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Why Your CPQ Project Will Fail Without Product Data

In the latest Novus CPQ Podcast, our friend Kristian Frostrup Madsen from CPC (Centre for Product Customization) breaks down why product data architecture is the make-or-break factor in every CPQ initiative—and how modularity, PLM alignment, and hands-on methodology can set the foundation for success.

“Even if you have the most state-of-the-art CPQ system, if you don’t have the right product data and you don’t have the right input, it’s very hard to get real value out of the tool.”
Kristian Frostrup Madsen, CPC

That quote should stop every manufacturer in their tracks. It’s not about how many CPQ features you’ve enabled—it’s about the product data underneath. Without the right structure, your quoting logic is just a castle built on sand.

From Configuration to Architecture

Kristian has worked across modularization, PLM, and CPQ for over a decade, and in this episode, he highlights a pattern we’ve seen again and again:

“What we typically see is that companies start developing from a corner. They build something, hit a wall, build something else. Eventually, they go live, but it’s never clean. We take a top-down approach—define major modules first, then structure from there.”

That top-down approach is rooted in engineering logic—not just software clicks. Kristian explains how CPC helps clients restructure legacy products into modular systems, even when the original design wasn’t modular at all.

The result? Simpler rules, fewer variants, and a CPQ setup that’s built to scale and evolve.

Why Modularity Must Come First

A key theme in the conversation is how product modularization should precede CPQ—not follow it. Kristian explains:

“You don’t want to configure nuts and bolts. You want to bring aggregation up to a level of modules and variants—and build logic around that.”

It’s a subtle shift that changes everything. Instead of writing rules for each product, you write rules for reusable platforms. Kristian calls this modular CPQ—and it's the direction forward for manufacturers dealing with complexity.

CPQ + PLM Integration: More Than a Buzzword

Many CPQ tools talk about PLM integration—but CPC shows what it actually looks like. Kristian outlines a real-world methodology for aligning commercial configuration in CPQ with technical definitions in PLM:

  • Start by defining product modules in PLM.
  • Extend that structure into CPQ with commercial rules.
  • Then connect the outcome of a quote directly back into ERP or PLM.
“The need to couple CPQ closer with PLM is growing. It’s not just a process—there’s real value in structuring both technical and commercial logic from a shared foundation.”

What You’ll Learn in the Episode

🎧 Full episode: Listen here

In this 30-minute episode, you’ll also hear:

  • How CPC transitioned from modular design to full CPQ implementations
  • Why CPC doesn’t sell software—and how that keeps their advice vendor-neutral
  • The role of AI in CPQ (and what it can’t replace—yet)
  • What customers should do before choosing a CPQ tool
  • Why CPC always works with the customer, not just for them

About CPC

CPC works with leading manufacturers across Europe and North America to restructure products, implement PLM systems, and deliver modular CPQ solutions.

They partner with cpq.se, Tacton, Configit, and Epicor—and are known for their deep product engineering background.

 

If you’re planning a CPQ project — or struggling with one already — this episode will give you a much-needed reset.

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Ready to learn more? Check out the online ebook on CPQ with the possiblity to book a CPQ introduction with Magnus and Patrik at cpq.se