12 Nov 2007
PLM+ERP news digest from isicad, August-October 2007
isicad launches regular (presumably, quarterly) publication of the news digests of the Russian PLM and ERP market. Our digests will mainly comprise the news published on our Russian-language site www.isicad.ru/ru, which has already gained popularity in Russia, and describe the Russian PLM and ERP market.
Here are the headlines from our first digest:
- The 8th International Aviation and Space Salon MAKS-2007 (August 2007) became a major landmark for the development of the Russian PLM market; aerospace industry news
- Russia organized a dozen of large-scale forums, seminars and exhibitions on PLM and ERP in August-September
- Russian ERP market is growing in seven-league steps
- The main Russian providers of CAD/PLM solutions
- CAD classification from Cyon Research; and CAD prices in Russia
- Digital Prototyping, PLM, taikonauts, and isicad-2008
- Intel, Siemens and Schlumberger would like to become residents at the Novosibirsk Technopark
- Three isicad projects: information and analytical portal, multi-vendor PLM+ERP Forums, and annual publication of the «PLM+ERP Encyclopedia»
1. International Aviation and Space Salon MAKS-2007 and the news of the aerospace industry
The 8th International Aviation and Space Salon MAKS-2007 became a major landmark for the development of the Russian PLM market, as traditionally the aerospace industry has been the principal end-user of product lifecycle management solutions. Aircrafts, helicopters, rockets and spaceships are examples of the most complex products, their development is based on international cooperation of dozens, if not hundreds companies, while their lifecycle is one of the longest and adaptable to the streamline production methods. It is notable that all leading CAD and PLM providers as well as their business-partners participated in MAKS-2007, advertising their solutions for the aerospace industry on the companies' stands in the exhibition pavilions.
A leading Russian developer of booster rockets Progress TsSKB [Central Special Design Bureau] has selected the KOMPAS system, developed by another Russian company ASCON, as its product engineering tool. The company's integrated approach is noteworthy: along with issuing dozens of licenses for KOMPAS-Graphic and KOMPAS 3D, it has put across a pilot project for implementing the LOODSMAN:PLM product data management system. According to Progress experts, such an approach will facilitate adjustment of business processes, firstly, by eliminating data inconsistency, secondly, by ensuring quick access of all members of staff to the information.
NPO Saturn, a leading designer of gas-turbine engines, has started developing the most powerful supercomputer (based on IBM technologies) in the Russian and CIS industries, which non surprisingly was announced at MAKS-2007. The supercomputer will be used for gas-dynamic, endurance and acoustic engineering calculations, required to implement a number of the biggest projects on developing new civil and military aircraft engines.
Novosibirsk, where this report is generated, becomes increasingly aware of the growth of the Russian aerospace industry. Since the beginning of the year, the Novosibirsk Aviation Production Association (NAPA) named after Chkalov has hired nearly 900 people and assisted 60 students in enrolment at Novosibirsk State Technical Univeristy (NSTU). Undoubtedly, it is a direct consequence of NAPA's simultaneously playing a full role in several large-scale projects undertaken by the Sukhoi Holding, such as building the regional Sukhoi Superjet-100, the production bomber SU-34, and a fifth generation multifunctional fighter, which require aggressive use of state-of-the-art CAD/PLM from several leading providers.
Presentation of Sukhoi SuperJet-100 regional aircraft took place on 26th September in Komsomolsk-on-Amur. It is the biggest-ever project of the Russian aviation industry, and perhaps domestic industries in general, for the last 15 years and the first Russian experience of a full-scale application of PLM-technology. Without these technologies the project could have hardly been accomplished under such a tight schedule (the work started in 2001). SuperJet development involved dozens of allied industries and design bureaus from Russia and -again for the first time in the history of Russian aviation several leading foreign developers and providers of the key aircraft systems. Achieving such level of co-operation would be impossible without employing CAD tools, organizing collaborative product development, and managing project logistics and engineering workflow. For the first time ever in Russia the main project actors the Sukhoi design bureau, its branches, production plants and the engine designers were united into a single real-time PLM-environment. It is expected that major project stakeholders will share their experience with the audience of isicad-2008.
2. Important forums, seminars and exhibitions on PLM
An informative seminar «Applying CALS/PLM/PDM-technologies in atomic energy» was organized in July by Corporate Electronic Systems [CALS-Center] practically a la isicad; see the report on the company's site and the PCWeek article «PLM: Rosatom case study».
«3D Forum Autodesk» was held on 25th September in Moscow to celebrate the 25th anniversary of this outstanding company, which has been very active on the CIS market in the last two years. The Forum was attended by nearly 1000 persons! It is noteworthy that following the manufacturers of the so-called «heavy solutions», Autodesk a producer of the most popular 3D-systems -actively advocates digital prototyping. «3D design is not enough, says Alexander Tasev, the Head of Autodesk Representative Office in CIS, -geometric model is not everything, and we need a smart model digital prototype. In brief, digital prototype is a set of solutions providing complete e-description of a product, which enables to test and analyze the new product without creating its physical models». (see also Part 6 of the digest).
Annual PLM Forums of Dassault Systemes Russia traditionally attract considerable attention. This year DS Forum was held in Moscow on 11th October. Senior management of the Russian division discussed the last year's achievements with their clients (whose representatives filled a 500 seat auditorium). The company made heavy investments in Russian market development: increased the staff of its Russian subsidiary from 7 to 15, brought in three new business partners, established cooperation with 15 universities, localized CATIA and ENOVIA SmarTeam software products (the latter project was completed with participation of a Russian company LEDAS). Business effect of the above actions a twofold increase of the licenses for Dassault Systemes software products sold in Russia. At the Forum press conference, Laurent Valroff, the Director of Dassault Systemes Russia Corp., noted that his company yields the first position on the Russian PLM market to Siemens PLM Software (former UGS), but outruns another main competitor PTC. Distinctive feature of the Russian PLM market is that a strong national player ASCON competes against the three global leaders. Mr. Valroff estimated the overall PLM market in Russia at $60 mln per year.
SolidWorks Russia's 9th annual all-Russian conference was dedicated to the launch of SolidWorks 2008. The Moscow venue was attended by over 600 representative of industries and technical universities from 7 countries and 90 cities of CIS.
The Novosibirsk SolidWorks seminar in September was important primarily as an indicator of the state and the tone of the regional market in Siberia. As it turned out, the rumors of its absolute insolvency and unwillingness to buy licenses were quite exaggerated. It is illustrated not only by the energy of the seminar participants, but also by frequent callings to the newly opened SolidWorks reseller center in Novosibirsk as well as already accomplished transactions.
Decision of PTC and its several partners to organize their seminar in Novosibirsk (30th October) is yet another confirmation of the regional market development and its commercial prospects. At the seminar the company presented practically all its principal solutions: Pro/E, WindChill, Arbortext, MathCAD, etc., and gave detailed account of some of the company's large implementation projects, particularly, those acaccomplished in Russia. We would like to specially point out the statement made by Laurent Costa, Sales Development EME, that ÐÒÑ will devote substantial attention to the Russian market considering it higher priority than the markets of India and China. Mr. Costa emphasized that some time ago he started a crash course of Russian and travels to Russia practically every fortnight. You can read isicad illustrated report about the seminar.
The major Russian (in the past Soviet) exhibition SofTool has been around for nearly 20 years:
see the main site in Russian: www.softool.ru, or its English version: www.softool.ru/ru/english. The general sponsor of this big-league exhibition was 1Ñ the Russian ERM leader (see Part 3 below). In recent years SofTool has also hosted a separate CAD/PLM exhibition CADExpo, which is always attended by practically all leading players on the Russian CAD/PLM market.
This year isicad became one the most actively engaged co-organizers of CADExpo: in particular, we collected works for the graphic computing contest TVORETS («creator»):, and an isicad/LEDAS representative Vladimir Malukh was invited to mediate a press-conference of a rather unique format: «CAD. Vendors Open collar meeting», in which many top-managers of the companies CAD/PLM market leaders took part.
3. Russian ERP market is growing in seven-league steps
According to IDC, SAP became the market leader in 2006 and expanded its market share from 39.7% to 45% within a year. On the contrary, Oracle, being on the second place, reduced its market share by 3.7%, increasing the gap between it and the market leader, and holds 18%. Russian 1C, which in 2006 controlled 12% of the market, is on the third position, followed by Microsoft Dynamics; and finally «Galaktika», that secured slightly more than 6.3% of the market, is the fifth leading company. Therefore, the first five companies control 89.7% of the market while the aggregate share of Russian companies in this group has increased from 15.8% in 2005 to 18% in 2006.
It is symbolic that recently all leaders have showed their interest towards PLM.
According to IDC, the Russian EPR market has grown by half
Last year the growth of the ERP market in Siberia was around 100%. Today about 50% of the regional market is controlled by nine Microsoft partners, especially, when it comes to the Microsoft Dynamics product line. At the same time, SAP has also been very active on the market; GMCS a leading Russian distributor of Oracle opened its representative office; and 1C a Russian company the leading provider of small business solutions carried out its aggressive operations here (as everywhere in the CIS markets).
Regarding 1Ñ, it is worth noting the growing popularity of integration of the ERP-solution, offered by 1Ñ, with the PDM-solution developed by a Russian company Appius.
On 30th October the Ritz-Carlton hotel in Moscow was the venue for «Industrial Forum SAP 2007: From the First Person, For the First Persons».
Oracle TechForum in Moscow get together 1200 Russian experts.
4. Russian providers of CAD/PLM solutions.
On the English version of www.isicad.ru we place the news about four important Russian CAD/PLM companies ASCON, TopSystems and ADEM, as well as à provider of an original and inexpensive PDM-solution with broad PLM-functionalities the Technologics company. In this digest we briefly present the first two companies.
ASCON gains the highest revenue among the Russian CAD-companies, offers a complete line of basic PLM-solutions, and has developed a distinctively wide reseller network, including considerable number of representative offices abroad. ASCON continuously advances its aggressive marketing: the company publicly celebrated its 15th anniversary, organized a large-scale All-Russian forum, and an Internet-conference of its top-managers. In its advertising campaign ASCON strongly emphasizes the simplicity of its solutions: we even caught a glimpse of their comparison with the plainness of the army boots. Incidentally, at the PLM Forum press conference the Director of Dassault Systemes Russia, Laurent Valroff said that along with its well-known main global competitors, DS sees ASCON as a serious competitor in Russia.
The front cover of the current issue of CAD/CAM/CAE Observer the leading Russian PLM-magazine displays the headline «Our Success Formula PLM and ERP integration», presenting an article/interview «Project Success Formula (VAGONMASH and ASCON). Owners need effective system of management rather than indispensable people». A report about this experience of project implementation will be rendered at isicad-2008.
Another leading Russian developer TopSystems also distributes a broad range of PLM-solutions. Their mainstream CAD-products possess advanced functionality, based on some well-thought mechanisms of parametric design. The company?s slogan is «Advanced solutions for advanced engineers». In August, TopSystems also marked its 15th anniversary and announced the release of already 11th version of its flagship product the T-FLEX CAD system. At the contest «The product of the Year» , organized as part of the SofTool-2007 exhibition, the T-FLEX CAD/CAM/CAE/CAPP/PDM program package took the first place in the CAD nomination. On 31st October TopSystems, supported by Intel, organized a conference in Moscow under the slogan «Russian CAD Technology to Russian Companies».
5. CAD classification from Cyon Research and CAD prices in Russia
A Russian-language summary of the recent Cyon Research review A Fresh Look at the Value-Proposition of High-End MCAD generated considerable interest among our readers. We found it important to compare prices of western and domestic products: to a certain extent we did it in the article «CAD prices in Russia are correct but unlikely to affect market behavior». The article contained the following Table:
||Cyon Research, $/RUB
||in the RF, RUB
| T-FLEX CAD
| ÀDÅÌ CAD
One of the conclusions was that current CAD prices are not high for Russia and the price difference is not an important factor affecting product choice. In its turn, the publication led to a discussion whether comparing prices for the products with significantly different functionalities is a correct approach
6. Digital Prototyping, PLM, taikonauts, and isicad-2008
Some recent Autodesk statements (direct and indirect) contrast two fundamental concepts of «digital prototyping» and PLM: see, for instance, the article «Digital Prototyping Trumps PLM» and, certainly, the famous declaration made by Autodesk CEO Carl Bass: «We Don't Need PLM».
Isicad approached some of the most renowned PLM experts on the global market Francis Bernard (ParallelGrpahics, former CEO Dassault Systemes) and Kennet Amann (CIMdata):
It is obvious that Autodesk is trying to move from CAD/CAM to PLM, like DS has done in the past years. And they have to say it, in order that the Autodesk customers stay with Autodesk by moving from 2D to 3D, then from 3D to PLM.
Digital prototyping is the core of PLM. It means that you can create a digital simulation of the real world , taking into account
- (1) the engineering of the product ie the DMU,
- (2) the knowledgeware capabilities which allow to store and manage the IPs,such as the automatic generation of shapes according to new parameters,
- (3) the engineering optimisation through the analysis of the product behavior in the environment, such as the ergonomics, the aerodynamics, the structural deformations under constraints, the vibrations, the noise,etc
- (4) the manufacturing engineering, including plant design,process planning, manufacturing simulation and assembly simulation,
- (5) the manufacturing optimisation taking into account the product materials and the physics of stamping,welding,rivetting,composites,etc
- (6) the maintenance support including assembly/dissassembly procedures description, structure and repairs management,
- (7) the collaboration support between the users as well as between the entreprises collaborating on the same project.
As you can see, this is a very vast set of capabilities which must be integrated. Personnally, I have been adressing with DS mainly (1),(2),(4) and (7) with CATIA,DELMIA,ENOVIA/SMARTEAM. Also SIMULIA adresses part of (3). With PG I adress (6). And with ESI I adress part of (2), (3)and (5).
All of this is virtual/digital
everybody does digital prototyping
The concept of «digital prototyping» has existed for many years. In fact, as part of the evolution of PLM, «virtual» and «digital» prototyping methods and technologies have been developed by many of the PLM solution suppliers.
Virtual/digital prototyping simply means being able to fully develop, view and simulate a product using digital applications such as MCAD design tools, e.g., Inventor, NX, CATIA, PRO/E etc.
PLM incorporates virtual/digital as part of the overall product design and analysis lifecycle. All major MCAD PLM solution providers support this capability.
From the isicad prospective, the statement made by the Autodesk management on democratization / mass appeal of digital prototyping is a veiled market signal that the company has started developing a PLM-solution for the users of Inventor. In the attempt to distance themselves from the high-end solutions provided by Dassault, Siemens and PTC, the Autodesk management reject the PLM term as such. In this connection, it would be appropriate to remember the first Russian cosmonaut Yuri Gagarin, who accomplished the first human orbital mission around the Earth. The second person to travel into space, an American Alan Shepard, who, as it is well known, completed only a suborbital flight, was called an astronaut. However, both cosmonauts and astronauts (and even recently appeared taikonauts) successfully contribute to the common cause studying and exploring the space, and opening new horizons for the mankind. Autodesk, with its huge AutoCAD and Inventor user base, has remarkable capacity to become in due course a PLM market leader and popularize the concept (regardless of its «label») among all sorts of interested persons. The editorial team of the isicad.ru portal welcomes such trend of events, as customers always benefit from increased competition. We trust that isicad-2008 will also contribute to such market development. Apropos, one of the key speakers at the forum will be an Autodesk representative Pavel Bruk with the report «Digital Prototype. The Autodesk Solution for Manufacturing».
7. Intel, Siemens and Schlumberger would like to become residents at the Novosibirsk Technopark
A general course towards developing innovative technologies, declared at the governmental level, inevitably crystallizes into the projects like the Novosibirsk Technopark, whose construction will start in the autumn 2007 .
Estimated project financing is nearly 1 bln USD (of which more than 80% is provided by private capital). It is assumed that after the construction works are completed (by 2012), Technopark will have around 200 resident-companies, whose main areas of business will be nanotechnology, information technology, biomedicine, power electronics, and instrument engineering. Today more than 80 innovative companies have confirmed their interest to become Technopark residents, including research units and branches of transnational corporations Intel, Schlumberger and Siemens. Now it is high time for PLM providers to think of such an opportunity, as many of them have been successfully working with software companies from Novosibirsk for a long time.
8. Three isicad projects
Currently isicad is implementing three projects: the isicad.ru portal, multi-vendor PLM+ERP Forums, and publication of the «PLM+ERP Encyclopedia»(scheduled as annual).
The flow of materials for publication on the Russian-language portal www.isicad.ru/ru is continuously increasing and currently hit the level of around 100 press releases, articles, reports, etc. per month. Site-visiting statistics steadily goes up; the range of companies publishing their materials is expanding. We figure on that the English version of www.isicad.ru will gradually become the means of informing our English-speaking readers about important players and events on the Russian market. Regular publication of the news digest will also serve the purpose.
It is expected that the only Russian multi-vendor forum isicad, which will be held on 4-6th June 2008 in the Novosibirsk Scientific Center, will be attended by practically all important vendors, distributors and integrators that are active on the CIS market. At the same time, representatives of hundreds of industries and companies, operating on the rapidly developing Siberian market, will also take part in the venue. Experience of the two previous isicad forums in 2004 and 2006 proved efficiency of such events. See, for example, CIMdata comments regarding isicad 2006.
Next project: isicad is publishing the first ever PLM+ERP Encyclopedia a reference and educational manual for manufacturers, design bureaus, commercial organizations, universities, etc. The Encyclopedia will give basic information on the most popular solutions in PLM, ERP and adjacent components of informational environment of a modern enterprise; it will include articles about available commercial solutions as well as characterizing prime examples of technology application. Please refer to www.PLMpedia.org and cimdata.com/newsletter/2007/44/04/44.04.04.
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