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.
