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PLM outside the box: Operational complexity, not product complexity!. Pier Manenti | Head of IDC Manufacturing Insights, EMEA. A division of IDC Develops industry research, benchmarking projects and advisory services on business process best practices and on the use of IT in manufacturing

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plm outside the box operational complexity not product complexity

PLM outside the box: Operational complexity, not product complexity!

Pier Manenti | Head of IDC Manufacturing Insights, EMEA

slide2
A division of IDC

Develops industry research, benchmarking projects and advisory services on business process best practices and on the use of IT in manufacturing

Helps manufacturers improving their capabilities in key business process areas

Helps IT vendors to assess the market opportunities and better focus offering toward end-users’ needs

Business

Process

Information

Technology

Business

Process

The Dynamic Enterprise

idc manufacturing insights areas of research
IDC Manufacturing Insights’ areas of research

Engineering Oriented Value Chain

Technology Oriented Value Chain

Brand Oriented Value Chain

Asset Oriented Value Chain

Value Chains

Chemicals, Pharmaceuticals,…

Automotive, Aerospace,

Machinery, …

Fashion, Food&Beverage,…

High-tech, Semiconductor,…

Process Domains

Operations Technology strategies

Look at a

segment across

domains

Supply Chain

strategies

Look at a

domain

across segments

Product Lifecycle strategies

Emerging Agenda

slide4

Economy

Eurozone Debit Crisis

Market

Race for Market Share

Technology

The Four IT Forces

cautious and selective optimism
Cautious and Selective Optimism

Source: IDC Manufacturing Insights, GPI index, 2012

most critical areas of business focus
Most Critical Areas of Business Focus

Source: IDC Manufacturing Insights, 2012 – N = 378

sources of competitive differentiation
Sources of competitive differentiation

+14%

+42%

+43%

+19%

+41%

+16%

Source: IDC Manufacturing Insights 2012 – N=90

slide8

Operational complexity, not product complexity!

\

Source: IDC Manufacturing Insights 2012 – N=378

complexity exceeds capacity
Complexity Exceeds Capacity
  • IT and operational complexity is growing exponentially
  • The capacity of individual workers and organization to keep the same pace of business complexity has grown at a lower rate.
  • Enterprises able to keep the lower gap are the winner
  • Complexity hinder company ability to make effective decisions faster

Technology and operational complexity

Organization and individual capacity

plm is a multi disciplinary process
PLM is a multi-disciplinary process

Source: IDC Manufacturing Insights, 2012 – N = 165

what are the main barriers in achieving an effective plm process
What are the main barriers in achieving an effective PLM process?

Source: IDC Manufacturing Insights, 2012 – N = 165

decisions decisions decisions
Decisions, Decisions, Decisions…

Minimize Time & Costs

Minimize Waste

Minimize Costs & Inventory

Research

Design

Make

End of Life

Sustain

Requirements

Maximize Reuse

Maximize for Performance, Quality & Compliance

Maximize Efficiency & Productivity; Quality

Maximize Service Level & Value-add Services

Maximize Compliance

Reapply

Amend

Enhance

Continuous Improvement

why is it so difficult to make decisions
Why Is It So Difficult to Make Decisions?

Effective

  • Product life-cycle is a multi-disciplinary and collaborative process
  • Challenges
    • Organization
      • Multiple functional stakeholders with different contrasting goals
    • Process
      • Product lifecycle process distributed across multiple functional teams
    • Information Technology
      • Loosely integrated tools along the product lifecycle
      • Complex multi-CAD environments for engineers
      • Other functional groups use unstructured email and file-based collaboration
  • Opportunity
    • Establish a real-time, collaborative decision-making environment
plm must be a collaborative decision making environment
PLM must be a collaborative, decision-making environment

Source: IDC Manufacturing Insights, 2012 – N = 378

barriers to creating effective decision making environment
Barriers to creating effective decision-making environment

Source: IDC Manufacturing Insights, 2011, n = 378

the 4 it forces will change the way business is managed
The 4 IT forces will change the way business is managed

Source: IDC Manufacturing Insights, 2012 – N = 378

slide17

The rise of virtual reality tools

Source: IDC Manufacturing Insights, 2012 – N = 165

maturity level from retrospective to prospective decision making
Maturity level: from Retrospective to Prospective decision making

The 4 IT forces

Requires specialized CAD skills

Virtual/ Augmented Reality

Simulation

Open to all functional users

PDM

CAD

Experience of the user

Data

Wisdom

Knowledge

Information

Understanding

Retrospective

(based on experience and data)

Prospective

  • (anticipated business outcomes)

Today

essential guidance
EssentialGuidance
  • Importance of innovation
    • Competitive differentiation comes from product, service and price leadership
    • Sustain more growth through product and service innovation
    • Operational and IT complexity is the real challenge
  • Product life cycle is a multi-disciplinary and collaborative process
    • Break the organisational process
    • Extend the process beyond the traditional stakeholders
  • Next generation PLM is open to all participant
    • Current IT is the major barrier
    • Leverage the 4 IT forces to create a collaborative decision-making environment
    • Focus PLM investments on simulation and virtual/augmented reality
thank you questions
Thank You! Questions?

Pierfrancesco Manenti

Head of IDC Manufacturing Insights, EMEA

pmanenti@idc.com