Intelligent Manufacturing € December € 1996 € Vol. 2 € No. 12

Identifying Key Trends in PDM

CIMdata (Ann Arbor, Mich.), a market research firm specializing in computer-aided manufacturing trends, has identified five key trends in product data management (PDM). These trends, based on input from nearly 50 PDM suppliers, will reshape the PDM industry:

Collaboration Between Competitors. The necessity of integrating PDM in product development as well as downstream in manufacturing organizations is challenging PDM vendors to work with ERP/MRP software vendors who are potential competitors.

Pull of the Web. Users are demanding Internet and intranet PDM applications as a way for large numbers of users to access PDM information across a corporation and throughout the supply chain. New Web-based environments are driving vendors to rethink packaging and pricing models on a wide-scale basis.

Pre-Packaged Solutions for Quick ROI. Under pressure to show quick returns on their investments, user companies are driving vendors to offer pre-packaged PDM solutions (templates) rather than toolkit software that requires extensive customization before implementation.

Growing IT Influence in PDM. Corporate-wide information technology (IT) groups are having increasing influence in the selection of PDM systems. PDM vendors must learn how to communicate effectively with these groups, which previously were largely outside the PDM decision-making loop.

Help Wanted: Skilled PDM Implementors. People skilled in PDM applications are in critically short supply, squeezing many vendors in sales situations and customer support. Vendors must creatively address this issue through training and alliances with third parties for implementation support.

CIMdata statistics indicate the worldwide PDM market for software and services could top $850 million this year, and might be close to $2 billion by the year 2000. Historically, revenue for software and services have been roughly split, but over the next five years, "the growth rate in services will surpass the growth rate in software revenue as more systems integration is required to make PDM systems work smoothly with other technologies," according to Ed Miller, CIMdata's president.

Market growth will be driven primarily by sizable investments in PDM by large manufacturing firms, particularly in the automotive industry as well as aerospace and defense industries.

Click here to return to Table of Contents for the Intelligent Manufacturing December issue.