What is Product Lifecycle Management (PLM)?

Product lifecycle management (PLM) refers to the management of data and processes used in the design, engineering, manufacturing, sales, and service of a product across its entire lifecycle and the supply chain. Product lifecycle management has a long history in the manufacturing space. As it stands today, the term generally refers to a software solution and a broader use case beyond just the manufacturing process.

Why Do Companies Need PLM?

Companies that manufacture goods experience a range of issues outside of the scope of design and manufacturing. Product lifecycle management (PLM) mitigates those issues and helps align and integrate key resources, quickly making product information accessible to teams across the organization.

PLM was originally designed to help engineers collaborate on the latest product designs and control information across the lifecycle of a product. However, because their technology stack was on-premise, PLM solutions focused only on internal employees. Today, product lifecycle management as a methodology has evolved to include a larger portion of the organization, including customer service, marketing, sales, suppliers, and partner channels.

Because of the strong focus on engineering, original PLM solutions were built with the engineer in mind. Legacy PLM was created to help engineers increase productivity, accelerate time to market, and lower product costs. Today’s next-gen PLM software includes new benefits of product lifecycle management across the entire organization and allows for faster customer responsiveness and greater customer transparency, greater product quality even for complex products, helping boost revenue and get products to market faster.

Experience the full potential of PLM with Propel's cutting-edge solution. Tour the only platform on the market that offers a truly continuous product thread, maximizing revenue and business growth. Try it now.

What is Cloud-Based PLM?

Cloud-based product lifecycle management software varies from its on-premise predecessor in that it creates a single source of truth to expedite and improve product development, and track data and processes – all from the cloud. Today's cloud PLM software updates product changes, advancements, and industry compliance as they happen in real time, allowing for timely collaboration between all departments in the product development process regardless of location.

The evolving workforce and increase in remote employees require more robust and collaborative software systems with a better user experience to operate in today’s business landscape. Most new PLM solutions have adjusted to this need and offer multi-layered communication and process management, allowing different sites, employees, and partners to collaborate seamlessly no matter where they are in the world.

Keep reading: Where (Traditional) PLM Dropped the Ball

Do I Need PLM?

PLM isn’t just a buzzword. It simplifies, organizes, and integrates data, allowing an in-depth view of each manufactured product and how it will be received in the market, maximizing efficiency and profitability in the following areas:

Design and manufacturing integration: A company’s production process may use a range of software applications for design and manufacturing. PLM can optimize the entire production process in real time. Without PLM, valuable data may not be communicated across all these systems and people.
Product commercialization: PLM assures products are ready for global rollout, with effective, reliable data, document management, and process governance. Unified data and collaborative workflows across the organization keep things running smoothly and allow teams to respond quickly when challenges arise.
Virtual environments that support global operations: PLM provides a central product data management (PDM) repository that integrates the entire global process from concept to customer.
Accessible data: PLM makes all product information available to each department, improving production efficiency and allowing for a closed loop for all teams involved.

The Product Lifecycle and the PLM Process

A product’s lifecycle typically begins with an idea. Maybe it happens in an office, maybe on your drive home or famously it happens in a garage in Silicon Valley.

When we think of products we assume that once that idea gets legs, it crystallizes into a design that is later manufactured for the world to see. But we can’t forget the steps in between: purchase, service, and repair, and ultimately – disposal or retirement.

In high-level terms there are four stages to a product lifecycle:

Introduction: Costly and risky, new products that are introduced to the market can mean low sales, as well as costs from research and development, consumer reaction, and marketing.
Growth: The product gains popularity and sales and profits grow. Marketing increases to maximize benefit.
Maturity: Product popularity dictates more focused marketing as well as future predictions for product improvements or changes to the production process.
Decline: A decline in product popularity happens with increased competition or lack of customer return. Companies focus on reducing production costs and introducing them to less popular markets.

Product lifecycle is the progression of a product through these four stages and all of the finer-grained processes, including inception, engineering, design, manufacturing, sales and marketing, distribution, service, and disposal. PLM is the management of that lifecycle, aligning the people, data, processes, and business systems that make their entire product portfolio a success. The PLM process includes the following key elements.

The Lifecycle Stages

Design

PLM brings concurrent capabilities to the table, allowing design, engineering, simulation, marketing, engineering, manufacturing, and tweaks to the entire process to run at the same time. When a product is in the design phase, PLM allows engineering changes to happen as the design is being tested. The ability to design in real-time expedites completion of a final product, which in turn quickens time-to-market and eventual profit.

Companies often spend up to 25 percent of their revenue on new product development. Even a one percent decrease in lost time or increase in margin delivered by PLM software can significantly impact a company’s profits. Companies operating in a high-tech PLM environment can easily deliver innovation, while simultaneously tracking and responding to customer feedback in real-time.

BOM Management

Bill of materials (BOM) management is at the heart of PLM. PLM connects BOMs with accurate product definitions, source information, manufacturing data, documentation, and pricing.

It's what makes up the product that a company delivers to its customers, and it can include hardware, software, manufacturing data, documentation, pricing, and more. BOM management involves engineering design, design collaboration, sourcing and procurement, and go-to-market strategy. For products to succeed in the market, companies need to make sure that BOM management also incorporates external collaboration with partners, suppliers, and sales channels. BOM management is closely associated with change management since updates can happen between engineering, manufacturing, and marketing as a product gets ready for sale.

The PLM integration of computer-aided design (aka CAD systems) with BOMs improves processes by synchronizing engineering and non-engineers throughout the design of the product. When a CAD system exchanges information with a BOM through a PLM system, the result is better collaboration, accuracy, and in the end—the one thing we really want—faster time-to-market.

Engineer-to-Order

Engineer to Order (ETO) is a specific use case of design in PLM. In this case, customers are highly involved in the design and requirements of a product. PLM for ETO provides a single, secure, easy-access solution for providing information to sales, engineering, and operations for product review, design, and delivery. In addition, it includes information that can be shared not just with engineers, but also with partners, suppliers, and customers.

Competition in the marketplace, changing customer needs, and customer satisfaction, are vital to the success of a product launch. Modern PLM software uses cloud technology to manage engineers, purchasing tools, and requests related to the ETO process. Information from partners, suppliers, and customers is then used to provide a working overview of the process to provide improved response time to customers, more accurate quotes, increased employee productivity, better product development and delivery, and customer loyalty.

Production

Lowering development and production costs, and improving time-to-market are two of the most important end results of PLM. Change management, cost management, and supplier qualification play key roles in these outcomes.

Change management is how a company deals with changes that occur during the inception, design, manufacturing, and use of a product. An effective change management process organizes revisions and cancellations, keeps track of different versions of documents, and follows the workflow process. Information generated by changes along the process is crucial for communication between departments and outside partners.

Cost management is similar to change management, tracking costs involved with tools and components from the earliest stages of product development. Cost transparency is crucial for profitability and modern PLM software can provide accuracy and cost savings that might otherwise be missed. It goes without saying that better communication and review of sourcing options are best done in the planning stages. Cost management inside of PLM gives way to this early information and allows manufacturers to evaluate and avoid possible delivery or cost issues and prevent product launch hiccups.

Distribution and Service

PLM provides tools and information about the distribution and service of products. Product information management (PIM) is the phase after the product is manufactured. To market and sell their latest and greatest product, companies need an effective way to make sure all their sales channels are receiving and displaying the correct product information.

PIM provides companies with timely product data for sales channels, including direct sales, distributors, and eCommerce. Ideally, PIM solutions should be closely tied to PLM—or better yet, one and the same—so there can be a single repository for product data that can be used by sales and marketing as well as engineering and manufacturing.

PIM provides all the tools necessary to take product information from engineering into a saleable entity that sales teams can use to sell the product, including accurate product attributes, SKUs, and pricing.

To the same effect marketing teams can benefit from the accurate product information provided throughout the product lifecycle. Marketing needs the most up-to-date information when generating product manuals, imagery, and any other content needed for distributor portals or eCommerce platforms.

Once the product is on the market, customer satisfaction is key to survival and any other future versions of the physical good. While quality management (QMS) permeates every business process, staying on top of quality issues in the field is key to sustaining product success. Tying customer issues, quality processes, and engineering updates into a closed-loop process helps ensure that products receive positive customer adoption and repeatable steps for future product iterations.

PLM Software Must-Haves

Product lifecycle management software combines all organization and readiness tools mentioned above into one platform to manage and connect data, processes, and business systems with the people who use them. When used correctly, PLM software can increase innovation, improve productivity, get products to market faster, and reduce unnecessary expenditures on resources and time.

Data Sharing

PLM provides open information sharing between employees, partners, and customers, which works to:

Speed up planning and development in the design phase
Address complex issues in real-time
Manage engineering challenges
Create a customer and product connection
Update pricing, product attributes, and sales information during product launch
Improve product viability with information garnered by sales and marketing
Enhance products with sales and service input

A PLM platform that meets data-sharing needs will enhance the decision-making processes for project and design review, change requests, maintenance, and support. Data sharing also streamlines processes with efficiency and better communication. Global companies need to share data around the world, and real-time access is imperative—not only with employees but with partners and customers.

Change Management

PLM software offers important capabilities for change management, the ability for a company to manage changes and challenges that arise during the entire product lifecycle. PLM software allows companies to track product revisions and change document versions and allows users to follow change orders from engineering, marketing, or operations. It can also provide an impact analysis with data such as inventory, market timing, and production changes, as well as keep track of workflow and approvals.

Project Management

Project management can cover the entire product lifecycle from concept to customer but is typically used for the process of developing, producing, introducing, and delivering products in a timely fashion. It assures that timelines are met, resources are available when needed, and products are delivered.

PLM software enhances project management by creating a collaborative environment from concept to the moment it is in the customer’s hands. It tracks the process and progress of the product through time, assures the schedule is met, and makes sure that all the parties involved have the information they need to complete their given tasks as they relate to the product.

PLM Integration with Business-Critical Systems

A PLM system is only as effective as its ability to integrate seamlessly with a company’s existing processes and technologies. To maximize efficiency, ensure data consistency, and create a unified digital thread, PLM must integrate with various critical business systems. These integrations help streamline workflows, improve collaboration, and enable better decision-making throughout the product lifecycle.

Computer-Aided Design (CAD) Integration

PLM and CAD integration is essential for efficient product development. Engineers and designers rely on CAD software to create, modify, and optimize product designs, and integrating CAD with PLM ensures:

Real-time collaboration between multiple teams working on the same design without conflicts or duplication.
Version control and tracking to prevent errors caused by outdated or conflicting design versions.
Seamless design iteration allows engineers to quickly make modifications while ensuring compliance with regulatory and quality standards.

By connecting CAD and PLM, organizations can reduce design errors, accelerate innovation, and create a more structured approach to product development.

Enterprise Resource Planning (ERP) Integration

ERP systems handle critical business operations such as inventory management, procurement, and production planning. Integrating PLM with ERP ensures:

Seamless data flow between engineering and manufacturing teams, reducing miscommunication.
Accurate material requirements planning (MRP) by providing real-time updates on product designs and changes.
Better cost estimation and tracking by linking BOM (Bill of Materials) data from PLM to ERP for production planning and financial analysis.

A well-integrated PLM-ERP system bridges the gap between product development and business operations, improving efficiency and reducing costly production delays.

Customer Relationship Management (CRM) Integration

Linking PLM with CRM systems ensures that customer feedback and requirements directly influence product development. This integration enables businesses to:

Incorporate customer insights into product design, leading to more market-driven innovations.
Track product issues and complaints to refine future designs and improve customer satisfaction.
Enhance collaboration between sales, marketing, and engineering teams by ensuring all departments have access to real-time product data.

With a PLM-CRM connection, companies can create better products by aligning design and development efforts with customer needs and market trends.

Quality Management System (QMS) Integration

Maintaining high product quality is essential for compliance, validation, brand reputation, and customer satisfaction. PLM and QMS integration provides:

Automated quality checks and compliance tracking to reduce defects and regulatory risks.
Faster issue resolution by linking quality reports, audits, and testing results directly to product data.
Continuous improvement processes by analyzing defect patterns and using real-time quality feedback to enhance product designs.

By integrating PLM with QMS, organizations can ensure that quality is embedded into every stage of the product lifecycle, leading to safer and more reliable products.

Product Information Management (PIM) Integration

For companies that manage multiple products across different sales channels, integrating PLM with PIM is crucial. This integration allows businesses to:

Ensure accurate and consistent product information across websites, catalogs, and marketplaces.
Reduce time-to-market by automatically updating product details as changes occur in PLM.
Improve brand consistency and compliance by managing specifications, labeling, and documentation in a centralized system.

A PLM-PIM connection helps businesses maintain up-to-date, high-quality product information while streamlining content distribution across different platforms.

PLM should incorporate a CAD design system with enterprise resource planning (ERP) and they should communicate with each other flawlessly. Customer relationship management (CRM), managing all relationships with customers, and PIM, providing the latest product information, must also work together for the best results. Other key PLM integrations integrations may include product data management (PDM) and manufacturing execution system (MES).

Data integration from the Internet of Things (IoT) gives engineers direct access to real product performance information, allowing companies to respond with unprecedented speed and accuracy.

PLM for Different Industries

Product Lifecycle Management (PLM) isn’t a one-size-fits-all solution. Every industry has its own unique challenges, requiring tailored approaches to product development, compliance, and efficiency. The right PLM system helps businesses stay competitive by optimizing processes, improving collaboration, and ensuring products meet quality and regulatory standards. Let’s explore how different industries leverage PLM to overcome their biggest challenges.

High Tech: Speed, Innovation, and Supply Chain Efficiency

The high-tech industry moves at an incredibly fast pace. Companies must innovate rapidly to stay ahead of competitors while navigating complex supply chains and ever-changing regulations.

A well-implemented PLM system helps high-tech companies:

✅ Accelerate product development by improving collaboration between engineers, designers, and suppliers.

✅ Optimize supply chain management by tracking materials, components, and production timelines in real time.

✅ Ensure compliance with industry regulations by maintaining accurate documentation and audit trails.

For companies developing consumer electronics, semiconductors, or software-driven products, PLM provides a structured way to manage revisions, reduce errors, and get innovative products to market faster.

Medtech: Regulatory Compliance and Product Traceability

In the medical technology (medtech) industry, compliance isn't just important—it’s mandatory. Companies must adhere to strict regulations from agencies like the FDA, ISO, and MDR while ensuring complete product traceability from design to distribution.

PLM simplifies medtech product development by:

✅ Managing regulatory documentation for faster approvals and audits.

✅ Tracking product history from initial design to patient use, ensuring full traceability in case of recalls or quality concerns.

✅ Standardizing risk management processes to maintain safety, effectiveness, and compliance with global standards.

With PLM, medtech companies can bring life-saving innovations to market faster, without compromising on quality or compliance.

Explore the recent new medical device survey on what matters most to consumers.

Industrial Manufacturing: Efficiency, Cost Reduction, and Supplier Management

Manufacturing complex machinery, automotive parts, or aerospace components requires precise coordination across multiple teams, suppliers, and locations. A single production error can lead to massive delays, costly recalls, or safety risks.

PLM streamlines industrial manufacturing by:

✅ Enhancing collaboration between engineering, production, and procurement teams.

✅ Improving supply chain transparency to avoid bottlenecks and material shortages.

✅ Reducing errors and production costs by integrating CAD designs, bill of materials (BOM), and production workflows in one system.

With PLM, manufacturers can improve efficiency, reduce downtime, and deliver high-quality products while managing large-scale operations with ease.

Consumer Goods: Faster Time-to-Market and Brand Consistency

In the fast-moving world of consumer goods, trends change rapidly. Companies need to launch products quickly while maintaining brand identity and ensuring consistent quality.

PLM helps consumer brands by:

✅ Speeding up product launches through efficient design, prototyping, and approval workflows.

✅ Maintaining brand consistency across different product lines, packaging, and global markets.

✅ Tracking consumer trends to develop products that align with shifting demands and preferences.

From apparel and cosmetics to food and beverages, PLM enables businesses to stay agile, adapt to market trends, and deliver high-quality products that resonate with customers.

Challenges in Modern PLM Adoption

While PLM offers significant benefits, integrating it into an organization’s existing systems and processes can be a complex undertaking. Many businesses face technical, operational, and cultural hurdles that can slow down or complicate the implementation process. Below are some of the most common challenges and how they impact PLM adoption.

1. Data Silos

One of the biggest obstacles in PLM integration is fragmented data. Different departments—such as engineering, manufacturing, procurement, and sales—often store product information in separate systems that do not communicate with each other. This lack of centralization can lead to several issues:

Inconsistencies in product data – When multiple departments maintain their own versions of product information, errors can occur, leading to miscommunication, design flaws, and production inefficiencies.
Inefficient workflows – Without a single source of truth, employees waste valuable time searching for information, manually updating records, and reconciling discrepancies.
Limited cross-functional collaboration – When teams work in silos, it becomes harder to coordinate product development efforts, manage value chains effectively, or respond quickly to changes in market demands.

Solution: A well-integrated PLM system should serve as a central repository for all product-related information, ensuring that teams across the organization have access to accurate and real-time data. Businesses should prioritize cloud-based or integrated PLM platforms that connect seamlessly with other enterprise systems, such as ERP and CAD software.

2. Legacy Systems Holding Back Progress

Many companies still rely on outdated IT infrastructure that was not designed to support modern PLM systems. These legacy systems can create compatibility issues and slow down digital transformation efforts. Some common problems include:

Inability to integrate with modern PLM solutions – Older ERP, CAD, or document management systems may lack the necessary APIs or data structures to support seamless PLM integration.
Limited scalability – Legacy systems often struggle to handle large volumes of data, making it difficult for companies to scale their PLM capabilities as their product portfolios grow.
High maintenance costs – Keeping outdated systems running can be costly, requiring extensive IT resources and workarounds that add complexity to the integration process.

Solution: Businesses looking to implement PLM should assess their current IT landscape and determine whether their existing systems can support integration. If legacy infrastructure poses significant challenges, companies may need to invest in system upgrades, cloud-based solutions, or middleware that facilitates data exchange between old and new platforms.

3. User Adoption: Overcoming Resistance to Change

Even the most advanced PLM system is ineffective if employees and external partners do not fully adopt it. Resistance to change is a common challenge, especially when employees are accustomed to existing workflows and tools. Several factors can contribute to low adoption rates:

Lack of training and awareness – Employees may not understand how to use the new system effectively, leading to frustration and reluctance to change.
Perceived complexity – If the PLM platform is difficult to navigate, employees may revert to manual processes or alternative tools, undermining the system’s effectiveness.
Cultural resistance – In organizations with deeply ingrained processes, teams may resist PLM implementation due to concerns about job security, workflow disruptions, or additional workload.

Solution: Companies must invest in comprehensive training programs, user-friendly interfaces, and ongoing support to encourage adoption. Leadership should communicate the benefits of PLM clearly and involve key stakeholders early in the process to build buy-in and ensure a smoother transition.

4. Customization Costs: Balancing Flexibility with Budget Constraints

PLM systems often require customization to meet the specific needs of a business, whether in terms of workflows, data structures, or integration with other enterprise applications. However, excessive customization can lead to:

High implementation costs – Customizing PLM software to fit unique business processes can significantly increase project expenses, requiring additional development time and resources.
Longer deployment timelines – Extensive modifications can slow down implementation, delaying the benefits that PLM is intended to deliver.
Complex system maintenance – Highly customized PLM systems can be difficult to upgrade, as new software versions may not be compatible with previous modifications.

Solution: Organizations need the flexibility to set up their PLM system in a way that works for them, but this shouldn’t become a burden. Instead of complex customizations, a no-code/low-code PLM platform allows you to configure settings easily—letting you adjust views, workflows, and features without dealing with complicated coding or unnecessary system changes. This approach ensures you get the functionality you need without the hassle of modifying the system’s core code.

Overcoming Challenges to Change

Despite these challenges, successful PLM integration is achievable with careful planning, strong leadership, and the right technology strategy. Companies can improve the integration process by:

Conducting a thorough needs assessment before selecting a PLM system.
Establishing clear integration goals and ensuring alignment with business objectives.
Investing in change management initiatives to drive user adoption.
Choosing scalable and flexible PLM solutions that can adapt to future business needs.

By addressing these challenges proactively, organizations can unlock the full potential of PLM, driving efficiency, collaboration, and innovation across the product lifecycle.

Current & Future PLM Trends

As technology advances, PLM is evolving beyond traditional product data management to become a dynamic tool for driving innovation, efficiency, and sustainability. Several key trends are shaping the future of PLM, transforming how businesses develop, manage, and optimize their products.

AI and Machine Learning Integration

Artificial intelligence (AI) and machine learning (ML) are set to revolutionize PLM by using automation to streamline complex processes and improve decision-making. AI-driven analytics can identify patterns in product data, optimize workflows, and even predict potential product failures before they happen. By leveraging these technologies, companies can reduce design errors, accelerate time-to-market, and enhance overall product quality.

Digital Twin Technology

Digital twins—virtual models of physical products—are becoming increasingly important in product development and lifecycle management. These virtual replicas allow companies to test, monitor, and optimize products in real-time without the cost and risk of physical prototypes. By integrating digital twins into PLM, businesses can simulate performance, identify potential issues early, and make data-driven improvements throughout the product’s lifecycle.

Increased Cloud Adoption

Cloud-based PLM is no longer just an option; it's becoming the standard. As companies embrace remote work and global collaboration, cloud PLM solutions provide real-time access to product data from anywhere. Cloud adoption enhances scalability, reduces IT infrastructure costs, and ensures seamless collaboration between teams, suppliers, and partners. With security and compliance improvements, more businesses are shifting away from on-premise solutions in favor of the cloud.

Sustainability Focus

With increasing regulatory pressure and consumer demand for sustainable products, companies are turning to PLM to track and reduce their environmental impact. Modern PLM solutions enable businesses to manage materials sourcing, monitor carbon footprints, and optimize designs for sustainability. By integrating lifecycle assessments into PLM, companies can ensure compliance with green regulations and make informed choices that align with corporate sustainability goals.

Greater IoT Connectivity

The Internet of Things (IoT) is further integrating with PLM, providing businesses with real-time product performance data. Connected devices can send insights back to PLM systems, enabling predictive maintenance, reducing downtime, and improving product reliability. By linking IoT with PLM, companies can track usage patterns, enhance post-market support, and create smarter, more responsive products.

Conclusion

PLM is rapidly evolving from a static data management tool into a dynamic, AI-driven, cloud-based ecosystem that supports innovation and efficiency. As these trends continue to shape the industry, companies that embrace next-generation PLM capabilities will gain a competitive edge, improve collaboration, and drive smarter, more sustainable product development in the digital-first world.

Explore Propel Software to find out more about the innovative capabilities of a cutting-edge PLM solution.

Back to

Product Management