Configuration Lifecycle Management (CLM) - Revision history

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 [[Product Lifecycle Management]]<br />
 [[Enterprise Resource Planning (ERP)]]<br />
 [[Software Development Life Cycle (SDLC)]]<br />

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 *Creating smart, connected products that integrate IoT sensors to provide a rich, real-time stream of data that opens up entirely new revenue opportunities.  CLM is the gateway to services-based revenue streams that have gross margins 2X and 3X that of typical [[hardware]]. Rather than fight pricing ways and rely on transaction revenue alone, manufacturers are designing and selling smart, connected products that are the future foundation of services revenue. And CLM is making the transition from transaction business models to service-driven ones possible. Configit’s latest study of North American manufacturers found 52% of them are planning to build IoT-enabled, smart, connected products in 2019.
 *CLM enables better sales and marketing coordination, in addition to streamlining new products and services launches, giving engineering teams more time to work on new products. 48% of manufacturers see higher product [[quality]] as a result of adopting a more CLM-driven strategy. Improvements in quote accuracy are improving product quality. 41% are seeing order turn-around times reduced, increasing customer loyalty.  And 35% are achieving more short-notice production flexibility. CLM contributes to growth by unifying front-end and back-end processes, enabling organizations to invest more in future products.
-*CLM is proving to be an excellent platform for manufacturers to define their digital transformation roadmaps supporting entirely new businesses. By orchestrating [[Product Lifecycle Management|PLM]], [[Computer-Aided Design/Computer-Aided Manufacturing (CAD/CAM)|CAD]], ERP and CRM systems to a common cadence when each has its own cycle time or speed, manufacturers are creating a platform for future new product and new business success. Digitally transforming manufacturing needs to always begin with the customer and work back into engineering (PLM & CAD systems), [[Enterprise Resource Planning (ERP)|manufacturing (ERP)]], and [[Customer Relationship Management (CRM)|sales and marketing (CRM]]). CLM enables manufacturers to plan and launch new products more efficiently and at a lower cost when all four systems are integrated from the customers’ perspective first. Improving time-to-market on new products and excelling at time-to-customer are two of the most important [[metrics]] customer-driven manufacturers rely on today.
+*CLM is proving to be an excellent platform for manufacturers to define their digital transformation roadmaps supporting entirely new businesses. By orchestrating [[Product Lifecycle Management|PLM]], CAD, ERP and CRM systems to a common cadence when each has its own cycle time or speed, manufacturers are creating a platform for future new product and new business success. Digitally transforming manufacturing needs to always begin with the customer and work back into engineering (PLM & CAD systems), [[Enterprise Resource Planning (ERP)|manufacturing (ERP)]], and [[Customer Relationship Management (CRM)|sales and marketing (CRM]]). CLM enables manufacturers to plan and launch new products more efficiently and at a lower cost when all four systems are integrated from the customers’ perspective first. Improving time-to-market on new products and excelling at time-to-customer are two of the most important [[metrics]] customer-driven manufacturers rely on today.
 *Enabling executives to see more opportunities to excel in every area of customer experiences is fueling new product ideas and entirely new businesses.  When a single platform is enabling engineering, manufacturing, sales, and marketing to share a single, unified view of the customer, senior management quickly sees areas where they can excel even further.

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 [[Configuration Management (CM)]]<br />
 [[Configuration Management Database (CMDB)]]<br />
 [[Product Lifecycle Management]]<br />
 [[Enterprise Resource Planning (ERP)]]<br />

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 The following table lists main aspects of PLM, ERP and CLM with Respect to Configuration Management:
-[[File:CLM_Vs_PLM_Vs_ERP.png|300px|CLM Vs PLM Vs ERP in Configuration Management]]<br />
+[[File:CLM_Vs_PLM_Vs_ERP.png|500px|CLM Vs PLM Vs ERP in Configuration Management]]<br />
 source: Configit

← Older revision		Revision as of 18:42, 6 September 2019
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	*Enhances User Experience: presents accurate and timely information and guidance		*Enhances User Experience: presents accurate and timely information and guidance
	*Change and Release Management: controls product changes and updates throughout the entire product lifecycle and ensures relevant updated information is distributed to proper channels		*Change and Release Management: controls product changes and updates throughout the entire product lifecycle and ensures relevant updated information is distributed to proper channels
		+
		+
		+	== PLM Vs. CLM Vs. ERP<ref>PLM Vs. CLM Vs. ERP [https://pdfs.semanticscholar.org/159c/863f8e32107210fc05e293fe829c18eeaffd.pdf Joy Batchelor]</ref> ==
		+	The following table lists main aspects of PLM, ERP and CLM with Respect to Configuration Management:
		+
		+	[[File:CLM_Vs_PLM_Vs_ERP.png\|300px\|CLM Vs PLM Vs ERP in Configuration Management]]<br />
		+	source: Configit
		+
		+
		+	== CLM and Digital Transformation<ref>How CLM Is Digitally Transforming Manufacturing [https://configit.com/how-clm-is-digitally-transforming-manufacturing/ Louis Columbus]</ref> ==
		+	Tracking cost reductions generated from digital optimization efforts are easy to sell to any CEO and board of directors because they promise and deliver results that make an impact on financial performance. Manufacturers are excelling at digital transformation start by optimizing every aspect of their operations, especially those directly aligned with customers.
		+
		+	By integrating the many front-end processes enabled by CRM, CPQ and product configuration systems with back-end systems comprised of ERP, PLM, and CAD, manufacturers are growing faster. They are digitally transforming their businesses using Configuration Lifecycle Management (CLM) as the foundation for future growth.
		+
		+	Here are the areas where combining digital transformation and CLM are combining to create high-growth business models that will flourish in the years ahead:
		+	*Creating smart, connected products that integrate IoT sensors to provide a rich, real-time stream of data that opens up entirely new revenue opportunities. CLM is the gateway to services-based revenue streams that have gross margins 2X and 3X that of typical hardware. Rather than fight pricing ways and rely on transaction revenue alone, manufacturers are designing and selling smart, connected products that are the future foundation of services revenue. And CLM is making the transition from transaction business models to service-driven ones possible. Configit’s latest study of North American manufacturers found 52% of them are planning to build IoT-enabled, smart, connected products in 2019.
		+	*CLM enables better sales and marketing coordination, in addition to streamlining new products and services launches, giving engineering teams more time to work on new products. 48% of manufacturers see higher product quality as a result of adopting a more CLM-driven strategy. Improvements in quote accuracy are improving product quality. 41% are seeing order turn-around times reduced, increasing customer loyalty. And 35% are achieving more short-notice production flexibility. CLM contributes to growth by unifying front-end and back-end processes, enabling organizations to invest more in future products.
		+	*CLM is proving to be an excellent platform for manufacturers to define their digital transformation roadmaps supporting entirely new businesses. By orchestrating [[Product Lifecycle Management\|PLM]], [[Computer-Aided Design/Computer-Aided Manufacturing (CAD/CAM)\|CAD]], ERP and CRM systems to a common cadence when each has its own cycle time or speed, manufacturers are creating a platform for future new product and new business success. Digitally transforming manufacturing needs to always begin with the customer and work back into engineering (PLM & CAD systems), [[Enterprise Resource Planning (ERP)\|manufacturing (ERP)]], and [[Customer Relationship Management (CRM)\|sales and marketing (CRM]]). CLM enables manufacturers to plan and launch new products more efficiently and at a lower cost when all four systems are integrated from the customers’ perspective first. Improving time-to-market on new products and excelling at time-to-customer are two of the most important metrics customer-driven manufacturers rely on today.
		+	*Enabling executives to see more opportunities to excel in every area of customer experiences is fueling new product ideas and entirely new businesses. When a single platform is enabling engineering, manufacturing, sales, and marketing to share a single, unified view of the customer, senior management quickly sees areas where they can excel even further.

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 What variants of the products that is valid for a specific customer depends upon a range of parameters including thecustomer’s market and the local regulations and conformance conditions in that market. The exact time for the delivery of the product will also influence what options are available, as will the overall business decisions made from a profit perspective on what will be offered to what customers on a market by market basis.
-The key idea in a CLM solution is that there is only a single version of configuration truth, i.e., the CLM system is the master of record. Thus, the product model contains rules to support all phases of configuration, from design, to ordering and manufacturing, to maintenance. We briefly describe how product configuration is an essential part of the seven key phases:
 *Develop. During the development of new products, decisions have to be made on how to modularize the product so that it will be amenable to customization. The allowable variants and options must be defined so that the necessary dependent engineering, sourcing processes and other business processes can be initiated. In this phase, the allowable combinations forming the configuration space are being defined. This involves defining legal and technical constraints representing, for instance, as a concrete example the permitted radio frequencies for wireless door locking in specific markets. It is important to understand the consequences for the downstream processes and profitability of the decisions taken on the offered options. This involves analyzing the space of allowed configurations.
 *Price. Pricing is a key activity for any business. It involves analyzing the cost prices and the market acceptable sales prices and from these deducing the expected profit margins. With customizable products this is grossly complicated because the calculations have to be made over the full space of possible configurations and not just on a list of predetermined products.
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 == See Also ==
 == References ==
 == Further Reading ==
-*Configuration Lifecycle Management – Future of Product Configurators [semanticscholar.org/paper/Configuration-Lifecycle-Management-–-Future-of-Myrodia-Randrup/ed0e1879d775506e78e6a3f1b999204a6d4580ef Myrodia, Randrup, Hvam]
+*Configuration Lifecycle Management – Future of Product Configurators [https://www.researchgate.net/publication/330089111_Configuration_Lifecycle_Management_-_Future_of_Product_Configurators Myrodia, Randrup, Hvam]
 *10 Reasons Why CLM Is Driving Manufacturing’s Digital Transformation [https://configit.com/10-reasons-why-clm-is-driving-manufacturings-digital-transformation/ Louis Columbus]
 *CLM configuration management: Adoption guidance and practices [https://jazz.net/library/article/90557 Kathryn Fryer, Catherine Trinkwon]
 *The Business Challenge of Configuration [https://www.aaai.org/Papers/Workshops/1999/WS-99-05/WS99-05-022.pdf Dr. Patric Timmermans]
 *Configuration Lifecycle Management – An Assessment of the Benefits Based on Maturity [https://orbit.dtu.dk/ws/files/158820792/Configuration_Lifecycle_Management_An_assessment_of_the_benefits_based_on_maturity_preprint.pdf Myrodia, Anna; Randrup, Thomas; Hvam, Lars]

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 Configuration Lifecycle Management (CLM) is the management of all product configuration definitions and configurations across all involved business processes applied throughout the lifecycle of a product. The development of the concept of CLM has been prompted by the proliferation of configuration capabilities in different enterprise systems and a subsequent need to establish a master system of records for product definition logic and configurations, especially for manufacturing companies that rely on business processes related to assemble-to-order or mass customization. CLM differs from other business disciplines as it focuses on cross functional use of information of configurable products. This entails that users of CLM include both back-office engineers, financial controllers among others, and marketing, sales and customers.<ref>Defining Configuration Lifecycle Management (CLM) [https://en.wikipedia.org/wiki/Configuration_lifecycle_management Wikipedia]</ref>
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 *Build. The building of the product is defined by the configuration. Each product will have its own defining configuration that is used for selecting the correct parts to be mounted. An error in a configuration is very costly if it makes its way down to the factory floor. The result can be that the end product will be useless or that the production line must stop for a period of time while the problem is overcome. Other constraints to be considered are build constraints on the production line reflecting known line labour balancing issues and lineside feeding constraints.
 *Maintain. After a product is delivered it will typically go through service and maintenance where these activities are also dependent upon the configuration of the product. The configuration of the product can also be changed over time by upgrading sub-systems.
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 *10 Reasons Why CLM Is Driving Manufacturing’s Digital Transformation [https://configit.com/10-reasons-why-clm-is-driving-manufacturings-digital-transformation/ Louis Columbus]
 *CLM configuration management: Adoption guidance and practices [https://jazz.net/library/article/90557 Kathryn Fryer, Catherine Trinkwon]

← Older revision		Revision as of 18:03, 6 September 2019
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	== Further Reading ==		== Further Reading ==
		+	*Configuration Lifecycle Management – Future of Product Configurators [semanticscholar.org/paper/Configuration-Lifecycle-Management-–-Future-of-Myrodia-Randrup/ed0e1879d775506e78e6a3f1b999204a6d4580ef Myrodia, Randrup, Hvam]
		+	*10 Reasons Why CLM Is Driving Manufacturing’s Digital Transformation [https://configit.com/10-reasons-why-clm-is-driving-manufacturings-digital-transformation/ Louis Columbus]
		+	*CLM configuration management: Adoption guidance and practices [https://jazz.net/library/article/90557 Kathryn Fryer, Catherine Trinkwon]