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Executing PLM Strategy in a Disruptive Business Climate

Executing PLM Strategy in a Disruptive Business Climate. Dr. Marc Halpern, P.E. Research Vice President Manufacturing Advisory Services. Global Volatility Demands Greater Product Lifecycle Management Focus. Changing Market Demographics. Environmental Stress.

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Executing PLM Strategy in a Disruptive Business Climate

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  1. Executing PLM Strategy in a Disruptive Business Climate Dr. Marc Halpern, P.E. Research Vice President Manufacturing Advisory Services

  2. Global Volatility Demands Greater Product Lifecycle Management Focus Changing Market Demographics Environmental Stress Source: Baker, Bloom and Davis (2011)n(voxeu.org) Economic Uncertainty Disruptive Technology 1

  3. Key Topics • What five business trends show greatest promise to address today’s challenges? • How is Product Lifecycle Management (PLM) evolving to support the emerging business trends? • Which priorities and practices enable the greatest chance for successful PLM implementations? 2

  4. Key Topics • What five business trends show greatest promise to address today’s challenges? • How is Product Lifecycle Management (PLM) evolving to support the emerging business trends? • Which priorities and practices enable the greatest chance for successful PLM implementations? 3

  5. 1. Incorporate Software to Deliver the Value of Manufactured Products Processors on Wheels Physical SoftwareHybrids Soft Products • 10 million lines of code • 50 ECUs • 30,000 calibration parameters • Four or more vehicle BUS systems • Software replaces mechanical HMIs • Unlimited virtual products on PCs and mobile devices • Virtualized physical products • Electromechanical human-machine interfaces

  6. 2. Employ Social Media to Accelerate Product Innovation – Networked Cocreation

  7. 3. Leverage Product Life Cycle Analytics to Continuously Learn and Improve Brand Value Customers pleased? Revenue as expected? On time? On budget? Meeting specs? Quality targets met? Ideation Concept Design Detailed Design Production Ramp-up Service/Support Retire Postretire Phases Knowledge and Content Reuse

  8. 4. Identify Opportunities for Products as Services to Produce New Revenue Streams Entertainment Tapes and DVDs Video streaming Automotive Car auction Zipcar renting Recreation Buying books E-readers

  9. 5. Implement Manufacturing 2.0 to Become More Agile and Fulfill Local Market Needs Degree of Contract Manufacturing Rate of NPDI Global Coordination Dynamic Multitier Collaboration ERP+ Manufacturing 2.0 Manufacturing SOA Supporting: Multiple Manufacturing Styles Demand-Driven Manufacturing Multienterprise Collaboration Orchestration of Multivendor Services User-Centric Interface User Implementation Mobile Workforce Sensor Networks Dynamic Single-Tier Collaboration SupplyNetworkDynamism Manufacturing 1.0 (MES) Multisite MES Static Internal Collaboration Product Mix Number of ManufacturingStyles Local Execution MTS ATO/ETO Single-Site(Owned) Multisite(Owned and Contracted) Multisite(Owned) - Product/Manufacturing Complexity

  10. Key Topics • What five business trends show greatest promise to address today’s challenges? • How is Product Lifecycle Management (PLM) evolving to support the emerging business trends? • Which priorities and practices enable the greatest chance for successful PLM implementations? 9

  11. PLM is More About Discipline, Process, and Culture Than Software PLM is a discipline for guiding productsand product portfolios from ideas through retirement to create the most value for businesses, their partners, and their customers

  12. PLM Addresses Product Costs and Revenue Cost-Reduction Enablers Revenue Growth Enablers COST CATEGORIES PLM SCM CRM ERP MES OPPORTUNITIES PLM SCM CRM ERP MES Material/part selection Identify New Selling Opps Production planning Differentiate Products Manufacturing Operations Diversify Product Sets Selling Access New Markets Service Increase Capacity Greatest Impact Notable Impact / Supporting Role Lower or no Impact

  13. PLM – Addressing the Global-Value Chain Design Define Supply Strategy Governance Planning Execution Post-Retire Manufacture Content Capture, Control, & Reuse Retire Profitable Supply Ramp-up Market Value Service & Support Product Portfolios Customer Needs Materials Sourcing Product-Process Design Product IP and Data Mgmt. SupplyNetwork Demand Insights Demand Data SupplyData 12

  14. Mapping Some Enabling PLM Application Classes to Five Business Trends 13

  15. expectations time Peak of Inflated Expectations Trough of Disillusionment Plateau of Productivity Technology Trigger Slope of Enlightenment Years to mainstream adoption: obsolete before plateau less than 2 years 2 to 5 years 5 to 10 years more than 10 years Hype Cycle for Manufacturing Product Life Cycle Management and Production, 2011 System Engineering Software Energy Management in Manufacturing Operations Intelligence SOA in Manufacturing Sustainable Design PLM MRO PLM Functionality Asset Performance Management Manufacturing Process Management Framework Product Cost Management Modeling, Simulation and Virtual Prototyping Synchronized Bills of Materials MES Applications CAD-Centric Design Data Management Enterprise Manufacturing Intelligence IT/OT Convergence in Manufacturing Process Analytical Technology Two-Tier ERP Strategy for Manufacturing Operations Process Data Historians Enterprise Asset Management Customer Needs Management Manufacturing Process Validation Cloud Computing in PLM and Manufacturing Value-Chain-Centric PDM PLM-Centric Team Collaboration Regulatory Compliance Functionality Within PLM Parts and Materials Search and Selection Formula/Recipe Management Factory Scheduling ISA-95 Integration Standards Product Portfolio and Program Management Simulation and Test Data Management Quality Management Systems Virtual Factories EH&S Applications LIMS As of July 2011

  16. PLM Market Dynamics Scope Oracle SAP Corporate and Back Office Aras, Selerant, Sopheon, other specialty PLM vendors,Microsoft Dassault Systemes, PTCSiemens Autodesk New Product Development Scale Small Enterprise Large Enterprise

  17. Key Topics • What five business trends show greatest promise to address today’s challenges? • How is Product Lifecycle Management (PLM) evolving to support the emerging business trends? • Which priorities and practices enable the greatest chance for successful PLM implementations? 16

  18. Gartner Survey Shows Manufacturers Invest Big in PLM Software and Services Industry Participation Estimated Spending on PLM Software per Deployment ($ Millions) 62 Participating Companies

  19. Best Practice PLM Deployments This research was conducted in collaboration with Satish Nambisan, Lally School of Management, Rensselaer Polytechnic Institute and Robert G. Fichman Carroll School of Management ,Boston College

  20. Five Top Suggestions for Manufacturers of Products with Embedded Software • Use marketing intelligence, requirements analysis, and systems engineering to define products • Prioritize supply chain collaboration for software development and compatibility • Plan for software demands that are appropriate for product service life • Start software development earlier in the product development cycle • Enable software development tools as part of value chain PLM SW application stack.

  21. Five Top Suggestions for Manufacturers of Recipe/Formula-based Products • Use marketing intelligence and “formulation architecture” to define products • Managing specifications should be the backbone that links production planning with product development • Prioritize supply chain collaboration for raw material quality and traceability • Invest in infrastructure that streamlines variant artwork and packaging for variant formulas/recipes • Use PLM to harmonize “equivalent items” in diverse material masters when multiple ERPs are active 20

  22. Summary • What five business trends show greatest promise to address today’s challenges? • 1) SW delivers product function, 2) Social networking supports innovation, 3) Business intelligence to improve continuously, 4) products as services, 5) manufacturing 2.0 • How is Product Lifecycle Management (PLM) evolving to support the emerging business trends? • Enterprise centric to value-chain centric, increasingly systems centric, greater accessibility through standards and “the cloud.” • Which priorities and practices enable the greatest chance for successful PLM implementations? • Align PLM and job performance metrics to business goals, engage business leaders, business operations, and IT, Configurational thinking across business and technical priorities 21

  23. Merci! Kiitos! Thank you! Danke! Gracias! !أشكركم Dank U! ! תודה Спасибо! Grazie! Tack! email: marc.halpern@gartner.com phone: 1-203-316-6894 22

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