Overview of PTC’s Corporate Vision and Strategy

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Find out how business process transformation can lead to a competitive product and service advantage.

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  • Our goal is to give customers a Product and Service AdvantageOur mission is to provide technology solutions that transform how products are created and servicedTechnology solution: We are a technology/software company, however we are not selling shrink wrap software. We provide the services and know-how to solve customers problems with the technology. Transform: Speaks to process change. We are in the business of changing customers processes.Create and Service products: Both the upfront knowledge work to create products and service offerings along with the manufacturing and servicing of those products.
  • PTC has identified seven major forces, some of which are long-standing while others are more recent, that are transforming manufacturing.   In recent years, leverage from production-centric product strategies has begun to diminish, in part because they have become commonplace. Optimization of manufacturing production processes will have become simply the “price of entry” to compete. The path to true competitive advantage in the modern manufacturing era requires a rethinking of nearly everything - from how products are designed, built, and serviced, to the underlying business models manufacturers employ. Causing the need for this strategic realignment is a set of market forces, which are now converging to accelerate the manufacturing industry’s trajectory toward the “tipping point” of a fundamental transformation.  Understanding the driving forces, their specific impact, and the opportunities they create, reveals the roots of manufacturing transformation and the future of competitive advantage. DIGITIZATIONReplacing analog product and service information with a fully accurate virtual representation that can be easily leveraged across the value chain (engineering, factory floor, service).GLOBALIZATIONThe general shrinking of the world driven by technology that eliminates economic and geographical divisions and opens new markets.REGULATIONEnforcement of governmental rules, non-governmental organization policies and industry standards related to environment, health, safety and trade.PERSONALIZATIONEfficiently tailoring products and services to accommodate regional and personal preferences.SOFTWARE-INTENSIVE PRODUCTSIntegrated systems of hardware and software capable of sophisticated human-to-machine interaction, diagnostics and service data capture, with additional value delivered through enhancements.SERVITIZATIONFundamental business model shift in which products evolve to integrated “bundles” of services capable of delivering new value continuously throughout the customer experience lifecycle.CONNECTIVITYPervasive networks of “things” – often mobile – embedded with sensors and individually addressable to enable sophisticated monitoring, control, and communication.
  • The Technology piece: Process improvement is pivotal to product and service advantage, and to business success.PTC has a portfolio of technology solutions (CAD, ALM, PLM, SCM, SLM) and a system which to manage and interconnect them. The system enables business process optimization and drives transformation across the total product lifecycle and enterprise.We are leaders across these five critical business areas with the technology system and knowhow to flexibly connect all five.Our solutions, whether standalone or working together as a system, enable us to transform the way products are created and serviced so our customers can achieve ongoing product and service advantageDetailed system of solutions located in the appendix
  • PTC developed a system of solutions that has been engineered to work together to provide that closed loop process and help transform the way you create and service your products.We have developed solutions that alone can drive process optimization within a function but the value grows exponentially as you add solutions within and across the enterprise.Why? Because PTC’s System of Solutions provides:Out of the box integrations that enable seamless flow of information from product through to service and back againFull breadth of capabilities needed to enable companies to optimize and align business processes within each function and across the enterpriseComprehensive portfolio of service offerings through our Global Services organization that ensures return on their investment
  • PTC developed a system of solutions that has been engineered to work together to provide that closed loop process and help transform the way you create and service your products.We have developed solutions that alone can drive process optimization within a function but the value grows exponentially as you add solutions within and across the enterprise.Why? Because PTC’s System of Solutions provides:Out of the box integrations that enable seamless flow of information from product through to service and back againFull breadth of capabilities needed to enable companies to optimize and align business processes within each function and across the enterpriseComprehensive portfolio of service offerings through our Global Services organization that ensures return on their investment
  • PTC developed a system of solutions that has been engineered to work together to provide that closed loop process and help transform the way you create and service your products.We have developed solutions that alone can drive process optimization within a function but the value grows exponentially as you add solutions within and across the enterprise.Why? Because PTC’s System of Solutions provides:Out of the box integrations that enable seamless flow of information from product through to service and back againFull breadth of capabilities needed to enable companies to optimize and align business processes within each function and across the enterpriseComprehensive portfolio of service offerings through our Global Services organization that ensures return on their investment
  • PTC developed a system of solutions that has been engineered to work together to provide that closed loop process and help transform the way you create and service your products.We have developed solutions that alone can drive process optimization within a function but the value grows exponentially as you add solutions within and across the enterprise.Why? Because PTC’s System of Solutions provides:Out of the box integrations that enable seamless flow of information from product through to service and back againFull breadth of capabilities needed to enable companies to optimize and align business processes within each function and across the enterpriseComprehensive portfolio of service offerings through our Global Services organization that ensures return on their investment
  • PTC developed a system of solutions that has been engineered to work together to provide that closed loop process and help transform the way you create and service your products.We have developed solutions that alone can drive process optimization within a function but the value grows exponentially as you add solutions within and across the enterprise.Why? Because PTC’s System of Solutions provides:Out of the box integrations that enable seamless flow of information from product through to service and back againFull breadth of capabilities needed to enable companies to optimize and align business processes within each function and across the enterpriseComprehensive portfolio of service offerings through our Global Services organization that ensures return on their investment
  • PTC developed a system of solutions that has been engineered to work together to provide that closed loop process and help transform the way you create and service your products.We have developed solutions that alone can drive process optimization within a function but the value grows exponentially as you add solutions within and across the enterprise.Why? Because PTC’s System of Solutions provides:Out of the box integrations that enable seamless flow of information from product through to service and back againFull breadth of capabilities needed to enable companies to optimize and align business processes within each function and across the enterpriseComprehensive portfolio of service offerings through our Global Services organization that ensures return on their investment
  • To help manufacturers meet these future challenges and begin this transformation, PTC has a solution approach to achieving product and service advantage. PTC does not just sell products, but a total solution comprised of process expertise, technology, and people, a collaborative approach to realizing valueProcess Expertise: To gain advantage you need to transform processes, the way things are created and serviced. Technology: Enables transformation and best in class processes. Value Centric (People) Engagement: Ensure the adoption of technology and process to unlock value.We can deliver on our purpose to create advantage through transformation because of our fusion of technology and process knowhow.
  • Overview of PTC’s Corporate Vision and Strategy

    1. 1. PTC Corporate Overview Jim Heppelmann President & CEO, PTC December 4, 2013
    2. 2. Delivering Product and Service Advantage Technology solutions that transform the way you create and service products 2
    3. 3. Major Forces of Transformation in Manufacturing Sector REGULATION DIGITIZATION CONNECTIVITY PERSONALIZATION SERVITIZATION GLOBALIZATION SOFTWARE-INTENSIVE PRODUCTS 3
    4. 4. A System of Market Leading Software Applications ALM Application Lifecycle Management Manage product requirements, system models, software configurations, test plans and defects. CAD Computer-Aided Design SLM PLM Create conceptual and detailed designs, analyze designs, create manufacturing tools and tool paths, perform engineering calculations. Product Lifecycle Management Evolve the complete definition of a product over its entire life. SCM Service Lifecycle Management Plan, manage, deliver and analyze service information, parts and warranty throughout the service lifecycle. Supply Chain Management Manage components and suppliers, measure and manage compliance, and analyze product cost. 4
    5. 5. PTC System of Solutions PTC PTC Global Component and Supplier Software Development Management PTC UDI PTC Manufacturing PTC Process Materials Compliance Management PTC Retail PLM PTC Technical Information PTC Project Management PTC Service Parts Information PTC Global Product Development PTC Service Knowledge Management Product Advantage PTC Multi-CAD Design Service Advantage PTC Service Parts Management PTC 3D Design STRATEGIC PLANNING PTC Warranty and Contract Management PTC Global Platforms PTC Global Quality PTC PTC PTC PTC PTC PTC Service Parts Field Service Service Service Enterprise System Pricing Management Depot Validation Requirements Network and Review and Validation Management Management 5
    6. 6. PTC System of Solutions PRODUCT ENGINEERING PTC PTC Global Component and Supplier Software Development Management PTC UDI PTC Manufacturing PTC Process Materials Compliance Management PTC Retail PLM PTC Technical Information PTC Project Management PTC Service Parts Information PTC Global Product Development PTC Service Knowledge Management Product Advantage PTC Multi-CAD Design Service Advantage PTC Service Parts Management PTC 3D Design STRATEGIC PLANNING PTC Warranty and Contract Management PTC Global Platforms PTC Global Quality PTC PTC PTC PTC PTC PTC Service Parts Field Service Service Service Enterprise System Pricing Management Depot Validation Requirements Network and Review and Validation Management Management 6
    7. 7. PTC System of Solutions SUPPLY CHAIN AND MANUFACTURING PRODUCT ENGINEERING PTC PTC Global Component and Supplier Software Development Management PTC UDI PTC Manufacturing PTC Process Materials Compliance Management PTC Retail PLM PTC Technical Information PTC Project Management PTC Service Parts Information PTC Global Product Development PTC Service Knowledge Management Product Advantage PTC Multi-CAD Design Service Advantage PTC Service Parts Management PTC 3D Design STRATEGIC PLANNING PTC Warranty and Contract Management PTC Global Platforms PTC Global Quality PTC PTC PTC PTC PTC PTC Service Parts Field Service Service Service Enterprise System Pricing Management Depot Validation Requirements Network and Review and Validation Management Management 7
    8. 8. PTC System of Solutions SUPPLY CHAIN AND MANUFACTURING PRODUCT ENGINEERING PTC PTC Global Component and Supplier Software Development Management PTC UDI PTC Manufacturing PTC Process Materials Compliance Management PTC Retail PLM PTC Technical Information SERVICE ENGINEERING PTC Project Management PTC Service Parts Information PTC Global Product Development PTC Service Knowledge Management Product Advantage PTC Multi-CAD Design Service Advantage PTC Service Parts Management PTC 3D Design STRATEGIC PLANNING PTC Warranty and Contract Management PTC Global Platforms PTC Global Quality PTC PTC PTC PTC PTC PTC Service Parts Field Service Service Service Enterprise System Pricing Management Depot Validation Requirements Network and Review and Validation Management Management 8
    9. 9. PTC System of Solutions SUPPLY CHAIN AND MANUFACTURING PRODUCT ENGINEERING PTC PTC Global Component and Supplier Software Development Management PTC UDI PTC Manufacturing PTC Process Materials Compliance Management PTC Retail PLM PTC Technical Information SERVICE ENGINEERING PTC Project Management PTC Service Parts Information PTC Global Product Development PTC Service Knowledge Management Product Advantage PTC Multi-CAD Design Service Advantage PTC Service Parts Management PTC 3D Design STRATEGIC PLANNING PTC Warranty and Contract Management PTC Global Platforms PTC Global Quality PTC PTC PTC PTC PTC PTC Service Parts Field Service Service Service Enterprise System Pricing Management Depot Validation Requirements Network and Review and Validation Management Management SERVICE EXECUTION 9
    10. 10. PTC System of Solutions SUPPLY CHAIN AND MANUFACTURING PRODUCT ENGINEERING PTC PTC Global Component and Supplier Software Development Management PTC UDI PTC Manufacturing PTC Process Materials Compliance Management PTC Retail PLM PTC Technical Information SERVICE ENGINEERING PTC Project Management PTC Service Parts Information PTC Global Product Development PTC Service Knowledge Management Product Advantage PTC Multi-CAD Design Service Advantage PTC Service Parts Management PTC 3D Design STRATEGIC PLANNING PTC Warranty and Contract Management PTC Global Platforms PTC Global Quality PTC PTC PTC PTC PTC PTC Service Parts Field Service Service Service Enterprise System Pricing Management Depot Validation Requirements Network and Review and Validation Management Management SERVICE EXECUTION 10
    11. 11. Beyond Technology for Product and Service Advantage SOLUTIONS THAT ENABLE PROCESS TRANSFORMATION: ALM CAD PLM • Industry-leading capabilities SLM SCM Technology • Depth across the product and service lifecycle • Engineered to work better together Process Expertise DEEP UNDERSTANDING OF BUSINESS PROCESSES: • More than 25 years of experience • Technology-enabled best practices VALUE-CENTRIC ENGAGEMENT MODEL: Customer Engagement • Value identification and definition • Technology roadmap planning • Governance model • Process landscape 11
    12. 12. PTC Strength and Presence FINANCIAL STRENGTH FOCUSED ON MANUFACTURING Total Revenue ($ millions) Total non-GAAP operating profits ($ millions) % = YOY growth $1,400 8% $1,300 16% $1,200 $1,100 8% 3% ~3% $400 $350 $300 $250 $1,000 $200 $900 $150 $800 $100 2010 2011 2012 2013 2014 Guidance GLOBAL FOOTPRINT FY 2013 revenue by vertical FY 2013 revenue by region Other: Retail & Consumer: Life Sciences: 10% 4% Americas: Industrial Products: 8% Europe: AP: 41% 37% 22% 30% Automotive: 12% Electronics & High Tech: 18% Federal, Aerospace & Defense: 18% ORGANIZATIONAL STRENGTH STRONG MARKET PRESENCE STRONG COMMUNITY SUPPORT 6,000+ 27,000+ 750+ employees active customers partners 2,000+ 1,456,000+ 10 million employees in R&D active PTC Windchill Seats 1,360+ 1,931,000+ students participating in PTC Global Academic Program service professionals total active Seats 150+ sponsored FIRST® Teams (For Inspiration and Recognition of Science & Technology) Strategic Sponsor 12

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