PTC, leading technology solutions and design software provider, is investing aggressively in its service lifecycle management (SLM) area of business, where it believes customers can gain high profits. This is the software, which helps in servicing a product after it is sold, where more profits are said to be gained.
Robert Kocis, Senior Divisional Vice President, Asia Pacific Sales & Distribution, PTC and Rafiq Somani, Country Sales Manager, PTC India, spoke to us on the company's performance and its future in India. With a host of acquisitions in recent times, PTC is confident that the products it offers to customers are the freshest and posses the latest in technology, and says that this is credited to the company's product development background.
Right from the concept design, to the finally manufactured product, down to servicing, PTC is one of the only company that has a footprint in the entire development lifecycle of a product, said Somani. While most companies only offer computer-aided design (CAD) or product lifecycle management (PLM) solutions, PTC offers complete services that range across four areas of CAD, PLM, application lifecycle management (ALM) and SLM.
While CAD and PLM are predominantly employed by customers in India, the growth for the ALM and SLM products is seen increasing here, just like in international markets, Somani added. The main reason for this, he said, is that Indian companies are now competing globally, with quality being of utmost importance. Quality in manufacturing and design is important, but servicing of products and the quickness in servicing is the real quality check that companies want to achieve. With the help of PTC's SLM products, companies can provide diagnosis of the issue with a product, identify parts required, and swiftly contact the closest warehouse for replacement parts.
This provides swift and high quality servicing, which is where companies see most of their bottom-line profits. User experience is the factor that differentiates the quality of products within competitors, and this is what ALM is useful in bringing about, Somani said. Companies competing to provide exclusive user experiences to customers will directly influence the growth for ALM products.
LARGE AUTOMOTIVE FOCUS
PTC accounts about 45 % of its business in India to the automotive sector, and although its products are common for all industries, it considers certain feature functionalities of its products as unique. A feature that the company claims to have brought first to the industry is parameterisation to 3D technology. This helps when a company looks at making a series of variants of a complex product, Somani said. One example to illustrate this could be of a company that has developed a petrol engine. Once the basic engine is built, the process of making a series with various displacements, and different number of cylinders, becomes easier once the initial product is parameterised.
Behavioural modelling, where real-world design requirements are embedded in digital model and Mathcad engineering calculation software are unique applications offered to the automotive industry. However, the company's highest selling product in India, and globally, is Creo Parametric. The low pricing of this product makes it possible for small and medium-sized companies to use the product.
PEEK INTO THE FUTURE
With relation to the Indian automotive sector, PTC plans to achieve a growth rate in double digits. The company further plans to invest in this sector so as to gain profits in similar numbers. This is further exemplified by the fact that PTC expects its revenues from SLM to be as much as its revenues from PLM. One additional reason for the high expectation from the SLM business to perform so well is that PTC's SLM can be added to a company's system, even if they are using a competitor's PLM. It is not necessary for a customer to move all their technology to PTC. With automotive companies seeing the solutions provided by ALM and SLM and their speciality, the plan would be to, eventually, make them move their systems completely to PTC, Somani said.
One area that PTC is looking to innovate further in is bringing mobility to its products. It feels that even though a few apps are present for its products, more projects to enhance the feature of mobility into its products, especially with relation to ALM and PLM, are taking place. Kocis noted that a customer should have the ability to view a product, note changes that are needed, and send the same to his designers, all on the go.
PTC has three R&D facilities in India – Pune, Hyderabad and Gurgaon, with over 1,000 engineers that account for half of the global R&D staff. The R&D department started with 200 employees and has grown to a large number due to the advantage of cost and quality, Somani said. Some of the customers of PTC in India include OEMs such as Tata Motors, Ashok Leyland, TVS, Royal Enfield, Eicher and TAFE, and suppliers such as Sona group, Pricol, Lucas-TVS and Sundaram Clayton.
Text: Naveen Arul