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1 Transforming the process of innovation in high tech and electronics Siemens PLM Software Industry leading high tech and electronics companies are implementing product lifecycle management (PLM) to succeed and grow in a demanding global marketplace.their goals are to bring profitable new ideas to market ahead of the competition while increasing both revenue and market share.

2 Industry challenges High tech and electronics companies face a variety of challenging business imperatives. Companies must develop and deliver products that are both highly innovative and cost sensitive while competing in a distributed global marketplace. They continue to be squeezed by aggressive price points, product design complexities, regulatory requirements and technological change. In turn, these pressures threaten to erode profit margins, contribute to commoditization, complicate the manufacturing process and slow the take-to-market cycle. Companies that aspire to leadership in the high tech and electronics industry need to: Increase product innovation so that they can bring new products and new technology to market faster Improve program profitability by employing effective cost management techniques Encourage worldwide development excellence by leveraging global innovation networks Integrate regulatory compliance more efficiently into their lifecycle processes instead of handling it as an isolated event Effectively manage the global manufacturing supply chain to meet such core business requirements as on-time, on-cost and on-quality product delivery In order to make innovation work, it has to be made a priority and integrated throughout the organization. Elaine Dundon The Seeds of Innovation

3 Business imperatives for high tech and electronics companies Today s most forward-thinking high tech and electronics companies are building global innovation networks that enable them to continuously improve their products and processes and organize their value chain so that innovation can flourish.these networks empower organizations to meet the following business imperatives. Increasing the yield of innovation. Innovation can make or break a high tech and electronics company. Better products, technology advances and streamlined development/manufacturing processes illustrate how innovation can deliver business value in different ways. Compressing time-to-market. High tech and electronics companies are driven by the need for speed. Global innovation networks enable companies to analyze their processes, designs and/or suppliers to determine whether they work effectively in speeding products to market. > Facilitate global collaboration through the use of innovation networks Meeting business and regulatory requirements. Meeting compliance mandates is not an option for high tech and electronics companies it is an imperative. Existing mandates already ban the use of hazardous substances and require recycling. Global innovation networks enable companies to approach compliance as a strategic initiative rather than as just a reporting activity thereby building regulatory compliance directly into all phases of the product lifecycle. Optimizing resources. Global competition is shrinking the window of opportunity for companies to recoup their intellectual property investments. Global innovation networks enable companies to optimize their resources to achieve cost and quality targets essential for time-sensitive opportunities. Maximizing globalization advantages. By enabling a worldwide ecosystem of employees, partners, customers and contract manufacturers to launch products in today s marketplace, global innovation networks minimize operational risk, reduce variability and drive process improvement. Connect people globally Capture knowledge through collaboration Structure and manage knowledge for re-use 1

4 Initiatives for the high tech and electronics industry Siemens delivers solutions that drive innovation in the high tech and electronics industry through strategic initiatives that leverage Siemens PLM Software s experience and its customers best practices. Get to market faster by accelerating new product development By enabling product developers to apply transformational ideas to new products and their related take-to-market processes, new product development initiatives help high tech and electronics companies attract new business and increase market share. Siemens provides the following best practices and initiatives for improving new product development. Facilitate phase gate and deliverable management with program planning and control, thereby enabling stakeholders to make better product decisions Improve product design iteration and evaluation with concept modeling, shape and layout Perform platform and model option management with lifecycle product management and detailed engineering options and variants Reduce design iteration and the need for physical prototypes with digital simulation and validation Ramp up to full production readiness with manufacturing process optimization > Accelerate new product introduction and ensure program profitability Manage costs through resource utilization Because price reductions continue to pressure today s margins, high tech and electronics companies must increase the yield of the product development process to ensure successful and profitable product launches. Siemens solutions allow product makers to manage costs, improve quality and increase productivity by providing the following functionality. Manage development resources/costs and real-time updates with program planning and control Facilitate commercial part and vendor management with lifecycle product management Leverage supplier-provided intellectual property throughout the development environment with real global supply chain mangement Reduce development costs with digital simulation and validation Leverage design data downstream with tool design and machining to reduce manufacturing planning costs Reduce product run costs with manufacturing process optimization Ramp up to full-scale production with manufacturing execution 2

5 Achieve global development excellence Today s high tech and electronics companies require a collaborative environment that enables their value chains to rapidly implement new ideas for business improvement. Siemens solutions enable product makers to manage their extended value chains by applying the following functionality. Facilitate partner and supplier selection early in the development lifecycle with program planning and control Manage the access and distribution of product information with global supply chain management Provide visibility to outsourced manufacturing operations, including consumption and status monitoring, with outsourced manufacturing management Reduce environmental compliance risk Almost all of the world s leading economies have adopted environmental regulations that require compliance by high tech and electronics companies. Regulatory compliance is a core element in the Siemens solutions portfolio. As a result, Siemens solutions enable companies to become compliant and remain compliant by supporting the following processes. Establish a business strategy for environmental compliance, including the ability to manage requirements, program milestones and deliverables, with compliance strategy and reporting while ensuring that selected parts and their suppliers comply with company and internationally driven requirements Ensure that designs meet recyclability and disassembly compliance requirements with design simulation and validation Identify lead-free components, facilitate inventory management and perform process verification, which are crucial for supporting manufacturing for compliance > Foster creativity and drive innovation throughout an extended value chain With more than 50 percent of planned orders...requiring compliant parts, manufacturers must take action now to safely error-proof their processes while transitioning inventories and demonstrating compliance. Simon Jacobson AMR Research 3

6 Innovation across the Production planning Product development Product planning Ideation and concept development Portfolio planning 4

7 entire product lifecycle Product launch and validation Volume production Product sustainment Obsolescence planning 5

8 Comprehensive support for high tech and electronics business processes Leading high tech and electronics companies are implementing Siemens solutions to achieve the highest levels of innovation and business value. Siemens PLM Software provides the most comprehensive series of solutions available.these solutions are built on a rich set of knowledge management, process management and collaboration capabilities that Siemens has derived from its experience as the world s leading provider of product lifecycle management (PLM) technology. Siemens solutions for the high tech and electronics industry enable companies to inject innovation into their product development, lifecycle management and manufacturing processes. Digital product development Siemens s digital product development solutions provide productionproven applications and automation tools that allow companies to manage, automate and optimize all aspects of product development, including support for the following digital product development processes: Concept and layout greatly enhance the decision making process by turning 2D ideas and concepts into 3D models that can be leveraged in early feasibility studies and the development of engineering platforms. Shape design and refinement enables designers to quickly refine the design concept by using sophisticated modeling, analysis and visualization tools. Detailed engineering, including the management of options and variants, provides advanced tools for rapid design and validation of new products and any option/variant including sophisticated tools for design, knowledge capture, automation and change management. Digital simulation and validation enables the capture of any kind of product characteristic as a part of the digital model as well as the verification of physical, performance and environmental compliance thereby reducing the need for physical prototypes. Tool design and machining provides a completely integrated manufacturing solution with capabilities ranging from highly automated mold design to the effective simulation and programming of mold machining. Lifecycle product management allows organizations to capture, manage and re-use product knowledge throughout the product lifecycle, thereby enabling them to monitor and control product evolution from concept initiation to product delivery. Regulatory compliance strategy and reporting treats compliance as an integral element in the product lifecycle, enabling organizations to validate product compliance with multiple regulatory requirements. Global supply chain management allows organizations to establish effective partner relationships early in the planning process, as well as to ensure that the entire value chain is aligned and committed to the development/delivery of product resources throughout the entire product lifecycle. Digital lifecycle management Siemens digital lifecycle management solutions enable high tech and electronics companies to leverage enterprise product knowledge across an extended value chain that includes the company s own employees as well as its suppliers, partners and contract manufacturers. Program and planning control enables organizations to make better business decisions by providing enhanced visibility to resource, scheduling and product information. 6

9 Digital manufacturing Siemens integrates best-of-breed digital manufacturing solutions with Siemens proven knowledge management foundation to provide companies with the most extensive set of solutions for manufacturing excellence. Manufacturing process optimization covers the entire NPI process including DFA/DFT, PCB assembly and test through to documentation. It enables up-front assembly and testability checks at both the board and box level, thereby ensuring that the NPI process is done correctly the first time.the solution also provides a single software platform to program SMT single and multi vendor configurations as well as single job and multi job scenarios. Manufacturing execution provides component-to-final product shipment as well as traceability that facilitates customer and regulatory compliance initiatives at the shop floor level, as well as production control for total visibility of key performance indicators (KPIs) including material management work in progress, quality management, repair management and overall equipment efficiency at the plant or enterprise level.the solution also provides integration to enterprise systems like ERP/MRP, PLM and other shop floor applications. Outsourced manufacturing management provides executives and managers with visibility to their extended manufacturing operations by managing the business relationships, quality and inventory of outsourced operations. For manufacturers today, innovation is the engine of growth. Paradoxically, however, building or restructuring their operations to profitably bring new products and services to market is near the bottom of most manufacturers priorities. Deloitte Mastering Innovation 7

10 Siemens transformational approach for high tech and electronics companies The high tech and electronics industry covers a wide range of market segments.these complex and diversified segments share a series of common challenges, including the need to develop innovative products with a profitable margin, bring these products to a global market ahead of the competition and comply with environmental regulations. Just as importantly, all of these challenges must be met by extended value chains that operate in globally dispersed work environments. Siemens solutions for the high tech and electronics industry target core business processes by driving innovation through digital product development, digital lifecycle management and digital manufacturing. Siemens seamless integration capabilities enable its clients to implement tightly coupled high tech and electronics solutions that include core Siemens PLM Software technologies, as well as third-party applications. Siemens high tech and electronics solutions help companies transform their business processes by injecting innovation into the product development cycle. Siemens has captured the knowledge, experience, best practices and lessons learned from the world s largest installed base of PLM customers. Siemens uses this knowledge to develop integrated solutions tailored to master the industry s most strategic challenges. 8

11 Put Siemens solutions to work for your business Don t let the opportunity to drive innovation throughout your value chain pass you by. Contact your Siemens PLM Software representative today for more information about Siemens high tech and electronics solutions. >Transform your process of innovation Well, innovation is the lifeblood of any corporation. That s our real competitive advantage...to be able to distinguish and differentiate ourselves in insanely great ways from our competition so that we can go win in the marketplace. Dr. Randall Ledford Vice President and CTO Emerson Corp.

12 About Siemens PLM Software Siemens PLM Software, a division of Siemens Automation and Drives (A&D), is a leading global provider of product lifecycle management (PLM) software and services with 4.3 million licensed seats and 47,000 customers worldwide. Headquartered in Plano,Texas, Siemens PLM Software s open enterprise solutions enable a world where organizations and their partners collaborate through Global Innovation Networks to deliver world-class products and services. For more information on Siemens PLM Software products and services, visit Siemens PLM Software leads to greater innovation There is no single road to innovation, but there are signs you re headed in the right direction. Leading innovators get to market faster, manage compliance, optimize resources and achieve globalization. They re also four times more likely to use PLM software to plan, define, build and support their products. Siemens PLM Software s family of PLM solutions helps businesses establish Global Innovation Networks that transform their process of innovation. Drive your business to greater innovation and accelerate your growth. MOVE FASTER BE COMPLIANT GET OPTIMIZED GO GLOBAL Division headquarters Regions United States Granite Park One 5800 Granite Parkway Suite 600 Plano,TX Fax Americas Granite Park One 5800 Granite Parkway Suite 600 Plano,TX Fax Europe Norwich House Knoll Road Camberley, Surrey GU15 3SY United Kingdom Fax Asia-Pacific Suites , 68/F., Central Plaza 18 Harbour Road,WanChai Hong Kong Fax 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 W 3 9/07

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