How the entire company benefits from PLM

The advantages of a PLM system beyond product development

The transformation pressure on manufacturing companies is increasing. They need to optimize their core business while simultaneously driving their digital transformation, enabling them to quickly react to changing market conditions and new customer requirements. Particularly for companies with complex product portfolios, it is essential to accurately calculate costs from the initial customer inquiry to order completion, coordinate manufacturing and development across locations, and involve numerous suppliers while always keeping an eye on target achievement.

An integrated PLM system helps companies master these challenges and set the course for long-term competitive success. With suitable function modules and interfaces, it supports them to align processes across departments for maximum efficiency, grasp complex interdependencies faster, and significantly reduce the time to market of their products.

Discover the specific added value that a PLM system provides to your company beyond the development department:

Product cost management

With integrated product cost management, product costs are calculated quickly and reliably during development. Pricing is optimized while costs are kept within budget.

Reliable sales planning is crucial for product development. In order to offer competitive products, companies need to know as early as possible what these will cost and are allowed to cost. If prices exceed the market average, they must offer convincing arguments to potential customers as to why. To achieve decent contribution margins, however, prices cannot be too low either. When conditions change – for example, due to fluctuating material costs or altered manufacturing processes resulting from new customer demands – this often leads to problems. This is because key metrics are usually calculated in separate IT systems in the controlling or accounting departments – outside product development, where 80% of the product costs are determined. Information synchronization and exchange are not digitally harmonized, making them time-consuming and error-prone. Under these conditions, meeting project budgets can be compared to navigating by sight in thick fog.

With the help of integrated product cost management, companies can accurately calculate product development costs in early development stages. When selecting a PLM system, a product costing module with easily adaptable calculation schemes should therefore be a factor to consider. This allows you to calculate various product lines at the same time and adhere to project budgets by capturing costs during development.

To enable the costing of product variants, colleagues outside product development should have direct access to the engineering bill of materials as well. A PLM system with its role-based access management concept allows just that. With this approach, companies set the course early on to achieve the desired profit margin. By analyzing different sales volumes, they determine the optimal price and increase product profitability.

The following areas in the company benefit from integrated cost management:

Controlling: A product costing module integrated into the PLM system allows the controlling department to directly access calculation schemes as well as product cost calculations from development and set relevant directives. This helps you ensure product profitability and contribution margins, increase cost-effectiveness, and steer your company with precision.

Sales: The quick and reliable calculation of variants, for example, for requested material alternatives, accelerates the quotation phase. Your sales team can provide quotes on short notice – and thus quickly increase revenue.

Procurement, materials management, and logistics: Keep larger quantities of frequently requested and used parts in stock to reduce procurement costs. Additionally, materials management can proactively stock alternative materials in appropriate quantities with regard to increasing sustainability aspects.


Product development: Control and break down costs to determine project profitability based on actual needs rather than fictitious specifications from the ERP system. This allows you to plan project costs realistically and adhere to budgets. Simultaneous cost tracking within the project enables you to document expected work efforts directly in the work breakdown structure and compare them with the cost breakdown. By utilizing project cost reports, your team always stays on top of things.

Requirements and variant management

Effective requirements and variant management sets the foundation to implement customer requirements faster, configure variants in no time, and bring innovations to market sooner.

Customer requirements are constantly increasing in both their quantity and the level of detail of their specifications. As the number of product variants grows, so does product complexity. Without requirements management along the entire product lifecycle, rapid and efficient development is hardly possible – let alone the use of suitable methods to support interdisciplinary collaboration, such as MBSE.

The increasing variant diversity also raises the risk of compromising the cost-effectiveness of procurement, manufacturing, and quality assurance. This is because, in conventional approaches, small batch sizes do not allow for economies of scale and the corresponding cost reductions.

PLM Software with integrated requirements management enables faster and more accurate product development in accordance with customer requirements. Requirements can be documented throughout the entire lifecycle and captured and edited more easily. The relationships between requirements are visualized in the digital product model and the degree of fulfillment can be permanently tracked. Additionally, PLM-supported requirements management provides the foundation for Model-based Systems Engineering (MBSE) for interdisciplinary teamwork.

Integrated variant management enables companies to strategically align their product portfolios and minimize the effort for variant configuration. With feature- and rule-based variability models, they can build platforms and product systems, limit variant diversity, reduce proliferation, and manage their portfolio in an efficient and cost-effective way. Additionally, the digital data and process organization of the PLM system facilitates largely automatic documentation, which significantly simplifies the fulfillment of compliance requirements.

Departments beyond development that benefit from PLM with integrated requirements and variant management:

Sales, product management, and product development: Sales can respond more quickly to customer inquiries and capture new or modified requirements directly in the PLM system. Product management and product development can easily process these requirements and simultaneously track their implementation, reducing lead times and increasing innovation productivity.

Variant management enables the targeted development of product portfolios tailored to market demand. Across departments, the company thus combines customer orientation with efficient value creation – for example, by leveraging intelligent process patterns and delivery strategies like CTO+ (Configure-to-Order in conjunction with Engineer-to-Order).

The platform approach and product systems set the foundation for a cost-effective and efficient portfolio. Furthermore, a PLM system ensures alignment with the company’s strategy and compliance with sustainability goals. It enables them to develop their products with cost-effectiveness in mind – even from batch size 1 –  and implement innovations for new market opportunities or business fields faster. This is enabled by intuitive configuration options and reusing existing variability models stored in the PLM system.

Effectively limiting variant diversity: The interaction between maximum BOM (also known as 150% BOM) and sets of rules prevents the creation of uneconomical variants. Through a PLM system with integrated variant management, the portfolio can be managed in a clear and structured way.

Support for product, quality, and compliance management: Thanks to automatically recorded comprehensive documentation, design decisions can be accurately traced back even years later. This makes it easier to meet compliance requirements with clients and authorities.

Procurement, materials management, and logistics: Frequently used components are stocked in various material alternatives and in larger quantities, reducing procurement costs. This enables companies to increase cost-effectiveness, shorten delivery times, and increase customer satisfaction.

Conclusion: A PLM system benefits the entire company!

PLM systems ensure end-to-end data availability along the digital thread. They enhance collaboration within product development and across departments, all the way to supplier chains. A PLM system as a central database (in the sense of a “Single Source of Truth”) with modern IT-supported collaboration tools significantly shortens time to market, reduces efforts in the quotation process, and simplifies compliance with customer and regulatory requirements.

Companies looking to manage the complexity of their product portfolio with a PLM system do not necessarily have to put up with high administrative efforts. Cloud-based Software-as-a-Service (SaaS) solutions provide preconfigured and standardized function modules out of the box. A user-friendly no-code environment allows the specialized departments to set up the software themselves without requiring any specialized IT knowledge. Furthermore, companies relieve their IT department from efforts that traditionally come with installing and maintaining dedicated hardware infrastructure. Updates and backups are performed automatically, eliminating the need for manual interactions. Extensive cloud security technologies provide reliable protection against cyberattacks and prevent unauthorized access to sensitive data.

Benefits of SaaS PLM at a glance:

  • Building and managing complex product portfolios
  • Systematic product cost management during development
  • Comprehensive requirements management throughout the product lifecycle
  • Rule-based variant management
  • Implementation of methods to support effective interdisciplinary collaboration in complex projects
  • Fast response times
  • Reduced workload for internal IT department (in times when IT specialists are scarce)
  • High availability and IT security

Take advantage of cloud-based PLM software now: CIM Database Cloud is the solution for end-to-end digital product development. With “Innovate”, you bring innovations to market faster and manage your product portfolio with ease.

Dissolving data silos in product development

Achieving a single source of truth by effective data management

Data silos complicate collaboration, reduce productivity, and limit innovation. From startups to established businesses, almost all companies struggle with such isolated databases. They unintentionally form around individual departments due to the use of different IT systems and tools. Since these systems are typically proprietary and manage and store data separate from each other, they significantly complicate cross-department data exchange.

The sluggish flow of information presents companies with growing challenges, especially when it comes to the collaboration between engineering and manufacturing teams. With increasing customer demands, compliance obligations, and environmental regulations as well as ever-shorter product cycles and times to market, data silos along the product development process become a considerable economic risk. In global competition, companies simply cannot afford inefficient processes, inconsistent data, and errors. Consequently, it is imperative to synchronize the information from design, manufacturing, and the subsequent processes in materials management at an early stage.

Many companies are aware of the problem but struggle to find a suitable solution to unlock the full potential of centralized and revision-proof data management. Our expert Dr. Patrick Mueller explains how you can break down data silos in your company and increase efficiency and quality in product development.

1. Mr. Mueller, what are the biggest obstacles for companies when it comes to creating a consistent database – from development and manufacturing all the way to disposal?

PM: The core competency of industrial companies lies primarily in the development, manufacturing, and maintenance of their products, not in the selection of digital tools. Company processes typically run in IT landscapes that have grown over time. Here, outdated systems for Product Data Management (PDM), Product Lifecycle Management (PLM), or Enterprise Resource Planning (ERP) meet an increasing number of different isolated solutions and technologies such as internet-based software services (for example, for team collaboration or external communication). The result is a complex, highly heterogeneous IT landscape with fragmented data storage that undermines every existing IT policy and compliance requirement. Not to mention the lack of scalability. Data must be transferred manually from one system to another. On top, countless makeshift spreadsheet solutions lead to version chaos. This results in errors, asynchronous document versions, and opaque processes. Reprocessing this data requires a lot of time and resources.

In addition to technical obstacles, there are also organizational barriers within companies, often rooted in corporate culture. Each department typically focuses only on its own world: they have their own goals, challenges, processes, and ways of working. This ‘culture of isolation’ also leads to separate data sets and has never been questioned until now. Using data collectively must be learned from scratch. This endeavor may naturally face resistance at one point or another.

2. How can companies overcome these obstacles?

PM: Consistency in information logistics is not a matter of course. Providing and accessing up-to- date data is crucial for innovation dynamics and delivering better products. Especially in the collaboration between Design Engineering and Manufacturing Engineering, friction often arises. If product development manages product designs in a CAD application and the associated bills of materials along with other important product information in a PLM system, but manufacturing stores product information and assembly instructions in a separate tool like an ERP system, the information gap can create significant problems. Either because potential changes or specific requirements are not taken into account, or because errors occur during manual synchronization. This leads to a considerable loss of time in production or, in the worst case, a product recall. Vice versa, the lack of integration of manufacturing and design data prevents insights and the optimization of the production process.

Professional cloud services (including the corresponding software services and IT operations) are increasingly viewed as a valid option for central digital data management and process management tasks. This applies to both large as well as small and medium-sized enterprises (SMEs). While large companies often demand customized cloud solutions, the more suitable path for SMEs usually lies in highly standardized software, developed and harmonized according to proven best practice approaches.

Software-as-a-Service (SaaS) solutions can effectively assist companies in standardizing their data management, establishing resilience and reliability, and fully focusing on their core competencies. When they are based on technologies and system properties that are mature – or “steeled in business”, to use the language of mechanical engineers – they are a decisive factor in bringing together data from different sources, harmonizing it, and establishing a seamless data foundation. SaaS can provide PLM functionality, project management, and IoT for machine and device connectivity that is preconditioned and ready for integration. CAD or ERP integrations as well as interfaces to Manufacturing Operations Management (MOM) can be realized through standards, making them easier to maintain and keeping costs transparent.

3. How long would it take to implement such a solution?

PM: When looking at the scope of services mentioned above, you might initially think of a complex implementation. But the major advantage of SaaS is that such offerings are readily available from the cloud “at the push of a button” in self-service. Companies no longer have to worry about IT and hardware. Maintenance, updates, and backups are carried out automatically in the background. Complete business systems are available within minutes. We provide our customers with tools that make system integration and populating these
systems with data as easy as possible. The functionality of our SaaS PLM offering is consolidated and was optimized through the feedback of countless users. Tutorials and e- learning programs are available to help users quickly familiarize themselves with the application.

4. Can SaaS PLM software be seamlessly integrated with ERP systems?

PM: Interfaces to other systems and tools are essential for dissolving data silos. For this purpose, our SaaS PLM software, CIM Database Cloud, offers a seamless out-of-the-box integration with CAD and ERP systems. CONTACT’s Workspaces Desktop allows to directly link CAD systems with CIM Database Cloud. Standards for data exchange, such as REST, ensure connectivity with other data management systems. This enables users to effortlessly integrate devices into our SaaS PLM solution through no-code and low-code methods in self-service, without requiring any programming skills.

5. Is there anything else to consider, any additional tips?

PM: For smooth data exchange to succeed, companies need to incorporate the strength of collaboration more deeply into their corporate culture. An open communication and the implementation of a data management strategy, or Data Governance, actively counteract data silos. This ensures that requirements are understood and met so that the end product meets the customer needs. Streamlined SaaS PLM software provides the necessary leeway to raise awareness and educate all employees on the topic of data use. Companies should also make sure that SaaS providers offer comprehensive support, for example, in the form of a customer portal with corresponding e- learning programs, webcasts, forums for exchange and discussion, and complete software documentation.

Take advantage of cloud-based PLM software now: CIM Database Cloud is the solution for end-to-end digital product development. With “Accelerate”, you speed up your processes through system integration and seamless information exchange.

5 tips for better collaboration within the design team

Increase transparency in interdisciplinary development projects

Perhaps you are familiar with the story of the lumberjack who could not fulfill his workload because his axe had dulled – yet he did not take the time to sharpen it. In many design and development departments, you encounter a very similar situation. Simply put, the right tools are missing to make work truly efficient.

One could also refer to this as “sneaker collaboration”: when there is no cross-team data management established, engineers have to run around in search of the right CAx models, drawings, or product data. Important information is buried deep inside databases of different authoring systems or in unsynchronized directory structures.

Heaven forbid the designer or project manager is not readily available to answer questions about changes to the product. Which version is the current one? Why was this design chosen specifically? Lots of questions, long distances, few answers.

As you may already suspect – of course, there is a better way. These 5 tips help you improve collaboration within the design team and attain traceability in interdisciplinary projects:

1 Use modern authoring and data management tools

The range of CAx solutions is extensive and serves nearly every niche. It is crucial that a solution includes all the functions and tools relevant to your work and leads to fast and high-quality results. Only then can you increase the efficiency of design and manufacturing – which is absolutely essential, since development and innovation cycles are getting shorter and shorter. Companies must be able to bring new products and innovations to market faster than ever before in order to stay ahead of their competition.

In addition to modern authoring systems, engineering teams should also leverage another tool: Product Lifecycle Management (PLM). PLM software assists you in managing the entire product lifecycle, from ideation to production, marketing, and product operation.

2 Establish a “Single Source of Truth”

Design teams often have to search extensively for product data like CAx models or drawings, as they are stored in different authoring systems and not synchronized. These so-called data silos significantly complicate information exchange and collaboration.

With modern PLM software, you establish a “Single Source of Truth” – a digital home for your data. CAD, CAE, and MES software are integrated via open interfaces, as are Office and ERP applications. Check in advance whether a provider offers open interfaces – otherwise, you run the risk of inadvertently tying yourself to an ecosystem, a so-called Vendor Lock-in.

With a Single Source of Truth, you ensure transparency and always keep a clear overview – even in demanding development projects. Another advantage: since all relevant information and documents are gathered in one place, you can, for instance, link product data with upcoming tasks and further enhance the efficiency of your development processes.

3 Facilitate remote work

Today, teams collaborate not only in one location or time zone but also across different sites and from the home office. PLM software should be designed to facilitate this shift. With the rise of New Work, remote work is becoming increasingly important. Particularly employees from generations Y and Z now take working from home for granted.

Thanks to cloud-based software models like Software-as-a-Service (SaaS), companies can now fulfill this promise. Via the cloud, employees access the same software and shared documents from any location – provided they have an internet connection and a web browser. Information is exchanged in real time. New team members can be integrated easily and flexibly depending on project requirements.

4 Keep your software up-to-date

To ensure that all employees have access to the same features of a PLM system, a single software version should be used across the entire workforce. This proves to be a challenge for many companies because extensive software updates may require numerous manual steps.

Cloud-based software helps you get around this problem. Software updates and patches are automatically provided, downloaded, and installed over the internet. Since the software is centrally managed, changes can be rolled out to all employees quickly and with minimal effort. Furthermore, the SaaS provider is responsible for software maintenance and administration and provides technical support when needed.

SaaS software also excels in terms of cybersecurity, which is increasingly coming into focus. Regular updates not only fix softwarebugs and expand functionality but also eliminate security vulnerabilities. Backups ensure that crucial data is always available and protected. Regular security checks by the SaaS provider and strict data protection guidelines further enhance protection against cyberattacks.

5 Use no-code software to get started quickly

PLM solutions are often associated with high investment costs and long implementation periods. As a result, companies fear disruption to their operations and avoid their implementation. However, this does not have to be the case: thanks to SaaS, a PLM system can be put into operation quickly, as there is no need for a local installation on the company’s servers. With instantly operational software and standardized, preconfigured function modules, you can start right away. Configuring the SaaS PLM software does not require any specific IT expertise (no-code) and can be performed by the departments themselves.

However, even the best PLM software squanders its potential if it is not used or only used hesitantly. Hence, the PLM provider ideally offers a trial version, allowing you to get an impression of its user-friendliness beforehand. Another advantage is an online onboarding, which guides you step by step in getting to know the system and setting it up. Training sessions conducted by experts help your team use the software effectively and seamlessly integrate it into their day-to-day work.

SaaS software is typically used on a subscription basis. If the need arises, more licenses can be added effortlessly – scaling a system could not be easier. This keeps your company flexible and allows you to keep costs in check – with pay- per-use, you only pay for what you actually use.

In a nutshell

Modern design tools are essential for high- performing design teams, but they are not enough on their own. The efficient management of technical data and cross- location collaboration additionally requires PLM software. When provided as Software-as-a- Service from the cloud, companies and their development teams benefit from additional advantages:

  • Quick and easy start into professional PLM
  • Scalability and flexibility through easy addition of licenses
  • Working with always up-to-date and secure software

With SaaS PLM software, you take the desire for digital transformation, streamlined processes, and efficient collaboration into your own hands – regardless of your resources.

Take advantage of cloud-based PLM software now: CIM Database Cloud is the solution for end-to-end digital product development. With “Collaborate”, you optimize product development and collaboration within the design team.

PLM systems are of crucial importance for manufacturing companies. They not only serve as a central data source, but also as a tool for efficiently managing development processes. Due to their many advantages, an increasing number of companies are choosing cloud-based PLM software instead of on-premises installations. Learn in our white paper how companies benefit from cloud PLM and what you should consider when selecting and implementing a solution.