ARC WHITE PAPER
By ARC Advisory Group
APRIL 2016
OpenText EIM Solutions Help Enable the
Information-Driven, Connected
Manufacturing Enterprise
Executive Overview ...................................................................... 2
Connected Manufacturers Need a Separate EIM Platform ................... 3
Product Design and Engineering ..................................................... 5
Information Exchange Across the Supply Chain ................................ 7
Asset Lifecycle Management .......................................................... 8
Retailer and Distributor Support ................................................... 10
Aftermarket Products and Services ............................................... 11
OpenText EIM Enables Connected Manufacturing............................ 13
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY
OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
Executive Overview
Manufacturing has changed dramatically over the last decade. Developments in IT and the internet have enabled companies to transform from
regional manufacturers into global, connected enterprises that provide better products at lower costs. These products are designed and engineered
by collaborative teams in design centers around the world to take advantage of unique talent pools. Materials are sourced from global suppliers
and contract manufacturers in countries with labor and logistics
advantages. Products are configured, sold, and serInformation management is the key
enabler of modern, information-
viced in global markets by a complex network of
dealers, distributors, and logistics providers.
driven, connected manufacturing
enterprises.
Transforming a company into a connected manufac-
This paper establishes the required
turing enterprise requires new processes, new skills,
information management capabilities
through an analysis of five critical
product lifecycle stages.
and investments in new technology.
Most im-
portantly, the organization needs to establish an
It concludes with a review of
information management platform to ensure that
OpenText’s Enterprise Information
every entity in the manufacturing ecosystem has the
Management (EIM) solutions with
information needed to complete work on-time and
respect to these needs.
on-spec.
Like traditional manufacturing, success
of a connected enterprise depends upon smooth
coordination across all process steps, from design through aftermarket
products and services. But, the distributed nature of global, connected enterprises amplifies the impact and cost of every misstep.
Information drives the connected manufacturing enterprise ecosystem.
Every partner requires timely access to complete, accurate, and consistent
information to meet the stringent performance expectations of global customers.
The enterprise also relies upon the availability of trustworthy
information to evaluate and improve ecosystem performance.
This paper discusses the information requirements for an effective information-driven, connected manufacturing enterprise. Five critical lifecycle
phases are reviewed: product design and engineering; supply chain; manufacturing; retailers and distributors; and, aftermarket products and services.
It concludes with an analysis of OpenText’s Enterprise Information Management (EIM) solutions in light of these requirements.
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
Connected Manufacturers Need a
Separate EIM Platform
Manufacturing is complex, involving an array of design, engineering, production, distribution, and service activities. Companies have learned that
comprehensive, end-to-end processes are essential for operational efficiency
and product quality and this has led to extensive investments in business
process reengineering programs and software applications like enterprise
resource planning (ERP), product lifecycle management (PLM), and supply
chain management (SCM). While this has generated many benefits, it has
also reduced organizational agility, which is vital for success in today’s
global economy. Survival demands that companies find ways to overcome
these limitations while preserving the benefits.
The Information-Driven, Connected Enterprise
End-to-end business processes drive higher efficiency with task automation
and seamless information flow across all business activities. Manufacturing
applications support this through tight integration of related processes and
shared information stores. In most cases, this approach implicitly assumes
static business processes and fixed work groups, which limit the company’s
ability to take advantage of opportunities to improve performance. Every
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
change necessitates software modifications that increase costs and delay
benefits, so such organizations struggle to keep pace with new competitors.
To compete in today’s global economy and respond rapidly to competitive
threats and new opportunities, connected manufacturing enterprises need
end-to-end business processes and applications that assume a dynamic, fully-connected network of global partners.
New partners have to be
onboarded quickly and easily and those partners have to be able to use
their own best practices.
Separation of information management and business process software is
fundamental for an effective, connected manufacturing enterprise. Every
partner needs trustworthy information, but access methods have to be flexible to enable a broad base of partners. Partners also have to be able to
share information easily with other entities in the connected manufacturing
enterprise. Yet every exchange must be tracked and stored for overall control, governance, and regulatory compliance. Smart manufacturers will
also anticipate the need to support new information technology like wearable devices, 3D printers, and the Internet of Things.
EIM Impacts Every Manufacturing Process
A connected manufacturing enterprise information management solution
has to support activities throughout the complete life cycle of manufactured
products and the facilities used for production and distribution. While
lifecycle activities vary by industry, the following figure shows some of the
common activities that are involved with product design, manufacture,
sales, and support services.
Information is critical for every lifecycle activity. The following sections
discuss some of the key information needs of five different lifecycle activities (highlighted in green in figure): Product Design & Engineering, Supply
Chain Enablement, Plant Maintenance & Asset Management, Retailer /
Distributor Engagement, and Aftermarket Service & Support. These information requirements vary significantly and demonstrate why manufactures
need an information management platform with comprehensive, broadbased capabilities.
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
Typical Product Manufacturing Lifecycle
Product Design and Engineering
The lifecycle of a manufactured product begins with information created in
the design and engineering phase. Design departments rely on product
lifecycle management (PLM) solutions to build complete digital representations of their products and this 3D digital information is used by many
different departments in the manufacturing enterprise. Providing a centralized digital information ‘hub’, a platform that is available on a 24x7 basis
and accessible by any type of device enables convenient access by partners
on a worldwide basis.
Modern PLM solutions support information sharing with production
groups and the products they use to program machining centers. Some also support the development of prototype models utilizing the latest 3D
printing technologies. But today’s need for design information has expanded far beyond these traditional production activities. For example,
marketing departments are using high-quality 3D rendered images or 3D
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
animations as part of advanced promotional campaigns for new products.
Aftermarket service and support departments also need links to design
information to populate online support sites and develop videos that show
how to repair and maintain products.
Successful new product introductions increasingly depend upon design information that is easily accessible from anywhere
in the world at any time. This allows everyone within the connected manufacturing enterprise -- whether internal to the
company, outside suppliers, or third-party contract designers
and manufacturers -- to have information they can trust. Furthermore, this information has to be securely archived to
support the growing need for full traceability of every component in every product. As recent events have shown, products
that fail or cause harm to a user can create incredibly expensive
recall situations for manufacturers. This requires trustworthy
access to design information for an extended period, typically
ten to twenty years. A centralized archiving process for all design-related information can help companies resolve recall issues quickly
and maintain consumer confidence. Governance, risk, and compliance initiatives introduced by governments around the world also require secure
archiving.
Enterprise information management systems that meet the needs of product design and engineering will:

Provide a single version of truth for all product design and engineering information

Offer extensive archive and version control capabilities, irrespective
of file type

Automate review and approval processes for all product design related information

Enable sharing, collaboration, and mark-up of design information
from leading PLM solutions and other business applications

Offer a secure platform for exchanging design information between
internal and external users
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise

Allow other departments such as marketing to leverage design related information
Information Exchange Across the Supply
Chain
Efficient supply chains are essential for an effective connected manufacturing strategy. Digital information and electronic business transactions have
to flow seamlessly throughout the supply chain. Electronic data interchange (EDI) has been used for many years and remains key to the
smooth operation of today’s supply chains. Whether supporting
just-in-time production operations in the automotive industry or a
high-tech reverse logistics process, access to a single, common B2B
platform is critical.
Supply chains also have to be resilient and manufacturers need to
ensure that their information management system supports this
need. Integration of new partners, mergers and acquisitions, and
changes in governmental regulations have to be addressed quickly
and smoothly without disrupting ongoing operations. Changing
demand patterns and disruptions due to natural disasters and political instability require similar agility.
To ensure efficiency and resiliency, companies have to make sure
that their enterprise information management platform supports
rapid onboarding of new partners, varying B2B communication protocols,
and unique B2B document standards. Addressing the multitude of regional
compliance regulations put in place by governments around the world is
also essential. This includes requirements like adhering to electronic invoicing regulations across the 28 member countries of the European Union
and supporting required assessments to ensure that supply chains are ‘free’
from conflict minerals. Manufacturers will also need to think about how
they integrate their B2B platform to back end ERP, transportation management systems (TMS), and warehouse management systems (WMS).
Significant operational and cost benefits are available when B2B transactions flow seamlessly between back end enterprise systems and external
trading partners, such as suppliers, financial institutions, contract manufacturers and third-party logistics providers.
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
Ensuring that every trading partner, irrespective of size, location or technical capability, can exchange appropriate business information and
transactions electronically is another critical issue. In this regard, manufacturers may want to consider a cloud-based enterprise information
management strategy to simplify the management of the B2B environment
and gain the flexibility and scalability to support changes in the market and
business strategies.
To support all these supply chain requirements, connected manufacturers
need an enterprise information management solution that will:

Simplify how the manufacturer connects to and engages with global
trading partners

Help mediate between various forms of B2B documents and communications protocols

B2B-enable any size of company, irrespective of technical capabilities or IT infrastructure

Provide seamless integration to back end enterprise systems such as
SAP and Oracle

Support regional compliance initiatives such as electronic invoicing
and conflict minerals

Offer trading partner analytics capabilities for improved visibility
across the supply chain
Asset Lifecycle Management
Maintaining high availability of production assets has never been more important to manufacturers.
Facility
costs
have
skyrocketed
and
manufacturers need to maximize the use of every production line to
achieve return on investment (ROI) goals. The shift to customized products
and new manufacturing strategies like Lean and Just-in-Time drastically
reduce inventories and increase the importance of predictable production
schedules. The impact of any disruption can ripple through supply chains
and undermine customer confidence.
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
Studies by ARC Advisory Group and other researchers show a direct relationship between asset availability and the quality and accessibility of asset
information. Studies have shown that the cost of poor asset information
management can exceed 1.5 percent of a plant’s revenues in some industries and this doesn’t even consider the impact that poor maintenance can
have on safety and environmental compliance.
To ensure safe and reliable assets, maintenance teams need access to a wide
range of digital information associated with the machinery and all supporting systems. They also need to be able to share information, like
drawings, documents, pictures, and videos with onsite contractors and spare parts suppliers. Furthermore, the organization has
to ensure the availability of this information using a variety of
devices like tablets, smartphones, and wearable devices, on a 24x7
basis, regardless of where a person may be located in the plant.
The need for an organized information management strategy will
expand in the future as manufacturers adopt new Industrial Internet of Things (IIoT) strategies for equipment maintenance.
This will increase the number of sensors on production equipment and enable organizations to implement more predictive
maintenance strategies that identify problems before they occur.
Big data and analytics are central to this approach and will lead to
people requiring access to additional data, analysis tools, and alerts.
An effective enterprise information management solution for asset lifecycle
management will:

Provide a complete 360-degree view of asset, process, and performance data

Improve quality and consistency of asset information and work instructions

Provide remote, mobile access to any plant-related asset information

Enable higher asset uptime and reliability through extensive analysis of equipment data

Help enable predictive maintenance procedures to improve equipment availability
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise

Enable companies to minimize health, safety, and environmental
incidents and archive information to satisfy compliance requirements
Retailer and Distributor Support
Today’s connected consumer is driving many omni-channel retail strategies. Ensuring that consumers have a consistent digital experience is
essential for manufacturers and their retailer and distributor partners.
There are two key areas in which a centralized approach to managing digital information can help consumers engage with a
company.
Firstly, consumers are looking for an engaging and consistent web
experience, both pre-sale to research new product information,
and post-sale, where customer service portals need to be simple to
use and enable consumers to rapidly find the information they
need.
Secondly, when making purchases in a “brick-and-mortar” retail
store environment, consumers need access to product videos, animations,
and
high-resolution
images
of
the
product.
Manufacturers need a seamless way to make this digital information available to a retail or distribution network. This can be particularly
challenging for manufacturers selling into multiple markets around the
world and engaging with a globally dispersed retail or distribution network.
Relative to websites, the customer experience needs to be consistent across
all platforms, from PCs to tablets and smartphones. Developing an engaging website that utilizes the latest web development tools can make or
break a consumer’s decision to purchase goods. To support their retail
networks, manufacturers need to provide a fast and secure method for retailers to access and download all digital information related to a product.
For example, a consumer electronics retailer may need to download the latest product video for use at a major retailer point of sale booth. A retailer
may also need PDF brochures, training manuals, or even high-resolution
graphical images for screen printing on display boards. Cataloging and ar-
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
chiving all this information in a digital asset management (DAM) environment can help streamline the way a manufacturer works with a retail
channel.
A centralized approach to managing all digital assets ensures that all value
chain participants, including advertising agencies, video production and
graphics companies can engage collaboratively with the digital assets associated with a product.
To meet the needs of dealers and distributors, manufacturers need an enterprise information management platform that will:

Ensure all product information is held within a digital asset management environment

Provide a common, process-based platform to integrate information
with back end business systems

Offer a secure, cloud-based environment for exchanging large files,
like videos and animations

Enable online information assets to be created and managed
through a common web platform

Allow customers to engage with the business in a consistent manner

Support multi-format viewing tools that allow any type of digital
file to be viewed on any device
Aftermarket Products and Services
Manufacturers of products, whether aircraft, vehicles or consumer electronics devices need a service and support infrastructure with broad capabilities
and high availability. Excellent product service and support helps companies maintain and improve customer satisfaction levels. In many cases, like
jet engine sales, a manufacturer can make more money through maintenance over the lifetime of the engine than on the original sale.
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
Regardless of where a field service engineer is working, he or she needs
immediate access to product information. In today’s world, this
can include product and spare part information in a variety of
formats including document files, photos, and videos. Being able
to offer access to this kind of information is no longer an option, it
is a condition of doing business. In addition, being able to archive
all service records and test or compliance certificates is critically
important for traceability, especially in a major recall situation.
Being able to remotely access a web-based spare parts ordering
portal is likewise becoming critically important in almost all industries. Field service engineers need to be able to order spare
parts and have them shipped directly to the place they are needed.
New technologies like the Industrial Internet of Things will require similar capabilities. As the concepts of remote maintenance
advance, sensors with WiFi connectivity will automatically diagnose problems, alert service centers, and issue orders for needed parts so
that they are on-site before the service person arrives. These kinds of advanced developments will drastically increase asset availability and reduce
the costs of service calls.
To enable first-class service, manufacturers need an enterprise information
management solution that:

Allows any type of digital file, including 2D/3D drawings, to be
viewed and marked up remotely

Allows service records to be archived to ensure full traceability of
service history and ensure regulatory compliance initiatives are met

Provides predictive analytics tools to optimize maintenance procedures and reduce downtime

Provides B2B web portal tools to simplify and streamline replacement parts ordering processes

Improves customer satisfaction levels through improved access to
digital information

Provides process management tools to manage product lifecycle
support activities
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
OpenText EIM Enables Connected
Manufacturing
Applications like ERP, PLM, and SCM help manufacturers optimize individual business processes within finance, production, design, and
distribution. But this is not enough for a successful, connected manufacturing enterprise. Today, manufacturing organizations are driven as much by
information as they are by workflow. They need information access and
sharing unencumbered by departmental boundaries and static business
process assumptions.
Implementing manufacturing applications on a
common, enterprise-wide information management platform is essential to
support the requirements identified in this report.
OpenText EIM Meets the Needs of Manufacturers
OpenText, a leader in information management, has an integrated portfolio
of enterprise information management products that addresses the complex
needs of today’s connected manufacturing enterprise. This includes Content, Process, Business Network, Experience, and Analytics solutions.
OpenText Enterprise Information Management Solutions
Content – this suite includes content management, records management,
and archiving. It allows companies to manage all unstructured information
regardless of where it originates, while simultaneously enabling companies
to satisfy all compliance requirements and ensure that information is available regardless of age and location.
Process – the core of this suite is the OpenText Cordys BPM engine, which
enables organizations to address complex process automation and case
management needs that arise across the partner ecosystem. This is augmented with a variety of products that enable companies to manage master
data, integrate applications, and interact with information resources
through tablets and mobile devices anytime and anywhere.
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
Business Network – enables companies to connect and exchange electronic
documents with trading partners around the world. At the core is the GXS
B2B platform, Trading Grid, that OpenText acquired in 2014. Trading Grid
is the world’s largest cloud-based B2B integration platform.
OpenText
complements Trading Grid with solutions for secure mail, secure MFT, and
FAX-to-email that can be used to integrate even the smallest manufacturing
partner.
Experience – this suite includes tools to manage the content used to create
websites for product sales, aftermarket portals, etc. The suite also provides
digital asset management tools to ensure that all types of multi-media files
can be archived in a central repository.
Analytics – these tools enable companies to recognize and understand
trends in the information flowing across the enterprise, such as consumption patterns, production rates, etc. This can increase the agility of the
manufacturing enterprise and help it optimize performance of business exchanges among ecosystem partners.
OpenText EIM is an Appropriate Solution for Informationdriven, Connected Manufacturing Enterprises
Based on our ongoing discussions with OpenText executives, ARC believes
that OpenText EIM provides an appropriate information management solution for modern, connected manufacturing enterprises. It is designed as a
standalone information management platform that can be implemented as
a cloud-based solution. This positions it well for use as a global information hub. As many manufacturing organizations already use OpenText
EIM in conjunction with SAP and Oracle solutions, integration with existing manufacturing applications should not be an issue. At the same time,
users can interact with critical business information independently of underlying manufacturing applications. This should provide the flexibility to
rapidly adjust business partners and processes as new threats and opportunities arise.
For further information on OpenText’s EIM solutions for manufacturers,
please visit www.opentext.com/manufacturing.
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OpenText EIM Solutions Help Enable the Information-Driven, Connected Manufacturing Enterprise
Analyst: Sid Snitkin
Editor: Paul Miller
Acronym Reference: For a complete list of industry acronyms, please refer
to www.arcweb.com/research/pages/industry-terms-and-abbreviations.aspx
API
Application Program Interface
ERP
Enterprise Resource Planning
B2B
Business-to-Business
IT
Information Technology
BPM Business Process Management
PLM
Product Lifecycle Management
CPG
RFID Radio Frequency Identification
Consumer Packaged Goods
CRM Customer Relationship
Management
DAM Digital Asset Management
EAM Enterprise Asset Management
EIM
Enterprise Information
ROA Return on Assets
SCM
Supply Chain Management
TMS
Transportation Management
System
WMS Warehouse Management System
Management
Founded in 1986, ARC Advisory Group is the leading research and advisory
firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations
management, and automation systems makes us the go-to firm for business
and IT executives around the world. For the complex business issues facing
organizations today, our analysts have the industry knowledge and first-hand
experience to help our clients find the best answers.
All information in this report is proprietary to and copyrighted by ARC. No part
of it may be reproduced without prior permission from ARC. This research has
been sponsored in part by OpenText. However, the opinions expressed by
ARC in this paper are based on ARC's independent analysis.
You can take advantage of ARC's extensive ongoing research plus experience
of our staff members through our Advisory Services. ARC’s Advisory Services
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and directions for their organizations. For membership information, please
call, fax, or write to:
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