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SPOTLIGHT
On the PLM path
Operating in the highly competitive PLM domain, Geometric
Software has grown by creating intellectual property in the space, says Srikanth
RP
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With our current focus, we have increased our addressable
market size from $200 million to more than $5 billion
Manu Parpia
Managing Director
Geometric Software |
Geometric Software started out with the vision of building an integrated product
line for the CAD/CAM/CAE segments. But when the company considered all factors'including
the fact that it was a small company'it knew that it did not have the
capabilities to compete with international players in terms of marketing. What
came next was a blended approach which not only allowed the company better margins
than traditional software service players, but lesser risks than a typical product
company. The strategy of providing services revolving around its intellectual
property (IP) in the PLM (product lifecycle management) space allowed Geometric
to differentiate itself from other players. So while the company chose the path
of software services for growth, it never diluted its focus of creating IP in
the PLM space. Incidentally, Geometric was one of the first Indian companies
to go on the path of IP licencing when it licenced its geometry-based algorithms
to other companies for improving their CAD/CAM processes. Today, Geometric gets
its revenues from a variety of sources such as software services, products (through
OEM deals), IP-based services and IP licensing.
IP the key
Geometric's IP is the reason why the company is counted among the very
best in the global PLM space. For instance, in January 2001, Spatial bought
out Geometric's translation technology for over a million dollars. It
is a sound marketing strategy for Geometric since the company knows it does
not have the resources to market the
technology independently. Geometric continues to work on the IP'but for
the vendor'gaining revenues from services. Its PLM domain expertise was
also the reason why French PLM major Dassault decided to enter into a JV with
Geometric. The new company, named 3D PLM Software, is a significant development
since it is the first time that Dassault has selected a product development
partner. The importance of the deal lies in the fact that Dassault is a mega
force in the 3D-design space. Currently, one out of two cars and seven out of
ten aircraft are designed using Dassault's Catia solution. Obviously then,
the business opportunity for Geometric is huge.
Geometric has also invested considerable resources in developing its feature
recognition technology. This technology reduces design and manufacturing cycles
by enabling mechanical and manufacturing products to automatically recognise
features from any legacy 3D model. What's significant here is that a company
like Dassault is marketing the latest version of its product Catia saying that
it has Geometric's feature recognition technology.
Geometric has also developed add-in products such as CAMWorks, FeatureWorks
and SolidWorks, based on its proprietary feature recognition technology. It
is important to note that the product source codes of both Spatial and SolidWorks
are housed at Geometric. The company is a good example of how organisations
can use the IP approach to keep on moving up the value chain without the risks
associated with product companies.
Since PLM is a highly specialised space, Geometric has been trying to grow the
market by adding more services. In late 2000, the company added PDM and visualisation
to its focus on geometry. In early 2002, Geometric started focusing on partners
with a view to addressing more PLM software companies. In April 2003 the company
decided to add to its engineering services capabilities by setting up a new
centre in Bangalore. And earlier this year, it outlined plans to provide end-to-end
PLM solutions by offering customers the ability to outsource activities such
as Help Desk and Technical Support.
Says Manu Parpia, the company's managing director,
'With our current focus, we have increased our addressable market size
from $200 million to more than $5 billion.' He believes that with the
end-to-end PLM approach, the company can achieve its target of reaching a turnover
of $100 million by 2007.
Change in strategy
While Geometric has till date stuck to OEM deals for its
products, this year the company announced the launch of eDrawings for the Pro/Engineer
platform. This is Geometric's first foray into the world of end-user products.
It has licenced the basic eDrawings technology from SolidWorks with a view to
extend it to multiple CAD platforms. eDrawings is the first e-mail-enabled collaboration
tool which helps in the communication and collaboration of 2D and 3D data. After
the launch of eDrawings for Pro/Engineer, Geometric plans to release eDrawings
for additional CAD platforms. The company has already signed more than 20 resellers
for distribution and support of this product. Additionally, it plans to continue
on the IP route by building components, products for OEMs, products that address
end-users, and integration components that can connect diverse systems.
Engineering growth
Because PLM is a great workflow management tool, it is making
inroads even in non-traditional areas like finance. Geometric wants to explore
this opportunity by providing services around emerging domains. Another recent
initiative is the engineering services division which was formed to address
customer requirements in the areas of product design support and engineering
data services. Says Parpia, 'While PLM is a $5 billion space, engineering
services is much bigger'at least ten times the size of the PLM market.'
Geometric's strategy to grow in a niche space and then expand its portfolio
of services to other domains is a pointer to the direction small, new companies
can follow for growth in a market where size is increasingly becoming the key.
| Year |
Milestone
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| 1994 |
Started in Mumbai with a team of 50 people working
on CAD/CAM
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| 1998 |
IPO oversubscribed |
| 2002 |
Joint venture with Dassault Systems, leading vendor
of PLM products |
| 2003 |
Engineering division commences operations. Launch
of eDrawings for Pro/Engineer, the first CAD support to eDrawings. First
patent received for its flagship technology, Feature Recognition |
| Steady growth |
Year 2002 |
2003 |
2004
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| Turnover (in Rs crore) |
624 |
841 |
1,060 |
srikanth@expresscomputeronline.com
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