How To Monetize PLM?
In the 19th century, two French economists –Cournot and Bertrand built the standards for the competitive world. Both of them essentially came up with absolutely opposite conclusions. According to Cournet, companies should keep production lower so as to keep the price high and not drop prices to the minimal level. On the other hand, Bertrand’s model was contradictory and assumed that manufacturers or producers need raise production to get supplementary market share by reducing the product expense.
The second theory has now gotten back to us in the current digital economic scenario. The PDM/PLM world organizations are now competing with products which have complementary functionality and are successfully driving prices and margins down excessively. Concurrently, “user’s adoption” turns out to be a very crucial topic in the PDM/PLM space. In the scenario when PLM products increasingly introduce issues, customers are looking for alternatives. However, the ultimate solution to construe this dead-lock can be taking down prices to an absolute zero level. By making the primary PLM/PDM functionality free, enhanced user adoption and developing market share can be highly expected.
Associated with this, the constitution of the software will be modernized due to substantial implementations for the increasingly growing customer base. However, the main question that arises is that when would the PDM/PLM vendors take money to indulge in such actions? The few potential answers would be:
• Selling services, support contacts, etc.
• Trading traffic and online storage
• Vending premium functionality
• Merchandising instructions about organization work for the future development/progress
Some of these processes have already started happening. With the massive introduction of PDM functionality along with CAD, these are kind of trying to “sell for free”. Also, there has been a significant interest to model of Free Licenses etc.