High Performance PLM:

Transcription

1 High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption Data and Analysis from Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

2 The Bottom Line An international survey of 190 manufacturing companies by Tech-Clarity and PTC Global Services highlights FOUR KEY SUCCESS FACTORS that distinguish high performers in Product Lifecycle Management (PLM) from the rest of the pack: Strategic business alignment Process-based solution design Reduced customization of PLM software Comprehensive, role-based learning and adoption Most executives understand that each of these can be important contributors to PLM success. But the practical reality is that the companies that actually follow these approaches in detail achieve business results far greater than those which take shortcuts in planning, implementation, and adoption. In fact, the high performers in the survey achieved RESULTS FIVE TO TEN TIMES GREATER than the others in the top three business metrics: improving time to market, increasing product development efficiency, and reducing product cost. This ebook provides data and key findings from the survey. To learn more about the survey, please see the contact information on page 18. Page 2

3 The Challenge PLM solutions have always involved large, complex software implementations and these are never easy in an enterprise environment. As the scope of PLM programs has grown in recent years, these implementations often require collaboration across multiple functions and processes across the organization. Indeed, according to the analyst firm Gartner, PLM applications rank among the most vital for accelerating delivery and supporting new innovative products, and THEY RANK AMONG THE MOST COMPLEX TO DEPLOY. Resource Limitations Speed vs. Scope Legacy Processes and Systems Investment Timing Organizational Dynamics Short- and Long-Term Value Page 3

4 About the Survey Tech-Clarity & Global Services In April 2012, PTC Global Services, the consulting and training arm of PTC, joined forces with Tech-Clarity, an analyst firm that specializes in product life cycle management, to survey manufacturing executives in Europe and North America about their experiences with PLM. The goal of the survey was to understand key success factors in planning, implementing, and adopting PLM solutions in complex manufacturing environments. The telephone survey* focused on senior business and IT leaders with current PLM experience, and highlighted four types of questions: Strategy and approach to PLM Challenges Implementation and adoption techniques Results Survey participants included representatives of a wide range of manufacturing companies with commercial software-based PLM solutions in place. * The survey was conducted by ITSMA, an independent research and consulting firm that specializes in IT services and solutions, on behalf of Tech-Clarity and PTC Global Services. Page 4

5 The survey included 190 senior representatives from aerospace, automotive, consumer product, high tech, industrial, and other manufacturing companies. The majority of participants worked on the business side of their organizations, and all participants had direct experience with PLM solutions. Survey Participants Senior Business IT Years with PLM Solution 0-1 Year 4 + Years 1-2 Years 2-4 Years North America $1 B + Europe $ M $ M Page 5

6 Business Objectives Manufacturing companies today are looking to PLM to support a broad range of business objectives. As PLM has evolved from its historical roots in product data management inside the engineering department, it has now become a broad-based business program with implications across the organization. Improve sourcing or supply chain performance Reduce product cost Improve time to market Business Objectives for PLM Improve product development efficiency Improve product quality Improve service operations or profitability Increase product innovation Note: Up to three responses allowed. Develop more sustainable/ green products Page 6

7 Operational Objectives To support their business objectives, companies are focusing on PLM solutions that can support a broad range of operational and technical improvements, including automating and standardizing processes, integrating systems, and improving global collaboration. Automate/streamline manual processes Standardize business processes Integrate development & execution (PLM & ERP) Provide a single source of information Operational Objectives for PLM Make it easier to find information Consolidate IT systems Support distributed/ global teams Note: Up to three responses allowed. Improve external communication and collaboration Improve internal communication and collaboration Page 7

8 Most Companies Have Achieved Their Goals for Operational Improvements On a purely operational level, survey participants reported that they have done well or very well in achieving their desired improvements in information management, process automation, and internal communication. Consolidate IT Make information easier to find Improve internal communication Standardize business processes Improve supplier/ customer collaboration Support global product development teams systems Not well Very well 1 5 Not well Not well X X Very well 1 5 Not well X Very well 1 5 Not well X Very well 1 5 Not well X Very well 1 5 X Very well Note: Mean rating based on a 5-point scale where 1=not well and 5=very well. Page 8

9 Overall, However, Companies Have Achieved Only Modest Improvements in Key Business Metrics When we look at overall business results, however, the story is more mixed. Average percentage improvements in the top three business metrics are not bad. However, they are not the kind of results that companies often expect when committing large investments to new solutions and new ways of working. 15% 10% 5% 0% 4 % 3 % 2 % (% improvement) Time to Market Product Development Efficiency Reduced Product Cost Page 9

10 High Performers Have Achieved Substantially Greater Results In the survey, 22% of respondents stood apart as high performers. The high performers have achieved substantially greater improvements in the top business objectives, five to ten times greater than the results of the average and lower performing companies. 15% 10% 5% 0% 8.9 % 13.3 % 5.8 % 1.5 % 1.3 % 1.1 % (% improvement) Time to Market Product Development Efficiency Reduced Product Cost - High Performers - Low Performers Note: High performers are those companies with the best business results across the top three business objectives. Page 10

11 Patience is a Virtue High performers tend to have more experience with PLM. This is not much of a surprise. PLM is a big change initiative. It takes time to get comfortable with new ways of working, new capabilities, and new systems. Years with a PLM Solution * 62 % 24 % 39 % 37 % 22 % 16 % 0-2 years 2-4 years 4+ years 0-2 years 2-4 years 4+ years High Performers Low Performers * Indicates a statistically significant difference. Page 11

12 High Performers Have a Broader Scope of Implementation Across Processes and Departments The high performers also tend to have a broader scope of implementation. First, they tend to include more business processes with their program, such as quality planning. Second, the high performers tend to involve more functional areas across the business, too. Most companies involve engineering, of course, and many include manufacturing and supply chain. High performers are also more likely to include the quality organization, sales and marketing, and/or general management. Number of processes implemented * Number of departments using PLM * High Performers Low Performers High Performers Low Performers * Indicates a statistically significant difference. Check out Jim Brown s blog post on Broader Scope PLM. Page 12

13 The Most Significant Differences Relate to HOW Companies Plan, Implement, and Adopt PLM Low Performers High Performers Learning & Adoption Software Implementation Solution Design Strategy and Planning Page 13

14 High Performers Are More Likely to Align Strategy and Use Detailed Roadmaps and Scorecards Most program managers understand that program risks increase dramatically if the organization is not well aligned around the strategy, key objectives, investment requirements, and timeline. But the survey data suggest strongly that it is the depth and breadth of that alignment and the detail of the planning that matter most. Start Aligned PLM strategy with business strategy * Developed executive agreement on value Created detailed implementation roadmap * Managed implementation with value scorecard * 46 % 41 % 63 % 36 % 49 % 76% 34 % 51 % (% of Respondents) Read Rob Leavitt s blog post on 6 Steps to Effective PLM Planning Note: Multiple responses allowed. *Indicates a statistically significant difference. Low Performers High Performers Page 14

15 High Performers Prioritize Business Process Improvement and Use Software to Enable Change The relationship between process change and software change is always a tricky one with large technology solutions. The business value comes from changing the way we work, but it s usually the software that enables those changes. The high performers are more likely to focus first on process improvement, and then on application and system change to support the improvements. An integrated process is best to make sure that process change doesn t get too far ahead of software capabilities. Customizing new software to support old processes tends to be the least effective approach. 40% 30% 39 % 35 % 22 % 22 % 20% 10% 22 % 21 % 15 % 17 % 0% Processes & Software Improved Concurrently* Processes Improved Independently Process Improvements Based on Software Definitions Software Customized to Support Existing Processes* Note: Multiple responses allowed. * Indicates a statistically significant difference. Low Performers High Performers Page 15

16 High Performers Customize their Software Less With all enterprise solutions, the mantra in the marketplace today is off the shelf. We don t want to get bogged down in expensive software customizations that end up costing more, taking longer, and creating systems that are more expensive to maintain and less flexible for future expansion, integration, and upgrades. The reality is that most companies are still doing a fair amount of customization but the high performers are doing a bit less than the others. And because the high performers typically have had their solutions longer, the data suggest that they have made a greater effort to minimize customization. 40% 32 % 30% 37 % 20% 18 % 28 % 28 % 15 % 13 % 10% 13 % 0% 10 % No Customization 9 % Significant Customization Note: Mean rating based on a 5-point scale where 1=no customization and 5=significant customization. Low Performers High Performers Page 16

17 High Performers Take a More Strategic Approach to Organizational Learning and Adoption The best designed PLM solutions accomplish little if the users fail to accept the changes and integrate the new processes and tools into their daily work. Similar to the up-front strategy and planning, the reality is that many companies under-invest in organizational learning and adoption. In contrast, the high performers are more likely to take a strategic and more comprehensive approach, including strategic planning, organization-wide communication, and role-based training. Strategic plan for training and adoption * 41 % 63 % Built awareness of need for change 45 % 59 % Custom training for different roles * 31 % 51% Training or sandbox test environment * 19 % 51 % (% of Respondents) Read Rob Leavitt s blog post on 4 Keys to Ensuring PLM Adoption Note: Multiple responses allowed. * Indicates a statistically significant difference. Source: Tech-Clarity and PTC, PLM Key Success Factors Survey, 2012 Low Performers High Performers Page 17

18 Get in Touch! Interested in learning more about the research? Want to talk about the implications for your organization? Have a related experience to share? Please get in touch and let us know. We d love to talk. For more Insights from the Global Services team, please visit blogs.ptc.com/category/strategy/. Or scan this code with your mobile device. About the Author Rob Leavitt is Director of Thought Leadership at PTC Global Services, the consulting arm of PTC. A long-time advisor to top technology and IT services firms, Rob works with PTC consultants, partners, and customers to advance understanding of key issues and challenges in product development, manufacturing, and after-market service. Contact Rob at: Rob Leavitt, Director of Thought Leadership PTC Global Services [email protected] Twitter.com/PTC_Consulting 2012, Parametric Technology Corporation (PTC). All rights reserved. Information described herein is furnished for informational use only, is subject to change without notice, and should not be construed as a guarantee, commitment, condition or offer by PTC. PTC, the PTC logo, Creo, Pro/INTRALINK, Windchill, Windchill PDMLink, Windchill ProjectLink, Pro/ENGINEER and all PTC product names and logos are trademarks or registered trademarks of PTC and/or its subsidiaries in the United States and in other countries. All other product or company names are property of their respective owners. The timing of any product release, including any features or functionality, is subject to change at PTC s discretion. J PTC Global Services - Infographic / ebook Page 18