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Dassault

04/01/2014. Newton, MA via @afjplmnews.

ENOVIA – the collaborative innovation application brand of Dassault Systemès enables your innovators to benefit from the true rewards of collaboration. Powered by 3DEXPERIENCE, ENOVIA goes Beyond PLM by providing leading enterprise collaborative applications for all industries, to promote innovation and operational excellence. The set of collaborative solutions includes Aerospace and Defense, Consumer Goods & Retail, Energy Process & Utilities, High-Tech, Industrial Equipment, Life Science, Transportation & Mobility. Navigate your browser here to learn more.

beyondplm-enovia

What is my conclusion? In order not to confuse existing partners and provide smooth future platform migration and compatibility, Dassault Systemès digitally encrypted announcement by color coding on the ENOVIA Solutions website. It was identified by Beyond PLM (TM) big data social innovation crawler.

Best, Oleg

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plm-vendors-differentitation

Differentiation. Competitive advantage. Value sales. I’m sure you’ve heard these buzzwords many times. Competition is part of everyday business life. Usually, I don’t speak about competition. I searched across my blog and founded only one reference to competition related writing – PLM Competition Toolbox. But I want to look in my crystal ball today. Here is the article that made me do so. Over the weekend, I’ve been reading Joe Barkai’s blog post – How To Win Without Differentiation. Article speaks about how to develop differentiation strategies and what to do when differentiation is not coming easy. I liked the following passage:

When value differentiation is too vague and difficult to demonstrate, price competitiveness does not work. Potential buyers seek other ways to drive their decisions, and, as Vermeulen points out, they rely on other factors, such as the seller’s brand, status in industry, and prior relationships. In other words, the buyer switches from assessing and comparing features and costs to differentiate based on the brand’s credibility and trustworthiness.

The article made me think about PLM vendors competition and differentiation. PLM industry is dominated by small number of large vendors (namely alphabetically – Autodesk, Dassault, Oracle, PTC, SAP and Siemens PLM). There are some specific competitive niches each of these companies were developed for the last 10-20 years. However, looking on websites and public marketing materials about PLM solutions, I can see less visible difference. These companies are targeting similar businesses and within time it is not simple to get value differentiation between brands.

Enterprise software is an interesting business. One of the characteristics of software for engineering and manufacturing is lifetime customers and legacy software. The lifecycle of customers in this domain is relatively long. It goes from extremely long in defense, aerospace programs to long in automotive and others. To get familiar with engineering software (such as CAD and PLM) takes time and effort. You need to cross educational barriers. So, when you already “in”, the entrance barrier for competitor is getting bigger. Overall investment and significant amount of customization play another role. This business is different from selling smartphones. After spending few millions of $$$ on a specific solution, it is very hard to justify the replacement of this solution with a competitor.

So, what will differentiate PLM vendors in coming 10 years?  What will become future competitive advantage? Technology will obviously play some role, but I mostly agree with Joe – “Don’t oversell technical wizardry. Buyers of enterprise software and services consider your product roadmap and long-term commitment to the space as much as they do to your product features and engineering skills. So, it is very hard to create sustainable technological advantages in this market. Very few companies succeeded to do it in the past and kept it for a long time.

However, there is one thing that getting more and more value points. I call it “vertical experience”. Sometimes vendors call it “industry practices”. However, it can go much more beyond what vendors are doing today in this space. I can see specific vertical solutions focused on design patterns, bill of material management, change management, services, suppliers related to particular segment or industry. The niche can be big enough to serve business of service providers as well as provide an impact on overall vendor business. This is a place where PLM vendors will be able to show big value to customers and fast implementation ROI. It is not simple and it takes time and dedication.

What is my conclusion? Vertical (or industry) specialization can become a future goldmine for PLM vendors and solution providers. To develop deeply integrated solution including specific behaviors in data and process management is not a simple task. Customer experience is something that very hard to gain. However, once achieved it can be leveraged for a long time. Industry verticals can become a future differentiation factor for large vendors and startup PLM companies. Just my thoughts…

Best, Oleg

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plm-software-selection-rules

Enterprise software choice is a complex decision process. The time when you was able to buy a software from trusted XYZ vendor and sleep safe is over. These days IT and other software decision makers are facing challenges related to technological and business options related to new business models, cloud technologies, specific vendors, user experience and many others. You need to swim in a sea of changes in enterprise market in order to decide what software to choose.

Very often you can hear debates about what is Product Lifecycle Management – vision, business strategy or software. Whatever PLM  means, companies and people responsible for PLM strategy and software need to make their buying decisions related to PLM software, vendor and implementation.

Last year I posted about how you can select PDM software in 5 simple steps. The last step was open ended and assumed that you need to make strategic PLM decision. Here is a quote from last year article:

“If you company is looking how to manage product development processes beyond controlling and sharing CAD (product) data, you need to evaluate PLM system. Don’t make a PDM choice without making your PLM decision first”.

Today, I want to propose few rules that can help you in the decision process related to PLM software and vendor selection. It is not about how to build your overall PLM strategy – I will mostly focus on software and vendor choices. 

1. Find real PLM use cases compatible with your requirements. Use trusted advisers that will help you to navigate to examples of PLM software usage. PLM software market place is opaque. There are lot of online information, analyzes, comparison and testimonials about PLM software. To make real financial, technological and product assessment of vendor is tricky. However, you should remember to buy a software that can perform according to your need.

2. Analyze your company engineering software (CAD and PDM) and enterprise environment (ERP). Regardless on grand PLM vision, you have to integrate PLM software with environment, which includes connection to CAD/PDM, interoperability with ERP system(s) as well as many other design, engineering and manufacturing system coming from other vendors including homegrown software developed by IT department and contractors.

3. Don’t buy immediate technological advantages. For most of PLM systems, technologies doesn’t change much for the last 10-15 years. Even if PLM software vendor claims some technological uniqueness today, it will be adjusted in 2-3 years by new development, another new technologies and technological acquisitions PLM vendors are making. If you want to make some tech-driven decision, do it ‘test based’ for a specific use case and/or process in your company.

4. Cloud PLM is first about software eco-system and IT strategy. Cloud can bring lots of advantages. However, if your company is still on premise and IT is conservative, think carefully before pushing into cloud PLM race. You can burn time and resource on convincing your company and solving “general cloud software obstacles” before getting PLM value pay off.

5. PLM usability is relative. Everybody wants (and claims) to be easy to use like Google these days. However, devil is in details and enterprise software is different from consumer web. Also, what looks simple for you will be different for your colleague. Test by yourself, but don’t underestimate software evaluation by people outside of IT ecosystem. There are few books and online resources for UX (user experience) passionate people – try them out. Start from Steve Krug’s book Don’t Make Me Think - it will help you to build a sense of simplicity and own guidance.

6. Don’t buy PLM vendor roadmaps. Most of roadmaps are aspirational.  You must look on available software releases and community of users. Community will give you an indication of how careful vendor is following their roadmaps, promises and (mostly important) long term software compatibilities.

7. Open source software isn’t much different from functional and technological standpoint. Open source software is not cheaper and simpler – it is just a different business model. There are variety of open-source flavors and you need to read all legal provisions. Involve your legal advisers to help you to go through language and meaning.

What is my conclusion? In my view, PLM software domain will be turbulent in 2014. New companies, technologies and business models are coming to disrupt and change existing industry landscape. However, your PLM software buying decision will probably stay with you more than 1-2 years. So, my recommendation is to review available software, make trials, experiment and build use cases. These days software vendors are open to convert customers into their trusted advisers. Don’t afraid to be a part of the PLM vendors’ development process and decision making. In most of cases, it is fun and you will love it. Just my thoughts…

Best, Oleg

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The challenging face of dual PLM clouds

December 28, 2013

Cloud PLM is a not a new word any more. Established vendors and newcomers in PLM world are developing strategies and implementations how to embrace PLM cloud. In my article few months ago, I’ve talking about multiple faces of the cloud – public, private, hybrid, collocation. Jim Brown, well-known PLM analyst and my long time blogging […]

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PDMish, PLMish and other CADPDLM bundles…

November 20, 2013

Engineering and manufacturing software is full of interesting TLAs that companies continuing to invent even these days. Only yesterday GrabCAD introduced Workbench enhancement under somewhat that can be considered as a very traditional name – Collaborative Product Development (CPD) Platform. Chad Jackson, my long time blogging buddy published an article with fascinating title – ENOVIA […]

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Will Tesla Motors build their own PLM system?

November 4, 2013

History of CAD and PLM development knows examples of home grown systems. 20-25 years ago, the idea to build their own CAD and PDM system was considered as an absolutely normal option. Since that time, many things changed. In my view, the last decade clearly demonstrated PDM/PLM trend towards using more OOTB (out-of-the-box) and ready […]

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PLM Data Tagging Is Getting Some Traction

October 7, 2013

Tagging is one of the most popular ways to classify information. Tagging became a mainstream way to classify information in almost every web application these days. Initially introduced on photo sharing websites, tagging expanded almost everywhere. Tagging is an important feature of every “Web 2.0″ solution. You can read more on wikipedia here. Here is […]

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Dassault IFWE and PLM Cloud Switch

August 1, 2013

As you know, cloud is one of the topics that near and dear to me already long time. I’ve been covering PLM vendors and their cloud strategies for few years now. Maybe you remember my very old post from 2009 speaking about How will PLM applications change when they move to a cloud? Today it is […]

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Will IBM return to PLM software business?

March 4, 2013

It is almost 2 years since Dassault Systems completed the transaction to acquire and integrate IBM PLM operations into DS. The historical IBM/DS press release is here. At the same time, IBM is continue to focus on product innovation. Navigate here and may learn about IBM product development innovation, system engineering and lifecycle support. In […]

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Why PLM Experience is a bad idea?

November 26, 2012

Experience. This word is getting into our lexicon and we start using it often. It is a nice word. We like it. It reminds us success of Apple, flawless way to find information using Google maps, slick Macbook Air and many other things that we started to call “experience” now. I took few days off […]

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