Category: PLM

Cloud makes PLM accessible for SMEs

Exploring the benefits of cloud-based PLM for small and medium-sized enterprises

In the past, PLM systems were associated with high upfront costs and complex installations. They seemed out of reach for many small and medium-sized enterprises (SMEs) and were not implemented. Thanks to cloud technology, that has changed: Cloud PLM software does not require a local installation or an in-house IT department and can be licensed on a monthly basis.

Cloud technology is a real game-changer for SMEs, especially since Product Lifecycle Management (PLM) has become more crucial than ever! Continuous technological advancements and shortened product lifecycles lead to increased complexity in areas such as development, design, engineering, and manufacturing.

In this blog post, you will discover how SMEs in particular can benefit from Cloud PLM.

The cloud removes access barriers to PLM systems for SMEs

Large enterprises with dedicated IT departments have a choice: they can use an on-premises PLM system, which is installed and run on company servers. In this case, the in-house IT department is responsible for its installation, configuration, and maintenance. It oversees the security and data protection of the PLM system to safeguard sensitive company data. The IT department also assists users with technical issues and contributes to the integration of the PLM system into the existing IT infrastructure. The installation of on-premises PLM software incurs high initial costs.

Alternatively, large enterprises can choose cloud-based PLM software, where the cloud provider is responsible for the infrastructure. The workload on in-house IT is significantly reduced compared to on-premises software. With Cloud PLM, tasks related to the maintenance and updating of physical hardware are eliminated, as these are taken care of by the cloud provider. The software provider, in turn, handles the regular updating and maintenance of the software, including security patches. Instead of one-time acquisition costs, this PLM operating model comes with monthly licensing fees.

Many SMEs do not have this choice: they cannot afford on-premises PLM systems, as they lack both the financial and personnel capacities to implement and run them. It is only through cloud technology that SMEs gain access to PLM software. It eliminates the access barrier of high upfront costs and the need for an in-house IT department to implement and maintain the software.

Benefits for SMEs through the use of Cloud PLM systems

Cloud PLM increases efficiency and competitiveness

The results of a study by engineering.com indicate that development teams of up to 20 people in companies that do not use PLM systems waste around 25 percent of their working time on unproductive activities. These tasks include revising models due to outdated revision versions, designing components that already exist but are hard to retrieve, and preparing data for colleagues without direct data access. These findings show that SMEs benefit from more efficient management of their product lifecycle data and ensure their competitiveness, even against larger competitors. This is particularly important as SMEs face similar customer expectations as large enterprises, for example, with regard to product variants and customization.

One advantage that SMEs have over large corporations is their agility and ability to respond quickly to market changes. They should capitalize on this benefit! PLM software supports them by fostering close collaboration among project teams, involving customers and suppliers in the development process, and facilitating the shared use of data.

Furthermore, cloud PLM systems enable significant cost savings for SMEs with limited financial resources, as they optimize resource utilization in the product development process and reduce scrap.

PLM systems also help raise product quality. They ensure that specified standards and norms are adhered to. This is crucial because quality issues can have a significant impact on company reputation and customer satisfaction, especially if the enterprise is not a market leader and has yet to establish itself among the competition.

Cloud PLM ensures highest security standards and boosts employer attractiveness

Cloud providers offer high-security data centers with state-of-the-art data encryption, automatic security updates, precise access rights, and redundant data storage. Additionally, the major cloud providers are certified according to relevant standards such as ISO and CSA-STAR. For SMEs without a well-staffed IT department and the necessary server infrastructure, adhering to these stringent security standards would not be possible without the cloud. Learn more about data security in cloud PLM here.

Cloud PLM systems drive collaboration and communication within the company and enable teams to work together from different locations. Employees can access PLM data from anywhere, which allows businesses to recruit professionals globally. This is a crucial advantage, especially for lesser-known companies that struggle to find qualified employees for open positions that require specific skills and qualifications.

Cloud PLM keeps up with company growth and can be easily tested in advance

Their easy scalability allows cloud PLM systems to be adapted to team size, by flexibly adding or removing licenses. Monthly license fees can be precisely calculated, which makes cloud-based PLM particularly appealing for growing businesses with limited budgets.

Companies can easily test cloud-based PLM software, as it can be accessed via the internet with just a few clicks and does not require local installation. Many software providers offer comprehensive trial versions for free. Especially SMEs that have no previous experience with PLM benefit from such test offers, as they allow them to gain an insight into the software and its functionality.

You can find an overview of the general benefits of cloud PLM for companies in this infographic.

Conclusion

Cloud PLM enables SMEs to efficiently manage the entire product lifecycle, thereby accelerating product development, reducing time-to-market, and enhancing competitiveness.

Cloud technology makes PLM systems a feasible option for many SMEs: cloud-based deployment enables them to flexibly scale their PLM software and reliably plan operating costs with monthly fixed licensing fees. They also benefit from automatic data backups, maintenance, and updates performed by the cloud and software providers.

CIM Database Cloud offers software solution packages (Collaborate, Accelerate, Innovate, or customized) for teams of all sizes and can be flexibly scaled as your team grows.

10 tips for choosing the right Cloud PLM provider

How to make a future-oriented decision

Flexibility and agility are crucial for companies in today’s dynamic business world. This also applies to Product Lifecycle Management. Accelerated product development and a shorter time-to-market are essential to remain competitive. While a traditional on-premises PLM solution was the only option in the past, digitalization brought about an alternative – Cloud PLM. Today, PLM system providers offer agile and rapidly deployable cloud solutions for managing the entire lifecycle of your products.

There are numerous companies in the market offering various functionalities and packages. But how do you find the provider that perfectly meets your specific requirements?

This blog post provides you with 10 essential tips to consider when choosing a Cloud PLM provider.

1 Understanding your requirements:

As a first step in your search for the right cloud PLM provider, define your specific requirements and goals. What do you expect from a Cloud PLM solution? Which functions and features are important for your company? Make sure your requirements cover both short-term and long-term needs. Answer the following questions:

  • What type of products do you develop or manufacture?
  • What processes need to be managed?
  • What integrations with other systems are necessary?
  • What is your budget?
  • How many employees will be using the cloud PLM system?

Comparing your requirements list with the offered software packages will help you narrow down the selection of providers.

2 Functionality:

Carefully examine the offered functionalities and compare them to your requirements. Can you expand the range of functions if needed? This helps prevent high time and cost expenditures often associated with changing providers.

3 Integration and interfaces:

Check whether the Cloud PLM software is compatible with the software tools and applications your company uses, such as MCAD, ECAD, ERP, MES, and CRM. Integrating data into the Cloud PLM system helps you avoid data silos and consolidate all relevant information in one software – the Single Source of Truth – to enable cross-departmental access. Dr. Patrick Müller explains how to break down data silos in this interview.

4 Scalability:

Ensure that the provider’s software is scalable and can keep up with your company’s growth. It should also be possible to add or remove users without causing interruptions or incurring costs for a system change.

5 Security and data protection:

The security of your company and product data is of utmost importance. Evaluate the provider’s security measures to ensure that your data is protected from unauthorized access. It is also important to check compliance with regulatory guidelines and certifications. For more information on data security in Cloud PLM systems, we recommend this blog post.

6 Performance and service quality:

Ensure that the performance quality and availability of the software are contractually guaranteed with a Service Level Agreement (SLA). In the SLA, the provider and customer define aspects including how the provider handles outages and ensures data recovery.

7 Costs and licensing:

Many providers offer different packages of their Cloud PLM software with varying functionalities. Review the pricing structure of the provider and compare it to your budget. Also take into account the ongoing licensing costs.

8 Customization options:

Complex processes require customized solutions. Check whether the provider allows for customizations beyond the standard PLM functions. DevOps services enable you to continuously develop and optimize your business processes even after migration and implementation.

9 References and trial versions:

Take a look at the provider’s website to see if reputable reference customers are using the software. Experiences from other customers can provide valuable insights. You can also take advantage of free trial versions to test the software in your company.

10 User-friendliness and support:

An intuitive user interface should be an important factor in your decision. The user-friendliness of the software is crucial for the acceptance among your employees and eventually their productivity. Ensure that a personal contact is available to you for any questions or issues.

Conclusion

Choosing a Cloud PLM software provider requires thorough research. Consider your specific requirements and take sufficient time to compare different providers. By taking these 10 tips into account, you will find the vendor that best suits your needs and helps you optimize your product development processes.

CIM Database Cloud provides you with all state-of-the-art PLM functionalities, adapts to your requirements, and seamlessly integrates into your existing systems.

Data security in Cloud PLM systems

How Cloud PLM systems ensure data security on the highest level

As technology advances at a rapid pace, product life cycles become shorter, and the amount of digital information grows exponentially, companies face the challenge of managing their product life cycle data in a more effective manner. Consequently, more and more companies are turning to Cloud PLM systems that enable them to access data from anywhere and at any time. While the benefits of a cloud solution outweigh the drawbacks, there are still concerns. Specifically, about whether the data in the cloud is secure. In this article, we delve into the advantages of cloud-based PLM systems and demonstrate that solutions adhering to current security standards and requirements offer the highest level of data security and can be significantly more reliable than locally operated systems.

Security benefits of Cloud PLM compared to locally installed PLM systems

In a Software-as-a-Service (SaaS) model, cloud service providers are responsible for maintaining security features in the application and ensuring the confidentiality, integrity, and availability of data. They also ensure compliance with current cybersecurity standards, regularly update the software to address new security risks and vulnerabilities, and continuously monitor the system for potential threats. When it comes to security, most companies do not have sufficient resources to make investments in hardware, infrastructure, and personnel comparable to the major cloud providers.

Thanks to economies of scale, cloud administrator teams operate more efficiently and with greater specialization compared to administrators of an on-premises installation. As a result, routine tasks such as updates and maintenance are reduced for internal IT teams, allowing them to focus more on their day-to-day operations, such as user satisfaction, implementing new IT features, and company-specific IT security matters.

Security measures of Cloud PLM providers

To ensure that data is fully protected, cloud applications should adhere to current best practices and comply with all relevant regulations regarding cybersecurity in the cloud. Five measures have become widely established in this regard:

1. High-security data centers and encryption

Cloud PLM providers rely on highly secure data centers equipped with state-of-the-art security technology. These data centers provide physical protection, access control, and active monitoring around the clock. Additionally, all data stored in the cloud is protected by cutting-edge encryption technologies. In the highly unlikely event of a security incident, the data remains unreadable to unauthorized parties.

2. Access control and permissions

Cloud PLM systems offer precise control over who can access the data. Assigning individual permissions at the user level ensures that only authorized users have access to specific data and functions. Administrators have the option to define user roles themselves and assign individual permissions. This ensures that employees can only access information relevant to their work.

3. Regular security updates and maintenance

Cloud providers perform regular security updates and maintenance to promptly address potential vulnerabilities and keep the systems up to date. This ensures that Cloud PLM systems are constantly protected against current threats.

4. Redundancy and disaster recovery

Another crucial aspect of data security in the cloud is redundancy and disaster recovery. Cloud providers store their data in distributed data centers at multiple locations and conduct systematic and professional backups. This provides protection against data loss due to hardware failures or in the event of a disaster.

5. Compliance and certifications

To meet the highest security standards and ensure the confidentiality, integrity, and availability of data, cloud providers should adhere to compliance guidelines and certifications. One notable standard in this field is ISO 27001. It provides a framework for establishing, implementing, maintaining, and continually improving security management systems, procedures, and policies. Depending on the region and industry, other certifications may also be relevant.

Humans – a factor of (in)security

Once a company has chosen a suitable cloud-based PLM system and selected a cloud service provider that adheres to all best practices for data security in Cloud applications, the first major step towards data security is taken. However, to ensure maximum security, another important element is needed: the training of the company’s employees.

The security of data in PLM systems largely depends on the conduct and expertise of the employees. Therefore, it is crucial that they undergo regular IT security training. These trainings should teach employees how to recognize phishing attacks, suspicious emails, malware, and questionable links in order to prevent unauthorized access. Employees must also be sensitized to report suspicious incidents to protect themselves and their colleagues.

Cloud PLM systems with document management and an integrated communication tool significantly reduce the risk of encountering insecure emails or links, as communication takes place in a protected environment. Encouraging users to utilize such features directly contributes to enhanced security.

Furthermore, it is of great importance that employees are trained on how to securely handle confidential data and strictly adhere to the company’s privacy policies in order to prevent data breaches.

Conclusion

Cloud-based PLM systems offer you the highest level of data security through the use of encryption, access control, regular updates, redundant data storage, and the compliance standards of cloud service providers. Still, the security of your PLM system data also depends on the behavior of your employees to a large extent. Regular IT security training is essential to ensure that users are aware of current threats.


Take advantage of the many benefits of cloud-based PLM software now: With CIM Database Cloud, you get a secure solution to protect your sensitive product development data.