Measuring Business Value for RDM Implemented Industries

Product Data Management (PDM) is a tool that helps engineers and others to manage both data and the product development process. PDM systems keep track of the volume of data and information generated during the design and manufacturing phases of product development and also support the maintenance phase of the products. These systems integrate and manage processes, applications and information that define products across multiple systems and media. Although PDM benefits an organisation in many ways, it is just a technology and software, and it has to be applied judiciously as It is very expensive. In general, the major obstacles in PDM implementation, relate to (difficulties in assessing Its business value and the management understanding of the same. This paper highlights a model (Return on Investment) that has been developed which could aid in assessing the accrued benefits, tangible benefits, costs, as well as the major needs/reasons for Implementing data management. The return on investment model presents a generalized methodology for evaluating the benefits that an organisation realizes from the implementation and use of a Product data management system. This model has been developed using Spreadsheets, which help to define the projects on which PDM has an impact in a user-friendly manner. This model breaks down the various benefits of PDM implementation into five basic areas (Sub models) and calculates project benefits through different modules. Finally, it gives the summarized results such as the payback period, net present value with discounted flows over the years and the internal rate of return on investment. Also, sensitivity analysis provides insight by changing the parameters relating to any of the benefits which were difficult to estimate.