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* Welcome * Welcome to 2PLM, an e-zine distributed about every two weeks. This issue includes :
by Brad Goldense and Ervin Kule In the July 14, 2008 issue of 2PLM we highlighted recent research on product development and innovation processes, tools and top corporate metrics by Goldense Group, Inc. In this issue we present the second in a series of six articles, which focuses on results in the area of "Innovation Environment." In the next issue we will look at results on "Innovation Processes." The survey investigated the Innovation Environment in corporations. Individual questions centered on corporate strategies in innovation, the amount of importance given, the amount of training, and the degree of investment in innovation. Replies to GGI's 2008 Product Development Metrics Survey were received from 209 companies across a range of industries including industrial and medical products, aerospace, defense, electronics, chemicals, and pure software companies. Across the spectrum of corporate strategies, given the buzz innovation has received for the last twenty years, we see that most companies stay to the safe middle as an "Innovator-Extender" or "Balanced" strategy company. Only a very small portion of companies identify themselves as pure "Innovators," 5 percent. Innovator-Extender companies typically create some type of next generation product, a true innovation, and then make derivatives of the product to extend the lifecycle to achieve maximum incremental sales revenues and profits. As the product lifecycle nears an end, Innovator-Extender companies create the next generation product to replace their prior product line and enter a new lifecycle. The Balanced companies, on the other hand, typically have a large variety of products in process at any point in time ranging from largely innovative to largely mundane. They then typically incrementally enhance all the products to extend their product lifecycles. About 20% of companies are pure "Followers." They wait until others invent products and then they enter the market with a "better value" product. The importance of innovation is rising. Almost 90 percent of companies believe innovation will be "more" or "much more" important in the next five years than it has been in the past decade. Considering the importance of innovation, it's striking that the responses for innovation training were so mundane. Only 47 percent responded that the training will increase "more" or "much more," with the majority stating that it's the "same" or "less." This is in stark contrast to the Six Sigma, Lean, Agile, and other initiatives of the past decade when training and skill development were the means to the end. Planned investment in innovation tools and techniques is more aligned, with 76 percent responding that there will be "more" or "much more" investment. These findings imply management plans to buy its way to innovation versus develop its way. In summary, the need for innovation will stay as a top priority for a number of years. It seems to the research team at GGI that more emphasis should be given to training and the development of innovative skills. One cannot buy innovation indefinitely. For more information about GGI's 2008 Product Development Metrics Survey, the research description and the available reports go to GGI's website. To purchase reports with text and/or graphical analysis of the results, go to http://www.goldensegroupinc.com/cgi/catalog.cgi?display_p355. Bradford L. Goldense is President and CEO, Goldense Group, Inc. Ervin A. Kule is Manager of Market Research, Goldense Group, Inc. 
* Business Processes: Engineering, Manufacturing and Sales Issues * by Scott Cleveland Recently, I was reading a White Paper about contract manufacturers. Since everything they manufacture is a custom product, they have unique issues. However, some of their issues may exist in your company as well. Their primary challenge is achieving effective communications between departments which traditionally function independently - Sales with Engineering, and Engineering with Manufacturing. Let's start with some Engineering issues:
And now some Manufacturing issues:
Our Thoughts . . . I believe that most companies understand their change process and I believe that they know that this is the most complex and expensive process in their organization. I also believe that most companies understand there are problems surrounding their sales and quote process. And, I believe that most companies have no idea how much this is costing them in their relationships with their customers and in time (dollars). Think of the (daily/monthly) frustrations that you endure. My take. On one hand, I see many companies facing these issues regularly and on the other, I don't see much attention ($) being paid to resolve them. Your Thoughts . . . Are the issues above similar to yours? What would you add to the list? Scott Cleveland is VP Sales & Marketing, Ingenuus Software. 
* PLM North America 2008: How far through the PLM adoption process are you? * PLM North America is the conference and networking event that can help enable you and your company to satisfy the relentless pressure to innovate and bring the right products, to the right market - faster. This three day gathering of cross-industry professionals taking place from 13th - 14th October 2008 at the World Golf Village, St Augustine, Florida, will be made up of keynote conference sessions and interactive workshops run by leading solution providers covering the length and breadth of the PLM spectrum. Use the market experience of the following cross-industry specialists as they reveal their experiences of adopting PLM within their organization. Terry Kline, Global Product Development Process Information Officer, General Motors Corporation reveals how GM has implemented a successful worldwide PLM strategy, and offers guidance on how you can improve every aspect of the way you build your products to become best in class. Paul M. Bevilaqua, Chief Engineer, Advanced Development Projects, Lockheed Martin demonstrates why in order to lessen the risk of product failure, that all designs should be managed from the "conceptual phase" in the context of their F-35 Joint Strike Fighter. Huw Evans, R&D Information Director, HPC, Unilever advocates PLM as the "path to growth" for your organization, outlining what it has brought to Unilever in terms of sharing information, implementing improved product procedures and workforce unity. Warren Siecke, IT Program Manager, Product and Planning, The Timberland Company, highlights why PLM should be connected with your wider business strategy to manage product design, the product portfolio and the supply chain. He also explains why you can leverage PLM to enhance business processes and mitigate risk. View the full program. Reserve your place for the special price of US$1,995 quoting the booking code STARK1 or call Laurence Allen on +44 207 202 7560. 
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