Developing a Unified Product Lifecycle Management Value Model

With the understanding of the enormous economic value inherent in next generation products, business enterprises repeatedly describe the value metrics and Return On Investment (ROI) of Product Lifecycle Management (PLM) as difficult to assess, thus confounding their ability to quickly and strategically make decisions. Given that PLM initiatives are such sizable investments and interdisciplinary, executives are struggling to agree upon value metrics to measure throughout the project to understand an accurate value created. Thus a shortage of known ROI information is available to make the case for financing a PLM project; moreover unique industry and organizational variables make it unfeasible for companies to easily benchmark competitors and predetermine the values gained. A literature review reveals a void of information relative to quantifiable value metrics and ROI of PLM. This article proposes a framework to use Grounded Theory research methodology to capture value metrics and formulate models, contributing to future organizational decisions on PLM implementations.