State of the PLM Industry
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1 State of the PLM Industry Ed Miller President April 29, 2002 Copyright 2002 by CIMdata, Inc. Agenda Business challenges demand PLM Trends reflect PLM industry evolution Copyright 2002 by CIMdata, Inc. - 2 CIMdata is a registered trademark of CIMdata, Inc. Page 1
2 Market Change Investment Drivers Enterprise investments focus on competitive position World economic conditions drive action Increased fear of failure motivation to act Major investments are enterprise driven Investment decisions are made by high-level management All investments focus on solving business problems, and leveraging opportunities Key drivers are globalization, supply chain mgt, customer relationships, and product innovation $ Copyright 2002 by CIMdata, Inc. - 3 Innovation Now A Critical Issue Product innovation build on previous initiatives Innovation Time-to-market Quality Cost Evolution Collaboration Shared Environments Concurrent Engineering Task Automation Issue Response Focus on innovation leverages previous initiatives across the entire enterprise!! Product innovation is now an executive issue Collaboration is an essential approach Enabling collaboration & enhanced product innovation require mgt. of product definition Copyright 2002 by CIMdata, Inc. - 4 CIMdata is a registered trademark of CIMdata, Inc. Page 2
3 PLM Resulting From an Evolution A collaborative backbone for business performance Increasing Value Time-to-Market Innovation Toolkits and Generic Applications Focus - Functions Business Solutions Focus - The Bottom Line Business Applications Focus - Processes Quality Custom Implementations Focus - Data and Technology Cost Time Copyright 2002 by CIMdata, Inc. - 5 Market Change Lifecycle Scope Enterprise perspective expands the industry s view Collaborative distributed/global operations Intellectual asset value and management Enterprise PDM (an engineering view) Enterprise Enterprise product lifecycle perspective Early PDM Design Production Service Copyright 2002 by CIMdata, Inc. - 6 CIMdata is a registered trademark of CIMdata, Inc. Page 3
4 The Acronym War Everyone fumbles for consistent terminology Early In the 2000s 80s and early 90s Product Lifecycle PDM TDM Product EDM TIM PIM The Document Management New Adopted Data Term Engineering Technical CME Information CAD/CAM/CAE cpdm collaborative Product Definition management EDA Product Data Management Collaborative Manufacturing Enterprise PLM is PLM Product Lifecycle Management PDM Product Definition Collaboration CASE MCAD PKM CPC Collaborative Product Commerce Product Knowledge Management Copyright 2002 by CIMdata, Inc. - 7 PLM The Definition What is Product Lifecycle Management (PLM) A strategic business approach that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination, and use of product definition information across the extended enterprise from concept to end of life integrating people, processes, and information Copyright 2002 by CIMdata, Inc. - 8 CIMdata is a registered trademark of CIMdata, Inc. Page 4
5 PLM The Definition What is Product Lifecycle Management (PLM) Strategic business approach Applies a consistent set of business solutions Collaborative creation, management, dissemination, & use Product definition information Supports the extended enterprise Concept to end of life Integrates people, processes, & information Copyright 2002 by CIMdata, Inc. - 9 Scope of PLM Fits Industry Needs PLM focuses on extended enterprise intellectual assets Managing definition through its entire lifecycle From initial concept through end of life Encompassing the entire extended enterprise Including the product creation authoring tools MCAD, ECAD, CASE, Tech-Pubs Managing the complete product definition Mechanical, electronic, software, and docum. Manufacturing and management processes Integrating all three product-related lifecycles Copyright 2002 by CIMdata, Inc CIMdata is a registered trademark of CIMdata, Inc. Page 5
6 Role of PLM in the Enterprise Complete management of product definition information PLM Customer Service Use/Support/ Maintain CAD Partners Develop Product Design/Engineering Collaboration and Integration Mfg. Engineering Project Management Produce Product ERP CRM Customers Sales/ Marketing Market/ Sell Production Manufacturing SCM Suppliers Copyright 2002 by CIMdata, Inc Industry Evolution PLM Acceptance Recognition of PLM s value is increasing significantly Companies continue to invest despite economy To survive. fear drives many investments To win. forward-looking for future advantage PLM becomes an executive issue Product innovation vision enabling Quick ROI is required to gain/retain commitment Market changes increase PLM credibility SAP, EDS, and IBM make PLM a major focus Major systems integrators and consulting firms establish WW practices focused on PLM Copyright 2002 by CIMdata, Inc CIMdata is a registered trademark of CIMdata, Inc. Page 6
7 Agenda Business challenges demand PLM Trends reflect PLM industry evolution Copyright 2002 by CIMdata, Inc PLM Market Evolution Consolidation Industry consolidation drives changing relationships Industry mindshare dominated by a few lifecyle-focused PLM suppliers EDS, IBM/Dassault, SAP, PTC, MatrixOne Partnerships/alliances expand as consolidation continues Alignment of niche suppliers with major programs Systems integrators and consulting firms align more formally with technology suppliers Interoperability between programs becomes more critical Copyright 2002 by CIMdata, Inc CIMdata is a registered trademark of CIMdata, Inc. Page 7
8 PLM Market Supplier Positioning Significant differences evolve among suppliers Major philosophy differences among suppliers Design-based vs. production-based PLM suppliers A few key battlegrounds emerge expansion Digital manufacturing is already becoming critical Service/maintenance is gaining exposure Industry-focused solutions drive and differentiate suppliers Automotive, electronics, process, The Product re-emerges as the major theme. Back to the roots Copyright 2002 by CIMdata, Inc PLM Lifecycle-Based Revenue Leaders A group dominated by MCAD technology suppliers 1,800 1,600 1,400 1, Millions $ 1, IBM PLM/Dassault EDS PLM PTC Revenues presented are CIMdata s estimates for CY 2001 SAP MatrixOne Copyright 2002 by CIMdata, Inc CIMdata is a registered trademark of CIMdata, Inc. Page 8
9 Overall PLM Market Revenue Leaders Full PLM includes a widely diversified group of companies 1,800 Millions $ 1,600 1,400 1,200 1, IBM PLM/Dassault Cadence EDS PLM PTC Autodesk Mentor Graphics Revenues presented are CIMdata s estimates for CY 2001 SAP MSC.Software Copyright 2002 by CIMdata, Inc cpdm Market Revenue Leaders A diverse group with differing philosophical focuses $700 Millions $ $600 $500 $400 $300 Services Software Maintenance Software $200 $100 $0 EDS SAP IBM PLM/Dassault PTC MatrixOne Agile Intergraph NEC Fuji Xerox Eigner Revenues presented are CIMdata s estimates for CY 2001 Copyright 2002 by CIMdata, Inc CIMdata is a registered trademark of CIMdata, Inc. Page 9
10 Key PLM Investment Programs (1 of 3) Major themes emerge to support expanded perspective Collaboration real-time support & extended enterprises Decision support mining knowledge Program management enabling product mgt. Enterprise Design Production Service Copyright 2002 by CIMdata, Inc Key PLM Investment Programs (2 of 3) Major themes emerge to support expanded perspective Electronic component mgt. EDA into PLM Software component mgt. SW into PLM Portfolio management product mix, variations, options Enterprise Design Production Service Copyright 2002 by CIMdata, Inc CIMdata is a registered trademark of CIMdata, Inc. Page 10
11 Key PLM Investment Programs (3 of 3) Major themes emerge to support expanded perspective Digital mfg. process definition & simulation Maintenance & support after sales service Requirement management customer desires Asset management managing facilities/assets Enterprise Design Production Service Copyright 2002 by CIMdata, Inc Summary What does this all mean to you PLM investments are enterprise-driven Companies continue to invest, and invest more Extended enterprise programs become real Product innovation theme is well-received Effective, committed competitors are expanding and providing new solutions Market consolidation is well underway Partnerships/alignments offer multiple opportunities Multiple key programs drive investments Copyright 2002 by CIMdata, Inc CIMdata is a registered trademark of CIMdata, Inc. Page 11
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