Cost Reduction, Closing the Information Loops, Reinventing Your Business Model

2PLM Newsletter

John Stark Associates

Welcome to 2PLM, an e-zine distributed about every two weeks.

April 27, 2009 - Vol12 #3

This issue includes :


Cost Reduction in the Downturn: The Fundamentals

by Roger Tempest

The April 13 issue of 2PLM pointed out that there appears to be very little support from the PLM supply side for industries in which PLM activity is being hit hard by the recession, and asked the question: "How can the PLM vendors be proactive without spending money on empty gestures?"

In order to find the answer, the PLMIG launched a Vendor Support Survey and went on to ask: "If you imagine a 'fairy godmother' who could grant you one PLM wish (for something that would be immediately useful while your company is in "recession mode"), what would that be?"

One of the early answers was so striking that it deserves a discussion all on its own. The response was:- "A coherent PLM Vision, Strategy and Plan that are understood and supported by all levels of management."

This is one of the greatest needs in PLM, and the missing link between failure and success for most companies. The lack of it probably wastes more money in product development and support than anything else, and that is why it is so important in a cost reduction context.

For maximum cost reduction effect, every word in the statement must be true. The Vision, Strategy and Plan must be separate from each other, and each must be very clearly defined. The PLM Vision must be expressed in the present tense, describing the scenario as it will look when the PLM implementation is complete. The PLM Strategy must be developed at the same organisational level as the full company strategy, and must be integrated with it. The PLM Plan must be a robust and comprehensive programme that moves inexorably towards the long term goal.

Needless to say, as PLM covers the entire enterprise, so must the Vision, Strategy and Plan. It is amazing how common it is to talk to PLM teams and find that they are working in a geographic region, and that there is a separate team on the other side of the Atlantic with whom they exchange emails once in a while.

The last part of the statement explains where most of the cost leakage occurs. The Vision, Strategy and Plan must be "understood and supported by all levels of management". This is how large corporations, in particular, lose a lot of money. The corporate PLM function rolls out the PLM implementation based on the involvement of key players around the organisation. However, "key players" are not "all levels of management". When the non-key managers don't understand or agree with what they should be doing, they work sub-optimally.

There can be a lot of confusion between 'PLM' and 'PLM spend'. PLM spend is discretionary, but PLM is not. If your business sells products (and almost every business does) then you must do Product Lifecycle Management, even if your budget for hardware, software and services is nil. If your PLM is ineffective, your product development and support is ineffective and you're wasting money - in terms of time, resources, loss of revenue, and plain hard cash.

A quick and inexpensive way to react to the downturn is to revisit your PLM Vision, Strategy and Plan and see if they are as they should be. Then take an objective look at the "As-Is" situation across your extended enterprise, and see how close that is to the Plan. There will be discrepancies. What are they; what can they tell you; and what actions can you take?

More on the detailed responses to the Survey will follow in the next 2PLM. 

Please send your comments via

Roger Tempest is co-founder of the PLMIG.


 Product Lifecycle<br />
            Management: Paradigm for 21st Century Product Realisation  


Closing the Information Loops across All Phases of All Kinds of Lifecycles

by David Potter 

The concept of "Closed Loop Lifecycle Management" (CL2M) owes its inception to the work and results of the EU PROMISE Project. This is the second in a series of short articles providing a foundation for understanding not only the important elements of CL2M, but also its considerable future impact on the effective exploitation of all kinds of lifecycle information.

At its commencement in November 2004, the scope of the EU PROMISE Project was quite clearly focused on closed-loop Product Lifecycle Management, and it had the following contractual objectives:

1. To develop new closed-loop life cycle information flow models for BOL, MOL and EOL

"In order to close the information flow for the entire product life cycle, product and process models will be developed for the BOL, MOL and EOL phases. These models will be integrated into the product life cycle models and will be the foundations of new software modules able to support decision making in various product development related fields such as Product Diagnostics, Preventive Maintenance, End-of-Life, Adaptive Production, Design for X (DfX), where X stands for Use, Manufacturing, Maintenance, Service, Logistics, EOL, etc. These modules will be managed through their integration in a web-based Product Lifecycle Management system (PLM)."

2. To develop new PLM system and IT infrastructure exploiting the capabilities of smart product embedded information devices

"A new PLM system will make appropriate product information available through a local wireless connection to product embedded information devices and through remote Internet connection to distributed Knowledge Repositories."

3. To develop new standards to allow the technologies and associated tools developed by the PROMISE project to be accepted by the market and allow it to expand quickly by creating an appropriate environment for the development of new innovative applications

"Appropriate standardisation activities will be initiated in order to generate new standards at the required levels (RFID, sensors, intra-product data interfaces, system) to allow the management and control of the proposed new PLM functions and operations to be developed."

4. To develop new working and business models appropriate for the use and exploitation of the new technologies and tools to be developed by all actors involved in a product lifecycle

"PROMISE will explore human and social issues towards the development of a sustainable business model, able to serve the deployment of new innovative ways of work that will influence existing businesses or create new ones, after the acceptance of the PROMISE technology by the concerned stakeholders at a global level."

In striving to meet these objectives, the project consortium partners made many fascinating discoveries which led us most significantly to identify CL2M as a concept, but also to recognise some quite unexpected impacts with regard to the technology advances and emerging concepts like the Internet of Things. I propose to introduce these gradually over the future articles in this series.

The parallel series in this newsletter by Scott Cleveland on the topic of Business Process Management is also very significant, since the successful realisation of CL2M will be impossible without the proper level of recognition and effort being given to its impact on business processes.

CL2M has a particular significance for the future of PLM, but it also has ramifications for all kinds of lifecycles inherent in supply chains, pedigree and traceability of food, beverage, pharmaceuticals, high-value retail, and health care applications; and when you look closely you can see a whole spectrum of interdependencies in the information needs of these different disciplines.

CL2M is a very exciting and long-term opportunity. I welcome and encourage feedback or questions from anyone reading this article on my blog at

David Potter is Chief Technical Officer, Promise Innovation International Oy., and former Chairman of the Project Steering Board of the EU PROMISE Project.



Reinventing Your Business Model

by Scott Cleveland
A current article in the Harvard Business Review talks about reinventing your business model. They see a business model having four interlocking elements that, taken together, create and deliver value.

  • Customer value proposition - Create value for customers
  • Profit formula - Creates value for itself while providing value to the customer
  • Key resources - Assets such as the people, technology, products, facilities, equipment, channels and brand required to deliver the value proposition to the targeted customer
  • Key processes - Deliver value in a way that a company can successfully repeat and increase in scale

My Thoughts....
This article caught my attention because the Harvard Business Review (HBR) sees processes as one of 4 key elements of a business model.

There is no doubt that companies are always looking to create value for their customers. And, they can't stay in business without making a profit. A great deal of effort is aimed at assembling the key resources to deliver value to their customer. However, I will argue that managing key processes is treated lightly by comparison.

Even HBR is talking only of the processes that deliver value to the customer.

In reality, a company is a collection of processes that support a 'quote to cash' process. All companies will quote a price, deliver their goods and/or services and receive cash (and provide support). The 'quote to cash' process is the backbone that keeps a company alive.

In the past, processes were analyzed with a focus on efficiency. Today, companies are beginning to look at these processes not only to increase efficiency but with a sharp eye for creating customer value.

Your Thoughts.... please post comments on my blog.

Scott Cleveland is VP Sales & Marketing, Ingenuus Software.  


PLM News


 EMA Design Automation announced that it has acquired DesignAdvance and all of its intellectual property. Details

Oracle Corp. and Sun Microsystems announced a definitive agreement under which Oracle will acquire Sun. Details



AVEVA Group plc announced a trading update following the end of the financial year to 31st March 2009. Details

EMC Corp. reported first-quarter 2009 revenue of $3.15 billion. Details


QUMAS announced ongoing growth and improved profitability for the first quarter of 2009. Details


Blueridge Analytics announced Al Wojcik has joined its senior management team as vice president of sales. Details

NxRev, Inc. named Scott Carmichael as CEO and President. Details


ANSYS, Inc. announced that IHI Corporation has selected ANSYS Quality Assurance services for its development of nuclear equipment. Details

Catalog Data Solutions announced that Brother International Corporation has selected its CDS Catalog product. Details

CD-adapco announced that Aston Martin will use STAR-CCM+. Details

Kineo CAM announced that Hi-Lex has adopted Kineo CAM's automatic path planning technology. Details

Mentor Graphics Corp. announced NXP adopted the Veloce platform for its next generation SoC for HDTV and STB. Details

Oracle Corp. announced that USANA Health Sciences went live on Oracle's Agile Product Lifecycle Management. Details

Pilgrim Software, Inc. announced that Organogenesis, Inc. has selected Pilgrim Software's ECQM platform. Details

PTC announced that American Wave Machines Inc. is using PTC CoCreate. Details

PTC announced that Force Protection, Inc. has standardized on PTC Windchill. Details

PTC announced that "Sophia Racing" has standardized on Pro/ENGINEER. Details

Technia announced orders from ibruk and Planmeca for a design solution based on 3DVIA Composer from Dassault Systemes. Details

Zuken announced that TechnoMAP has opted to user E3.redliner. Details


Akoya Inc. announced the latest release of its Design Workbench Product Suite. Details

ANSYS, Inc. announced the latest release of Simplorer software. Details

aPriori announced the availability of aPriori v6.5. Details

Autodesk announced that it is shipping AutoCAD P&ID 2010 software. Details

CSC introduced CATRack. Details

Informative Graphics Corp. announced that its web-based Brava! Enterprise is now integrated to IBM FileNet P8. Details

Lectra announced the release of the new V2R3 version of its software for the MFC Furniture solution. Details

The MathWorks announced new versions of its MATLAB parallel computing products. Details

Mentor Graphics Corp. announced Volcano Vehicle Systems Architect. Details

Pilgrim Software, Inc. announced the global availability of its SmartPulse business intelligence product. Details

RAND Worldwide announced the launch of its FT&A Extraction and First Article Inspection Utility Application. Details

Siemens PLM Software announced support for the S1000D technical publication standard within its Teamcenter suite. Details

Siemens PLM Software announced a new DoDAF capability in its Teamcenter software portfolio. Details

SmartCAMcnc announced the field test release of SmartCAM V16.0. Details

think3 announced TD PLM, a web-based suite encompassing the product life cycle, from concept to EOL disposal. Details

TransMagic Inc. announced that 3Dconnexion's 3D mice will be supported in TransMagic R8. Details

3Dconnexion announced the new SpacePilot PRO. Details


ANSYS, Inc. and Clemson University announced an agreement under which ANSYS software will be deployed. Details

Arena Solutions announced it has introduced a new premier status level to its Trusted Advisor Program. Details

Arena Solutions announced it has signed manofIT as its exclusive reseller for Israel. Details

Autodesk, Inc. announced a new Partner Portal. Details

Autodesk, Inc. announced that ADN members are shipping products compatible with the Autodesk 2010 product family. Details

CENIT announced it was awarded the title of 'IBM FileNet Partner of the Year EMEA 2008'. Details

Intergraph Corp. announced it renewed its partnership agreement with Rolta India Limited. Details

LMS and Fraunhofer LBF announced a strategic partnership agreement. Details

ProSTEP announced that Transcat PLM GmbH joins the ProSTEP iViP Association. Details

Siemens PLM Software and IMSI/Design LLC announced 2D DCM has been integrated in IMSI/Design's DoubleCAD XT PRO. Details

Spatial Corp. announced INUS Technology's Rapidform XOV2 utilizes Spatial's 3D InterOp with Manufacturing Option. Details

TraceParts and ConnectPress, Ltd. announced the launch of a co-branded, 3D CAD parts website. Details


CADCIM Technologies announced the release of Autodesk Maya 2009: A Comprehensive Guide. Details

Delcam announced that its FeatureCAM range has been certified by the Autodesk Inventor Certified Application Program for Autodesk Inventor 2010. Details

Mentor Graphics Corp.announced that its TestKompress ATPG product was honored with the 2009 Test of Time award. Details

MKS Inc. announced it was positioned in the Leaders quadrant of the Gartner, Inc. "Magic Quadrant for Software Change and Configuration Management for Distributed Platforms" report. Details


   Product Lifecycle<br />
            Management: Paradigm for 21st Century Product Realisation

 Proficiency, Inc. announced that it has been selected by Dassault Systemes for the DS CAD Data Migration Factory initiative. Details

ProSTEP iViP announced that the ECAD/MCAD Collaboration project group released ProSTEP iViP Recommendation PSI 5 in Version 1.2. Details

Quantapoint announced the opening of its new office in Los Angeles, California. Details

Siemens PLM Software announced an in-kind software grant to the University of California's CITRIS. Details

Z Corp. unveiled a "3D Printer Stimulus Package" for schools in the United States and Canada. Details

3D Systems Corp. announced availability of extra-large one-piece SLA parts through its online Pro-Parts Marketplace. Details


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