Published in August of 2012, research conducted of more than 200 companies reveals how they improved performance and reduced time-to-market by as much as 17%.
Aberdeen discusses the role of BOM (Bill of Materials) as the critical foundation for collaboration between departments in manufacturing, and how it impacts product development targets, specifically for small and medium size businesses (SMBs).
For SMB organizations, reading Growing Product Complexity in SMBs is critical for learning about:
Why SMBs are more challenged by growing product complexity than all companies combined:
-And how their challenges get compounded so SMBs meet only 64% of product launch dates vs. 86% by Best-in-Class companies
Best Practices in BOM Management:
-Aberdeen’s isolates best-in-class behaviors that SMBs can use to improve their product development targets
-PLM for BOM management – the key differentiator between Best-in-Class company performance and that of SMBs
The Role and Value of Product Lifecycle Management (PLM):
-The capabilities that Best-in-Class companies look for in their PLM solution
Download the full report now>> http://www.slideshare.net/ptc/growing-product-complexityinsmbsaberdeen2012
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Growing Product Complexity in SMBs: A Guide to BOM Management [Report]
1. August 2012
Growing Product Complexity in SMBs: A
Guide to BOM Management
Aberdeen's Responding to Growing Complexity: Improving BOM Sector Insight
Management in Product Development and Beyond (June 2012) showed that Aberdeen’s Sector Insights
increasing product complexity complicates and delays product development provide strategic perspective
processes. Top performing companies in this study were almost 40% more and analysis of primary
likely to be using a Product Lifecycle Management (PLM) system to enable research results by industry,
BOM business processes and operate them efficiently. market segment, or geography
Based on the experiences of over 200 companies, this Sector Insight shows
the opportunities small and medium businesses (SMBs) have to improve
Sector Definition
their performance by adopting the Bill of Materials (BOM) management
processes used by the top performing companies to address the challenge Aberdeen’s standard company
of increasing product complexity. size definition:
√ Large – Greater than US$1B
Business Processes and Product Development annual revenues
Aberdeen's research has consistently shown that top performing companies √ Medium-sized - $US100M to
have streamlined and standardized business processes. For example, $US$1B annual revenues
Aberdeen's ERP in Manufacturing 2012: The Evolving ERP Strategy 2012 report
(July 2012) showed that Best-in-Class manufacturers were 65% more likely √ Small – Less than $US 100M
annual revenues
to have standardized processes that connect manufacturing and product
development. √ Small to Medium-sized
Businesses – Less than
With 61% of respondents in the Responding to Growing Product Complexity
US$1B annual revenues-
study stating that the velocity of product launch is a top pressure, optimizing
and streamlining key product development business processes only makes
sense. The data also shows that BOM management a key process that can
make a significant difference to a company’s performance. This report will
show which BOM management capabilities SMBs should adopt to improve
their performance.
Products are growing in complexity as the number and types of components
Top Three Pressures on
increase. As Figure 1 shows, SMBs are even more challenged by growing
Product Development for All
product complexity than all companies combined. On the other hand, SMBs Companies:
are slightly less concerned than all companies combined when it comes to
decision-making. This is more than likely the result of SMBs having smaller √ Need to launch product
organizations, in which resources are co-located and communications tends quickly (61% of respondents)
to be more local. √ Customer demand for low
cost products (46%)
√ Need to capitalize on new
market opportunities (37%)
This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and
represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.
and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.