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How digital transformation supports improved product lifecycle management

▉ Insight 1

With market and competitive shifts happening in real time, leaders can quickly become laggards in today’s global economy.

To avoid this fate, companies need to establish a strong product lifecycle management (PLM) framework.

Creating strong PLM and supply chain frameworks should be part of a well-designed, connected and transparent end-to-end process. These frameworks must be backed by a clear operating model and require a modern technology stack supporting the business.

▉ Insight 2

Pressures include unprecedented volatility in customer demand and supply, increasing globalization and the rise of digital-first priorities and e-commerce.

As a result, companies need to plan for the worst-case scenario, even as they strive to achieve the best case.

Increasing globalization and regional market regulation are adding complexity to the supply chain and often leading to a high number of low-profit SKUs. Businesses are also experiencing significant cost pressures as they work to meet and improve target customer-service levels for a new age of empowered consumers who expect hyper-personalized attention and have heightened sensibilities and expectations about sustainability.

▉ Insight 3

A new breed of global customers is also driving the rise of e-commerce and a digital-first mentality.

They work remotely and are reachable predominantly through social media and digital ecosystems.

Consequently, they are rapidly rendering obsolete an array of product visions and business models. Together, these dynamics are making the business resilience that comes through transformation and supply chain optimization an imperative rather than a luxury.

▉ Insight 4

Optimal PLM involves implementing a single source of truth and an end-to-end, digitally connected supply chain.

This allows businesses to have greater global collaboration, knowledge sharing, continual improvement, standardization and resource efficiencies.

It also embeds the potential for robotic process automation (RPA), artificial intelligence (AI), the capture of data-driven insights, scenario planning and faster turnaround times for tasks. By enabling the analysis of materials and product and project performance KPIs, strong PLM supplies businesses with vital tools for strategic portfolio planning and project governance.

▉ Insight 5

Companies can also work to bolster networks and develop digital ecosystems with external partners to create additional value and a sustainable competitive advantage.

Businesses have seen numerous benefits in terms of revenue and added value by digitizing operations. Supply chain transparency and synchronization lead to increased service levels.

Data-driven demand sensing can drive optimal forecasting accuracy; and RPA and automation of know-how significantly improves labor productivity and satisfaction.

Beyond that, our experience shows that companies report reduced cost of goods sold (COGS) and fewer losses on damaged goods and materials, as well as optimized capex and inventory levels.

▉ Insight 6

Several proactive choices are available to enterprises that recognize the digital PLM imperative.

They can put themselves in strong position by:

Developing a new organization for continuity with overarching program governance focused on optimizing value

Designing and developing a connected, transparent end-to-end process – a PLM and supply chain framework with processes and technologies to drive optimal decisions and results
Setting themselves up for success by establishing process and organizational standards – before integrating IT systems
Defining data ownership and information flows
Managing data quality up front
Unifying business data with a data fabric – connecting data to get a clear picture across the organization
Starting with small pilot projects to show value before large global rollouts

▉ Insight 7

We recently helped a large company experience a 40% increase in the net present value of its product portfolio.

In one recent instance, a large company that bolstered its PLM and supply chain frameworks experienced a 40% increase in the net present value of its product portfolio, an increase of greater than 20% in resource productivity, and gains ranging from 10% to 30% in project duration and impact on accelerating sales. In another instance, a company adopting digital PLM gained full portfolio transparency and reaped a 72% increase in its gross margin per active product.

By optimizing management of the product lifecycle with digital in mind, organizations can eliminate a slew of unfavorable outcomes and behaviors, including inefficiencies, slow turnaround times and errors in forecasting. They also can stave off the prospect of carrying a large portfolio of low-value/low-profit products. A combination of a digital strategy with digital technologies such as cloud, AI and RPA is how companies can innovatively design, develop and manage quality through the entire product lifecycle.

Theme 3, Collection 1

How networked ecosystem solutions can provide enhanced visibility in your supply chain

Theme 3, Collection 3

How the future of supply chains is digital and autonomous

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

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Back to Future of Supply Chain introduction
Back to Theme 3

How digital transformation supports improved product lifecycle management

▉ Insight 1

With market and competitive shifts happening in real time, leaders can quickly become laggards in today’s global economy.

To avoid this fate, companies need to establish a strong product lifecycle management (PLM) framework.

▉ Insight 2

Pressures include unprecedented volatility in customer demand and supply, increasing globalization and the rise of digital-first priorities and e-commerce.

As a result, companies need to plan for the worst-case scenario, even as they strive to achieve the best case.

▉ Insight 3

A new breed of global customers is also driving the rise of e-commerce and a digital-first mentality.

They work remotely and are reachable predominantly through social media and digital ecosystems.

▉ Insight 4

Optimal PLM involves implementing a single source of truth and an end-to-end, digitally connected supply chain.

This allows businesses to have greater global collaboration, knowledge sharing, continual improvement, standardization and resource efficiencies.

▉ Insight 5

Companies can also work to bolster networks and develop digital ecosystems with external partners to create additional value and a sustainable competitive advantage.

Businesses have seen numerous benefits in terms of revenue and added value by digitizing operations. Supply chain transparency and synchronization lead to increased service levels.

▉ Insight 6

Several proactive choices are available to enterprises that recognize the digital PLM imperative.

▉ Insight 7

We recently helped a large company experience a 40% increase in the net present value of its product portfolio.

Insights

Trending topics

Spotlight

Services

Spotlight

Careers

Spotlight

Industries

Case studies

About us

Top news

Back to Future of Supply Chain introduction Back to Theme 3

How digital transformation supports improved product lifecycle management

▉ Insight 1

With market and competitive shifts happening in real time, leaders can quickly become laggards in today’s global economy.

To avoid this fate, companies need to establish a strong product lifecycle management (PLM) framework.

Read more

▉ Insight 2

Pressures include unprecedented volatility in customer demand and supply, increasing globalization and the rise of digital-first priorities and e-commerce.

As a result, companies need to plan for the worst-case scenario, even as they strive to achieve the best case.

Read more

▉ Insight 3

A new breed of global customers is also driving the rise of e-commerce and a digital-first mentality.

They work remotely and are reachable predominantly through social media and digital ecosystems.

Read more

▉ Insight 4

Optimal PLM involves implementing a single source of truth and an end-to-end, digitally connected supply chain.

This allows businesses to have greater global collaboration, knowledge sharing, continual improvement, standardization and resource efficiencies.

Read more

▉ Insight 5

Companies can also work to bolster networks and develop digital ecosystems with external partners to create additional value and a sustainable competitive advantage.

Businesses have seen numerous benefits in terms of revenue and added value by digitizing operations. Supply chain transparency and synchronization lead to increased service levels.

Read more

▉ Insight 6

Several proactive choices are available to enterprises that recognize the digital PLM imperative.

Read more

▉ Insight 7

We recently helped a large company experience a 40% increase in the net present value of its product portfolio.

Read more

Back to Future of Supply Chain introduction
Back to Theme 3