Product Lifecycle Management (PLM) systems, play a crucial role in modern product development. However, implementing or upgrading these systems often leads to frustration. Many projects experience delays, budget overruns, or even outright failure. Why? Because most PLM solutions struggle to adapt to the complexities of ever-changing business and engineering environments, kind of like assembling IKEA furniture without instructions but with just some extra screws.
Understanding Challenges with Traditional PLM Implementations
Most PLM systems are often built as one big, all-in-one solution. While this setup makes everything connected and easy to control, it’s not often very flexible. Companies find it hard to adjust these systems when their business processes, technologies, or market needs change.
For example, A global automotive manufacturer implemented a monolithic PLM system for product design and manufacturing. Over time, as the company initiated its new electric vehicle technologies, the system couldn’t easily integrate data from new engineering tools like battery simulation software. This lack of flexibility led to delays in adopting the latest innovations.
Another problem here is, most PLM tools especially in industries like aerospace, automotive, and electronics, involve extensive collaborations across multiple disciplines (e.g., software, hardware, mechanical). Most PLM systems, built with a focus on mechanical engineering along with its CAD brother, fail to provide adequate support for interdisciplinary workflows. These PLM systems and a mechanical CAD tool are like Swedish köttbullar and gräddsås, perfectly in sync. But throw software into the mix, and it’s like adding coleslaw to the plate—confusing, messy, and no one knows what’s going on
Software development teams often rely on different tools that aren’t easily connected to traditional PLM systems, leading to disjointed processes and inefficiencies. This challenge is especially significant in the automotive industry, where software has become a critical component of modern vehicles. With the rise of electric vehicles (EVs), autonomous driving, and connected car technologies, software now plays a major role in defining vehicle functionality and user experience.

Another big issue with majority of PLM implementations is vendor lock-in. Most PLM initiatives in organizations are tied up to a single vendor, which means companies depend heavily on that vendor for updates, new features, and support. This setup can make it hard for businesses to switch to better tools or adopt new technologies because they are locked into using what the vendor offers, even if it’s not the best fit for their needs.
BMW, a leading automotive manufacturer, relied heavily on SAP’s PLM system for its product development processes. As the system aged and BMW’s requirements evolved, the company faced challenges due to its dependence on a single vendor. This situation exemplifies the risks associated with vendor lock-in, where reliance on a single provider can limit flexibility and responsiveness to changing business needs. (Source: Engineering.com).
Adding to the list, PLM Implementations often takes many years, during which organizational needs or technologies may change. During this extended period, organizational needs and technologies may evolve, leading to a misalignment between the implemented system and current business processes.
A study published in The International Journal of Advanced Manufacturing Technology examined a PLM implementation within a fashion company. The implementation process faced significant challenges due to the industry’s unique requirements and the company’s existing processes. The lack of clear guidelines and the need for extensive customization led to delays and difficulties in aligning the PLM system with the company’s evolving business processes.
To address these challenges, many organizations are exploring Federated PLM architectures. These systems offer modular and flexible approaches, allowing companies to use the best tools for different disciplines. They also reduce dependency on a single vendor and adapt better to changing business needs.
We will explore one approach using Open Services for Lifecycle Collaboration (OSLC), to adapt to a federated PLM approach to ensure seamless interoperability across different tools, addressing the integration and flexibility challenges traditional systems face.
Stay tuned for this blog series, where we will discuss how to achieve Federated PLM systems using OSLC and explore practical strategies for its technical implementation in future posts.

My focus is on helping organizations optimize their product lifecycle processes, enhance collaboration, and achieve sustainable growth through effective PLM strategies. Dedicated to delivering value, I strive to empower clients to overcome challenges and achieve their business goals.