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How Configuration Lifecycle Management (CLM) drives Digital Transformation in Manufacturing Sector

By Nisha Sharma - February 02, 2023 4 Mins Read

How Lifecycle Management (CLM) drives Digital Transformation in Manufacturing Sector

With the increased involvement of digitalization, automation, and software in products, companies must ensure consistency and reliability in product delivery to meet customer requirements.

Due to their ability to promise and deliver outcomes that impact financial performance, tracking cost reductions resulting from digital optimization initiatives is simple to market to any CEO and Board of Directors. The manufacturing sector shines out for digital transformation, mainly because it optimizes every area of their business, end to end- especially those closest to the customer.

Manufacturers are expanding more quickly thanks to the integration of the multiple front-end processes made possible by CRM, CPQ, and product configuration systems with the ERP, PLM, and CAD systems that make up the back-end systems. They are adopting Configuration Lifecycle Management (CLM) as the cornerstone for future expansion as they digitally change their companies.

Also Read: Top 10 Reasons to Employ Contract Lifecycle Management

The following are the operational areas where integrating CLM and digital transformation will result in high-growth business models that will prosper in the future:


The development of intelligent, interconnected products that incorporate IoT sensors to deliver a rich, real-time stream of data that creates new business prospects. The entry point to revenue streams based on services, which have gross margins 2X and 3X that of standard hardware, is CLM. Instead of fighting pricing strategies and relying solely on transaction revenue, manufacturers are creating and marketing smart, connected goods that will serve as the future pillar of services revenue. The shift from transactional to service-driven business models is made feasible by CLM.

Team Alignment

Better coordination between sales and marketing is made possible by CLM, and the smoother introduction of new goods and services frees up more time for product development teams.

By integrating front-end and back-end operations, CLM promotes growth by allowing businesses to increase their investment in new products.

Manufacturing Needs

Manufacturers find that CLM is an excellent platform for defining their digital transformation roadmaps supporting entirely new enterprises. Manufacturers are laying the groundwork for the future success of new products and businesses by orchestrating PLM, CAD, ERP, and CRM systems to a single cadence when each has its own cycle time or speed.

When digitally modernizing production, the customer must always come first. From there, engineering (PLM & CAD systems), manufacturing (ERP), and marketing must all be considered (CRM). When all four methods are integrated from the customers’ point of view, CLM helps manufacturers plan and market new goods more effectively and at a lower cost. Customer-driven manufacturers rely on two crucial measures: improving time-to-market for new goods and excelling at time-to-customer.

Customer Experience

New product ideas and ultimately, new businesses are being ignited by giving executives more significant opportunities to excel in every aspect of the customer experience. Senior management recognizes areas for additional improvement as soon as a single platform makes it possible for engineering, manufacturing, and marketing to share a single, unified perspective of the client.

Also Read: Top Nine Digital Transformation Trends to Watch Out for in 2023

Cross-Functional Collaboration

Senior executives and leaders in the industrial sector have the challenging task of guiding the digital transformation of their enterprises while lowering costs and enhancing customer experience. According to a Gartner report on 2023 CIO Agenda Insights for the Manufacturing Industry, 36% of heavy manufacturing CIOs had experienced disruption in operating cost competitiveness.

An effective and scalable method for supplying accurate, current product configuration information that can improve engineering, manufacturing, sales, and service solutions is configuration lifecycle management.

The true benefit of configuration lifecycle management lies in the platform it offers for cross-functional cooperation, which can completely change an organization and increase its efficiency while also making it more flexible, responsive, and competitive.

As the competition and demands of the customers changing continuously to reduce costs, enhance customer satisfaction, and increase profitability are influencing the need to rethink product design and marketing strategy.

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Nisha Sharma

Nisha Sharma- Go beyond facts.Tech Journalist at OnDot Media, Nisha Sharma, helps businesses with her content expertise in technology to enable their business strategy and improve performance.With 3+ years of experience and expertise in content writing, content management, intranets, marketing technologies, and customer experience, Nisha has put her hands on content strategy and social media marketing. She has also worked for the News industry. She has worked for an Art-tech company and has explored the B2B industry as well. Her writings are on business management, business transformation initiatives, and enterprise technology.With her background crossing technology, emergent business trends, and internal and external communications, Nisha focuses on working with OnDot on its publication to bridge leadership, business process, and technology acquisition and adoption.Nisha has done post-graduation in journalism and possesses a sharp eye for journalistic precision as well as strong conversational skills. In order to give her readers the most current and insightful content possible, she incorporates her in-depth industry expertise into every article she writes.

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