Benchmark Survey of More Than 200 Senior Executives at Manufacturing Companies
Around the World Reveals Product Development Best Practices of The Automotive
Industry's Leaders
NEEDHAM, Mass., June 30 /PRNewswire/ -- PTC (Nasdaq: PMTC), the Product
Development Company(TM), today announced the results of a new global benchmark
study of the automotive industry. The study revealed that deploying a superior
product development strategy has a positive impact on financial performance.
Conducted by PTC and the Aachen University of Technology in Germany -- one of
the world's largest and most distinguished engineering universities, the study
is based on interviews with senior executives (vice president and directors)
across North America, Europe and Asia in the automotive industry.
The results indicate that automotive companies can achieve a significant
competitive advantage through superior product development capabilities and
execution. And while most companies share similar business objectives, the
difference between leaders and laggards is ultimately in their product
development capabilities -- with the top performers owning advanced product
development capabilities that enable them to translate their strategies into
positive financial performance.
The study highlights the best practices of the industry leaders and
includes the following conclusions:
-- The Big Divide -- The financial value of competitive advantage is clear
within the automotive industry, as better performing companies enjoy
significantly higher profit margins and revenue growth rates over
lesser-performing counterparts. In addition, the profitability gap
between the financially successful automotive companies and less
successful ones is even larger than expected -- and it continues to
widen.
-- Financial Success Linked with New Product Revenue -- Looking at
different measures of R&D performance, financially successful companies
gain a clear competitive advantage by their ability to drive revenue
from new products.
-- More Bang for More R&D Buck -- No matter what stage of a company's
lifecycle, the leaders tend to invest more in R&D per employee. Also,
leaders in revenue growth spend 20 percent more in R&D than their
peers, yet realize almost seven times more revenue from new products --
a trend that goes hand in hand with significantly higher R&D spending
per employee.
"The study results suggest a strong connection between product development
investment and corporate success -- both competitive and financial," said
Dhiren Verma, director, Product and Market Strategy at PTC. "And while both
the leaders and laggards in the automotive industry appear to be pursuing the
same product development strategies, it's ultimately their ability to execute
on those strategies that determines their success."
The study also offers some general industry observations within the
automotive industry. With forecasts of higher revenue growth in the future,
there is an overall optimism within the industry, as companies are expecting
to see commensurate growth in R&D budgets. In addition, the automotive
industry is also seeing increasing complexity in the value chain, with a
dramatic increase in outsourcing of product development and manufacturing, and
significant growth in the number of sites companies must manage and coordinate
in their product development process.
To learn more and to become a participant in the ongoing study, which is
measuring how an automotive company's product development practices and
capabilities measure comparatively to the top performers in the industry,
visit http://www.ptc.com/solutions/industry/automotive/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
PTC Analyst Relations
781-370-6752
cnewton@ptc.com
Kalley Thomas
Weber Shandwick Worldwide
617-520-7240
kthomas@webershandwick.com
SOURCE PTC
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Related links:
http://www.ptc.com
CONTACT:
Chris Newton, PTC Analyst Relations,
+1-781-370-6752, cnewton@ptc.com; or Kalley Thomas, Weber
Shandwick Worldwide, +1-617-520-7240, kthomas@webershandwick.com
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