ARC WHITE PAPER. OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise

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1 ARC WHITE PAPER By ARC Advisory Group AUGUST 2015 OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise Executive Overview... 2 Connected Manufacturers Need a Separate EIM Platform... 3 Product Design and Engineering... 5 Information Exchange Across the Supply Chain... 7 Asset Lifecycle Management... 8 Retailer and Distributor Support Aftermarket Products and Services OpenText EIM Enables Connected Manufacturing VISION, EXPERIENCE, ANSWERS FOR INDUSTRY

2 Executive Overview Manufacturing has changed dramatically over the last decade. Developments in IT and the internet have enabled companies to transform from regional manufacturers into global, connected enterprises that provide better products at lower costs. These products are designed and engineered by collaborative teams in design centers around the world to take advantage of unique talent pools. Materials are sourced from global suppliers and contract manufacturers in countries with labor and logistics advantages. Products are configured, sold, and serviced Information management is the key enabler of modern, informationdriven, in global markets by a complex network of dealers, distributors, and logistics providers. connected manufacturing enterprises. This paper establishes the required Transforming a company into a connected manufacturing enterprise requires new processes, new skills, information management capabilities and investments in new technology. Most importantly, the organization needs to establish an through an analysis of five critical product lifecycle stages. It concludes with a review of information management platform to ensure that OpenText s Enterprise Information Management (EIM) solutions with every entity in the manufacturing ecosystem has the information needed to complete work on-time and respect to these needs. on-spec. Like traditional manufacturing, success of a connected enterprise depends upon smooth coordination across all process steps, from design through aftermarket products and services. But, the distributed nature of global, connected enterprises amplifies the impact and cost of every misstep. Information drives the connected manufacturing enterprise ecosystem. Every partner requires timely access to complete, accurate, and consistent information to meet the stringent performance expectations of global customers. The enterprise also relies upon the availability of trustworthy information to evaluate and improve ecosystem performance. This paper discusses the information requirements for an effective information-driven, connected manufacturing enterprise. Five critical lifecycle phases are reviewed: product design and engineering; supply chain; manufacturing; retailers and distributors; and, aftermarket products and services. It concludes with an analysis of OpenText s Enterprise Information Management (EIM) solutions in light of these requirements. 2 Copyright 2015 ARC Advisory Group ARCweb.com

3 Connected Manufacturers Need a Separate EIM Platform Manufacturing is complex, involving an array of design, engineering, production, distribution, and service activities. Companies have learned that comprehensive, end-to-end processes are essential for operational efficiency and product quality and this has led to extensive investments in business process reengineering programs and software applications like enterprise resource planning (ERP), product lifecycle management (PLM), and supply chain management (SCM). While this has generated many benefits, it has also reduced organizational agility, which is vital for success in today s global economy. Survival demands that companies find ways to overcome these limitations while preserving the benefits. The Information-Driven, Connected Enterprise End-to-end business processes drive higher efficiency with task automation and seamless information flow across all business activities. Manufacturing applications support this through tight integration of related processes and shared information stores. In most cases, this approach implicitly assumes static business processes and fixed work groups, which limit the company s ability to take advantage of opportunities to improve performance. Every Copyright 2015 ARC Advisory Group ARCweb.com 3

4 change necessitates software modifications that increase costs and delay benefits, so such organizations struggle to keep pace with new competitors. To compete in today s global economy and respond rapidly to competitive threats and new opportunities, connected manufacturing enterprises need end-to-end business processes and applications that assume a dynamic, fully-connected network of global partners. New partners have to be onboarded quickly and easily and those partners have to be able to use their own best practices. Separation of information management and business process software is fundamental for an effective, connected manufacturing enterprise. Every partner needs trustworthy information, but access methods have to be flexible to enable a broad base of partners. Partners also have to be able to share information easily with other entities in the connected manufacturing enterprise. Yet every exchange must be tracked and stored for overall control, governance, and regulatory compliance. Smart manufacturers will also anticipate the need to support new information technology like wearable devices, 3D printers, and the Internet of Things. EIM Impacts Every Manufacturing Process A connected manufacturing enterprise information management solution has to support activities throughout the complete life cycle of manufactured products and the facilities used for production and distribution. While lifecycle activities vary by industry, the following figure shows some of the common activities that are involved with product design, manufacture, sales, and support services. Information is critical for every lifecycle activity. The following sections discuss some of the key information needs of five different lifecycle activities (highlighted in green in figure): Product Design & Engineering, Supply Chain Enablement, Plant Maintenance & Asset Management, Retailer / Distributor Engagement, and Aftermarket Service & Support. These information requirements vary significantly and demonstrate why manufactures need an information management platform with comprehensive, broadbased capabilities. 4 Copyright 2015 ARC Advisory Group ARCweb.com

5 Typical Product Manufacturing Lifecycle Product Design and Engineering The lifecycle of a manufactured product begins with information created in the design and engineering phase. Design departments rely on product lifecycle management (PLM) solutions to build complete digital representations of their products and this 3D digital information is used by many different departments in the manufacturing enterprise. Providing a centralized digital information hub, a platform that is available on a 24x7 basis and accessible by any type of device enables convenient access by partners on a worldwide basis. Modern PLM solutions support information sharing with production groups and the products they use to program machining centers. Some also support the development of prototype models utilizing the latest 3D printing technologies. But today s need for design information has expanded far beyond these traditional production activities. For example marketing departments are using high-quality 3D rendered images or 3D Copyright 2015 ARC Advisory Group ARCweb.com 5

6 animations as part of advanced promotional campaigns for new products. Aftermarket service and support departments also need links to design information to populate online support sites and develop videos that show how to repair and maintain products. Successful new product introductions increasingly depend upon design information that is easily accessible from anywhere in the world at any time. This allows everyone within the connected manufacturing enterprise -- whether internal to the company, outside suppliers, or third-party contract designers and manufacturers -- to have information they can trust. Furthermore, this information has to be securely archived to support the growing need for full traceability of every component in every product. As recent events have shown, products that fail or cause harm to a user can create incredibly expensive recall situations for manufacturers. This requires trustworthy access to design information for an extended period, typically ten to twenty years. A centralized archiving process for all design-related information can help companies resolve recall issues quickly and maintain consumer confidence. Governance, risk, and compliance initiatives introduced by governments around the world also require secure archiving. Enterprise information management systems that meet the needs of product design and engineering will: Provide a single version of truth for all product design and engineering information Offer extensive archive and version control capabilities, irrespective of file type Automate review and approval processes for all product design related information Enable sharing, collaboration, and mark-up of design information from leading PLM solutions and other business applications Offer a secure platform for exchanging design information between internal and external users 6 Copyright 2015 ARC Advisory Group ARCweb.com

7 Allow other departments such as marketing to leverage design related information Information Exchange Across the Supply Chain Efficient supply chains are essential for an effective connected manufacturing strategy. Digital information and electronic business transactions have to flow seamlessly throughout the supply chain. Electronic data interchange (EDI) has been used for many years and remains key to the smooth operation of today s supply chains. Whether supporting just-in-time production operations in the automotive industry or a high-tech reverse logistics process, access to a single, common B2B platform is critical. Supply chains also have to be resilient and manufacturers need to ensure that their information management system supports this need. Integration of new partners, mergers and acquisitions, and changes in governmental regulations have to be addressed quickly and smoothly without disrupting ongoing operations. Changing demand patterns and disruptions due to natural disasters and political instability require similar agility. To ensure efficiency and resiliency, companies have to make sure that their enterprise information management platform supports rapid onboarding of new partners, varying B2B communication protocols, and unique B2B document standards. Addressing the multitude of regional compliance regulations put in place by governments around the world is also essential. This includes requirements like adhering to electronic invoicing regulations across the 28 member countries of the European Union and supporting required assessments to ensure that supply chains are free from conflict minerals. Manufacturers will also need to think about how they integrate their B2B platform to back end ERP, transportation management systems (TMS), and warehouse management systems (WMS). Significant operational and cost benefits are available when B2B transactions flow seamlessly between back end enterprise systems and external trading partners, such as suppliers, financial institutions, contract manufacturers and third-party logistics providers. Copyright 2015 ARC Advisory Group ARCweb.com 7

8 Ensuring that every trading partner, irrespective of size, location or technical capability, can exchange appropriate business information and transactions electronically is another critical issue. In this regard, manufacturers may want to consider a cloud-based enterprise information management strategy to simplify the management of the B2B environment and gain the flexibility and scalability to support changes in the market and business strategies. To support all these supply chain requirements, connected manufacturers need an enterprise information management solution that will: Simplify how the manufacturer connects to and engages with global trading partners Help mediate between various forms of B2B documents and communications protocols B2B-enable any size of company, irrespective of technical capabilities or IT infrastructure Provide seamless integration to back end enterprise systems such as SAP and Oracle Support regional compliance initiatives such as electronic invoicing and conflict minerals Offer trading partner analytics capabilities for improved visibility across the supply chain Asset Lifecycle Management Maintaining high availability of production assets has never been more important to manufacturers. The costs of facilities has skyrocketed and manufacturers need to maximize the use of every production line to achieve return on investment (ROI) goals. The shift to customized products and new manufacturing strategies like Lean and Just-in-Time drastically reduce inventories and increase the importance of predictable production schedules. The impact of any disruption can ripple through supply chains and undermine customer confidence. 8 Copyright 2015 ARC Advisory Group ARCweb.com

9 Studies by ARC Advisory Group and other researchers show a direct relationship between asset availability and the quality and accessibility of asset information. Studies have shown that the cost of poor asset information management can exceed 1.5 percent of a plant s revenues in some industries and this doesn t even consider the impact that poor maintenance can have on safety and environmental compliance. To ensure safe and reliable assets, maintenance teams need access to a wide range of digital information associated with the machinery and all supporting systems. They also need to be able to share information, like drawings, documents, pictures, and videos with onsite contractors and spare parts suppliers. Furthermore, the organization has to ensure the availability of this information using a variety of devices like tablets, smartphones, and wearable devices, on a 24x7 basis, regardless of where a person may be located in the plant. The need for an organized information management strategy will expand in the future as manufacturers adopt new Industrial Internet of Things (IIoT) strategies for equipment maintenance. This will increase the number of sensors on production equipment and enable organizations to implement more predictive maintenance strategies that identify problems before they occur. Big data and analytics are central to this approach and will lead to people requiring access to additional data, analysis tools, and alerts. An effective enterprise information management solution for asset lifecycle management will: Provide a complete 360-degree view of asset, process, and performance data Improve quality and consistency of asset information and work instructions Provide remote, mobile access to any plant-related asset information Enable higher asset uptime and reliability through extensive analysis of equipment data Help enable predictive maintenance procedures to improve equipment availability Copyright 2015 ARC Advisory Group ARCweb.com 9

10 Enable companies to minimize health, safety, and environmental incidents and archive information to satisfy compliance requirements Retailer and Distributor Support Today s connected consumer is driving many omni-channel retail strategies. Ensuring that consumers have a consistent digital experience is essential for manufacturers and their retailer and distributor partners. There are two key areas in which a centralized approach to managing digital information can help consumers engage with a company. Firstly, consumers are looking for an engaging and consistent web experience, both pre-sale to research new product information, and post-sale, where customer service portals need to be simple to use and enable consumers to rapidly find the information they need. Secondly, when making purchases in a brick-and-mortar retail store environment, consumers need access to product videos, animations, and high-resolution images of the product. Manufacturers need a seamless way to make this digital information available to a retail or distribution network. This can be particularly challenging for manufacturers selling into multiple markets around the world and engaging with a globally dispersed retail or distribution network. Relative to websites, the customer experience needs to be consistent across all platforms, from PCs to tablets and smartphones. Developing an engaging website that utilizes the latest web development tools can make or break a consumer s decision to purchase goods. To support their retail networks, manufacturers need to provide a fast and secure method for retailers to access and download all digital information related to a product. For example a consumer electronics retailer may need to download the latest product video for use at a major retailer point of sale booth. A retailer may also need PDF brochures, training manuals, or even high-resolution graphical images for screen printing on display boards. Cataloging and ar- 10 Copyright 2015 ARC Advisory Group ARCweb.com

11 chiving all this information in a digital asset management (DAM) environment can help streamline the way a manufacturer works with a retail channel. A centralized approach to managing all digital assets ensures that all value chain participants, including advertising agencies, video production and graphics companies can engage collaboratively with the digital assets associated with a product. To meet the needs of dealers and distributors, manufacturers need an enterprise information management platform that will: Ensure all product information is held within a digital asset management environment Provide a common, process-based platform to integrate information with back end business systems Offer a secure, cloud-based environment for exchanging large files, like videos and animations Enable online information assets to be created and managed through a common web platform Allow customers to engage with the business in a consistent manner Support multi-format viewing tools that allow any type of digital file to be viewed on any device Aftermarket Products and Services Manufacturers of products, whether aircraft, vehicles or consumer electronics devices need a service and support infrastructure with broad capabilities and high availability. Excellent product service and support helps companies maintain and improve customer satisfaction levels. In many cases, like jet engine sales, a manufacturer can make more money through maintenance over the lifetime of the engine than on the original sale. Copyright 2015 ARC Advisory Group ARCweb.com 11

12 Regardless of where a field service engineer is working, he or she needs immediate access to product information. In today s world, this can include product and spare part information in a variety of formats including document files, photos, and videos. Being able to offer access to this kind of information is no longer an option, it is a condition of doing business. In addition, being able to archive all service records and test or compliance certificates is critically important for traceability, especially in a major recall situation. Being able to remotely access a web-based spare parts ordering portal is likewise becoming critically important in almost all industries. Field service engineers need to be able to order spare parts and have them shipped directly to the place they are needed. New technologies like the Industrial Internet of Things will require similar capabilities. As the concepts of remote maintenance advance, sensors with WiFi connectivity will automatically diagnose problems, alert service centers, and issue orders for needed parts so that they are on-site before the service person arrives. These kinds of advanced developments will drastically increase asset availability and reduce the costs of service calls. To enable first-class service, manufacturers need an enterprise information management solution that: Allows any type of digital file, including 2D/3D drawings, to be viewed and marked up remotely Allows service records to be archived to ensure full traceability of service history and ensure regulatory compliance initiatives are met Provides predictive analytics tools to optimize maintenance procedures and reduce downtime Provides B2B web portal tools to simplify and streamline replacement parts ordering processes Improves customer satisfaction levels through improved access to digital information Provides process management tools to manage product lifecycle support activities 12 Copyright 2015 ARC Advisory Group ARCweb.com

13 OpenText EIM Enables Connected Manufacturing Applications like ERP, PLM, and SCM help manufacturers optimize individual business processes within finance, production, design, and distribution. But this is not enough for a successful, connected manufacturing enterprise. Today, manufacturing organizations are driven as much by information as they are by workflow. They need information access and sharing that is not encumbered by departmental boundaries and static business process assumptions. Implementing manufacturing applications on a common, enterprise-wide information management platform is essential to support the requirements identified in this report. OpenText EIM Meets the Needs of Manufacturers OpenText, a leader in information management, has an integrated portfolio of enterprise information management products that addresses the complex needs of today s connected manufacturing enterprise. This includes Enterprise Content Management, Business Process Management, Customer Experience Management, Information Exchange, and Discovery. In early 2015, OpenText acquired a provider of embedded analytics solutions that will be deployed over time across all of these EIM pillars. OpenText Enterprise Information Management Solutions Enterprise Content Management (ECM) this product suite includes content management, records management, and archiving. It allows companies to manage all unstructured information regardless of where it originates, while simultaneously enabling companies to satisfy all compliance requirements and ensure that information is available regardless of age and location. Copyright 2015 ARC Advisory Group ARCweb.com 13

14 Business Process Management (BPM) the core of this suite is the Open- Text Cordys BPM engine, which enables organizations to address complex process automation and case management needs that arise across the partner ecosystem. This is augmented with a variety of products that enable companies to manage master data, integrate applications, and interact with information resources through tablets and mobile devices anytime and anywhere. Customer Experience Management (CEM) this suite includes tools to manage the content used to create websites for product sales, aftermarket portals, etc. The CEM suite also provides digital asset management tools to ensure that all types of multi-media files can be archived in a central repository. Information Exchange (IX) this suite enables companies to connect and exchange electronic documents with trading partners around the world. At the core is the GXS B2B platform that OpenText acquired in It is the world s largest cloud-based B2B integration platform and it is complemented with solutions for secure mail, secure MFT, and FAX-to- that can be used to integrate even the smallest manufacturing partner. Discovery this suite includes tools that allow companies to conduct semantic-based search for information located in any type of repository. Information can reside in departmental applications and silos within a single company or across a trading partner. Analytics these tools enable companies to recognize and understand trends in the information flowing across the enterprise, such as consumption patterns, production rates, etc. This can increase the agility of the manufacturing enterprise and help it optimize performance of business exchanges among ecosystem partners. OpenText EIM is an Appropriate Solution for Informationdriven, Connected Manufacturing Enterprises Based on a series of recent briefings by OpenText executives, ARC believes that OpenText EIM can provide an appropriate information management solution for modern, connected manufacturing enterprises. It is designed as a standalone information management platform that can be implemented as a cloud-based solution. This positions it well for use as a global information hub. As many manufacturing organizations already use OpenText EIM in conjunction with SAP and Oracle solutions, integration 14 Copyright 2015 ARC Advisory Group ARCweb.com

15 with existing manufacturing applications should not be an issue. At the same time, users can interact with critical business information independently of underlying manufacturing applications. This should provide the flexibility they need to rapidly adjust business partners and processes as new threats and opportunities arise. For further information on OpenText s EIM solutions for manufacturers, please visit Copyright 2015 ARC Advisory Group ARCweb.com 15

16 Analyst: Sid Snitkin Editor: Paul Miller Acronym Reference: For a complete list of industry acronyms, please refer to API Application Program Interface B2B Business-to-Business BPM Business Process Management CPG Consumer Packaged Goods CRM Customer Relationship Management DAM Digital Asset Management EAM Enterprise Asset Management EIM Enterprise Information Management ERP Enterprise Resource Planning IT Information Technology PLM Product Lifecycle Management RFID Radio Frequency Identification ROA Return on Assets SCM Supply Chain Management TMS Transportation Management System WMS Warehouse Management System Founded in 1986, ARC Advisory Group is the leading research and advisory firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers. All information in this report is proprietary to and copyrighted by ARC. No part of it may be reproduced without prior permission from ARC. This research has been sponsored in part by OpenText. However, the opinions expressed by ARC in this paper are based on ARC's independent analysis. You can take advantage of ARC's extensive ongoing research plus experience of our staff members through our Advisory Services. ARC s Advisory Services are specifically designed for executives responsible for developing strategies and directions for their organizations. For membership information, please call, fax, or write to: ARC Advisory Group, Three Allied Drive, Dedham, MA USA Tel: , Fax: Visit our web pages at 16 Copyright 2015 ARC Advisory Group ARCweb.com

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