CIMdata Reports cPDm Market Undergoes Explosive 62% Growth to Exceed $2.8 Billion in 2000.Business Editors ANN ARBOR Ann Arbor, city (1990 pop. 109,592), seat of Washtenaw co., S Mich., on the Huron River; inc. 1851. It is a research and educational center, with a large number of government and industrial research and development firms, many in high-technology fields such as , Mich.--(BUSINESS WIRE)--March 1, 2001 According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. figures released today from consulting and research firm CIMdata, Inc., the worldwide collaborative Product Definition management (cPDm) market grew 62% to reach $2.86 billion in 2000. Investments in software jumped to $1.23 billion, comprising 43% of the total market and exceeding the growth rate for service revenue for the first time in years. CIMdata forecasts overall cPDm investments to continue at a significant pace over the next five years. The firm predicts the market will exceed $4 billion in 2001 and increase at a compound annual growth rate of 43% through the year 2005, when they expect the market size to exceed $13 billion. Exceptionally strong growth in 2000 is attributed to widespread adoption of cPDm as a way for companies to operate more effectively in increasingly competitive global markets. A significant driver has been the adoption and implementation of e-business strategies across the manufacturing enterprise. "Clearly, the cPDm industry has reached a major turning point in its acceptance and demand, with industrial organizations worldwide committing record levels of investment," says Ed Miller, president of CIMdata. "Organizations and their executives today have a well-founded sense of urgency in realizing that business approaches and work processes absolutely must be changed to maintain market strength, especially in today's volatile economy," explains Miller. "Companies must develop and deploy effective integration of both their physical, and intellectual supply chains. Those operating as they have in the past run the risk of being overtaken by agile, more aggressive competitors, across town and around the world." According to Miller, there is a growing awareness that product innovation is a critical element of competitive differentiation - embracing improvements in time-to-market, quality, collaboration, and cost management. This recognition is fueling investments in collaborative product innovation and visualization-focused initiatives - the heart of cPDm, which is a primary enabler for collaborative commerce. "For an increasing number of companies, the key to achieving such improvement is cPDm, a strategic business approach to collaboratively manage the product definition lifecycle across the extended enterprise," explains Miller. He noted that cPDm is provided through a combination of best-practices processes and a full suite of technologies such as product data management, collaboration, visualization Using the computer to convert data into picture form. The most basic visualization is that of turning transaction data and summary information into charts and graphs. Visualization is used in computer-aided design (CAD) to render screen images into 3D models that can be viewed from all , collaborative product commerce, enterprise applications integration, components supplier management, and others. "In this way, cPDm enhances the business performance of the enterprise by supporting initiatives such as supply chain management, concurrent engineering, integrated product development, design collaboration, and globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation : initiatives that can make or break a company," Miller says. "Because it enables businesses to bring innovative and profitable products to market effectively, cPDm and the collaborative capabilities it provides are rapidly transitioning from a competitive advantage to competitive necessity. With so much at stake, companies are implementing cPDm in record numbers." Miller says that because of these business drivers, the core market is experiencing tremendous expansion as cPDm programs become mainstream and are targeted as enterprise-wide initiatives. Additionally, the continually expanding and overlapping scope of related technologies offers companies a broader array of capabilities to address their problems. Diverse Market Sectors "A wide range of vendors supply cPDm-related software and services," explains Ken Amann, CIMdata Director of Research. "The overall cPDm market has different sub-segments, each with its own set of technology suppliers, many of which do not directly compete but rather complement one another." According to Amann, the overall market is comprised of four major sectors: comprehensive cPDm technology suppliers, visualization/collaboration vendors, system integrators/resellers/VARs, and specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. application providers. Comprehensive cPDm technology suppliers (e.g., SDRC (company) SDRC - The company behind VGX. http://sdrc.com/. , PTC (PTC, Needham, MA, www.ptc.com) Long a world leader in mechanical computer-aided design, manufacturing and engineering software, PTC, through acquisitions and reorganization, has transformed itself into a leading provider of Internet-based B2B solutions for discrete manufacturers. , MatrixOne, SAP, etc.) comprise 48% of the market and had significant revenue growth in 2000. "Increased investments are fueled by the expanding scope of enterprise-wide implementations, readily scalable base technologies, the proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of web-based technologies, newer visualization/collaboration technologies that enable value to be achieved quickly, and the development of Internet portal exchanges," explained Amann. "The growth of supplier developed "packaged solutions" focused on specific industry problems enabled sales and implementations to be completed at a much faster pace." Visualization/collaboration suppliers (e.g., EAI (Enterprise Application Integration) Refers to various techniques used to share data and business processes in large enterprises. When companies acquire another organization, disparate information systems have to be made to work together. subsidiary of UGS UGS In currencies, this is the abbreviation for the Uganda Shilling. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. , Centric, CoCreate, Cimmetry, etc.) saw impressive growth in 2000 as these technologies matured and companies began to recognize their tremendous potential in improving process efficiency in engineering organizations. Although this sector generated only 7% of the overall market, suppliers are poised for explosive growth over the next few years and are clearly a driving force in the acceptance and value of overall cPDm initiatives. Systems integrators/resellers/VARs (e.g., Accenture, PricewaterhouseCoopers, EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , etc.) comprised 30% of market investments in 2000 and experienced major growth as both the scope and pace of implementations expanded dramatically. Demand for implementation services outgrew out·grew v. Past tense of outgrow. the ability of the technology suppliers to deliver, and the major service suppliers are filling that role. "These suppliers are having a huge impact on the market, with most of the major firms establishing focused programs to address cPDm opportunities that complement and expand their e-business/strategy, supply chain management, and collaboration initiatives," stated Amann. Specialized application suppliers (e.g., i2, Documentum, and others) accounted for 15% of cPDm investments as these vendors -- most notably those focused on Customer Supplier Management (CSM CSM - ["CSM - A Distributed Programming Language", S. Zhongxiu et al, IEEE Trans Soft Eng SE-13(4):497-500 (Apr 1987)]. ), Supplier Relationship Management (SRM (1) (Storage Resource Management) The management of the storage resources in an organization in order to avoid duplication of files and to determine space utilization across all servers. ), and document management -- have begun to acquire and integrate core cPDm technology into their overall product suites. This trend will likely continue, with these vendors (some quite large) focusing increasing portions of their business on the cPDm market. Vendor Rankings According to CIMdata revenue statistics compiled for 2000, the market leader among the top ten comprehensive cPDm technology suppliers is SAP followed by PTC, SDRC, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) (Enovia), UGS (including EAI), MatrixOne, Intergraph, Ariba (including Agile), NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , and Eigner+Partner. Many of the suppliers provide technologies through their own field sales and support organizations. Others also heavily leverage system integrators See systems integrator. , resellers, and other partners for additional sales. These combined core and partner revenues greatly expand the visibility and impact of these suppliers on the industry, generating a significant market presence for these major suppliers. Based on these combined revenues, CIMdata statistics indicate that the vendor with the greatest "cPDm market presence" is SDRC, followed by SAP, MatrixOne, PTC, UGS, IBM, Intergraph, Ariba Agile, Eigner+Partner, and Smart Solutions. Activities of the Major Players Vendors in the list of top ten comprehensive cPDm technology suppliers and leading market presence suppliers maintain their strong market positions through numerous continuing efforts and strategies that are quite different for each company. SAP (NYSE NYSE See: New York Stock Exchange :SAP) achieved the top spot among comprehensive cPDm technology suppliers by generating over $220M in direct revenues. This dramatic accomplishment was achieved almost quietly, with most of their implementations launched as extensions of SAP's enormous customer base and thus requiring no significant competitive benchmarking. Also, SAP is one of the few suppliers generating significant revenues in both the discrete manufacturing Fabricating products by assembling components and subsystems into larger systems. The automated assembly line is the prime example of discrete manufacturing such as in the making of automobiles, household appliances and computer systems. and process industries, with overall revenues larger than either specific industry group would immediately recognize. A major portion of SAP revenue derives from central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. where they hold a dominant market position. However, their growth in other major regions is accelerating, especially in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and the firm is leveraging existing relationships with major system integrators to continue expansion of cPDm business within its customer base. SDRC (Nasdaq:SDRC) maintained the leading position in overall market presence based on the total revenue that they and their partners create in the industry. Their existing customer base is substantial and includes some of the world's largest corporations. As these implementations have been expanded (with the help of many systems integrators and SDRC partners) investments around the world in the "Metaphase metaphase /meta·phase/ (met´ah-faz) the second stage of cell division (mitosis or meiosis), in which the chromosomes, each consisting of two chromatids, are arranged in the equatorial plane of the spindle prior to separation. economy" have expanded significantly, totaling almost $365M in 2000. PTC (Nasdaq:PMTC PMTC Prevention of Mother to Child Transmission (of HIV/AIDS) PMTC Pacific Missile Test Center PMTC Professional Multimedia Test Center ) continues to show major growth in their Windchill program, with impressive revenue growth in both software and services, where they ranked number two in both categories. Their impact on the market, and their overall visibility, are tremendous. Through their market activities, they are playing a major role in educating the industry and increasing cPDm business for themselves as well as their competitors. MatrixOne (Nasdaq:MONE) demonstrated overall impressive growth, jumping to the number three spot in market presence and number four in software revenues during 2000. Their market presence and visibility are greater than their company revenues indicate, as they have effectively leveraged partners and systems integrators to generate a substantial economy built on their technologies. UGS is still a relatively "quiet" competitor as they continue to expand their business. Historically a significant portion of growth came from within their existing CAD/CAM CAD/CAM in full computer-aided design/computer-aided manufacturing. Integration of design and manufacturing into a system under direct control of digital computers. customer base, but they are gradually becoming more visible in the "open" market. Their acquisition of EAI boosted total revenue numbers for 2000, placing them number five in both market presence and overall revenues, and number three for software revenues. IBM's (NYSE:IBM) growth continued, with much of the increase achieved by leveraging their existing CAD/CAM customer base. Additionally, they are one of the largest suppliers of services among the major technology suppliers. They are ranked fourth in overall revenue among the comprehensive cPDm technology suppliers. Intergraph is a major supplier to the process industries and holds a dominant position in the process and plant sectors. Among the top ten overall suppliers worldwide, they are the only one to totally focus on the process industries. Ariba- Agile is one of the real success stories of the industry. Their clear focus on a primary market sector enabled them to differentiate themselves and expand their business significantly. Their market presence has been visible for the last three years and in 2000 they generated enough revenues to break into the list of top ten revenue generators. NEC has been a major force in the Japanese market for the last few years and continues to expand their business presence. They finished 2000 ranked ninth in total revenues among comprehensive cPDm technology suppliers. Eigner+Partner has developed business beyond the original home location of Germany, and is beginning to establish a presence in North America as well. In 2000, they are ranked tenth in revenues and eighth in market presence based on their strong relationships with key partners. Smart Solutions has shown impressive growth in both revenues and market presence over the last year. They provide their technologies primarily through partners, and gained a spot in the top ten of the overall market presence for the first time in 2000. Expanded Market Service Additional information on the cPDm market is available through CIMdata's Market Service covering the latest trends, events, and issues surrounding the rapidly changing industry. Subscribers receive periodic reports analyzing cPDm market events and trends, a monthly industry news compilation, daily late-breaking industry news, a comprehensive Market Opportunities Analysis with revenue and sales statistics, access to teleconferences discussing issues and events relevant to the market, and a level of telephone support. A longer version of this press release complete with graphs and more details on market statistics is available at www.CIMdata.com April Industry Conference Information on the cPDm market, technology, and applications will be presented at the CIMdata 2001 annual conference "Solutions and Strategies for Collaborative Engineering through the Supply Chain" April 3-5 in Palm Springs, California Palm Springs is a famed Riverside County, California desert resort city, approximately 110 miles (177 km) east of Los Angeles and 140 miles (225 km) northeast of San Diego. As of the 2000 census, the city population was 42,807. . The event is the world's largest exposition totally focused on managing the full product definition lifecycle in the extended enterprise. More than 1,200 delegates are expected to attend, and over 35 suppliers will demonstrate solutions in an exhibit hall and schedule meetings in private suites. The keynote address keynote address n. An opening address, as at a political convention, that outlines the issues to be considered. Also called keynote speech. Noun 1. by Kirk Gutmann, Global Develop Product Information Officer at General Motors, will focus on the impact of e-business at automotive companies. User presentations, tutorial An instructional book or program that takes the user through a prescribed sequence of steps in order to learn a product. Contrast with documentation, which, although instructional, tends to group features and functions by category. See tutorials in this publication. sessions, industry panels, and discussion groups will focus on product data management (PDM (1) (Product Data Management) An information system used to manage the data for a product as it passes from engineering to manufacturing. The data includes plans, geometric models, CAD drawings, images, NC programs as well as all related project data, notes and ), collaborative Product Definition management (cPDm), B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business initiatives, collaborative design and manufacturing, collaborative product commerce, integrated product development, eBusiness globalization, digital manufacturing, and product maintenance management. A panel discussion devoted to supply chain collaboration in the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. brings together OEMs, suppliers, technology providers, and industry consultants to discuss PDM interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. , design collaboration, the Covisint e-business exchange portal, and go over case studies from companies in the automotive supply chain. Cost is $995 for the two-day conference and an additional $400 for the one-day tutorials. Exhibits only and group rates are available. Contact CIMdata at 3909 Research Park Drive, Ann Arbor, MI 48108, U.S.A. Tel: +1 (734) 668-9922. Fax: +1 (734) 668-1957. Or visit the CIMdata website: www.CIMdata.com. About CIMdata CIMdata helps companies develop innovative and profitable products in the evolving global e-business environment. The company accomplishes this through its worldwide strategic consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" and in-depth research, targeted for industrial organizations and suppliers of technologies and services. CIMdata provides world-class knowledge and expertise on the use of collaborative Product Definition management (cPDm) solutions that utilize best-practice methods, and related technologies. These include product data management (PDM), visualization, collaboration, collaborative product commerce (CPC (1) (Central Processing Complex) An IBM mainframe that has two or more central processors (CPs) that share memory. It is the collection of processors, memory and I/O subsystems manufactured with a single serial number, typically all contained in one cabinet. ), document management, component supplier management (CSM), configuration management (CM), software configuration management (SCM (1) (Software Configuration Management, Source Code Management) See configuration management. (2) See supply chain management. ), enterprise application integration (EAI), computer-aided design/manufacturing, and numerical control numerical control: see computer-aided manufacturing. numerical control (NC) Control of a system or device by direct input of data in the form of numbers, letters, symbols, words, or a combination of these forms. (NC). In addition to consulting, CIMdata provides industry education through international conferences in the U.S., Europe, and Japan, which focus on management of the product or plant definition lifecycle. The company also conducts focused research and produces several commercial publications. CIMdata serves clients worldwide from locations in North America, Europe, and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . For more information, contact CIMdata at 3909 Research Park Drive, Ann Arbor, MI 48108, U.S.A. Tel: +1(734) 668-9922. Fax: +1(734) 668-1957. Or visit the CIMdata website: www.CIMdata.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion