PTC Live Global 201313 Jun, 2013 By: Nancy Spurling Johnson
Event Report: Technology is key to getting ahead of the forces driving massive transformation in the manufacturing market, says company CEO at annual user event.
"When it comes to products and services, and the relationship that those products and services create with your customers, we are in the middle of some kind of massive transformation."
Those were the words of Jim Heppelmann, president and CEO of PTC, at the company's four-day user conference and exhibition that ran through yesterday at the Anaheim (California) Convention Center. From the world where products are consumed, to customer expectations, to a product's very bill of materials, Heppelmann remarked, the manufacturer's reality is dramatically changing. In his opening keynote address at PTC Live Global 2013, an event attended by a reported 1,900, the company leader discussed seven macroeconomic forces he believes are driving this transformation.
"If you think about any one of these forces," Heppelmann said, "by itself it's a big deal. Any one of these forces could help you gain an advantage on a competitor — or put you at a big disadvantage if they beat you to it. But I would position with you that the sum of all of them is completely transformational. This is a life-or-death moment for companies to either get ahead of these things — realize that the world of the future is smart, connected, global, configurable products and try to win in that world — or perhaps get run over by new people who try to disrupt your market, your business, by getting to this concept before you."
Heppelmann addresses the crowd at PTC Live Global 2013 on Monday.
Also this week, PTC announced Manufacturing Transformation, a report by independent research firm Oxford Economics that presents much of the quantitative and qualitative analysis behind Heppelmann's seven forces. Based on input from 300 manufacturing executives, it identifies the strategies that manufacturers are adopting to transform their businesses and differentiate themselves for competitive advantage. Adjusting priorities, the report states, can enable large manufacturers to increase revenue by as much as $200 million and reduce costs by as much as $100 million. PTC is currently offering Manufacturing Transformation free to those who register.
Seven Forces Driving Manufacturing Change
Heppelmann outlined the seven macroeconomic forces that he believes are driving transformation in today's manufacturing industry — and driving his company's software-development strategy as well. (Note: A video recording of Heppelmann's presentation is available on the PTC web site, as are recordings of several other keynote talks by PTC executives and customers.)