September 8 2014
John Stark Associates
- Brief lines
* Welcome *
Welcome to 2PLM, an e-zine distributed about every two weeks. This issue includes :
by Roger Tempest
The new PLM Project Justification Handbook contains a complete, practical methodology to quantify the costs, benefits and commercial value of implementing PLM. It is ideal for use when the priority is immediate financial justification of PLM.
The Handbook and its supporting toolset enable PLM Managers to prove that PLM is worth doing from a purely financial viewpoint. Its core premise is that you should be able to quantify anything that PLM can achieve for a business, and build those metrics into PLM proposals. It fulfils one of the main aims of any capital expenditure submission, which is: "The Finance Director cannot say 'No' any more."
The Handbook is designed to be as easy to understand and use as possible. Its methodology is practical and straightforward. It enables the PLM Team to produce properly costed proposals for new PLM projects, that can be assessed for demonstrable success after they have been implemented.
More information is available on the PLMIG web site, and all of the material is available via PLMIG membership.
Roger Tempest is co-founder of the PLMIG. Membership of the PLMIG is available via firstname.lastname@example.org.
* The Enculturation of Intellectual Property In R&D Practices Is Coming *
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 introduced. The July 21, August 4, and August 25 issues addressed industry research findings regarding R&D Operating Environments, Organic R&D Innovation, and Open R&D Innovation respectively. In this fifth of a six part series, selected GGI findings on Intellectual Property practices in R&D will be discussed.
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.
Intellectual Property [IP], for the purposes of the research, included both registered and unregistered IP associated with R&D. Company Proprietary, Trade Secret, Enabled Publications, Copyright, Trademark, Provisional Patent, and Patent were generally the categories that respondents had in their minds as they addressed eight research areas spanning R&D and the general management of IP.
Four IP areas relating to R&D and PLM were researched: Importance of IP, Financial Tracking of IP, Financial Results from IP, Processes Used To Manage IP. Over 95% of all respondent companies provided answers to these four research areas. As "IP" has been around for centuries, and registered IP began in England in the Middle Ages, one would expect a high level of corporate awareness on the subject of Intellectual Property.
Importance of IP: Corporate emphasis on IP in R&D is currently much stronger, when compared to five years ago. Only a quarter of respondents said that the emphasis had not changed in the past five years, almost three-quarters said the initiative had become either more or much more important. Only one of the one hundred ninety-one respondent companies indicated that IP was less important. The body of knowledge of IP is evolving rapidly everywhere during the past two decades; across the generators of IP, service industries, and software providers. There are four driving forces: globalization, monetization, regulation, and security. R&D antennas are currently high and are likely to remain that way for a number of years.
Financial Tracking of IP: Systems and infrastructure typically lag the implementation of new corporate practices. As well, cost tracking systems are generally much better architected and featured to take on a new activity than are revenue and profit tracking systems. Three out of ten companies now track IP revenues, and slightly less track IP profits. Four-plus out of ten companies now track IP development costs, and one-third track IP capital costs. Remembering that this research is North American in scope, it is important to note that the legislative seesawing of the "R&D Tax Credit" affects the corporate propensity to track costs that are subsets of R&D expense. Most of the IP-related costs would qualify for tax credits were there a regular policy. As the ability to monetize IP to the P/L statement level increases, tax credits will no longer be the primary motivator for tracking. Return on investment calculations will necessitate the build-out of the relevant tracking systems.
Financial Results from IP: While every company may not know exactly what monies accrue to them from IP initiatives, there is no lack of clarity on practitioner perceptions of economic benefit. A touchier area to research than corporate importance, the strong positive response on financial results from IP was surprising. Historically, financials included, IP has been handled outside of the company or as a function or group that is not within R&D. Despite the distance, awareness is high. Not one company indicated any negative financial impacts, zero. Only a quarter of companies indicated neutral results. Three-quarters of companies indicated positive or strongly positive economic benefits.
Processes Used To Manage IP: Like financial tracking systems, formalized processes also lag the implementation of corporate practices. However, only seventeen percent of companies do not have at least one "documented process or guidelines" for IP. In converse to Open Innovation at seventy-three percent, as reported in the August 25 issue of 2PLM, it is clear that IP is much more mature in corporate cultures - as expected. Another twenty-two percent of companies are still quite basic in their processes for IP, one size fits all. A single process exists to handle all IP-related matters. The remaining sixty percent of North American industry is relatively more sophisticated. Across all responses as a whole, for the categories of Company Proprietary, Trade Secret, Enabled Publications, Copyright, Trademark, Provisional Patent, and Patent, Patent was the most formalized with seventy percent having a process for it. The least formalized was Enabled Publications at twenty percent. Trade Secrets was next lowest at forty-four percent. For the remaining registered and unregistered IP categories, the presence of processes or guidelines ranged from fifty to sixty-five percent. The driving forces behind the Importance of IP noted above, especially monetization, are likely to lead to the continued build-out of IP processes. Today, the average European company has five or six product development processes. The average North American company has three to four. Counts for IP processes may well exceed R&D and product development process counts in the years ahead.
SUMMARY: IP is on its way to becoming a globally traded commodity, transactable, just like money and other commodities are today. While it will still take years to rationalize and normalize IP practices across companies, regulating bodies, countries, and governments, and it will never fully normalize, the growth and maturation of its body of knowledge will continue at a high rate until IP achieves becoming a tradable and securable commodity. With R&D, manufacturing, and software-driven processes sitting at the cradle of invention and innovation, R&D professionals will find themselves increasingly occupied with IP matters. With little financial downside, and an ever increasing ease in the ability to monetize IP, financial tracking and process infrastructure will continue to build-out. In the intermediate term, formalization will likely equal or surpass what exists in R&D and product development today. In the long term, IP will become integrated with all of the cradle locations in a corporation. R&D will be no exception. IP will become an integral part of R&D and product development processes; right alongside products. Project teams will launch either a product or pieces of packaged IP, or both. Business plans of the future will incorporate both P/L streams. Cost tracking systems will follow the same path. It won't matter whether the IP is registered or unregistered, valuing and packaging it are all that is necessary. This "commodization of IP" will create many changes for product creation professionals. It will also create additional responsibilities for PLM professionals, "productized IP" will have its own unique lifecycle attributes.
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 September 5 2014, Product Lifecycle Management: Paradigm for 21st Century Product Realisation was the PLM publication most frequently cited in journal articles, technical reports, books and theses.
Recently it was cited in Rapid Productisation Process: Managing an Unexpected Product Increment, Author: K. Hänninen. Details
The objective of the research described in Rapid Productisation Process: Managing an Unexpected Product Increment was to develop a process of rapid productisation in a B2B sales situation to manage an unexpected product increment. Earlier research had identified that development of products by utilising radical innovation has declined, and the prevailing method is to develop new products in small increments based on an existing product or service platform. In this way, companies can create a new product by making minor enhancements or incremental improvements to create additional value.
The theoretical foundation of the research builds on the literature of decision making, new product development, product portfolio management, and upstream supply chain management. The research method is the qualitative case study, which explores the rapid productisation practices of 26 companies. The empirical data consists of 74 interviews and was collected during the years 2011-2013.
The research shows that the companies well understand the need for RP. They repeatedly faced situations where they had to develop new product solutions very rapidly. Because customer requirements in sales situations are unpredictable, companies strove to find solutions using temporary or special arrangements. By doing so, however, they did not deal with the core source of the problem, which arose again and again.
In the research, several challenges and preconditions of RP were identified: the ability to make decisions, roles and responsibilities that have been defined in advance, and reconciliation of the RPP with other business processes. The research makes clear that the process of RP developed to meet the need for unexpected product increments in B2B sales situations, and its key elements are intra-firm cooperation and use of existing processes as a baseline, which enable the organisation to accelerate the operation.
* Corporate *
3D Systems announced that it completed the acquisition of Simbionix. Details
* Financial *
Sopheon plc announced its unaudited interim report for the six months ended 30 June 2014. Revenues for the first half of 2014 were $9.2m. Details
* People *
Lectra announced the appointment of Chris Nicolaes as Managing Director for Lectra Germany. Details
* Implementations *
Aras announced that Sinfonia Technology Co., Ltd. has selected the Aras solution suite for enterprise PLM. Details
Arena Solutions announced a deployment of Arena PLM by ilumi. Details
AVEVA announced that JSC Giprogazoochistka will expand its deployment of AVEVA software solutions. Details
CDS announced that its Catalog as a Service and CAD as a Service solutions has been selected by Gilman Precision Inc. Details
Visual 2000 International announced that Pentex selected the Visual End-2-End suite of software products. Details
Zuken announced that Windmoller & Holscher is adopting E3.series. Details
* Developments *
FARO Technologies, Inc. announced the release of the FARO Laser Line Probe HD. Details
Formtek announced EDM Solution v2.1.1 for Alfresco One. Details
Hexagon Metrology announced the ROMER Absolute Arm 1.2m portable coordinate measuring machine. Details
Informative Graphics Corp. announced Brava! Enterprise 7.2 for EMC Webtop. Details
ModuleWorks announced version 2014.08 of its CAM components. Details
MSC Software Corp. announced the release of Adams 2014. Details
Prostep announced Version 1.7.1 of its 3D PDF Enrichment products. Details
Prostep announced Version 4.2 of PDF Generator 3D. Details
Spatial Corp. announced the R25 release of 3D ACIS Modeler and 3D InterOp. Details
Spring Technologies announced NCSIMUL Machine 9.2. Details
* Relationships *
Altair announced that Materialise has joined the Altair Partner Alliance. Details
SofTech, Inc. announced its partnership with Kisters AG. Details
Tech Soft 3D announced the expansion of its toolkit offerings to include Polygonica from MachineWorks Ltd. Details
* Other *
Aras announced enablement of the Aras Innovator platform and solution suite on Microsoft SQL Server 2014. Details
Aras announced results of independent testing conducted by Logic 20/20 for the scalability of Aras Innovator 10 running Microsoft SQL Server 2014 Enterprise Edition. Testing occurred with 1,000,000 named users at 125,000, 150,000, 200,000 and 250,000 concurrent user loads with real-world scenarios and data structures to simulate actual usage. Details
Datadvance announced use of MACROS for structural analysis of Airbus A350 XWB aircraft. Details
Granta Design announced a fourth phase for the Material Data Management Consortium. Details
Lantek announced it passed the 15,000-customer milestone. Details
Mentor Graphics Corp. announced its membership in the European Centre for Power Electronics. Details
Moduleworks announced the Moduleworks Newsletter - Summer 2014. Details
PTC announced the company was named a "Top Ten Best Support Website" for 2014 by the Association of Support Professionals. Details
PTC announced that Purdue University joined the PTC University Authorized Training Program. Details
Siemens PLM Software announced it helped the University of Michigan Solar Car Team to win their eighth national championship in the 2014 American Solar Challenge. Details
Tacton Systems announced it received the Hermes Export Prize for contributing to develop and strengthen Swedish export. Details
The University of Toronto Aerospace Team announced it received an in-kind software grant from Siemens PLM Software and Maya Heat Transfer Technologies Ltd, with a commercial value of $10.1 Million. Details
3D Systems and SME announced the formation of an advisory board for the M.Lab21 Initiative. Details
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Cabinet d'Avocat. Details