The Extended Enterprise and PLM:
Doing Business in the 21st Century

The 'extended enterprise' is the reality that in today's global market a company is not made up of just its employees, board members and executives - but also its business partners, suppliers and customers. The extended enterprise can only be successful if all of the component groups and individuals have the information they need in order to do business effectively.

Information globalization, virtual work environments, extended enterprise, multiple companies of varying sizes in the design and supply chain, lightening fast technological evolution. the 21st century business environment requires collaboration across teams, knowledge sets, locations and businesses.

Moreover, to succeed in today's highly competitive global markets, companies must meet increasing consumer demands for continually improved products and services - and they must be able to bring new or improved products and services to market quickly.

ENTER PLM

PLM meets these needs, extending and bringing together previously separate fields. PLM is often described as a holistic approach to product development, use, support and disposal. WorldNet 2.0 (© 2003 Princeton University) defines 'holistic' as: emphasizing the organic or functional relation between parts and the whole.

PDM (product data management) is designed to store and allow sharing of data that goes into product design. PLM (product lifecycle management) focuses on every component - applications, business processes, data, resources - through every phase of the lifecycle, from idea through discontinuance or recycling, across the extended enterprise.

Until recently, PLM solutions were designed for large manufacturing enterprises that had the extensive resources required to implement and maintain them. Solutions of the past were complex, expensive and difficult to deploy. Additionally, PLM solutions did not include enough pre-packaged functionality that would be easy to implement at a reasonable price point for mid-sized manufacturing enterprises.

But the business demands of today have companies of all sizes increasingly recognizing the need for PLM solutions. The extended enterprise requires access, compatibility and compliance across the board. Small-to-medium sized businesses (SMBs) have a real need for PLM solutions that integrate the functionality and standards of their industry.

In response to needs of the SMB market, PLM providers are now creating products that are more accessible to businesses across the extended enterprise. The solutions being offered today have improved significantly. We are seeing the emergence of prepackaged capabilities as a result of the continuous innovation and maturing of PLM solution providers and their products.

SIMPLICITY IS KEY

In Product Lifecycle Management: Paradigm for 21st Century Product Realization, John Stark writes, "With PLM companies think of the standard processes, standard data and standard systems that they, and their numerous suppliers, customers, and partners in the extended enterprise environment, can use to save an enormous amount of time and money. Without standards, each interorganization interface would be a source of chaos, would add costs, and would slow down the lifecycle activities."

As PLM's scope has expanded, a greater emphasis has been placed on the development and delivery of focused business solutions. These focused solutions are comprised of prepackaged functionality designed to simplify implementation and solve specific business problems.

The result is that many small and medium sized businesses are now implementing PLM in order to deliver better quality products faster and comply with specifications upstream. Simply put, PLM is becoming the way of doing business in the 21st century and a necessary solution for success in today's global business environment.