Download - Competing with SAP using Agile PLM
Competing with SAP using Agile PLM
Gary Goldhawk, VP Agile PLM Sales West Region Jay Graver, Solution
Specialist, Agile PLM Safe Harbor Statement The following is
intended to outline our general product direction. It is intended
for information purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing
decision. The development, release, and timing of any features or
functionality described for Oracles products remains at the sole
discretion of Oracle.
Agenda Strategies to Compete How we beat SAP Agile Differentiation
Agile Momentum in SAP Accounts Analyst Remarks How SAP Positions
Neutralizing Objections Beating SAP at AMO Key Takeaways Q& A
How We Win Strong Business Sponsor 1 Functional Superiority 2
Business needs to overcome objections of IT Build momentum,
confidence of business owners before IT gets too involved 1
Functional Superiority Require detailed use case demonstrations
Include as many PLM business processes as possible 2 Customer
References Make multiple industry references mandatory Educate
customer/prospect to dig into specific details 3 Domain Expertise
Establish PLM and industry credibility early Leverage industry
specific resources 4 d Neutralize SAPs Relationship with IT
Leverage any existing Oracle applications/technology footprint
Reference Agiles presence and success with other SAP customers 5
Agile Differentiation Summary
Differentiator Agile SAP PLM Industry Leadership Strong PLM
Presence PLM market & thought leader in EHT, Life Sciences, CPG
Deeper focus & presence in fewer verticals ERP Centric ERP
Customers positioned as PLM Customers Ships SAP PLM with SAP
Business Suite Broad Business-Ready Applications Complete, Modular
Solution Configurable Business-Ready Applications Broadest PLM
Solution Footprint User friendly Un-integrated, Disjointed Solution
Array of R/3 technology mixed with Netweaver composite
applications;customization required Limited functionality
ie)collaboration, etc. Domain Expertise & Best Practices Strong
PLM Depth Deep domain expertise across engineering AND enterprise
function Industry best practice product lines & apps Limited
PLM Experience Weak in Engineering Little PLM domain experience
Product Network Built & Proven Proven, Heritage Built for
collaboration across enterprise & product network 100s of live
product network customers Dynamic security model Weak cFolders not
well designed for collaboration with suppliers Few collaboration
references Custom security model Customer Success 10x Customer
References Best PLM customer success track record Fastest TTV,
lower TCO, lower risk Examples of SAP PLM replacements Limited Very
few references in North America Most can be neutralized DATA
CENTRIC Data management core to spend intelligence Over 24 million
records per quarter are cleansed, categorized and enriched
INTEGRATED Only solution that integrates hospital purchase order
history with contracts across all purchases.Integrated not enough
to clean your item file.Match to your contracts and in the future
match to other systems like the charge master where you can track
original price to reimburseable price. TRUSTED Independent,
provider-focused third-party providing unbiased view of supply
spend.Also -- guaranteed data protection PROVIDER EXPERIENCE 23
medical professionals including physicians, RNs, pharmacist, DMM
and purchasing personnel with GPO and member business process
experience TECHNOLOGY LEADER Scalable processes, automated tools
& technical infrastructure; CHeS Board Member and Contributing
Editor in development of UNSPSC 41 & 42 segments Agile
Differentiation: Industry Leadership
SAP EHT/Semi Dominant market leader across large enterprise &
SME; owns key EHT segments 850+ PLM customers 100+ new SME
customers Competes within their install base, but has yet to beat
out Agile in head to head Agile has several new customer wins in
Semiconductor Life Sciences Market share leader in Life Sciences
across large enterprise & SME 160+ PLM customers 50+ new SME
customers (last 2 yrs) Some presence in pharmaceuticals Little PLM
presence in discrete manufacturing Consumer Packaged Goods Early
leader in largest un-penetrated market -food & beverage Focused
on food & beverage, health & beauty aids, household goods,
private label retail Makes strong showing in CPG, but has
significant gaps in product line around recipe and formula
management Automotive & Industrial Emerging leader in fastest
growing segments Automotive & Defense Electronics Making play
with IPPE vision Competing with Dassault and UGS for big OEMs Agile
Differentiation: Product Superiority
SAP PLM Business Ready Applications Configurable business-ready
applications Configuration vs. customization approach with built in
best practices Takes 3 screens to change a part Combination of R/3
technology + Netweaver xApps Not user friendly High degree of
customization Takes 28 screens to change a part Time to Benefit
16-20 weeks for typical phase 1 deployment Higher licensing cost,
but lower overall cost of ownership month deployments Lower
licensing cost, but high services requirement Enterprise PLM
Solution Footprint PDM, Supply Chain Collaboration, Quality,
Compliance, Cost Management, Multi-CAD Engineering, Product
Portfolio Management, Analytics Missing Supply Chain, Product
Portfolio Mgmt, Formula Mgmt, Product Quality Adoption High level
of adoption across extended enterprise Engineering, Operations,
Quality, Supply Chain partners Limited Engineering and Supply Chain
presence Example Agile Wins vs. SAP Agile Momentum in SAP Install
Base
Philips Medical recently chose Agile vs. SAP, separately in the
U.S. & Europe, due to Agile speed to implement, OOTB solution
capabilities, and ease of use Large SAP customer chose Agile due to
domain expertise, completeness of PLM solution for food &
beverage, zero footprint client, and lowest TCO Consumer
electronics & innovation leader chose Agile vs. SAP due to
functionality superiority, ease of use, speed of deployment &
proven track record Agile selected to manage product portfolio
processes at leading semiconductor company vs. competition due to
time to benefit & out-of-the-box solution capabilities Analyst
Remarks Gartner's life science clients have praised Agile for its
deep understanding of PLM needs of life sciences, and its support
of Title 21 Code of Federal Regulations (21 CFR) Part 11
requirements out of the box. Most recently, Agile's acquisition of
Prodika gave it comprehensive capabilities for recipe/formula
management, supply chain collaboration, and regulatory compliance
among producers of consumable packaged goods. - Gartner Industry
Report,Nov. 2006 Agile stronger in EHT and Life Sciences - Medical
Products Agile and SAP on short-list in Life Sciences
Pharmaceuticals, CPG Hersheys project scope did not include master
or control recipes, process instructions, or equipment
specifications, which still remain in its legacy
applications.Hershey also customized nutritional labeling, and
avoided workflow which the team found difficult.The implementation
was not without its problems, and the company had several
recommendations for improvements it would like to see from SAP
including improved engineering change to support a rapid change
environment, performance speed for rapid calculations, flexibility
for mass changes, calorie calculations for non-traditional
ingredients, and a more user friendly workbench for users. AMR,
February 2007 Analyst Remarks About Agile About SAP
Manufacturers with large investments in SAP ERP want to extend
their SAP commitment into SAP PLM, but user adoption is often an
obstacle. While SAP PLM continues to mature as a product, adoption,
in many cases, isnt about how capable it is, but if it can be used
easily. AMR, 2/07 Manufacturers report that these solutions (xPD
and xRPM) do not match the capabilities and time to value of
specialty PLM providers SAP PLM customers cite their investment in
SAPs ERP software and value of integrated PLM to streamline such
business processes.However, it will take more investment by SAP and
its customers to realize them. Gartner Agiles software offerings
reflect forward thinking about enterprise-centric PLMAgile is the
first PLM-dedicated vendor to aggressively promote product
analytics and portfolio management. Gartner's life science clients
have praised Agile forits support of Title 21 Code of Federal
Regulations (21 CFR) Part 11 requirements out of the box. Agile's
acquisition of Prodika gave it comprehensive capabilities for
recipe/formula management, supply chain collaboration, and
regulatory compliance among producers of consumable packaged goods.
Gartner Magic Quadrant & Industry Reports, Oct. & Nov. 2006
What SAP Will Position Align with CIO/CFO 1 You Already Own SAP PLM
2
Leverage your strategic vendor. Its all about Netweaver and
composite applications Agile will require another large investment
1 You Already Own SAP PLM Just need to deploy the solution.PLM is
not a standalone system Agile cant meet your goal of an integrated
business platform 2 SAP is the PLM Leader Over 5,000 customers
worldwide Largest PLM footprint 3 Agile Losing Its Focus Oracle
acquisition will be overwhelming Focus will be Oracle EBS customers
Domain experts leaving the company 4 d Agiles Not a Scalable
Solution Point solution for small EHT companies A9 platform has
stability, scalability issues 5 If Losing They will Stall The
functionality you need is on our roadmap 6 SAP PLM Positioning:
Product Superiority
SAP is the most complete enterprise PLM solution Integration of
PLM, ERP, SCM and CRM A Holistic Approach to PLM -- supports all
product life-cycle processes, not just engineering provides
consistent, relevant information on demand, at any time and from
any place, across all departments, and across the extended supply
chain Objection Handling: mySAP PLM is free.
About SAP Manufacturers report that these solutions (xPD and xRPM)
do not match the capabilities and time to value of specialty PLM
providers. SAP PLM customers cite their investment in SAPs ERP
software and value of integrated PLM to streamline such business
processes.However, it will take more investment by SAP and its
customers to realize them. Marc Halpern, Gartner, November 2006 No
PLM Vendor Serves All Manufacturers Equally Well Agile
Position:More than a 1/3 of Agiles largest enterprise customers are
SAP customers who: Couldnt afford to wait for SAP to execute on
their PLM vision. SAP admitted during their last PLM customer
summit to still being 3 years away from a complete PLM offering.
Identified specific functional requirements that SAP could not
satisfy, but Agile could. Were convinced that Agile provided the
fastest time to benefit. Large Customer Examples
Objection Handling: Agile cant meet the needs of large, global
deployments. Large global market leaders continue to chose Agile
PLM Oracle|Agile customers include some of the largest
companies/best known brands in the world, with some of the largest
PLM deployments. Agile products are available and deployed in 6+
global languages. Agile supports Global Product Development SAP has
no references for doing PLM across multiple SAP instances Large
Customer Examples Users Deployment Siemens 17,000+ Users Global
Qualcomm 8,000+ Users Flextronics 10,000+ Users Hitachi 5,000+
Users ZF 6,000+ Users GSK 11,250+ Users Harris d Objection
Handling: Agile PLM wont integrate with SAP ERP as well
Over 1/3 Agile Customers use mySAP ERP Agile good at managing
product record SAP good at managing financial, production, and
customer records Out of box integration with multiple SAP and other
ERP instances. SAP PLM not seamlessly integrated w/SAP ERP Using
NetWeaver to integrate its own disparate products Involves multiple
technologies (R/3, composite applications, etc.) Difficult to
integrate with multiple instances of SAP More difficult to
integrate with other ERP (other divisions etc) Requires high cost
of customization and support to fill functional gaps
(collaboration, etc) We also continue to see deployments that
include expensive-to-maintain customizations in areas like labeling
and reporting, and have yet to find an instance where recipe
management at the ERP level is tightly coordinated with recipe
management at the plant level, particularly in automated
environments. Manufacturers with large investments in SAP ERP want
to extend their SAP commitment into SAP PLM, but user adoption is
often an obstacle it isnt about how capable it is, but if it can be
used easily. Michael Burkett, AMR, Feb. 2007 SAP PLM 2007
Conference Is All About Usability - Mathias: I have added the Using
SAP PLM eliminates need for ERP-PLM interface statement. Sample of
Joint Agile & mySAP ERP Customers Success Story: Beating SAP at
AMO
Customer Business Issue: Grew to $1B in revenue through acquisition
Increased pressure to accelerate number and timing of NPIs
Implementing global collaborative design and manufacturing across
26 sites with a single contract manufacturer Multiple sites
maintaining regulatory documentation increased regulatory
compliance risk SAP Offering: SAP installed for ERP, PLM is free
Agile Offering: Product Collaboration, EDA and MCAD integrations,
Advanced Visualization, integration to SAP ERP $1.3 M software and
$1M services Success Story: Beating SAP at AMO
SAP Strategy: Aligned with the CIO reporting to CFO, pushed SAP is
free Deloitte team doing ERP implementation supported this position
with the CFO/COO Did not engage with the business until it was
clear they were losing When pushed, attempted to show CAD
integration Could not provide a referenceable customer in Life
Sciences in the USA, provided one reference in Germany who was
using c-folders only CIO and Deloitte fought for SAP until the end
CIO had to work with Agile after the business formally stated their
findings and refused to consider SAP PLM further Success Story:
Beating SAP at AMO
Agile Strategy: Avoided CIO and engaged SVP Ops, VP QA, VP
Clinicals & RA, 5 VPs of R&D, Directors in Packaging
Engineering, Components Engineering, Manufacturing, Managers in all
functions including Doc Control Sold ability to solve their
specific issues: Easy of use, adoption by R&D & all
engineering functions Ability to securely collaborate across 26
global sites Single repository for regulatory records, controlled
change and compliance with security Provided 32 references called
over 10, validated Agiles message with proven implementation
success Forced a functional bakeoff through the business The
business groups refused to use SAP after the bakeoff Free PLM
software TCO argument died we sold if you dont get adoption of the
solution, you wont get the ROI PLM provides thus SAP is Higher TCO
than Agile even though its no software cost Key Takeaways You can
use Agile PLM as a competitive advantage to beat SAP at any product
company Expect to compete with SAP for PLM only in their install
base We need to win the confidence and support of the business for
these opportunities SAPs PLM message will sound just like ours
Detailed use case demonstrations are required to educate the
customer Make customer references a requirement SAP is still at
least 3 years behind in product functionality Leverage your
Industry/PLM domain experts Key PLM Resources @ Oracle
NA Specialty Sales Teams Kevin KennedyVP PLM Sales Frank
MouthaanDirector PLM Pre-Sales Global Sales Support Bill Welch
Solution Architect Dir. IBU PLM Experts Dave ParsinSr. Dir. High
Tech Todd HeinSr. Dir. Life Science Bernard GoorSr. Dir. Consumer
Goods PLM Marketing Chris FarinacciVP PLM Marketing Sarvesh
JagannivasVP PLM Product Mkt. Questions 22 Oracle