All in the JV Game

The fundamental transformation that the Internet can bring to collaborative

processes was the USP when Jim Heppelmann set up Windchill Tech in 1996. Two

years later, PTC bought out Computervision, and also inherited Windchill

operations. Since then, Jim Heppelmann has had a major impact on PTC’s growth

and future vision–from zero to $200 million in revenues. Today, he is PTC’s

CTO and the executive V-P (software products)

Where is the manufacturing sector headed in terms of IT’s role in

manufacturing?



IT is playing an increasingly larger role in the manufacturing sector.

Originally, IT was called into manufacturing to implement ERP systems which

would track Bills of Material (BOMs). Today’s value chain demands more out of

manufacturing and requires collaboration with other groups in order to be

successful. This need for collaboration requires a large amount of technological

support that can be integrated into the manufacturing process. In fact, IT’s

role in the company has been elevated to that of a business partner rather than

that of a support arm. The elevation of IT to a C(X)O level is further evidence.

Where does collaborative product commerce (CPC) fit in?



This is a category of software and services that leverages the Internet to

deliver value across the product development spectrum, from product conception

through to retirement. CPC enables companies to elevate the value of product

information from an engineering asset to an enterprise asset so they can meet

product targets and exceed revenue goals. It also brings constituents across the

value chain together online to collaboratively develop, manage and evolve

products throughout their entire lifecycle based on customer and market demand.

What triggered the need for a concept like CPC, and then the development

of Windchill?



Manufacturers are constantly redefining the boundaries of the virtual

enterprise. They’re buying companies, spinning off new ones, reorganizing,

starting new projects and retiring old projects–it’s a very dynamic

environment. An information system  that freezes one snapshot of a

manufacturer’s processes at a given point of time becomes a real problem. In

fact, it soon becomes what’s known as a legacy system. This development raises

two questions: How can the enterprise use software technology to enable today’s

process, and when the time comes to redefine the process, is it fairly

convenient, or at least possible, to redefine the technology? We think Windchill

has some significant technical advantages in both of these areas.

Has Windchill achieved what was intended or is the goal still a distance

away?



The root of CPC is a top-down versus a bottom-up approach in implementation.

A top-down approach demands one process that everybody in the company uses one

process. It may turn out that your company makes cars and trucks, and it has a

defense division that makes tanks. Given the different requirements in these

areas, it is not convenient to standardize on one common process.

With Windchill, we’re looking at a less bureaucratic, more autonomous model

of cooperation, where people can implement what works for them but still

cooperate with the next person even if his or her process isn’t identical. The

way I like to put it is, ‘optimize locally, integrate globally.’

What was the need for CPC3? Is it aimed at tackling the tough market

situation and a marketing initiative or is there more to it?



CPC3 is the joining of forces between Accenture, PTC and Sun Microsystems to
provide CPC solutions. The solution leverages Accenture’s expertise in

delivering successful CPC implementations, PTC’s Windchill software, and Sun’s

Network Computing Solutions and iForce solution approach. The goal of the CPC3

solution is to offer customers a proven, combined-effort approach to CPC in

order to accelerate their product development process.

Windchill is yet to complete four years of existence. How has the market

reacted to it in this time, particularly in terms of realization of a sale?



The market is developing quickly and the revenue track of Windchill proves

it.

When we first introduced Windchill in 1998, we generated around $11 million

in revenue. By 1999, this number had grown to $81 million and it more than

doubled again in 2000 to $174 million. In 2001, despite a terrible economic

situation and the horrific disaster here in the US, we continue to project

revenues well in excess of $200 million. Right now, we are seeing the concept of

collaborative product commerce move from the ‘early adopter’ phase into the

corporate mainstream. There’s still a distance to be walked, but this journey’s

just begun...

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