2012 Global Retail, Fashion and Apparel PLM Product Differentiation Excellence Award

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1 Global Retail, Fashion and Apparel PLM Product Differentiation Excellence Award 2012 Frost & Sullivan 1 We Accelerate Growth

2 Product Differentiation Excellence Award Retail, Fashion and Apparel PLM Global, 2012 Frost & Sullivan s Global Research Platform Frost & Sullivan is in its 50th year of business with a global research organization of 1,800 analysts and consultants who monitor more than 300 industries and 250,000 companies. The company s research philosophy originates with the CEO s 360-Degree Perspective, which serves as the foundation of its TEAM Research methodology. This unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2012 Global Product Differentiation Excellence Award in Retail, Fashion and Apparel Product Lifecycle Management (PLM) to Centric Software. Significance of the Product Differentiation Excellence Award Key Industry Challenges The global product lifecycle management (PLM) market has been witnessing high growth over the last decade. Like all other end user industries in the PLM landscape, the retail, fashion and apparel industry has quickly identified the need for PLM in its pursuit to accelerate new product introductions, reduce production costs, and improve overall profitability in the process. However, the dynamic nature of this industry poses multiple challenges for PLM vendors to emerge with appropriate solutions that best meet end user requirements. Today s PLM market is imbued with generic PLM solutions that can be used across multiple industrial domains, including retail, fashion and apparel. With consumer trends changing every six months, it is essential for end users to adopt PLM solutions that provide a strategic edge in terms of functionality, ease of operability, and return on investment. The industry is in dire need of a well-defined PLM suite, built on a core industrial platform with capabilities that can go beyond traditional PLM applications and facilitate greater efficiency across different enterprise disciplines. To combat the above-mentioned challenges effectively, product differentiation is a key strategy for a PLM vendor in meeting customer preferences in the retail, fashion and apparel industry. Key Benchmarking Criteria for the Product Differentiation Excellence Award For the Product Differentiation Excellence Award, the following criteria were used to benchmark Centric Software s performance against key competitors: Unique Features/Functionality 2012 Frost & Sullivan 2 We Accelerate Growth

3 Quality/Complexity Customization Matched to Target Markets Needs Brand Perception Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each Award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and Award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart 1. Chart 1: Performance-Based Ratings for Decision Support Matrix This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies Frost & Sullivan 3 We Accelerate Growth

4 Chart 2: Frost & Sullivan s 10-Step Process for Identifying Award Recipients Best Practice Award Analysis for Centric Software The Decision Support Matrix, shown in Chart 3, illustrates the relative importance of each criterion for the Product Differentiation Excellence Award and the ratings for each company under evaluation. To remain unbiased while also protecting the interests of the other organizations reviewed, we have chosen to refer to the other key players as Competitor 1 and Competitor 2. Chart 3: Decision Support Matrix for Product Differentiation Excellence Award Measurement of 1 10 (1 = lowest; 10 = highest) Award Criteria Unique Features/Functionality Quality/Complexity Customization Matched to Target Markets Needs Brand Perception Weighted Rating Relative Weight (%) 20% 20% 20% 20% 20% 100% Centric Software Competitor Competitor Criterion 1: Unique Features/Functionality The benefits of using PLM is maximised when the product is able to create synergies among multiple customer disciplines. Unlike other end user industries, most of the PLM solutions available in the retail, fashion and apparel industry work in silos, encumbering the transfer 2012 Frost & Sullivan 4 We Accelerate Growth

5 of business knowledge from one place of operation to another. This, in turn, prevents end users from realising the true potential of a PLM application. Centric Software s (Centric) PLM is unique in this regard, providing a holistic platform for end users in meeting their product design and development needs. Known as Centric 8, the company released a new version 4.6 in This product enables end users in the retail, fashion and apparel industry to work concurrently, prudently leveraging valuable business intelligence from various departments. Along with product design and development, end users can also source business intelligence from other disciplines, like merchandising, quality assurance, marketing, and sales. This helps in a comprehensive PLM approach that is exceedingly unique compared to other major PLM products available in the market. The software's user interface is notable for its easy operability and intuitive structure. In addition, the concurrent working methodology, which involves inter-discipline interaction, prevents the need for additional end user investment to facilitate integration. This helps in cost savings and it improves return on investment. Criterion 2: Quality/Complexity The quality of a PLM product is determined by its ability to improve design efficiency, productivity and thereby, a company s profitability. Return on investment is another key functional parameter that determines end users purchasing decisions. Conventional PLM solutions are built as multiple layers, which basically include a core PLM platform, followed by an industry vertical accelerator, and a graphical customer user interface. This product design methodology has shortcomings in terms of operability, flexibility and scalability. Centric 8, however, is one of the very few PLM solutions available in the market built on single-core architecture, along with a dedicated platform for the retail, fashion and fastmoving consumer goods industry. This precludes the need to incorporate an industry vertical accelerator and it enables simplicity in design. The lack of multiple layer stacks is a key quality differentiator that provides enormous benefits in terms of functional agility and operational flexibility to the end user. The dedicated core platform can also be utilised to maximise efficiency across different disciplines like merchandising, product management, quality assurance, marketing, and sales to facilitate truly concurrent operation. This is of abundant value as it enhances the product s operational quality and makes it distinct from competing systems. Criterion 3: Customization Implementation of PLM is a major challenge for end users in the retail, fashion and apparel business, where delayed PLM implementations will pose a serious setback to manufacturing. Centric 8, taking into account key industry dynamics, provides end users the flexibility to design configured solutions that suit their specific needs. By following a modular approach towards design and development, Centric 8 provides the flexibility for designers to adopt and define exclusive product development attributes for various product categories. The 2012 Frost & Sullivan 5 We Accelerate Growth

6 recent introduction of the Agile Deployment(SM) platform for Centric 8 in 2012, enables rapid deployment while helping end users realise benefits within 4-6 months. In addition, end users can also choose to deploy Centric 8 on the cloud. The cloud approach is poised to provide considerable savings in an end user s IT expenditure. Criterion 4: Matched to Target Markets Needs Unlike other manufacturing industries, the retail, fashion and apparel industry does not have the functional necessity to adopt advanced Information Technology solutions for manufacturing. This can be attributed to the intensive manual nature of the industry, where manufacturing requires adequate human intervention at regular intervals. Hence, PLM vendors, who want to enhance their product functionality, need to adopt an approach that holds relevance for end users in the retail, fashion and apparel domain. Centric has observed this keenly and this is reflected in its product marketing strategies. Instead of focussing on expanding its PLM footprint into factory automation or 3D visualisation, Centric has chosen to concentrate on the extended-enterprise, viz., sales and marketing. One good example is the "Collection book", a digital catalogue available as part of the PLM suite. Collection book is a smart tablet application (app) that is directly driven to enhance PLM functionality. The company also introduced a iphone-based app called Capture It in This app allows end users to capture and record photographs of fabrics through their smartphones, which can then be uploaded onto the main PLM suite. This new feature helps end users enhance new product development. Criterion 5: Brand Perception A company s brand recognition is measured by its customer base. In the retail, fashion and apparel business, achieving wide end user acceptance is paramount for successful growth. With leading clients in its repertoire, Centric has evolved into a comprehensive PLM business partner, with one of the fastest growing customer rates in 2011, in the global retail, fashion and apparel industry. This is reflective of the company s brand reputation in the market and is attributed to its innovative, effective, and industry-specific product offering. Conclusion In a highly competitive market like the retail, fashion and apparel industry, profitability is determined by delivering the right product at the right time, with reduced production cost and increased supply chain efficiency. This makes PLM a vital IT asset, with the highest return on investment. Amidst an abundance of solutions available in the market, vital differences in product design have increased the adoption of Centric 8 by end users across the global retail, fashion and apparel industry. An integrated approach to PLM, coupled with robust design architecture, and innovative product features, makes Centric 8 an efficient and effective solution for best meeting the PLM needs of end users in the retail, fashion and apparel industry Frost & Sullivan 6 We Accelerate Growth

7 The CEO 360-Degree Perspective TM - Visionary Platform for Growth Strategies The CEO 360-Degree Perspective model provides a clear illustration of the complex business universe in which CEOs and their management teams live today. It represents the foundation of Frost & Sullivan's global research organization and provides the basis on which companies can gain a visionary and strategic understanding of the market. The CEO 360-Degree Perspective is also a must-have requirement for the identification and analysis of best-practice performance by industry leaders. The CEO 360-Degree Perspective model enables our clients to gain a comprehensive, action-oriented understanding of market evolution and its implications for their companies growth strategies. As illustrated in Chart 4 below, the following six-step process outlines how our researchers and consultants embed the CEO 360-Degree Perspective into their analyses and recommendations. Chart 4: CEO's 360-Degree Perspective Model 2012 Frost & Sullivan 7 We Accelerate Growth

8 Critical Importance of TEAM Research Frost & Sullivan s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360-degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients. Chart 5: Benchmarking Performance with TEAM Research About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 8 We Accelerate Growth