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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity ." Marc Halpern @mrhalpern4353 Product Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era

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Page 1: Product Innovation Platforms: Enabling Product Design · PDF fileProduct Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era ... • Product Innovation

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."

Marc Halpern @mrhalpern4353

Product Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era

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Key Issues

1. Why do you need Product Innovation Platforms to enable products and "things" for digital business?

2. What is a Product Innovation Platform and how will it impact you, your company, and your value chain?

3. How should you strategize adoption of Product Innovation Platforms?

Page 3: Product Innovation Platforms: Enabling Product Design · PDF fileProduct Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era ... • Product Innovation

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

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Key Issues

1. Why do you need Product Innovation Platforms to enable products and "things" for digital business?

2. What is a Product Innovation Platform and how will it impact you, your company, and your value chain?

3. How should you strategize adoption of Product Innovation Platforms?

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Product and "Thing" Design Must Combine OT With IT to Enable Digital Business

Presenter
Presentation Notes
http://www.decat.com.mx/productos-y-servicios/ http://business-technology.co.uk/2014/07/creating-a-brave-new-connected-world/
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Product Needs Evolve With Digital Business: A Case Study in Climate Control

Legacy Leader in Climate Control

Paradigm Shift

"Fast Follower"

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Digital Business Demands Systems and Systems-of-systems Thinking to Design Products

Processes

Factories

Even Retail Stores

Complex Machines

Services

Presenter
Presentation Notes
https://www.flickr.com/photos/crystallineradical/3049570916 https://www.flickr.com/photos/fanofretail/14047453212 https://www.flickr.com/photos/lord_yo/6824514463 https://www.flickr.com/photos/scobleizer/3009516045 https://www.flickr.com/photos/jurvetson/2516472309
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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.

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Key Issues

1. Why do you need Product Innovation Platforms to enable products and "things" for digital business?

2. What is a Product Innovation Platform and how will it impact you, your company, and your value chain?

3. How should you strategize adoption of Product Innovation Platforms?

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Product Innovation Platforms Continuously Enhance PLM Discipline

Governance Supply Network

Demand Insights

Presenter
Presentation Notes
Key Issue: What is PLM and how does it differ from other types of enterprise applications? The principles of product life cycle management (PLM) are not new. William McKnight, who commandeered 3M in the 1920s, understood it. George Eastman applied the principles at Kodak in the 1890s. In the automotive industry, Henry Ford, Gottlieb Daimler and Kiichiro Toyoda understood the principles, as did their engineers. Years ago, engineers possessed general skills and had broad responsibilities that required integrated and multifaceted thinking. Communication was close and personal. Industrial renaissance individuals guided, directed and implemented product concepts, sold their products profitably, made money for their shareholders, learned lessons and continuously improved their companies' performance. Increasing product complexity and growing competition demanded greater domain expertise. As enterprises grew diverse types of domain expertise, they increasingly faced lack of alignment across their organizations and discordant workflow. Arguably, major enterprises lost focus of their purpose. IT for design and engineering helped solve complex design issues, decreasing design cycle times while adding greater technical precision, but it exacerbated the broader business issues of integrated efforts, coordination and alignment of "product organizations," such as engineering and manufacturing, with the rest of the enterprise. Now we have come full circle. Manufacturing industries and software vendors realize that the greatest opportunity is to harness product life cycle information through PLM across the enterprise to recapture the alignment and coordinated effort of yesteryear in today's more-complex world.
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Extreme Behavior

NEXUS

Global-class Delivery

Pervasive Access

"Big" Context

NEXUS

"Nexus of Forces" Underpins the Promise of Product Innovation Platforms

Sharing Engineering and Manufacturing

Knowledge

Perform Computations Any Time and

Anywhere

Continuous Learning from

Patterns in Systems Data

Collaborate and Communicate Any Time and

Anywhere

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Designing for Digital Business Requires IT Capability Beyond Current PLM Software

Product Innovation Platforms

Community

Insight Discovery

Accessibility Adaptability

Reuse

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Product Innovation Platforms: More Than Today's Design and PLM Software

Innovation Enabler

Today's Design and PLM Software

Product Innovation Platform

Insight Marginally interfaced simulation/analytics

Integrated "big data" analytics and simulation

Page 12: Product Innovation Platforms: Enabling Product Design · PDF fileProduct Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era ... • Product Innovation

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Product Innovation Platforms: More Than Today's Design and PLM Software

Innovation Enabler

Today's Design and PLM Software

Product Innovation Platform

Insight Marginally interfaced simulation/analytics

Integrated "big data" analytics and simulation

Adaptability Time-consuming IT involvement

Flexible via SOA

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Product Innovation Platforms: More Than Today's Design and PLM Software

Innovation Enabler

Today's Design and PLM Software

Product Innovation Platform

Insight Marginally interfaced simulation/analytics

Integrated "big data" analytics and simulation

Adaptability Time-consuming IT involvement

Flexible via SOA

Reuse Disconnected incompatible data makes search hard

Enhanced textual and geometry-based search

Page 14: Product Innovation Platforms: Enabling Product Design · PDF fileProduct Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era ... • Product Innovation

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Product Innovation Platforms: More Than Today's Design and PLM Software

Innovation Enabler

Today's Design and PLM Software

Product Innovation Platform

Insight Marginally interfaced simulation/analytics

Integrated "big data" analytics and simulation

Adaptability Time-consuming IT involvement

Flexible via SOA

Reuse Disconnected incompatible data makes search hard

Enhanced textual and geometry-based search

Accessibility LAN/WAN networking Instantaneous via the cloud

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Product Innovation Platforms: More Than Today's Design and PLM Software

Innovation Enabler

Today's Design and PLM Software

Product Innovation Platform

Insight Marginally interfaced simulation/analytics

Integrated "big data" analytics and simulation

Adaptability Time-consuming IT involvement

Flexible via SOA

Reuse Disconnected incompatible data makes search hard

Enhanced textual and geometry-based search

Accessibility LAN/WAN networking Instantaneous via the cloud

Discovery Disconnected tools/ hard to understand data

Integrated search, analytics, and simulation

Page 16: Product Innovation Platforms: Enabling Product Design · PDF fileProduct Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era ... • Product Innovation

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Product Innovation Platforms: More Than Today's Design and PLM Software

Innovation Enabler

Today's Design and PLM Software

Product Innovation Platform

Insight Marginally interfaced simulation/analytics

Integrated "big data" analytics and simulation

Adaptability Time-consuming IT involvement

Flexible via SOA

Reuse Disconnected incompatible data makes search hard

Enhanced textual and geometry-based search

Accessibility LAN/WAN networking Instantaneous via the cloud

Discovery Disconnected tools/ hard to understand data

Integrated search, analytics, and simulation

Community Human networking or directories

Social networking paradigm

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Product Innovation Platform — Some Key IT Requirements

Visualization, Collaboration, Social Networking

Modeling, Simulation, Analytics

Search, Collaboration, Simulation, Analytics

Cloud, Mobile, Open Architecture, Web Application Services Content Management,

Open Architecture, Search Standards

Open Architecture, Flexible Workflow, Easy Data Accessibility

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Product Innovation Platforms: Functional Layering for Continuous Product Innovation

Requirements Management

Systems-centric Design (Software, Electronics, Hardware, Recipes, and So on)

Product Life Cycle Management (Strategy, Planning, PDM, and Governance)

Portfolio Planning and Management

Simulation and Test

Simulation and Test Data Big Ideas Big Data Voice of

Customer

IoT Quality Data Cost Data

… And So on E.g., Digital Marketing

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The Major Design, PLM, and Business Suite Vendors Will All Offer Product Innovation Platforms by 2017 By 2020, 25% of large discrete manufacturers and formulated goods producers will use Product Innovation Platforms for design and PLM

Reasons SPA will be true: • Emergence of digital business

• Increasing acceptance of cloud-based advantages

• Changing product requirements

Reasons SPA could be false: • Concerns about IP protection in

the cloud

• The systems-based learning curve is too steep

• Needed standards for data sharing will evolve too slowly

Presenter
Presentation Notes
Given the increasing dissatisfaction with the paid-up licensing model and increasing opportunities for ostensibly lower-cost business models, Gartner expects that an increasing number of manufacturers will investigate and pilot PLM software sold and supported by alternative business models. Atlhough it is likely that open-source and SaaS business models will continue to grow, important factors inhibit accelerated growth of the alternatives. For example, manufacturers considering SaaS are reluctant to maintain product content outside the four walls. Gartner views this concern as unjustified, because the data servers supporting SaaS have best-in-class security. Additionally, most intellectual property is compromised by disgruntled or disloyal workers, rather than by hacking into computer networks. Yet, despite the objective rationale to adopt SaaS, unwarranted fears will continue inhibiting the growth of this business model. Gartner perceives that the market is responding more favorably to open-source PLM software, because it can be deployed and used inside the four walls. However, executives remain uncomfortable, because the vendors of open-source PLM software such as Aras, are still relatively small.
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Potential Product Innovation Platforms Vendors Will Evolve Differently

Product Innovation Platforms

Autodesk, Aras, Dassault Systemes,

PTC, Siemens

Product Design and PLM

Business Suite

IFS, Infor, Oracle, SAP

Big Lever, Gensight, Jama Software,

Planisware, Sopheon, Mathworks

Niche Contributors

Page 21: Product Innovation Platforms: Enabling Product Design · PDF fileProduct Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era ... • Product Innovation

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Key Issues

1. Why do you need Product Innovation Platforms to enable products and "things" for digital business?

2. What is a Product Innovation Platform and how will it impact you, your company, and your value chain?

3. How should you strategize adoption of Product Innovation Platforms?

Page 22: Product Innovation Platforms: Enabling Product Design · PDF fileProduct Innovation Platforms: Enabling Product Design and PLM in the Digital Business Era ... • Product Innovation

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Perceived Risks

Inadequate Openness

Incomplete Standards

Uncertain Cloud Performance

Steep Learning Curve Cyber-terrorism

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Step 5

Change Management

Step 3

Implementation Road Map

Road Map to Enabling Product Innovation Platforms for Product Life Cycle Management

Step 2

Root-cause Analysis

Step 1

Business Case

Step 4

Partner Selection

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Key Messages

• You need the next generation of design and PLM IT to support the emerging digital business world.

• Product Innovation Platforms, the next generation of IT for design and PLM, improves today's PLM and more.

• Enabling Product Innovation Platforms starts with the business case and addressing risks with the road map.

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Recommended Gartner Research

Product Innovation Platforms: The Foundation of Product Design and PLM in the Digital Business Era Marc Halpern (G00264008)

Hype Cycle for Discrete Manufacturing and PLM, 2014 Marc Halpern and others (G00263257)

Hype Cycle for Process Manufacturing and PLM, 2014 Janet Suleski and others (G00263399)

Lessons Learned From Cloud in Manufacturing Industries Dale Hagemeyer, Thilo Koslowski and others (G00259827)

Survey Analysis: Why Manufacturers Still Struggle to Modernize Collaboration Michael Shanler and Marc Halpern (G00238925)

Innovation Insight: Exploiting Cloud Services to Improve and Transform Your Supply Chain Innovation Michael Dominy (G00261032)

For more information, stop by Gartner Research Zone.