High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption
Upcoming SlideShare
Loading in...5
×
 

High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

on

  • 5,272 views

Data and Analysis from Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 [eBook] ...

Data and Analysis from Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 [eBook]

To learn more about the key success factors for PLM and other enterprise solutions, visit the Insights section of our website:
http://www.ptc.com/consulting/insights?utm_source=SlideShare%2B&utm_medium=plmebook&utm_campaign=Social

Statistics

Views

Total Views
5,272
Views on SlideShare
5,087
Embed Views
185

Actions

Likes
8
Downloads
168
Comments
0

6 Embeds 185

https://freescale-my.sharepoint.com 88
http://engauge.plumb5.com 68
https://twitter.com 16
https://si0.twimg.com 7
http://www.twylah.com 5
https://twimg0-a.akamaihd.net 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption Presentation Transcript

  • High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and AdoptionData and Analysis from Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012
  • The Bottom LineAn international survey of 190 manufacturing companies by Tech-Clarity and PTC GlobalServices highlights FOUR KEY SUCCESS FACTORS that distinguish highperformers in Product Lifecycle Management (PLM) from the rest of the pack:→ Strategic business alignment→ Process-based solution design→ Reduced customization of PLM software→ Comprehensive, role-based learning and adoptionMost executives understand that each of these can be important contributors to PLMsuccess. But the practical reality is that the companies that actually follow these approachesin detail achieve business results far greater than those which take shortcuts in planning,implementation, and adoption.In fact, the high performers in the survey achieved RESULTS FIVE TO TENTIMES GREATER than the others in the top three business metrics: improving time tomarket, increasing product development efficiency, and reducing product cost.This eBook provides data and key findings from the survey. To learn more about the survey,please see the contact information on page 18. Page 2
  • The ChallengePLM solutions have always involved large, complex software implementations – and these are never easyin an enterprise environment. As the scope of PLM programs has grown in recent years, these imple-mentations often require collaboration across multiple functions and processes across the organization.Indeed, according to the analyst firm Gart ner, “PLM applications rank among the most vital foraccelerating delivery and supporting new innovative products, and THEY RANK AMONGTHE MOST COMPLEX TO DEPLOY.” Resource Speed vs. Scope Limitations Legacy Processes Investment and Systems Timing Organizational Short- and Dynamics Long-Term Value Page 3
  • About the Survey Tech-Clarity & Global ServicesIn April 2012, PTC Global Services, the consulting and training arm of PTC, joined forceswith Tech-Clarity, an analyst firm that specializes in product life cycle management, to surveymanufacturing executives in Europe and North America about their experiences with PLM.The goal of the survey was to understand key success factors in planning, implementing,and adopting PLM solutions in complex manufacturing environments.The telephone survey* focused on senior business and IT leaders with current PLM experi-ence, and highlighted four types of questions:→ Strategy and approach to PLM→ Challenges→ Implementation and adoption techniques→ ResultsSurvey participants included representatives of a wide range of manufacturing companieswith commercial software-based PLM solutions in place.* The survey was conducted by ITSMA, an independent research and consulting firm that specializes in IT services and solutions, on behalf of Tech-Clarity and PTC Global Services. Page 4
  • The survey included 190 senior representatives from aerospace, Survey automotive, consumer product, high tech, industrial, and other manufacturing companies. The majority of participants worked Participants on the business side of their organizations, and all participants had direct experience with PLM solutions. Senior Business IT Years with PLM Solution 4 + Years 0-1 Year 1-2 Years 2-4 Years $1 B + North America Europe $500-999 M $400-499 MSource: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 5
  • Business Objectives Manufacturing companies today are looking to PLM to support a broad range of business objectives. As PLM has evolved from its historical roots in product data management inside the engineering department, it has now become a broad-based business program with implications across the organization. Improve sourcing or supply chain performance Reduce product cost Improve time to market Improve product Business development efficiency Objectives for PLM Improve product quality Improve service operations or profitability Increase product innovation Develop more sustainable/ green productsNote: Up to three responses allowed.Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 6
  • Operational Objectives To support their business objectives, companies are focusing on PLM solutions that can support a broad range of operational and technical improvements, including automating and standardizing processes, integrating systems, and improving global collaboration. Standardize business processes Integrate development Automate/streamline & execution (PLM & ERP) manual processes Operational Provide a single source of information Objectives Make it easier to find information for PLM Consolidate IT Improve internal systems communication Improve external and collaboration Support distributed/ communication global teams and collaborationNote: Up to three responses allowed.Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 7
  • Most Companies Have Achieved Their Goals for Operational Improvements On a purely operational level, survey participants reported that they have done well or very well in achieving their desired improvements in information management, process automation, and internal communication. 3.9 5 X 1 Consolidate IT systems Not well Very well 3.9 5 Make information X 1 easier to find Not well Very well 3.7 5 X 1 Improve internal communication Not well Very well Standardize 3.6 5 X 1 business processes Not well Very well Improve supplier/ 3.5 5 X 1 customer collaboration Not well Very well 3.4 5 X Support global product 1 development teams Not well Very well Note: Mean rating based on a 5-point scale where 1=not well and 5=very well. Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 8
  • Overall, However, Companies Have Achieved Only Modest Improvements in Key Business MetricsWhen we look at overall business results, however, the story is more mixed. Average percentage improvements inthe top three business metrics are not bad. However, they are not the kind of results that companies often expectwhen committing large investments to new solutions and new ways of working. 15% (% improvement) 10% 5% 3 % 4 % 2 % 0% Time to Market Product Development Efficiency Reduced Product CostSource: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 9
  • High Performers Have Achieved Substantially Greater Results In the survey, 22% of respondents stood apart as high performers. The high performers have achieved substantially greater improvements in the top business objectives, five to ten times greater than the results of the average and lower performing companies. 15% 13.3% (% improvement) 10% 8.9% 5.8% 5% 1.5% 1 % .3 1. % 1 0% Time to Market Product Development Efficiency Reduced Product Cost - High Performers - Low PerformersNote: High performers are those companies with the best business results across the top three business objectives.Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 10
  • Patience is a VirtueHigh performers tend to have more experience with PLM. This is not much of a surprise. PLM is a big change initiative.It takes time to get comfortable with new ways of working, new capabilities, and new systems. Years with a PLM Solution* 62% 39% 37% 24% 22% 16% 0- 2- 4+ 4+ 0- 2- 4 4 2 2 ye ye ye ye ye ye ar ar ar ar ar ar s s s s s s High Performers Low Performers* Indicates a statistically significant difference.Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 11
  • High Performers Have a Broader Scope of Implementation Across Processes and Departments The high performers also tend to have a broader scope of implementation. First, they tend to include more business processes with their program, such as quality planning. Second, the high performers tend to involve more functional areas across the business, too. Most companies involve engineering, of course, and many include manufacturing and supply chain. High performers are also more likely to include the quality organization, sales and marketing, and/or general management. * * Number of processes implemented Number of departments using PLM 5.3 4.5 4.4 3. 1 High Performers Low Performers High Performers Low Performers* Indicates a statistically significant difference. Check out Jim Brown’s blog post on “Broader Scope PLM.”Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 http://blogs.ptc.com/2012/06/12/broader-scope-plm-yields-greater-business-value/ Page 12
  • The Most Significant Differences Relate to HOW Companies Plan, Implement, and Adopt PLM High Performers Learning & Adoption Software Implementation Solution Design Low Performers Strategy and PlanningSource: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 13
  • High Performers Are More Likely to Align Strategy and Use Detailed Roadmaps and Scorecards Most program managers understand that program risks increase dramatically if the organization is not well aligned around the strategy, key objectives, investment requirements, and timeline. But the survey data suggest strongly that it is the depth and breadth of that alignment and the detail of the planning that matter most. Aligned PLM strategy with business strategy* 46% 63% (% of Respondents) Developed executive agreement on value 41% 49% Created detailed implementation roadmap* 36% 76% t Star Managed implementation with value scorecard* 34% 51% Read Rob Leavitt’s blog post on 6 Steps to Effective PLM Planning http://blogs.ptc.com/2012/05/28/slowing-down-to-speed-up-6-steps-to-effective-plm-planning/Note: Multiple responses allowed. *Indicates a statistically significant difference. Low Performers High PerformersSource: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Page 14
  • High Performers Prioritize Business Process Improvement and Use Software to Enable Change The relationship between process change and software change is always a tricky one with large technology solutions. The business value comes from changing the way we work, but it’s usually the software that enables those changes. The high performers are more likely to focus first on process improvement, and then on application and system change to support the improvements. An integrated process is best to make sure that process change doesn’t get too far ahead of software capabilities. Customizing new software to support old processes tends to be the least effective approach. 40% 39% 30% 35% 22% 22% 20% 22% 21% 17% 10% 15 % 0% Processes & Software Processes Improved Process Improvements Based Software Customized to Improved Concurrently* Independently on Software Definitions Support Existing Processes*Note: Multiple responses allowed. * Indicates a statistically significant difference.Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Low Performers High Performers Page 15
  • High Performers Customize their Software LessWith all enterprise solutions, the mantra in the marketplace today is “off the shelf.” We don’t want to getbogged down in expensive software customizations that end up costing more, taking longer, and creatingsystems that are more expensive to maintain and less flexible for future expansion, integration, and upgrades.The reality is that most companies are still doing a fair amount of customization but the high performers aredoing a bit less than the others. And because the high performers typically have had their solutions longer, thedata suggest that they have made a greater effort to minimize customization. 40% 32% 37% 30% 18% 28% 28% 20% 15% 13% 10% 13% 10% 9% 0% No Customization Significant Customization Note: Mean rating based on a 5-point scale where 1=no customization and 5=significant customization. Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 Low Performers High Performers Page 16
  • High Performers Take a More Strategic Approach to Organizational Learning and Adoption The best designed PLM solutions accomplish little if the users fail to accept the changes and integrate the new processes and tools into their daily work. Similar to the up-front strategy and planning, the reality is that many companies under-invest in organizational learning and adoption. In contrast, the high performers are more likely to take a strategic and more comprehensive approach, including strategic planning, organization-wide communication, and role-based training. Strategic plan for training and adoption* 41% 63% (% of Respondents) Built awareness of need for change 45% 59% Custom training for different roles* 31% 51% Training or “sandbox” test environment* 19% 51%Read Rob Leavitt’s blog post on 4 Keys to Ensuring PLM Adoptionhttp://blogs.ptc.com/2012/05/29/4-keys-to-ensuring-plm-adoption/Note: Multiple responses allowed.* Indicates a statistically significant difference.Source: Tech-Clarity and PTC, PLM Key Success Factors Survey, 2012 Low Performers High Performers Page 17
  • Get in Touch! Interested in learning more about the research? Want to talk about the implications for your organization? Have a related experience to share? Please get in touch and let us know. We’d love to talk.For more Insights from the Global About the AuthorServices team, please visit Rob Leavitt is Director of Thought Leadership at PTC Global Services, the consulting arm of PTC. A long-time advisor toblogs.ptc.com/category/strategy/. top technology and IT services firms, Rob works with PTC consultants, partners, and customers to advance understanding of key issues and challenges in productOr scan this code development, manufacturing, and after-market service.with your mobile device. Contact Rob at: Rob Leavitt, Director of Thought Leadership PTC Global Services Rleavit t@ptc.com +1-781-370-5719 Twit ter.com/PTC_Consult ing © 2012, Parametric Technology Corporation (PTC). All rights reserved. Information described herein is furnished for informational use only, is subject to change without notice, and should not be construed as a guarantee, commitment, condition or offer by PTC. PTC, the PTC logo, Creo, Pro/INTRALINK, Windchill, Windchill PDMLink, Windchill ProjectLink, Pro/ENGINEER and all PTC product names and logos are trademarks or registered trademarks of PTC and/or its subsidiaries in the United States and in other countries. All other product or company names are property of their respective owners. The timing of any product release, including any features or functionality, is subject to change at PTC’s discretion. J0370 - PTC Global Services - Infographic / eBook Page 18