How SAP Integrated Product Development Addresses the Mid-Market
Mid-market companies need robust cost-effective, easy to implement PLM, deployed on the cloud.SAP Integrated Product Development provides SaaS-based cloud offerings based on microservices making them cloud-native as opposed to just hosting on-premises software in the cloud. In addition, they can be directly connected to S/4HANA, or ERP and other PLM solutions based on the needs of the companySAP Integrated Product Development software provides all the core PLM capabilities product-centric companies require including idea campaigns (including voice of customers), requirements/specification management, CAD integration, recipe formulations, collaboration, BOM management, document management, variant management, change management, portfolio and project management, systems engineering, product visualization, and collaboration with procurement and other departments, even beyond the enterprise with suppliers.SAP provides a comprehensive set of integrations to support a company’s ecosystem including to multiple mechanical computer-aided design (MCAD), electronic computer-aided design (ECAD), ERP, and PLM integrations. ドキュメントをダウンロードする1 Copyright © 2024
COMMENTARY
How SAP Integrated Product
Development Addresses the Mid-Market
Introduction
Product Lifecycle Management (PLM) is a strategic business approach that holds great promise for mid-
market companies, helping streamline their product development processes. Despite the potential
benefits, these companies often encounter myriad challenges in adopting and effectively using PLM-
enabling software. These challenges include high costs, complexity, lack of user-friendliness, and
integration issues, coupled with a deficiency in awareness and expertise. Mid-market companies require
an affordable PLM solution that can deliver tangible benefits in a short timeframe, enabling them to keep
pace with larger competitors and evolving market demands.1
Mid-market companies frequently cite several objections to implementing PLM software. High cost is a
primary concern, as these companies often operate on tight budgets and cannot afford the substantial
investment required for PLM software, customization, and ongoing support. Complexity is another major
1 Research for this paper was partially supported by SAP.
Key Takeaways
Mid-market companies need robust cost-effective, easy to implement PLM, deployed on the
cloud.
SAP Integrated Product Development provides SaaS-based cloud offerings based on
microservices making them cloud-native as opposed to just hosting on-premises software in
the cloud. In addition, they can be directly connected to S/4HANA, or ERP and other PLM
solutions based on the needs of the company
SAP Integrated Product Development software provides all the core PLM capabilities product-
centric companies require including idea campaigns (including voice of customers),
requirements/specification management, CAD integration, recipe formulations, collaboration,
BOM management, document management, variant management, change management,
portfolio and project management, systems engineering, product visualization, and
collaboration with procurement and other departments, even beyond the enterprise with
suppliers.
SAP provides a comprehensive set of integrations to support a company’s ecosystem including
to multiple mechanical computer-aided design (MCAD), electronic computer-aided design
(ECAD), ERP, and PLM integrations.
COMMENTARY
How SAP Integrated Product
Development Addresses the Mid-Market
Introduction
Product Lifecycle Management (PLM) is a strategic business approach that holds great promise for mid-
market companies, helping streamline their product development processes. Despite the potential
benefits, these companies often encounter myriad challenges in adopting and effectively using PLM-
enabling software. These challenges include high costs, complexity, lack of user-friendliness, and
integration issues, coupled with a deficiency in awareness and expertise. Mid-market companies require
an affordable PLM solution that can deliver tangible benefits in a short timeframe, enabling them to keep
pace with larger competitors and evolving market demands.1
Mid-market companies frequently cite several objections to implementing PLM software. High cost is a
primary concern, as these companies often operate on tight budgets and cannot afford the substantial
investment required for PLM software, customization, and ongoing support. Complexity is another major
1 Research for this paper was partially supported by SAP.
Key Takeaways
Mid-market companies need robust cost-effective, easy to implement PLM, deployed on the
cloud.
SAP Integrated Product Development provides SaaS-based cloud offerings based on
microservices making them cloud-native as opposed to just hosting on-premises software in
the cloud. In addition, they can be directly connected to S/4HANA, or ERP and other PLM
solutions based on the needs of the company
SAP Integrated Product Development software provides all the core PLM capabilities product-
centric companies require including idea campaigns (including voice of customers),
requirements/specification management, CAD integration, recipe formulations, collaboration,
BOM management, document management, variant management, change management,
portfolio and project management, systems engineering, product visualization, and
collaboration with procurement and other departments, even beyond the enterprise with
suppliers.
SAP provides a comprehensive set of integrations to support a company’s ecosystem including
to multiple mechanical computer-aided design (MCAD), electronic computer-aided design
(ECAD), ERP, and PLM integrations.
2
hurdle; PLM software can be overly intricate, making it difficult for smaller teams to manage it effectively.
Not all PLM solutions are user-friendly, posing a significant barrier to widespread adoption within an
organization. Additionally, the lack of flexibility in some PLM-enabling solutions makes it challenging for
mid-market companies to tailor the software to their specific needs. Finally, these systems are often not
open to integrating with existing systems, which is a serious obstacle to driving efficiencies across their
business.
Mid-market organizations are not strictly defined by their size, but rather by the complexity of the
products they produce and their budget constraints for software and support. These companies often
have limited internal IT resources to support PLM implementations and maintenance. Today, many mid-
market PLM users restrict their use to Product Data Management (PDM) functionality, such as document
management, CAD management, Bill of Materials (BOM) management, and change management within
engineering. This narrow use of PLM indicates a gap between the potential of PLM-enabling solutions
and their actual utilization in mid-market companies.
There are several factors that contribute to the limited use of PLM-enabling solutions as an engineering
PDM tool, rather than a comprehensive solution for PLM. Different disciplines within a company may have
evolved separately, leading to fragmented PLM adoption. Historically, PLM-enabling solutions have been
mechanical in nature, but there is now a shift towards smart, connected products, which mid-market
companies may not be fully equipped to handle. Mergers, acquisitions, and reorganizations further
complicate PLM implementations.
The technology infrastructure of mid-market companies presents additional challenges. Many still host
PLM technologies on-premises, leading to difficulties in managing disconnected, outdated, and
vulnerable systems. The lack of IT resources and expertise exacerbates these challenges, preventing
effective management and optimization of PLM software.
A significant obstacle for mid-market companies to overcome is the lack of awareness of the potential
PLM benefits. Suboptimal PLM strategies often result in fragmented product data across departments,
lack of visibility across the product lifecycle, and challenges in cross-functional collaboration both within
the company and across the supply chain. CIMdata’s experience is that many mid-market companies face
time-to-market delays, experience inconsistent product quality, deal with inefficient change
management, and struggle to meet regulatory requirements. Resource allocation issues and difficulties
in managing sustainability further compound these problems.
Key Mid-Market Requirements for PLM
Mid-market companies seek PLM solutions that are affordable, scalable, easy to implement and use, are
modular and flexible, and can seamlessly integrate within their existing environment. The rise of cloud-
native software-as-a-service (SaaS) offerings has made it easier for companies to achieve these objectives.
SaaS solutions provide a cost-effective, scalable, and user-friendly approach to PLM, allowing mid-market
companies to adopt the best possible infrastructure without the need for extensive IT infrastructure or
expertise. Cloud-based PLM solutions offer several advantages, including reduced IT maintenance,
automatic updates, and improved security. This approach allows mid-market companies to leverage
state-of-the-art technology without the burden of managing and maintaining complex IT systems.
Budgetary constraints are a significant concern for mid-market companies. They seek PLM-enabling
solutions that offer competitive pricing models such as subscription-based pricing or flexible licensing
options. While mid-market companies do not operate on the scale of larger companies, they still require
PLM-enabling solutions that can grow with their business. Scalability ensures that the PLM solution can
hurdle; PLM software can be overly intricate, making it difficult for smaller teams to manage it effectively.
Not all PLM solutions are user-friendly, posing a significant barrier to widespread adoption within an
organization. Additionally, the lack of flexibility in some PLM-enabling solutions makes it challenging for
mid-market companies to tailor the software to their specific needs. Finally, these systems are often not
open to integrating with existing systems, which is a serious obstacle to driving efficiencies across their
business.
Mid-market organizations are not strictly defined by their size, but rather by the complexity of the
products they produce and their budget constraints for software and support. These companies often
have limited internal IT resources to support PLM implementations and maintenance. Today, many mid-
market PLM users restrict their use to Product Data Management (PDM) functionality, such as document
management, CAD management, Bill of Materials (BOM) management, and change management within
engineering. This narrow use of PLM indicates a gap between the potential of PLM-enabling solutions
and their actual utilization in mid-market companies.
There are several factors that contribute to the limited use of PLM-enabling solutions as an engineering
PDM tool, rather than a comprehensive solution for PLM. Different disciplines within a company may have
evolved separately, leading to fragmented PLM adoption. Historically, PLM-enabling solutions have been
mechanical in nature, but there is now a shift towards smart, connected products, which mid-market
companies may not be fully equipped to handle. Mergers, acquisitions, and reorganizations further
complicate PLM implementations.
The technology infrastructure of mid-market companies presents additional challenges. Many still host
PLM technologies on-premises, leading to difficulties in managing disconnected, outdated, and
vulnerable systems. The lack of IT resources and expertise exacerbates these challenges, preventing
effective management and optimization of PLM software.
A significant obstacle for mid-market companies to overcome is the lack of awareness of the potential
PLM benefits. Suboptimal PLM strategies often result in fragmented product data across departments,
lack of visibility across the product lifecycle, and challenges in cross-functional collaboration both within
the company and across the supply chain. CIMdata’s experience is that many mid-market companies face
time-to-market delays, experience inconsistent product quality, deal with inefficient change
management, and struggle to meet regulatory requirements. Resource allocation issues and difficulties
in managing sustainability further compound these problems.
Key Mid-Market Requirements for PLM
Mid-market companies seek PLM solutions that are affordable, scalable, easy to implement and use, are
modular and flexible, and can seamlessly integrate within their existing environment. The rise of cloud-
native software-as-a-service (SaaS) offerings has made it easier for companies to achieve these objectives.
SaaS solutions provide a cost-effective, scalable, and user-friendly approach to PLM, allowing mid-market
companies to adopt the best possible infrastructure without the need for extensive IT infrastructure or
expertise. Cloud-based PLM solutions offer several advantages, including reduced IT maintenance,
automatic updates, and improved security. This approach allows mid-market companies to leverage
state-of-the-art technology without the burden of managing and maintaining complex IT systems.
Budgetary constraints are a significant concern for mid-market companies. They seek PLM-enabling
solutions that offer competitive pricing models such as subscription-based pricing or flexible licensing
options. While mid-market companies do not operate on the scale of larger companies, they still require
PLM-enabling solutions that can grow with their business. Scalability ensures that the PLM solution can
3
accommodate increasing product functionality, user counts, and data volume without significant
disruption or cost escalation.
Ease of implementation and use is critical for mid-market companies, which typically have smaller IT
teams and may lack extensive dedicated PLM expertise. As a result, they value PLM solutions that are easy
to implement, configure, and maintain without requiring extensive technical knowledge. User-friendly
interfaces and intuitive workflows are essential for ensuring widespread adoption across different
departments, minimizing the learning curve and enabling greater adoption.
Mid-market companies require PLM solutions that can seamlessly integrate with their existing business
applications, such as ERP, CRM, and CAD software. Modular architectures and configurable capabilities
are highly desirable for mid-market companies, as they allow these businesses to tailor the PLM system
to their specific needs without unnecessary complexity or overhead.
Collaboration and the ability to streamline processes across the product lifecycle is critical for all
companies. Mid-market companies look for PLM-enabling solutions that can facilitate collaboration
across cross-functional teams and throughout the product lifecycle including suppliers, partners, and
customers.
Historically, mid-market companies have not managed product data effectively outside of engineering.
As their products become more complex, they are now looking to expand their PLM capabilities to cover
the entire product lifecycle, from concept via re-use until disposal, including areas such as requirements
management, systems engineering, and sustainability.
Given their limited IT resources, mid-market companies value responsive customer support and
comprehensive training programs. They are looking to maximize the value of their PLM investment by
addressing technical challenges as quickly as possible.
SAP’s Approach to Mid-Market PLM
SAP Integrated Product Development offers a comprehensive product data backbone and an integrated
collaboration environment, enabling companies to define, develop, deliver, and manage products
efficiently across the extended enterprise. As depicted in Figure 1, PLM from SAP enhances efficiency,
transparency, and decision-making throughout the product lifecycle. It manages product data and assets
end-to-end, supporting the creation of innovative and sustainable products.
Figure 1—SAP’s PLM Framework
(Courtesy of SAP)9INTERNAL – SAP and Partners Only
Digital Supply Chain
SAP Product Lifecycle Management – Visual Business Process
Define
Collect and evaluate ideas
Analyze the voice of the customers
Define needs and requirements
Develop
Create system models
Develop products collaboratively
Decarbonize products
Deliver
Deliver digital services
Predict service needs
Analyze data
Manage
Manage data collaboratively across the extended enterprise
9PUBLIC
accommodate increasing product functionality, user counts, and data volume without significant
disruption or cost escalation.
Ease of implementation and use is critical for mid-market companies, which typically have smaller IT
teams and may lack extensive dedicated PLM expertise. As a result, they value PLM solutions that are easy
to implement, configure, and maintain without requiring extensive technical knowledge. User-friendly
interfaces and intuitive workflows are essential for ensuring widespread adoption across different
departments, minimizing the learning curve and enabling greater adoption.
Mid-market companies require PLM solutions that can seamlessly integrate with their existing business
applications, such as ERP, CRM, and CAD software. Modular architectures and configurable capabilities
are highly desirable for mid-market companies, as they allow these businesses to tailor the PLM system
to their specific needs without unnecessary complexity or overhead.
Collaboration and the ability to streamline processes across the product lifecycle is critical for all
companies. Mid-market companies look for PLM-enabling solutions that can facilitate collaboration
across cross-functional teams and throughout the product lifecycle including suppliers, partners, and
customers.
Historically, mid-market companies have not managed product data effectively outside of engineering.
As their products become more complex, they are now looking to expand their PLM capabilities to cover
the entire product lifecycle, from concept via re-use until disposal, including areas such as requirements
management, systems engineering, and sustainability.
Given their limited IT resources, mid-market companies value responsive customer support and
comprehensive training programs. They are looking to maximize the value of their PLM investment by
addressing technical challenges as quickly as possible.
SAP’s Approach to Mid-Market PLM
SAP Integrated Product Development offers a comprehensive product data backbone and an integrated
collaboration environment, enabling companies to define, develop, deliver, and manage products
efficiently across the extended enterprise. As depicted in Figure 1, PLM from SAP enhances efficiency,
transparency, and decision-making throughout the product lifecycle. It manages product data and assets
end-to-end, supporting the creation of innovative and sustainable products.
Figure 1—SAP’s PLM Framework
(Courtesy of SAP)9INTERNAL – SAP and Partners Only
Digital Supply Chain
SAP Product Lifecycle Management – Visual Business Process
Define
Collect and evaluate ideas
Analyze the voice of the customers
Define needs and requirements
Develop
Create system models
Develop products collaboratively
Decarbonize products
Deliver
Deliver digital services
Predict service needs
Analyze data
Manage
Manage data collaboratively across the extended enterprise
9PUBLIC