Transforming your business withproduct lifecycle management

Your products hold the key to innovation, leadership and top-linefinancial growth. Unite your enterprise around product and processinnovation. Unleash the hidden power your product lifecycle –from concept design to product development, launch and retirement.

www.siemens.com/plmSiemens PLM Software

Siemens PLM Software

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Shaping our companies for today’s megatrendsby establishing Global Innovation Networks.

We live in a time of change, where the way we do businessand the products we make are heavily influenced by now andfuture megatrends. Globalization and the unparalleled demandfor customized products have been joined by constantlyaccelerating technology to spawn the complexitiesof our day.

Globalization has flattened today’s business landscape. It givesus more competitors, as well as more customers. It complicatesour processes by presenting a dizzying array of options andalternatives – but it empowers us with the chance to choosefrom the best of the best. It threatens to slow us to a snail’space while making it possible to work faster than ever before.

The rising demand for customized products is anotherphenomenon of our times.Today’s buying public – whetherthey be companies or consumers – want to satisfy their ownpreferences when they purchase our products.They expect toget exactly what they want for a price they are willing to pay.It doesn’t matter to them that mass production was the drivingforce behind today’s affordable goods. In an economy formed bychanging demographics, demanding buyers have no difficultywaiting for solutions like mass customization even if they don’tknow what it’s called.

How product makers manage this complexity and navigate theirway to the future will determine our mutual fortunes.

At Siemens PLM Software, we believe that innovation is thekey to mastering complexity. Innovation enables each of us tobe a trendsetter. It gives our processes and our factories theflexibility we need to put our customers first. It lets us actglobally and win locally.

Siemens PLM Software also believes that Global InnovationNetworks are mission-critical systems that every company needsto master complexity. Global Innovation Networks leverage thetotal supply chain to provide the right approach for speedingproducts to market.They power the processes we use toautomate product development and production.

They give us immediate access to the right knowledge we needfor making the right decisions to meet today’s and tomorrow’smegatrends.They enable us to deliver more customizedproducts, innovate more effectively and grow our earnings ataccelerated rates.

Innovation never sleeps

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While manufacturers have achieved significant efficiencies in recentyears by automating and outsourcing back-office functions, it isno longer possible to cost-cut your way to long-term growth.In today’s highly competitive global markets, you need to generategrowth through continuous product and process innovation.This level of innovation requires dramatic improvements in theway you develop, manufacture and support your products.

Industry statistics indicate that there is a lot of work to do.

• Products that represent 75 percent of your revenues will beobsolete by 2010

• Eighty six percent of new product ideas never make it to market

• Of those that do, 50 percent to 70 percent fail

For the world’s most forward-thinking companies, the way tosustained market leadership lies in product and processinnovation.These companies organize their operations so thatinnovation can flourish by building Global Innovation Networks –collaborative environments capable of turning ground-breakingideas into winning products and services ahead of the competition.

Global Innovation Networks provide you with a transformationalbusiness model.These networks unite your global partners,suppliers and customers in a continuous process of innovation.They allow breakthroughs to originate anywhere at any time byproviding your product teams with the means to elevate, evaluateand commercialize their best ideas.

Product lifecycle management, or PLM, is the digital platform thatcompanies use to build their Global Innovation Networks. PLMenables you to distribute your operations so that you can innovateat every stage of your product lifecycle and across your entirevalue chain.With PLM in place, companies are able to meet fivekey business requirements:

• Increase the yield on product and process innovations

• Compress time-to-market

• Address dynamic business constraints and regulatoryrequirements in ways that reduce cost

• Optimize resources to increase efficiency

• Maximize the advantages of globalization

As the world’s leading provider of enterprise-class PLM solutionsand the acknowledged leader in Global Innovation Networks,Siemens PLM Software offers a portfolio of solutions andexpertise that can put your company on the road to innovation.

Global innovation drives top-line growth

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An enterprise PLM strategy based on information, integrationand collaboration is fundamental to Global Innovation Networks.Such a strategy unites multiple constituencies, includingengineering, manufacturing, marketing, packaging, training andsupport, through an open yet secure digital environment.

The promise of PLM lies in uniting disjointed partners arounda shared base of product knowledge, enabling you to innovateas one company. For example, unlike ERP, PLM integrates datafrom many siloed databases and engages people from differentbusiness functions and different organizations dispersed aroundthe world. PLM provides a means for establishing coherent,repeatable processes, as well as managing consistent andaccurate information across a product lifecycle that rangesfrom ideation to product retirement.

When you transform your innovation processes through PLM,you can achieve the next level of business value – top-linefinancial growth fueled by successful products and streamlinedoperations all along your value chain.

This transformation can affect your entire business. It can driveyour partner, supplier and customer relationships on a globalbasis, increase the productivity and agility of your innovationcycles and improve the efficiency of your product launch andmarket uptake – all of which contribute to profitable growth.

What is PLM?Product lifecycle management is an integrated, information-driven strategy that speeds the innovation and launch ofsuccessful products. It is built on common access to a singlerepository of all product-related knowledge, data and processes.As a business strategy, PLM lets distributed organizationsinnovate, develop, support and retire products as a single entity.It captures best practices and lessons learned, creating astorehouse of valuable intellectual capital for re-use.

As an information technology strategy, PLM establishes a coherentdata structure that enables real-time, virtual collaboration anddata sharing among geographically distributed teams. PLM letscompanies consolidate multiple application systems whileleveraging existing investments during their useful lives.Throughopen APIs and adherence to industry standards, PLM minimizesdata translation issues while providing users with informationaccess and process visibility at every stage of the product’s life.

Product lifecycle management delivers real resultsManufacturers who have embraced PLM are realizing itsbenefits today.

One of the most respected brands in heavy-duty trucks reduceddirect and indirect labor costs by 30 percent on a new plant startup

The first fully integrated, pan-European defense firm createda single unified operating intellectual property structure

One of the world’s most prestigious aerospace firms achieved50 percent savings in engineering and 80 percent savingsin manufacturing

A global auto manufacturer achieved $1 billion in annual savingsand reduced cycle time from four years to one

One of China’s leading manufacturing companies reducedengineering changes by 70 percent on large assemblies of upto 10,000 components

A leading women’s fashion chain is reducing the time neededto take a design from initial sketch to finished item (excludingshipping times) by up to 30 percent

PLM powers your Global Innovation Network strategy

“Traditional innovation models, which rely exclusivelyon in-house inventions and an own-and-protectapproach to intellectual property, are obsolete...To crank out innovative products that expand the topline, manufacturers are adopting a new market modelcalled ‘Innovation Networks.’ ”

Navi RadjouForrester Research, Inc.

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Siemens PLM Software guides you on the road to innovation

Becoming an innovation-driven company is a process thatinvolves your entire value chain – from design, manufacturingand production to strategic partners, key suppliers and customers.It requires a long-term executive commitment.

When you work with Siemens PLM Software, you can moveforward strategically while achieving near-term results. An open,standards-based portfolio of PLM solutions spans the productlifecycle and establishes a platform for innovation. As you addressspecific business issues, you build a solid foundation for futuresuccess. Along the way, you will recognize signs that you are onthe road to more innovation and measurable growth...and wellon your way to meeting five key business requirements.

Increase your yield on innovation by delivering morepersonalized productsSiemens PLM Software facilitates rapidinnovation by providing a virtualenvironment that lets you vetnew product ideas againstquickly rising customerrequirements and costeffective manufacturability.Global cross-functional teamscollaborate in real-time on theideation process, each contributingtheir unique experience and perspective.Knowledge and “lessons learned” arecaptured for potential re-use in a process of continual innovation.

• Direct your investments to winning ideas early on

• Be first to market with the right product for the right marketsegment at an attractive price

• Maintain higher margins for longer time periods

• Manage R&D expenses as a percentage of revenue

Compress time-to-marketSiemens PLM Software’s project and portfoliomanagement tools help your teams manageperformance against goals. You canpresent everyone from programmanager to CEO with a graphicalview of the state of your programor process at any point in time.Drill down to specific processes, partsor suppliers to understand what’s workingand what isn’t.

• Eliminate 60 percent of development cost at risk of being wasted

• Establish lean processes across your product lifecycle

• Compress review cycles through real-time collaborationand feedback

• Minimize engineering rework

Address business and market requirementsSiemens PLM Software helps you avoid non-compliant components and conditions thatcan prevent your product from being soldinto new markets. Automate the systemsand processes you use to createdocumentation that demonstratescompliance with governmentregulations and customerrequirements.

• More cost effectively manage product-related documents required for regulatorycompliance

• Reduce business risk through managed compliance processes

• Ensure that required product capabilities are tracked across yourproduct lifecycle

“The key to success in a hypercompetitive marketplaceis orchestrating and synchronizing collective growth.It’s building teams and relationships across a valuechain that is effectively smarter than the sumof its parts.”

William A. Fisher, PhDProfessor of Technology ManagementIMD

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PLM drives success across industriesPLM contributes to the success of Siemens PLM Software’s customersacross many industries, including:

Aerospace and defense“We’ve been able to reduce time-to-market from five yearsto two-and-a-half.”

Automotive“Products that once took four years to design and build arenow being created in 18 to 21 months.”

Consumer products“The new PLM system has taken two weeks out of an eight-week process…we are confident of an annual increase in salesas a direct result of reducing stock shortfalls and overruns.”

High tech and electronics“We compete in an industry where time-to-market is a key driver.With PLM tools we reduced our change processes by 75 percent,which is a very big benefit to us in speeding time-to-market.”

Machinery“The average time for engineering change notificationshas been cut in half.”

Medical devices“Information access at remote sites has shrunk from daysto seconds.”

Optimize resources to increase efficiencyFor a wide range of manufacturers, re-useof intellectual capital translates into fasterresponse times to customers andmarkets, as well as into improvedquality. Siemens PLM Software’ssolutions let you capture andre-use the ideas, processes,resources, skills, designs, components,documentation and sourcing relationshipsthat differentiate your company.

• Standardize product and process informationon common platforms

• Increase revenue contribution through derivative products

• Improve product assembly and service times

• Reduce ongoing support and warranty costs

Maximize the advantages ofglobalizationNew sources of innovation frequentlycome from global partners,suppliers and customers.Siemens PLM Software’senterprise class PLM portfoliosupports a “design anywhere, buildanywhere, support anywhere” strategy.By using PLM to establish a highly secure,real-time digital environment that is “always on,”you can unite individuals at every level in a widelydistributed organization.

• Expand your sources of innovation to include partners,suppliers and customers

• Proactively manage global requirements

• Facilitate strategic sourcing for cost and quality advantage

• Align product development with local or regional trends

Regardless of your industry, key product-centric business initiativesrepresent the best opportunities for transforming your processof innovation.They are:

New product development and introductionDesign, simulate, validate and manufacture innovative productsby establishing real-time, global collaboration capabilities for thepeople and processes involved in your R&D, product planning,development and launch activities.

Value chain synchronizationRespond effectively to global demand by optimizing the exchangeof ideas, as well as product and process information, among allplayers that participate in every stage of your value chain.

Enterprise data managementLeverage your physical and intellectual assets for greatercompetitiveness by managing and providing secure access tocritical product and process data over the life of a product.

Commonization and re-useCreate efficiencies and foster best practices from engineering tomanufacturing, purchasing and sourcing, marketing and supportby re-using proven parts, assemblies, equipment and processes.

Knowledge and IP managementContinually improve product and process developmentby capturing and automating the knowledge of your expertemployees.

Regulatory complianceMitigate risk and achieve compliance by ensuring adherenceto environmental, safety, financial and governmental regulationsearly in the design cycle and by automating data collectionand reporting.

Production efficiencyIncrease production flexibility, performance and quality byintegrating product design with process design and productioninformation in your manufacturing best practices.

System engineering and mechatronicsOptimize product performance, integration, quality and reliabilitythrough analysis of interdependent mechanical, electrical andsoftware subsystems, constraints and components.

Siemens PLM Software is making considerable investments inthese initiatives to support every customer’s transformationstrategy. Start down the road to innovation by selecting theinitiative that promises the greatest near-term value to yourcompany. Over time, you will want to address all eight initiativesto achieve the full promise of PLM.

Investment initiatives pave the way to transformation

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To establish a truly effective Global Innovation Network, yourinformation technology strategy must be built on a coherent datastructure that enables real-time, virtual collaboration and datasharing among geographically dispersed teams. It must managethousands of versions, and tens of thousands of engineeringchanges, to ensure that decisions are based on accurate data.

Siemens PLM Software provides an enterprise-scale PLM platformthat establishes a common data structure through which allproduct-related data can be readily shared in real time.Thisplatform provides a unified data management architecture foraggregating product-related information.

By uniting teams in a single shared environment, Siemens PLMSoftware solutions ensure efficient communication and reliableexchange of product and process information with partners,suppliers and customers.

• Reduce total cost of ownership for product-related systemsand data

• Minimize cost and time associated with software maintenanceand upgrades

• Ensure data accuracy across your value chain

• Minimize routine, non-value-added efforts

• Maximize efficiencies

• Foster continuous improvement in products and processes

Siemens PLM Software’s open architecture uses an “open-by-design” strategy that supports XML-based interoperabilitybetween Siemens PLM Software product offerings and otherbest-of-breed design and manufacturing tools.Through open APIsand adherence to industry standards, Siemens PLM Softwareminimizes data translation issues while providing fast informationaccess supporting effective decision-making at every stage of

a product’s life.

Global Innovation Networks require an open architecture

“Companies that… improved product innovation havereported tangible benefits (with) a visible impact onbalance sheets and income statements. Reportedproduct revenue improvements averaged 19 percent...plus an average 16 percent reduction in productdevelopment costs.”

Jim BrownThe Product Innovation Agenda Benchmark Report, 2004

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Siemens PLM Software is recognized as a visionary leader in providingboth the PLM platform for Global Innovation Networks and superiorproducts that support all stages of the product lifecycle – from initialrequirements planning to product definition, production, distribution,maintenance and repair.

Siemens PLM Software offers the broadest scalable portfolioof products on the market today for both large enterprises andmid-market companies. By providing a digital environment forcollaboration across your organization, these products help youinnovate more and innovate faster while optimizing yourresources and addressing business constraints.

Digital product development, featuring applications like NX®

software and Solid Edge® software, lets you establish a holisticapproach to product development and introduction thatstresses knowledge capture and re-use in a managed developmentenvironment. Visibility into information, programs and processesleads to greater flexibility, responsiveness and efficiency.Embedded real-time simulation enables you to design inperformance and quality and drive product innovation.

Digital manufacturing, featuringTecnomatix® software andrelated products, combines knowledge management withprocess improvement in a virtual environment that lets youoptimize the quality, process, plant, resource and simulationaspects of your manufacturing operations. Improved collaborationand control of manufacturing operations ensures the economicsuccess of innovative product designs.

Digital lifecycle management, featuringTeamcenter® software enablesthe world’s largest organizations to engage all parts of their businessin the introduction of successful new products. Integrated ideacapture and management, real-time conferencing and project andportfolio management tools are combined with industry-leadingproduct design and development solutions in a single, sharedsource of product and process knowledge.

UGSVelocity Series™ addresses the needs of mid-sized manufacturerswhose PLM requirements are emerging and who want to establisha digital environment that can evolve as they grow.

Solutions from Siemens PLM Software enable Global InnovationNetworks to thrive. They have been widely adopted because oftheir high performance, interoperability and depth of embeddedindustry knowledge. Siemens PLM Software’s open, standards-basedapproach has been called a “Global Innovation Network” in its ownright, enabling customers to implement solutions that meet theirunique needs.

By working with Siemens PLM Software, you can achieve top-linegrowth with winning products that keep you out in front ofyour competition.

Siemens PLM Software provides open, scalable innovation solutions

Siemens PLM Software – your partner for today and tomorrow

Independent product and production lifecycles

Unified approach to product and production lifecycle management

Proven success for todaySiemens PLM Software provides unparalleled best-practice solutionsproven time and again in the marketplace. Its highly scalable androbust technology enables customers to seamlessly expand theirimplementations from 1,000 to 10,000 to 50,000 seats. Customersthat use the company’s implementation services have been able toupgrade their enterprise installations over a weekend, withoutaffecting productivity.

Siemens PLM Software’s mantra is clear:we never let a customer fail.

• The average tenure of the company’s top 100 customers is 18 years

• Eight of the top 10 aerospace contractors and 9 out of 10automotive OEMs standardize on Siemens PLM Software

• Ninety percent of companies with more than 1,000 collaborativedevelopment seats rely on Siemens PLM Software

• Siemens PLM Software manages or creates more than 40 percentof the world’s 3D data

Moving toward a unified product and production lifecycleSiemens PLM Software was forged from the best of the best.Part of the company’s legacy comes from UGS, repeatedly recognizedas providing the best software for managing the product lifecycle.The other part comes from Siemens, internationally renowned asthe best provider of production automation and manufacturingexecution systems for managing the production lifecycle.

In today’s business environment, you can sometimes beat thecompetition just by being fast in product development.Or byoutperforming your competitors in manufacturing. But in the nottoo distant future, being fast in only one domain will not be enough.

In the flat world forged by globalization, you will not only have tobe first to market but right to market as well. There was a timewhen companies adopted productivity tools to improve the efficiencyof individual product development and production processes.But operated independently, these technologies soon will peak interms of their ability to break down the complexities that slowyour operations and diminish your right-to-market confidence.

With this in mind, Siemens PLM Software believes that everycompany needs to unify its product and production lifecycles sothat innovative products can be delivered faster and with moreconfidence to ever more demanding customers.

We would like partner with you as you look to achieve profitabletop-line growth through superior product lifecycle management – aswell as ready yourself for a more challenging future.We are eager tostart working with you today.

© 2007. Siemens Product Lifecycle Management Software Inc. All rights reserved. Siemens and the Siemens logo are registered trademarks of Siemens AG. Teamcenter, NX, Solid Edge,Tecnomatix,Parasolid, Femap, I-deas, JT, UGSVelocity Series, Geolus and the Signs of Innovation trade dress are trademarks or registered trademarks of Siemens Product Lifecycle Management Software Inc.or its subsidiaries in the United States and in other countries.All other logos, trademarks, registered trademarks or service marks used herein are the property of their respective holders.

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About Siemens PLM SoftwareSiemens PLM Software, a division ofSiemens Automation and Drives (A&D),is a leading global provider of productlifecycle management (PLM) softwareand services with 4.3 million licensedseats and 47,000 customers worldwide.Headquartered in Plano,Texas, SiemensPLM Software’s open enterprise solutionsenable a world where organizations andtheir partners collaborate through GlobalInnovation Networks to deliver world-classproducts and services. For more informationon Siemens PLM Software products andservices, visit www.siemens.com/plm.

Division headquarters

United StatesGranite Park One5800 Granite ParkwaySuite 600Plano,TX 75024972 987 3000Fax 972 987 3398

Asia-PacificSuites 6804-8, 68/F., Central Plaza18 Harbour Road,WanChaiHong Kong852 2230 3333Fax 852 2230 3210

EuropeNorwich House Knoll RoadCamberley, SurreyGU15 3SYUnited Kingdom44 1276 702000Fax 44 1276 705150

AmericasGranite Park One5800 Granite ParkwaySuite 600Plano,TX 75024800 498 5351Fax 972 987 3398

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Siemens PLM Software leads togreater innovationThere is no single road to innovation, but thereare signs you’re headed in the right direction.Leading innovators get to market faster,managecompliance, optimize resources and achieveglobalization. They’re also four times morelikely to use PLM software to plan, define,build and support their products. SiemensPLM Software’s family of PLM solutionshelps businesses establish Global InnovationNetworks that transform their processof innovation.Drive your businessto greater innovation andaccelerate your growth.

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