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Published in: PLM Implementation

PLM Implementation: How to decide between OOTB, Pre-Configured or Fully Customized Solutions

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In this article, let’s look at PLM Implementation and find out how to decide between OOTB, Configured or Fully Customized Solutions to maximize your PLM ROI.

PLM Implementation: How to decide between OOTB, Pre-Configured or Fully Customized Solutions

In today’s fast-paced business environment, implementing a Product Lifecycle Management (PLM) system can give organizations a competitive edge by streamlining processes, improving collaboration, and ensuring compliance. However, selecting the right implementation approach can significantly impact the success of the PLM project.

When deciding how to implement a PLM system, organizations typically choose between three approaches:

  1. Out of the Box (OOTB) Implementation
  2. Pre-Configured Solutions
  3. Fully Customized Implementation

Each approach has its strengths and limitations. This article explores these options in depth, outlines the pros and cons of each, and provides guidance for business decision-makers to make an informed choice.

1. Out of the Box (OOTB) Implementation

What is OOTB Implementation?

An Out of the Box (OOTB) implementation involves using the PLM software as provided by the Independent Software Vendor (ISV), with minimal or no modifications. Organizations adopt the pre-configured functionalities, processes, and user interfaces that come with the system.

Pros of OOTB Implementation
  • Faster Deployment: Since OOTB solutions require minimal modifications, they can be deployed quickly, reducing the time-to-value for the organization.
  • Lower Cost of Implementation: Without the need for extensive configuration or coding, the initial implementation cost is lower.
  • Easy Upgrades and Maintenance: OOTB solutions are easier to maintain and upgrade, as they follow the standard vendor release cycles without compatibility concerns.
  • Vendor Support and Documentation: ISVs provide extensive documentation, training materials, and support for OOTB implementations, ensuring smooth adoption.
Cons of OOTB Implementation
  • Limited Flexibility: The functionality is limited to what the vendor provides, which may not meet all business requirements.
  • Process Misalignment: Organizations may need to adjust their processes to fit the system rather than adapting the system to their workflows.
  • Potential for Underutilization: Some features may be irrelevant to the business, leading to underutilization of the system.

2. Pre-Configured Solution

What is a Pre-Configured Solution?

A pre-configured solution involves modifying the OOTB PLM software without altering its core codebase. It leverages built-in settings, administrative controls, and configuration tools to tailor the system to specific business requirements. Configurations typically include:

  • Adjusting workflows and business rules.
  • Modifying user roles and permissions.
  • Defining data fields, categories, and attributes.
  • Customizing UI layouts to improve user experience.
Pros of a Pre-Configured Solution
  • Flexibility Without Complexity: Configurations allow organizations to adapt the PLM system to their processes while avoiding the complexity of custom code.
  • Easier Upgrades: Since the core code remains untouched, future software upgrades are more straightforward, with minimal disruption.
  • Faster Time-to-Market Compared to Customization: While it takes longer than OOTB, configuration is still faster and more cost-effective than full customization.
  • Lower Risk of Technical Debt: Without altering the core code, organizations avoid long-term maintenance challenges and dependency on custom code.
Cons of a Pre-Configured Solution
  • Limited Scope for Advanced Requirements: While configurations offer more flexibility than OOTB, they may still not address highly specialized or unique business needs.
  • Potential Performance Impact: Overly complex configurations can affect system performance, particularly in large-scale implementations.
  • Dependency on Platform Limitations: The configuration options are limited to what the platform allows, which may not fully align with business goals.

3. Fully Customized Implementation

What is a Fully Customized Implementation?

A fully customized implementation involves modifying the core code of the PLM system, writing new scripts, and integrating external applications to meet highly specific business needs. This approach provides maximum flexibility and allows organizations to tailor the system to their exact requirements.

Pros of Fully Customized Implementation
  • Complete Alignment with Business Needs: Organizations can develop functionalities that align perfectly with their processes and business goals.
  • Competitive Differentiation: A customized PLM solution can provide unique features that give the organization a competitive advantage.
  • Enhanced Integration Capabilities: Fully customized solutions can integrate seamlessly with other enterprise systems, ensuring smooth data exchange and collaboration.
Cons of Fully Customized Implementation
  • Higher Cost and Longer Implementation Time: Customization requires significant investment in terms of time, resources, and expertise, leading to higher costs.
  • Complex Upgrades and Maintenance: Future upgrades become complex, as custom code may need to be rewritten or revalidated to align with new software releases.
  • Increased Risk of Technical Debt: Extensive customization can lead to long-term maintenance challenges, dependency on specific developers, and higher risk of system instability.
  • Limited Vendor Support: Fully customized solutions may receive limited vendor support since they deviate from the standard platform.

Comparative Summary: OOTB vs. Pre-Configured vs. Fully Customized

Key Considerations for Decision Makers

When evaluating which approach is best for your organization, business decision-makers should consider the following factors:

1. Business Complexity and Process Maturity
  • If the organization follows industry-standard processes, an OOTB implementation may suffice.
  • For organizations with moderately complex processes that need some level of tailoring, a pre-configured solution strikes a good balance.
  • If the organization has highly specialized or complex processes that are integral to its competitive advantage, a fully customized implementation may be necessary.
2. Budget and Resource Availability
  • OOTB implementations are cost-effective and ideal for organizations with limited budgets.
  • Pre-Configured solutions require moderate investment but offer a good return on investment by aligning the system with business processes.
  • Fully customized implementations are expensive and require dedicated resources for long-term maintenance.
3. Time-to-Value
  • Organizations seeking quick results may prefer OOTB implementations.
  • Pre-Configured solutions balance deployment speed with process alignment.
  • Fully customized implementations often take longer but may provide the highest level of value in the long run.
4. Scalability and Future Upgrades
  • OOTB and configured solutions are easier to upgrade as they remain aligned with vendor release cycles.
  • Fully customized solutions may face significant challenges during upgrades, leading to additional costs and project delays.
5. Vendor Support and Ecosystem
  • OOTB implementations benefit the most from vendor support and documentation.
  • Pre-Configured solutions may still receive partial support, depending on the extent of modifications.
  • Fully customized solutions often require internal expertise or third-party support, increasing long-term dependency.

Conclusion: Making the Right Decision

Choosing the right approach for PLM implementation is a strategic decision that impacts long-term business outcomes.

  • OOTB Implementation is ideal for organizations looking for rapid deployment with minimal costs and standard processes.
  • Pre-Configured Solutions offer a balance between flexibility and simplicity, making them suitable for businesses seeking moderate customization without high complexity.
  • Fully Customized Implementations provide maximum flexibility and control but come with higher costs, longer timelines, and increased maintenance complexity.

In addition to the above options,  there are PLM On Cloud aka SaaS based PLM solutions emerging :

Here is a comparison of PLM On Premise (which are covered as above) with PLM On Cloud ( SaaS Based PLM Solutions)

PLM On Cloud vs On Premise:

  • Cost: Cloud PLM’s pay-as-you-go model often translates to lower initial costs, making it more accessible for businesses of all sizes. On-premise solutions, in contrast, require significant upfront investments.
  • Scalability: Cloud-based PLM easily scales with the growth of a business, providing flexibility and cost-effectiveness. On-premise solutions may struggle to adapt to changing resource needs, potentially leading to inefficiencies and increased costs.
  • Accessibility and Collaboration: Cloud PLM excels in providing accessibility and promoting collaboration among teams spread across different locations. On-premise solutions may face challenges in facilitating seamless collaboration for remote or global teams.
  • Data Security: While cloud providers invest heavily in security measures, on-premise PLM offers direct control over data security. This can be crucial for industries with stringent compliance requirements.
  • Infrastructure Upgrade: Cloud PLM providers handle updates and maintenance tasks, ensuring that businesses always have access to the latest infrastructure, features and security patches without disrupting daily operations. On Premise PLM needs investments in infrastructure upgrades increasing the cost substantially.

For a detailed comparison of PLM : On Cloud vs On Premise, Click here.

Recommendation for Decision Makers

To maximize the value of your PLM investment, start by evaluating your business processes, budget, and long-term goals.

When in doubt, adopt a phased approach—begin with an OOTB or Pre-configured solution and progressively assess the need for customizations. This ensures a balance between process efficiency, cost-effectiveness, and future scalability.

MechiSpike can be of great help to your organization to consult you on this with our PLM, Engineering and IT Digital focus. Click here to know more about us.

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