Upload
nirmala-last
View
2.059
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Current Trends in the PLM Market
Thursday, April 12, 2007Penn Club, New York
Alan Mendel, Managing Partner, Focus 20, LLC
Copyright © 2007 by Focus 20, LLC© 2007 Gerson Lehrman Group Inc., All Rights Reserved
Council Member Biography
Alan Mendel, Managing Partner at Focus 20, LLC, is a seasoned international business professional with nearly two decades of experience working with small to large fortune 1000 companies. Mr. Mendel is a recognized worldwide authority on methodologies and technology solutions for product lifecycle management (PLM) throughout the extended enterprise and supply chain. Mr. Mendel has consulted internationally with organizations from many industries and solution/technology suppliers on the development, use, implementation, and market for solutions to address the product lifecycle. He has worked with PLM suppliers to define their product and service offerings, business and marketing plans, establish distribution channels and partnerships, and identified potential acquisitions and merger opportunities. Prior to founding Focus 20 in 2001, Mr. Mendel spent eight years as an industry analyst and consultant establishing the internationally recognized PLM consulting firm, CIMdata, Inc.
Copyright © 2007 by Focus 20, LLC© 2007 Gerson Lehrman Group Inc., All Rights Reserved
Table of Contents
► What is the future of the PLM market?
► What are the key customer market drivers?
► How are the major players positioning themselves?
► Can we expect more consolidation/partnerships in the near future?
April 12, 2007 Copyright © 2007 by Focus 20, LLC 4F ocus 20
Evolution of PLM MarketEvolution of PLM Market
Product Data
Image/DocumentManagement
View &Markup
PLM
Simulation& Mock up
EnterpriseApplicationIntegration
Web Portals
Product Realization
Project Mgmt
RequirementsTraceabilityManagement (RTM)
1985+1990+
2000+
1995+
Data MgmtFile Vaulting
Basic WorkflowMulti-CAD
BOMChange Mgmt
Configuration MgmtProduct Structure Mgmt
Process MgmtWeb Architectures
EAI ToolsApplications
Solutions &DMU Env
2005+
NDPI
Portfolio MgmtInnovationMgmt
Analytics
Mechatronics
EAI = Enterprise Application Integration
EDMPDM
CPC
April 12, 2007 Copyright © 2007 by Focus 20, LLC 5F ocus 20
PLM Market ComparisonPLM Market Comparison
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2004 2005 2006 2007 2008 2009
Mil
lio
ns
Customer Mgmt
Human Capital Mgmt / HR
Procurement
Core ERP
CAD
PLM
Supply Chain Mgmt
Source: Data from AMR Research, 2005 PLM - $7.3 billion market by 2009PLM - $7.3 billion market by 2009
April 12, 2007 Copyright © 2007 by Focus 20, LLC 6F ocus 20
Enterprise Application 5yr CAGREnterprise Application 5yr CAGR
SCM5%
PLM13%
CAD5%
ERP3%
Procurement9%
HR7%
CRM6%
Source: 2004-2009, Data from AMR Research, 2005 * CAGR: Compound Annual Growth Rate
April 12, 2007 Copyright © 2007 by Focus 20, LLC 7F ocus 20
PLM Major MessagingPLM Major Messaging
CollaborationCollaboration
Product Portfolio ManagementProduct Portfolio Management
Program/Project ManagementProgram/Project Management
MechatronicsMechatronics
ComplianceCompliance
New Product Introduction (NPI)New Product Introduction (NPI)
Product InnovationProduct Innovation
Digital ManufacturingDigital Manufacturing
April 12, 2007 Copyright © 2007 by Focus 20, LLC 8F ocus 20
PLM Future DirectionsPLM Future Directions
Process InnovationProcess Innovation
Business Innovation (PLM-ERP-SCM…)Business Innovation (PLM-ERP-SCM…)
Mechatronics (expanded)Mechatronics (expanded)
Process PLMProcess PLM
Industry Specific PLMIndustry Specific PLM
Digital Manufacturing (expanded - Factory)Digital Manufacturing (expanded - Factory)
Business Application ExpansionBusiness Application Expansion
PLM CostingPLM Costing
April 12, 2007 Copyright © 2007 by Focus 20, LLC 9F ocus 20
PLM Market Forecast PLM Market Forecast (non-tools)(non-tools)
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Mil
lio
ns
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Adapted from CIMdata, Inc. PLM Market Press Release, April 2006 cPDm Market subsection of CIMdata’s PLM Market (includes Tools) cPDm equivalent to AMR Research PLM non-CAD Market
April 12, 2007 Copyright © 2007 by Focus 20, LLC 10F ocus 20
PLM Mid-MarketPLM Mid-Market
Represents 49% of PLM software market in 2005 ($786M)Represents 49% of PLM software market in 2005 ($786M)11
PLM mid-market adoption driversPLM mid-market adoption drivers22
Demand for shorter product lifecycles (49%)Demand for shorter product lifecycles (49%)Globalization of markets and/or supply chains (43%)Globalization of markets and/or supply chains (43%)More complex design or distributed design environment More complex design or distributed design environment (34%)(34%)More complex products (31%)More complex products (31%)
Top strategic actions for SMEs to improve product developmentTop strategic actions for SMEs to improve product development22
Improved product data management (40%)Improved product data management (40%)Improved project/program/product development execution Improved project/program/product development execution (39%)(39%)Collaborative design (35%)Collaborative design (35%)Project Collaboration (29%)Project Collaboration (29%)
1 Source: AMR Research, 20062 Source: AberdeenGroup, March 2006SME = Small & Mid-Sized Enterprise
April 12, 2007 Copyright © 2007 by Focus 20, LLC 11F ocus 20
AgendaAgenda
PLM Market Past and FuturePLM Market Past and Future
Key PLM Market DriversKey PLM Market Drivers
Major Market Players & PositioningMajor Market Players & Positioning
Market Dynamics Moving ForwardMarket Dynamics Moving Forward
April 12, 2007 Copyright © 2007 by Focus 20, LLC 12F ocus 20
Executive Interest in PLM GrowsExecutive Interest in PLM Grows
Business Environment Business Environment Economic challenges, changing global security, globalizationEconomic challenges, changing global security, globalizationIncreased competition, limited capital funding, product Increased competition, limited capital funding, product customizationcustomizationOutsourcing scope widening, consolidation, and market Outsourcing scope widening, consolidation, and market shakeoutshakeout
Enterprise ObjectivesEnterprise ObjectivesDrive short-term profitability and cash reservesDrive short-term profitability and cash reservesIncrease market share and product demandIncrease market share and product demandStrengthen customer satisfaction and loyaltyStrengthen customer satisfaction and loyaltyIncrease quality, reduce costs, and speed time to marketIncrease quality, reduce costs, and speed time to marketManage increased product complexityManage increased product complexityOptimize disparate supply chainsOptimize disparate supply chainsDesign, build, and maintain anywhere and anytimeDesign, build, and maintain anywhere and anytimeBuild end-to-end processes and systemsBuild end-to-end processes and systems
April 12, 2007 Copyright © 2007 by Focus 20, LLC 13F ocus 20
PLM Business FocusPLM Business Focus
Drives, facilitates, and captures innovationDrives, facilitates, and captures innovationFacilitate innovation through process enablement and Facilitate innovation through process enablement and reduction in non-value-added activitiesreduction in non-value-added activities
Manages complete product lifecycle Manages complete product lifecycle Captures and maintains corporate intellectual assetsCaptures and maintains corporate intellectual assetsEstablishes product collaborative teams across the Establishes product collaborative teams across the enterprise and throughout supply chainsenterprise and throughout supply chainsEstablishes a common integrated product definition and Establishes a common integrated product definition and change management environment – “single version ofchange management environment – “single version ofthe truth”the truth”Integrates with value applications and enterprise systemsIntegrates with value applications and enterprise systems
Accelerates New Product Introduction (NPI) processAccelerates New Product Introduction (NPI) processBrings together information, processes, and peopleBrings together information, processes, and peoplePlan, manage, and execute programs and resources more Plan, manage, and execute programs and resources more efficiently and effectivelyefficiently and effectively
April 12, 2007 Copyright © 2007 by Focus 20, LLC 14F ocus 20
Major PLM Market DriversMajor PLM Market Drivers
Increased focus on innovation (products, processes and business)Increased focus on innovation (products, processes and business)
Collaborative distributed teams and disparate applicationsCollaborative distributed teams and disparate applications
Process consolidation across development teams / supply chainProcess consolidation across development teams / supply chain
Intellectual asset management, leverage digital assets (CAx), MRO…Intellectual asset management, leverage digital assets (CAx), MRO…
Project, program and portfolio managementProject, program and portfolio management
Global quality & compliance standards (e.g., ISO 9001, RoHS, Tread Global quality & compliance standards (e.g., ISO 9001, RoHS, Tread Act, WEEE ELV, and RoHS)Act, WEEE ELV, and RoHS)
New Product Development and Introduction (NPDI)New Product Development and Introduction (NPDI)
Integration with enterprise applications (ERP, CRM, SCM, Financial …)Integration with enterprise applications (ERP, CRM, SCM, Financial …)
Best of Breed verses ERP integrated PLM solutionsBest of Breed verses ERP integrated PLM solutions
Mechatronics (mechanical, electronics, and software)Mechatronics (mechanical, electronics, and software)
Mid-market PLM opportunities, Open Source entries, on Demand/SaaSMid-market PLM opportunities, Open Source entries, on Demand/SaaS
Industry specific PLM applications (apparel, MRO, Automotive, A&D…)Industry specific PLM applications (apparel, MRO, Automotive, A&D…)
Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act, End-of-Life vehicles (ELV) for automotive, Waste Electrical and Electronic Equipment (WEEE), Restriction of Hazardous Substances (RoHS), Maintenance Repair & Overhaul (MRO), Aerospace & Defense (A&D), Software as a Service (SaaS), Computer Aided applications (CAx)
April 12, 2007 Copyright © 2007 by Focus 20, LLC 15F ocus 20
AgendaAgenda
PLM Market Past and FuturePLM Market Past and Future
Key PLM Market DriversKey PLM Market Drivers
Major Market Players & PositioningMajor Market Players & Positioning
Market Dynamics Moving ForwardMarket Dynamics Moving Forward
April 12, 2007 Copyright © 2007 by Focus 20, LLC 16F ocus 20
PLM Vendor Positions, 2006PLM Vendor Positions, 2006
Source: Data from AMR Research, 2006
Other48%
UGS11%
SAP9%
Dassault9%
PTC6%
Telelogic4%
MSC Software3%
Agile Software3%MatrixOne
3%Geber
Technology2%
LectraSystems
2%
April 12, 2007 Copyright © 2007 by Focus 20, LLC 17F ocus 20
PLM Tier 1 SuppliersPLM Tier 1 Suppliers
UGSUGSCAD/CAE/CAM/DMU/PLM solution providerCAD/CAE/CAM/DMU/PLM solution provider
Dassault Systémes/IBM (including recently acquired MatrixOne)Dassault Systémes/IBM (including recently acquired MatrixOne)CAD/CAE/CAM/DMU/PLM solution providerCAD/CAE/CAM/DMU/PLM solution provider
PTCPTCCAD/CAE/CAM/DMU/TechPub/PLM solution providerCAD/CAE/CAM/DMU/TechPub/PLM solution provider
Agile SoftwareAgile SoftwareDMU/PLM solution providerDMU/PLM solution provider
SAPSAPIntegrated enterprise solution providerIntegrated enterprise solution provider
IFS (International Fiber Systems)IFS (International Fiber Systems)Integrated enterprise solution providerIntegrated enterprise solution provider
OracleOracleIntegrated enterprise solution providerIntegrated enterprise solution provider
NECNECSystems developer and integrator (Japan-focused)Systems developer and integrator (Japan-focused)
Digital Mock up (DMU), Computer Aided Design (CAD), Computer Aided Engineering (CAE), Computer Aided Manufacturing (CAM), Technical Publications (TechPub)
April 12, 2007 Copyright © 2007 by Focus 20, LLC 18F ocus 20
PLM “Best-of-Breed”PLM “Best-of-Breed”
UGSUGSDassault SystémesDassault Systémes& IBM (incl. MatrixOne)& IBM (incl. MatrixOne)
PTCPTCAgile SoftwareAgile SoftwareSAPSAPIFSIFSOracleOracleNECNEC
Typically thought of as Typically thought of as “best-of-breed” PLM suppliers “best-of-breed” PLM suppliers
based on their focus on based on their focus on engineering, product engineering, product
development applications, and development applications, and processes – Major Suppliersprocesses – Major Suppliers
April 12, 2007 Copyright © 2007 by Focus 20, LLC 19F ocus 20
PLM Integrated Enterprise PLM Integrated Enterprise SolutionsSolutions
UGSUGSDassault Systémes/IBM (includes MatrixOne)Dassault Systémes/IBM (includes MatrixOne)PTCPTCAgile SoftwareAgile SoftwareSAPSAPIFSIFSOracleOracleNECNEC
Typically thought of as “Integrated Typically thought of as “Integrated Enterprise Solutions” suppliers, Enterprise Solutions” suppliers,
including PLM, based on their common including PLM, based on their common platform, data, and applicationsplatform, data, and applications
April 12, 2007 Copyright © 2007 by Focus 20, LLC 20F ocus 20
PLM Implementation OptionsPLM Implementation Options
PLM from an independent PLM supplierPLM from an independent PLM supplier
PLM from your enterprise solutions supplierPLM from your enterprise solutions supplier
PLM hybrid approachPLM hybrid approach
April 12, 2007 Copyright © 2007 by Focus 20, LLC 21F ocus 20
AgendaAgenda
PLM Market Past and FuturePLM Market Past and Future
Key PLM Market DriversKey PLM Market Drivers
Major Market Players & PositioningMajor Market Players & Positioning
Market Dynamics Moving ForwardMarket Dynamics Moving Forward
April 12, 2007 Copyright © 2007 by Focus 20, LLC 22F ocus 20
PLM Market ConsolidationPLM Market Consolidation
UGS UGS (Acquired by Siemens AG, 2007)(Acquired by Siemens AG, 2007)
Acquired SDRC, EAI, Slate…Acquired SDRC, EAI, Slate…
Dassault SystémesDassault Systémes
Acquired MatrixOne 2006Acquired MatrixOne 2006
AxonAxon
Acquires ZytalisAcquires Zytalis
TataTata
Acquires INCATAcquires INCAT
April 12, 2007 Copyright © 2007 by Focus 20, LLC 23F ocus 20
PLM Functional OverlapPLM Functional Overlap
ERPCRM
SCM
SRM
PLM
April 12, 2007 Copyright © 2007 by Focus 20, LLC 24F ocus 20
PLM Overlapping TrendPLM Overlapping Trend
Business focusBusiness focus
Share many common Share many common business objectives and business objectives and benefitsbenefits
Synchronization and Synchronization and integration are important integration are important to achieve benefitsto achieve benefits
ProcessesProcesses
Some overlap, some butt, Some overlap, some butt, some must climb walls, some must climb walls, some are duplicated, etc.some are duplicated, etc.
DataData
Much is in commonMuch is in common
Much gets duplicatedMuch gets duplicated
Much gets manually Much gets manually reenteredreentered
TechnologyTechnology
Software technology Software technology commoncommon
Architectures grow more Architectures grow more similarsimilar
Functional components Functional components similar/duplicatesimilar/duplicate
April 12, 2007 Copyright © 2007 by Focus 20, LLC 25F ocus 20
Consolidation Trend for PLMConsolidation Trend for PLM
PLM business objectives, benefits, focus, and PLM business objectives, benefits, focus, and applications overlap more with other enterprise applications overlap more with other enterprise application domainsapplication domains
Suppliers of enterprise applications have naturally Suppliers of enterprise applications have naturally expand their scope to incorporate the domain of PLMexpand their scope to incorporate the domain of PLM
Analysts also see and recognize this trend and have Analysts also see and recognize this trend and have adjusted their positioning and vision for PLM as they adjusted their positioning and vision for PLM as they look into the futurelook into the future
For example, Gartner, AMR Research, and IDCFor example, Gartner, AMR Research, and IDC
April 12, 2007 Copyright © 2007 by Focus 20, LLC 26F ocus 20
PLM Market SummaryPLM Market Summary
PLM market & investments continue to growPLM market & investments continue to growConsolidation expected to continue for Consolidation expected to continue for products and servicesproducts and servicesContinued business focus for PLM Continued business focus for PLM (innovation, NPI, quality, compliance…)(innovation, NPI, quality, compliance…)Overlapping capabilities with enterprise Overlapping capabilities with enterprise solutions yields continued market challengessolutions yields continued market challengesBest of Breed verses Integrated Solution Best of Breed verses Integrated Solution battle continues battle continues
ERP vendors business to lose?ERP vendors business to lose?
Copyright © 2007 by Focus 20, LLC© 2007 Gerson Lehrman Group Inc., All Rights Reserved
About GLG Institute
GLG Institute (GLGiSM) is a professional organization focused on educating business and investment professionals through in-person meetings. It is designed to revolutionize the professional education market by putting the power of programming into the hands of the GLG community.
GLGi hosts hundreds of Seminars worldwide each year.
GLGi clients receive two seats to all Seminars in all Practice Areas.
GLGi’s website enables clients to: ► Propose Seminar topics, agenda items and locations ► View and RSVP to scheduled and proposed Seminars ► Receive a daily briefing with new posts on your favorite tickers, subject
areas and from trusted Council Members ► Share Seminar details with colleagues or friends
Copyright © 2007 by Focus 20, LLC© 2007 Gerson Lehrman Group Inc., All Rights Reserved
Gerson Lehrman Group Contacts
Nick GoodmanVice PresidentGerson Lehrman Group850 Third Avenue, 9th FloorNew York, NY [email protected]
Christine RuaneSenior Product ManagerGerson Lehrman Group850 Third Avenue, 9th FloorNew York, NY 10022212-984-8505 [email protected]
Copyright © 2007 by Focus 20, LLC© 2007 Gerson Lehrman Group Inc., All Rights Reserved
IMPORTANT GLG INSTITUTE DISCLAIMER – By making contact with this/these Council Members and participating in this event, you specifically acknowledge, understand and agree that you must not seek out material non-public or confidential information from Council Members. You understand and agree that the information and material provided by Council Members is provided for your own insight and educational purposes and may not be redistributed or displayed in any form without the prior written consent of Gerson Lehrman Group. You agree to keep the material provided by Council Members for this event and the business information of Gerson Lehrman Group, including information about Council Members, confidential until such information becomes known to the public generally and except to the extent that disclosure may be required by law, regulation or legal process. You must respect any agreements they may have and understand the Council Members may be constrained by obligations or agreements in their ability to consult on certain topics and answer certain questions. Please note that Council Members do not provide investment advice, nor do they provide professional opinions. Council Members who are lawyers do not provide legal advice and no attorney-client relationship is established from their participation in this project.
You acknowledge and agree that Gerson Lehrman Group does not screen and is not responsible for the content of materials produced by Council Members. You understand and agree that you will not hold Council Members or Gerson Lehrman Group liable for the accuracy or completeness of the information provided to you by the Council Members. You acknowledge and agree that Gerson Lehrman Group shall have no liability whatsoever arising from your attendance at the event or the actions or omissions of Council Members including, but not limited to claims by third parties relating to the actions or omissions of Council Members, and you agree to release Gerson Lehrman Group from any and all claims for lost profits and liabilities that result from your participation in this event or the information provided by Council Members, regardless of whether or not such liability arises is based in tort, contract, strict liability or otherwise. You acknowledge and agree that Gerson Lehrman Group shall not be liable for any incidental, consequential, punitive or special damages, or any other indirect damages, even if advised of the possibility of such damages arising from your attendance at the event or use of the information provided at this event.