June 09, 2003
PLM, ERP and CAD -- The Changing Landscape of Intellectual Asset Management
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| by Amy Rowell - Contributing Editor
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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
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
(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.
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
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.
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
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?
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.
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:
($$ 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,
analyst Michael Burkett is adding product lifecycle management, or PLM, to the list. In a recent report, Burkett pointed to
(Nasdaq: PSFT) and
(Nasdaq: ORCL) as examples of ERP vendors that are rushing to add PLM functionality to their product suites. 2/26/2003, source:
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.
) announced that it will commence a cash tender offer to purchase all of the outstanding shares of PeopleSoft, Inc. (Nasdaq:
) 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.
Product and Company News
(Note: $$ - denotes premium content. Article is available via a trial subscription or for a nominal fee.)
The Environmental Protection Agency has joined forces with DaimlerChrysler and UPS in a US government industry partnership to put hydrogen-powered fuel-cell delivery vehicles on the road.
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.
, 15 May 2003
, 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.
You can find the full MCADCafe event calendar here
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-- Amy Rowell, MCADCafe.com Contributing Editor.