Product Lifecycle Management Automation is Vital to Innovation, Yet Only Half of Consumer Firms Effectively Apply It, Says Aberdeen Group Study

Business Wire, July 26, 2004

BOSTON -- Consumer product manufacturers that automate product development processes with integrated product data management, project management, and analytical tools outperform peers in development cycle times and new product costs, quality, revenues, and profits, according to a new Aberdeen Group study.

Based on a survey of design, development, and operations executives at more than 215 consumer products companies, Aberdeen found that product lifecycle management (PLM) technologies delivered the following benefits to users:

--Increased revenue contribution of new products

--Reduced product costs by more than 17%

--Shrunk design cycles by more than 25%

--Reduced time-to-volume cycles by more than 10%

--Improved part reuse by more than 30%

--Increased engineering productivity by more than 15%

Aberdeen's "Product Development in the Consumer Industries Benchmark" study also found that companies using PLM technologies reported twelve times fewer product defects and fourteen times fewer product recalls than non-users. However, only about half of all consumer companies have effectively leveraged PLM technologies to date.

"Our study clearly identified PLM automation as the most effective, and least used, ever for product development improvements," said Tim Minahan, Aberdeen's senior vice president of supply chain research and author of the report. "Considering the limited penetration of these technologies within the consumer sector, PLM automation can be a major competitive weapon for product innovation and competitive differentiation for consumer companies."

The study identified the following as the PLM technologies consumer firms have prioritized for investment within the next two years:

--Product data management

--Product costing

--Project and program management

--Visualization

Other areas identified for technology investment include manufacturing design and simulation, sourcing, and artwork and packaging design management. Technology investment priorities varied by industry.

To obtain a copy of the "Product Development in the Consumer Industries Benchmark" report, please follow this link:

www.aberdeen.com/ab_company/hottopics/productdev/default.htm

About Aberdeen Group

Founded in 1988, Aberdeen Group is the trusted advisor to the Global 5000 for value chain strategies and technology advice.