PLM outside the box: Operational complexity, not product complexity! Pier Manenti | Head of IDC Manufacturing Insights, EMEA.

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Presentation transcript:

PLM outside the box: Operational complexity, not product complexity! Pier Manenti | Head of IDC Manufacturing Insights, EMEA

© IDC Manufacturing Insights Page 2  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 The Dynamic Enterprise Information Technology Business Process

© IDC Manufacturing Insights Page 3 IDC Manufacturing Insights’ areas of research Asset Oriented Value Chain Engineering Oriented Value Chain Technology Oriented Value Chain Brand Oriented Value Chain Product Lifecycle strategies Supply Chain strategies Supply Chain strategies Operations Technology strategies Emerging Agenda Look at a domain across segments Look at a segment across domains Process Domains Value Chains Automotive, Aerospace, Machinery, … High-tech, Semiconductor,… Fashion, Food&Beverage,… Chemicals, Pharmaceuticals,…

© IDC Manufacturing Insights Page 4 Economy Eurozone Debit Crisis Market Technology The Four IT Forces Race for Market Share

© IDC Manufacturing Insights Page 5 Cautious and Selective Optimism Source: IDC Manufacturing Insights, GPI index, 2012

© IDC Manufacturing Insights Page 6 Source: IDC Manufacturing Insights, 2012 – N = 378 Most Critical Areas of Business Focus

© IDC Manufacturing Insights Page 7 Source: IDC Manufacturing Insights 2012 – N=90 Sources of competitive differentiation +14% +42% +43% +19% +41% +16%

© IDC Manufacturing Insights Page 8 Source: IDC Manufacturing Insights 2012 – N=378 Operational complexity, not product complexity! \

© IDC Manufacturing Insights Page 9 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 Organization and individual capacity

© IDC Manufacturing Insights Page 10 PLM is a multi-disciplinary process Source: IDC Manufacturing Insights, 2012 – N = 165

© IDC Manufacturing Insights Page 11 What are the main barriers in achieving an effective PLM process? Source: IDC Manufacturing Insights, 2012 – N = 165

© IDC Manufacturing Insights Page 12 Requirements Minimize Waste Maximize for Performance, Quality & Compliance Maximize Efficiency & Productivity; Quality Maximize Service Level & Value-add Services Minimize Costs & InventoryMinimize Time & Costs Maximize Reuse Maximize Compliance Decisions, Decisions, Decisions… ResearchDesignMake Sustain End of Life Continuous Improvement ReapplyAmendEnhance

© IDC Manufacturing Insights Page 13 Why Is It So Difficult to Make Decisions?  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 and file-based collaboration  Opportunity –Establish a real-time, collaborative decision-making environment Effective

© IDC Manufacturing Insights Page 14 Source: IDC Manufacturing Insights, 2012 – N = 378 PLM must be a collaborative, decision-making environment

© IDC Manufacturing Insights Page 15 Source: IDC Manufacturing Insights, 2011, n = 378 Barriers to creating effective decision-making environment

© IDC Manufacturing Insights Page 16 The 4 IT forces will change the way business is managed Source: IDC Manufacturing Insights, 2012 – N = 378

© IDC Manufacturing Insights Page 17 The rise of virtual reality tools Source: IDC Manufacturing Insights, 2012 – N = 165

© IDC Manufacturing Insights Page 18 Maturity level: from Retrospective to Prospective decision making CAD PDM Simulation Virtual/ Augmented Reality The 4 IT forces Data Information Knowledge Understanding Wisdom Retrospective (based on experience and data) Prospective (anticipated business outcomes) Experience of the user Today Requires specialized CAD skills Open to all functional users

© IDC Manufacturing Insights Page 19 Essential Guidance  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

© IDC Manufacturing Insights Page 20 Pierfrancesco Manenti Head of IDC Manufacturing Insights, EMEA Thank You! Questions?