Why SMEs are not leveraging PLM?May 22, 2015
The first question that comes to our mind when we do a PLM implementation is cost. Traditional PLM implementations are tailored for large scale industries who can afford the tantrums of a PLM based system. These large manufacturing organizations are not only implementing PLM in their business, they are reaping profits out of it. So why does the small and medium scale manufacturing sector fail to reap the benefits of Product Life Cycle Management?
The major challenge these SMEs face today can be grouped in three buckets –
- Cost – The likes of traditional PLM tools are tailored for Large Manufacturing Organizations. The cost of implanting and maintaining them is too much for SMEs.
- Infrastructure – Most of these small scale industries and medium scale industries do not have complex infrastructure that requires the likes of complex PLM system. Hence these SMEs choose to go for simpler solutions.
- Operational Maturity — These SMEs do not possess the operational maturity that other large scale OEMs possess. Though there are processes defined, but even they require refinements. More so these process are constantly changing as these organization are growing and competing directly with other established manufactures.
Leveraging the Cloud Platform
Cloud based PLM systems are the new beacon for the SMEs. The use of cloud based PLM platform has grown exponentially over last year. Both the large scale manufacturers and specially the small and medium manufacturers are leveraging its capability. These cloud based systems economically affordable and easier to maintain. They also come with the concept of pay for only what you use – which suits both SMEs and large scale manufacturers.