To Customize or Not to Customize PLM: When, Why, and How

A key question for PLM consultants and product managers is how much to customize their PLM systems to fit specific business needs. Some organizations take PLM software “out of the box” (OOTB) with minimal changes, while others heavily tailor it with custom features. In this blog, we will explore what PLM customization means, its pros and cons and when (or how) to customize versus sticking with standard functionality.

What Is PLM Customization?

When companies use a PLM  system, they often need it to fit their unique way of working. There are often two main approaches.

Configuration

This is like using the PLM system’s built-in controls to tweak settings without any coding. We might set up user permissions, pick lifecycle stages, or adjust a workflow by choosing from templates the vendor provides.

Customization

This goes beyond the basics. It is all about writing code or adding new pieces so the system does things it was not able to do out of the box. That could mean building custom screens, changing database tables, writing scripts or plugins, or hooking into the PLM’s APIs to add new business rules.

In addition, there is a third factor as well, Extensions – for example using the PLM system’s supported extension mechanisms, like plug-ins, app modules, or scripting engines—to extend capabilities without altering the core system. Many vendors (e.g., Aras Innovator and Dassault’s Power’By apps / business rules) encourage this method.

It is often the case, where “One size does not fit all”,the same is with PLM systems, “One PLM can’t solve every puzzle.”

Why Customize a PLM System?

When done for the right reasons, PLM customizations can deliver significant benefits. Here are some of the main advantages of customizing the PLM solution:

• The primary benefit is that customization let us mold the PLM system around the unique workflows and data structures. Instead of changing the business process to fit the PLM software, we change the software to fit the business.
  
• In the real world, PLM rarely stands alone – it must connect with ERP, CRM, CAD, manufacturing execution, and other enterprise systems. Often, integrations require custom development. Customizations can create seamless data exchange and process integration between PLM and other systems
  
• A subtle but important benefit is happier users. Customizations like tailored dashboards, custom reports, or simplified forms can greatly improve the user experience and thus adoption of the PLM across the company.
  
• Custom functionalities often provide a strategic edge. If there are special process or service that standard PLM tools don’t support, a customization can enable that capability and set the company apart from competitors. For example, we can develop a custom module for a unique product compliance workflow or a specialized quoting process.

Despite the clear benefits, PLM customizations come with significant risks and downsides. It is important to understand these pitfalls:

• Perhaps the biggest drawback of customizations is the impact on future maintenance and upgrades. Custom codes are typically not supported by the vendor – when a new version of the PLM software is released, customizations might break or require rework.
  
• Every customization requires additional design, development, and testing effort. This can significantly increase the implementation cost and timeline. Over-customization is a known cause of PLM project budget overruns and delays.
  
• Introducing custom code can also impact the performance and stability of the PLM system. Vendor-provided features are usually optimized and tested at scale; PLM customizations may not be as efficient always.
  
• Custom solutions require ongoing care. Over the long run, companies may find themselves dependent on specific developers or vendors to support their custom PLM code.
  
• While customizations are meant to increase flexibility, over-customizing can make the system less flexible in the face of change. If the business needs to adjust a process, heavily coded logic might be harder to adjust than a configuration.

It is clear that over-customization is dangerous – it is frequently cited as a top reason PLM initiatives fail. The challenge is finding the right balance, using customization to achieve business value, but not so much that the system becomes a house of cards.

When to Customize and When to Stick to OOTB

Given the pros and cons, one of the toughest decisions for a PLM implementation team is deciding which requirements justify a customization and which should be handled by adapting the business process to the software

Situations where customizations are hard to avoid:

• Unique business processes that confer competitive advantage: If a process is part of the company’s secret sauce or strategic differentiation, and the PLM doesn’t support it out-of-the-box, that is a strong candidate for customization.
  
• Regulatory or compliance requirements: Some industries (like medical devices, aerospace, automotive) have stringent compliance processes that might not be fully addressed by generic PLM solutions.
  
• Integration with key system: If the PLM must integrate with homegrown software or a niche enterprise system, we may need custom connectors or data synchronization routines.
  
• When the vendor’s customization framework makes it low-risk: If you’re using a PLM platform known for safe customizations (for example, Aras with its upgrade assurances, or a SaaS PLM with supported extensions), the threshold for doing a customization can be lower.

Situations when to avoid PLM customizations:

• When the requirement is “nice to have” not “must have”: If a customization would be merely convenient but not critical, we must think twice. It may be better to use the PLM in a standard way even if it is not perfect.
  
• If the process can be adapted to fit the tool: Companies sometimes discover that what they thought was a unique requirement is actually addressed by following an industry best practice embedded in the PLM. It might be wise to adapt the business process to the OOTB capability rather than vice-versa.
  
• Limited IT support or tight budgets: If the organization does not have the resources (people, skills, budget) to develop and maintain custom code, then the company should be very conservative about customization.
  
• When upgrade frequency and agility are top priorities: If the strategy is to stay on the latest PLM version (e.g. in a cloud SaaS model where updates are frequent), then best strategy is to minimize customizations that could break with each update.

The question “to customize or not to customize” a PLM system doesn’t have a one-size-fits-all answer. It is a decision that hinges on understanding the organization’s priorities, the capabilities of the chosen PLM platform, and the long-term implications of bending the software to the organization’s will.

PLM Customizations are always a double-edged sword, wielded wisely, it carves out a competitive advantage and a perfect-fit system; wielded recklessly, it can cut into the company’s budget and future agility.