Is SLM gaining momentum in China?
Development of the manufacturing services industry has been a significant trend in China. For many traditional manufacturing enterprises, their service sectors have became their new growth points. While service is turning a new means of profit, enterprises are starting to focus on management of service processes.
With this trend, service lifecycle management (SLM), a solution that is used to enhance enterprise services business management, has been introduced to Chinese enterprises.
At a recent press conference, a supplier of manufacturing solutions, PTC, showed strong confidence in this emerging solutions business. With the acquisition of Servigistics, a traditional supplier of SLM, PTC achieved a sales volume of $ 200 million for global SLM business and achieved a growth rate of 20% to 25% in first-quarter 2013.
Managing services momentum
Robert Kocis, PTC’s global senior vice president, said that throughout the entire strategic layout of PTC, SLM has been very important. Yucheng Shou, PTC’s global division vice president, China, also pointed out that SLM had maintained a good momentum of growth in Asia and China.
PTC’s viewpoint may show that SLM has begun to attract the favor of the market in China. Compared with other solutions that have had a very mature market, like computer-aided design (CAD) and product lifecycle management (PLM), the development of SLM is still in the growth phase. But in recent years the rapid development of manufacturing services will probably be a powerful factor for SLM growth.
For example, there are some shortages in the services sector of some domestic industries [in China]. Compared with production and research, enterprises pay less attention to management of service, quality, and maintenance.
There is a similar situation in enterprise informatization. Up to now, many enterprises have had mature solutions for product lifecycle management, supply chain management, and manufacturing execution management, while there is a lack in the service link.
Savings in services, quality, parts
However, in the current competitive environment, such enterprises have to face challenges from service systems, quality assurance, and spare parts management. Some enterprises even want to achieve the continuous improvement of service efficiency and service standards.
In this case, SLM, through its several major functional parts, can help enterprises achieve targeted improvements.
For the present, SLM still faces a long-term development and promotion process, but in the long term, huge demand will gradually progress, along with the development of manufacturing services.
– Ariel Zhang is an editor at CE China. Edited by Mark T. Hoske, content manager CFE Media, Control Engineering and Plant Engineering, firstname.lastname@example.org.
Savings through coordinated lifecycle management of services is an opportunity for manufacturers globally, not just Asia.
On the CE China website, read “SLM: Gaining Momentum in China?”