Clockspeed analysis of PLM industry

Abstract

This project is aimed at a study of structure of Product Lifecycle Management (PLM) industry in context of influence of forces of disintegration that push the industry towards horizontal and modular configuration form a vertical and integral configuration. PLM industry consists of software vendors that offer solutions to create and manage a digital product or plant (Le., a company's intellectual assets) and provides an information backbone for a company and its extended enterprise. The PLM industry at present is configured vertically with integral product architecture. PLM software solutions providers like IBM-DS, UGS Solutions and FTC have product offerings in all horizontal segments namely Computer Aided Design (CAD), Product Data Management (PDM). Manufacturing Process Management (MPM), Design Collaboration and support for stage gate project management in new product development (NPD). The product architectures are integral with propriety formats. This projects aims to analyze the historic reasons behind this structure. Based on observations and history of PLM industry it is placed in the framework of clockspeed. Clock speed may be defined as the rate at which industry evolves. Industries evolve at different rate, depending in some way on its product clockspeed, process clockspeed and organizational clock speed. This framework proposes that when the industry structure is vertical and product architecture is integral, the forces of disintegration push toward a horizontal and modular configuration. On the other hand, when an industry supply chain has a horizontal/modular structure, another set of forces push toward more vertical integration and integral product architectures. Then we do clock speed analysis of industry taking Dassault Systems as a case study. The industry seems to be consolidating and has vertical/integral architecture. In the context of this analysis we look at following questions What events in future can trigger a move towards horizontal configuration of PLM industry? Is there a role for standards on interfaces between horizontal segments with Industry? What is the likelihood/desirability of such standards?.