLM to support a broad range of business objectives. As PLM has
evolved from its historical roots in product data management inside the engineering department, it has now
become a broad-based business program with implications across the organization.
Improve sourcing or
supply chain performance Reduce product cost
Improve time to market Improve product
Business development efficiency
Objectives
for PLM
Improve product quality Improve service
operations or profitability
Increase product innovation Develop more sustainable/
green products
Note: Up to three responses allowed.
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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7. Operational Objectives
To support their business objectives, companies are focusing on PLM solutions that can support a broad range of
operational and technical improvements, including automating and standardizing processes, integrating systems,
and improving global collaboration.
Standardize
business processes Integrate development
Automate/streamline & execution (PLM & ERP)
manual processes
Operational
Provide a single source
of information Objectives Make it easier to
find information
for PLM
Consolidate IT Improve internal
systems communication
Improve external and collaboration
Support distributed/ communication
global teams and collaboration
Note: Up to three responses allowed.
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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8. Most Companies Have Achieved Their Goals for Operational Improvements
On a purely operational level, survey participants reported that they have done well or very well in achieving their
desired improvements in information management, process automation, and internal communication.
3.9 5
X
1
Consolidate IT
systems Not well Very well
3.9 5
Make information
X
1
easier to find Not well Very well
3.7 5
X
1
Improve internal
communication Not well Very well
Standardize 3.6 5
X
1
business processes Not well Very well
Improve supplier/
3.5 5
X
1
customer collaboration Not well Very well
3.4 5
X
Support global product 1
development teams Not well Very well
Note: Mean rating based on a 5-point scale where 1=not well and 5=very well.
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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9. Overall, However, Companies Have Achieved Only Modest
Improvements in Key Business Metrics
When we look at overall business results, however, the story is more mixed. Average percentage improvements in
the top three business metrics are not bad. However, they are not the kind of results that companies often expect
when committing large investments to new solutions and new ways of working.
15%
(% improvement)
10%
5%
3 % 4 %
2 %
0%
Time to Market Product Development Efficiency Reduced Product Cost
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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10. High Performers Have Achieved Substantially Greater Results
In the survey, 22% of respondents stood apart
as high performers. The high performers have
achieved substantially greater improvements in
the top business objectives, five to ten times
greater than the results of the average and
lower performing companies.
15%
13.3%
(% improvement)
10% 8.9%
5.8%
5%
1.5% 1 %
.3 1. %
1
0%
Time to Market Product Development Efficiency Reduced Product Cost
- High Performers - Low Performers
Note: High performers are those companies with the best business results across the top three business objectives.
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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11. Patience is a
Virtue
High performers tend to have more experience with PLM. This is not much of a surprise. PLM is a big change initiative.
It takes time to get comfortable with new ways of working, new capabilities, and new systems.
Years with a PLM Solution* 62%
39% 37%
24% 22%
16%
0-
2-
4+
4+
0-
2-
4
4
2
2
ye
ye
ye
ye
ye
ye
ar
ar
ar
ar
ar
ar
s
s
s
s
s
s
High Performers Low Performers
* Indicates a statistically significant difference.
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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12. High Performers Have a Broader Scope of Implementation
Across Processes and Departments
The high performers also tend to have a broader scope of implementation. First, they tend to include more business processes with
their program, such as quality planning.
Second, the high performers tend to involve more functional areas across the business, too. Most companies involve engineering, of
course, and many include manufacturing and supply chain. High performers are also more likely to include the quality organization,
sales and marketing, and/or general management.
* *
Number of processes implemented Number of departments using PLM
5.3 4.5 4.4 3.
1
High Performers Low Performers High Performers Low Performers
* Indicates a statistically significant difference. Check out Jim Brown’s blog post on “Broader Scope PLM.”
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 http://blogs.ptc.com/2012/06/12/broader-scope-plm-yields-greater-business-value/
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13. The Most Significant Differences Relate to HOW Companies
Plan, Implement, and Adopt PLM
High Performers
Learning & Adoption
Software Implementation
Solution Design
Low Performers Strategy and Planning
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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14. High Performers Are More Likely to Align Strategy
and Use Detailed Roadmaps and Scorecards
Most program managers understand that program risks increase dramatically if the organization is not well
aligned around the strategy, key objectives, investment requirements, and timeline. But the survey data
suggest strongly that it is the depth and breadth of that alignment and the detail of the planning that
matter most.
Aligned PLM strategy with business strategy*
46% 63%
(% of Respondents)
Developed executive agreement on value 41% 49%
Created detailed implementation roadmap*
36% 76%
t
Star
Managed implementation with value scorecard*
34% 51%
Read Rob Leavitt’s blog post on 6 Steps to Effective PLM Planning
http://blogs.ptc.com/2012/05/28/slowing-down-to-speed-up-6-steps-to-effective-plm-planning/
Note: Multiple responses allowed. *Indicates a statistically significant difference. Low Performers High Performers
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
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15. High Performers Prioritize Business Process
Improvement and Use Software to Enable Change
The relationship between process change and software change is always a tricky one with large technology solutions.
The business value comes from changing the way we work, but it’s usually the software that enables those changes.
The high performers are more likely to focus first on process improvement, and then on application and system change to
support the improvements. An integrated process is best to make sure that process change doesn’t get too far ahead of
software capabilities. Customizing new software to support old processes tends to be the least effective approach.
40%
39%
30% 35%
22% 22%
20%
22% 21%
17%
10% 15 %
0%
Processes & Software Processes Improved Process Improvements Based Software Customized to
Improved Concurrently* Independently on Software Definitions Support Existing Processes*
Note: Multiple responses allowed. * Indicates a statistically significant difference.
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
Low Performers High Performers
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16. High Performers Customize their Software Less
With all enterprise solutions, the mantra in the marketplace today is “off the shelf.” We don’t want to get
bogged down in expensive software customizations that end up costing more, taking longer, and creating
systems that are more expensive to maintain and less flexible for future expansion, integration, and upgrades.
The reality is that most companies are still doing a fair amount of customization but the high performers are
doing a bit less than the others. And because the high performers typically have had their solutions longer, the
data suggest that they have made a greater effort to minimize customization.
40%
32%
37%
30%
18% 28% 28%
20% 15% 13%
10%
13%
10% 9%
0%
No Customization Significant Customization
Note: Mean rating based on a 5-point scale where 1=no customization and
5=significant customization.
Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
Low Performers High Performers
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17. High Performers Take a More Strategic Approach
to Organizational Learning and Adoption
The best designed PLM solutions accomplish little if the users fail to accept the changes and integrate the
new processes and tools into their daily work.
Similar to the up-front strategy and planning, the reality is that many companies under-invest in organizational
learning and adoption. In contrast, the high performers are more likely to take a strategic and more
comprehensive approach, including strategic planning, organization-wide communication, and role-based training.
Strategic plan for training and adoption*
41% 63%
(% of Respondents)
Built awareness of need for change 45% 59%
Custom training for different roles*
31% 51%
Training or “sandbox” test environment*
19% 51%
Read Rob Leavitt’s blog post on 4 Keys to Ensuring PLM Adoption
http://blogs.ptc.com/2012/05/29/4-keys-to-ensuring-plm-adoption/
Note: Multiple responses allowed.
* Indicates a statistically significant difference.
Source: Tech-Clarity and PTC, PLM Key Success Factors Survey, 2012 Low Performers High Performers
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18. Get in Touch!
Interested in learning more about the research? Want to talk about the implications for your organization?
Have a related experience to share? Please get in touch and let us know. We’d love to talk.
For more Insights from the Global About the Author
Services team, please visit Rob Leavitt is Director of Thought Leadership at PTC Global
Services, the consulting arm of PTC. A long-time advisor to
blogs.ptc.com/category/strategy/. top technology and IT services firms, Rob works with PTC
consultants, partners, and customers to advance
understanding of key issues and challenges in product
Or scan this code development, manufacturing, and after-market service.
with your mobile device. Contact Rob at: Rob Leavitt, Director of Thought Leadership
PTC Global Services
Rleavit t@ptc.com
+1-781-370-5719
Twit ter.com/PTC_Consult ing
© 2012, Parametric Technology Corporation (PTC). All rights reserved. Information described herein is furnished for informational use only, is subject to change
without notice, and should not be construed as a guarantee, commitment, condition or offer by PTC. PTC, the PTC logo, Creo, Pro/INTRALINK, Windchill, Windchill
PDMLink, Windchill ProjectLink, Pro/ENGINEER and all PTC product names and logos are trademarks or registered trademarks of PTC and/or its subsidiaries in
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including any features or functionality, is subject to change at PTC’s discretion.
J0370 - PTC Global Services - Infographic / eBook
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