Over 50 percent of a typical electronics company's revenues are tied up in cost of goods sold. IBM corporation is no different. In the early 1990's, IBM's stock price hit a 20-year low. The company posted an $8.1 billion loss, saw its margins evaporate. It failed to recognize fundamental changes in the marketplace and was operating as 24 separate companies, which together sold more than 5,000 hardware products and 20,000 software products. IBM was in desperate need of fundamentally transforming its business.

We will introduce the audience to the issues and challenges that IBM faced over a decade ago, and which many electronics companies face today. We will discuss how IBM's Product Life Cycle Management (PLM) business fundamentally returned IBM to profitability. By applying the concepts and tools of PLM, IBM developed a product strategy built on common building blocks and parts re-use and formed internal commodity councils to rationalize procurement. Global procurement became a partner to product development, which enabled IBM to standardize its processes worldwide. The result was an ability to design anywhere and produce anywhere.

Based on its own experience, the presentation will conclude with a discussion of how IBM is helping clients today improve their business results through improvements in PLM.


Bruce Rayner is a Senior Contributing Editor and Commentator for TechInsights, a United Business Media company. He has been covering the business of electronics for over 20 years as a journalist, editor, conference organizer, researcher, and consultant. Bruce was Editorial Director of EBN and Electronics Supply & Manufacturing, both CMP Media LLC publications. In 2004 he launched CMP's GreenSupplyLine.com website, which is dedicated to the coverage of green technology and environmental issues as they pertain to electronics. He was the co-chairman and organizer of the annual Global Supply Chain Summit with Stanford University Professor Hau Lee. Prior to CMP, Bruce worked as an editor at Harvard Business Review, ComputerWorld, and Electronic Business.


Dean Hammond is a Partner in the Product Lifecycle Management and Operations
Practice. PLM addresses the design, management and support of engineered products,
which includes computer-aided design (CAD) and product data management (PDM). In
addition, PLM delivers implementation and support services around multiple Product
Lifecycle Management (PLM) applications.

Dr. Hammond consults on transforming industrial business processes to adopt leading
practices and implement new technologies. He architects extended-enterprise, integrated, e-business solutions for clients, including PLM and other software elements, and the underlying system infrastructure. He routinely develops business cases around these solutions.

Dr. Hammond has over 30 years of experience in PLM and its application in the automotive, aerospace and defense, electronics, shipbuilding, and chemical and petroleum industries.

Daniel Murdock is Vice President of Americas Electronics Industry with over 20 years experience in product development, operations, information technology and sales. He has industry experience in electronics, communications, networking and industrial automation. He serves on the IBM Americas Senior Leadership team and is co-founder of the IBM Collaborative Innovation program. Prior to joining IBM , he was Vice President of Nortel where he led a multi national organization that focused on e-business collaboration and innovation development to support leading