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June 09, 2003
PLM, ERP and CAD -- The Changing Landscape of Intellectual Asset Management
Please note that contributed articles, blog entries, and comments posted on MCADcafe.com are the views and opinion of the author and do not necessarily represent the views and opinions of the management and staff of Internet Business Systems and its subsidiary web-sites.


by Amy Rowell - Contributing Editor
Each MCAD Weekly Review delivers to its readers news concerning the latest developments in the MCAD industry, MCAD product and company news, featured downloads, customer wins, and coming events, along with a selection of other articles that we feel you might find interesting. Brought to you by MCADCafe.com. If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank you!

editor's note: In breaking news on Friday, June 6, Oracle Corporation launched a $5.1 billion hostile cash takeover bid to acquire PeopleSoft for $16 a share. This move would, in effect, leave just the two major ERP vendors -- Oracle and SAP -- to compete for market leadership in this sector. Why is this important to the CAD community? Because like EDS-PLM Solutions and IBM/Dassault Systemes, both Oracle and SAP are watching the PLM marketplace closely, too. For additional details concerning the Oracle announcement, see CBS Marketwatch article, "

PLM, ERP and CAD -- The Changing Landscape of Intellectual Asset Management

by Amy A. Rowell


PLM (Product Lifecycle Management), PDM (Product Data Management), ERP (Enterprise Resource Planning), SCM (Supply Chain Management) and CRM (Customer Relationship Management) -- IT managers have heard it all, and sorting through the hype is as much a part of the job as actually implementing these technologies within their companies. Because of the confusion that often results, terms like these have earned a place in
TechWeb's TechEncyclopedia.


Why is this worth noting? Because like any expression that warrants inclusion in the latest edition of any dictionary, it implies that the most recent addition to this list, PLM, has arrived, and that it is a "generally-accepted" acronym and conceptual framework. In fact, as definitions go, TechEncyclopedia has defined PLM -- and its components -- quite simply as "a comprehensive information system that coordinates all aspects of a product from initial concept to its eventual retirement" and goes on to distinguish between PDM and PLM. Perhaps equally important is the notion that CAD is included in a discussion of PLM, but only as a single component -- one of several different types
of authoring tools. (see Figure 1).



Results Found for: PLM


PLM




(Product Life cycle Management) A comprehensive information system that coordinates all aspects of a product from initial concept to its eventual retirement. Sometimes called the "digital backbone" of a product, it includes the requirements phase, analysis and design stages, manufacturing, product launch, distribution, quality assurance, in-service maintenance and spare parts provisions.


The terms PLM and PDM (product data management) are sometimes used interchangeably; however, PDM is typically only the data handling component of PLM. PLM also interfaces to the CRM and ERP systems within a company, which support the customer relationships, supply chain management and accounting. Following are the primary elements of a PLM system, all of which must interrelate with each other in order to provide the integration necessary to be a PLM system.


Requirements Management

Used throughout creation, manufacturing and distribution. Keeps track of total costs ("cost rollup") and manages constraints (if one part is changed, what are effects on others). Also provides collaboration and feedback.


Product Data Management

Manages data in all phases and interrelationships between all databases (see
PDM).


Configuration Management

Provides sophisticated change control for as-designed, as-manufactured and as-serviced product structure databases. Shows interrelationships between data; for example, if a part has to be replaced in a product years later, it can locate original requirements.


Program and Project Management

Program management provides the overall schedule for building multiple products, while project management provides the individual timelines for each team building a part.


Authoring Tools

CAD (computer-aided design), CAM (computer-aided manufacturing), CAE (computer-aided engineering) and process planning applications.



Figure 1. Search results for the term PLM, using TechWeb.s TechEncyclopedia.


It's also interesting to note that, according to TechWeb, ERP, or Enterprise Resource Planning, is defined as "an integrated information system that serves all departments within an enterprise." The TechEncyclopedia goes on to explain that, "an ERP system can include software for manufacturing, order entry, accounts receivable and payable, general ledger, purchasing, warehousing, transportation and human resources, [and that] the major ERP vendors are SAP, PeopleSoft, Oracle, Baan and J.D. Edwards."


Last week, PeopleSoft announced its intention to acquire J.D. Edwards, Oracle Corporation launched a $5.1 billion hostile cash takeover bid to acquire PeopleSoft, and Invensys PLC announced its intent to sell Baan. (See
PeopleSoft to buy J.D. Edwards for $1.7 billion [02 Jun 2003] and
Baan Announces Sale to Investment Group [03 Jun 2003].)


In short, the list of key players in the ERP sector is shrinking -- with SAP and Oracle now in a race for the top spot. And some suggest that it is just a matter of time before these companies begin shopping around for a best-of-breed CAD component to complete their product portfolios.


The underlying message here? The role of CAD within the product development organization continues to evolve -- with the CAD model increasingly being recognized as not only a graphical representation of the data, but an integral part of next generation ERP systems, PLM initiatives and more.


CAD. Several years ago, the greatest challenge was how to move users from 2D to 3D. Now, it seems, the challenge is how to successfully integrate CAD/CAM and CAE tools with ERP systems, CRM systems, and the like.


And consider PLM. PLM is supposed to effectively take care of all of these connections. But does it? Or will it?


And where does ERP software like SAP and Oracle fit in this rapidly changing landscape of "intellectual asset" management? In terms of blending CAD and ERP, for example, is a marriage between the likes of Oracle and Autodesk, or Oracle and PTC a possibility?


These are just a few of the pieces of what I like to call the PLM/ERP puzzle. Have you figured it out yet?


Comments? Feedback?
Email Contact to tell us what you think about this topic or if you have additional information you'd like to share on this subject!


Amy Rowell is the managing editor of MCADCafe, and the editor of MCAD Weekly Review.


See also:


There's a New App in Town PLM aims to streamline product development and boost innovation in manufacturing. But it won't be easy or cheap. Here's what CIOs need to do about this latest buzzword technology. CIO Magazine, 15 May 2003.


Product Life-Cycle Management IT Services Market to Grow 26% to Reach $9.7 Billion in 2007, IDC Reveals The product life-cycle management (PLM) IT services market will expand from $3 billion in 2002 to $9.7 billion in 2007, representing a five-year compound annual growth rate (CAGR) of 26.1%, a new research study from IDC reveals.


CIMdata PLM Conference June 23-25, 2003. Detroit, MI. "Unleashing the Value of Your Intellectual Assets." At PLMconference2003, attendees will be provided with a total view of the PLM picture including an industry vision, available opportunities, strategies for solution selection and implementation, roadmaps to move forward, pitfalls to avoid, and direction to help maximize the value and benefits of their investment.


PLM Market Requires Best-of-Breed and ERP Capabilities Best-of-breed and enterprise resource planning vendors share space on the Product Life Cycle Management Magic Quadrant for 1Q03. PLM overlap is increasing, but neither vendor type is capable of fulfilling all users' PLM needs. 3/31/2003, source:
Gartner.
www.gartner.com/ ($$ 7-page report, $195)


Next Big Thing for ERP Vendors? For enterprise resource planning vendors that have found their markets dry, expanding into new niches has become the norm. CRM and supply-chain applications have been the two biggest areas of interest so far. Now,
AMR Research analyst Michael Burkett is adding product lifecycle management, or PLM, to the list. In a recent report, Burkett pointed to
SAP (NYSE: SAP),
PeopleSoft (Nasdaq: PSFT) and
Oracle (Nasdaq: ORCL) as examples of ERP vendors that are rushing to add PLM functionality to their product suites. 2/26/2003, source:
E-Commerce Times


Baan Announces Sale to Investment Group Baan, the leading provider of industry-defining enterprise application solutions for industrial enterprises and part of Invensys plc, announced today that Invensys plc has agreed to sell the company to an investment group consisting of Cerberus Capital Management, L.P. and General Atlantic Partners, LLC, two of the world's leading private investment firms. Backed by nearly USD $14 billion in investment capital, the investment group plans to employ a growth oriented, long-term strategy to the Baan business.


PeopleSoft to buy J.D. Edwards for $1.7 billion PeopleSoft said Monday it would buy J.D. Edwards & Co., known for its manufacturing software, for $1.7 billion in stock to create the world's second-largest seller of applications software to businesses.


Q&A: J.D. Edwards' CEO Sees Two Compatible Cultures J.D. Edwards and PeopleSoft share a DNA of 'caring for the customer,' J..D. Edwards. CEO Dutkowsky says. InformationWeek explores how things will change and what users can expect now that PeopleSoft Inc. plans to acquire the company. Information Week, 4 June 2003.


Oracle to Launch Cash Tender Offer for PeopleSoft for $16 Per Share [6 June 2003] Today, Oracle Corporation (Nasdaq:
ORCL) announced that it will commence a cash tender offer to purchase all of the outstanding shares of PeopleSoft, Inc. (Nasdaq:
PSFT) for $16 per share, or approximately $5.1 billion.


PeopleSoft Rallies on Oracle Bid Oracle Corp. launched a $5.1 billion hostile takeover bid for PeopleSoft Friday to dramatically increase its share of the business software market, sending PeopleSoft shares and tech stocks soaring. CBS Market Watch, 6 June 2003.


Top Stories
  • ANSYS Inc. Recognized as a BusinessWeek 'HOT GROWTH COMPANY' and Named to CNN Money's 'Fabulous 40' [05 Jun 2003]
  • Baan Announces Sale to Investment Group [03 Jun 2003]
  • IBM Faces SEC Investigation [02 Jun 2003]
  • MSC.Software Announces Completion of FTC Settlement and Agreement With EDS [05 Jun 2003]
  • Oracle to Launch Cash Tender Offer for PeopleSoft for $16 Per Share [6 June 2003]
  • PeopleSoft to buy J.D. Edwards for $1.7 billion [02 Jun 2003]
  • Product Life-Cycle Management IT Services Market to Grow 26% to Reach $9.7 Billion in 2007, IDC Reveals [04 Jun 2003]
    Product and Company News
  • Accelerated Technologies First to Offer New Composite Stereolithography Material [03 Jun 2003]
  • ANSYS Announces AI*Environment [05 Jun 2003]
  • ANSYS Announces CFX-5.6 Providing Increased Accessibility to Advanced CFD [04 Jun 2003]
  • Autodesk Location Services Powers the First Wireless Car Navigation System Now Available in the New Fiat Punto [05 Jun 2003]
  • CAD Standards and Courseware Seminars Offered by ProSoft During WASHTO [05 Jun 2003]
  • EdgeCAM Adds Direct Integration to Sandvik Coroguide Online Product [05 Jun 2003]
  • EdgeCAM Gains Autodesk Inventor 7 Software Certification [02 Jun 2003]
  • ESI Group Q1 2003 Sales Up 22% [05 Jun 2003]
  • FISHER/UNITECH Acquires Devtron Russell's SolidWorks Business Unit; Transaction Confirms Company's Leadership Position as the Largest SolidWorks Reseller in the Midwest [02 Jun 2003]
  • Framework Technologies Continues Steady Growth with Successful Q2 2003 [03 Jun 2003]
  • Front-End Simulation Simplified With ANSYS 7.1 [05 Jun 2003]
  • HP Captures No. 1 Position in Total Server Revenue Worldwide [30 May 2003]
  • HP Continues Leadership in Worldwide Notebook PC Market; HP Notebook Unit Sales Outpace Market Growth [02 Jun 2003]
  • IBM Gains Server Revenue Share in Key Market Segments [30 May 2003]
  • Informative Graphics Releases HTML Publishing Options to New MYRIAD v6.1 View & Markup Software [03 Jun 2003]
  • Journey Publishing Teams With PTC to Offer Pro/ENGINEER(R) Wildfire(TM) Student Edition [02 Jun 2003]
  • LMS Pimento Rev 4.50 Features New Acoustic and Structural Testing [04 Jun 2003]
  • MSC.Software and Biomechanics Research Group, Inc. Form Strategic Partnership to Deliver Biomechanics Simulation Solutions [03 Jun 2003]
  • Protomold Announces Facilities Expansion [03 Jun 2003]
  • PTC Adds INNEO Solutions to Growing Reseller Network [02 Jun 2003]
  • PTC Introduces Certified Professional Program For Pro/ENGINEER(R) Users [05 Jun 2003]
  • SolidWorks Awards Coveted Certified Gold Product Status to Cyco Software [05 Jun 2003]
  • World's First Notebook PC Capable of Cinematic Realism Powered By ATI; ATI's MOBILITY RADEON 9600 Mobile Visual Processor Now Shipping [02 Jun 2003]
    Special Notices
  • Dassault Systemes and the New Detroit Science Center Form Out-of-this-World Partnership [03 Jun 2003]
  • GibbsCAM Receives Extensive Recognition From Mainstream CAD Vendors [03 Jun 2003]
  • IBM Honors and Rewards Elite Technical Employees [04 Jun 2003]
  • Phil Martens, Ford VP of Product Creation North America, to Keynote daratechiDPS AUTO2003 [02 Jun 2003]
    Customer Wins
  • Brunvoll Propels Ships Using Product Lifecycle Management Solutions from IBM and Dassault Systhmes [03 Jun 2003]
  • CIMOS to Cut Design Time with IBM and Dassault Systemes [03 Jun 2003]
  • Ion Systems Chooses RealityWave.s ConceptStation for Design Review and Collaboration [03 Jun 2003]
  • IronCAD Goes to the Races [30 May 2003]
  • John Deere Brazil Selects MatrixOne as Its PLM Supplier for Manufacturing Process Management [03 Jun 2003]
  • Kern AG Switches to SolidWorks 3D Mechanical Design Software to Design World's Fastest Envelope-Stuffing Machines [02 Jun 2003]
  • MatrixOne to Provide Product Lifecycle Management Applications to John Deere's Worldwide Agricultural Equipment Division [03 Jun 2003]
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    Design Engineering, 20 May 2003

    PLM aims to streamline product development and boost innovation in manufacturing. But it won't be easy or cheap. Here's what CIOs need to do about this latest buzzword technology.

    CIO Magazine, 15 May 2003

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    Events


    Daratech iDPS, 9-10 June 2003. Detroit, MI. Now in its third year, daratechiDPS AUTO2003 will focus on how today's digital prototyping and physical testing processes and tools are meeting auto makers' urgent requirements to shorten product development cycles, manage increasing model complexity and variety, and lower development costs. (Register by April 30th, and save $100!)


    2003 International Forum on DFMA June 17-18, 2003. Newport, RI. Sponsored by Boothroyd Dewhurst, Inc. The International Forum on DFMA is the foremost conference worldwide on early design analysis methodologies and implementation. Conference papers will discuss specific product development programs and examine cost reductions and efficiency gains at some of the world.s leading manufacturing companies, such as Raytheon, Hewlett-Packard Company, Harley-Davidson Motor Company, and Visteon Corporation, among others.


    CIMdata PLM Conference June 23-25, 2003. Detroit, MI. "Unleashing the Value of Your Intellectual Assets." At PLMconference2003, attendees will be provided with a total view of the PLM picture including an industry vision, available opportunities, strategies for solution selection and implementation, roadmaps to move forward, pitfalls to avoid, and direction to help maximize the value and benefits of their investment.


    The Emerging Technologies Conference 2003 September 24-25, 2003. Kresge Auditorium, MIT Campus, Cambridge, MA. The Emerging Technologies Conference at MIT will focus on the technologies that are poised to make a dramatic impact on our world.
    Technology Review Magazine, the authority on emerging technology, will bring together world-renowned innovators and key leaders in technology and business. The 2-day conference will feature a mixture of keynote, panel and breakout discussions that will center on the transformative technological innovations that have the potential to fuel new economic growth.


    [
    more Events]


    You can find the full MCADCafe event calendar here.


    To read more news, click here.



    -- Amy Rowell, MCADCafe.com Contributing Editor.