A study conducted by Deloitte Research among nearly 650 leading manufacturers worldwide found that the majority of executives consider innovation the top growth factor in the coming years. Yet at the same time they admit that driving product innovation and shortening time-to-market are at the bottom of their priorities (see graphic).

Over the past decade, business leaders have focused on reducing costs, improving quality and eliminating waste. Initiatives like Six Sigma and Lean Manufacturing are typical examples of these efforts. But most leaders start to recognize that a single focus on reducing costs and expenses is not enough. "You cannot shrink your way to greatness", as Tom Peters states on the cover of his excellent book 'The Circle of Innovation'. The only way to grow and increase shareholder value is through increasing revenues, and the only sustainable way to do so is by continuously introducing new products to market.

There are a few companies that demonstrate today what impact effective innovation can have. Think of Apple, Google and 3M. Business Week recently named them the 3 most innovative companies in the world, and all three companies are prime examples of how innovation can lead to increased revenues and shareholder value. How would you like to have owned shares of any of these firms over the past 3 years?

Well, it's not too late (yet). Maybe you've missed out buying shares of these three companies, but there is still time for your company put more focus on innovation. Just don't wait too long, the competition doesn't sleep, either.

Starting with this newsletter, we will begin with a high-level introduction of PLM, its origins, elements, business value and ways to get it. In addition we will illustrate how PLM can be a key element in enabling companies to establish innovation as a core competency and competitive differentiator. This month, we start with a definition of PLM. Next month, we will take a look back in history and talk about the origins of PLM. Stay tuned...

Definition

Product lifecycle management or PLM is an enabling technology for innovation, new product development and introduction (NPDI), and product information management from ideation to end of life. PLM integrates people, data, processes, and business systems and provides a product information backbone for companies and their extended enterprise. Using PLM, companies are able to bring more new and better products to market in less time.