Global Survey Offers Look at Industry Trends and Product Development Best
Practices
NEEDHAM, Mass., June 30 /PRNewswire-FirstCall/ -- PTC (Nasdaq: PMTC), the
Product Development Company(TM), today announced the results of a new global
benchmark study of the industrial equipment manufacturing industry that
reveals product development to have a significant positive impact on corporate
performance. The study also shows that real competitive advantage is created
through superior product development capabilities and execution. While some
of these capabilities are always relevant for both industry leaders and
laggards, companies with the best PLM tools and capabilities have better
product development performance, including faster time to market, lower
engineering change order (ECO) cycle times, and fewer ECOs after design
release.
The study, conducted by PTC and the Aachen University of Technology in
Germany -- one of the world's largest and most distinguished engineering
universities, is based on interviews with senior executives (vice president
and directors) across North America, Europe and Asia in the industrial
equipment industry. Study highlights include the following conclusions:
* Value Chain Complexity Increasing -- Industry-wide, product development
activities are increasingly being distributed across multiple teams
and sites, a trend that is likely to continue. Companies experiencing
the highest gains in profitability have dramatically increased their
rate of outsourced R&D, with industry leaders outsourcing nearly 50
percent more R&D activities than less successful companies.
* Platform Focus Wins -- Successful companies launch more new products
and generate more revenue from each new product. And though it is
often the case than an increase in product variety has a negative
impact on profitability, the top-performing companies in the
industrial equipment industry minimize that affect by launching six
times more new product variants per platform than their competitors.
* Leveraging Diverse Platforms Drives New Product Revenue -- Industrial
equipment leaders are most apt to invest in smaller, more numerous
product development projects than their peers -- creating a more
predictable development pipeline. This practice indicates that leaders
have an established portfolio strategy that relies on regular product
line extension. The strategy aligns closely with the platform focus,
together creating a solid foundation for better product development
process management.
"We've found a number of product development practices and capabilities
shared among the industrial equipment industry leaders -- as well as
commonalities shared by the under-performers in the industry," said Abraham
Chaves, director, Industrial Equipment Market Development at PTC. "Our study
shows companies with high adoption of PLM tools and capabilities complete
development projects both on time and on budget more than twice as often as
companies with less mature PLM tools and capabilities."
The research study also shows a growing gulf between top and bottom-tier
industrial equipment companies in earnings growth, with the leaders enjoying
47 percent growth on average, while trailers have seen a decrease in earnings
by and average of 35 percent.
To learn more and to become a participant in the ongoing study, which is
measuring how an industrial equipment company's product development practices
and capabilities measure comparatively to the top performers in the industry,
visit http://www.ptc.com/solutions/industry/industrial/index.htm.
About PTC
PTC (Nasdaq: PMTC) develops, markets, and supports software solutions that
help manufacturers win with superior products. With a total commitment to
product development and product lifecycle management (PLM), the Company
services more than 35,000 customers worldwide. PTC is included in the S&P 500
and Russell 2000 indices. Further information on PTC is available at
http://www.ptc.com.
About Aachen University of Technology
RWTH -- The Aachen University of Technology in Germany, is one of the
world's largest and most distinguished engineering universities. RWTH has a
long history of close, wide-ranging cooperation with national and
international industries and research centers. Founded in 1870, RWTH today
enrolls more than 30,000 students.
Except for the historical information contained herein, matters discussed
in this news release may constitute forward-looking statements that involve
risks and uncertainties that could cause actual results to differ materially
from those projected. These include projections interpolated from the
quantitative and qualitative results of the study and potential results
obtained from implementing product lifecycle management solutions.
Contact Information:
Chris Newton Kalley Thomas
PTC Global Analyst Relations Weber Shandwick Worldwide
781-370-6752 617-520-7240
cnewton@ptc.com kthomas@webershandwick.com
SOURCE PTC
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Related links:
http://www.ptc.com
CONTACT:
Chris Newton of PTC Global Analyst Relations,
+1-781-370-6752, cnewton@ptc.com; or Kalley Thomas of Weber
Shandwick Worldwide, +1-617-520-7240, kthomas@webershandwick.com
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