In a previous post, I discussed the importance of strategy and purpose alignment in implementing PLM, digital twins and digital thread solutions. Nowadays, PLM solutions include an ecosystem of processes, data interfaces and systems requiring both out-of-the-box configuration and cross-platform integration.
PTC recently embarked onto the SaaS ladder with its core Windchill offering and earlier across its wider product portfolio. Per a recently issued product brief entitled Accelerate Innovation with Windchill+, PTC introduced the software in the title card. Essentially, it is a re-platformization of their flagship PLM software with a modern software-as-a-service architecture. The brief claimed the new software:
- Maintains “100 percent of the capability available from Windchill on-premises with customizable workflows, change management processes, bills of materials (BOMs) management and more.”
- Ensures “an easy transition for existing Windchill customers [while moving] from on premises to SaaS-based PLM solution when the time is right” for the business.
In April 2022, Jim Heppelmann, president and CEO, stated in a press release that “Windchill+ unleashes an exciting new future for our Windchill product line, delivering the full digital transformation power of PLM while simplifying deployment, usage and upgrades through the use of a modern SaaS architecture.”
In this post, I'll elaborate on the why, how and what of making the move to SaaS while covering key considerations for both new and legacy PLM users.
Why Make the Move to SaaS
SaaS brings the promises of complexity reduction, improved user experience and support services, better business agility, reduced IT hassle and the ability to stay ahead of the curve. SaaS adoption is now one of the core principles of many open enterprise architectures.
Beyond the obvious business benefits of SaaS, a recent IDC whitepaper commissioned by PTC, entitled Software as a Service PLM: The Key to Sustainable Product Innovation, reported that “SaaS PLM improves product quality” due to easier global adoption and better collaboration.
“SaaS PLM is the key to product development in a disrupted, global economy—it simplifies collaboration and streamlines information to improve design, manufacturing and support processes.”—IDC
These affirmations might sound far-fetched when put in a business context, as digital platforms alone cannot be silver bullet enablers. However, SaaS is not only about technology; it also implies a business model of continuous improvements, upgrades, integrations and more.
It is essential to look at SaaS from both a strategy and practical perspective, always linking to an actionable plan from day one. As Simon Sinek put it per the idea of the Golden Circle: “’Start with Why’ shows that the leaders who’ve had the greatest influence in the world all think, act and communicate the same way—and it’s the opposite of what everyone else does.”
Any PLM or other enterprise solution adoption is also about the implementation and end-user experience; it is often referred to as the “learning journey” by consultants, and something that can be difficult to size or price.
How to Make the Move to SaaS
SaaS adoption has significantly reduced barriers to entry with reduced upfront fees, drastically contributing to democratizing PLM to all businesses, large or small. It allows organizations to phase their PLM implementation and start small, building on managed elastic high-availability infrastructure, while leveraging solution best practices very early on.
Having said that, it remains very important to understand the small print when signing up for SaaS, especially when it relates to core product data and other IP critical or competitive information, particularly when it relates to significant investments. Ask questions like:
- Is the SaaS solution the same as the on-premises equivalent, and what are the potential differences or gaps?
- How will the solution be configured and customized (some of this is required for most large corporations and start-ups)?
- What are the customization opportunities, including low-code/no-code approaches?
- How will it be integrated and kept secured (and accredited) across the wider enterprise landscape, both initially and later as the business matures or evolves? (This includes potential on-premises to SaaS, and SaaS to SaaS integration across multiple solutions and vendors.)
- How will the solution be priced, and with what level of flexibility?
- How will changes be introduced, and what will be the technical and user training implications?
- How will data be structured, in what format, and how will it be accessible across the relevant sites?
- How will data be migrated to and from the SaaS solution, who will be able to perform this, and at what cost?
This last set of questions are very important for existing users or users wishing to migrate from another solution, either from a legacy platform from the same vendor or from moving away from an entirely different vendor. In the avoidance of doubt, when referring to a “solution,” it is of course referring to process, data and technology aspects.
Such a solution also relates to a given commercial model; transitioning from one to another cost model should not be underestimated, either. Pay-as-you-use models are flexible, though it is important to understand potential “handcuff” or lock-in conditions and wider service-level options (beyond current expectations, as these might widen in the future).
What to Move to SaaS
Now, there is pretty much no data segregation when considering SaaS; all businesses are now using or implementing cloud-based solutions, so the technical plumbing is not in question. It is perhaps still a data question: is certain data prone to being managed in a SaaS environment?
Key data considerations include:
- What data quality is expected to be achieved or maintained, prior and post migration to SaaS?
- What are the current data usage patterns, how is this forecasted to evolve, and how will this translate in commercial terms?
- What legacy information will continue to be used in practical terms, alongside or in parallel or new SaaS adoption?
- And arguably, what mechanisms will be available to exchange/import and export data from SaaS to support the relevant business scenarios?
What are your thoughts?