SAP PLM Ranked No. 1 for Direct Revenue in the cPDm Market

Every year, the leading product life-cycle management (PLM) management consulting and research firm CIMdata, Inc. publishes in-depth data and analysis of the global PLM market, which is then introduced during their PLM Market & Industry Forums in the spring.

This year, SAP has been recognized as the leader in direct revenue in one of the industry’s fastest growing categories, collaborative Product Definition management (cPDm).

There are multiple definitions and segments of the PLM market, cPDm being one of them.

CIMdata defines cPDm as “a strategic business approach that enables enterprises to bring innovative and profitable products to market more effectively by applying a consistent set of business solutions that are provided through a combination of best-practices, processes and technologies such as product data management, collaboration, visualization, collaborative product commerce, enterprise application integration, component supplier management, etc., to collaboratively manage the product definition lifecycle across the extended enterprise”. In other words, cPDm enabling solutions make up the non-authoring tool PLM market.

SAP addresses the cPDm category with the SAP Product Lifecycle Management application (SAP PLM), a comprehensive solution that is already being used by more than 8,300 customers worldwide. The solution supports integrated product development, portfolio and project management and compliance processes, both for discrete and process industries.

“SAP has been a consistent presence in the PLM market since the category was defined over a decade ago,” said Stan Przybylinski, director of Research at CIMdata. “The company has worked hard to enhance their base cPDm capabilities, as well as extend into new segments, such as portfolio and project management. Their move into a leadership position in the cPDm segment of our annual global PLM market study is a clear outcome of their product and service development efforts. With their new visual enterprise strategy, SAP PLM is addressing a market trend to offer visual decision making capabilities that industrial companies are seeking to help optimize their product development processes.”

This is good news. According to CIMdata’s forecast, the cPDm market segment will experience significant growth in the next years. The analysts expect a double digit five-year compound annual growth rate (CAGR) of 11.5 percent in cPDm software, resulting in a projected cPDm software market size of approximately $17 billion by 2016, based on total software investments. This is a huge potential for PLM software providers, and SAP will continue to follow their strategy of providing user-friendliness combined with deep integration into SAP Business Suite.

SAP’s strategy is to help companies become more innovative and profitable. SAP PLM unites high functionality with deep integration into SAP Business Suite, combined with an intuitive User Interface that enables customers to explore new ways of collaboration and communication. Additionally, SAP Visual Enterprise applications integrated with SAP PLM bring to the user a complete new ‘view’ of their data that enables better decision-making and drives faster time to market for our customers.  This recognition by CIMdata is exciting news for SAP PLM, and we are excited for more good things to come.

The latest release of SAP PLM 7.02 became globally available in April 2012.

Thomas Ohnemus is vice president of Solution Marketing for SAP PLM, SAP Manufacturing and SAP Visual Enterprise Solutions