Posts Tagged ‘PLM alpha’

PLM Solutions, Openness and the Aras Business Model

September 12, 2012

MarcL: Aside from the Aras technology, maybe you can explain a bit more about the Aras business model and the Aras solution suite?

Peter Schroer:

Peter Schroer Aras CEO

Peter Schroer, Aras CEO & Founder

In 2007, Aras took a unique position in the PLM market by adopting an open source business model.   What we’re doing is bringing a Red Hat (NYSE: RHT) business format to the PLM market: get rid of the license costs and just offer enterprise subscriptions. It’s a big advantage for your company for a number of reasons:

Subscription-only gets rid of the big up-front PLM license cost (capex),

It reduces your Total Cost of Ownership (TCO) which means you get a greater ROI and achieve it faster, and

It’s a more balanced relationship where you’re not forced to take on disproportionate risk before you even start implementing.

How we make money

Aras distributes its software without license fees, and earns revenues from optional subscription packages that are similar to the maintenance contracts required by other enterprise software products except with significantly more benefits such as free upgrade services no matter how much you customize – I don’t know any other enterprise software companies that are doing this… it’s a major benefit for customers and commitment on our part.

The Aras subscription gets rid of PLM user and module license fees reducing the risk of acquiring an enterprise PLM system,       and it provides us/Aras with a profitable recurring revenue model.

What we provide OOTB

We have developed a number of solutions ourselves which are included in the initial download of Aras Innovator. These make up our out-of-the-box PLM solution suite.   Our OOTB solutions are similar in scope, scale and depth to the OOTB solutions that come with a Windchill or MatrixOne.  However, our PLM solutions are aligned tightly with industry standards such as ISO, PMI, and CMII. If these standards fit your company’s way of doing business, then the Aras is an “install this morning and start using this afternoon” PLM system.

How we offer more

The corporate community of companies that run Aras, users and partners, what we call the Aras community, has also developed dozens of other solutions on the same Aras Innovator platform framework, and your company is able to take advantage of these solutions for new PLM innovations, best practices and value added enhancements. These are available on the Aras project site if they are open source or from an Aras ISV partner if they are commercial solutions (meaning apps you have to pay for).

Why this all matters to you

The purpose of the Aras project site is to provide an online area where user-driven innovation can occur. We are creating an environment where companies like yours can post ideas, share best practices and take action to transform your business.

We are encouraging secure, self-sufficient collaborative development on PLM solutions because we believe that the next generation of innovation in PLM will come from people like you at the millions of companies around the world that use PLM software every day.

We also believe that your corporate processes are unique and changing constantly thru continuous improvement. And it’s those special practices that make your company competitive. Your company has to be in control of your own destiny and that’s what we are offering.

At the end of the day, what we’re doing is providing your business with a whole series of OOTB PLM solutions on an advanced PLM platform and we use a subscription-only format that’s more cost effective. And we’ve made it highly scalable, flexible and extensible so your company can innovate for new advantages over your competition… we think that just makes sense. In fact, we believe it’s a fundamental necessity and the future of global business.

For more info on this see Open PLM – The Future of Enterprise Product Lifecycle Management (free logon needed) and here’s some more about our commitment to an open business model and how Aras is Different or these videos from my presentation at the Aras ACE International conference.


What is a PLM alpha? …and are you one?

February 22, 2012

MarcL: Why ‘plm alpha’?

Tim O'Reilly

Tim O'Reilly, definition of an alpha geek

Peter Schroer:
Over the years, I’ve met with thousands of PLM users, project teams and architects. They’ve been from a wide range of industries and locations all over the world.
And while each person’s perspective on PLM is different, I find that there are some pretty consistent levels of experience. They’re either first-time PLM novices, experienced PLM veterans or this kind of alpha geek in PLM, sort of a “PLM alpha” for short.

As the name implies, these PLM alphas tend to lead the way. They set the standard by which other companies measure PLM success, and are usually the ones that think of new ways to transform their business.   

They’re always on the lookout for new innovations in the field, and are typically the first to apply new technologies.         PLM alphas are great to work with because they combine deep technical competence with an unusually high level of business savvy.

PLM alphas understand that technological breakthroughs occur constantly, and that uncovering the ‘right one’ can create a significant advantage over their competition. They’re not looking for yesterday’s system with some new screens or a dump truck load of unusable features.

Alphas want revolutionary innovation, the kind that typically comes from small groups of highly knowledgeable experts and results in an order of magnitude leap forward.

An alpha knows that advantage is achieved by using something that the other guy doesn’t have. They’re able to independently assess a technology’s merits based on capabilities. PLM alphas want to evaluate, test and validate for themselves because they want hands-on experience.

They want to know with certainty that a new technology is truly revolutionary, and they understand that no amount of customer reference calls will ever provide the depth of insight necessary.     

In fact,       by definition they don’t want something that a lot of other companies have because by that time it’s too late to get the upper hand.

PLM alphas also shy away from success stories, flashy brochures and pretty PowerPoints. They refuse to sit through endless sales presentations because they know that salesmen with slides and magic show demos typically sell snake oil.

They’ve been burned before and aren’t about to let it happen again. Actually, most PLM alphas that I know have been part of knock-down drag-out vendor fights, and have the scars to prove it.      A true PLM alpha takes pride in this.

Most alphas have led multiple PLM implementations, have experience with at least two of the major PLM systems on the market and understand the core capabilities better than the vendor’s own personnel.

They have been down & dirty inside the code. They know every in and out of the data model. They have reached the limits of the system and gone beyond.       They know where each PLM system breaks down, and where they will be forced to customize or compromise.

That level of competence, expertise, experience is typically accompanied by an attitude, a positive attitude that combines confidence and clarity with a healthy serving of curiosity. The PLM alphas that I know are always advocating for the business and taking on new challenges while simultaneously on the lookout for game changers.

They’re busy people. They’re a scarce resource that’s in-demand so they rarely have the time that they’d like to test drive each new technological advancement.

That’s why it’s ‘PLM alpha’       because this is the type of info that these people want to know about Aras and our PLM platform technologies and solutions.

If this sounds like you, we should have the kind of info you’ve been looking for        and if you’re not getting something specific or if you have questions, just post a comment and we’ll get you what you need.

Image from Fear.less

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