CIMdata PLM Industry Summary Online Archive
24 April 2012
Implementation Investment
Johnson Controls Standardizes on Teamcenter for Global Product Collaboration and Process Integration
Tier 1 Supplier's Selection Reinforces Siemens PLM Software's Teamcenter as the Global Automotive Industry's Leading PLM System Siemens PLM Software, a business unit of the Siemens Industry Automation Division and a leading global provider of product lifecycle management (PLM) software and services, today announced that the Automotive Experience business unit at Johnson Controls has selected Teamcenter(R) software as its corporate standard for collaboration and process integration across its entire global product development operation. With more than 200 plants worldwide supplying product, Johnson Controls is a top-ten, tier one automotive supplier and the industry's largest seating supplier. The company selected Teamcenter, the world's most widely used PLM system and the number one system in the global automotive industry, after a comprehensive evaluation involving Johnson Control's incumbent PLM supplier and another well-known PLM software vendor.
"As a tier one supplier to the global automotive OEMs, we needed a scalable, responsive, and comprehensive PLM solution," said Sanjay Rishi, Group Vice President -- Information Technology, JCI. "Having accurate and timely information is critical to our Product Development process. Siemens PLM Software brought forward a compelling solution with Teamcenter to facilitate a collaborative decision-support platform that ensures a single source of knowledge to manage our CAD data."
A strong industry trend
To keep pace with the increasing expectations of the automotive consumer, the growing sophistication of today's vehicles and the rapidly changing landscape in PLM technology, several major automotive OEMs and suppliers have been forced to evaluate the systems they currently use to design and develop their products. Johnson Controls began an evaluation of its existing product a year ago as part of its long-term strategy to grow its business and maintain its position as one of the global automotive industry's premier suppliers. As a result, Teamcenter will be deployed in several phases over the next few years to facilitate a seamless replacement of their existing system.
"Siemens PLM Software is on an impressive run over the past 18 months in the global automotive industry," said Joe Barkai, research vice president for IDC Manufacturing Insights' Product Lifecycle Strategies. "After two impressive wins recently at major OEMs -- Chrysler and Daimler -- and now at one of the world's largest tier one suppliers, they are continuing on a strong industry trend to implement a unified enterprise-wide PLM system to govern all product lifecycle activities. Moreover, the strategic nature of this type of decision is predicated not only on technical product capabilities, but also, and as importantly, on a strong long term strategic partnership with the vendor."
Open business model fuels success
Johnson Controls' decision to adopt Siemens PLM Software's technology highlights the importance of an open PLM business model to enhance innovation and manage increased sophistication in a multi-vendor information technology environment. It also serves as another example of the scalability of Siemens PLM Software solutions to match the diverse deployment requirements of major automotive OEMs and suppliers.
"We are pleased to work with exceptional companies such as Johnson Controls and help them build the best products by leveraging our technology and industry expertise," said Chuck Grindstaff, president and CEO, Siemens PLM Software. "The great success we have experienced in displacing legacy systems in the automotive industry is due in part to our ability to seamlessly integrate with our customers' diverse IT environments through an open systems approach. Our solutions allow customers to manage product data from our authoring tools as well as from competitors' products. That's why our software solutions are used by over 90 percent of the world's top 15 automotive OEMs. And with the unparalleled ability of Teamcenter to cost effectively start small and scale to tens of thousands of users worldwide, our customers know they have a future-proof architecture they will never outgrow."
Broad automotive leadership, unmatched momentum
Siemens PLM Software has experienced unmatched momentum and established a broad leadership position in the global automotive industry by adding several prominent automotive original equipment manufacturers (OEMs) and suppliers to its customer base over the past several years. Its technology is now used throughout product development and manufacturing by more than 90 percent of the world's top 15 automotive OEMs and nearly 90 percent of the top 25 Tier One auto suppliers. In fact, Siemens PLM Software technology is used in the development of more than 80 percent of all the vehicles produced worldwide by all 47 of the world's top OEMs ranked by the International Organization of Motor Vehicle Manufacturers (OICA).
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