Vendors Need to Strengthen Linkages with ERP and BA to Restore Competitiveness of Local Manufacturers in the Global Market

TOKYO, June 8, 2012 — International Data Corporation (IDC) has published 2011 results and a five-year forecast for the Japan product life-cycle management (PLM) applications market. According to the report, the core PLM applications market for Japan maintained the high growth rate achieved in 2010 with revenues reaching 129,689 million yen in 2011 and year-over-year (YoY) growth of 6.7%.

Manufacturing has substantially restrained its IT spending since the global economic recession began in 2008, but IDC's analysis indicates that it will be absolutely necessary for manufacturers to investment in core PLM applications to overcome natural disasters, intense market competition, and other unforeseeable changes and challenges in the market; as well as to expand global operations. IDC forecasts a compound annual growth rate (CAGR) of 4.3% for the core PLM applications market during the 2011–2016 period. Moreover, among functional segments of the core PLM applications market, collaborative product data management (cPDM) will outperform the total market with a CAGR of 6.3%. The cPDM market also experienced the highest year-over-year growth rate among the functional segments of the core PLM applications market in 2011.

Japan Core PLM Applications Market Revenue by Functional Segment, 2011–2016 (M yen)

Figure 1

IDC conducted a survey about the effect of PLM among 131 manufacturing firms that have introduced PLM. The highest response was management of design and product data at 23.7%. These findings indicate that companies give particularly high marks on cPDM among PLM's installation impacts. The next highest response was management and reduction of manufacturing costs at 22.9%. IDC analyzes this as an indication that PLM brings a new focus on manufacturing costs throughout the development process, right from the design stage.

"If enterprise resource planning (ERP) is considered as a mission-critical system for companies on the flow of money, PLM is also a mission-critical system for manufacturing on the flow of products. Japan's manufacturing sector will be required to strengthen the linkage of PLM, ERP, and business analytics (BA) if it is to improve its sharing of product information; foster collaboration between development units, and production, marketing, sales and service units; and restore competitiveness in global markets," says Tomoko Akagi, group manager, Software and Security, IDC Japan.

For more details, refer to Japan Product Life-Cycle Management Applications 2012–2016 Forecast and 2011 Analysis (IDC #JP2542803U).

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community, to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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