Modeling PLM ROI

MatrixOne unveils tool for projecting return on investment in product lifecycle management apps

Westford, MA  July 15, 2002  MatrixOne, a provider of collaborative product development solutions, this week rolled out a new tool designed to provide companies with evidence of the time and cost savings they can expect to receive by leveraging the provider's portfolio of product lifecycle management (PLM) solutions.

MatrixOne said its PLM Results Modeling Tool addresses a growing market need to evaluate and project the benefits of information technology prior to and after purchase. According to the provider, Results Modeling Tool allows companies to receive comprehensive projections of their achievable return on investment (ROI) from a PLM solution, with the projections based on a research-derived model of the results achieved by MatrixOne customers in a range of industries. Also, a subject company gets results based specifically on its stated improvement goals.

MatrixOne co-developed the new tool with the Hurwitz Group, an industry research firm that specializes in ROI analysis in support of IT purchase justification. Hurwitz conducted interviews with MatrixOne customers to formulate a model of actual results achieved with the provider's solutions, and the resultant model of real-world results forms the foundation of the Results Modeling Tool. 

The tool enables prospective and existing MatrixOne customers to receive an analysis that encompasses the issues and cost drivers in 14 areas, such as new product introduction process costs, inventory costs and time-to-market delay costs. By exposing the cost drivers and opportunities for improvements, and by allowing a company to enter its own improvement goals, the tool can help an organization determine where its needs and opportunities lie and map the appropriate solution from MatrixOne.

The tool can help a company to see a supportable projection of the ROI it can achieve with a MatrixOne solution and see its own projections in comparison to the research findings. This allows a subject company to benchmark its goals against other MatrixOne customers, the solution provider said.

"The unique ability of the Results Modeling Tool is that it enables companies to plan PLM solutions in less time, with a more comprehensive view of achievable results than ever before," said Mike Segal, senior vice president of customer success at MatrixOne.

In addition its collaborative product development solutions, MatrixOne offers supplier relationship management and program management applications.