high performance plm: key success factors for plm strategy, implementation, and adoption

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

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Data and Analysis from Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012 [eBook] To learn more about the key success factors for PLM and other enterprise solutions, visit the Insights section of our website: http://www.ptc.com/consulting/insights?utm_source=SlideShare%2B&utm_medium=plmebook&utm_campaign=Social

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Page 1: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

Key Success Factors for PLM Strategy, Implementation, and AdoptionHigh Performance PLM:

Data and Analysis from Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

Page 2: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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An international survey of 190 manufacturing companies by Tech-Clarity and PTC Global

Services highlights FOUR KEY SUCCESS FACTORS that dist inguish high performers in Product Lifecycle Management (PLM) from the rest of the pack:

→ Strategic business alignment

→ Process-based solut ion 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.

The Bottom Line

Page 3: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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PLM solut ions 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 imple-

mentations often require collaboration across mult iple functions and processes across the organization.

Indeed, according to the analyst firm Gartner, “PLM applicat ions rank among the most vital for

accelerating delivery and supporting new innovative products, and THEY RANK AMONG THE MOST COMPLEX TO DEPLOY .”

Speed vs. Scope

InvestmentTiming

Short- andLong-Term Value

ResourceLimitat ions

Legacy Processesand Systems

OrganizationalDynamics

The Challenge

Page 4: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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In April 2012, PTC Global Services, the consult ing 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 solut ions in complex manufacturing environments.

The telephone survey* focused on senior business and IT leaders with current PLM experi-ence, and highlighted four types of quest ions:

→ 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 solut ions 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.

GlobalServices&Tech-Clarity

About the Survey

Page 5: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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North America Europe

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

Years with PLM Solut ion

0-1 Year

1-2 Years2-4 Years

$400-499M

$500-999M

$1B+

4 + Years

SurveyParticipants

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 solut ions.

Senior Business IT

Page 6: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

Page 6

Note: Up to three responses allowed.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

Business Objectives for PLM

Improve product development efficiency

Reduce product costImprove sourcing or

supply chain performance

Improve service operations or profitability

Increase product innovation Develop more sustainable/green products

Improve time to market

Improve product quality

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.

Business Objectives

Page 7: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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Note: Up to three responses allowed.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

Operational Objectives for PLM

Automate/streamline manual processes

Standardize business processes Integrate development

& execution (PLM & ERP)

Make it easier to find information

Support distributed/global teams

Provide a single source of information

Consolidate IT systems

Improve external communication and collaboration

Improve internal communication and collaboration

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.

Operational Objectives

Page 8: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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Most Companies Have Achieved Their Goals for Operational Improvements

3.9

3.7

3.6

3.5

3.4

Make information easier to find

Improve internal communication

Standardize business processes

Improve supplier/customer collaboration

Support global product development teams

3.9Consolidate IT

systems Not well Very well

1 5

X

Not well Very well

1 5

X

Not well Very well

1 5

X

Not well Very well

1 5

X

Not well Very well

1 5

X

Not well Very well

1 5

XNote: Mean rating based on a 5-point scale where 1=not well and 5=very well.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

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.

Page 9: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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15%

10%

5%

0%

Overall, However, Companies Have Achieved Only Modest Improvements in Key Business Metrics

Time to Market Product Development Efficiency Reduced Product Cost

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

4%3% 2%

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.

(% im

provement)

Page 10: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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Note: High performers are those companies with the best business results across the top three business objectives.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

15%

10%

5%

0%

High Performers Have Achieved Substantially Greater Results

Time to Market Product Development Efficiency Reduced Product Cost

13.3%

8.9%

1.5% 1.3% 1.1%

5.8%

- Low Performers- High Performers

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.

(% im

provement)

Page 11: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

Page 11

* Indicates a statistically significant difference.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

VirtuePatience is a

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.

62%

High Performers Low Performers

22%16%

0-2 years

2-4 years

4+ years

24%

39%37%

0-2 years

2-4 years

4+ years

Years with a PLM Solution*

Page 12: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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* Indicates a statistically significant difference.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

High Performers Low Performers

High Performers Have a Broader Scope of Implementation Across Processes and Departments

Number of processes implemented*

High Performers Low Performers

Number of departments using PLM*

5.3 4.5 4.4 3.1

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.

Check out Jim Brown’s blog post on “Broader Scope PLM.”http://blogs.ptc.com/2012/06/12/broader-scope-plm-yields-greater-business-value/

Page 13: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

High Performers

Low Performers

The Most Significant Differences Relate to HOW Companies Plan, Implement, and Adopt PLM

Learning & Adoption

Software Implementation

Solution Design

Strategy and Planning

Page 14: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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Note: Multiple responses allowed. *Indicates a statistically significant difference.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

High Performers Are More Likely to Align Strategy and Use Detailed Roadmaps and Scorecards

Aligned PLM strategy with business strategy*

Developed executive agreement on value

Created detailed implementation roadmap*

Managed implementation with value scorecard*

Start

51%34%

76%36%

49%41%

63%46%

(% of Respondents)

High PerformersLow Performers

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.

Read Rob Leavitt’s blog post on 6 Steps to Effective PLM Planninghttp://blogs.ptc.com/2012/05/28/slowing-down-to-speed-up-6-steps-to-effective-plm-planning/

Page 15: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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Note: Multiple responses allowed. * Indicates a statistically significant difference.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

High Performers Prioritize Business Process Improvement and Use Software to Enable Change

39%

22%22%35%

40%

30%

20%

10%

0%

22%

15%17%

21%

Processes & SoftwareImproved Concurrently*

Processes ImprovedIndependently

Process Improvements Basedon Software Definitions

Software Customized toSupport Existing Processes*

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.

High PerformersLow Performers

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18% 28%28%

15% 13%

Note: Mean rating based on a 5-point scale where 1=no customization and

5=significant customization.

Source: Tech-Clarity and PTC Global Services, PLM Key Success Factors Survey, 2012

High Performers Customize their Software Less

40%

30%

20%

10%

0%

10%

32%

9%

13%

37%

No Customization Significant Customization

High PerformersLow Performers

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.

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Note: Multiple responses allowed.

* Indicates a statistically significant difference.

Source: Tech-Clarity and PTC, PLM Key Success Factors Survey, 2012 High PerformersLow Performers

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*

Built awareness of need for change

Custom training for different roles*

Training or “sandbox” test environment* 51%19%

51%31%

59%45%

63%41%

(% of Respondents)

Read Rob Leavitt’s blog post on 4 Keys to Ensuring PLM Adoption http://blogs.ptc.com/2012/05/29/4-keys-to-ensuring-plm-adoption/

Page 18: High Performance PLM: Key Success Factors for PLM Strategy, Implementation, and Adoption

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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.

© 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.

J0370 - PTC Global Services - Infographic / eBook

For more Insights from the Global

Services team, please visit

blogs.ptc.com/category/strategy/.

Or scan this code

with your mobile device.

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 Rleavit [email protected] +1-781-370-5719 Twit ter.com/PTC_Consult ing

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