CIMdata PLM Industry Summary Online Archive
22 September 2004
Implementation Investments
Surface Specialties UCB Rolls Out Sopheon's Product Development System to Streamline Innovation Process; Implementation Extends to 12 Locations in 8 Countries
Sopheon announced that Surface Specialties UCB, a unit of the UCB Group and a world leader in the production of technically innovative resins, films and adhesives for surface applications, is deploying Sopheon's Accolade product development system in Europe, the United States and Asia. The effort involves 12 locations in 8 countries. Surface Specialties is using the system as the backbone for a structured, measurable innovation process aimed at improving productivity, increasing revenue generated from new products and deriving more value from its product portfolio. It has set a goal of achieving a 20 percent productivity gain in 2004 and a 10 percent increase annually thereafter.
UCB Group created Surface Specialties in 2003 by combining its existing chemicals and films divisions with the resins, additives and adhesives offerings obtained through its acquisition of the resins business of Solutia. The newly formed business unit subsequently decided to enhance its innovation process by implementing Stage-Gate, a widely used product development methodology. Surface Specialties sought to formalize and automate the process through the use of software technology. The organization conducted a competitive review of five product life cycle management (PLM) solutions and selected Sopheon's Accolade based primarily on ease-of-use, high user acceptance, its ability to strengthen portfolio management, and its unique compatibility with the Stage-Gate process. Following a brief pilot implementation, Surface Specialties completed roll out of the system in 90 days.
"The economic slowdown, our growth through acquisition and our focus on new applications areas together presented a clear opportunity to craft and deploy a product development system that would build on our legacy of innovation and reputation for technical excellence," said Jan Vandendriessche, global R&D director of Surface Specialties. "Results from the pilot and roll-out implementations have validated Accolade's unique suitability to our needs," said Bau Michelet, innovation process manager of Surface Specialties. "It met all of our objectives for increasing collaboration, creating transparency around project progress, supporting key go/no go, prioritization and acceleration decisions, and providing flexibility and user friendliness. We believe that Accolade will ensure the success of our introduction of a world-class innovation process."
Surface Specialties UCB sought a comprehensive framework that would allow it to manage its product development efforts from idea generation to post-commercialization. Its Accolade deployment includes a process modeler that automates the product development process and helps to ensure its successful implementation through built-in, best-practices content; idea management tools that capture, track and enable objective evaluation of product ideas; resource planning capabilities that allow executives and teams to clearly see where and when to allocate project resources; and portfolio management functionality that supports the early identification of product winners and losers.
While all companies must produce new products, specialty chemical companies must do so continuously to combat product commoditization and profit erosion. Specialty chemical producers spend between 4 and 8 percent of revenues on product research and development, while the typical manufacturer spends less than 3 percent. Studies have determined that best-in-class specialty chemical companies typically derive 35 percent of revenue from products introduced in the last five years compared to 20 percent for average companies within the industry.
"Innovation is the lifeblood of today's specialty chemical manufacturers," said Andy Michuda, chief executive officer of Sopheon. "Industry leaders such as Surface Specialties are evaluating and implementing Accolade not simply to enhance process. Most view our product development system as an integral part of a comprehensive, organizational commitment to building a platform that will sustain innovation, generate product portfolio value and drive growth. The fact that Accolade is now in use at 33 chemical and chemical-related companies around the world is testimony to the viability of a system that has been designed to directly impact the ability of such manufacturers to reach their top-line business goals."
Headquartered in Brussels, Belgium, the UCB Group is a world-class pharmaceutical and specialty chemical company employing about 12,000 people in its Pharma and Surface Specialties sectors. With a strong presence through operations in Europe, the United States and Asia, and agents, distributors and licensees worldwide, its products are sold in virtually every country. For more information, please visit http://www.ucb-group.com
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