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					GartnerConsulting
Gartner Consulting          21st Century Commerce EXPO 1999 Track 9: Product Information Management




           Defining the Product Data Marketplace:
         eBusiness Issues and Technology Direction
                                                      by
                         Rodney Heisterberg, Ph.D.
                                                     for
                     Track 9: Product Information Management
                       21st Century Commerce EXPO 1999
                                 December 2, 1999




                                                                                     Defining the Product Data Marketplace:
                                © 1999 Gartner Group, Inc. All rights reserved.
                                                                                  eBusiness Issues and Technology Direction
                                                                                                 December 2, 1999—Page 1
GartnerConsulting
Gartner Consulting                      21st Century Commerce EXPO 1999 Track 9: Product Information Management


    eBusiness = eCommerce +CRM +SCM +BI+KM+CT
           Supply Chain Management                                   Customer Relationship Management


            “Virtual        Business                                                  Distribution                  Customers
            Partners”       Partners             Admin &
                                                                                       Channels
                                                Operations
           Informal Info.
           Sharing Deals                                                                              Potential
                                                                                                     Customers
                                             Legally                                                  & Influencers
                              Product                                            Logistics
       BI, KM and CT          & Service      Defined                             & Fulfill-
      for External Info       Creation                                             ment
                                            Enterprise                                              Potential
                                                                                                   Competitors
                                                                                                     “Just a URL &
                                                Marketing,
              Supply                             Sales &                                               a Dream”
                                                                                        Industry
              Chain         Suppliers            Service
                                                                                        Networks                    Competitors




           Electronic Commerce Back Office                                           Web Commerce Front Office

BI = Business Intelligence, KM = Knowledge Management, CT = Collaboration Technologies
                                                                                                           Defining the Product Data Marketplace:
                                            © 1999 Gartner Group, Inc. All rights reserved.
                                                                                                        eBusiness Issues and Technology Direction
                                                                                                                       December 2, 1999—Page 2
GartnerConsulting
Gartner Consulting                     21st Century Commerce EXPO 1999 Track 9: Product Information Management



        eBusiness Strategy:                                                                                                 Virtual Enterprise
                                                                                                                                Operations



   Virtual Enterprise Integration                                                                      Virtual Integrated
                                                                                                            Product
                                                                                                        Development &
                                                                                                          Distribution


           ces
                                                                                        Outsourcing
          r
        Fo                                                                                      Over


   rket                                                                                         GII

 Ma                                                         Distributed
                                                          Collaboration

                                                             Practices

                                     Technical
                                       Data

                                    Interchange

                      Integration
                       EDI and

                       Internal   “Full Spectrum Network Enabled
         Electronic
           Data
                                     Industrial  Business Practices
        Interchange           Electronic Commerce”
                                                                                                          Defining the Product Data Marketplace:
                                              © 1999 Gartner Group, Inc. All rights reserved.
                                                                                                       eBusiness Issues and Technology Direction
                                                                                                                      December 2, 1999—Page 3
GartnerConsulting
Gartner Consulting             21st Century Commerce EXPO 1999 Track 9: Product Information Management

             Product Development Management
                           PDM II
                      “Managing Competitiveness Across the
                       Product Development Value Chain”
                         PDM II - Product Development Management
                         VPDM - Virtual Product Development Management
                         PDM - Product Data Management
                         ERP -Enterprise Resource Planning




                     VPDM                             PDM                              ERP



         Effectiveness                           PDM II                                       Agility
              over                                                                            versus
           Efficiency                   Innovate or Die                                       Speed

                                                                                        Defining the Product Data Marketplace:
                                   © 1999 Gartner Group, Inc. All rights reserved.
                                                                                     eBusiness Issues and Technology Direction
                                                                                                    December 2, 1999—Page 4
GartnerConsulting
Gartner Consulting            21st Century Commerce EXPO 1999 Track 9: Product Information Management


        Key
        Issues
     u How     will product development evolve during
         the next five years and what role does PDM II
         play in enhancing competitiveness?
     u How           will the PDM II architecture evolve?
     u How    will the vendor landscape change as a
         result of the PDM II evolution?




                                                                                       Defining the Product Data Marketplace:
                                  © 1999 Gartner Group, Inc. All rights reserved.
                                                                                    eBusiness Issues and Technology Direction
                                                                                                   December 2, 1999—Page 5
GartnerConsulting
Gartner Consulting       21st Century Commerce EXPO 1999 Track 9: Product Information Management

 The Evolution of Product
 Development
 Competitiveness
                              CAD                               CAPE/PDM CAPE II/PDM II
                             1980s                                       1990s                   2000s
  Competitive Focus          Margin                                   Market share             Market size
  Product Development    Lower costs                               Time to market               Innovation
  Strategy
  Technology Focus       Productivity                                 Data sharing           Leveraging
                                                                                         intellectual capital
  Process Focus          Serial design                                  Concurrent         Inter-enterprise
                           process                                      engineering          collaboration
  Organizational        Departmental                                 Project teams            Agile market
  Focus                                                                                          teams

   Competitiveness = Market size x Market share x Margin on products
                                                                                    Defining the Product Data Marketplace:
                             © 1999 Gartner Group, Inc. All rights reserved.
                                                                                 eBusiness Issues and Technology Direction
                                                                                                December 2, 1999—Page 6
GartnerConsulting
Gartner Consulting             21st Century Commerce EXPO 1999 Track 9: Product Information Management



       “Right-to-Market”



                     Innovation              Cycle Time                              Cost
                       “Right-to-Market” Investment Meter

        Innovation                   Cycle Time                                         Cost
      • Synchronus supply          • Universal product                                 • Component/Supplier
        chain collaboration          data access                                         Standardization
      • “Category Killer”          • Automated workflow • CSM
         product development
                                   • PDM
      • VPDM, Digital Mockup,
        Innovation Synthesis
                                                                                           Defining the Product Data Marketplace:
                                   © 1999 Gartner Group, Inc. All rights reserved.
                                                                                        eBusiness Issues and Technology Direction
                                                                                                       December 2, 1999—Page 7
GartnerConsulting
Gartner Consulting              21st Century Commerce EXPO 1999 Track 9: Product Information Management



                               Innovate or Die
              Years               Durability of
                               Competitive Advantage
          5


          4


          3


          2


          1



                 Improve engineering          Reduce product                             Create a
                 productivity 10%-20%          development                            “Category Killer”
                                             cycle time by 30%                            Product
                                                                                          Defining the Product Data Marketplace:
                                    © 1999 Gartner Group, Inc. All rights reserved.
                                                                                       eBusiness Issues and Technology Direction
                                                                                                      December 2, 1999—Page 8
GartnerConsulting
Gartner Consulting              21st Century Commerce EXPO 1999 Track 9: Product Information Management


                             Agility Versus Speed
                                                      Product                                Product
                                                    Introduction                           Introduction
        Time 0                                     (New Process)                          (Old Process)



                                        Speed
   Course Correction 1             Course Correction 2                                    Course Correction 3
(add breakthrough feature)     (add feature to other project                           (new web delivery channel)
                                 to create product family)

        Time 0
                                                                                         Product 1
                                                                                        Introduction
                                                                                                           Product 2
                                                                                                          Introduction
                     Time 0
     Agility

                                                                                              Defining the Product Data Marketplace:
                                     © 1999 Gartner Group, Inc. All rights reserved.
                                                                                           eBusiness Issues and Technology Direction
                                                                                                          December 2, 1999—Page 9
GartnerConsulting
Gartner Consulting                     21st Century Commerce EXPO 1999 Track 9: Product Information Management


                     Effectiveness Versus Efficiency
                                                      The way things are now
                          Efficiency =
                        (internally focused)           The way things were

                                                    The way things are now
                     Effectiveness =
                      (externally focused)          The way things need to be


                         Case Example: PDM Inititative
                                    5 day ECO cycle time
              Efficiency =                                                                       = 500% efficiency
                                   30 day ECO cycle time                                           improvement
                                    5 day ECO cycle time
        Effectiveness =                                                                          = (150%) effectiveness
                                    2 day ECO cycle time
                                    for leading companies

                                                                                                        Defining the Product Data Marketplace:
                                               © 1999 Gartner Group, Inc. All rights reserved.
                                                                                                     eBusiness Issues and Technology Direction
                                                                                                                   December 2, 1999—Page 10
GartnerConsulting
Gartner Consulting                21st Century Commerce EXPO 1999 Track 9: Product Information Management


                        The PDM II Balancing Act
                               Inter-Enterprise Influences
        u Teaming skills         u Supplier integration                                 u Web Technologies
        u New reward             u Competency centers                                   u CSM
                     systems     u Customer-driven                                      u Digital Prototyping
                                  design                                                u PDM
                                                                                        u VPDM




                      People                  Processes                                  Technology




                                                     PDM II
                                      © 1999 Gartner Group, Inc. All rights reserved.
                                                                                              Defining the Product Data Marketplace:
                                                                                           eBusiness Issues and Technology Direction
                                                                                                         December 2, 1999—Page 11
GartnerConsulting
Gartner Consulting           21st Century Commerce EXPO 1999 Track 9: Product Information Management


                     PDM II: Product Development
                     Management
                      High
                                         Idea/Innovation-Centric

                                        VPDM
   Volume/Intensity
         of                                                             Document/Workflow-Centric
   Design Changes
                                                                       PDM            Transaction-Centric

                                                                                          ERP
                      Low

                            Concept                       Detail Design/              Production
                                                           Re-Design
                                  Product Development Stage
                                                                                      Defining the Product Data Marketplace:
                                 © 1999 Gartner Group, Inc. All rights reserved.
                                                                                   eBusiness Issues and Technology Direction
                                                                                                 December 2, 1999—Page 12
GartnerConsulting
Gartner Consulting            21st Century Commerce EXPO 1999 Track 9: Product Information Management



         Key Issues
      u How     will product development evolve during
          the next five years and what role does PDM II
          play in enhancing competitiveness?
      u How          will the PDM II architecture evolve?
      u How    will the vendor landscape change as a
          result of the PDM II evolution?




                                                                                       Defining the Product Data Marketplace:
                                  © 1999 Gartner Group, Inc. All rights reserved.
                                                                                    eBusiness Issues and Technology Direction
                                                                                                  December 2, 1999—Page 13
GartnerConsulting
Gartner Consulting                               21st Century Commerce EXPO 1999 Track 9: Product Information Management
                                      PDMII Architecture Evolution
                     Era                  Mid-1980s            Early 1990s                 Mid-1990s              Late 1990s/2000s
                     PDM Usage            Departmental         Departmental                Enterprise            Supply chain
                     Span
                     PDM Usage            CAD vaulting         Vault, Workflow             Vault, workflow,      Digital mockup,
                     Focus                                                                 configuration         interenterprise
                                                                                           management            collaboration
                     Web                  None                 None                        Web-enabled           Web-centric
                     Connectivity
                     User Interface       Character           Graphical hard-              Graphical             Web browser
                                                              coded                        programmable
                     PDM                  3GL                 3GL                          4GL, C++              HTML, Java
                     Development
                     PDM Tools            None                Proprietary                  Proprietary APIs      Standard Web tools
                                                              Scripting
                     Middleware           None                 Tied to database            Object messaging      CORBA, DCOM
                     Data Model           Tables               Tables                      Fixed                 Federated
                                                                                           objects/tables
                     Database             Single RDBMS         1 or 2 RDBMSs               Oracle RDBMS          Oracle
                                                                                                                 object/relational
                     Vault                Centralized          Distributed                 Distributed,          Distributed, full
                     Architecture                                                          partial replication   replication
                     Example              Digital EDCS         Sherpa PIMS                 Metaphase 2.0         Windchill


                     3GL     Third-generation language                              EDCS       Engineering Data Control Sys
                     4GL     Fourth-generation language                             ERP        Enterprise resource planning
                     API     Application programming interface                      HTML       Hypertext Markup Language
                     CAD     Computer-aided design                                  PDM        Product development management
                     CORBA   Common Object Request Broker Architecture              PIMS       Product Information Management System
                     CSM     Component and Supplier Management                      RDBMS      Relational database management system
                     DCOM    Distributed Common Object Model                        VPDM       Virtual product development management
                                                                                                                         Defining the Product Data Marketplace:
                                                         © 1999 Gartner Group, Inc. All rights reserved.
                                                                                                                      eBusiness Issues and Technology Direction
                                                                                                                                    December 2, 1999—Page 14
GartnerConsulting
Gartner Consulting       21st Century Commerce EXPO 1999 Track 9: Product Information Management



                        VPDM versus PDM

                                 VPDM                                                   PDM




  Collaboration Style      Synchronous                                          Asynchronous

  Collaboration Model      Publish/Subscribe                                   Workflow

   Data Model              Behavioral Model                                    Engineering BOM

   Primary Interface       Digital Mockup Engine                               PDM Web client

  Repository Contents      Ideas and Knowledge                                 Drawings and Models
                                                                                  Defining the Product Data Marketplace:
                             © 1999 Gartner Group, Inc. All rights reserved.
                                                                               eBusiness Issues and Technology Direction
                                                                                             December 2, 1999—Page 15
GartnerConsulting
Gartner Consulting                  21st Century Commerce EXPO 1999 Track 9: Product Information Management

  VPDM Project Process Model
                                        LAN/WAN

                                        Frame Stiffness coef.

                           Rear Cog                               Fork Suspension
                           Gear Ratio                             Rebound                 Intelligent
   Behavioral                                                                              Software
     Model                                                                                  Agents
                                            Bottom Bracket Hgt
                                Wheel Aero Profile



                     Published Objects                           Subscribed Objects


                                           Frame
                                           - object 1
                                           - object 2
                                           - object n
               Knowledge                   Wheel
                                           - object 1
           Glossary Repository             - object 2
                                           - object n
                                                                                             Defining the Product Data Marketplace:
                                        © 1999 Gartner Group, Inc. All rights reserved.
                                                                                          eBusiness Issues and Technology Direction
                                                                                                        December 2, 1999—Page 16
GartnerConsulting
Gartner Consulting            21st Century Commerce EXPO 1999 Track 9: Product Information Management



         Key Issues

     u How     will product development evolve during
         the next five years and what role does PDM II
         play in enhancing competitiveness?
     u How           will the PDM II architecture evolve?
     u How    will the vendor landscape change as a
         result of the PDM II evolution?




                                                                                       Defining the Product Data Marketplace:
                                  © 1999 Gartner Group, Inc. All rights reserved.
                                                                                    eBusiness Issues and Technology Direction
                                                                                                  December 2, 1999—Page 17
GartnerConsulting
Gartner Consulting            21st Century Commerce EXPO 1999 Track 9: Product Information Management



                            PDM II Evolution
                             Phase I - 1998/1999

                     VPDM                        PDM                                      ERP



                             Phase II - 2000/2001

                       VPDM                    PDM                                  ERP



Phase III - 2001/2003 (0.4 probability) Phase III - 2001/2003 (0.6 probability)
  ERP Becomes a Major Market Force ERP systems retrench to a handshake roll

    VPDM PDM            PDM       ERP                                    VPDM                PDM                       ERP

                                                                                             Defining the Product Data Marketplace:
                                  © 1999 Gartner Group, Inc. All rights reserved.
                                                                                          eBusiness Issues and Technology Direction
                                                                                                        December 2, 1999—Page 18
GartnerConsulting
Gartner Consulting         21st Century Commerce EXPO 1999 Track 9: Product Information Management


              eBusiness Summary: The Five Points
                                    E-Vision:
                        Ensure the CEO communicates
                         the strategic eBusiness vision



 E-Management: Create new                                                        E-Competition: Account for
 structures to coordinate                                                           cyber-competition in the
 eBusiness activities                                                            eBusiness-planning process




E-Plans: Write individual business
                                                                             E-Review: Constantly review
plans for each eBusiness market
                                                                             all eBusiness investments
application
                                                                                        Defining the Product Data Marketplace:
                               © 1999 Gartner Group, Inc. All rights reserved.
                                                                                     eBusiness Issues and Technology Direction
                                                                                                   December 2, 1999—Page 19

				
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