What challenges must manufacturers overcome in order to provide world-class performance in selling and delivering customized products?
How can manufacturers provide customers with seemingly infinite flexibility in product choices and still keep their margins in check?
How can manufacturers turn these capabilities into more deals won, and deals won at better margins?
How can manufacturers improve their overall throughput and shorten the delivery cycle for mass customized products?
How can manufacturers design and manage products in a way that streamlines and automates the customization effort once the product is ordered?
To explore the answer to these questions, we will review the lifecycle of two very different products. The first product will be a new car, arguably a product with complex engineering, and one that is available with many different features and options. The second will be a new picture window for a living room, perhaps to let us look at our new car in the driveway. The results will surprise many people as we find that while the design of the automobile is complex, there are also many complexities for manufacturers that produce products like windows that defy their simple appearance. In fact, these complexities reach past the design cycle into the order cycle, where customization to specific customer requests transitions from validating and pricing the order to designing, producing and delivering the requested product. We will highlight some very complex and difficult challenges in selling, designing and producing customized versions of these products that have a seemingly infinite number of end configurations, and point out improvement opportunities to allow manufacturers of these products to become more competitive and profitable.
[post_title] => Mass Customization of Highly Configurable Products
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[post_date] => 2012-03-23 17:35:27
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[post_content] => Digital Manufacturing: The PLM Approach to Better Manufacturing Processes Discusses the use of technology—including 3D CAD and simulation—within a PLM strategy to help manufacturers develop more profitable products by optimizing the planning, development and deployment of better manufacturing processes. Please enjoy the free Introduction below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Introduction
Digital Manufacturing in a PLM Strategy
Produce it Digitally – Before Investing
Simulation Encourages Innovation
Find the “Gotcha” Before Design Freeze
Reduce the Need for Physical Prototypes and Mockups
Build the Process in Parallel
Optimize the Production Line – Before Deployment
Optimize Assembly Sequences and Steps
Communicate Processes to the Plant
Don’t Forget the People Factor – Ergonomics
Keep Production Equipment in Production
Don’t Leave Manufacturing in a Vacuum
Adopting Digital Manufacturing Concepts
Managing the Digital Manufacturing Program
Recommendations
About the Author
Introduction
Product Lifecycle Management (PLM) is a business strategy that enables manufacturing companies to achieve greater profitability from their products. Within PLM, there are a number of tools designed to accomplish this, with a lot of attention historically placed on the design of the product itself. A new and fast growing discipline within PLM is Digital Manufacturing, a strategic approach to developing and deploying optimal manufacturing processes. Digital Manufacturing consists of new business processes, design methodologies, organizational approaches and software tools that help manufacturers improve their competitiveness and product profitability by planning, designing and implementing better manufacturing processes.
Let’s step back and look at the modern design environment to understand why Digital Manufacturing is becoming increasingly important to manufacturers. Ideally, we could all visualize a product in our heads and communicate the design to each other in verbal or simple written form. This may be possible for a simple object, but today’s products are far too complex for that. To communicate complex designs, product engineers have turned to visual design and communication tools to translate the product in their imagination into a digital representation. Once digitized, the design can be shared, communicated and collaborated on electronically with others. Today’s Computer Aided Design (CAD) systems reduce the burden on verbal and written communication, allowing product designs to transcend differences in location, time and even language. As CAD tools have become more powerful and have incorporated 3D Modeling, the communication has improved dramatically. Even complex products with thousands of components can now be modeled accurately and communicated effectively to other engineers, customers, suppliers, and manufacturing personnel.
Now that a complex product can be created in a digital format that comes very close to matching reality, it would be nice to simply hit the “Print” button on the CAD tool to produce the product. Although there are some very nice tools that generate prototypes of simple parts out of polymers, we are a long way away from the “Print” feature in CAD. In the real world, complex manufacturing environments, intricate production processes and dispersed production facilities are utilized to produce increasingly complex products.
As hard as it is to verbally describe a complex product in detail, imagine trying to describe the production line, equipment, material flow, tooling, processes and work instructions to manufacture that product. According to General Motors, the amount of information required to describe the production of a product is 1,000 times greater than the information represented in the product design itself. This explosion of data is required to properly document and communicate manufacturing complexities. Unfortunately for many engineers, the digital communication and visualization environment stops with the product design. When it is time to develop plant layouts, work cells, production processes, material flow paths and other manufacturing process designs, many engineers must rely on older, disconnected technology. Manufacturing and Process Engineers have been left to sort out their design work without the advantages that have helped Product Engineers produce more complex and robust product designs.
Some leading manufacturers are addressing the manufacturing engineering design tool gap by providing engineers with robust tools to plan, design, simulate and communicate manufacturing processes. These manufacturers are producing virtual, digital products in virtual, digital plants in order to perfect manufacturing processes before the physical plant investments have been made. What’s more, some manufacturers are seeing even greater leverage by combining the power of the digital product with the power of digital processes and resources—creating a “Digital Manufacturing” environment. By simulating production in a “Digital Factory”, companies can evaluate multiple plant and process designs before investing in even a prototype—leading to the development of production facilities and processes in a much faster, more efficient, cost effective and error free way. Further, by simulating production of virtual products in virtual plants early in the product design process, designs for the products themselves can be enhanced to make manufacturing and assembly more efficient—leading to significant product cost reductions.
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[post_content] => The Complementary Roles of PIM and PLM: Extending PLM with Product Information Management explores how Product Information Management (PIM) can extend the value of PLM implementations by providing complementary tools and capabilities. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Executive Overview
“Products” and “Items”
The “Single Source of Truth”
The Demand for Commercial Product Information
PIM and PLM Working Together
Current State of PLM
Table: Key Benefits PIM Adds to PLM
Recommendations
Summary
About the Author
Executive Overview
Product Lifecycle Management (PLM) represents a broad suite of software solutions to improve product-oriented business processes and data. PLM success stories prove that PLM helps companies improve time to market, increase product-related revenue, reduce product costs, reduce internal costs and improve product quality. As a maturing suite of enterprise solutions, PLM is still evolving to realize the promise it can provide across all facets of a business and all phases of the product lifecycle.
The vision for PLM includes everything from gathering early requirements for a product through multiple stages of product design, commercialization and eventual product retirement or replacement. Product Information Management (PIM) is a product suite that has evolved in parallel to PLM. PIM focuses on management and synchronization of product information from multiple data sources. PIM success stories have shown the ability to provide multiple benefits, with particular emphasis on reducing information complexity and information management costs. The vision for PIM is to manage product information throughout an enterprise and supply chain to improve product-related knowledge management, information sharing and synchronization.
The goals of both PLM and PIM, put simply, are to help companies make more profit from their products. PLM and PIM solutions share some of the same goals, but take different approaches to delivering value. This paper explores how PIM can be used to extend the value of PLM implementations by providing complementary capabilities that are not available in PLM suites today.
[post_title] => The Complementary Roles of PIM and PLM
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[post_content] => Maximizing Product Development Value: Realizing Value from New Products and Portfolios highlights key insights on realizing value from new products based on discussions with product development leaders. Analyzes a new approach to portfolio management that focuses on achieving the economic value available from new products. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Executive Overview
For Better Portfolios—Focus on the Value
Visualize Where Project Value is Earned
Managing for Value
Asking the Real Portfolio Questions – Where to Invest
Asking the Real Portfolio Questions – How Much to Invest
Beyond the Bubbles – A New Breed of Portfolio Software
Conclusion
About the Author
Executive Overview
It’s the typical scenario again. The project that started with such high expectations has gradually slipped into the same category as the others—mediocre at best. The team begins second-guessing. Was this the right project to pursue in the first place? Why didn’t we see the unexpected problems earlier? Could we have avoided the problems if we focused on them earlier? Could we have avoided investing so much time and money on this project? What other projects did we pass over for this—and was one of them the real gem? How can we have failed when we overcame the most challenging hurdles with flying colors—did we focus on the wrong problems? Management begins second-guessing as well. Where did the project value go? Were the initial projections merely hype? Was there real potential value that managed to slip away? Everybody wants to know why there are so many questions—but so few answers. Many companies today are turning to Product Lifecycle Management (PLM) for help.
PLM processes and software tools offer significant improvements to the development and introduction of new products. Updated design technology has collapsed development times, reduced product costs and improved product quality. New collaboration platforms have improved design processes, streamlined the handoff to manufacturing and increased project efficiency. Another category of PLM tools—Product Portfolio Management—has begun to streamline portfolio management and new product development processes. The use of these portfolio and project management tools has resulted in more efficient and effective introduction of product innovations to the market. In most cases, however, they have not delivered breakthrough improvements in portfolio value. Recent discussions with leading product development leaders point to a new, emerging approach to Portfolio Management. The new approach overlays strong decision support and project management tools with a critical element that is missing from many implementations—a focus on maximizing the value realized from new products and portfolios.
Clearly, value is the key element in any portfolio decision. Unfortunately, value is frequently the hardest thing to quantify when evaluating portfolios. Even harder than quantifying the value—and equally critical to developing high value product portfolios— is understanding the underlying factors that influence value. The true value of a project can only be evaluated properly if it is taken into context with the uncertainty and risk inherent in any development project. Creating high value portfolios is much simpler when the factors that create and destroy value for a project are clearly identified, quantified, and managed over the life of the project. Focusing on portfolio and project value throughout the product lifecycle—and particularly in new product development—promises to unlock the hidden potential missing in many portfolio management processes.
[post_title] => Maximizing Product Development Value
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[post_content] => Product Lifecycle Management Proving Value at Heinz: A PLM Case Study from the Consumer Goods Industry - Food and Beverage reviews the strategic value achieved by Heinz from implementing Product Lifecycle Management processed and software in their global business. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Introduction
Heinz Recognizes a Business Need
Heinz Takes a Global Approach
Unique Considerations at Heinz
Unique Technical Considerations
Heinz Selects an Industry-Focused Solution
The Prodika* Solution
Heinz Adopts a Pragmatic Deployment Approach
Meeting the Initial Goals
Additional Benefits – Satisfying Retail Customers
Key Observations
Summary
About the Author
Introduction
Henry John Heinz believed that "To do a common thing uncommonly well brings success." And since 1869, the H.J. Heinz Company has supported that belief. Today, Heinz is a premier international food company, with number-one and number-two brands in more than 50 countries.
In early 2000, key Heinz leaders recognized a challenge in their business–namely tracking product specifications, formulas and suppliers across a diverse, global business– and set out to solve it. Along the way, they standardized how they developed and tracked product specifications, reduced the number of ingredients they purchased, increased global communication about product and supplier information, and improved the processes they use to develop and introduce new products to the market. As stated in the Heinz 2003 annual report, “Heinz has launched VIPER (Vendor Improvement and Product Enhancement and Research), a global computerized platform designed to enable the company to dramatically simplify its myriad product specifications. Heinz also reduced its worldwide SKUs by nearly 30% in Fiscal 2003 and is targeting an additional reduction of 10% by Fiscal 2005”.
In short, the Heinz VIPER project is achieving strategic value for their business by combining new processes and technology to form innovative "ways-of-working." Heinz did not set out to implement Product Lifecycle Management (PLM), Collaborative Product Commerce (CPC), Product Data Management (PDM), or any other suite of software solutions. Heinz's core objective was to simplify operations by enhancing communication, coordination, and visibility.
In the end, Heinz has accomplished what few others in their industry have been able to do–continually leverage product information across the entire lifecycle. The fact that these new business processes and technologies are now known as “PLM”–other than giving us a good umbrella under which to discuss how Heinz improved their business–is not important. What is important, of course, is the value that Heinz has recognized from their initiatives:
Reducing complexity in product portfolios and raw material management
Decreasing the proliferation of new materials and sourcing relationships
Cross pollinating best practices among and between business units
Streamlining the way Heinz brings new products to market
PLM concepts and benefits have been appearing in the annual reports of automotive, electronics, and other high-tech discrete businesses for some time. They are now starting to become more common in the Consumer Goods, Food and Beverage industries. Those that questioned the value of PLM for these industries thought that process industries were too “simple.” In fact, the unique requirements and inherent variability of process industries underscore the benefits of Product Lifecycle Management (PLM).
* Note: Prodika was acquired by Agile, who was then acquired by Oracle.
[post_title] => Product Lifecycle Management Proving Value at Heinz
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[post_content] => Regulatory Compliance Across the Product Lifecycle: Reduced Risk and Lowered Costs Through Proactive EH&S examines the importance that regulatory compliance and product related EH&S play in protecting the value available from PLM across the product lifecycle. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Executive Overview
Compliance Is Critical to Sustained Product Value
Non-Compliance Surfaces at Inopportune Times
Moment of Regulatory Crisis– Found in Design
Moment of Regulatory Crisis– Found in Production
Moment of Regulatory Crisis– Found in Logistics
Moment of Regulatory Crisis– Found at Customer
Implementing Design for Compliance
Implementing Proactive Compliance Monitoring
Documenting Compliance
Recommendations
About the Author
Executive Overview
The value that Product Lifecycle Management (PLM) initiatives provide to manufacturers comes in many forms, including: faster introduction of products, reduced product cost, increased product sales, higher product quality, reduced waste and more valuable product portfolios. These are some of the more positive aspects of PLM that people like to talk about. One area that doesn’t get as much attention is compliance.
Regulatory compliance, while nobody would dispute the critical need for it, is not as exciting or enjoyable to discuss. The problem with leaving compliance unspoken is that a significant amount of the value associated with Product Lifecycle Management is dependent on addressing compliance in a cost-effective manner. In fact, all of the benefits of PLM could be quickly erased by significant non-compliance events that impact the company through fines, penalties, negative publicity or prohibition to sell a new product in key markets. Compliance risk may not be a glamorous topic, but it is critical to the development and sale of profitable products and responsible, sustainable corporate profitability.
Few would disagree with placing compliance to regulations as a goal for a PLM initiative, but at what level of priority? At what cost? For which jurisdictions? Without proactive management, regulatory problems are often found at the most inopportune times. This paper will review real examples of “moments of regulatory crisis”, their impact on the business, and the value that focusing on compliance throughout the life of the product can provide. Design for compliance and proactive monitoring can help companies navigate the myriad of regulatory requirements required for profitable business.
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[post_content] => What's Wrong With Application Software - A Possible Solution? discusses how model-based architectures offer potential benefits to companies by more naturally assembling solutions into business processes. Originally published on Technology Evaluation Centers (TEC). Click the report title above to download the full PDF (free of charge, no registration required).
[post_title] => What's Wrong With Application Software?
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[post_content] => Tech-Clarity's Jim Brown contributes a column to Advantage for the Product Lifecycle. The first column, Executive Perspective: Successful PLM Starts with the End in Mind, was reprinted in Cadalyst. The article suggests that companies develop their PLM strategies to support their business strategies, and offers some examples of the business value available from PLM. The key advice is to focus PLM implementations on business value instead of "going live" with the software, which is only a means to the end - improving business performance.
[post_title] => Executive Perspective: Successful PLM Starts with the End in Mind
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[post_content] => Jim Brown presents at an invitation-only SAP customer event at SAP North American headquarters in Newtown Square, Pennsylvania. The presentation focuses on the top myths regarding product lifecycle management (PLM).
[post_title] => The Value of PLM in Product and Service Leadership - Myths of PLM
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[post_content] => The Service Lifecycle Management (SLM) Approach: Strong Customer Relationships Result In Profit In The Service Industry overviews an approach to improve the profitability of services businesses by concurrently increasing service and lowering costs. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Table of Contents
Executive Overview
Improving Profitability in the Product Aftermarket
Never Ignore a Call for Help
Reduce Waste in the Call Center
Avoid the Service Call (or at least Reduce the Urgency)
Make the Right Calls First
Close the Call the First Time
Keep Technicians Productive, not Just Busy
Turn the Service Call into an Opportunity
Turn Service into Cash – Rapidly
Stop Revenue Leaks
Enhance the Customer Relationship
Grow Revenue by Restarting the Service Lifecycle
Turn to Proactive Management
Driving SLM Changes into the Business
Services Can’t Remain a Stepchild
Make the Move to SLM – Change the Business Processes
Enable the Change with Technology
Get the Right Software
Get the Right Partner
Summary and Additional Information
Summary
About the Author
Executive Overview
Customers get invoices for service that should be covered under warranty. Out of warranty work is not billed. Sales opportunities for supplies, additional products and services are not being recognized. Upgrade and replacement opportunities are not offered to the right customers. Service contracts lapse without renewal notices or attempts to upgrade. Costs are high because of unnecessary paperwork, duplication of efforts and poor service call scheduling. Customers’ service level expectations are not being met. Is this any way to service customers that rely on you to keep their mission-critical equipment in top performance? More importantly, is this any way to service customers and run a profitable business?
Profitability in the services business comes from developing and maintaining long-term customer relationships. Unfortunately for many companies, providing service to customers is an afterthought and hasn’t gotten the attention that it deserves. As manufacturers, distributors and resellers are discovering, there are hidden opportunities for greater revenue and market share available by focusing more attention on the aftermarket. Leading companies are beginning to view service operations as a strategic opportunity and focusing on improving their processes to serve their customers. This strategic approach to service, known as Service Lifecycle Management (SLM), holds significant, untapped business improvement opportunities.
The bottom line results of an SLM Strategy are compelling – increased revenue, lower costs and improved customer satisfaction / retention. This white paper explores the potential results and the path to achieving them. The paper is divided into two major sections. The first section explores the value of a Service Lifecycle Management Initiative. It highlights tangible improvement opportunities for companies to address in their businesses to improve revenue, decrease costs, and increase customer satisfaction and retention while a product is being serviced for a customer. The second section will highlight processes and technology required to successfully make the necessary changes in the business.
[post_title] => The Service Lifecycle Management (SLM) Approach
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[post_content] => A quick peek into some research on Social Business Collaboration and Advanced PPM. What do these two very interesting topics have in common? Live webcasts featuring Jim Brown of Tech-Clarity next week, Thursday and Friday February 16-17.
OK, I admit it was a cheap trick, but I hope it convinces you to learn about one (or both) of these exciting topics:
Nuage Social Business Collaboration Launch
Jim Brown will present views from his recent report on social business collaboration and the product lifecycle as a guest host of the launch of software company Nuage Corporation. Nuage is a very interesting new company with a very different view on how social computing can drive innovation and help product development teams work together and collaborate effectively, with or without a PLM system.
Register for the Webinar
Taking PPM to the Next Level
Jim Brown presents his views on Advanced PPM on this joint SAP / SmartOrg webinar. He will share his views from his report on improving product development decision making. This is a repeat performance of a popular subject, and will also explain how Advanced PPM can fit in as a workbench to extend SAP PLM.
Register for the Webinar
So I hope you can join us for these educational events, they should be exciting. Please take a look to find out about more Tech-Clarity speaking engagements.
[post_title] => Webcasts: Learn what Social Business Collaboration and Advanced Product Portfolio Management Have in Common
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Tech-Clarity shares our research, experience and insights with manufacturers and other industry clients to educate them on the business value available from the intelligent use of enterprise software. Clients benefit by focusing on the value of solutions as opposed to the technology itself.
Strategy and Advisory Services
Tech-Clarity helps software vendors and service companies by sharing our research, experience, and insights on the business value available from the intelligent use of enterprise software. Software vendors and service providers frequently invite Tech-Clarity to educate their customers and prospects on the business value of the solutions they offer, and benefit from clearer messages and more compelling descriptions of the value they offer.
Prospect and Customer Education
Jim Brown is the President of Digital Transformation Research for independent research firm Tech-Clarity. He covers digital transformation across the product digital thread for manufacturing and industrial companies including PLM, PDM, product development, portfolio management, digital manufacturing, IoT, EAM, SLM, and other solutions.
Jim founded Tech-Clarity in 2002 and has over 30 years of industry experience in the manufacturing and software industries. He began his career in manufacturing engineering and software systems at GE before pursuing management consulting at Andersen Consulting (Accenture). He subsequently served as a strategy, marketing, and product development executive for software companies specializing in ERP, PLM, Supply Chain, and related manufacturing solutions. He has a BS in Mechanical Engineering from the University of Maryland, College Park.
Jim is actively researching the impact of digital transformation and technology convergence in manufacturing. His research analyzes the business value available from new initiatives and technologies including cloud computing, advanced analytics, AI, product innovation platforms, service transformation, augmented reality, the digital twin, and the digital thread.
Mr. Brown is an experienced author and speaker and enjoys engaging with people with a passion to improve business performance through digital enterprise strategies and supporting software technology. When he’s not focused on technology, he is a scuba instructor and plays in an old guy ice hockey league.
Tech-Clarity is an independent research firm dedicated to making the business value of technology clear. We analyze how companies improve innovation, product development, design, engineering, manufacturing, and service performance through the use of digital transformation, best practices, software technology, industrial automation, and IT services.
Our mission is to help manufacturers learn how to improve business results through the use of PLM, portfolio management, CAD, simulation, MES / MOM, IoT, quality, service, analytics, and other solutions.
Meet Our Analysts
Jim Brown
Founder and President, Digital Transformation Research
Disclosure The views and opinions on this site are those of Tech-Clarity. The content is independent and objective, however, Tech-Clarity frequently receives compensation for reports and presentations in addition to consulting services. This compensation may influence the topics chosen for coverage but does not influence the views or opinions expressed. In addition, industry analysts including Tech-Clarity are frequently invited to attend conferences and briefings for which travel and reasonable living expenses are paid or reimbursed, in part or in full. Tech-Clarity does not accept compensation for posts or accept advertising on this site.
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[post_content] => Tech-Clarity Issue in Focus: Optimizing Product Portfolios with Advanced PPM: Applying Value Optimization to Portfolio Decision Making explains how companies can gain greater levels of product portfolio profitability by using value optimization techniques to make portfolio decisions. Describes how the basic best practices of PPM can be extended by Advanced PPM concepts.
Please enjoy the summary below, or click the report or title above to download the full PDF (free of charge, no registration required).
Table of Contents
Introducing the Issue
The Basics of Product Portfolio Management
The Next Level of Portfolio Decision Making
Realizing Optimal Portfolio Value
Conclusion
Recommendations
About the Author
Introducing the Issue
Companies are gaining significant business value by implementing Product Portfolio Management (PPM) best practices. According to Tech-Clarity’s Issue in Focus: The ROI of Product Portfolio Management, effective portfolio management can improve both top-line performance and bottom-line profitability. PPM does this by helping companies align their product portfolios with business objectives, effectively allocate resources to their projects, and better execute product development projects.
Despite the value achieved from these standard PPM best practices, most companies fail to reach the highest possible levels of profitability because they lack a clear understanding of the potential financial value of the products in their portfolio. Part of the problem is that current best practices and technology lack an effective way to assess risk and uncertainty and can’t predict their impact on product value. These impacts can be in the range of millions of dollars. Decision-makers can’t afford to ignore this uncertainty, and can’t make optimal portfolio decisions without a realistic picture of the likely range of values returned from candidate projects in the portfolio.
To get the most out of limited product development resources, companies need to be able to optimize the value of their product portfolios in addition to managing them through a product development processes with standard PPM best practices. Advanced PPM processes and technology enable this by providing a systematic approach to determine financial value. As Tech-Clarity’s Maximizing Product Development Value report concludes, “Creating high value portfolios is much simpler when the factors that create and destroy value for a project are clearly identified, quantified, and managed over the life of the project.” The result is extending “on-time” and “on-budget” to “on-profit.” With this understanding, companies can develop portfolios that provide an optimal financial return based on sound business analysis.
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[post_content] => Issue in Focus: Systems and Software Driven Innovation - Complexity and Opportunity in the Mechatronic Era describes the fundamental shift to increased software and electronics in traditionally mechanical products, sometimes known as "mechatronics." The report explains the need to manage the resulting design complexity and how to take advantage of the opportunities offered by systems and software based products.
Please enjoy the summary below, or click the report or title to download a PDF overview of the report (free of charge, no registration required). Please visit the PTC website to download the full report (free of charge, no registration required).
Table of Contents
Introducing the Issue
The Mechatronics Imperative
The Complexity of Mechatronic Products
Managing Change in Mechatronic Products
Working Together – The Systems View
The Opportunity to Innovate with Systems and Software
Competing through Software Driven Innovation
Enabling Software Driven Innovation
PLM and Software Driven Innovation
The Current Reality of PLM for Systems
Conclusion
Recommendations
About the Author
Introducing the Issue
Modern products increasingly incorporate a combination of mechanical, electrical, and software components that allow innovative designers to take advantage of sensors and logic to solve problems and provide capabilities in new ways. This impacts the way companies innovate. As manufacturers develop their next generation of products, they are more likely to turn to electronics and software to make a “smarter” mousetrap as opposed to innovating solely in their mechanical design.
Over the last decade, there has been a steady, fundamental shift towards increased software and electronics in traditionally mechanical products. Engineers have added more monitoring and more sophisticated controls, and have increased the amount of product functionality and value delivered through software as compared to mechanics. Examples of this shift range from automobiles, to mobile devices, to “simple” household appliances.
This changing paradigm requires multiple design disciplines to work together to develop a working system. Systems that rely more heavily on the combination of mechanics, electronics, and software demand more integrated engineering and validation processes. The shift has driven higher levels of product development and engineering complexity starting in the early requirements phase of a product, continuing through design, making a significant impact on product testing and validation, and continuing as a configuration management issue throughout the product lifecycle.
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[post_content] => Mass Customization of Highly Configurable Products: Designing, Selling and Producing “Simple” Productsdiscusses the challenges that mass customization places on manufacturing companies. Describes how customization makes seemingly "simple" products complex to design, sell and produce.Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration required).
Executive Overview
Imagine walking into a car showroom and saying “I want the late model sedan, but please give it to me with 4 more inches of legroom in the front, the tachometer moved to the left of the dash, and with an additional trunk release lever on the passenger side”. What you would find is that the automotive industry, while they offer many features and options on their products, has significant limitations in providing truly customized products. But these types of requests are commonplace for highly configurable products like windows, doors, kitchen or bath cabinets, office furniture and even some industrial equipment like hydraulic valves. It seems counter-intuitive, but the process of selling, designing, and producing what appear to be “simple” products becomes surprisingly complex when manufacturers introduce high levels of customization. And demand for customization is on the increase.
As Pine, Pepper and Rodgers said in a Harvard Business Review article in 1995, “Customers … do not want more choices. They want exactly what they want – when, where, and how they want it ... ”. This comment highlighted the increasing demand for products that are highly tailored to meet specific customer demands. This concept provided the motivation for many manufacturers to re-engineer sales and marketing processes to offer more customized products to their customers. The article highlighted increased production flexibility and more advanced design tools as key enablers of this concept. But the ability for manufacturers to meet demands for highly customized products, sometimes known as “mass customization”, varies greatly depending on the company’s ability to bridge the gap between selling a customized product and being able to produce it rapidly and cost effectively. Some industries are delivering mass customized products today, but those that do are struggling with manual and inefficient processes to bring together the configured sales process and the design and production of the configured item.
This paper explores opportunities for manufacturers to improve their competitiveness and profitability based on their ability to effectively provide customized products – products that can be delivered in a large number of variations or configurations - at cost levels comparable to mass production. The paper tries to answer the following questions:
What challenges must manufacturers overcome in order to provide world-class performance in selling and delivering customized products?
How can manufacturers provide customers with seemingly infinite flexibility in product choices and still keep their margins in check?
How can manufacturers turn these capabilities into more deals won, and deals won at better margins?
How can manufacturers improve their overall throughput and shorten the delivery cycle for mass customized products?
How can manufacturers design and manage products in a way that streamlines and automates the customization effort once the product is ordered?
To explore the answer to these questions, we will review the lifecycle of two very different products. The first product will be a new car, arguably a product with complex engineering, and one that is available with many different features and options. The second will be a new picture window for a living room, perhaps to let us look at our new car in the driveway. The results will surprise many people as we find that while the design of the automobile is complex, there are also many complexities for manufacturers that produce products like windows that defy their simple appearance. In fact, these complexities reach past the design cycle into the order cycle, where customization to specific customer requests transitions from validating and pricing the order to designing, producing and delivering the requested product. We will highlight some very complex and difficult challenges in selling, designing and producing customized versions of these products that have a seemingly infinite number of end configurations, and point out improvement opportunities to allow manufacturers of these products to become more competitive and profitable.
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Mass Customization of Highly Configurable Products: Designing, Selling and Producing “Simple” Products discusses the challenges that mass customization places on manufacturing companies. Describes how customization makes seemingly “simple” products complex to design, sell and produce.Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge,…
Digital Manufacturing: The PLM Approach to Better Manufacturing Processes Discusses the use of technology—including 3D CAD and simulation—within a PLM strategy to help manufacturers develop more profitable products by optimizing the planning, development and deployment of better manufacturing processes. Please enjoy the free Introduction below, or click the report title above to download the full…
The Complementary Roles of PIM and PLM: Extending PLM with Product Information Management explores how Product Information Management (PIM) can extend the value of PLM implementations by providing complementary tools and capabilities. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no registration…
Maximizing Product Development Value: Realizing Value from New Products and Portfolios highlights key insights on realizing value from new products based on discussions with product development leaders. Analyzes a new approach to portfolio management that focuses on achieving the economic value available from new products. Please enjoy the free Executive Summary below, or click the…
Product Lifecycle Management Proving Value at Heinz: A PLM Case Study from the Consumer Goods Industry – Food and Beverage reviews the strategic value achieved by Heinz from implementing Product Lifecycle Management processed and software in their global business. Please enjoy the free Executive Summary below, or click the report title above to download the…
Regulatory Compliance Across the Product Lifecycle: Reduced Risk and Lowered Costs Through Proactive EH&S examines the importance that regulatory compliance and product related EH&S play in protecting the value available from PLM across the product lifecycle. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of…
What’s Wrong With Application Software – A Possible Solution? discusses how model-based architectures offer potential benefits to companies by more naturally assembling solutions into business processes. Originally published on Technology Evaluation Centers (TEC). Click the report title above to download the full PDF (free of charge, no registration required).
Tech-Clarity’s Jim Brown contributes a column to Advantage for the Product Lifecycle. The first column, Executive Perspective: Successful PLM Starts with the End in Mind, was reprinted in Cadalyst. The article suggests that companies develop their PLM strategies to support their business strategies, and offers some examples of the business value available from PLM. The…
Jim Brown presents at an invitation-only SAP customer event at SAP North American headquarters in Newtown Square, Pennsylvania. The presentation focuses on the top myths regarding product lifecycle management (PLM). Event is invitation only by SAP.
The Service Lifecycle Management (SLM) Approach: Strong Customer Relationships Result In Profit In The Service Industry overviews an approach to improve the profitability of services businesses by concurrently increasing service and lowering costs. Please enjoy the free Executive Summary below, or click the report title above to download the full PDF (free of charge, no…
A quick peek into some research on Social Business Collaboration and Advanced PPM. What do these two very interesting topics have in common? Live webcasts featuring Jim Brown of Tech-Clarity next week, Thursday and Friday February 16-17. OK, I admit it was a cheap trick, but I hope it convinces you to learn about one…
Services for Manufacturing and Industry Tech-Clarity shares our research, experience and insights with manufacturers and other industry clients to educate them on the business value available from the intelligent use of enterprise software. Clients benefit by focusing on the value of solutions as opposed to the technology itself. Strategy and Advisory Services Strategic Planning Executive…
Services for Software Vendors and Consultants Tech-Clarity helps software vendors and service companies by sharing our research, experience, and insights on the business value available from the intelligent use of enterprise software. Software vendors and service providers frequently invite Tech-Clarity to educate their customers and prospects on the business value of the solutions they offer,…
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Jim Brown is the President of Digital Transformation Research for independent research firm Tech-Clarity. He covers digital transformation across the product digital thread for manufacturing and industrial companies including PLM, PDM, product development, portfolio management, digital manufacturing, IoT, EAM, SLM, and other solutions. Jim founded Tech-Clarity in 2002 and has over 30 years of industry…
Tech-Clarity is an independent research firm dedicated to making the business value of technology clear. We analyze how companies improve innovation, product development, design, engineering, manufacturing, and service performance through the use of digital transformation, best practices, software technology, industrial automation, and IT services. Our mission is to help manufacturers learn how to improve business…
Tech-Clarity Issue in Focus: Optimizing Product Portfolios with Advanced PPM: Applying Value Optimization to Portfolio Decision Making explains how companies can gain greater levels of product portfolio profitability by using value optimization techniques to make portfolio decisions. Describes how the basic best practices of PPM can be extended by Advanced PPM concepts. Please enjoy the…
Issue in Focus: Systems and Software Driven Innovation – Complexity and Opportunity in the Mechatronic Era describes the fundamental shift to increased software and electronics in traditionally mechanical products, sometimes known as “mechatronics.” The report explains the need to manage the resulting design complexity and how to take advantage of the opportunities offered by systems…