HOSTED MANAGED SERVICESHOW MANUFACTURERS MAINTAIN CONTINUED GROWTHWhitepaper

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HOW HOSTED MANAGED SERVICES ENABLES MANUFACTURERS TO KEEP GROWINGBottom Line: The faster any manufacturer grows, the more important it is for their IT departments to scale and support new suppliers, production workloads, fulfillment and logistics. Keeping hard-won new customers repurchasing products takes every department and IT system staying focused on how they can be as responsive as possible. With DELMIAWORKS® Hosted Managed Services, manufacturers are able to reduce software and infrastructure costs while providing greater responsiveness to their customers.

Hosted Managed Services Reduces IT Costs And Helps You Scale Up Your TeamThe bottom line is that DELMIAWORKS Hosted Managed Services reduces and in some cases eliminates the high costs of application updates, 24/7 monitoring for uptime and performance, offsite backups, backup testing and more. The high costs of software licenses, software upgrades, servers and the drain on IT staff slow down growth by taking dollars away from the core areas of the business growing the fastest. Manufacturers are freeing up their IT teams to work on projects that have a direct contribution to revenue while finding new cost and time advantages from Hosted Managed Services. The following graphic compares on-premise ERP licensing with Cloud Hosted Managed Services ERP using a license and SaaS model:

DEPLOYMENT OPTIONS

The following cost and performance areas are where Hosted Managed Services is making the greatest contributions to manufacturers’ growth today:

Reducing IT costs making financial resources available to fund greater growth. IT departments’ greatest costs are often the many hardware purchases needed to successfully operate the many software applications they’ve built their businesses on. Hardware costs also include maintenance and warranties, which together often dominate an IT budget. Hosted Managed Services eliminates the high costs of purchasing and maintaining hardware by renting servers in a data center or purchasing one and having them managed there.

Provisioned by DELMIAWORKS: added to monthly fees

Provisioned by DELMIAWORKS: added to monthly fees

ON-PREMISE ERP (LICENSE)

CLOUD HOSTED MANAGED SERVICES ERP (LICENSE)

CLOUD HOSTED MANAGED SERVICES ERP (SAAS)

FACTORS TO CONSIDER

SW License Fees

Hardware Location

Backup & Redundancy

User License Agreement

SW Maintenance & Support Fees

Application of Updates/Patches

Offsite Backups & Backup Testing

24x7 Monitoring for Uptime & Performance

Adding Server & Storage Capacity as Needs Grow

System Hardware

Facility Hardware(desktops, kiosks, server(s) for RealTIme, laptops, network printers, WiFi, firewall)

Implementation& Training

Power, Network & Environment

Paid up front

Customer determines

Customer responsibility

Perpetual license

Paid periodically by the customer

Customer responsibility

Customer responsibility

Customer responsibility

Customer responsibility

Provided by customer

Provided by customer

Paid as incurred

Paid by customer

Paid up front

Data center

Data center

Perpetual license

Paid periodically by the customer

Provided by DELMIAWORKS

Provided by DELMIAWORKS

Provided by DELMIAWORKS

Data center

Provided by customer Provided by customer

Paid as incurred

Data center

Monthly subscription

Data center

Data center

36 month commitment

Included in the monthly subscription fees

Provided by DELMIAWORKS

Provided by DELMIAWORKS

Provided by DELMIAWORKS

Included in monthly subscription fees

Paid as incurred

Data center

• Reducing and getting in control of spiraling direct and indirect IT operational costs. The operational costs of running servers and in larger manufacturers, clusters of servers that resemble a small data center drive up operational costs quickly. Operational costs are difficult to control once servers being to proliferate across any manufacturer. The reality of just how fast these costs are growing becomes apparent when operating cost variances show growing fluctuations that aren’t easily explainable to the line item level. Hosted Managed Services are getting manufacturers back in control of hard-to-track operational costs and helping to turn operating cost variances positive, further helping to finance future revenue growth.

• Saving your IT staff’s time so they can work on projects more tied to revenue. IT staffs are already overtaxed with keeping servers operating and all software updates current. That leaves little time for many manufacturers to focus on the most valuable projects of all: those that drive greater revenue. By delegating server maintenance and software upgrades including application fine-tuning to DELMIAWORKS Hosted Managed Services, manufacturers can immediately reassign IT staff to revenue-generating projects that have been waiting months or longer to get done.

• Improving IT capacity planning and providing more visibility into ongoing systems and application performance. Hosted Managed Services are designed to provide 24/7 support for capacity planning, server optimization and real-time analytics on server and application performance. Dashboards providing this data are available on a 24/7 basis anywhere in the world at any time, all that’s needed is a Wi-Fi connection. Instead of taking the time of the most valuable and skilled IT staff to complete server and application capacity planning and optimization, Hosted Managed Services software completes these tasks in real-time on a 24/7 basis. Manufacturers can check on capacity usage, server performance and optimization and application workloads using dashboards accessible on any tablet or smartphone that can connect to the Internet via Wi-Fi.

• Reducing the risks of a security breach that has the potential to stop production and potentially costs tens of thousands of dollars to recover from. It’s a surprising fact that many of the most costly security breaches are initiated from within companies. Manufacturers who have had data stolen or destroyed in a security breach incur tens of thousands of dollars in unexpected expenses to recover. There have also been incidents where manufacturing systems have been hacked, and production lines halted costs hundreds of thousands of dollars and jeopardizing customer relationships. Manufacturers need to realize that identities, not systems, are the new security perimeter for any of their factories or production centers.

• When 81% of breaches involving weak, default or stolen passwords, it’s time to consider moving IT to Hosted Managed Services to secure every access point to company networks. Hosted Managed Services provide advanced security technologies including two-factor authentication, and Zero Trust Security (ZTS) frameworks can be put in place to secure every access point of the network. Verizon’s 2018 Data Breach Investigations Report provides a sobering view of how well-orchestrated breaches are today.

• Verizon found that 51% of businesses including manufacturers suffered at least one breach in the past 12 months. And insider incidents increased 11% year-over year, with system administrators being the most likely to breach on-mise systems by either selling company data, their access credentials on the dark web for quick money, or destroying data and systems out of anger at their employers. It takes on average over eight months to know when internal systems have been hacked and another six to recover according to Verizon.

• DELMIAWORKS Hosted Managed Services is designed to secure every access point to manufacturer’s IT systems in data centers. Every laptop, computer system, smartphone, and remote device accessing confidential company data are threat surfaces breach surfaces can attack and gain access to company data. Each of these access points can be hacked to capture privileged access credentials, giving hacking groups most often led by organized crime quick access to the most confidential data a manufacturer has. DELMIAWORKS Hosted Managed Services are designed to thwart the many orchestrated breach strategies

• Gaining a 360-degree view of security increases the probability of production lines staying secure and experiencing no downtime. Keeping production lines running and secured away from any breach attempts is at the center of the DELMIAWORKS Hosted Managed Services services architecture. By securing every access point and anticipating that there will be breach attempts on threat surfaces that are often unprotected including cell phones and tablets, Hosted Managed Services provides comprehensive security measures not attainable by the majority of IT departments at manufacturers. DELMIAWORKS Hosted Managed Services concentrates on the following areas to provide 360-degree views of security:

• Continuously monitored, authenticated remote access - With 81% of security breaches involving compromised privileged credentials according to Verizon, it’s a best practice to enforce two-factor authentication and rely on advanced predictive analytics including machine learning to verify every login from every device. The DELMIAWORKS Hosted Managed Services security perimeter is designed to immediately validate login attempts and check in real-time if they match pre-existing patterns of access to the device level. This thwarts breaches before they begin, asking for two-factor authentication to be completed by those logging in. The result is manufacturers’ data stays safe, and those looking to breach systems are thwarted.

• Designed in architectural security across every hardware and software platform in the data center – Designed into the data center operating environment are real-time monitoring of every network, database, operating system, and application. Using advanced network monitoring systems, data centers track security to the packet level across networks and evaluate traffic for aberrant or non-typical patterns to thwart hacking attempts.

• State-of-the-art physical security at data centers – The data centers hosting DELMIAWORKS’ Hosted Managed Services have extensive recorded video surveillance, biometric access security, and multiple layers of security throughout every location. DELMIAWORKS initiates periodic, unannounced audits of each data center to test how secure they are and always to strive to excel at protecting our customers’ data. DELMIAWORKS also performs annual SOC 2 Type 2 and SOC 3 audits using independent service auditors by AT section 101, Attest Engagements, under the guidance provided in Reporting on Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality or Privacy.

• Stability and reliability are designed into DELMIAWORKS’ Hosted Managed Services architecture and platform, freeing up manufacturer’s IT teams to concentrate on growth-driven projects. DELMIAWORKS guarantees 99% uptime for all software and services customers choose to locate with Hosted Managed Services. Integral to the Hosted Managed Services architecture is designed-in features and support that ensures network, software and hardware stability, and reliability. DELMIAWORKS offers uptime guarantee, warranty support, professional installation of both our software and provisioning of all third-party software you may want to use. DELMIAWORKS also offers incident response time guarantees, event management, incident management and secured data backup. Our data centers also have state-of-art cooling, power management including generators and intelligent failover and online Universal Power Systems (UPS) support across all locations. The data centers where DELMIAWORKS Hosted Managed Services are located all have fault-tolerant Internet connectivity including support for BGP routing protocols and advanced climate control systems to stabilize humidity and temperature for the entire facility.

• Retaining valuable employees companywide by stabilizing IT first and then the entire production team by providing them the information they need when they need it. Manufacturers are growing the fastest often outpace their legacy systems as production teams move through orders faster than systems can keep up. One of the most valuable lessons learned from working with growing manufacturers is how essential it is for an ERP system to keep pace with how quickly production teams are capable of working. The higher the quality of data and information an ERP system providers to production teams the more control they have over how quickly they can get more work done. Choosing to rely on Hosted Managed Services gives production teams quicker access to the latest scheduling and reporting features, giving them more control over their jobs and improving team-wide performance at the same time.

CASE STUDY: VENTURADELMIAWORKS Enables Ventura’s Growth By Scaling Production With Greater Speed and Reliability

OverviewVentura is an award-winning semi-automated assembly and production company that serves the automotive, office furniture, education seating, and molding and assembly of optical silicone industries globally. Headquartered in Zeeland, Michigan, the company has multiple plants in Zeeland in addition to plants in Budaörs, Hungary, Saltillo, Mexico and Shanghai, China.

As demand for Ventura’s services grew and the company began attracting customers worldwide, it was apparent the dependency on a single ERP system on-premise in Zeeland, Michigan was becoming an impediment to faster growth. “Relying on a single system to manage our global plants was proving to be a huge scale challenge,” said Joel Boyles, IT Team Lead at Ventura Manufacturing.

Ventura’s customer base is globally-based and to serve them as responsively and effectively as possible, Ventura decided to open new production plants in Hungary and Shanghai, China.

ChallengesOvercoming the Challenges Of Improving Speed And ScaleWith eight plants globally running from a single ERP instance on a server in Zeeland, Michigan, the IT team faced the challenges of scaling their systems to support the global growth fueling their company’s expansion. The IT Teams at Ventura prides itself on offering live support to any plant, anywhere in the world that needs help, anytime. “When we just had the plants in Mexico and Hungary, our existing staff could scale to support the calls coming from plants for help with their IT systems and take care of ERP- related tasks,” Joel said. When the Shanghai, China facility went online, Ventura was reaching the limits of scale and speed with their IT teams and the system running on-premise in Zeeland.

As demands increased on the system, so did concerns over Availability and Disaster Recovery Objectives the IT Team had defined. Two metrics that are of specific interest to Ventura’s IT team are the Recovery Time Objective (RTO) and Recovery Point Objective (RPO). IT defined the RTO goal as 8 hours and the RPO as 15 minutes, achievable on a 24/7 basis. To accomplish these goals, Ventura would need to create an entirely new system platform that could scale more efficiently with their growing business. The new platform would also need to increase the speed of system updates, which had been a problematic area in the past for the single system to complete.

Joel Boyles, IT Team Lead, says the challenges of scalability and disaster recovery are what drove the urgency for Ventura to decide that Hosted Managed Services (HMS) from DELMIAWORKS was the best possible solution. “Plant system updates including MRP were taking at least 2 hours per plant, which translated into our IT teams having 24/7 shifts in our Zeeland-based IT offices,” Joel said. “Clearly we had to redefine our system architecture for greater scalability and speed.”

Ventura chose DELMIAWORKS’ EnterpriseIQ delivered via Hosted Managed Services (HMS) because it was the most economical and fastest option for solving the system performance challenges and attaining the disaster recovery goals the company has. Under the DELMIAWORKS HMS purchase option, software licenses are owned in perpetuity by Ventura and hardware and platform software is provided by the DELMIAWORKS data center. DELMIAWORKS is managing the Ventura systems today in a secure data center environment. Ventura’s IT team can gain access to key system metrics and key performance indicators anytime via any browser-enabled laptop, tablet or smartphone.

SolutionHow Ventura Defined A Global Roadmap To Greater Speed And ReliabilityLike many manufacturers, Ventura initially ran their operations using QuickBooks and Microsoft Excel, then transitioned to a single enterprise system to operate all production plants. That’s often the first phase of many manufacturer’s IT roadmap as the demands to scale to support greater production capacity in multiple locations forces the need for new system architecture.

Ventura’s infrastructure had reached the end of its life. Supporting the Shanghai, China facility was just one of the new functional requirements, as are the RPO and RTO goals. “The combination of the staffing requirements and time it took to run reports supporting production operations showed our process and systems would have to change for us to keep up with the growth,” Joel said. The next stage in the Ventura IT roadmap was the adoption of Hosted Managed Services.

“By choosing the HMS option we were able to accomplish a lifecycle upgrade to newer, more powerful servers that took corporate-wide MRP runs down from 2 hours to 8 minutes,” Joel explained. In running a consolidated MRP companywide to

“Relying on a single system to manageour global plants was proving to be ahuge scale challenge.”

-Joel Boyles, IT Team Lead

support all facilities Ventura had to find a 2-hour quiet time to do the MRP run. They had originally done this at night, but once the brought the Shanghai plant online, they no longer had a 2-hour quiet time. With several plants and the need to run MRP daily once at the corporate level, transitioning to the Cloud-based Hosted Managed Services also reduced the time it took to run reports, in some circumstances by 50%” The graphic below shows the locations of Ventura’s plant locations globally.

Lessons LearnedThe greater scalability and speed Ventura has today is enabling the company to expand into entirely new areas of business on a global scale. “Our new system enables us to define custom Bills of Materials and schedule production in the plant that is the closest to the customer,” Joel said.

Electronic Data Interchange (EDI) is also a core aspect of their system requirements. On average, Ventura receives 1,000 EDI transactions a day. A key aspect of the new systems’ scalability is the need to provide greater expansion for EDI transaction support. Joel says that this is already beginning to scale up.

Joel says that Ventura considered several different options and stayed with DELMIAWORKS. “We wanted to know best practices in our area of manufacturing, and the DELMIAWORKS team was supportive and responsive to my requests for assistance as we completed the implementation,” Joel commented. DELMIAWORKS provides a 24- hour hotline during the implementation, an Atlassian instance including planning tools, and a global team available to answer questions at any time. “It was the DELMIAWORKS expertise on the topic that drove the value. That, and the manufacturing knowledgeable engineers I worked with at DELMIAWORKS,” Joel said.

Prioritizing Which Costs To Reduce First With Hosted Managed ServicesRemoving IT scale-based barriers that get in the way of growing faster, eliminating many expensive hardware and software costs, and freeing up valuable IT staff time for revenue-driving projects are the top three reasons why manufacturers adopt Hosted Managed Services.

The cost savings, speed, and scale advantages are multiplied in multi-plant production environments where server costs and software licensing dominate IT budgets. For multi-plant based manufacturers the tradeoffs of paying more for IT versus funding new growth often decide if their businesses will grow.

The following cost benefits are in priority order for multi-plant manufacturers whose decision to rely on Hosted Managed Services frees up valuable financial and time resources to grow more:

• Eliminates the high, recurring costs of having test servers on site. Many manufacturers rely on on-premise ERP systems that have updates, so complex software providers recommend they be first installed on test servers. Test servers duplicate costs quickly can often have escalating services contracts making them more costly over time, and don’t deliver direct revenue value to the business. Eliminating test servers scale IT up by allowing the department to focus on projects that offer growth potential while reducing costs. Test server reduction is one of the main reasons why Hosted Managed Services continues to accelerate across manufacturing today.

• Reducing IT staff’s time and costs spent doing upgrades. In a multi-plant manufacturing operation, IT staffs have to travel to each plant location and perform periodic system updates and hardware fixes. And when a server in a remote production center goes down, there are the added costs of expediting parts and service technicians along with getting members of the IT staff to the site to manage the entire process. Just a Hosted Managed Services scale growth opportunities, staying too long on legacy systems across multiple plants weakens any manufacturers’ ability to compete.

• Reducing IT resource training costs. Multiple plants often have different server configurations and varying IT resource training requirements which exponentially increase the cost of training. By consolidating all systems into a single Hosted Managed Services instance, the direct costs of ongoing training go away as do the many indirect costs including lost productivity and extensive travel costs to support multiple locations.

Our 3DEXPERIENCE® platform powers our brand applications, serving 11 industries, and provides a rich portfolio of industry solution experiences.

Dassault Systèmes, the 3DEXPERIENCE® Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systèmes’ collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 210,000 customers of all sizes in all industries in more than 140 countries. For more information, visit www.3ds.com.

Europe/Middle East/AfricaDassault Systèmes10, rue Marcel DassaultCS 4050178946 Vélizy-Villacoublay CedexFrance

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AmericasDassault Systèmes175 Wyman StreetWaltham, Massachusetts02451-1223USA

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• Eliminating Citrix and Microsoft Office licenses. The fourth largest cost for multi-plant manufacturers is often Citrix and Microsoft licenses that are structured on a per-instance basis. This makes supporting multiple plants very expensive in a growing manufacturing business. It’s common for Microsoft licenses to cost more than ERP maintenance fees in fast-growing manufacturing operation adding staff across diverse geographic locations.

• Reducing the high costs of redundant application and database servers. For many CIOs and C-level executives who are responsible for managing IT across multiple plants, this is often the fifth most expensive item on their operating budgets. Applications have annual maintenance fees, separate charges for upgrades, and run the risk of being discontinued. Hosted Managed Services alleviates all these costs by assuming the risk of keeping all systems and applications current.

CONCLUSIONKeeping the momentum going and fueling the growth of a manufacturing business needs to focus on where roadblocks to revenue are and removing them fast. One of the most expensive and time-consuming roadblocks there is to greater revenue growth is the need to improve the speed, scale, and quality of information. Legacy IT systems, especially across multi-plant based manufacturers, can become a time and financial resource drain.

Hosted Managed Services are specifically designed to help manufacturers gain greater flexibility, freedom and the functionality they need to compete and win against larger competitors. DELMIAWORKS knows manufacturers need the freedom to select the best deployment model for their specific business requirements and growth plans.

Based on feedback from customers who are growing faster than their internal IT systems can scale to and keep up with, manufacturers are looking to consolidate all systems in a secure, stable central location. For multi-site manufacturers, Hosted Managed Services in one of the most viable strategies for having IT contribute to growth rather than constrain it.

For more information, please visit www.iqms.com or call 1.866.367.3772