PLM software helps companies develop and launch products more efficiently, collaboratively, and sustainably. It interconnects all processes of the entire product lifecycle – from design and engineering over manufacturing to the supply chain – and creates a central platform for all relevant product data. This way, teams can collaborate from anywhere, track changes, and comply with regulations.

In 2026, PLM projects especially require flexibility: Companies must adapt their solutions to changing demands in the product lifecycle – for example regarding new business models, shorter development cycles, or deeper integration into the supply chain.

A trend towards PLM systems in the cloud is becoming increasingly evident. Modern cloud PLM approaches support collaborative product development across company boundaries and facilitate the digital Idea to Market process through centrally stored data, real-time collaboration, and bidirectional data synchronization. One example is SAP Integrated Product Development – a cloud-based solution that connects product data, processes, and teams.

At the same time, on-premise solutions remain powerful and relevant in 2026, especially for companies with high requirements regarding data protection or compliance. The transition to the cloud is often a step-by-step process using hybrid architectures that combine on-premise solutions with cloud components, allowing for a smooth transition. Many organizations use these hybrid scenarios to preserve their existing infrastructure while benefiting from cloud innovations.

Another central driver of change is Artificial Intelligence | AI: not just as a tool, but as an integral part of product development. AI-supported functions assist, for example, in the analysis of large data volumes from the PLM environment, in the automation of recurring tasks, or in the generation of decision support in early design phases.

Greater efficiency in development and better collaboration: PLM overcomes silos and enables the bidirectional flow of real-time data for more effective knowledge transfer and teamwork.

Early error detection: Problems can be solved at lower costs, manufacturing scrap is reduced.

Shorter time to market: A central data basis throughout the product lifecycle enables more efficient processes and thus faster product launches.

Controlled complexity: All product-relevant information can be consolidated and managed in a central data model, variants can be configured with a clear overview, and customer-specific order processes in SAP can be automated.

Typical mistakes in PLM projects are:

• Too strong focus on software instead of processes
• Unclear goals and lack of PLM strategy
• Too complex introduction without prioritization or quick wins
• Lack of involvement of specialist departments, g., development, production, service
• Underestimated change management and lack of training
• Inadequate data quality and lack of governance
• Exclusive use of best-of-breed approaches, where isolated individual solutions stand side by side

Especially in PLM, an isolated approach is often suboptimal. True value is only created when product data consistently flows into downstream processes such as purchasing, manufacturing, service, or sales. Therefore, PLM must be understood as an organization-wide integration concept – not as an isolated solution.

A PLM system is the ideal solution as it allows product development teams to access all important product data in real time and it links CAD data with bills of material and other business information. SAP offers the optimal solution, as the PLM solution is seamlessly integrated into SAP’s ERP system and thus supports the entire product lifecycle. The DSC team accompanies enterprises in the implementation of their PLM strategy based on SAP solutions.