Considerations when implementing an enterprise business transformation like Product Lifecycle Management software. Comment if you like it!

1. Global New Product Commercialization
Improvement
Topic : Product Lifecycle Management-
Implementing Successful Transformational Change
David G. Sherburne
I am a PLM simple license
Director Global R&D Effectiveness model advocate
and Engineering IT
David G. Sherburne Carestream Health Inc. Page 1

2. Topic Outline- The PLM Journey
• Snapshot of Carestream
• Globalization –The forcing
function
• Insights for setting up a
successful transformation
• Carestream Case Study
Take- A – Ways
•This presentation
•When to consider a PLM system
•How to form a PLM project and choose partners
•Some benchmark data for estimation purposes
•Opportunity to add some PLM friends to your network
David G. Sherburne Carestream Health Inc. Page 2

3. Carestream Health – Who We Are
An independent company with a proven
track record and $2.5 billion in revenue
A world leader in:
• Medical imaging … digital and film
• Healthcare information solutions
• Dental imaging and dental practice
management software
• Non-destructive testing
David G. Sherburne Carestream Health Inc. Page 3

4. Global R&D and Manufacturing
A global company with Manufacturing and R&D locations around
the world
Rochester,
New York
London,
Oakdale, United Kingdom
Minnesota
Berlin, Germany
White City, Shanghai, China
Yokneam, Israel
Oregon
Baltimore,
Maryland
Windsor,
Atlanta,
Colorado Xiamen,
Georgia
China
Ra’anana, Israel
Guadalajara,
Mexico
Paris, France
Toulouse, France
Manufacturing
R&D
Both Manufacturing and R&D
David G. Sherburne Carestream Health Inc. Page 4

5. The Business Challenges
Globalization was required to meet our business needs
• Desired access to talent
• Needed a balanced cost structure
• Desired a presence in emerging markets
Impact of globalization = more decentralized teams, more complex
environment
• Collaboration became more time consuming
• Complexity in the organization increased
• Knowledge-workers’ time was drained by managing complexity,
impacting time spent on innovation
• Productivity of new product development remained flat
David G. Sherburne Carestream Health Inc. Page 5

6. Increasing Demands on Knowledge Workers
• Project teams are less collocated
• Platform development and globalization add to complexity
• Iterative methods required faster information transfer
• More stringent IP capture from suppliers is required to be flexible and to
improve design for manufacturability
• Access to historical data is needed to improve planning, compare
reliability trends, and drive improvements to the development cycle
• Engineers are required to do deeper analysis and model more
• Requests for metrics are more frequent and are difficult to manually
produce
• Disjointed IT and non-standard process environments reduce
effectiveness and increase demands on time
Key Point -quality and compliance must be maintained so people manage the
complexity with manual processes and spreadsheets impacting productivity
David G. Sherburne Carestream Health Inc. Page 6

7. Evolution of Non- Standard Commercialization Process
Innovative
people innovate
many local
processes to Gaps between
assemble and blocks represent
baseline inefficient
information manual sharing
of information
Complexity
Local increases as
resources work begins to
focus on flow between
working local sites due to
product families globalization
10/31/12
David G. Sherburne Carestream Health Inc. Page 7

8. Point Solutions worked but lacked proper architecture to enable global
productivity
Authoring
Authoring PDM
PDM PLM - -Enterprise
PLM Enterprise
No Confluence
MCAD Tools Part No
Teamcente
Teamcente Integration MQDS
Data Integration
rr Excel
NX
NX No
No SAP
CAD Files PDF’s Integration
Integration MS
Pro/E
Pro/E Project
BOM
No Integration
No Integration Lotus Notes DB Team
SolidWorks
SolidWorks Intralinks
Intralinks Room
EQDS
EQDS Sys 9K
Sys 9K
CAPA
CAPA
CAPA
CAPA
RoHS,
RoHS,
AutoCAD
AutoCAD CAPA
CAPA DoC,
DoC,
Electrical Part No
No MSDS
SOP
SOP MSDS
Data, RoHS Integration
Integration (no
(no
File Shares
File Shares DA
DA home)
ECAD Tools MMR
home)
MMR
Mentor DX
Mentor DX CIDx External
EE File CIDx Lotus Domino
No
No Systems
Cadence
Cadence Shares, No Integration
No Integration
Integration
Integration
library cache Standalone
OrCAD
OrCAD DocManager
DocManager Systems
CAD Files PDFs CQuest
Altium
Altium
Version Control Tools Information
No
No
Software Integration Defects
Defects Flow
Clearcase Integration ClearQuestPoint
Authoring
Clearcase ClearQuest solutions are
Desktop Tools
Desktop Tools
PVCS
PVCS Subversion
Subversion Enhancement
Enhancementcaused by an “IT Cost Manual
Requests
Requests Integration
(Browser,
(Browser, StarTeam
StarTeam Center” mentality and
MSOffice, etc)
MSOffice, etc) non- coordinated local
DOORS Requirements
DOORS Requirements
Automated
Quality Center Integration
Management Toolsefforts
Management Tools
David G. Sherburne Carestream Health Inc. Page 8

9. Holistic PLM Approach- Its not just a simple arrow anymore
1990s PLM was Today PLM must
People
technology improve
Skilled in ; operational
driven,
supporting local Leading change performance
management across an
needs
Communication/training enterprise
Project management Leadership
Process
Focus the organization
Balanced - Structure
vs Innovation Develop, inspire vision
Standard across sites Technology Communicate strategy
End to end Provided by solid partners Build awareness
integration across
functions Globally scalable Lead multi-cultural change
Real time metrics Architectural orientation
Continuous Solid IT infrastructure PLM must scale
improvement Master data foundation to service a
mindset global and
People were co-
located and distributed
focused environment
David G. Sherburne Carestream Health Inc. Page 9

10. Leadership/ Governance the tip of the arrow
CTO Office CIO Office
Alignment with R&D
Alignment with IT
and Manufacturing
• Ensure solution scalability
•Central group to manage
• Enable architectural alignment
the effort that’s close to Director R&D
• Improve on-going services
the business Effectiveness • Ensure leverage strengths of both
•Ensured focus on the
IT and business
business David Sherburne
•Gave focused time to
process development and
SME involvement
•Provided a home for
Vertical Business
continuous improvement
Structure
• Major stakeholders
What are the key • Home for subject matter
experts
decisions? • Key middle managers
Who has the • Finance the work and
decision rights? reap the benefits
David G. Sherburne Carestream Health Inc. Page 10

11. Technology and Partner Selection Process
Examined our business objectives and the capabilities we
were lacking
Examined market options for both the application platform
and implementation services
Started the evaluation process early to learn partners’ depth
and long-term partnership approach
Emphasized building long term relationships
Contracted the implementation partner to help make the final
technology partner selection
Used a rigorous evaluation process against high-level
functional AND businesses requirements that enabled a
strong ROI for the Carestream business scenario
David G. Sherburne Carestream Health Inc. Page 11

12. Partner Selection Model – Give Yourself Time
Look for a strategic long term
Business Objectives
relationship (5 years minimum)
 Willingness to share in risk
ID Capabilities
Missing  Flexible license/implementation
terms in line with business ROI
Write Key Use Cases  Partnership during entire
implementation lifecycle
ROI of New  Structure to keep on-going costs
Capabilities
in line with benefits
Develop Business
Requirements
Strategies to Obtain
Capabilities
Final Selection of
Partners
Request for Information
Request for Quote
Time ~ 9 months 1½ FTEs
David G. Sherburne Carestream Health Inc. Page 12

13. Benefits of the Partner Selection Process
Allowed us to refine the requested information and
expectations over a period of three cycles with suppliers
Drove internal understanding, maturity of estimates, and
costs through the first two cycles giving credibility to the
project with senior managers
Eliminated suppliers fairly and in stages, maximizing the
understanding along the way of the finalists
Candidates remaining in the last cycle deeply understood
our functional requirements, business drivers, and
expectations and provided the best offers possible
Process obtained the best balance of functionality, risk, and
cost to our company, maximizing ROI and reducing risk
David G. Sherburne Carestream Health Inc. Page 13

14. License Models Limited PLMs Business Value
Models Proposed Many License Models
• Named User •Discouraged access to data
• Module Based •Were costly to pilot and test
• Creator/Consumer •Front loaded our cost and risk
• Geographic Location Based •Were complex and difficult to
predict the total cost
• Enterprise – Based on Revenue
•Limited platform scalability
• Subscription – Based on Total Users 
•Placed crazy price tags on
• Open Source – Free without support
document management and simple
• No Concurrent User Models Offered workflow management
•Tanked the ROI
License Models
•Caused crazy behaviors to work
Right People around license models
Right Information
Right System
•Became a gift that would provide a
Right Time rapidly growing revenue stream out
of the company
David G. Sherburne Carestream Health Inc. Page 14

15. Technology Architecture- Understand the Layers
Understand the complete view of New Product Development
“building blocks” and how to communicate them clearly
Appreciate the complexity and interaction in the “Architectural
Layers”
Keep business process focus and balance between structure
and flexibility
Maintain good architectural orientation and familiarity with
industry technology
Mature the architectural maturity and understanding between
the multiple functional organizations involved with PLM
David G. Sherburne Carestream Health Inc. Page 15

16. High Level Process Architecture- Describe the blocks
ideas Portfolio – Dashboards, Metrics, Web Channels
PLM – Product Life Cycle Management Platform
SUPPORTABLE PRODUCTS
SUPPORTABLE PRODUCTS
Service Delivery, Pubs,Training
ideas PDM – Data ALM – Data
Portfolio Management
Project Management - Gates
Management Management
Product Planning Definition
Quality Data Management
Manufacture and Sustain
for Hardware for Software
ideas Development Development
WIP WIP
ideas
Authoring Authoring
ideas
Hardware Software
Design CAD- Design –IDE
ME,EE
Integration of Applications and
Core
Master Data Strategy
BOLD = Industry Term
David G. Sherburne Carestream Health Inc. Page 16

17. Appreciate the Complexity in Each “Architectural Block”
Need to drive understanding deep & across the functional groups to mature the enterprise understanding
Business Process Maturity
Presentation/Data Access Layer – Web Channel/Portals for internal and external
Consumption; Dashboards, Business Intelligence Analysis, Supplier Portals
Increasing Architectural Maturity
Business Process Layer – Optimized Workflow and Roles and Responsibilities
(Engineering Change Control, Production Release Process,
Supplier Quote Process, Defect Management Process)
Application Layer –
Aras Innovator, Teamcenter, Doors, Rally, Subversion
Data Layer –
IT Maturity
Master Data (System of Record/clean-up) , Attributes, Field Mapping to Metrics
IT Infrastructure Layer – Global Networks, Servers, Databases,
Storage, Back-Up, Archive
Increase Organizational Maturity + Architectural Awareness = Success
David G. Sherburne Carestream Health Inc. Page 17

18. Application Architecture Representation
PDM Enterprise Systems
Enterprise Systems Knowledge Sharing, Social Nets,
Desktop
Office,
Office, HW and Webchannel
Project
Project Webchannel/
PLM -Aras Innovator
PLM -Aras Innovator Dashboards –
Social
Closed Loop Engineering Change
Closed Loop Engineering Change Metrics
MCAD Tools Development
PDM Upgrade Management (HW/SW)
Management (HW/SW)
Supplier 11
Supplier Event Tracking and Defect Mgmt
Event Tracking and Defect Mgmt
CAPA Management KMKM
CAPA Management LN DBs
Supplier 2 Audit Management Platform
Platform
Audit Management
Supplier Access/ DFM Input
Supplier Access/ DFM Input
Supplier 33
Supplier Supplier Quote
Supplier Quote
Authoring Systems
RQMTS ECAD, MCAD PDM Integrations
ECAD, MCAD PDM Integrations Manufacturing Transfer
Manufacturing Transfer
New  EBOM, MBOM Management
New  EBOM, MBOM Management
Modeling Costing Raw Material Master SAP
SAP
Platform Costing
Commercial Parts Library
Commercial Parts Library
ECAD Tools RoHAS
RoHAS Purchase
Purchase
ECAD 1 Requirements Change Control
Requirements Change Control Portals ––
Portals
ISDE Integration for SW events Integrated As Built
Testing ISDE Integration for SW events ECoutlook
ECoutlook Master Data
ECAD 2 Smart source-Ebid
Smart source-Ebid
Quality
Quality
Platform
Platform Established
Established
ECAD 3 (HPQC)
(HPQC) Standard
Standard
Emerging
Integrated SW Development Environment- SW Environment)
SW Authoring
Standard
ISDE 2012
SW Project Management,
SW Project Management, Build Tools and Services
MS Visual Studio
MS Visual Studio Core Proposal
Dashboards
Dashboards Test Scripting
SW CM ––
SW CM (Rally)
(Rally) Some No
Build Configuration
XCODE, Other
XCODE, Other SVN
SVN Integration Standard
Management
Key IDEs
Key IDEs
End of
Life
David G. Sherburne Carestream Health Inc. Page 18

19. Business Process Architecture  Swim Lanes
Process diagrams ;
must be organization
independent
provide visual scope
drive deeper “use-case”
discussions
provide context to user
story– for the “Role”, that
desires to “do something
in a process” the PLM
system will “do
something”
refine functional requirement
understanding
concentrates people on
future state and consistency
vs. current state & holding
on to it
can be analyzed to reduce
waste
help focus training
development on process
and not button clicks
help testing for validation on
key workflows and
performance
David G. Sherburne Carestream Health Inc. Page 19

20. Understand Process Balance & Increase Productivity
Manage for fast idea Manage for
cycles repeatability and
consistency
Research and Manufacturing and
Development Regulatory
Key: Carefully architect business processes with balanced SME input (MFG,RD,Quality,
Regulatory) with consideration as to what point in the lifecycle data will be start to be
entered into the PLM system
David G. Sherburne Carestream Health Inc. Page 20

21. Process-Based Training
Technology and process are complex; skimping on training
leads to inefficiency and slow adoption
Training helps change the culture
Train in the context of standard business process – not
application “button clicks”
Carefully identify the roles that require training and target
information to the roles
Evaluate self-paced training,
it’s the hardest to deliver, but
it’s most flexible for users
David G. Sherburne Carestream Health Inc. Page 21

22. Properly Skilled Teams = Successful PLM Results
Technology
Partners
Business Process &
and Application
Metrics Development Architecture
Coding and IT Architecture,
Configuration Master Data
Skills for Migration
implementation
David G. Sherburne Carestream Health Inc. Page 22

23. Carestream Case Study
• Open Source and Aras Innovator Platform
• Scope and Scale of Phase One
• Benchmark with Industry Expert
• Findings Summary
David G. Sherburne Carestream Health Inc. Page 23

24. “A”ras Innovator = “A”ttitude & “A”dvantages
• Cost model allowed global scale that’s not tied to modules,
geographic locations, or named users - key to ubiquitous internal
and external access and enabling proper ROI
• Flexible architecture supports rapid development – 50% easier
than other platforms to configure
• Upgrades… Guaranteed… when you subscribe
• Open access to ALL data elements
• Technical partnership – anti-virus performance,
e-signature Help, visualization strategy, search functionality
• Some risk (early adopter) but balanced with higher value
• Community solution concept, which we are beginning to leverage
• Single company provides the PLM Core – it’s not traditional
“Open Source”
David G. Sherburne Carestream Health Inc. Page 24

25. Case Study, Phase 1 – Implement a Global PLM that delivers:
Global Standard Business Processes
Defect Management Package Parts Mgmt.
Overall Engineering Change-Mgmt-Closed Loop Commercial Parts Mgmt.
Engineering Change Request (ECR) CAPA Mgmt.
Engineering Change Notice (ECN)
Deviation Authorization Audit Mgmt
Engineering Change Implementation (ECI, MBOM) Supplier Collaboration
Design Parts Release Product/Team Mgmt.
MBOM/EBOM Mgmt Feature Function Request Mgmt.
Dropped from Phase 1 currently working now
Across 4 Major Sites Uniting Many Point Solutions
Rochester (DCS, HCIS) Closed loop Engineering Change (One Example)
Oakdale (DO) Defects – ClearQuest (1300 users)
Woodbridge (CMI) ECR – Spreadsheet, Manual
Shanghai (DCS, DO, CMI, Rayco) ECN – EQDS Retired (450 users)
ECI – Spreadsheet Manual, SAP Integrated
Requiring Involvement of ~75 Subject Matter Experts
PLI Provides the Foundation for Carestream Health Inc.
David G. Sherburne Future Process Standardization
Page 25

26. Baseline Comparison with industry expert
Key Points
• Solutions for medical device companies take longer that average to implement, as more effort is required to meet
regulatory requirements for verification and validation
• Most PLM solutions typically require configuration/customization, as the OOB solutions do not fully meet the business
needs
• Aras architecture is impressive, flexible and modular, more cost effective and scalable, but may take more effort to
implement than industry solutions but once implemented on going costs are minimal.
User = Core engineering process worker that Industry Expert (Typical PLM) Carestream PLI- ARAS
contributes to Part Creations, BOM management,
Engineering Change
Schedule (Implement & Deploy) 18-24 months 19 months deliver features
24 months stabilize and deploy most modules
Initial Implementation Cost $4000/user $3300/user
(Core engineering users- measured in
hundreds)
License Maintenance/Subscription Cost
$360/user $300>$165>*$75
Functionality for a Phase 1 Engineering Change Closed-Loop Engineering Change
Configuration/Revision Control Configuration/Revision Control
BOM Management BOM Management
Supplier Collaboration Deviation Authorization
Product/Portfolio Management Product Defect Management
Audit Management
SAP Integration
# of Sites for Deployment 3 4 Development Sites
Internal Resources to coordinate (in addition to 5.5 FTE 5.5 FTE
implementation)
Subject Matter Involvement 60 75
*When suppliers access the system >$75/user
David G. Sherburne Carestream Health Inc. Page 26

27. Results to date for Carestream PLM
Deployment was slower than anticipated - why up front license cost needs to be questioned!
•Users of the system = 500 ramping up to 1000+ when defects fully deployed
•Slow deployment of defect module due to software engineering metrics requirements
•CAPA/Supplier portal/Requirements have been delayed
Total Engineering Changes Processed, over 1000 in first year
Compared to prior solution baseline;
•Number of changes has dropped 20%
•Average cycle time for a change has dropped 30%
•Rejections for content mistakes has increased 40%
Current Support Staff – Year one of operation
•Investments (choice) – New modules and enhancement functionality – 6.25 FTEs
(Project Management, Development, Business Process, Testing)
•Supplier Portal Development
•Enhancements to current modules
•CAPA (being re-evaluated)
•Services (keep it running) – Support of users and defects fixes – 1 support FTE/100
Engineering Users
(Project Management, Development, Testing)
•Defects and bug fixes
•User support, help tickets
•Upgrade testing and release
David G. Sherburne Carestream Health Inc. Page 27

28. Strategic Take Away
Globalization without process standardization will lead to reduced
innovation time and flat productivity
PLM Implementations require a holistic approach that includes;
•Global Leadership = A Leadership Organization/Governance
•People with change management/leadership skills
•Processes mapping, standardization and development
•Progressive and flexible technology partners
Cost center IT mentality delivers proliferation of local point
solutions and little enterprise architecture or process efficiency
PLM license models should be evaluated closely to reduce risk,
allow ubiquitous access and enable the business ROI
David G. Sherburne Carestream Health Inc. Page 28

29. Global Standard Commercialization Process (future)
PLM Initiative PLM when successfully implemented will provide more time
cut across 14 to knowledge workers to focus on innovative tasks that are
processes truly valued by customers
many functional
areas & 4 sites Eliminated barriers to
internal sharing of
resources
Improved enterprise
collaboration
effectiveness
Enabled improved
Metrics and Reporting
Reduced
organizational
complexity
Standard process set up a foundation
for continuous improvements
10/31/12 David G. Sherburne Carestream Health Inc. Page 29

30. Practical Take Away
• Craft a balanced cross functional team
• Prioritize project governance, know key decisions and set decision rights formally
• Know your teams critical mass (how much work your team can handle) and match
that with implementation partner’s speed and development capacity
• Ensure business process work leads and use cases-requirements follow
• Take work in small chunks (AGILE development methods works well)
• Turn user interface prototypes early, fast, and review the implementation approach
• Train in context of the business process not in the context of the tools button clicks
• Get involvement of SMEs early and often. Cover all disciplines and phases of the
lifecycle to ensure a balance between process structure and flexibility
• Prioritize architecture and code reviews to ensure standards and avoid a poor
code base due to rapid cycles/ turn over of developers
• Verify and validate functionality using business-process diagrams as the basis
• PLM will always take longer to deploy than estimated because of organizational
change management
• When automating manual integrations between point solutions multiply time
estimates by 2 and spend the time to understand the business process
David G. Sherburne Carestream Health Inc. Page 30

31. Willing to talk more about PLM…?
PLM is a complex journey that
requires discussion and;
Leadership
Strategic technology approach
Solid architecture at all levels
Process focus and knowledge
Highly skilled team
Lots -O- Benchmarking
David G. Sherburne Carestream Health Inc. Page 31

32. Contact Information
David G. Sherburne – Director of Global R&D Effectiveness
and Engineering IT, Carestream Health Inc.
Linked in:
http://www.linkedin.com/in/davidsherburne
Personal email: me@davidgsherburne.com
Work email: david.g.sherburne@carestream.com
Slide Share : http://www.slideshare.net/dgsherburne
Twitter: @dgsherburne
David G. Sherburne Carestream Health Inc. Page 32