Industry Outlook
A PLM Industry Analysis
By Ed Miller & Ken Amann, CIMdata
CIMdata stresses that PLM is not just a technology, but rather, is a strategic business approach that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination, and use of product definition information across the extended enterprise, and spanning from product concept to end of life-integrating people, processes, business systems, and information. PLM forms the product information backbone for a company and its extended enterprise. It is composed of multiple elements including: foundation technologies and standards (e.g., XML, visualization, collaboration, web services, administrative services, etc.), information authoring and analysis tools (e.g., MCAD, ECAD, software, technical publishing, finite element analysis, etc.), core functions (e.g., data vaults, document and content management, workflow, product structuring, program management, etc.), functional applications (e.g., configuration management, engineering change control, etc.), and business solutions (e.g., new product introduction, supply chain collaboration, etc.) that incorporate best practices and methods.
PLM solutions are rapidly expanding to encompass more areas in which sharing and leveraging the intellectual assets of a product or plant provide significant value to a business. Several of these are particularly interesting as they are providing for more complete and comprehensive PLM solutions including:
- Electronics and software management and providing tighter, more comprehensive integration of electronic design automation systems and software management systems into the overall PLM solution
- Digital Manufacturing
- Service after sales including maintenance, MRO, and warranty programs
- Requirements management
- Product and program portfolio management
- Asset management within discrete industries
- Recipe or formula management in process industries
- Compliance management
Worldwide investments in PLM grew strongly during 2004 - continuing the solid growth that started during 2003. The overall PLM market was up 8% when compared with 2003 to approximately $16.7 billion overall (see Figure 1). Of that, approximately 68% ($11.4 billion) was for Tools while 32% ($5.3 billion) was for cPDm. Both the Tools segment and the cPDm segment grew in 2003, with cPDm investments increasing significantly more rapidly with a growth of approximately 15% over 2003.
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