Digital Transformation is Being Slowed by Legacy PLM Systems

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The Impact of Legacy PLM Systems on Digital Transformation

Any hesitation organizations had regarding the criticality of digital transformation ended when COVID-19 made digital transformation a foregone essential. Despite the commitment organizations have to it, digital transformation initiatives still often fail. Legacy PLM systems have no doubt, contributed to these failures. 

The pandemic highlighted the need for organizations to digitally transform their underlying product ecosystems. And with that the product lifecycle management (PLM) software that supports it. This new type of “inside-out” digital transformation is based on more iterative, agile transformations that focus on data-driven efficiency, removing obstacles to collaboration and enabling customer-driven innovation.

Unfortunately, many firms are unable to digitally convert their product ecosystems to suit their customers’ future needs with their old PLM software. The overwhelming concern is that change is speeding rapidly, and businesses must stay up. Emerging technology, connectivity, market conditions, unanticipated disruptions, and an expansion in the sorts of product data required to compete are all factors to consider. 

In fact, customers of some PLM software suppliers were averaging eight to twelve years between updates, according to a recent CIMdata PLM Upgrade Study. The requirement to customize to meet business demands with PLM software that was not built to manage alterations while keeping the capacity to be upgraded is a primary source of technological obsolescence. Companies found it difficult to justify costly and disruptive renovations on a regular basis.

 

Problems of Legacy PLM Applications

Many firms are trapped with antiquated PLM software instead of a platform for digital transformation. Subsequently forcing them to change their operations to fit the technology rather than leveraging the technology to optimize their processes. 

Additionally, it’s unlikely that a user will be able to stay current if a software provider offers a low-code platform as part of their core PLM platform that allows users to customize and build apps from scratch but does not include upgrades as part of their subscription.

Furthermore, these outdated PLM systems not only cost more to maintain and upgrade, but they also increase technical debt or the expense of preserving legacy systems rather than investing in digital transformation. Thus, legacy systems can be sunsetted and disparate domains across the enterprise can be connected with a PLM platform. These can flexibly and sustainably customize and build new applications. Resulting in increased operational efficiency and improved collaboration that will drive more innovative products and operations.

 

The Time for Change is Now

Companies have been purchasing best-of-breed solutions to tackle departmental problems for years and then integrating them. That might have worked if there were no mergers, acquisitions, or reorganizations, and the world remained static. 

However, the reality today is one of rapid change, unanticipated disruption, the convergence of numerous technological advancements, tremendous expansion in terms of connection, and the utilization of various types of data on more complicated and tailored goods. Companies must make a deeper commitment to a more sustainable platform approach if they hope to increase their agility and business resiliency.

 

Digital Transformation with KloudPLM

To prosper in the future, continuous digital transformation is required. This is forcing companies to reconsider what they require from their PLM software. It shouldn’t be an out-of-date technical tool that stymies efforts to develop and grow the product ecosystem.

What’s needed is a PLM platform that’s open, adaptable, scalable, and upgradable by the vendor. One that supports customization and allows users to link their data, processes, and people. While also being able to adapt to changing business situations. The digital transformation platform should be a PLM platform.

KloudPLM is the best cloud-based PLM platform to streamline your product development processes. It is a single source of truth for all the stakeholders accelerating product cycle time and improving product quality. Schedule a demo today to learn more. 

 

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