state of the cpdm industry - mcadcafe" your business objectives and drivers are clear to you #...

Copyright © 2001 by CIMdata, Inc.

®

State of the cPDmIndustry

April 2001

Copyright © 2001 by CIMdata, Inc. - 2

Topics

! Define your vision and move" Industry investments explode" Suppliers scramble for position


Vision NecessityIt is imperative to have a clear vision for your program

" Where are you headed – as a company,and for product definition?

" Establishment of a vision is critical# To guide decisions# To provide measures of success

" Many companies lack this basicrequirement

" Your vision is a dynamic view of thefuture – continuous evolution


Vision AlignmentBusiness objectives must drive your vision and programs

" Your business objectives and drivers areclear to you# Globalization, supply chain collaboration, …# Executive directions align with these drivers

" Your vision must align with your businessobjectives# Not with technologies or “in-vogue” programs# Warning: “e”-business isn’t your objective,

it is a vehicle to help achieve your objective


Vision Scope & FocusYour vision must be broad in scope, but achievable

" Your vision must be broad in scope# Must provide long-term strategic direction# Otherwise you will have another legacy program# Solve a business problem, or just a symptom

(i.e., cure the disease, not just the fever)

" Scope of the full product definition lifecycle# Complete product lifecycle, extended enterprise,

all product components, digital manufacturing

" Goal must be a stretch, but achievable


cPDm and Your VisioncPDm is the business approach for defining your vision

" cPDm focuses on management of the fullproduct definition lifecycle# Broad-scope view of product definition

" cPDm is a business-focusedprogrammatic approach# Incorporates multiple technologies, and is NOT

one of them# Incorporates multiple methodologies and best

practices# A total program, not just a vendor offering


Supplier CapabilitiesSuppliers are providing significantly improved offerings

" Enhanced technologies AND services" Your expanded view of product definition

# Drives technology suppliers to deliver more– Developing broader technologies/methods/etc.– Acquisitions/mergers to expand their offerings– Bringing technologies and methods together to be more

effective

# Drives services suppliers to provide more support– Best practices, implementation approaches, etc.– Drive implementations


Supplier LimitationsThere is no “one size fits all” solution

" Hype about approaches is confusing" You can buy “off the shelf” technologies,

but not solutions" “Best practices” solutions provide a start,

but need your molding# What position do you play in your industry# Build on your competitive strengths

" Role of consultants and integrators# knitting together solutions


Program LimitationsMultiple problems can keep you from being successful

" Competing internal programs" Lack of executive support/commitment

# Aligned with major business objectives# Ongoing support is needed, not just at the start

" Poorly focused vision and program# Too narrow – another legacy# Too broad – never achieve objectives


Priority ActionsGet your vision established, and program launched NOW!!

" Support continues to improve dramatically# Suppliers of services and technologies

" Investments reflect these improvements# Don’t expect all investments to be successful# Leverage lessons from all investments# Utilize your partners to cooperatively invest in

driving your approach# In either “down” or “up” economies,

these investments are a competitive necessity


Topics

" Define your vision and move! Industry investments explode" Suppliers scramble for position


-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

$ M

illion

Services

Software

cPDm Market InvestmentTotal investments – software + services


cPDm Market InvestmentTotal investments by industry

-

100

200

300

400

500

600

700

800

900

Electro

nics/

Teleco

mTran

sport

ation

Aerosp

ace

Mecha

nical

Machin

eryOthe

r Disc

rete M

fg.Petr

oche

mical

Other P

roces

s

Utilities

All Othe

r Indu

stries

$ M

illion

19961997199819992000


cPDm Market InvestmentTotal investments by geography

-

200

400

600

800

1,000

1,200

1,400

North America Europe Asia Pacific Other

$ M

illion

19961997199819992000


Topics

" Define your vision and move" Industry investments explode! Suppliers scramble for position


2000 Market ShareMajor categories of cPDm suppliers

" Major implementations often utilizetechnologies/services from all categories

Comprehensive Technology Providers

48%

Visualization and Collaboration

7%

Specialty Applications

15%

Integrators and Resellers

30%


cPDm Supplier EvolutionSuppliers change to adapt to a changing market

" Consolidation increases# Ariba-Agile, UGS-EAI, SDRC-Sherpa, …

" Market casualties# Motiva, Optiwise, …

" Market positioning challenges# Many examples


cPDm Supplier SituationComprehensive cPDm technology suppliers

" Industry “mindshare” dominated by a fewvendors# SDRC, PTC, IBM/Enovia, SAP, UGS, MatrixOne,

Agile, Intergraph*

" Some suppliers show rapidly increasingpresence# Smart Solutions, Eigner+Partner,

NEC, Fujitsu, LASCOM, Cyco

" New major suppliers enter market# Oracle, …


2000 Market RevenuesComprehensive cPDm technology suppliers

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

SAP

PTC

SDRCIBM (E

novia

)

UGS (inclu

des E

AI)Matr

ixOne

Interg

raph

Ariba (

Agile)

NECEign

er + P

artne

r Su

pplie

r Rev

enue

ServicesSoftware


2000 Market PresenceComprehensive cPDm technology programs

Market presence = all end-user revenues driven by software; from developer,or VARs/S.I.s (no double-counting)

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

SDRC

SAP

MatrixO

ne PTC

UGS (inclu

des E

AI)IBM (E

novia

)Int

ergrap

hArib

a (Agile

)Eig

ner +

Partn

erSmart

Solutio

ns

Partner RevenueCore Revenue


2000 Market PresenceComprehensive cPDm technology suppliers

Market presence = all end-user revenues driven by software; from developer,or VARs/S.I.s (no double-counting)

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

SDRC

SAP

MatrixO

ne PTC

Dassa

ult

UGS

Interg

raph

Ariba (

Agile)

Fujits

uEig

ner +

Partn

er

Partner RevenueCore Revenue


cPDm Supplier SituationSystems integrators drive investments

" Major systems integrators become highlyvisible# Substantial growth in 2000# Accenture, IBM-IGS*, PwC, EDS, CSC,

Cap Gemini E&Y, Atos Origin, Siemens-SBS, …

" Regional/focused systems integrators# gedas, EADS Matra Datavision, Technia, …


2000 Market RevenuesSystems integrators

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

Accen

ture

IBM-IGS

EDS

Pricew

aterho

useC

oope

rs

Siemen

s Bus

iness

Serv

ices

KPMG Pea

t Marw

ick CSC

Hewlet

t-Pac

kard

Consu

lting

Fujitsu

SES

CAP Gem

ini E

rnst &

You

ngAtos

Orig

in


cPDm Supplier SituationCollaboration/visualization suppliers are key

" Collaboration and visualization impactcontinues to grow# Leverages major implementations# Delivers visible benefits … quickly# A “hot” topic – major investment expected

" Suppliers have wide range of offerings# EAI (UGS), CoCreate, Centric, …# Cimmetry, Spicer, …


2000 Market RevenuesVisualization/collaboration suppliers

0

5

10

15

20

25

30

35

40

45

50

UGS EAI

Centric

Soft

wareCim

metry S

ystem

s

CoCrea

teAlve

ntive

(VDS)

Spicer

PTC/D

ivision

Inform

ative

Graphic

s

Actify

iEngine

er.co

m$

Milli

on

ServiceSoftware


2000 Market SuppliersSome of the other major suppliers

" Some other suppliers target specificmarket segments, and are quitesuccessful

" Market examples:# CSM, SRM, content management, configuration

management, …

" Supplier examples:# i2, Documentum, FileNet, PartMiner,

Paradine, …


SummaryWhat does this all mean to you …

" You need a solid vision to guide yourprogram decisions

" cPDm offers a business approach fordefining your vision

" cPDm investments are rapidly increasing" Suppliers are scrambling for position" cPDm is a competitive necessity now …

… you can’t afford to delay

state of the cpdm industry - mcadcafe" your business objectives and drivers are clear to you #...

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