August 4 2014
John Stark Associates
- Brief lines
* Welcome *
Welcome to 2PLM, an e-zine distributed about every two weeks. This issue includes :
by Killian Murphy
The PLM International Research Foundation (PLM-IRF) Proposal has generated an excellent response. Over 30 returns have been received from academic and research organisations around the world, containing new ideas and also confirmation of some existing views.
Various working groups have now been contacted, and responses from them are expected within the next week.
To align with this, the survey deadline has been extended to Friday the 8th of August. All of the questionnaire responses will be reviewed in Geneva, Switzerland from 12-14 August, and a summary of the results will appear in the following issues of 2PLM.
This means that if you have just returned from holiday, have no fear - there is still time to send us your own completed questionnaire to be included in the review.
If you are interested in participating, but haven't yet been contacted, please e-mail me at email@example.com.
* The Sophistication of Organic R&D Innovation Management Continues *
by Bradford L. Goldense
In the July 7, 2014 issue of 2PLM, the scope and focus of recent research on R&D Operating Environments, Organic Innovation, Open Innovation, Intellectual Property, and the Top Corporate Metrics used to measure R&D and Product Development was highlighted. The July 21 issue addressed R&D Operating Environments. In this third of a six part series, selected GGI findings on Organic R&D Innovation will be discussed. Organic Innovation is the ability of a corporation to invent and innovate from within, including the use of contracted personnel to supplement employee-equivalent responsibilities.
The study, entitled the "2014 Product Development Metrics Survey", was conducted by sending questionnaires to a wide range of companies developing products throughout North America. Participating companies had headquarters throughout the Americas, Europe, and Asia, but their response was for North American R&D-Product Development operations. Complete data sets were received from 200 companies. Consumer, industrial, medical, chemical, and automotive/vehicular products were the top respondent industries. Participants completed 31 questions across the five primary research subjects. The research period was September 2012 to October 2013. The results were published March 3, 2014 in a 138-page report. This research is statistically valid and provides a Margin Of Error for each research question.
Three Organic R&D Innovation areas were researched: Types of R&D Performed, R&D Processes for Pre-Product Development Innovation, and Product Development Processes. All three of these areas were researched thoroughly in our 2008 study enabling a pre/post great recession analysis.
Types of R&D Performed: Recognizing that R&D is a continuum, there are four basic categories of "R&D-Product Development" that can be logically culled out: Basic Research, Applied Research, Advanced Development, and Product Development. Corporate utilization of one or more categories depends on the industry and/or the company's product portfolio strategy. After an unprecedented corporate push for innovation, resulting in unprecedented growth in pre-product development activities between 2000 and 2008, the 2014 findings found no additional growth in pre-product development activities. This is actually good news and affirms that corporations are committed to innovation. In previous times of economic challenge, and this challenge being twice as long as the rest, funding and activities in these areas would have been structurally affected. One fifth of all companies still perform Basic Research. Half of all companies still perform Applied Research. Three-quarters of all companies still do Advanced Development. Just about all respondent corporations, as expected, have Product Development.
R&D Processes for Pre-Product Development Innovation: With the cross-industry growth of Basic Research, Applied Research, and Advanced Development, and its apparent staying power dating to our analyses in 2004, it was sure that "process-ware" for these activities was soon to follow. The Venn diagrams of these pre-product development areas overlap more greatly versus Product Development. As such, it could be foreseen that some of these activities could be done under a "general" process. And, compared to Product Development, there were sure to be many more variations on corporate pre-product development processes of innovation. Remember the days of the "R&D Sandbox?" For the most part, they are gone. While a third of the cross-industry participants do not yet have processes for pre-product development, the growth in the corporate formalization of these activities we identified in 2008 has continued throughout the great recession. Consistent with the "staying power" findings above, companies have continued to create process-ware to better organize these historically "new or newly focused" activities. There are some stages and gates to be sure. This is a back-handed positive for commitment. In 2014, the number of companies with dedicated documented processes for Applied Research increased four-fold to twenty percent. Companies with processes for Advanced Development rose to thirty-percent. Companies with a general or "combination" process rose to thirty-percent.
Product Development Processes: How many Product Development processes do you have? When Robert Cooper introduced Stage-GateŽ to the world in 1986, corporate product development processes and constructs began changing for most companies. Since that time the number of Product Development processes a company maintains, has gradually grown. North America is now approaching European program management approaches for documented Product Development processes. Perhaps this is the result of globalization and the leveling of corporate approaches. Perhaps this is the result of economic challenges driving better corporate organization of portfolios and projects. Perhaps it is the continued decrease in the cost of product development process software suites as they become mature and internet-based. Likely it is a combination. Companies with a single process decreased five percent in the past five years to a third. Companies with two and three processes remained level, at a third and fifteen percent respectively. Companies with four or more processes increased five percent to ten percent. About twenty percent of industry added a documented Product Development process to the suite of process-ware they maintained in 2008.
SUMMARY: While remaining level the past five years, corporate commitment to innovation withstood the onslaught of a double-long recession. The changes put in place the last fifteen years to increase innovation through pre-product development R&D remain structurally intact. A great many more companies across all industries now engage in these activities; not just the chemical, pharmaceutical, and life sciences industries. Staying power necessitates infrastructure. Process-ware and accounting/tracking systems lag the activities themselves, and take up to a decade to be available COTS. The growth in pre-product development process-ware, identified in 2008, has continued throughout the great recession. Software is becoming visible. Relatively speaking, Product Development processes were more stable. About twenty-percent of industry added a single-process. About seventy percent of North American companies now run with either one or two processes. Corporations reduced their portfolio risk during the past five years, but the infrastructure is growing to better manage risk in the future.
For more information about Goldense Group Inc.'s (GGI) R&D, Product Development, Innovation, and Metrics research approach and topics, ongoing since 1998, please visit their research portal. Licensed pdfs of the 2014 findings and other research are available in GGI's iStore or through regarded distributors including Baker & Taylor and MarketResearch.com.
Bradford L. Goldense, NPDP, CMfgE, CPIM, CCP, president of Goldense Group Inc. has advised over 300 manufacturing companies on four continents in product management, R&D, engineering, product development, and metrics. GGI is a consulting, market research, and executive education firm founded in 1986. Brad writes a monthly column in Machine Design magazine for product creation professionals.
* PLM Citations *
According to Google Scholar, as of July 31 3014, Product Lifecycle Management: Paradigm for 21st Century Product Realisation, was the most cited PLM publication in journal articles, technical reports, books and theses.
It was cited most recently in Étude d'intégration fonctionnelle du cycle de développement des produits et des communautés de pratique virtuelles. Details
Product development, subject to time constraints and system complexity, needs synchronous communication between different disciplines and locations in order to enable knowledge-sharing. Being well supported, informal information flow increases productivity during product realisation. Therefore, manufacturing industries are exploring the use of Enterprise Social Media (ESM) functionalities. Étude d'intégration fonctionnelle du cycle de développement des produits et des communautés de pratique virtuelles explores the functional integration of formal information technologies such as Product Lifecycle Management (PLM) software with informal technologies such as ESM through an industrial case study. Reviewing literature, a gap was identified between Virtual Communities of Practice (VCoP) and product development, as well as the correlation of PLM solutions and non-controlled ESM in the aerospace industry. In order to disseminate a descriptive study of the current collaboration status, online surveys were undertaken for geodistant employees of the same department, in addition to semi-structured interviews and research among existing documentation. Subsequently, a Quality Functional Analysis was performed via two modified House of Quality matrices (PLM and ESM) to assign a convenient support for information transfer independently of its content maturity. Users' needs were categorised, and for each category a choice of platform was made with further recommendations regarding the use of the function or the need of human intervention.
* Corporate *
Centric Software, Inc. announced that it has closed on $24 million in growth capital as part of its Series D venture capital financing. Details
Dassault Systemes announced the signing of a definitive share purchase agreement for Dassault Systemes to acquire Quintiq. Details
Hexagon AB announced the acquisition of Vero Software. Details
PTC announced a definitive agreement to acquire Axeda Corporation for approximately $170 million in cash. Details
* Financial *
Dassault Systemes reported IFRS unaudited financial results for the second quarter ended June 30, 2014. Q2 total revenue was 556.8 million Euros. Details
EMC Corp. reported second-quarter 2014 financial results, including second-quarter revenue of $5.9 billion. Details
FARO Technologies, Inc. announced results for the second quarter ended June 28, 2014. Sales in the second quarter of 2014 were $82.1 million. Details
Geometric Ltd. announced its first quarter financial results for FY 2014-2015. Operating revenues were USD 44.96 Mn. Details
PTC reported results for its third fiscal quarter ended June 28, 2014. Q3 revenue was $337 million. Details
Zuken Inc. announced results for the fiscal year ending March 31, 2014. Zuken reported net sales of 19,772 million yen. Details
3D Systems Corp. announced that its second quarter revenue was $30.7 million. Details
* People *
Lightworks announced the appointment of Randy Ochs as an Executive Consultant & VP of Business Development. Details
Mentor Graphics Corp. announced the appointment of Mike Ellow as senior vice president, World Trade. Details
* Implementations *
Aras announced that NuStar Technologies Pte Ltd has selected the Aras solution suite. Details
* Developments *
AVEVA announced the launch of AVEVA Information Standards Manager. Details
BETA CAE Systems S.A. announced the release of the SPDRM v1.0.3. Details
Cadence Design Systems, Inc. announced additions to its OrCAD product line. They include OrCAD Engineering Data Management. Details
Datakit announced the 2014.3 version of Datakit converters. Details
Delcam announced the 2015 version of its FeatureCAM CAM system. Details
Formtek announced that the Formtek Version Browser Extension is available for Alfresco 4.2. Details
ICAM Technologies Corp. announced CAM-POST Foundation. Details
KISTERS announced release 2014.1 of the 3DViewStation. Details
MathWorks announced the introduction of Simulink Real-Time into the Simulink product family. Details
* Relationships *
CD-adapco announced that they have signed a collaborative development agreement with JSOL. Details
C3D Labs announced that Solar Tech licensed the C3D geometric kernel for Quick CADCAM. Details
Gibbs and Associates announced a partnership with Sandvik Coromant. Details
Zuken announcesd that French CADSTAR distributor Novacad won Zuken's European CADSTAR Distributor of the Year Award for 2013-14. Details
* Other *
ANSYS announced that 4moms uses ANSYS engineering simulation solutions. Details
Arena Solutions announced revenue grew at nearly 25 percent for Q2 2014 compared to the same period in the previous year. Details
CD-adapco announced its renewed membership with the Medical Device Innovation Consortium. Details
Centric Software, Inc. announced it will open its first Asian office in Shanghai. Details
FARO Technologies, Inc. announced it has acquired The CAD Zone, Inc. Details
Intergraph announced China Chengda Engineering Co. Ltd. has renewed its Strategic Alliance Agreement with Intergraph. Details
Lantek announced specific functions for sheet metal design, nesting and machining for the shipbuilding industry. Details
ProSTEP announced Mazda Motor Corporation has signed ProSTEP iViP's Code of PLM Openness. Details
Rand Worldwide announced ASCENT has surpassed the milestone of 30 released Autodesk Official Training Guides. Details
Solair announced it will offer a White Label PLM system to software houses and VARs. Details
3D Systems Corp. announced it entered into an agreement to acquire Simbionix for $120 million in cash. Details
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