Decentralised or centralised management of data and products: influence on revenue-generating processes

Abstract

Products, services, product data, information systems, and business processes are very closely related issues. The products must be in control, and the product data and product portfolio suit the business to ensure process performance. Customers' demanding complex solutions necessitate considerations over decentralised or centralised management of data and products. Decisions on product and data management affect vital processes. Thematic analysis is applied to company product data management (PDM) and product portfolio management (PPM) practices to reflect the centralisation vs. decentralisation perspective and identify preconditions for centralisation. It appears that the volume of standard products, pressures to comply with regulations and standards, and product and process maturity influence whether a company benefits more from centralisation or decentralisation. Value is provided by revealing challenges of decentralised PDM and PPM, and by clarifying preconditions for centralisation. The findings indicate the order of priority for centralisation in terms of aligning processes and harmonising data.