Connecting capabilities to an innovative Systems Engineering solution. Christoph Bräuchle Director, Business Development SE

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1 Connecting capabilities to an innovative Systems Engineering solution Christoph Bräuchle Director, Business Development SE

2 Strength and Reach FINANCIAL STRENGTH FOCUSED ON MANUFACTURING GLOBAL FOOTPRINT $1.400 $1.300 $1.200 $1.100 $1.000 Total Revenue ($ millions) Total non-gaap operating profits* ($ millions) % = YOY growth 8% 16% 8% 3% ~3% $400 $350 $300 $250 $200 FY 2013 revenue by vertical Retail & Consumer: 8 % Automotive: 12 % Other: 10 % Life Sciences: 4 % Industrial Products: 30 % FY 2013 revenue by region Americas: 41 % Europe: 37 % AP: 22 % $900 $ Guidance $150 $100 Electronics & High Tech: 18 % Federal, Aerospace & Defense: 18 % ORGANIZATIONAL STRENGTH STRONG MARKET PRESENCE STRONG COMMUNITY SUPPORT 6,000+ employees 2,000+ employees in R&D 1,360+ service professionals 27,000+ active customers 1,456,000+ active Windchill Seats 1,931,000+ total active Seats 750+ partners 10 million students participating in Global Academic Program 150+ sponsored FIRST Teams (For Inspiration and Recognition of Science & Technology) 2

3 Transforming How Products are Created and Serviced Our Current System of Market Leading Software Applications Extended CAD ALM Manage product requirements, system models, software configurations, test plans and defects SLM Create and analyze conceptual and detailed designs, perform engineering calculations Evolve the complete definition of a product over its entire life Plan, manage, deliver and analyze service information, parts and warranty throughout the service lifecycle SCM Manage components and suppliers, measure and manage compliance, and analyze product cost CAD is ~41% of Revenue Extended is ~47% of Revenue SLM is ~12% of revenue 3

4 System of Solutions Global Software Development Component and Supplier UDI Materials Compliance Manufacturing Process Retail Technical Information Project Service Parts Information Global Product Development Multi-CAD Design Product Advantage Service Advantage Service Knowledge Warranty and Contract 3D Design Service Parts STRATEGIC PLANNING Global Platforms Global Quality Enterprise Validation and Review System Service Requirements Network and Validation Service Depot Service Parts Pricing Field Service 4

5 System of Solutions PRODUCT ENGINEERING Global Software Development Component and Supplier UDI Materials Compliance Manufacturing Process Retail Technical Information Project Service Parts Information Global Product Development Multi-CAD Design Product Advantage Service Advantage Service Knowledge Warranty and Contract 3D Design Service Parts Global Platforms Global Quality Enterprise Validation and Review System Service Requirements Network and Validation Service Depot Service Parts Pricing Field Service 5

6 System of Solutions Global Software Development SUPPLY CHAIN AND MANUFACTURING Component and Supplier UDI Materials Compliance Manufacturing Process Retail Technical Information Project Service Parts Information Global Product Development Multi-CAD Design Product Advantage Service Advantage Service Knowledge Warranty and Contract 3D Design Service Parts Global Platforms Global Quality Enterprise Validation and Review System Service Requirements Network and Validation Service Depot Service Parts Pricing Field Service 6

7 System of Solutions Global Software Development Component and Supplier UDI Materials Compliance Manufacturing Process Retail Technical Information SERVICE ENGINEERING Project Service Parts Information Global Product Development Multi-CAD Design Product Advantage Service Advantage Service Knowledge Warranty and Contract 3D Design Service Parts Global Platforms Global Quality Enterprise Validation and Review System Service Requirements Network and Validation Service Depot Service Parts Pricing Field Service 7

8 System of Solutions Global Software Development Component and Supplier UDI Materials Compliance Manufacturing Process Retail Technical Information Project Service Parts Information Global Product Development Multi-CAD Design Product Advantage Service Advantage Service Knowledge Warranty and Contract 3D Design Service Parts Global Platforms Global Quality Enterprise Validation and Review System Service Requirements Network and Validation Service Depot Service Parts Pricing Field Service SERVICE EXECUTION 8

9 How Products Are Transforming: Automobile Example Physical Smart Smart, Connected 9

10 Major Forces of Transformation in Manufacturing Sector REGULATION DIGITIZATION CONNECTIVITY PERSONALIZATION SERVITIZATION GLOBALIZATION SOFTWARE-INTENSIVE PRODUCTS External forces are reshaping the manufacturing landscape Products are evolving to be smart, connected and global Value is fundamentally shifting from product to service When combined, these forces will transform the industry 10

11 These Major Forces Have Driven s Evolution System Complexity MBSE Complex Products Atego Acquisition 2014 Connectivity IoT Connected Products ThingWorx Acquisition 2012 Servitization SLM Service Lifecycle Mgmt Multiple Acquisitions 2011 Software Intensive Products ALM Application Lifecycle Mgmt MKS Acquisition 2008 Regulation SCM Supply Chain Planning Synapsis Acquisition 1998 Globalization & Personalization Product Lifecycle Mgmt Windchill Acquisition 1988 Digitization CAD Computer Aided Design Core Innovation 11

12 MBSE in Context Simplified view on Systems Engineering System Requirements Elicitation Engineering System Architecture Requirements Functional Logical Technical System Test Specification Planning & Execution Results 12

13 MBSE in Context Understand the context of the system Context Requirements Constraints Stakeholders Trends Context Architecture Interactions Dependencies Tech Constraints System of Systems Test in Context 13

14 MBSE in Context De-compose and Integrate consistently Component Requirements Derive Refine Component Design Consistent with System Architecture Model-based for simulation Component Test Ensure that Implementation matches specification Back-to-back testing based on sim results 14

15 MBSE in Context Systems Engineering Requires Interoperability and Traceability 15

16 Systems Engineering 16

17 Systems Engineering 17

18 Key solution areas to address Engineering Challenges Engineering Challenges Model-Based Systems Engineering 1 2 System Requirements and Validation X-Discipline Coordination 3 4 Product Line Engineering (System Modularity and Reuse) Ensuring customer needs are met Reducing and mitigating risks Providing holistic view throughout lifecycle Increasing reuse/ Supporting variants Understanding trade-offs Formalize use of modeling to support system requirements, design, analysis, verification and validation activities throughout product lifecycle Continuously evaluate systems and sub-systems against requirements throughout product lifecycle Improve communication and coordination across disciplines (Mechanical, Electrical, Software) to identify and mitigate risks early Architect new products to maximize component reuse and apply variability with decreased costs and time 18

19 Solution areas in an open and integrated SE Environment Model-Based Systems Engineering X-Discipline Coordination System Requirements and Validation Product Line Engineering (System Modularity and Reuse) 19

20 Globalization Challenges require Interoperability Distributed Design Collaboration U.S. R&D Center European Design Center Global Joint Ventures Asian Manufacturing Secure, Globally Accessible data Global Manufacturing & Supply Chain

21 Collaboration Challenges drive Interoperability Needs from multi-discipline development organizations example car-makers Specific development tools Different suppliers Chassis Adapted development processes Tailored information models Infotainment Powertrain Different work methodologies ADAS and Connectivity E/E Architecture 21

22 Conventional Solution Approach Traceability Ent Change Req Auth Impact Analysis Cross-Discipline Applications Change Mgmt Product Structure Option and Variant ALM Change Mgmt Requirements Test/Verification Traceability Sys Arch Sys Modeling Functions Interfaces Doc Mgmt Impact Analysis Variability Point Integrations over integration platform or direct Option and Variant Source 22

23 Customer Reality Pushes Conventional Approach to its limits Traceability Ent Change Req Auth Impact Analysis Cross-Discipline Applications Change Mgmt Change Mgmt Change Mgmt Product Structure Product Structure Product Structure Option and Variant Option and Variant Option and Variant Doc Mgmt Doc Mgmt Doc Mgmt Significant N:N Solution Dependency Constraints ALM ALM ALM Change Mgmt Change Mgmt Change Mgmt Requirements Requirements Requirements Test/Verification Test/Verification Test/Verification Traceability Traceability Traceability Impact Analysis Impact Analysis Impact Analysis Option and Variant Option and Variant Option and Variant Source Source Source Sys Arch Sys Modeling Functions Interfaces Variability 23

24 OSLC Interoperability OSLC Interoperability OSLC Possible Strategy Leveraging OSLC Connect capabilities on demand Change Mgmt Product Structure Option and Variant Doc Mgmt CAD Mgmt ESB Process Orchestration SE Area Sys Arch Change Mgmt Sys Modeling Requirements Functions Test/Verification Interfaces Traceability Variability Impact Analysis Mdl/ Sim Auth Other Visualization Config Workflow Reporting Security / Access Control Admin Option and Variant Config Reporting Security / Access Control Admin Document Generation IMP/EXP Visualization Workflow Ext. SCM 24

25 Goal: Support Multi-Divisional Systems Engineering Multiple Tools, Solutions and Organizational Considerations Top Level System Engineering System Engineering solution operated across business units SE ALM Integral ALM Integrated Competitive Integrated Competitive ALM Division A Division B Division C.. PT C 3 rd Party Tools / Solutions Customer Business Systems Competitive Solution 25

26 Technical Approach: s Enterprise Platform A Platform that is Open, Flexible, Engaging and Dependable User and Task Focus Rest enabled Clients Application Portal Canonical Representation Atego Modeler / Artisan Studio 3 rd party Applications Integrity ERP Systems Message Brokers Transformation & Routing Rules Integration Patterns & Application Adapters Service Registry & Repository Windchill MES Systems Service Bus Service Center Customer IT Domain User/Group Object Linking Search & Indexing Vaulting & Content Relex Products Solution Manager Workflow & BPM BI & Analytic Reporting Archive Enterprise Shared Services Publishing & Visualization System Monitor Forward Looking Information Subject to Change without Notice 26

27 Federal, modular solution infrastructure - Service Bus connectivity layer - Solution modules by or other vendors - External tools and repositories - Flexible linking and navigation 27

28 Sustainable Systems Engineering Environment - Service Bus connectivity layer - Solution-modules by or other vendors - External tools and repositories - Flexible linking and navigation 28

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