August 2, 2004

2PLM John Stark Associates

Volume 6 Number 26

Page 1 - Welcome Page 2 - Update Page 3 - News Page 4 - Brief lines

* Welcome * Welcome to this issue of 2PLM, an e-zine distributed every two weeks on a free subscription basis. This week's article, "The Road to PLM", is from Menno Huijben of Technia. * Feedback on previous PLM articles * First, though, some feedback from Jack Conaway about the articles in the July 5 and July 19 issues of 2PLM. "I agree with your conclusion about the extent of PLM in practice. A lot of what is described is Powerpoint-level wishful thinking. My opinion is that we are at the early adopter stage for PLM which will last several more years. Your example about the lack of mechanisms for retiring products is a good case in point. If we extend that thought across the entire lifecycle, even less companies have a rational go/kill process for product development and a portfolio management process for investing in the right products in the first place. To support a rational go/kill process, complex product programs should have standard stage-gate product development processes in place with metrics attached to all stages of development and testing as well as operational performance, financial benefits, customer satisfaction, etc. (i.e., the balanced scorecard for product lifecycles). If the product program fails badly to deliver the product to planned schedule, cost or performance metrics or to produce the planned market impact, this should trigger executive re-consideration based on the severity of the problem. Lack of these types of investment controls have caused massive overuns in R&D in the past and the inability of organizations to change direction in a timely manner as dictated by stiff competition. To be in a position to effectively invest in the right products in the first place (i.e., portfolio management), requires a several year history of well managed product development with performance management in place. This arms the executive team with the tools, rational targets, and accumulated learning to support good investment decisions rather than hunches. Government agencies such as NASA are poor examples of well managed product development. They are also increasingly at the mercy of contractors whose motivations are often to make product development less, rather than more, efficient. While they occasionally successfully manage the creation of very complex products, they have very little of the time, fiscal, customer and survival pressures forced by competition in a commercial market." Contact Jack Conaway Reply Jack's point about PLM being at the early adopter stage is interesting in view of recent events. Last week, Microsoft announced it would hand billions of dollars back to shareholders. The Nasdaq drifted as analysts speculated some software companies are no longer in a growth phase : markets for their software are saturated users have most of the functionality they need users don't want the cost and pain of upgrading to new releases offering no clear financial benefits However, in the PLM world, the story is different. The concept of Product Lifecycle Management is relatively new, although as has been mentioned elsewhere, some components of it (such as CAD, PDM, Configuration Management and Visualization) have been around for a long time. PLM is in its cradle, and there are decades of growth ahead. PLM's focus on the product is attracting increasing interest from business leaders. They've invested in all the software they need to track orders, deliveries, expenses, truck movements, customer's buying habits, costs, cost-cutting, headcount reduction, etc. Business leaders now want to focus their organizations on developing and maintaining great products and services that customers will buy. And that means a focus on PLM, in the 21st Century meaning of the term - the business activity of managing products across their lifecycles, from cradle to grave. With 2005 looking like a breakthrough year for PLM, now is the time to start planning next year's activities and making sure they are included in budgets. Many companies looking to benefit from implementation and use of PLM next year could benefit from a PLM Feasibility Study. Vendors looking to expand their presence in the PLM space in 2005 will be interested in our PLM Vendor Advisory Services. The new paradigm of PLM is likely to have a major impact on their business models. * The Road to PLM * Having recently become the proud owner of a portable GPS device for my hiking hobby, I had to familiarize myself with longitudes, latitudes and altitudes to find my position on a map. If three dimensions are enough to find your way around the world, I thought that three dimensions should also be enough to find the road to PLM. I suggest the three dimensions defining a PLM roadmap are: Completeness of Product Definition. How well, and to what extent, are the products documented, is know-how captured, is re-use facilitated, and are configurations of delivered and serviced products managed? Degree of Supported Business Processes. Which business processes are supported with PLM functionality? Size of Collaborative Network. How many people, business units, suppliers, partners, and customers are using the PLM system? The units of measure on these axis I would call 'capability levels'. Let's take 'Size of Collaborative Network' as an example. Close to the origin of our PLM solution space there will be 'Few PLM Users in a Local Department'. 'Many Happy PLM Users in the Extended Enterprise' would represent a high capability. The other two dimensions can be calibrated with e.g.: Completeness of Product Definition : Ranging from 'Vaulted CAD Models' to 'Complete Product Definition of all Products Designed and Delivered'. Degree of Supported Business Processes : Ranging from 'Design Processes' to 'Intellectual Capital Optimization', or 'GERM, Global Enterprise Resource Management' as proposed by Don Frank. Just as every country has its own geographical coordinate system (which it can relate to the global system), each company will have its own scales for the three dimensions, depending on its needs and overall PLM ambition. Some might argue that to define your global position the dimension of altitude is not really necessary, but it is often good to know how much higher you have to climb to reach your target. It's the same with the PLM dimension of 'Size of Collaborative Network'. In principle this will be defined by the processes (and the people working in them) and the transactions required to manage the product definition. As well here, it is just good to know how large a user community we are aiming for. Note that I did not propose a 'Functionality' dimension for the PLM roadmap, with capabilities like 'DM, CM, Workflow, …'. It seems to me that this is another coordinate system. One that is only understood by a (very) small group of people in the enterprise. For this reason it is not suitable for use in communicating and selling a PLM solution to Senior Management. When I decide I want to hike from A to B, I first check my position on the GPS, then type in the coordinates for my point B, and then select some waypoints (known GPS points along the way) to build my route. There are always different routes possible, and I select the one that is most appropriate for me, depending on whether that day I prefer the shortest route, the easiest to walk, or the one with the most beautiful scenery. When defining your PLM roadmap, you have to make similar observations and decisions. First, you have to know where you are: what are the current capabilities? Then you define your vision: what are the desired capabilities? Finally, you need to think hard how to get there, and what are the criteria to optimize the route. You can choose a PLM track that starts easy, collects benefits and builds know-how for the more difficult parts that will come later, or you can start with a more challenging approach, knowing it will become easier once this is done. An organization has to define its own roadmap, bearing in mind that everybody should know where we are going and how we are planning to get there. In my GPS I can select waypoints where I will set up camp or have a break. The corresponding intermediate points in a PLM roadmap are actually the Releases, as I discussed in my previous article. Perhaps this is taking my metaphor too far, but there are no short cuts with PLM. You have to make sure that the trip is rewarding for all, at least most of the time. A rewarding trip means that there is business value created on the way, and not only at the end. So, don't get lost this summer. I know I won't. For questions and comments, please contact me by mail or call +358 424 7221. Menno Huijben is a consultant at Technia, a leading supplier of PLM solutions in the Nordic countries. PLM articles Thanks to readers for informing us of articles about PLM in other publications: Is PLM software the real deal? by Jeffrey Rowe in Advanced Manufacturing Making A Pitch For PLM by John Teresko in Industry Week PLM: The Means of Production by Debra D'Agostino in CIO Insight Product Life-Cycle-Management Market Ramps Up by Beth Bacheldor in Information Week The Meaning of Life by John Dwyer in The Manufacturer

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Download AutoVue from Cimmetry Systems Reference Section Follow the link for books in the Product Lifecycle Management Library Configuration Management .. Product Data Management CATIA .. MicroStation .. Pro/ENGINEER .. Six Sigma .. Unigraphics The World of Product Lifecycle Management Follow the links for : Vendors in the PLM World. Latest additions/modifications : Assyst Bullmer, eQuorum, Policy Technologies, RightValue, Vistagy. PLM service providers. Latest additions/modifications : Coensys, Entys Technologies, SOMA Systems. General Interest Innovation Management Engineering Change Management Managing PDM in a changing environment Principles of Good Product Development 2PLM Media Sheet Advertisers of PLM-related systems and solutions. Read the 2PLM Media Sheet. Find out how to reach more than 30,000 customers.

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* Corporate * Bentley Systems, Inc. announced it has acquired the AXSYS integrated process engineering solution product line from Aspen Technology, Inc. Details Microsoft Corp. announced that the company will pay a one-time special dividend of $32 billion, subject to shareholder approval. Details * Financial * Ariba, Inc. announced its results for the quarter ended June 30, 2004. Revenues for the third quarter of fiscal 2004 were $53.0 million, as compared to $56.6 million for the third quarter of fiscal 2003. Details Cadence Design Systems, Inc. announced total revenue for the second quarter of 2004 of $287 million compared to $277 million in the same period last year. Details Dassault Systemes reported financial results for the second quarter and six months ended June 30, 2004. Total revenue increased 6% to Euro 192.5 million. Details EDS reported second quarter 2004 revenue rose 4 percent to $5.24 billion from $5.06 billion in the year-ago quarter. Details FileNet Corporation announced financial results for its second quarter ended June 30, 2004. Total revenues for the second quarter of 2004 were $94.1 million compared to total revenues of $87.1 million for the same period in 2003. Details Geometric Software Solutions announced consolidated revenue for the quarter ended 30th June 2004 increased by 54% to Rs. 369.87 million as compared to the corresponding quarter last year. Details Hummingbird Ltd. reported its unaudited consolidated results for the third quarter ended June 30, 2004. Sales for the quarter ended June 30, 2004 were $56.2 million representing a 16.9% increase from the quarter ended June 30, 2003. Details Intergraph announced financial results for its second quarter ended June 30, 2004. Revenue for the quarter was $138.4 million, an increase of 8.6% from $127.3 million reported in the second quarter of 2003. Details i2 Technologies, Inc. announced results for its second quarter, ended June 30, 2004. Total revenue for the second quarter was $111 million, as compared to $84 million in the previous quarter. Details MAPICS, Inc. announced results for its third fiscal quarter ended June 30, 2004. Total revenue was $41 million compared to $47 million in the year ago quarter. Details MatrixOne, Inc. announced results for its fourth quarter and fiscal year ended July 3, 2004. For the fourth quarter ended July 3, 2004, total revenues were $30.0 million, compared to $26.3 million in the same period last year. Details Mentor Graphics Corporation announced second quarter revenue grew 8% over the year ago quarter. Details Noran Engineering, Inc. announced that its first two quarter earnings for 2004 were a record 187% over the same period last year. Details PTC reported revenue totaling $168.4 million for the third quarter ended July 3, 2004, up 2% from $165.2 million for the same period last year. Total Windchill revenue in the third quarter grew 12% sequentially to $46.8 million, from $41.7 million in the second quarter. Details SAP AG announced its preliminary financial results for the second quarter and six months ended June 30, 2004. Total revenues were Euro 1.8 billion, an increase of 9% compared to 2003. Details SEAL Systems announced incoming orders in the first half year of 2004 resulted in a new peak of incoming orders of 2.3 million Euro. Details Sun Microsystems, Inc. reported results for its fiscal fourth quarter and full fiscal year, which ended June 30, 2004. Revenues for the fourth quarter grew to $3.110 billion, an increase of 4.3 percent as compared with $2.982 billion for the fourth quarter of fiscal 2003. Details Tecnomatix Technologies Ltd. announced its financial results for the second quarter ended June 30, 2004. Revenues for the second quarter of 2004 were $24.2 million, compared to $20.2 million for the second quarter of 2003. Details UGS announced financial results for the second quarter ended June 30, 2004. Revenue of US$ 236.2 million showed 11 percent growth over the same period a year earlier. Details * People * Affinnova, Inc. announced its new Vice President of Marketing, Michael Cassettari. Details CoCreate Software, Inc. announced the appointment of three regional directors of strategic alliances in the United States. Shanth Thyagarajan, Indrakanti Chakravarthy, and Craig Rode will fill the newly expanded roles. Details Visit Federation or ask for more information Manugistics Group announced that its Board of Directors has named Joe Cowan as its Chief Executive Officer. Details PTC announced it has named PTC executive William Berutti as senior vice president, corporate development. Details SAP AG announced that it has named Donna Troy as senior vice president of its global small and midsize business (SMB) initiative. Details VISTAGY, Inc. announced the addition of J. Britton ("Brit") Hutchins, CFA, to its management team as vice president of finance and administration. Details 3D Systems Corporation announced that it has named Assad Ansari to the position of Vice President Global Engineering, effective August 2, 2004. Details * Implementation * AVEVA announced that JANTESA, one of Venezuela's largest Engineering, Procurement and Construction (EPC) companies in the oil and gas arena, has implemented its VANTAGE Project Resource Management System. Details Agile Software Corporation announced that the KEIPER Group, a global tier-one supplier of automotive vehicle seat components has standardized on Agile PLM. Details Commerce One, Inc. announced a series of customer purchases of Commerce One's Supplier Relationship Management (SRM) solutions. Details Delmia Corp. announced that National Steel Car Ltd., of Hamilton, Ontario, has selected its IGRIP 3D Robotic Programming Solution for offline robotic programming and simulation of their blast-cleaning robots. Details Framework Technologies announced that Timex Corporation will expand its use of Framework's ActiveProduct solution from select North American locations to its worldwide product development organization. Details IFS announced the U.K. Ministry of Defence has selected Lockheed Martin UK as the prime systems integrator for the Joint Asset Management and Engineering Solutions first increment. Details Intergraph announced Haldor Topsoe selected the SmartPlant integrated engineering environment. Details Intergraph announced a contract from the United States Navy worth up to $45 million. Details MatrixOne, Inc. announced that Sony Ericsson Mobile Communications, a provider of mobile communications products, has selected the Matrix10 environment. Details SolidWorks Corp. announced that Lindner Traktoren has selected SolidWorks Office Professional 3D mechanical design software to design its tractors and commercial vehicles. Details SolidWorks Corporation announced that Robert Bosch Corporation is standardizing on SolidWorks Office Professional 3D mechanical design software for more than 200 manufacturing and support engineers in 21 plants around the world. Details Tecnomatix Technologies Ltd. announced that automotive Tier 1 supplier Hella will roll out eMPower MPM solutions from Tecnomatix across all of its manufacturing facilities worldwide. Details Tecnomatix announced that PSA Peugeot Citroen has selected Tecnomatix eMPower solutions and services for the final phase of its worldwide digital factory implementation. Details think3 announced that Michael Graves Design Group has made think3 its standardized technology partner to support its 35-person product design division. Details UGS announced that Fereng, the engineering company of group FERBER - a textile machinery manufacturer based in Italy - has signed an agreement to implement UGS's Teamcenter and NX products. Details * Developments * AVEVA announced the release of VANTAGE Plant Design Review 6.2. Details Cadence Design Systems, Inc. introduced a new release of its Cadence Allegro system interconnect design platform. Details EMC Corporation announced the new EMC Documentum Content Storage Services. Details eQuorum Corporation announced the availability of ImageSite version 6.0, a major update to its Web-based engineering document management software solution. Details FileNet Corporation announced general availability of the latest release of its FileNet P8 architecture, FileNet P8 3.0. Details Immersive Design, Inc. announced that its flagship product, IPA v8.0, supports SolidWorks 2005 3D mechanical design software. Details Okino Computer Graphics announced the availability of updated native AutoCAD DWG 2005 import support in all of its version 4.1 PolyTrans, NuGraf, PolyTrans-for-3dsmax and PolyTrans-for-Maya software programs. Details Okino Computer Graphics announced the validation and availability of its PolyTrans, NuGraf, PolyTrans-for-3dsmax and PolyTrans-for-Maya programs with SolidWorks 2005 support. Details Product Sight announced the release of PSLE V4.5 for the Product Sight Lifecycle Environment. Details RealityWave Inc. announced the immediate availability of version 3.7 of their VizStream Enterprise Platform. Details Tailor Made Software, Ltd. announced the availability of CADViewer Release 8. Details UGS announced NX Simulation Process Studio - enabling users to automate repetitive digital simulation tasks while leveraging specialist knowledge and best practices. Details 3D Systems Corporation announced that it commenced shipment of the InVision HR 3-D printer. Details 3D Systems Corporation announced that it has introduced a new Selective Laser Sintering (SLS) system - the Sinterstation HiQ SLS system. Details 3D Systems Corporation announced the availability of Bluestone SL material, the first commercially available engineered nano-composite resin for SLA (stereolithography) systems. Details * Relationships * Aras Corporation announced the addition of systems integrators usb, GmbH and Lifecycle Solutions, Inc. as strategic alliance implementation partners. Details Autodesk, Inc. announced that it is working with McLaren Software, an Autodesk development partner, to ensure that design information can be used, shared, and managed more easily across the enterprise with the DWF file format. Details Autodesk, Inc. announced that partner momentum is rapidly increasing for Autodesk Inventor Series design solutions. Details Cadopolis.com Ltd. announced that CADAddOn.com joined Cadopolis.com to sell AutoXlsTable. Details CoCreate Software announced that Concurrent Systems Inc. (CSI) has upped its sales of CoCreate licenses by 163% compared to the same period last year. Details Informative Graphics Corporation announced that it has reached a technology partnership agreement with McLaren Software. Details InnovMetric Software announced that it has recently entered into an agreement with Cairnhill Metrology, headquartered in Singapore, to distribute PolyWorks in the East-Asian market. Details Intergraph Corporation and MRO Software Inc. announced an alliance agreement to provide integration solutions that improve the lifecycle management of process manufacturing and power plant assets. Details itelligence AG announced that SAP has appointed itelligence AG, 'Special Expertise Partner mySAP Product Life-Cycle Management'. Details Seal Systems : The Digital Paper Factory LightWork Design, announced that Lighting Technologies Inc. has licensed LightWorks for use within their lighting design and analysis software - Lumen Designer. Details PROSTEP AG announced it has formed a new partnership with gedas. Details PROSTEP AG announced that Dassault Systemes has certified the integration of the PROSTEP product suite OpenPDM with CATIA V5 as the official partner product: 'OpenPDM CATIA V5 Connector'. Details Silicon Graphics and YottaYotta announced an agreement that will enable SGI Professional Services to resell and support the YottaYotta NetStorager System. Details Solass announced a partnership with Epistemics, whereby Solass will use and deploy the Epistemics PC Pack product suite. Details UGS and software developer IMSI announced that IMSI will integrate component technology from UGS's D-Cubed subsidiary into its TurboCAD Professional software. Details UGS announced that its recently acquired D-Cubed subsidiary has reached an agreement with French software developer Sescoi International enabling Sescoi to integrate D-Cubed's component software into its WorkNC-CAD application. Details Verity Inc. and Proxicom Inc. announced a strategic partnership to provide integration of Verity K2 Enterprise advanced search and classification technologies with Proxicom's Healthcare and Life Sciences solution offering. Details * Other * Alibre Inc. announced it is now offering the Alibre Design PRO Pack, a new ten-license workgroup bundle of Alibre Design Professional. Details Arena Solutions, Inc. announced it was honored with the prestigious Hottest Companies of 2004 award from Start Magazine. Details Bentley Systems, Inc. announced the availability of its ETS Resource Center, the source for online learning from Bentley. Details Cyon Research Corporation announced that COFES2005 : The Congress on the Future of Engineering Software will take place at the Scottsdale Plaza Resort, Scottsdale, Arizona, April 14 - 17, 2005. Details Delcam announced that the use of Delcam's Power Solution CADCAM software has helped French mould manufacturer Moulin improve its quality and reduce its delivery times. Details GlobalSpec announced it has been recognized with the InfoCommerce Group's Model of Excellence Award. Details GlobalSpec's Third Annual Industrial Indicator Survey shows U.S. users of its Engineering Search Engine have gone from hopeful to bullish in viewing the year ahead. Details Keytech announced that ProfiDB has received the Microsoft certification "Verified for Windows Server 2003". Details Moldflow Corporation announced Moldflow Plastics Advisers (MPA ) 7.0 is now available in simplified Chinese. Details MSC.Software Corp. announced the establishment of a new EMEA (Europe, Middle-East and Africa) Regional Development Center for MSC.Nastran. Details The PLM Interest Group (PLMIG) announced that in its first six months of operation it achieved its objectives, and now expects to exceed targets for the first year. Details Product Sight announced it has become the first new vendor to meet the stringent upgraded requirements for certification by The Institute of Configuration Management. Details Proficiency announced that the Company ranked among the 2004 Supply and Demand Chain Executive 100. Details QAD Inc. announced it has been named by START Magazine editors to the roster of "Hottest Companies of 2004" in the magazine's July issue. Details RealityWave Inc. announced the opening of its Seattle, WA., satellite office. Details SensAble Technologies, Inc. announced that the company has lowered the U.S. MSRP for its PHANTOM Omni Developer Kit. Details 3D Systems Corporation announced that, as part of the implementation of its long-term business strategy, the Company has begun to engage selected design and manufacturing companies to assemble its equipment portfolio. Details

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