Product Lifecycle Management Introductory Guide

PRODUCT LIFECYCLE
MANAGEMENT
INTRODUCTORY
GUIDE
IG1100
Version1.1
November, 2012
TM Forum 2012. All Rights Reserved.
www.tmforum.org IG1100, Version 1.1 TM Forum 2012. All Rights Reserved. Page 2 of 52
Product Lifecycle Management - An Introductory Guide

Notice

Copyright TeleManagement Forum 2012. All Rights Reserved.

This document and translations of it may be copied and furnished to others, and derivative works that
comment on or otherwise explain it or assist in its implementation may be prepared, copied, published,
and distributed, in whole or in part, without restriction of any kind, provided that the above copyright
notice and this section are included on all such copies and derivative works. However, this document
itself may not be modified in any way, including by removing the copyright notice or references to TM
FORUM, except as needed for the purpose of developing any document or deliverable produced by a TM
FORUM Collaboration Project Team (in which case the rules applicable to copyrights, as set forth in the
TM FORUM IPR Policy, must be followed) or as required to translate it into languages other than English.

The limited permissions granted above are perpetual and will not be revoked by TM FORUM or its
successors or assigns.

This document and the information contained herein is provided on an "AS IS" basis and TM FORUM
DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY
THAT THE USE OF THE INFORMATION HEREIN WILL NOT INFRINGE ANY OWNERSHIP RIGHTS OR ANY
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

Direct inquiries to the TM Forum office:

240 Headquarters Plaza,
East Tower 10
th
Floor,
Morristown, NJ 07960 USA
Tel No. +1 973 944 5100
Fax No. +1 973 944 5110
TM Forum Web Page: www.tmforum.org

Table of Contents
Notice .......................................................................................................................... 2
Table of Contents ............................................................................................................. 2
List of Figures .................................................................................................................. 4
List of Tables .................................................................................................................. 5
Executive Summary .......................................................................................................... 6
1. PLM in the Digital Economy ............................................................................................... 8
1.1. The Background to PLM ...................................................................................................................... 8
1.2. PLM Defined ..................................................................................................................................... 10
1.2.1. Product Data Management at the PLM Core .............................................................................. 11
1.2.2. Holistic PLM .............................................................................................................................. 17
2. Making PLM Happen .................................................................................................... 22
2.1. PLM Reference Frameworks ............................................................................................................. 23
2.1.1. Business Process Framework (eTOM) ........................................................................................ 23
2.1.2. Information Technology Infrastructure Library (ITIL) ................................................................... 25
2.1.3. Software Development Lifecycle (SDLC) ..................................................................................... 27
2.2. Standing up PLM ............................................................................................................................... 29
2.2.1. Establishing the PLM Foundation ............................................................................................... 29
2.2.2. PLM Design Principles ............................................................................................................... 30
2.2.3. Example PLM Process Models ................................................................................................... 32
2.2.4. PLM Stages and Gates ............................................................................................................... 35
2.2.5. Typical PLM Roles ..................................................................................................................... 37
2.2.6. Bringing It All Together .............................................................................................................. 38
3. PLM Challenges and Opportunities .................................................................................... 41
3.1. Challenges ........................................................................................................................................ 41
3.2. Benefits and Potential Value ............................................................................................................. 43
3.3. Measuring PLM Results ..................................................................................................................... 45
3.3.1. Industry Standard KPIs .............................................................................................................. 46
3.3.2. KPI Pitfalls to Avoid ................................................................................................................... 46
4. PLM Maturity ............................................................................................................. 48
4.1. Maturity Model Definition ................................................................................................................ 48
4.2. Key Aspects of a Maturity Model ....................................................................................................... 48
5. Why PLM ................................................................................................................. 50
6. Appendix ................................................................................................................. 51
6.1. References ....................................................................................................................................... 51
6.2. Document History ............................................................................................................................ 52
6.3. Company Contact Details .................................................................................................................. 52
6.4. Acknowledgments ............................................................................................................................ 52

List of Figures
Figure 1 - Product Maturity Lifecycle. Source: Tribold Limited. 9
Figure 2 Application Framework Product Management Domain. Source: TM Forum. 11
Figure 3 PLM across the Product Management Domain. Source: Tribold Limited. 11
Figure 4 Product Model. Source: Tribold Limited. 13
Figure 5 Information Framework (SID) Data Domains. Source: TM Forum. 14
Figure 6 Information Framework Product-Service-Resource Associations. Source: TM Forum. 15
Figure 7 Simple PLM Framework. Source: Tribold Limited. 18
Figure 8 Holistic PLM Framework. Source: Tribold Limited. 20
Figure 9 Goals of PLM. Source: CIMdata. 21
Figure 10 Dimensions of PLM Deployment. Source: Telecom New Zealand. 22
Figure 11 Business Process Framework with PLM Designations. Source: TM Forum. 24
Figure 12 Business Process Framework PLM Domain. Source: TM Forum. 24
Figure 13 ITIL Service Lifecycle. Source: ITIL/itSMF. 26
Figure 14 ITIL to PLM Mapping. Source: TM Forum. 27
Figure 15 Software Development Lifecycle. Source: Wikimedia Commons. 28
Figure 16 Holistic PLM Building Blocks. Source: Telecom New Zealand

based on Detecon Model. 29
Figure 17 Organization & Process Alignment. Source: Telecom New Zealand. 30
Figure 18 PLM Process Model. Source: Tribold Limited. 32
Figure 19 PLM Pathways. Source: Telecom New Zealand. 34
Figure 20 PLM Process Model. Source: Telecom New Zealand. 35
Figure 21 PLM Stages/Gates. Source: Tribold Limited. 35
Figure 22 PLM In Practice. Source: Telecom New Zealand. 39
Figure 23 PwC Product Management Maturity Framework. Source: PRTM Study. 49


List of Tables
Table 1 Benefits of PLM. Source: John Stark. 17
Table 2 PLM Design Principles. Source: Telecom New Zealand. 31
Table 3 Holistic PLM Framework Level 2/3 Processes. Source: Tribold Limted. 34
Table 4 PLM Gate Definitions. Source: Tribold Limited. 36
Table 5 Typical PLM Roles. Source: Tribold Limited. 38
Table 6 With and Without PLM. Source: Telecom New Zealand. 50


Executive Summary
Product Lifecycle Management (PLM) has long been the reserve of the retail and manufacturing industries.
When you are constructing something physical, it is easy to see how the idea and design of individual
component parts and their successful assembly into a single saleable product depend directly on clear planning
and definition, end-to-end process coordination, and ongoing delivery management, all of which are key
aspects of a PLM framework.

The benefits are obvious too assured interoperability during production, an end-state product that closely
resembles the upfront requirements and design specifications, and a common understanding of what is being
sold and what is required to sell and support it.

Applying these same principles to the communications industry, however, was not so obvious in the past. One
could point to a number of reasons why operators did not feel the pressure to institutionalize PLM: limited
product complexity and features, homogenous network/provider landscape, monolithic infrastructure, and so
forth.

Fast forward to todays digital world, and the environment is anything but simple and static. With the
convergence of technologies and markets, the abstraction and virtualization of services, and a truly global
market of over 6 billion people, digital services are exploding. Thus the traditional landscape of the
communications industry has been forever changed.

With the seemingly infinite number of moving parts that require coordination in order to produce a seamless
offering for the market, against the backdrop of a rapidly changing ecosystem, PLM is becoming an essential
enabler of the Digital Economy.

PLM, if implemented correctly, can have significant operational, financial, and customer experience benefits:

Operating cost reduction. Decrease execution cost, increase human resource performance, and
decrease churn rate.
Time management. Decrease time to market, decrease waiting time, and decrease delay in delivery to
the customer through improved collaboration and establishing a consistent product development
process across the business.
Innovation. Organizations are looking for PLM to improve the business by enabling more innovation at
the idea stage, producing better product designs, increased reuse, improved standards and consistency,
and clearer visibility and management of product data.
Product and process quality improvement. Increases can be observed in product management process
performance, customer value performance, value net performance, information availability and
accuracy, product launch quality, provisioning performance, service quality, and reductions in technical
defects.


Implementation of a PLM strategy should and can be underpinned by sound financial targets. These targets help
to quantify the benefits of a transformative or improvement PLM project. Examples of benchmarks that have
been proven by referenceable case studies in the marketplace include:

50% reduction in the time to market
20% increase in revenues by widening the product portfolio
20% increase in revenues by introducing products faster
40% increase in revenues by introducing new products/services on existing offerings
35% increase in product quality
60% reduction in cost to market

This guide explores the rationale for PLM in the Digital Economy, the maturity of the frameworks available, and
how such organizations can deploy PLM fit for their purposes.

About the authors
This guide was co-authored in collaboration between Tribold Limited and Telecom New Zealand. It was
compiled based on the experience of both organizations in defining, tailoring, adopting, and deploying PLM
frameworks in the digital world:

Catherine Michel, Tribold
Sharon Lynch, Tribold
Kiran Amin, Tribold
Ella Obreja, Telecom New Zealand


1. PLM in the Digital Economy
Competing in the increasingly commoditized digital service industry, providers are
commercially compelled to seek more ways in which they can reduce their time- and cost-to-
market, while improving innovation and quality.
With subscriber saturation in the communications sector at an all-time high, the emergence of
multi-service providers from non-traditional sources, the convergence of user interfaces, and
increasing network abstraction, the pressure is on to execute a product strategy that delivers
simplification and accuracy, personalization without customization, reliability, and flexibility at
a low cost.
These objectives are demanding a strategy that specifically answers a multitude of business
critical questions, such as:
How do I effectively exploit existing capabilities into more competitive and attractive
market offers?
How do I quickly introduce new capabilities on top of existing infrastructure?
How do I ensure that my customers experience is a satisfactory one, from the point of
order to the point of use?
What can help me manage existing product lines, while launching new ones, without
disrupting business as usual?
How do I simplify the product development process to reduce the cost and time it
takes?
How do I bring the business and IT factions together to collaborate on more effective
offerings?
How do I assure compliance with tax and regulatory rules for transparency and
traceability?
To answer these questions and respond to the intensifying pressure, service providers are
increasingly focused on deploying a discipline that is turning under-managed capabilities and
fractured processes into a coordinated effort to design, develop, deploy, and maintain the
products around which their business is centered.
In this context, Product Lifecycle Management (PLM) is the key to effectively and efficiently
innovate and manage a companys products and related services and resources to assure
ongoing sustainability and profitability.
1.1. The Background to PLM
PLM has its roots back in the 1960s, when product marketing was becoming better
understood and managed. The marketer and university professor E. Jerome McCarthy

proposed a simplified version of the previously published Marketing Mix concept, suggesting a
four Ps classification to articulate a companys market offering: Product, Price, Place, and
Promotion:
1

Product An item that satisfies what a consumer needs or wants. It is a tangible good
or an intangible service.
Price The amount a customer pays for the product.
Promotion The methods of communication that a marketer may use to provide
information to different parties about the product.
Place The distribution of the product at a place that is convenient for consumers to
access.
The 4 Ps have evolved into the 4 Cs (Consumer, Cost, Communication, and Convenience), but
the implications are the same: these are the fundamentals with which a company defines
what it is selling and how it goes to market with it. How to manage these fundamentals is at
the core of any companys Product Management strategy.
A few years on from the 4Ps, the Product Lifecycle Model was first published by Harvard
professor Raymond Vernon. Vernon observed five stages in the lifecycle of a product, with
each stage having specific implications on how products are manufactured and traded across
local and international markets
2
:
Stage 1: Introduction
Stage 2: Growth
Stage 3: Maturity
Stage 4: Saturation
Stage 5: Decline

Figure 1 Product Maturity Lifecycle. Source: Tribold Limited.

1
McCarthy, Jerome E. (1960). Basic Marketing. A Managerial Approach. Homewood, IL: Richard D. Irwin.
2
Raymond Vernon (1966). International Investment and International Trade in the Product Cycle, The Quarterly Journal of Economics, Vol.
80, No. 2, pp. 190-207.

This model was gradually adopted by economics and marketing theorists as a way to describe
and define more generically the product lifecycle management concepts and principles in the
product development and product management domains.
Institutionalized adoption of PLM, however, did not occur until the 1980s, when it was taken
up primarily by the automotive industry. This effort was in response to the cyclical market
reality, as defined above, that the U.S. automotive industry was facing and therefore its need
to compete at lower costs.
In other words, in the face of stiff competition and changing market conditions, companies
asked, How do I take my companys 4 Ps and improve upon them using a process that
reduces my time and cost to market, while preserving innovation and quality?
The answer was found in the use of tools such as CAD (computer aided design), CAM
(computer aided manufacturing), CAE (computer aided engineering), and PDM (product data
management). Eventually, PLM as a discipline in practice emerged from the tools and activities
geared specifically towards engineering.
As these technologies evolved and moved beyond just the automotive industry, they became
the backbone of modern day PLM, which is the creation and central management of all
product data and the technology used to access this information and knowledge. But PLM has
grown to mean more than just the use of these tools; it is now viewed as the integration of
these tools with methods, people, and processes through all stages of a products life.
3

The same pressures weighing on the automotive industry of the 1980s challenge the Digital
Economys communications, media, and high-tech providers of today.
1.2. PLM Defined
In the broader organizational context, PLM is considered one of the core competencies of the
Product Management domain, which is the overall area responsible for the organizations 4 Ps.
As defined by TM Forums Frameworx Application Framework (TAM), Product Management
contains four key facets
4
:

Product Strategy/Proposition Management
Product Catalog Management
Product Lifecycle Management
Product Performance Management

3
Teresko, John (21 December 2004). "The PLM Revolution". IndustryWeek. Retrieved 26 September 2012.
4
TM Forum document GB929, GB929-CP. www.tmforum.org.

Figure 2 Application Framework Product Management Domain. Source: TM Forum.

In practice, PLM actually extends across the other Product Management competencies in
terms of managing how those activities interoperate to produce a successful strategy around
the 4 Ps. The transcendence of PLM underpins the premise of this document:

Figure 3 PLM across the Product Management Domain. Source: Tribold Limited.

1.2.1. Product Data Management at the PLM Core
As previously mentioned, Product Data Management (PDM) as a discipline and as a capability
existed before PLM. For manufacturing, managing the underlying data that defines the
specifications of a product was seen as a critical component to managing the production of
that product.
PDM for the digital economy can be viewed as the equivalent to the Product Catalog
Management competency in the Application Frameworks Product Domain, as identified
above. PDM is an even more fundamental competency in the digital world, where products
Product Management
PLM
Product Strategy
Product Catalog
Management
Product
Performance
Management

are largely intangible services and therefore data driven in their logical design, physical
composition, and customer use.
So a large portion of managing the product in this case is really managing the data that
comprises the product specification, which can be viewed as the following elaboration of the 4
Ps:
What is being sold
What it comprises
How it is sourced, fulfilled, and supported
To whom it is being sold
For what cost is it being sold
How it is sold
How it is used
How it is tracked
How it is rated, taxed, and invoiced
How it is paid for and booked
How it should perform

The resources that support the products services are important as well. So when referring to a
product in the digital economy, the product is often more of a product composite that can be
depicted by the following model:

Figure 4 Product Model. Source: Tribold Limited.

In essence, the product composite is ultimately made up of attractive commercials (Offer),
with great features (Product), that are based on the latest technologies (Service), using the
best devices and networks (Resource).
Each of these elements, including Offer, Product, Service, and Resource, contains Data
(information) made up of discrete logical entities with characteristics, values, and rules that
together deliver or enable a specific experience for the customer.
These elements together comprise the Product Model. Delineating the product composite into
a clear model on which specifications can be defined, stored, and managed is a core objective
of PDM. The Product Model is the blueprint for structuring the product data in a modular,
flexible, and most importantly, reusable way.
As a common reference source to illustrate the model, the Frameworx Information Framework
(SID) offers a set of standard definitions for the Offer, Product, Service, and Resource data
entities relevant to the digital industry
5
:

5
TM Forum document GB922 0-P, GB922-CP. www.tmforum.org.

Figure 5 Information Framework (SID) Data Domains. Source: TM Forum.

The data definitions from the Information Framework can be used as a comprehensive
guideline for establishing the organizations common model for Product. They can be tailored
to suit the organizations physical implementation of the PDM model:


Figure 6 Information Framework Product-Service-Resource Associations. Source: TM Forum.

Specifically, the Information Framework provides the following support for a common Product
Model:
Standard way of structuring, defining, and implementing information and behavior
Consistent common terminology
Reuse of investment
Single representation from which technology-specific data models can be derived

ServiceUti lizes
CustomerFaci ngService
Product
0..n 0..n 0..n
ProductReferences
0..n
0..1
0..n
0..1
0..n
ProductHasCustomerFacingServices
ResourceFacingService
0..n
1..n
0..n
1..n
CFServiceRequiresRFServices
ServiceSpecifi cation
0..n 0..n 0..n
InvolvedServiceSpecs
0..n
Service
1
0..n
1
0..n
Specifi esService
ProductOffering
1
0..n
1
0..n
ProdOfferDescribes
CustomerFacing
ServiceSpec
1
0..n
1
0..n
Specifi esCustomerFacingService
PhysicalResourceSpec
ProductSpecification
0..n 0..n 0..n 0..n
ProdSpecReferences
1
0..n
1
0..n
ProdSpecMadeAvailableAs
0..n
0..n
0..n
0..n
ProductSpecDefinesCFSSpecs
0..n
0..n
0..n
0..n ProductSpecDefinesPRSpecs
Resource
0..n
0..n
0..n
0..n
ResourceSpecification 0..n
0..n
0..n
0..n
InvolvedResourceSpecs
1
0..n
1
0..n
SpecifiesResource
ResourceFacing
ServiceSpec
1 0..n 1 0..n
SpecifiesResourceFaci ngService
0..n 1..n 0..n 1..n
RequiresResourceFacingServiceSpec
1
1..n
1
1..n
RFServiceSpecHasResourceSpecs

The data reproducibility and repeatability of the Product Model is critically important for when
specifying products with the aim of supporting the key goals of PLM:
Standardization: a common design language between customers, product managers,
and the rest of the organization
Simplicity: a single repository for all products
Profitability: leveraging reusable components to deliver low cost/high yield offers
Intelligent customer solutions: from a reactive to a proactive solutions set

Hence, the PDM application is considered one of the most important elements of a strong PLM
practice. It can manage the entire Product Intellectual Capital created and used in the PLM
environment, most importantly the Product Data. PDM gets the Product Data under control.
There are many different functions that the PDM application can provide, from data federation
(configuring and storing product models) to actual lifecycle management (sign off and approval
workflows, project management, updates, and design and build integration).
Below are some of the key benefits of a PDM application, which is the equivalent of the
Product Catalog Management facet of the Application Frameworks Product Management
domain
6
:

Description Benefit
Product data
management
Provide a single, controlled vault for product data.
Maintain different views of product data structure e.g.
Product Model.
Provide fast, real-time access to product data.
Manage complex Product Model configurations.
Reuse of product data Reuse existing Product Model designs for new products.
Reduce duplication of product data.
Workflow management Ensure the appropriate PLM process is followed.
Improve distribution of product data to relevant
functional areas.
Provide transparency of PLM activities and PLM stages
related to a product.
Ensure PLM engagement and RACI is followed.
Enable agile PLM governance and decision-making
processes.

6
John Stark. Product Lifecycle Management, 21
st
Century Paradigm for Product Realisation. Springer, 2011 content has been adapted
from the book.

Description Benefit
Overall business
performance
improvement
Improve product quality.
Reduce overhead costs.
Functional performance
improvement
Increase PLM productivity.
Reduce product inventory.
Develop better cost estimates.
Better management of
PLM activities
Improve project coordination.
Increase the reliability of PLM plans and roadmaps.
Provide high-quality management information.
Automation of PLM
activities
Automate the PLM process, including approvals and sign-
offs.
Automate the exchange of product data.
Integration of OSS/BSS Integrate Islands of Data and Automation.
Link databases and systems, for example, PDM with
Business Intelligence.
Remove unnecessary systems.
Table 1 Benefits of PLM. Source: John Stark.
1.2.2. Holistic PLM
Products define a company. Without products, there will be no customers and no revenues. So
without its products, a company would not exist.
7

PLM enables a company to be in control of its products across the different stages of their
maturity and marketability.
As such, PLM can be defined as a controlled framework for managing the entire lifecycle of the
product and its underlying components. This includes all of the processes required to design,
build, deploy, maintain, and ultimately, retire the product.

7
John Stark. Product Lifecycle Management, 21
st
Century Paradigm for Product Realisation. Springer, 2011 content has been adapted
from the book.

Figure 7 Simple PLM Framework. Source: Tribold Limited.

Generally, these activities require a significant degree of collaboration across the company.
When thinking about the company itself, in simple terms, it is organized into functions sales,
marketing, manufacturing, customer services, operations, and so forth. Peoples jobs have
been created and defined based on those specific functions, for example, sales representative
or customer service representative.
As business models evolve, a great deal of effort and focus is placed on increasing efficiencies
in these functional areas by introducing information and information systems to help these
functions do their work.
Although operational improvements can be made individually in each of these areas, such
initiatives suffer from the law of diminishing returns: while one factor is improved or
enhanced, all the other factors stay the same. You then battle against the silo approach,
disjointed business processes, a mishmash of systems and lack of collaboration among
organizational departments and teams.
It is a common occurrence across many organizations, grappling with oceans of information
and complex technology ecosystems, for functional areas to become isolated silos with little
communication and coordination between them. This is an especially critical challenge in fast-
moving industries such as ours, which are struggling to catch up with ever-changing customer
demands at the expense of shrinking margins.
PLM holds the promise of improving product efficiency through a cross-functional, holistic
approach. By linking different functional areas through shared information, PLM can help
Idea
Plan
Design
Build &
Test
Launch
Maintain
ReVre

break down the silo perspective and unlock the organization.
8
Sharing of information through
an integrated PLM framework is especially powerful: once the information capital is in place, it
can be reused, reconfigured, and reutilized, and ultimately easily replaced without braking or
reconstructing the whole system, thus enabling a flexible, dynamic, and agile business model.
More holistically, PLM combines people, technology, processes, and data into a strategic
business approach for developing and managing products across the enterprise, taking them
from the cradle to the grave. Holistic PLM is therefore underpinned by five core building
blocks:
People Puts product practitioners at the center of the approach with clear, simple,
and usable functions across the entire lifecycle. It empowers people and teams to
develop ideas that are meaningful to customers.
Product Information Securely stores and manages the integrity of product
information (product-service-resource) and all the outputs (for example, internal
documentation, collateral, service agreements) to allow management of product,
including performance at the product-line level.
Process Facilitates execution of the collaborative process used across the product
functions to drive the lifecycle of products from initiation to retirement, including
strategy, planning, product management, product service, and experience.
Governance Enables an agile, fit-for-purpose PLM Framework with clear roles,
accountability, and a lean governance and decision-making model.
Tools Enable an integrated and collaborative product management ecosystem.

8
Michael Grieves. Product Lifecycle Management. McGraw-Hill, 2006.

Put into practice as part of a broader, more holistic PLM Framework, these building blocks
provide the basis on which the organization can strategize, implement, and manage products
according to market and competitive demands:

Figure 8 Holistic PLM Framework. Source: Tribold Limited.

Develop Product Strategy. The activities necessary to develop the product strategy to
meet the overall company revenue and competitive targets. The organization will
analyze product and market data in progress and future product initiatives and
operational objectives to arrive at the desired product portfolio. This desired product
portfolio is matched up with the budget planned for product development, and a
product development plan is created for a period of time (quarter, annual, etc.). The
product strategy is a fundamental function of PLM because it ensures that the
organizational resources (people, technology, and budget) are focused on developing
and managing the products that are the most profitable for the company.
Design and Develop Products. The activities necessary to execute the product
strategy. Resources from across the organization work together to deliver the new
and updated products as outlined in the overall product portfolio plan and strategy.
The organization works together across functional areas, according to the pre-

determined responsibilities and processes to meet the product marketing and launch
plans.
Monitor and Update Products. The activities related to ensuring that the desired Key
Performance Indicators (KPIs) are measured and monitored to achieve the desired
operational results. Includes continually reviewing and analyzing product performance
data to make intelligent, quantified decisions about the lifespan of a product and any
changes that should be made prior to full retirement.
PLM brings together an eclectic mix of organizational responsibilities, information, and
workflows in a structured and holistic way to deliver on the 4 Ps. The efficiencies, or
improvements, triggered from a PLM implementation across the enterprise often relate to
four key areas:

Figure 9 Goals of PLM. Source: CIMdata.

Cost Reduction. Organizations are looking for PLM to increase business value through
higher revenue margins against the bottom line profits.
Time Management. By improving collaboration and establishing a consistent
product development process across the business, organizations are looking to
reduce the time required to define and deliver new products and manage existing
ones.
Innovation. Organizations are looking for PLM to improve the business by enabling
more innovation at the idea stage, producing better product designs, increased reuse,
improved standards and consistency, and clearer visibility and management of
product data.
Quality Improvement. Organizations are looking for PLM to produce a better end
result that meets the market and customer requirements and uphold a reputation for
excellence and reliability thus reducing any faults through the design, implement, and
testing stages.

2. Making PLM Happen
The practice of PLM is based on an information-driven approach to managing a companys
Product Intellectual Capital, represented as Product Data (the fabric of products: product
model/product architecture) and Product Knowledge (analytics, collateral).
When deploying PLM across the organization to manage these aspects of the Product, PLM
deployment should be considered across three dimensions:

Figure 10 Dimensions of PLM Deployment. Source: Telecom New Zealand.

Mechanics: the Data and Systems domain. The capture, structure, storing, and
maintenance of the Product Intellectual Capital in the Product Data Manager vault,
where the Product Data and Product Knowledge are stored.
Dynamics: the Process domain. The flow and exchange of Product Data and Product
Knowledge across the organization and how it is managed and maintained throughout
the lifecycle of the product.
Humanics: the People domain. The functions that own, exchange, and maintain the
Product Intellectual Capital and the processes that are used to manage it.

Mechanics:
Data Domain
Dynamics:
Process
Domain
Humanics:
People
Domain

Standing up a successful PLM practice across the organization therefore involves:
A simple, structured Product Model to organize product intellectual information and
eliminate complexity where the Product Model is used for all products and stored and
managed in the Product Data Manager.
A dynamic, flexible set of Product Workflows with clear functions to manage the
Product Intellectual Capital from cradle to grave, where Product Workflows make up
the Product Lifecycle Management for all products.
An organizational alignment to ensure a resource focus on effectively managing the
product model and the product workflows.
2.1. PLM Reference Frameworks
Rather than starting from a blank page to define and deploy the different facets of a holistic
PLM approach, your best bet is to start with a pre-defined reference framework.
Depending on the industry, there already exist relevant reference frameworks that help to
decompose the different facets of PLM. For communications, media, and high tech providers,
there are at least three reference points available.
These reference points are not mutually exclusive, but rather complementary in defining the
dimensions of PLM across the different functions of the organization, and can be used as
valuable input into determining how PLM should be deployed into your organization:
eTOM (Business Process Framework)
ITIL (Information Technology Infrastructure Library)
SDLC (Software Development Lifecycle)

Each of the above frameworks is only briefly described in the subsequent sections, primarily to
delineate their relevance to PLM. The source material is extensive and should be examined for
use as benchmarks and blueprints.
2.1.1. Business Process Framework (eTOM)
The Business Process Framework (eTOM) is a comprehensive, industry-agreed, multi-layered
view of the key business processes required to run an efficient, effective, and agile enterprise
specifically for the Digital Economy. It is the most widely accepted and adopted standard for
business processes in the industry, providing a business process model/framework for use by
operators, service providers, and other organizations in the ecosystem. The Business Process
Framework, a critical component of Frameworx, has been created and agreed by industry
leaders and practitioners.
PLM is a well-defined domain in the Business Process Framework, which identifies key PLM
business processes across a number of organizational competencies that support the

marketing, offer, service, and resource management of the product, the relevant components
of which are highlighted in blue in the diagram below
9
:

Figure 11 Business Process Framework with PLM Designations. Source: TM Forum.

Figure 12 Business Process Framework PLM Domain. Source: TM Forum.

9
TM Forum document GB921-P, GB921-CP. www.tmforum.org.

PLM in the Business Process Framework is formally defined as end-end processes to manage
products to the required profit and loss margins, customer satisfaction, and quality
commitments, as well as delivering new products to the market. These lifecycle processes
understand the market across all key functional areas, the business environment, customer
requirements, and competitive offerings in order to design and manage products that succeed
in their specific markets. Product Management processes and the Product Development
process are two distinct process types. Product Development is predominantly a project-
oriented process that develops and delivers new products to customers, as well as new
features and enhancements for existing products and services.
Ultimately, the utilization of the Business Process Framework is intended to:
Create a common language across the organization
Add standard structure, terminology, and classification
Apply discipline and consistency across departments
Understand, design, develop, and manage IT applications in terms of business process
Create consistent and high quality end-to-end processes
Identify opportunities for cost and performance improvement

The Business Process Framework highlights that PLM is a core process of the overall functions
vital for the operations of a company. The Framework is aligned to the Information Technology
Infrastructure Library (ITIL).
2.1.2. Information Technology Infrastructure Library (ITIL)
The Information Technology Infrastructure Library (ITIL) is a set of practices for Information
Technology Service Management (ITSM) that focuses on aligning IT services with the needs of
the business. ITIL describes procedures, tasks, and checklists that are not organization-specific,
which organizations use to establish a minimum level of competency. It allows the
organization to establish a baseline from which it can plan, implement, and measure. It is used
to demonstrate compliance and to measure improvement. ITIL advocates that IT services must
be aligned to the needs of the business, allowing for the organization to establish a baseline
from which it can plan, implement, and support the IT services.
10

10
itSMF. An Introductory Overview of ITIL V3. Published 2007.

Figure 13 ITIL Service Lifecycle. Source: ITIL/itSMF.

The relevance of ITIL to PLM is the generic service lifecycle that ITIL seeks to manage. ITIL
publishes five core guides that map the entire ITIL Service Lifecycle, beginning with the
identification of customer needs and drivers of IT requirements, through to the design and
implementation of the service into operation and finally, on to the monitoring and
improvement phase of the service.
Where ITIL focuses on the activities to deliver within IT against business requirements, the
Business Process Framework focuses on the overall organizational processes that drive out
those activities.
It is in this IT Service-to-Business Process vein that the ITIL standards around service lifecycle
and change management comfortably complement the Business Process Frameworks PLM
process standards. ITIL highlights that the detailed processes of PLM need to be incorporated
into the overall IT fabric of the organization.
This relationship is supported by the recent efforts by both TM Forum and ITIL to map the
mutual process models to each other:

Figure 14 ITIL to PLM Mapping. Source: TM Forum.

ITIL ultimately seeks to deliver benefits similar to the Business Process Framework:
Improved IT services
Reduced costs
Improved customer satisfaction through a more professional approach to service
delivery
Improved productivity
Improved use of skills and experience
Improved delivery of third-party service
2.1.3. Software Development Lifecycle (SDLC)
Software Development Lifecycle (SDLC) is the process or method applied to create or alter
software projects. It defines the way to create a new software module or program
11
. The
different models of SDLC (Waterfall, Spiral, Agile, Incremental, and so forth) each have a
process flow that defines the design, build, and test efforts that guide the software
development project. For this reason, SDLC is typically a model that is adopted primarily by IT
organizations:

11
http://www.sdlc.ws/what-is-sdlc/.

Figure 15 Software Development Lifecycle. Source: Wikimedia Commons.

In the context of PLM and the broader organization, SDLC can be viewed as a subset of
processes within the whole PLM framework. When the delivery of a products capabilities
depends on the creation or modification of software, the activities of SDLC support the Design
and Implementation stages of PLM.
It is logical that the SDLCs flow conceptually mirrors that of PLM: software has a lifecycle that
needs to be managed in and of itself but also in the context of the broader purpose it serves,
which is the Product.
Getting the organizations product management activities working in concert with the SDLC
models activities is a key objective of the Holistic PLM Framework.
There are also some synergies between the SDLC framework and the service development
principles established in TM Forums SES TR168, Software Enabled Services Management
Solution and Frameworx Relationships, Version 1.5. Of particular relevance are the lifecycles
and roles defined here:
http://www.tmforum.org/browse.aspx?linkID=46857&docID=15788
Note: additional work is expected to align the SES Lifecycle Management work included in TM
Forums SES TR168 and the PLM work outlined in this document.

2.2. Standing up PLM
2.2.1. Establishing the PLM Foundation
The purpose of the PLM Framework is to streamline the organization through a structured,
dynamic, and human way to make Product change happen faster while enabling value creation
for the customers and the company.
So any discussion on how to deploy PLM within an organization to achieve that value creation
needs to begin with what the product lifecycle actually is and means to the company.
One example of how to understand the implications of PLM for the organization is to refer
back to the five building blocks of Holistic PLM described earlier.
When taken in turn, each building block can comprise specific components or bite-sized
chunks that make a specific contribution to the design and maturity of PLM:

Figure 16 Holistic PLM Building Blocks. Source: Telecom New Zealand

based on Detecon Model
12
.

As the building blocks are further decomposed, you can ensure correct alignment with key
processes to organizational responsibilities. The net result is to deliver a connected Product
operating system with the building blocks working together to achieve a common purpose:

12
Building Blocks Design Blueprint based on the Detecon Consulting PLM Framework; Detecon Consulting. Next Generation Telco Product
Lifecycle Management: How to Overcome Complexity in Product Management by Implementing Best-Practice PLM. September 2010.

Figure 17 Organization & Process Alignment. Source: Telecom New Zealand.
13

The outcome is a PLM Framework that brings together all of the stages of the product lifecycle,
from idea through to retirement. The framework connects all the touch points of the product
lifecycle across the organization, from customer through to IT platform, ensuring that that
product information is captured, shared, and managed without any gaps.
The ultimate objective is performance improvement in the way of
14
:
Time Decrease time to market, decrease waiting time, and decrease delay in
delivery to the customer
Cost Reduce execution cost, increase human resource performance, and decrease
churn rate
Process quality Increase PLM process performance, increase customer value
performance, increase value net performance, and increase information availability
and accuracy
Product quality Improve product launch quality, increase provisioning performance,
reduce technical defects, and increase service quality
2.2.2. PLM Design Principles
When developing a PLM Framework for your organization, it is important to establish a set of
principles to guide the design of the framework. The design principles need to be specific and
then socialized, agreed to, and endorsed by the appropriate leadership and bought into by the
key stakeholders.
Examples of such principles are as follows:

13
Organization & Process Alignment Local & Global. Julian Lonsdale, Telecom New Zealand.
14
Detecon Consulting. Next Generation Telco Product Lifecycle Management: How to Overcome Complexity in Product Management by
Implementing Best-Practice PLM. September 2010.

# Principle Description
What this means to the
organization
1 PLM is strategic
and holistic
Spans across all Product
functions, and all lifecycle
stages of the product, from
cradle to grave.
A consistent set of processes,
methodologies, and tools to
manage the lifecycle of products
and product-related initiatives.
2 PLM Is designed
with the end in
mind
Focus is on the outcomes,
with the aim of creating a
path to mature the Product
practice.
A clear set of outcomes to
ensure an efficient realization of
the PLM process across all
domains and workflows.
3 PLM realization
uses prototyping
and
human/customer
centered design
Connects the company with
its customers through co-
creation and an agile,
iterative approach to
product development.
Best practice methodologies and
tools to be able to turn
opportunities and ideas into
value for the customer and the
company.
4 PLM is information
based
Delivers a structured,
information-driven approach
to managing the Product
Intellectual Capital, aligned
with best practice
international standards, e.g.
eTOM.
A structured, consistent and
repeatable methodology to
manage the Product Intellectual
Capital in a Single Source of
Truth Product Data Manager.
5 PLM is a process
with a human-
centered design
Puts product creators and
managers at the center of
the new model with clear,
simple and usable processes
across the entire lifecycle.
A simple, usable PLM framework
that is optimized to match the
needs of peoples roles.
6 PLM creates a path
to maturity
The PLM process can be
both manual and
automated.
An introduction to the PLM
framework in bite-size chunks
to minimize disruption and
complexity.
7 PLM enables
Product process
and practice
harmonization
with the wider
company
ecosystem
Is in synergy with the
relevant processes and
functions within the wider
company ecosystem.
Interfaces and tools working
seamlessly with the wider
company ecosystem.
Table 2 PLM Design Principles. Source: Telecom New Zealand.

2.2.3. Example PLM Process Models
Understanding what PLM processes to execute on to deliver the Product and its resulting value
creation is the ultimate goal of a PLM framework.
It is the PLM process model that helps to define those processes, how they are to be executed,
and by whom.
A process model encompasses a functionally similar grouping of processes together into a
complete set of activities. It is intended to be used repeatedly against the grouping of
functions. In this case, the PLM process model is the set of repeating processes grouped
together to achieve an organizational PLM practice. A process model helps to depict how the
processes will work together, while the detail lies within the actual processes. A process model
should be descriptive, prescriptive, and explanatory.
Some example process models are highlighted in the following sections.

Tribold PLM Process Model
The Tribold PLM Process Model breaks down the Holistic PLM Framework described earlier at
the Level 1 and Level 2 layers into an increasingly detailed layer of processes. The resulting
Level 3 processes are grouped within key functions in the order in which they logically flow. At
a high level, you can then understand how the PLM processes would flow through the
organization.

Figure 18 PLM Process Model. Source: Tribold Limited.

The detail that underpins the Level 3 processes forms the activities that deliver on those
process objectives:


L2 Process L3 Process Description
Develop Product
Strategy
Analyze Market
Data and Product
Portfolio Data
Gather and analyze market and competitive
data as an input to the product portfolio
strategy.
Establish Market
and Product
Strategy
Focus on the strategic, long-term vision and
product plan for the future.
Develop Product
Portfolio
Manage the product portfolio roadmap and
make decisions that align with the strategy.
Develop Product
Plans
For each product that has been included in the
product portfolio, develop the implementation
plan including effort, timeline, and resources.
Manage Product
Portfolio
Manage the product implementation plans to
ensure the products are delivered as scheduled.
Design &
Develop
Products
Generate Product
Ideas
This is a continuous, systematic search for new
product opportunities involving sources of new
ideas and methods for generating them.
Includes the capture of requirements.
Develop High-
Level Concept
Turning the idea /mockup of requirements into
a high-level design that screens the suitability of
the new idea into a realistic form/feasibility.
Develop Detailed
Concept
Enhancing the high-level concept through
further analysis that clearly and accurately
describes the business and technical design to a
lower level of detail to meet the requirements.
Implement
Product

Build and test the product design ensuring the
development and ultimately the testing carried
out ensure the product is fit for purpose.
Product Launch

The distribution of product data from Tribold to
target applications.
Monitor &
Update Product
Data
Develop &
Generate Product
Reports
Create product reports that provide useful
information.
Track Product
Performance &
KPIs
Through the use of analytical tools to asses and
analyze product performance against the KPIs.
Analyze Product
Report Data
Performing a deep dive of product reports that
determine ongoing product development but
also as input to innovate new product
development.
Identify Product
Update
Opportunities
Following any analysis, the outcome that
identifies product change, including retirement
and grandfathering opportunities.

L2 Process L3 Process Description
Submit Updates to
the Product
Portfolio
Steps carried out to implement the new
changes.
Table 3 Holistic PLM Framework Level 2/3 Processes. Source: Tribold Limted.

Telecom New Zealand Process Model
The Telecom New Zealand process model aligns what it terms as Pathways to the inputs and
outputs of a particular stage in the lifecycle of products. A PLM Pathway has a clear purpose
and describes the lifecycle of events that lead to the delivery of an outcome.

Figure 19 PLM Pathways. Source: Telecom New Zealand.

The process model provides a clear connection between the business PLM processes you are
trying to execute as part of Product Management and the underlying IT processes that help to
achieve the desired outcomes. It is then easy to understand at a high level the key functions of
the PLM process model, the required inputs and expected outputs, and interactions with the
required IT processes.

IDEA DEFINE REALISE SUPPORT/ENHANCE RETIRE
(1)
Insight to
Strategy
(2)
Strategy to
Plan
(7)
Performance
to Insight
(3)
Idea to
Definition
(4)
Definition to
Realisation
(5)
Realisation
to Launch
A PLM Pathway is a logical grouping
of inputs and outputs within a
specific functional domain. A
PLM Pathway has a clear purpose
and describes the lifecycle of events
that lead to the delivery of the
outcome.
(6) Launch
to Change
PLM Pathways
GLOBAL
LOCAL
PORTFOLIO STRATEGY
PORTFOLIO
PLANNING
PRODUCT 2
MARKET
PRODUCT
MANAGEMENT
PORTFOLIO
PERFORMANCE
PRODUCT LIFECYCLE MANAGEMENT FRAMEWORK


Figure 20 PLM Process Model. Source: Telecom New Zealand.
2.2.4. PLM Stages and Gates
Product innovation begins with an idea and ends with the successful launch of a new product.
The stages between the idea and launch can be check-pointed by gates.
Stages are where the action occurs. Gates are where the decisions are made. The players on
the project team undertake key tasks to gather information needed to advance the project to
the next gate or decision point.
Stages are cross-functional (for example, there is no specific Research and Development or
Marketing stage), and each activity is undertaken in parallel to enhance speed-to-market. To
manage risk, the parallel activities in a certain stage must be designed to gather vital technical,
market, financial, and operations information to drive down the technical and business risks.
Each stage costs more than the preceding one, resulting in incremental commitments. As
uncertainties decrease, expenditures are allowed to rise and risk is managed.
Gates are employed at major decision points in each stage, where a strategic decision should
be made on whether and how to proceed with product development and deployment.
Decisions at the gates typically involve executive or steering committee level personnel who
are responsible for ensuring the products align with the organizations strategic goals and
objectives:

Figure 21 PLM Stages/Gates. Source: Tribold Limited.

Gate 0 The ideas technical, economic, and financial feasibility is scrutinized. In this
way, it is possible to understand if the new product complies with the
companys strategy and if an explicit customer benefit is in evidence.
Typically, a governing board has a crucial role in this stage because it sees if
the new ideas are in accordance to the strategic direction followed by the
company.

Output: Idea is ready for Planning
Gate 1 A rough concept with a description of the product and of the customers
benefit in detail is presented. A coordination of the basic technical feasibility
and a formulation of the first cost estimation take place. For the
implementation of the project there is an approximate delineation of the
operating plan. Setting the market estimation with market-intelligence tools
and the product placement provides the initial information about the
probability of success on the market. The valuation of legal and regulatory
aspects is especially important and is estimated here.

Output: Plan is ready for Design
Gate 2 The product concept is completed and any other relevant conceptual design.
Creation of business cases and formulation of KPIs are other significant
cornerstones of this milestone. The general scope of the project is established
with the detailed project plan (time, resources, efforts, reporting, and
performances prosecution).

Output: Design is ready for Build & Test
Gate 3 The product is built and tested. An examination of possible deviations or
differences in comparison with the plan (time and cost) is done here. In some
cases, a project review at management level is necessary.

Output: Build is ready for Launch
Table 4 PLM Gate Definitions. Source: Tribold Limited.


The structure of each gate is similar:
Deliverables: Inputs into the gate review. What the project leader and team deliver to
the meeting. These are defined in advance and are the results of actions from the
preceding stage. A standard menu of deliverables is specified for each gate.
Criteria: What the project is confronted with to make the go/no go and prioritization
decisions. These criteria are organized in a scorecard and include both financial and
qualitative criteria.
Outputs: Results of the gate review. Gates must have clearly articulated outputs
including: a decision (go/kill/hold/recycle) and a path forward (approved project plan,
date, and deliverables for the next gate agreed on).
2.2.5. Typical PLM Roles
Responsibility for executing the processes in each stage depends on the roles defined in the
framework. Examples of common PLM-related roles include those that follow:

Role Description
Product Manager Designs new products (typically within a certain product line)
and coordinates and manages all product-related changes.
Typically this role leads any product-related implementation.
Marketing Manager Coordinates and manages the marketing-related aspects of a
product change, often involved with product decisions,
including time schedule, budget, and issue resolution.
Configuration Manager Manager responsible for creating and managing component
specifications and managing the underlying data configuration
of the application.
Pricing Manager Manager responsible for creating and managing charges, prices,
and price lists.
Approvals/Staging
Manager
Manager responsible for approving and staging entities
product entities, generic entities, and charge entities based on
user permission.
Launch Manager Manager responsible for launching entities product entities,
generic entities, and charge entities based upon permissions.
Business Manager Business Manager with read-only access to all areas.
Project Manager Manager responsible for defining, tracking, and managing
project entities.
IT Lead Coordinates and manages all technical, IT-related changes,
often involved with service and resource management and then
product. Used to support Product Management.

Role Description
Customer Services Supports other roles for validation of all changes, being the
forefront to customers before, during, and after a purchase.
Communicates requirements for the sales and customer service
aspects of the product.
Corporate-Wide
Operations
A representative group from across the organization. These
roles are typically involved in sign off gates in the process. Some
of the groups are: Legal, Network, Operations, etc.
Administrator Responsible for administrative aspects of the application,
including security access.
Table 5 Typical PLM Roles. Source: Tribold Limited.

Other examples of relevant roles, specific to the Service Management domain, can be found in
TM Forum document GB924, Service Framework Guidebook, V1.0. This guidebook describes
the stages and the gates needed for the Service Lifecycle, which has a set of actors involved in
the governance of the product composite lifecycle.
http://www.tmforum.org/browse.aspx?linkID=28454&docID=2198
2.2.6. Bringing It All Together
PLM delivers a structured, dynamic, and human way to make product innovation happen
faster and enables value creation, sustainably and profitably.
It is structured, because it simplifies and organizes the Product Intellectual Capital to
eliminate complexity.
It is dynamic, because it creates an evolving, flexible system of end-to-end workflows
to create and manage the Product Intellectual Capital from cradle to grave.
It is human, because it puts product creators and managers at the center of new
approaches with clear, simple, and usable functions across the entire lifecycle.


Figure 22 PLM In Practice. Source: Telecom New Zealand.

Most importantly, PLM is collaborative, iterative, and customer centered:
Collaborative. All of us are smarter than any of us. The fundamental nature of PLM is
interdisciplinary and therefore requires everyone to be involved in an active,
participatory way. Today, a typical decision-making or project environment is
multidisciplinary, and each individual is an advocate for their own function or technical
specialty, and the idea or product becomes a protracted negotiation among them,
likely resulting in a gray compromise. In an interdisciplinary team, there is collective
ownership of ideas, and everybody takes responsibility for them.
Iterative. Prototyping wins arguments. PLM enables building an idea in bite-size
chunks rather than trying to get everything done all at once. Instead of debating for
days whether a new idea is possible or what the best way to build something is, it is
better to put the idea to the test and run a prototype. The Product Data Manager
makes this possible. Both Simple (new Offer involving a price change) and Complex
(new Product) ideas can be prototyped in the Product Data Manager to validate the
concept. The idea can be tested further by taking the prototype concept from the
Product Data Manager and building it in a live environment, such as a lab or a
production network sandpit.
Experience Centered. The value of the product transcends its basic utility. Customers
dont need products. They need experiences to satisfy their needs. They apply their
skills to generate an exchange of value (an interaction/encounter) and obtain
satisfaction. PLM shifts the focus from the static, often isolated components of the
marketing process and the mere physical aspects of the product (quality and

functionality of the product, brand, price, delivery) to a far more dynamic, integrated
system, where the customer is at the center of the exchange process, both as an
active participant and as a co-producer. With this shift, which is part of a wider
marketing transformation, the value creation process is realized through designing,
engaging and lasting experiences for the customer.


3. PLM Challenges and Opportunities
As an organization turns its focus to improving its PLM process, it commonly faces some of the
following cross-industry challenges. These pain points need to be turned into opportunities for
growth and achieving a sustainable organization. It is important to note that an improvement
in PLM can range from minor adjustments to major transformation. If an organization focuses
wisely on the most inefficient areas of the process, broad benefits can be gained.
3.1. Challenges
Lack of executive commitment and enforcement of PLM.
o PLM cannot be successfully implemented and then adopted throughout the
enterprise without thorough commitment and endorsement from the
executive management team. This team should be fully educated and aware
of what PLM brings to the table.
o All too often, PLM is something of which people are aware as a concept and
principle but are unsure of in terms of the practicality of executing on PLM
fundamentals. In addition, decision makers may not be clear on how adopting
a PLM framework can help solve critical problems in the organization.
Without the executive commitment and understanding, it is difficult to
enforce any PLM framework that is in place.
o Individuals in the organization who are responsible for financial and
productivity targets related to PLM and understand the benefits of PLM
should focus on educating executives and decision makers on PLM and seek
out and achieve endorsement from an executive. Ongoing organizational
initiatives that support and drive the embedding of the PLM standard and
areas for improvements should be common.
Lack of control outside product management/definition process.
o When a defined PLM process is in operation, it often only controls the
activities related to the functional planning, design, and deployment of a
product, for example product and marketing. There are critical, dependent
IT/systems processes that are required to be completed or the functional
product to be launched into market, but these processes are not governed by
the PLM process.
o PLM should span across the entire enterprise and typically involves many
organizational departments working collaboratively to support all phases of
the lifecycle. Because business organizations and IT organizations typically
have different executive leadership, it is critically important that sponsorship
is achieved from both organizations. Ideally the two (or more) organizations

will jointly endorse the enterprise PLM process. The resulting PLM processes
should encompass all areas in equal detail and understanding and ensure that
touch points and handoffs between the organizations are clearly understood.
Lack of definition of the idea generation and planning phase.
o There is often little structure and rigor around the activities of gathering
product ideas and planning and prioritizing those ideas into the strategic
product portfolio. A fundamental objective for any organization to stay
competitive and ahead of the ever-growing market needs and customer
requirements is to be able to support new and innovative ideas and concepts.
o PLM will help support what should be a repeatable upfront early product
stage, allowing for all organizational departments to push forward ideas in a
coherent, straightforward, and easy manner. A working area where this can
be managed can pay huge dividends. All too often, good ideas are not
developed and bad ideas end up in the market, because a process does not
exist to effectively sift through the ideas to move forward the best, most
competitive, and lucrative ideas. Innovative organizations are the sustainable
organizations of the future.
Synergy across product development projects is not capitalized upon.
o Due to lack of centralized control, there is often an inability to gain synergy
across multiple, related product development projects. This leads to duplicate
work efforts as well as loss of efficiency.
o PLM supports not only the governance and centralization of all projects
across the organization but provides far better allocation of resources, time,
and effort, so these projects can be managed and run much more efficiently.
Also the information and data used across projects can potentially be reused,
and therefore organizations can avoid reinventing what may already exist,
whether it is an exact product copy or something very similar.
Lack of true product data visibility.
o When organizations are asked what data and information they have on their
products and how this information is stored and managed, there is often
confusion and no clear way of finding this information. It is not uncommon
for this information to be uncoordinated and fragmented across a number of
systems and documents and with people who have worked with the products
for many years.
o PLM gives clear visibility of this data and information, how it is being used,
and for what purpose. With the access to this intellectual capital, the
organization can manage its information far more accurately to be able to
make better decisions.


No in-life processes that support retiring products.
o The product portfolio of a company should only contain the products (and
associated offers, services, resources) that are actively being sold to
customers and being maintained for customers. All other products and
supporting product data should be retired from the available product catalog.
This retirement includes removing the data and functionality required to
support those products from all systems, processes, and documentation
throughout the organization. Unfortunately, this area of PLM is typically
lacking in definition and execution. Understandably, many companies face
the dilemma of investing time, budget, and resources towards new products
to meet competitive demand or retiring a lean product catalog.
o However, maintaining a lean product catalog that contains only the products
that are currently sold and active in the customer base can lead to great gains
in efficiency and decrease the cost of future software and product roadmap
goals. It is recommended that a percentage of resources (time, budget, and
people) are allocated annually to the task of retiring (removing from sale and
internal support) or grandfathering (removing from sale but supporting for
the customer base).
3.2. Benefits and Potential Value
Some of the financial targets that help to quantify the benefits of a transformative or
improvement PLM project follow. They are benchmarks that have been underpinned by
referenceable case studies in the marketplace
15
:
Achieving a 50% reduction in the time to market. By reducing the time to market from
idea to sale of products, organizations can stay ahead of the competition and adapt to
market trends and customer requirements.
Achieving a 20% increase in revenues by widening the product portfolio. By having
more control and management, organizations can add many similar and new products
onto the portfolio, increasing the customer product choice and attracting new
customers.
Achieving a 20% increase in revenues by introducing products faster. By offering
products faster to the market, products stay in line with demand and increase product
purchases.
Achieving a 40% increase in revenues by introducing new products/services on
existing offerings. By allowing for more variety and customer choice covering all angles
a customers requirements

15
John Stark Associates and SofTech, Inc. 10 Critical PLM Facts Every Executive Should Know - Executive Briefing White Paper. July 2006.

Achieving a 35% increase in product quality. By allowing for better control of the
product designs and implementation stages, in particular the testing activities,
organizations have more rigor, efficiency, and accurate throughput to meet the
customers high expectations.
Achieving a 60% reduction in cost to market. By reducing the overall project cost from
idea to availability for sale, including the cost of resources and how they are being
utilized, organizations save through the reduction of activities in the product design
and implementation stages that can bear a heavy cost.

A Case Study
16

A renowned company in the telecommunications industry carried out an extensive
restructuring program that would enable it to maintain its position in a deregulated market
environment. The objective was on the one hand to convert the previously technical-driven
approach for the product design and an orientation towards technical performance features to
an approach focusing on the customers needs and requirements. On the other hand, the aim
was to develop and implement the integrated management approach Next Generation PLM.
In the initial situation, the PLM and the platform were not state-of-the-art(e.g. no
withdrawal phase, missing of decision gates, long time-to-market etc.). A portfolio
management process was not designed and implemented.
The current portfolio structure was oriented on the organizational or technical structure and
not organized from the customers point of view. The product portfolio was characterized by a
large number of product variants and features. All these products needed to be handled
individually from an IT management perspective. This broad variety of products needed to be
realized and implemented within all operative processes, IT applications, and systems, as well
as in sales information tools. This led to an enormous complexity that impeded the
maintenance of the IT landscape and the management and optimization of the processes. No
integrated IT solutions were available at the company and at its affiliates.
During the project, the integrated PLM approach valid for the company and its affiliates was
developed. Implementation of Next Generation PLM at this company showed the valuable
benefits for solid product development, marketing, and strategy:
PLM Strategy
Sound marketing strategy due to the early recognition of market needs, standardized
information, and environmental issues.
More detailed input for controlling the exact allocation of revenue and costs to
products.
Simpler allocation at cost centers and cost unit.

16
Julius Golovatchev, Oliver Budde, Detecon International GmbH, Bonn, Germany. Sustainability through Next Generation PLM in
Telecommunications Industry.

Introduction of the harmonized product portfolio for all national and international
affiliate companies.
Product Architecture
Easier know-how exchange and use of the same language during product
development, as well as fast and efficient communication between international
partners.
Introduction of the harmonized product definition and product portfolio for all
national and international affiliate companies.
The product portfolios across the company were to be reduced by 50% and integrated
into a modular structure.
New ways to reuse materials.
Adoption of the product data platform at all international subsidiaries.
PLM Process
Acceleration of time-to-market of up to 25% for several product groups.
Reduction of quantity of energy and material used in product development and
production up to 20%.
Efficient cost savings along the PLM process by using standard support system and
reuse of modules and components (process costs saving up to USD$170 million/year
in the product realization phase).
Effective and similar procedure of innovation and market management projects
execution.
PLM IT Architecture
An implemented shared platform for document and project management.
One physical server used to support separate product lifecycle management
processes in all divisions and subsidiaries.
3.3. Measuring PLM Results
Key Performance Indicators (KPI) help an organization to define and measure progress towards
organizational goals. Once an organization has analyzed its mission, identified all its
stakeholders, and defined its goals, it needs a way to quantifiably measure progress toward
those goals. KPIs are those measurements. KPIs will differ depending on the organization. A
business may have as one of its KPIs the percentage of its income that comes from return
customers or a revenue target per customer.
Whatever KPIs are selected, they must reflect the organization's goals, they must be key to its
success, and they must be quantifiable (measurable). KPIs are usually long-term

considerations. The definition of a KPI and how it is measured does not change often. The
goals for a particular KPI may change as the organization's goals change, or as it gets closer to
achieving a goal.
KPIs are valuable for teams, managers, and businesses to quickly evaluate the progress made
against measurable goals. KPIs will be split across the organization, for example the marketing
department will most likely have a different set of goals than the IT department. In this
document, the focus is on those KPIs that have an impact on product-related goals.
3.3.1. Industry Standard KPIs
The table below outlines those KPIs that are common and typically regarded as industry
standard. The following list outlines specific KPIs and a description:
Time to Market (TTM) The length of time it takes from a product being conceived
until it is available for sale
Cost to Market (CTM) The expenditure to take a product from conception to
availability for sale
Quality to Market (QTM) The measure of bringing efficient, effective, and robust
products to the market
Average Revenue Per User (ARPU) The measure used to calculate the total revenue
divided by the number of subscribers/users
Customer Take Up The total number of subscribers/users typically measured from
previous months/years
3.3.2. KPI Pitfalls to Avoid
To ensure the full benefits of realization of the KPIs already defined, the organization should
consider and avoid the following pitfalls:
Measures not linked to strategy Critical to do initially, but also revisit when either
the organizational strategy or structure changes.
Measures not driven into organizations Breaks the linkage with overall strategy.
Should be driven into staff performance agreements at all appropriate levels.
Too many measures Creates lack of focus on what is really critical to managing your
business.
Focusing only on the short-term A cross-section of past (lagging), present, and future
measures is critical.
Measuring progress too often Could result in unnecessary effort and excessive costs,
resulting in little or no added value.
Not measuring progress often enough May not know about potential problems until
it is too late to resolve easily.

Collecting too much data Could result in a mountain of data that really doesnt tell
you anything more than a lesser amount of the same data.
Driving the wrong performance Be careful that the measure(s) you select will result
in the desired result.
Failure to base business decisions on data Developing performance measures or
collecting data only to comply with a requirement does nothing to improve the
position of the company.
Not enough critical measures Missing information vital to Product management or
Marketing.
Collecting inconsistent, unrepresentative, or unnecessary data Critical to
understand up front what the data will look like, when it will be collected, at what
frequency, by whom, and what it means.
Reducing the value of data Too much data roll-up (summary) can mask the impact of
potentially significant events or trends.


4. PLM Maturity
4.1. Maturity Model Definition
Understanding the maturity of a companys end-to-end PLM process is an important step in a
PLM program, whether the company is just embarking on the transformation, is in the midst of
the transformation or has completed the transformation with the deployment of the initial
goals. As it is now clear that PLM has clear benefits to the success and sustainability of a
company, many companies want to understand how they are performing against a neutral
benchmark.
Until recently (early 2000s), the only benchmarking option available to companies was to use
insights provided by similar companies. Now, there are many maturity models in the industry
of which to apply the principles to an organization. A maturity model should accomplish the
following goals:
Evaluate an organizations maturity against a neutral standard.
Provide input for planning and strategy for future PLM improvements.
Help define short, medium, and long-term roadmaps.
Assist with the socialization of PLM progress in the organization.
Contribute to a business case for future PLM development.
The maturity model presents a view of an organization across a number of key measurable
PLM activities and stages. Each incremental stage and corresponding PLM activity highlights a
level of maturity.
4.2. Key Aspects of a Maturity Model
An advanced maturity model should have the following characteristics:
Produce quantifiable and actionable results.
Assess aspects across the entire organization, for example, processes, product data,
products, PDM applications, PLM applications, people, facilities, locations, metrics,
and organizational structure.
Have in-depth questions for each of the areas.
Address the typical PLM process areas from idea through retirement.
Take into account all the applications involved in product development, management,
and launch.
Include the interaction between the customer and the product to the organization.

An example of a maturity model created by PricewaterhouseCoopers (PwC) follows:

Figure 23 PwC Product Management Maturity Framework. Source: PRTM Study.
Informal
Management
Stage 0
Functional
Excellence
Stage 1
Program
Excellence
Stage 2
Portfolio
Excellence
Stage 3
Collaborative
Development
Excellence
Stage 4
Informal practices
based on
individual
experience
Excellence within
functions, but not
across functions
Functions aligned
for effective
execution from
concept to market
Processes aligned
to achieve
platform leverage,
portfolio balance
and excellence in
program selection
and execution
Integrated
innovation chain
formed by linking
processes across
internal and
external business
partners for
maximum
leverage
Managi ng
Across Functi ons
Managi ng
Across Programs
Managi ng Across
Portfol i os & Partners
Moving from Stage 1 to Stage 2 leads :
50% increase in average growth
50% reduction in PwCs time to market index
10% increase in productivity
Moving from Stage 2 to 3 leads to :
~60% further increase in average growth
20% further reduction in PwC time to market index
15% additional productivity increase

5. Why PLM
With PLM becoming ever more pervasive in the industry, it is apparent that the trend is
growing whereby more and more organizations will soon be adopting PLM systems, practices,
and approaches.
Organizations are clearly seeing the benefits and reaping the rewards of PLM, having spent
valuable time and effort to incorporate PLM into their business practices.
Because PLM focuses on providing a controlled framework for managing and tracking product
data with the use of people, technology, processes, and data, the only way it works coherently
and successfully is if these interlinking pieces work in a coordinated and collaborative fashion.
Given the backdrop of the technical and commercial environment, the alternative is almost
unthinkable:
Without PLM With PLM
Think Process Think People
Think Functions Think System
Think Product & Service Think Experience
Think Money Think Value
Think Product Development Think Product Design
Think Assumptions Think Analytics
Think Build Think Prototype
Table 6 With and Without PLM. Source: Telecom New Zealand.
17

The approach to delivering a structured, dynamic, and human PLM is based on the simple
assumption that all people care primarily about building and being a part of great things that
are successful and make money.
This approach can be summed up in the following sticky benefits:
Empower product accountability: have end-to-end visibility and control of products.
Enhance product knowledge: gain a deep understanding of the fabric of the products.
Encourage collaboration and fast thinking: have access to a common, reusable, and
flexible pool of marketable entities across portfolios and a dynamic PLM engine.
Enable speed to create and deliver: build intelligent products that people want to buy.
Enjoy work: eliminate complexity and frustration from day-to-day jobs.

17
Inspired by John Stark. Product Lifecycle Management, 21st Century Paradigm for Product Realisation. Springer, 2011.

6. Appendix
This Appendix provides additional background material about TM Forum and this document.
6.1. References
McCarthy, Jerome E., 1960, Basic Marketing. A Managerial Approach. Homewood, IL: Richard
D. Irwin.
Raymond Vernon, 1966, International Investment and International Trade in the Product
Cycle, The Quarterly Journal of Economics, Vol. 80, No. 2, pp. 190-207.
Teresko, John, 21 December 2004, "The PLM Revolution". IndustryWeek. Retrieved 26
September 2012.
TM Forum Frameworx and related documents (including Holistic Product Lifecycle
Management, TMForum Report - TR137 Conceptual Framework for PLM v1-3).
www.tmforum.org.
CIMdata Reports
John Stark. Product Lifecycle Management, 21st Century Paradigm for Product Realisation.
Springer, 2011 content has been adapted from the book.
Michael Grieves. Product Lifecycle Management. McGraw-Hill, 2006.
itSMF. An Introductory Overview of ITIL V3. Published 2007.
SDLC. http://www.sdlc.ws/what-is-sdlc/.
Detecon Consulting. Next Generation Telco Product Lifecycle Management: How to Overcome
Complexity in Product Management by Implementing Best-Practice PLM. September 2010.
John Stark Associates and SofTech, Inc. 10 Critical PLM Facts Every Executive Should Know -
Executive Briefing White Paper. July 2006.
PwC Product Management Maturity Framework, PRTM Study.
MphasiS. http://www.mphasis.com/pdfs/white-papers/introduction-product-lifecycle-
management.pdf.
Sustainability through Next Generation PLM in Telecommunications Industry, Golovatchev.J,
Budde.O,2011), Research Institute for Rationalization and Operations Management at RWTH,
Aachen, Germany.
Service Product Architecture for Telcos, Golovatchev. J, Budde, O, Institute for Industrial
Management at RQTH, Aachen, Germany.
PLM Interest Group. www.plmig.com.
Organization & Process Alignment Local & Global. Julian Lonsdale, Telecom New Zealand.
ITIL. http://www.itil-officialsite.com/.

6.2. Document History
Version Number Date Modified Modified by: Description of changes
0.1 17/10/12 Kiran Amin Introduced document structure and
added context to each section
0.2 02/11/12 Sharon Lynch Additional content
0.3 Catherine Michel Additional content, master draft
0.4 Ella Obreja Additional content
0.5 Keith Willetts Editorial review
0.6 13/11/12 Catherine Michel Final updates for review
1.0 18/11/12 Tribold
Telecom New
Zealand
Final version
6.3. Company Contact Details
Company Team Member Representative
Tribold Ernest Margitta
VP Marketing
ernest.margitta@tribold.com
+44 (0)20 7665 4000
Telecom New Zealand Ella Obreja
Product & Service Design Manager
ella.obreja@telecom.co.nz
+64 (21) 07 555 07
6.4. Acknowledgments
This document was prepared by the members of the TM Forum PLM team:
Catherine Michel, Tribold
Sharon Lynch, Tribold
Kiran Amin, Tribold
Ella Obreja, Telecom New Zealand

Product Lifecycle Management Introductory Guide

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Product Lifecycle Management Introductory Guide

Uploaded by

Copyright:

Available Formats

PRODUCT LIFECYCLE

You might also like