We’ll soon be departing for our festive holidays, and to enjoy the last days of 2017 with family and friends. Before this year comes to a close, I wanted to reflect on PTC’s FY17 and its strong finish. In fact, the last quarter of FY17 set a new record with new license and subscription bookings of $144 million. As Jim Heppelmann announced, “fiscal 2017 was another year of great progress in our transformation to become a high-growth subscription software company and industrial IoT leader. During the year, we delivered strong results in our core CAD and PLM businesses, grew bookings in our IoT business well above current market growth rates, and exited the ‘subscription trough’, setting the company up for strong revenue and EPS growth going forward.”
That’s great news from headquarters, but what are our customers saying? Well, for one, local Swedish customer Saab reports success as it recently deployed PTC’s Service Parts Management. Dan Norlin, head of programs, plans, logistics and document services at Saab said, "We found that our previous solution was not powerful enough to meet the needs we had. We therefore chose to install PTC's Service Parts Management solution to optimize our inventory and lower our inventory value. With PTC's solution, we have increased the availability of our spare parts and thus the service level without the need to increase our inventory value. Since then, we have saved time and resources in our planning and ordering process and reduced the capital tied up in our warehouse."
Another local customer is the retailer Clas Ohlson. Originally a mail order business, Clas Ohlson is now a fast-growing international retail chain with more than 220 stores and e-commerce across five markets: Finland, Germany, Norway, Sweden, and the UK. Clas Ohlson is working with PTC as part of its multi-year transformation initiative, which will replace old methods with scalable and robust systems and processes for the future. Clas Ohlson will deploy PTC’s out-of-the-box FlexPLM solution to enable them to drive new levels of innovation and significantly increase efficiency. The solution will enable Clas Ohlson to reduce the need for system customization and enable seamless data management, both internally at Clas Ohlson and with its extensive supply base.
And, KTM, the leading manufacturer of sport motorcycles in Europe, also announced its expansion of PTC CAD and PLM environment by deploying ThingWorx Navigate, and embracing the PTC subscription model. “KTM always pursues innovation and proximity to customers in order to improve our models with each new series,” said Philipp Habsburg, director development, KTM. “Product development has to keep up with the times. For example, we have to transfer parts or technologies that have been proven in our racing series into our serial models within a very short timeframe. This requires software solutions that are both flexible and powerful, but also make the work simpler at the same time. ThingWorx Navigate is the additional tool we needed, as it provides the exact information required by each department and reduces the complexity of the PLM system, enabling our teams to be more productive. And, thanks to the subscription model, we can respond faster and with more flexibility as our company continues to expand.”
That wasn’t the only exciting news to come at the end of the year – Jim Heppelmann has once again co-authored with Harvard Business School Professor Michael Porter an article in the November/December issue of Harvard Business Review (HBR). Entitled “Why Every Organization Needs an AR Strategy,” the article defines the business implications of augmented reality (AR) and explores how AR is creating value in industrial settings today. The latest article provides a research-driven road map for how companies should deploy AR, as well as discusses the critical choices they will face integrating it into business strategy and operations. Download the article here and don’t forget to download the HBR app to enjoy the cool AR factory experience and demos within the article.
All in all, it was a very good year for PTC and we look forward to more successful projects with you all in FY18. I would like to wish you and your families a wonderful festive break and a very healthy, happy 2018.
Filip Stal, Director of Nordic sales at PTC
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