Product Lifecycle Management: An Integral Part of the Future of Manufacturing

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Product Lifecycle Management: An Integral Part of the Future of Manufacturing Karthik Sundaram, Senior Research Analyst Industrial Automation & Process Control Industrial Automation & Process Control September 13, 2011

Transcript of Product Lifecycle Management: An Integral Part of the Future of Manufacturing

Product Lifecycle Management:An Integral Part of the Future of Manufacturing

Karthik Sundaram, Senior Research AnalystIndustrial Automation & Process ControlIndustrial Automation & Process Control

September 13, 2011

Functional Expertise

� Technical expertise in the field of Industrial Automation & Process Control. Particular expertise in:

- Engineering of Safety Systems (Invensys Triconex)

- Site commissioning of Major Gas projects

- Exposure with Major EPC Clients and End Users across the globe

Industry Expertise

� Over three years of Industrial experience in the field of Automation & Process Control, leveraging long-standing

working relationships with leading industry participants in

- Safety Systems

- Distributed Control Systems

- HMI & SCADA

What I bring to the Team

Today’s Presenter: Karthik Sundaram

Place photo hereShadow Background

for effect

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What I bring to the Team

• Intensive Experience and domain expertise in the Automation Industry

• Exposure to major Industry standards and architecture

• Global experience with leading corporates in Singapore & Qatar

Career Highlights

� Extensive expertise in Safety systems for Oil & Gas and Refinery Projects.

� Worked in major projects for Invensys, India with global clients in the field of Engineering, EPC and Process

Industries. This includes

- Qatar Gas

- Fluor, USA

- CTJV, Qatar

- Tecnicas Reunidas, Spain

- Emerson Process Management, Singapore

Education

� Bachelor of Engineering from Anna University, Chennai, India.

Karthik SundaramSenior Research Analyst

Frost & SullivanEuropeChennai, India

Agenda

Market Overview

Market Analysis

Market Segmentation

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Product Trends

PLM in Future of Manufacturing

Industry Challenges, Market Drivers and Restraints

Conclusions

Market Overview

Comprehensive business strategy that covers product lifecycle fromideation to end-of-life.Comprehensive business strategy that covers product lifecycle fromideation to end-of-life.

PLM is graduating into a “strategic necessity” formanufacturing process and product planning.PLM is graduating into a “strategic necessity” formanufacturing process and product planning.

European PLM market revived considerably in 2010European PLM market revived considerably in 2010

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The market is strongly competed by major PLM vendors,niche participants and ERP vendors offering PLM solutions.The market is strongly competed by major PLM vendors,niche participants and ERP vendors offering PLM solutions.

Collaborative Product Definitions Management (CPDM) accountedfor 42.0 percent of the total European PLM Market in 2010, and wasthe fastest growing product segment in 2010.

Collaborative Product Definitions Management (CPDM) accountedfor 42.0 percent of the total European PLM Market in 2010, and wasthe fastest growing product segment in 2010.

European PLM market revived considerably in 2010and registered a year-on-year growth of 6.9 percent in2010.

European PLM market revived considerably in 2010and registered a year-on-year growth of 6.9 percent in2010.

Source: Google Images & Frost & Sullivan Analysis

Market Segmentation

Product Lifecycle Management Market (Europe)

Authoring & Analysis Tools Collaborative Product Definitions Management (CPDM)

Digital Manufacturing

Computer-aided Design,

Computer-aided Manufacturing, Finite

Element Analysis, Stress Analysis

Product Data Management (PDM), Portfolio Management, Enterprise

Application Integration (EAI)

Enterprise Data Integration,

Virtual prototype testing,

Synchronization of

Design and Manufacturing

Source: Frost & Sullivan Analysis.

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Utilities & ProcessConsumer Packaged

GoodsHigh-Tech & Electronics Machinery &

Industrial

Automotives & Transport

Others

(Pharmaceuticals, Medical Devices etc)

Aerospace & Defense

Source: Frost & Sullivan Analysis

European Regions included in the study are as

follows:

• Germany

• France

• Italy

• The United Kingdom

• Scandinavia (Denmark, Finland, Norway and

Sweden

• Benelux (Belgium, Netherlands and

Luxembourg)

Market Segmentation

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Luxembourg)

• Iberia (Spain and Portugal)

• Rest of Western Europe (ROWE) (Austria,

Greece, Ireland and Switzerland)

• Central and Eastern Europe (CEE) (Poland,

Hungary, The Czech Republic, Slovenia, Slovakia,

Lithuania, Latvia, Estonia, Bulgaria and

Romania)

Market Analysis -1/2

Product Lifecycle Management Market : Forecast by Product Type (Europe)

5.0 %

D ig it al M anuf act ur ing

C PD M

A ut hor ing & A nalysisCAGR 6.1%

CAGR 7.9%

4.6 %

43.6 %5.0%

42.0%

53.0%

Product Lifecycle Management Market : Revenue Breakdown by

Product Type (Europe), 2010

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53 .0 %

4 2 .0 %

CAGR 7.0%

2017

51.8 %

2010

Authoring & Analysis Tools CPDM Digital Manufacturing

Source: Frost & Sullivan Analysis.

15%44%

41%

Major PLM Vendors Niche Players ERP Vendors

Product Lifecycle Management Market : Market Share Analysis (Europe), 2010

Market Analysis - 2/2

10.0%

7.5%

22.5%

PLM Market : Percent of Revenues by End-users (Europe), 2010

PLM Market : Percent of Revenues by Geographic Regions (Europe), 2010

24.0%

10.5%10.0%

7.0%

6.0%

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13.0%

14.0%8.5%

24.5%

Automotive & Transport Aerospace & Defense

CPG Hi-tech and Electronics

Machinery and Industrial Utilities & Process

Others

17.5% 12.5%

4.0%

8.5%

Germany Italy France

UK Iberia Scandinavia

Benelux ROWE CEE

Source: Frost & Sullivan Analysis.

Industry Challenges

Lack of standardised product definitions affect end-user perception

Industry

Poor presence in process industries

Product Lifecycle Management Market: Impact of Top Four Industry Challenges (Europe), 2011-2017.

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Integration of PLM with higher platforms- a predicament for pure-play vendors

Influx of home-grown solutions restrains market growth

Industry Challenges for Product Lifecycle

Management

Source: Frost & Sullivan Analysis.

Market Drivers and RestraintsM

ark

et

Dri

ve

rs

Increasing focus on digital manufacturing

Seamless integration with ERP and MES

platforms boosts expansion

Need for productivity and product innovation

drives growth

Product Lifecycle Management Market: Market Drivers and Restraints (Europe), 2011-2017

Emerging green fields of CPG, High-tech

and electronics in Europe bolster PLM growth

IMPACT

1-2 Years 3-4 Years 5-7 Years

Medium High High

Medium

Medium

High

Medium

Medium

Low

Low Medium High

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Increasing focus on digital manufacturing

Ma

rke

t R

es

tra

ints

Significant mergers and acquisitions will affect niche participants

High fragmentation of cPDm market restrains market size and pricing

Saturation of authoring and analysis tools affects growth

Low Medium High

Medium Medium High

Medium Medium High

Medium Low Low

Source: Frost & Sullivan Analysis.

Product Trends

2. cPDm

1. Authoring and

Analysis Tools

Evolution of PLM

Product Lifecycle Management Market: Evolution of PLM Products (Europe), 2010

Product Lifecycle Management Market: Scope of PLM (Europe), 2010

Product Design Ideation

Design Engineering

Manufacturing

Engineering

Au

tho

rin

g a

nd

An

aly

sis

Co

lla

bo

rati

ve

Pro

du

ct

De

fin

itio

n M

an

ag

em

en

t (C

PD

M)

Dig

ita

l M

an

ufa

ctu

rin

g

Pro

du

ct

Lif

ec

yc

le

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3. Digital Manufacturing

of PLM Engineering

Simulation/Analysis

Quality Check

Sales and Distribution

Service Maintenance

Disposal

Au

tho

rin

g a

nd

An

aly

sis

Co

lla

bo

rati

ve

Pro

du

ct

De

fin

itio

n M

an

ag

em

en

t (C

PD

M)

Dig

ita

l M

an

ufa

ctu

rin

g

Source: Frost & Sullivan Analysis.

Pro

du

ct

Lif

ec

yc

le

PLM in Future of Manufacturing

PLM transforming into a repository of business

intelligence

Seamless exchange of business intelligence

between ERP and PLM will enhance efficiency by

optimization of resource planning

SustainabilityFuture

ofManufacturing

Cloud Computing

Smart Grids

Mega Trends and PLMMega Trends and PLM

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Sliding doors and longer windows to view nature from

the ground up

The ERP-PLM-MES MatrixThe ERP-PLM-MES Matrix

Integration of PLM and MES will be a productive circle of data exchange that will aid

product innovation and improve manufacturing

process planning

A bidirectional exchange of recommendations between PLM and MES will enable continuous improvement

throughout the production cycle

Mobile & Wireless Technology

Integrated Enterprise Ecosystem

Source: Frost & Sullivan Analysis.

Conclusions

Need for Product

Innovation

Regulatory Compliance

Emerging Markets of Eastern Europe

Global Financial Crisis

“ CPDM segment will drive growth over the

forecast period ”

Expected Growth of CPDM, 2011-2017.

CAGR: 7.9 %

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Source: Frost & Sullivan Analysis

Product Lifecycle

Management Market

in Europe Process Industries – a Growth Opportunity

Sustainability & Lifecycle

Assessment

Fashion & Apparel in Europe – An Emerging

PLM Market

Growth of CPDM Segment

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For Additional Information

Anna Zanchi

Corporate Communications

Industrial Automation & Process Control

+39 02 4651 4819 [email protected]

Sivakumar Narayanswamy

Program Manager

Industrial Automation & Process Control - Europe+91 44 6681 [email protected]

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Muthukumar Viswanathan

Practice Director

Industrial Automation & Process Control - Europe

+44 20 7915 7804

[email protected]

Karthik Sundaram

Senior Research Analyst

Industrial Automation & Process Control - Europe

+91 44 6681 [email protected]