The PLM Debate
As part of our ongoing research programme, Cambashi is running a debate on product lifecycle management (PLM) and how it interfaces with the supply chain. Various IT vendors were invited to respond to a discussion paper : "In 2004, will PLM and SCM still be recognisable TLAs?" (a version of which was first published in the FT)

Baan PLM response

Dennis van Bodegom, Director Product Marketing, Baan PLM

The discussion about whether PLM and SCM will merge is theoretical. Both "pillars", as they are being referred to in the article, have their own justification to exist. However, these pillars cannot possibly be "pillars"..

Referring to Tracey and Wiersema value disciplines, no company will be able to solely focus on just one value discipline (represented by the 4 pillars), while neglecting the other two. Product Leadership for example can only be achieved by applying the right balance with Customer Intimacy and Operational Excellence. No company can become a product leader if they do not have the ability to also tap into the information that is typically stored in the CRM, SCM or ERP pillar. After all the information on customer requirements, feedback from service engineers or the ability to line up the supply chain for a go-to-market in 2 months is typically not stored in just the PLM "pillar". In other words, what applies to the interaction between SCM and PLM also applies to CRM and PLM, and to ERP and PLM, and vice versa.

Should the conclusion be that everything is PLM then? No, every "pillar" has its own raison d'etre but these pillars are rather the cornerstones that together make your building. We cannot tear them apart, yet we cannot claim that they are one and the same.

January 2003

To find out more, go to the Baan website at www.baan.com

If you have any feedback to add to this debate, please email plm@cambashi.com with the subject "PLM debate".