Enabling Product Innovation and Growth (cont.)
Continued from November/December 2005 Main Page
In a Perspective article titled "2005: The Year of PLM... Again1," Aberdeen states:
- After four years of cost cutting, manufacturers have renewed focus on top line growth. This commitment is manifesting itself in investments in equipment and systems upgrades.
- Product proliferation, new regulatory and environmental requirements, globalization, and corporate initiatives to reduce waste and improve operational efficiency are increasing requirements for manufacturers to manage product compliance. This will fuel PLM investment for the next several years (See: Design for Compliance Benchmark Report.)
- During the economic downturn, PLM platform providers continued R&D investments in improved data and process integration, enhanced project and program management, and developing or acquiring new functionalities across the full product lifecycle. Key areas to watch: digital manufacturing, artwork and packaging development, and aftermarket/MRO management. Additional growth within these areas may be spurred by belated entrants from the ERP providers.
Aberdeen's recently published Product Innovation Agenda Benchmark2 also notes that "companies today are seeking profitable growth, placing significant emphasis on growing product revenue, but with continued emphasis on reducing product cost." These are initiatives that can be significantly aided by applying PLM.
Of course, underpinning it all is the pressing need for companies to innovate - the greatest competitive challenge faced by organizations of all sizes today. Because innovation opportunities happen everywhere in a product's lifecycle, PLM is the key to developing and managing it.
Aberdeen’s Product Innovation Agenda Benchmark discovered that “manufacturers that are best in class in hitting product development targets are four times more likely to have centralized coordination of innovation, and are four times more likely to use PLM-related software solutions.” I encourage you to read this in-depth analysis exploring ways companies can create profitable growth through product innovation, product development and engineering improvement.
In this issue of PLM Perspective, you’ll find a wealth of information on ways UGS works with customers to expand the value of PLM and foster greater innovation across the product lifecycle. You’ll find news and articles featuring planning, design, analysis and simulation, project management, MRO, breakthrough PLM opportunities for small and medium sized companies and UGS’ Open for Business strategy with IT partners like Adobe and Microsoft to bring PLM to every desktop.
UGS is proud of its continuing leadership in PLM and excited to be working with visionary companies that are pushing the boundaries and using PLM technology and strategy to innovate and thrive.
1. “2005: The year of PLM… Again” by Tim Minahan, AberdeenGroup, January 7, 2005
2. The Product Innovation Agenda Benchmark Report by Jim Brown, AberdeenGroup, September 2005
