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Propulsion 2020 Day 2 Kickoff - Manufacturing Digital Strategy to Overcome a Disrupted World

Transcript

[DISCLAIMER] The following transcript is being delivered UNEDITED via a streaming service. This transcript has not been proofread. It is a draft transcript, NOT a certified transcript. It may contain computer-generated mistranslations and spelling errors.

‍

Introduction: Be’Anka Ashaolu, Director of Marketing, Propel


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Be’Anka Ashaolu: We're back with more propulsion 2020 I'm Be’Anka Ashaolu director of marketing and propel and I welcome you to day two have our event.


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BA: Yesterday was incredible. Our CEO Ray Hein explain why propel is the only product solution for manufacturers embracing customer centricity


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BA: Geoffrey Moore shared insights and the digital transformation and how to win. Bruce Mehlman explained the long term impacts of the upcoming election.


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BA: Lee Hawkins shared family history that provides powerful insights into today's social movements.


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BA: Todd Ahlsten and shared his view of the economy and markets and Tiffany bowl is closing keynote provided insights into the implications of connected customers.


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BA: If you missed any of yesterday sessions. They're all available right now to watch on demand today enterprise strategist Bruce Richardson of Salesforce joined propel CEO and co founder


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BA: And VP of professional services September Higham for rapid fire manufacturing and supply chain session.


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BA: On the challenges manufacturers are facing and how digital strategy is the key to being more successful in the current environment.


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BA: Bruce Richardson's linked to Salesforce began during his tenure as chief research officer at AMR research.


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BA: During a 20 year career. There he initiated and led the firm's coverage of the RP supply chain management CRM e commerce cloud computing digital applications and the future of work.


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BA: Over that period, the company grew from a three person startup to become a leader in research and analysis of enterprise applications and supply chain management.


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BA: AMR research was acquired by Gartner and December 2009 thank you for joining us. Bruce


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BA: Again, this just a reminder, all of our open sessions, including this one will be recorded and available to you to watch again at your convenience.


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BA: For our customers out there. We invite you to join us later in the morning for our product roadmap session and tomorrow for our customer only tech day. Now let's get to it. Our day to opener a rapid fire session with Bruce Richardson right behind and September. Hi, and


Rapid Fire Keynote hosted by Dario Ambrosini, CMO, Propel (DA)

Speakers: 

Ray Hein, CEO and Founder, Propel (RH)

September Higham, VP of Professional Services, Propel (SH)

Bruce Richardson, Chief Business Strategist, Salesforce (BR)


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DA: Welcome to Day two of propulsion, as I see you on my screen, Ray. Hi, Bruce Richarson, September. Higham thank you for joining us this morning.


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Bruce Richardson: Happy to be here. The morning


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DA: Wanting to we're doing a little something different. Today we're going to do a three way keynote. And the reason we brought you in here is Ray, you're a manufacturer and then got into technology.


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DA: Directly related to manufacturing or as you're an enterprise strategist who knows the pulse of the market where things are going


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DA: In September, you've managed hundreds of implementations. You work directly with companies that want to implement it individualized strategy and you've seen it firsthand.


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DA: So the goal here today is to bring the three of you get some different points of view and just see if we can talk about the events are the topics that we have here propulsion from your different perspectives.


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DA: So I'm going to start off with where we ended yesterday. Tiffany Bova and prior to that, Geoffrey Moore talked about this shift moving from the digital product, or excuse me, the industrial product era.


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DA: To more of the digital product era, the age of the customer the connected customer and having to make sure that your products are built and delivered with what customers want


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DA: And I just want to start with the three of you agree that we've seen this transition in the product era or in your product markets. We're now moving to the age where making customers happy is going to be key to success. Let's, let's start with you on this one Bruce


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Bruce: Absolutely. I think the consumer has always been in charge and whether or not the consumer is a business or


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BR: Someone shopping for the family dinner. I think they've clearly been in charge, what's happening, I think, is the balance of power has really shifted it used to be a relationship between


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BR: Say a CP G company and the customer. And now, thanks to cope with that brand loyalty is all dissipated. There's been a lot of studies out from McKinsey, including one last week.


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BR: It says compared to last year, consumers are more than three times as likely to trade down to lower cost brands or to change retailers. When shopping for a standard basket of goods.


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BR: Nearly half of Americans will spend more online and in stores. So the loyalty that they once had to a particular


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BR: retail shop or supermarkets changing. It's all about price. But one thing we don't know is whether or not this is a permanent change or is this something that will go back to whatever the new normal is postcodes


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BR: Now, the other thing I would add is


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RH: Go ahead.


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BR: Oh, I was just gonna say the other thing is there are still some brands that does that. All right.


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BR: The other thing I would add is that there's still some brands that demand strong customer loyalty. And I think, you know, the two that I'm going to name and that's Apple and Tesla.


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BR: People are willing to wait anything for them. My brother in law was so excited about the potential for Tesla's new million mile battery. That's all I heard about the weekend that


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BR: We spent with him. So there's a lot going on. But there's a lot of change coming for all of us involved in this industry.


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RH: And to build on your point about brand loyalty and just a cool products. I recently put out a LinkedIn post about a trainer barbecue will Tregger grill and


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RH: You know, it was really interesting. When I opened up the box. I had just as a child like delightful experience because the inside of the box is painting or it was printed like a cabin.


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RH: And so I flipped it around, but the cabin together when I was a kid, I used to put boxes together and play for us in the leg.


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RH: But it just brought me back to this really cool customer experience. They knew their customer, they, they sent it out to make it a really delightful experience from


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RH: From that to the mobile app to you know the the recipes that are online. So, you know, even though it was the first time I've ever bought one of their grills and high end barbecues.


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RH: I'm going to be a loyal customer forever just based off of that. But you know the other piece to to think about, like, the age of the customer and


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RH: Really, you know, it becomes business models. You know, it's about how do you sell. How do you win more business.


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RH: How do you maintain those customers and think about what people are looking for today. And when I think of those kinds of examples.


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RH: I think about companies like just know who makes volume 3D printers industry port on prem solutions and they recently launched a print as a service.


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RH: Capability as a business model and then a year ago, who's, you know, a hearing a company that has been in a long stayed area and kind of did something like


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RH: Warby. Did you know, for for eyeglasses. They've now taken earrings and made it so that the audiologist is not in the process that they'll send your hearing aids on


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RH: To you in a direct to consumer and so they've taken out costs in the in the business value chain but they increase that ease and ability


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RH: For people of age or whatever age that need hearing aids to actually purchase and will very delightful experience so


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RH: You know those kinds of shelves and people thinking about products as a service or better business outcomes for their customers.


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RH: I think is, is really what we're talking about, even you know anything about the age of BLM and bringing products to market. It's about how do you delight your customers in a long


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DA: Time, anything that


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SH: Well, he other challenges with manufacturers who faced this customer first product strategy.


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SH: Customers want new products available faster. They want them tailored to specific requirements like the length of time that a customer's


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SH: Product is viable in the market is very, very short. Now there's tons of products proliferating in the marketplace. And this makes me think of the challenge that our customer Vizio has successfully.


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SH: Successfully tackled so Vizio, as you know, makes TVs televisions and related equipment.


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SH: And, you know, talk about a fast paced market and talk about a market where you have to laser focus, what you're doing to the needs of the customer. If I walk into Costco.


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SH: I can buy a Vizio TV, but I can buy any other brand as well. And the competition is just for yours.


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SH: So Vizio needs to take its customers into consideration, but when we think of videos customers, the consumer, but also distribution channels.


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SH: So one of his iOS challenges was that in some of their distribution channels certain certifications are required for example if Vizio wants to sell TVs at Walmart, they have to meet certain certifications, things like FCC class be California prop 65 there's a whole bunch of them.


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SH: In fact, Vizio needs to track 56 different types of certifications and at any time they got dozens of products that are active in the marketplace right now.


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SH: And so Vizio made a really creative use of our propel compliance module to track these certifications. So at any time and it's not it's not enough to say, Hey Mark, I'm certified


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SH: Walmart wants to see all of the tests that were read all of the test results. Lots of associated documentation and so Vizio is very nicely using propel to store.


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SH: All of that certification information for all of their different distribution channels and you know as soon as Vizio gets done with a particular product line.


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SH: You know, people are working really hard and going to great heroics to get these products to market as soon as they're done. Oh, it's time for the spring release. Let's do it all over again.


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SH: So can I definite challenges with this customer first strategy, but you know some of our customers are doing a really amazing job at using propel to store this information and control it and actually meet those customer needs.


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DA: So Ray and Bruce, is I'm going to build them what some what September went down the path of some of the problems that this creates Bruce me talk about the balance of power shifting away from CTG


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DA: Whether this shift is permanent or not in terms of how some customers to change their buying behavior during coven


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DA: Anytime there's a movement from one place to another. Anytime it's uncertain if it's permanent or not you as a manufacturer any company needs to start figuring out how do you navigate these changes what types of problems. Does that create for customers, excuse me for manufacturers.


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BR: Well, I think the hardest thing is predicting the future and you know one of those announcements that I got most excited about and talk about it in a lot of presentations on on the future.


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BR: Especially the future of manufacturing was what Adidas, or it does was doing with the speed factory and they announced that with great fanfare, starting in about 2015 and then


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BR: Within a short amount of time. A couple years gradually close down all the operations, but that was they were doing a lot of things right, at least on PowerPoint.


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BR: Well you know it's funny. I went to their site today because I was trying to figure out what their lot sizes were because they figured out a way they thought


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BR: That they can be more profitable producing smaller batches of shoes versus doing giant runs of say 100,000 pairs at a time.


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BR: But some of the stuff they talked about on the website was reinventing manufacturing


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BR: Using Data Driven Design radical, radical accelerated footwear production open source co creation highly flexible and localized manufacturing


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BR: And they were employing 3D printing robotic arms computerized knitting all of that really cool stuff. And I remember meeting someone from the data saying


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BR: Hey, these factories could be open for tours to the public. He said, Oh, absolutely reach out to me now because I didn't reach out in time and have to take the time tunnel back to actually complete that


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BR: What actually happened was, each air required in the speed factory with the robots each pair required between 60 and 80 steps and as many as three different machines to attach the toe and the yield to the soul so


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BR: It was even though was using robots, it was still more labor intensive. So it didn't work, but it's an idea of all the right ideas.


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BR: You know, the idea that they were going to come out with a different to based on the major city that you ran into the London shoe was different than the


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BR: Tokyo shoe that was different than the Manhattan shoe, which was different than the sole shoe. Instead, the etc. Yeah, those are some great ideas or


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BR: What's a relatively modest problem, a pair of running shoes. A to build on that point, I was doesn't it does example one of our customers form labs.


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RH: I had worked with new balance. Now we're going to talk about running shoes for the next 30 or 40 minutes but you know the the 990 sport triple sell


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RH: Product. The heel is 3D printing using a form lads printer and, you know, to build on your point. Bruce that the industry, you know, high performance runners that are willing to pay.


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RH: Two or $300 for a pair of running shoes, you know, as you mentioned, people are willing to pay more, you know, if it's for them, you know, so this movement to mass customization, personalization is everywhere.


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RH: And so, you know, the constraints of rigidity and traditional manufacturing disappear when you start to think about having, you know, 3D printers like desktop metal or form labs that are


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RH: You know, creating new products that couldn't have been made without, you know, these great new industry core nano technologies from from these companies.


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RH: And so, you know, we what we really see and why traditional PLM


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RH: doesn't keep up you know with this change in the market is traditional PLM was focused on either one of two things in my mind, it was


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RH: High want high volume, you know, high volume. And it's actually with consistent villain material.


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RH: Or it was for like long life cycle, you know, in highly engineered companies like planes, trains, and automobiles.


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RH: But the vast majority of the companies in the world don't fall into those two buckets. And so this whole era in mass customization and personalization.


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RH: You know what we would think as engineer to order designed to order or what we call custom engineering products is changing the world and


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RH: You know, so if you talk about the age of the customer, you know, Gen Z or millennial buyers, it's you know, it's kind of the Burger King model out of it, you know.


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RH: And and so the manufacturers now need to keep up with that personalization and customization to one initially when the customer and then tune from brand loyalty and keep them forever.


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SH: You know, when we talk about manufacturers meeting this challenge for digital transformation.


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SH: I mean we digital transformation as a buzzword that we hear a lot lately. And, you know, our goal is to make things faster.


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SH: Have a unified digital strategy. And in fact, we have a customer panel coming up a little bit later called Go cloud for the win.


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SH: With Sierra monitor and find can Salesforce and Sierra monitor and fight have some really interesting manufacturing examples of really having a unified digital strategy.


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SH: But Bruce and ray because you talked about sneakers. I think I


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SH: I just can't help but bring you to the bottom of the ocean and talk about a digital strategy that is really, really working. So, so bear with me. I'm going to try not to get too geeky on you, but


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SH: I gotta tell you about our customer see veggie geo solutions interesting unified digital strategy. So what what see that does is they make these things called nodes. They're the size of a suitcase.


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SH: And they drop them down to the bottom of the ocean to map the ocean floor. So they drop these things, they'll, they'll drop a whole bunch of these little suitcases called nodes.


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SH: 3000 meters down into the ocean. I mean 3000 meters is what when I go scuba diving 20 meters i max out so 3000 meters and they'll drop them down, they have something called node on a wire where these are tethered


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SH: To a boat on on the surface or they can be deployed by remote underwater vehicles, but


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SH: Basically, it is a harsh environment at the bottom of the ocean. And so when these nodes are doing their mapping and they do this for the oil and gas industry mapping the ocean floor.


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SH: When they're, when they're doing their mapping, we expect a certain amount of failures is a really, really harsh environment, but


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SH: That the difficulty is see potential solution contracts out with customers to do this mapping for the customers.


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SH: And if the nodes have a certain threshold of failure. See, Ben has to go out and do the mapping again. So these boats will go out for a few days at a time.


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SH: And if they don't get the results they want. They've got to do it again and hasn't really really expensive.


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SH: So the challenges that these nodes were transmitting real time data to the boat and then this data from the bone eventually trickled back to a central server.


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SH: And once a week and quality committee would get, get the data from the central server and analyze the data and try to figure out


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SH: Which nodes were failing and why they were failing and, you know, that was working reasonably well. But definitely needed some improvement.


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SH: And so let's see that did is they implemented propel and got their design data into propel so we know you know


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SH: How the nodes are actually constructed. But even as important. They got their asset data into into Salesforce and propel so propel now knows only the notes. I know 23 notes 67 notes 78


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SH: What node was built to what design and what components. I know I'm using battery pack revision be on know 23


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SH: And now that we had 310. And we're from that central server that hosts the failure information we're feeding that failure information back into propel so so bear with me. I promise that small take forever, but


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SH: can propel we've got design data failure information and asset data.


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SH: So now this quality committee, they need every single day and they can say, okay, we know that these three nodes on the ocean floor failed, what is common about these three nodes.


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SH: Oh, I can see the date of manufacture, because I have the asset data. And I know that, oh, these nodes were all using the same battery pack.


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SH: This provision previous revision of a battery pack. Hey, let me notify the boat. That's out to Jay and let them know that they might have some issues with these nodes so that they can mitigate those issues while they're still out and we don't have to rerun


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SH: That's that ocean survey. I know this was a really, really long example but these sorts of challenges are just elegantly solved by getting


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SH: All of the data into one place. I mean, the unified digital digital strategy is really, really important. And the cost savings can be huge.


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RH: I'm going to just add on to that maybe some summarizing the couple ways one. What you're talking about is that customers see that you know they're working with


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RH: Shell, Exxon Mobil or whomever their end customers expecting outcome that they're going to get mapped you know Nap. Nap data points from that ocean floor and understand when you're there's oil.


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RH: They're not so it is all about business outcomes that they're getting paid for. So it's a different business model and which is what we were just talking about.


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RH: But number two, you know what you're talking about is a platform that is flexible and extensible to handle that kind of a use case, if you will. And, you know,


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RH: There's a lot of people talking about digital transformation and digital twins and digital threads and what you described it, most people would not associate


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RH: Salesforce and propel with really having an amazing solution to handle that design data from the front end to the asset data.


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RH: To really connect the front to the back, you know, or the digital twin, the digital thread as you described.


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RH: But you know, that's only one case we have numerous others that are doing something similar as well with


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RH: You know mapping not not being ocean close with, you know, autonomous submarines and and those kinds of things. So there's some really cool companies when we start to connect the customer in the asset record.


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RH: For the design data and then different use cases for business outcomes. And to me, that really is the big shift, you know, for this whole notion of digital transformation is that digital twin digital


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DA: Bruce let's dig into that maybe a little bit


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DA: You know, and I just want to summarize, because we went into a few different tangents which I appreciate, but we talked a little bit about market uncertainty that we regulations competitive environments.


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DA: mass customization September, you brought up the whole concept of the United platform and how that is helping seabed.


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DA: So, you know, when you think about navigating this environment is this united platform or just platforms in general, is this the way


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DA: To just make sense of all of these different areas that need to be navigated and all of these challenges are are platforms, really the key to a digital strategy or as an effective one


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BR: Absolutely I would say that it's the platform. It's cloud. It's the world of interconnected API's.


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BR: It's analytics. It's visualization and it's being able to find out what's happening in right now. It's AI to tell you what's happening and giving you a warning of what could happen. So I think the platform has taken on an enormous


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BR: Role of responsibility as we go forward here, so I'm really excited with some of the stuff that propels going to push us further so


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BR: I didn't think it's just a very exciting time to be in technology. It's a lot better than when I started, where, you know, the world was all mainframes and, you know, you understand the intricacies of soca and I don't even want to go down that path. It's too thing.


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BR: But yeah, I think the flexible platforms, everything. And I think the speed with which you can do things we've given a lot of customer examples.


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BR: But probably my favorite story occurred one night, Ray and team invited me to a dinner at a restaurant in Burlington mass and I happen to sit with some really smart people.


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BR: Including a couple from the 3D printing world and they were talking about this effort. They were doing with Salesforce health cloud and propel and the 3D printing company was also teaming with a cab company to be able to create


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BR: prosthetics. This was in the, you know, after the Boston Marathon bombings where. Unfortunately, a lot of people lose limbs that that race and


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BR: Know if that happens to you, you don't have a prosthetic for life keeps changing. And so the idea that we were going to involve


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BR: Propel 3D printing a cab company to me. It was just amazing how quickly things could go and really demonstrated that if you have the right platform. You can move at the speed of light.


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RH: And it to build on that real quickly, unless you need to jump to the next please jump in.


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RH: Now, Bruce talking about was, you know, on shooting, which is 3D CAD in the cloud. So, you know, this group wanted to really do a cloud first initiative.


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RH: Which I think plays into the whole platforms themselves in digital transformation that


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RH: You know, it's not just about moving to the cloud, but it's leveraging you know the value of the cloud and what you can do for integrations.


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RH: As well as, you know, the collaboration aspect that's there and so


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RH: You know, when I think of platforms. I kind of put them into buckets. You got the CAD plantains which mechanical CAD, and then kind of the traditional old PLM still in focus there.


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RH: And then you've got kind of the, the year P platforms SAP and Oracle kind of in the middle and then you've got Salesforce, which has been a business platform, much like Apple's iOS.


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RH: Salesforce had built a platform that allowed many, many companies, you know, thousands of companies to build partnerships, which is why we built


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RH: Propel on top of Salesforce is technology stack. And then you've got, you know, the Amazon, Microsoft and Google Cloud Platform, which are kind of generic cloud platforms as well, which are real more hosting platforms for scale.


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RH: But, you know, in our case, the platform that mattered was to choose a business platform.


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RH: And our choice because we thought at the age of the customer, the only choice and having prior experience working on the Salesforce platform.


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RH: Was to choose Salesforce, because we wanted to connect the customer with the product and inherently we got that kind of out of the box.


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RH: And then we had the technology platform that you know 15 years of market leading in the cloud, with all the security.


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RH: Shield controls or, you know, passing high high end security controls. Having the ability to have analytics and reporting and mobile, you know, available so


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RH: For every dollar I spend era propel you know we're able to focus on solving business problems not building a technology platform and


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RH: Underneath us so we can do innovative things like September pointed out, either in our core product or kind of in a low code no code.


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RH: We can configure in really solve business problems that the customers want you know faster than ever. So our technology maturity.


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RH: Of the Salesforce platform is absolutely the right thing for us. And I think there are platform wars that are going to continue the meetup.


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RH: SAP and Oracle of fighting a platform or right now, you know, Salesforce has its ability. That's amazing. And then the CAD guys, you know, the traditional guys are trying to move from legacy systems to moving to the cloud.


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RH: But more in the Kansai not solving these enterprise, you know, problems that that propel songs


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DA: So September, going back to you've actually implemented a lot of these. I want to see it. Does your real world experience match with Bruce and re are saying are you seeing more customers who want to implement


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DA: Particular piece of software as it fits into a larger platform or use the larger platform strategy.


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SH: It varies. So some of our customers want very, very simple things and they may not already have Salesforce, for example. So some of our customers may say


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SH: Only want to do is document control. For example, we have a customer to Italy called meta, meta trial and they came to us and said,


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SH: We have highly sensitive documents they ran clinical trials, but they also do some medical forensics works in their labs. So they have kind seen investigations, they had


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SH: really sensitive documents and they came to us and said, We just want to do some document control.


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SH: We want to make sure that the right people can see the right documents and we're not sharing too widely and we want to build some sophisticated document trees like a bill of material with documents.


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SH: I kind of laughed and said, That's it. That's all you want to use propel for it's like buying a giant house and just living in the front entryway


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SH: And that they've been wildly successful they needed to do something really simple and they're doing it and they're


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SH: Absolutely happy with it. Now, other customers. By contrast, may already have Salesforce and so they do have grander ideas about what can be done by using PLM


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SH: And maybe QMS on a platform but connecting with assets connecting with customer records. So it's really about half and half. I would say half of our customers.


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SH: Already have Salesforce and so they understand the value of a platform that's so powerful other customers just wanted to document control system or a standalone pls system.


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RH: You know Daria just add one more plane. And it's really about that flexibility in its kind of start anywhere go anywhere. So will that foundation or that platform.


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RH: Scale with you as your business use cases in these change and you know prior lives by, you know, I was one of the early guys and agile software and


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RH: And at Century software and the retail footwear apparel side and the platforms were pretty rigid and, you know,


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RH: We've been in a prior life before getting into this, I implemented an old system called Sherpa back, way back, you know, in the early 90s. So maybe we'll talk about that later, but


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RH: But those systems were rigid and you know once you configure them and set them up you know it was way too costly to change. And so the ability to starting we're going anywhere and configure as you go.


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RH: Is radically different in and those are the beautiful things that we're seeing with almost every one of our customer Weiner cheating us first


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DA: Okay, multiple strategies. Some focused on platforms, some not. And I want to tie this back to what


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DA: Another thing that we covered yesterday with Tiffany Bova, she said, we don't have a technology problem, basically the technology is there to do what you want. We have a people and a process problem.


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DA: Is that, like, really the key here. Going back to there's flexibility. Some people want a platform, some people don't. Is this just a question of them, figuring out what they need and then finding the right technology right people to lead it in the right process to manage all of it.


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DA: I don't know. Who wants to take this one. Bruce, we'll start with you. 


bOkay, I agree with Tiffany that it's a it's more of a people in process.


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BR: And I think if you talk to a lot of companies to say, you know, we just, we don't have the right team to be able to do the all the digitization that we wanted to. So we're gonna have to go outside and


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BR: You know, some companies, the whole management team, the executive team gets it and they understand the urgency and others. They just don't. They're saying, hey,


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BR: You know, we'll work on something, but we're going to delay until we're all back in the office, you know, once it's gone.


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BR: You know when that ends. No one knows. So I think there's a lot happening. I think also funding for the projects, too.


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BR: And we'll talk about that later. I think you really have to focus on right up front, finding the value that's coming up in every conversation now on project.


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BR: Before you do anything because you have 1,000,001 interests in things that you could do so, which ones get selected.


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BR: Because this is not like you know doing ERP and 1990 or 91 we had to do big bang, even if the products weren't close to being ready you spent a fortune. So I think here. Everything can be incremental as


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BR: To September just said that you know you can go into your kind of own own pace.


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DA: September,  Did you have some that well okay Daria so I've spent my entire career working directly with customers. And so I just can't help bring up things that we've done with customers, but


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SH: Since you mentioned process. I gotta tell you about this company called CULP so CULP came to us and they make mattress covers. I mean, really nice mantras covers I use a mouse was covering us the masters cover. So we like these guys a lot


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SH: And then they had to do a major pivot when COVID hit. So let me tell you what they were doing with process. So this customer was communicating with factories.


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SH: giving information to these factories from various departments within Coke and you might imagine in the textile industry that these factories aren't necessarily the most


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SH: Digitally responsive, like maybe they don't want everything electronically.


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SH: So CULP had to put together for the factory something called a product specifications product spec and in the electronics world. I think we all understand what that is. But in the world of textiles.


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SH: A product spec is a very, very sophisticated document with data compiled from many different sources. For example, a co op product spec would have photos of different parts of the assembly process, it would have materials specifications. It has a bill of material. It has


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SH: Sometimes even manufacturer information about what the zipper. Are we going to use what elastic. Are we going to use this product specs.


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SH: Are multi page documents that really pulling data from from so many different places and CULP challenge was that


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SH: Putting together a single product spec was a Herculean effort and gathering information from different parts of the company.


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SH: They also had something called a sample request that's very, very common in the textile or the fashion world and the sampling requests were also


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SH: pretty sophisticated documents. So what I wanted to do is they wanted to pull all of their product information and their contributors to the product information.


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SH: Into one database. And then, and can I want to get too much into the details, but I'm kind of proud of this.


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SH: We took our document merge functionality and cope and we merged all of the information into a product spec. Now what that means when our document merge functionality is


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SH: Is we can have a Microsoft Word template with tags to say drunk. This field value here. Drop this field value there drop this photo here.


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SH: And so we use this document merge functionality to build a very sophisticated products at which could be quickly assembled incentive customers so mattress covers, they're great, but then COVID hit


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SH: So when code head there was an immediate need for PPE and CULP was perfectly suited to pivot.


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SH: Not because they had all the data for their key products in one place. They didn't have any data at all, but they had a process that they had very carefully curated and built into the system. So they were able to pivot from mattress covers to PPA very very quickly and respond


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RH: Yeah, I think I you know I mentioned a little bit about that yesterday, September I think they said they went from


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RH: Kind of spec and first prototype, you know, to getting getting ready to ship them like 10 days which they had never done in the history of the company for a very large


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RH: Mattress pumping. So that's a great point. But you know, I think it varies. You know, when we think about processes and people


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RH: I get really varies. It goes back to, you know, the type of company smaller you know SMB companies young companies.


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RH: They need stronger leadership and focus, they want, you know, out of the box, best practices. They want a point of view.


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RH: So they want a system that comes in is simple and quick to deploy with a strong point of view, the enterprise companies that have larger grander lofty goals to integrate to


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RH: Many, many business systems like you'll hear from ASP where they retired, you know, dozens of systems. I think they had 300 and enterprise business systems, went down to about 100


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RH: And I think propel them, you know, reduce you know somewhere between 15 and took me down to maybe six in air quality management in your PM side.


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RH: You know, you have to have the ability to think about you know where you want to go.


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RH: In the last piece with this is, it is people in process, but so many times people have worked on just thinking about the technical implementation.


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RH: And not about the business goals and how are they going to derive value. And I think that's the big one of the biggest challenges with these successful


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RH: Enterprise transformations. You know, when we talk about it. Is it people in process. So, that is the business.


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RH: Really know what good is and identify what good is so that is a technical technical good and there's a business day so that you understand that you're really getting the value out of whatever technology you deploy.


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SH: So Ray, I can't help but notice that you mentioned ASP. So I'm just kind of plug in upcoming panel grow and scale in a regulatory world and with with ASP.


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SH: I mean ASP talking about process they add up. I'll let me talk about it in the forthcoming panel, but they have done amazing things in a short amount of time, but of course ASP makes me think of


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SH: You just announced this morning re propelled her medical device.


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SH: And one of those can put. I mean, there's three components to that that you described, one is he. If you electronic has instructions for use


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SH: One is a global product registration and one is a regulatory reporting to the FDA through med watch so I'm trying to talk a little bit about ca tell, and there he is your project. Yeah, I mean, okay I since we're on the subject. So


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SH: eIFU, I guess, not all of the people listening to this panel are med device customers and he if he means electronic instructions for us.


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SH: So there is a directive that medical device companies in the spring need to make all of their instructions for us really their user manuals.


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SH: available to the public on electronically. And so this means that companies need to build websites to deploy their, their user manuals and it's actually kind of a


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SH: Complex question because a company like can tell has hundreds of products. They've got manuals at hundreds of languages and those manuals may vary in content from country to country. So


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SH: A manual for product in English in the US might be different than a manual for the same product in Canada because the internet abuse is different. It's a really complex equation with lots of variables and so


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SH: Cantell is is an all of our med device customers really are tasked with tasked with putting up these eIFU sites online.


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SH: And the first thing that would come to mind is, oh, well, we'll build a website and we'll make PDFs of our instruction or user manuals available online but


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SH: Think about the complexity of trying to maintain a separate website with all of this information.


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SH: The instructions for us are already in propel they're already under revision control and propel. So why do we want to push that to an outside website. Think about the complexity of constantly Revisiting these manuals and obsolete in old ones and then the


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SH: Complexity of languages and location and intended us. What if we could build a website with him the Salesforce environment because Salesforce a propellant already have that information.


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SH: And so that's what can't tell us doing with our E. If you module, we are building a customer community that's just another word for a website.


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SH: Within Salesforce, so we don't have to push data anywhere that website sits within Salesforce and it's just going to selectively read the data.


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SH: That we have made available to it so super excited about what can tell is doing with the if you and really pretty excited about our whole medical propel for medical device in general.


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RH: So so Daria just to add to that, and build on it with September saying is you couldn't do this before. If you didn't have the customer data in the product in the same


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RH: Environment is because customer has bought a particular product. And so now you're able to serve this up in an easy way knowing


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RH: who the customer is what asset we buy and then link that customer and product data in transit we gather


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RH: But, you know, I'm going to throw it back to Bruce here maybe to chime in on it. Bruce and I lived in this world forever. And what this reminds me of


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RH: Is, you know what, September talked about our environmental compliance any anytime you start to see, you know, regulated industries that have new compliance.


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RH: Restrictions or new new compliance mandates thrust upon them. You've got to react. You don't have a choice of actually, you know, doing something we saw it with


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RH: ROSS You know restricted hazardous substances, there were Sarbanes Oxley, back in the day was financial


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RH: But boy, the medical device industry is absolutely regulated and they get more and more mandates, and it's not only this he if you but the global product registration.


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RH: You know, as you get certified for sale in any new geography, you have to go through the global product registration process. So for me, Bruce. You can try then that


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RH: You know this connected customer plus product and these mandates it's never going to stop and so do you have that foundation on a platform that allows you to quickly adapt to the business model change or that


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RH: The compliance mandates that come at you in a low cost matter because most people feel like, boy.


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RH: I would never do this, but I have to now it's kind of, it's kind of like paying your taxes when you have these mandates that you as a business model and you just have to do it as a cost of business but Bruce I don't know if you have anything to add to that as well.


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BR: Oh, you know, I just want to add my favorite med device story for propel and that was back in. I think it was April, I know you'll have the exact dates when


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BR: There was huge pressure to produce a lot more ventilators than we're currently planned to be built.


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BR: And I think the estimate was we're going to be at least 70,000 ventilators short and I can still close my eyes and see for Governor Cuomo


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BR: Talking about the number that he was going to need in his State alone and pleading for


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BR: faster response to building this and Medtronic went out and made their product available open source one of their older products made it available open source.


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BR: Within a short amount of time. I want to say a weekend your team. Ray had taken all of the products specs. I think the approved vendor list.


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BR: Parts List all sorts of things like that and made it available on the profile platform for anyone that wanted to build an open source ventilator.


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BR: Ironically, we did see tons of usually University led initiatives to produce ventilators. So it's just amazing how fast people could move and just what great initiative in speed propelled showed and operated on


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RH: Thank you. Thank you. It was one of the really probably one of the best


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RH: Things that I'm proud of that. My whole propelled team that solution consultants September's team, the product team all rally together and


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RH: We pulled it together. I just said it was about a weekend to get the initial piece and then within a week and a half, we had


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RH: A whole community of we had launched it. We had hundreds, hundreds of people register in the community. And so it was a hub and spoke community that allowed people to see where that data. So


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RH: It really it was with the intent to see and hopefully help people get there from here and build ventilators, but what it really showed, as well as the notion of


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RH: Connected networks and kind of value chains that can be quickly stood up and that the notion of a community in a secure man in a cloud was absolutely possible in a rapid manner.


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DA: So, you know, connected communities fast time to launch September you talking about just this whole you know customer data together.


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DA: That's one end of the spectrum of where we are today. And I don't know how. Audience groans work in the virtual world, but I'm pretty sure we heard it earlier. When Bruce, you mentioned, ERP around 1990


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DA: I know I definitely heard it in my head. So you know if you think back to the, you know, call that I do quick math 30 year evolution here on the, you know, enterprise software side.


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DA: Where we were saying the 90s, to where we are today. Like, how did we get here and I think more importantly the context is, where do we go maybe the next 30 years is too long, but the next 5-10 years


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DA: Where does this trend lead us. I'll give that back to you very soon to the one who brought up the European


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BR: Really, you know, it's funny. I think there's a lot of parallels to the late 80s, early 90s. And today, you know, I was thinking about this. I remember meeting Dr. Michael hammer


280

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BR: He was charging a small fortune for consulting projects, he had written a seminal piece for Harvard Business Review on the engineering the corporation.


281

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BR: which later became a best selling book and you know made America zillionaire unfortunately you didn't live long enough to enjoy all the fame and success he had he died at 60


282

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BR: But if you think about the rise of business process reengineering at the same time, we had the emergence of client server and


283

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BR: The approach was that what the thinking was that the mainframe that become the enemy was too expensive require too much specialized town.


284

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BR: Let's go with all this new technology, even if people hadn't figured out what clients are actually meant and how much more expensive. It became when you gave everyone a PC and


285

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BR: You know they had their own storage and we're loading their own apps that became a challenge to to manage and then


286

00:46:44.250 --> 00:46:53.220

BR: You know, next to the RP vendor, the most important people were the extensions and the pw seas and the Ian wise, etc. Who will help you with the system selection.


287

00:46:53.700 --> 00:47:03.720

BR: And then we'll go into the implementation and you know if you stayed on a project long enough, you'd make partner. So if you contrast that now with what we have.


288

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BR: PPR has become digitization, and I don't go a day without at least a couple of customer conversations about how do we digitize all the stuff we have


289

00:47:15.480 --> 00:47:25.350

BR: Client server, I would say, you know, you owning your own data centers now is going the way of the cloud and the world of API's and platforms, as we talked about


290

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BR: I think ERP still exists will likely always exist, but it's not the most important investments that you're making going forward that I think it's


291

00:47:36.240 --> 00:47:42.030

BR: Architectures today are being built with the customer in mind. I'm not saying, necessarily, we're starting with CRM.


292

00:47:42.360 --> 00:47:59.400

BR: But what I am saying is new investments that we're making are all designed to make it easier to do business with my company or your company. So I think that's the way things are switching in terms of what does the future look like five years from now, I think we're just going to take


293

00:48:02.250 --> 00:48:07.650

BR: We're just going to get used to the idea that there's more and more AI and machine learning and everything.


294

00:48:08.340 --> 00:48:13.890

BR: I think we're going to finally figure out the robotic stuff. How robots and humans will coexist. There's a lot of


295

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BR: Cobot initiatives going on now and I'm working with some companies that are doing it in the grocery and retail business and it's a huge opportunity there.


296

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BR: I think visualization becomes increasingly important in terms of how you see the data and how you react to it. And I think we're continuing to provide tools that


297

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BR: You know, make software so much easier to use. I can still remember the first time I sat down at an IBM PC and the first thing that popped up was a colon.


298

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BR: I mean I had been used to Wang word processing system that out of, you know, idiot proof menu. I had no idea what to do with a colon or C colon. So I'm a big fan of ease of use since like everybody else on this call. I don't read the manual my go to you to


299

00:49:02.430 --> 00:49:07.110

BR: pay his bills on that I'm, I'm a few years younger than you but you know in my


300

00:49:07.650 --> 00:49:16.230

RH: Junior year in college. I bought my first IBM can see in 1980 and it was a colon sequel, and it was like a 16 K dual floppy, you know,


301

00:49:16.800 --> 00:49:25.800

RH: The word star systems, I, I get your point. So, moving from there to where are we going to be in the next five years, you know, die. I think


302

00:49:26.460 --> 00:49:36.450

RH: Geoffrey Moore, you know, spoke yesterday about zone to win and the age of the customer, but there was a great blog post that Dr. P put out. I don't know, maybe two or three years ago.


303

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RH: And he talked about digital transformation, kind of in what I would think is a Capability Maturity Model. And yet, you know, four or five steps along this journey, you know, the first step was


304

00:49:49.260 --> 00:49:59.130

RH: systems of record two systems of engagement to then systems of analytics and systems of insight to then systems of disruption is bloody Adams highest tier


305

00:49:59.700 --> 00:50:07.230

RH: And I think what's changed. I think since he wrote that in my mind is that systems are disruption our systems of outcomes.


306

00:50:07.710 --> 00:50:17.910

RH: And as I talked to more CEOs and CIOs and Chief Operating officers or chief revenue officers. They want better business outcomes.


307

00:50:18.360 --> 00:50:30.150

RH: And so how do all those foundational steps we've got it goes through and have the records there. You gotta have the engagement. You've got system of engagement by leveraging channels everywhere. Not product which is super cool for


308

00:50:30.660 --> 00:50:34.500

RH: Contextual collaboration. We've got analytics and dashboards, you know,


309

00:50:35.340 --> 00:50:43.950

RH: All over the place, you can get some more data and propelled and you can get into any to propel the sales force in any other business systems just by the bluejeans platform.


310

00:50:44.880 --> 00:50:50.340

RH: But to Bruce's point machine learning and analytics and AI kind of the next step. It's starting to happen.


311

00:50:51.030 --> 00:50:56.730

RH: In different ways when you start pulling in that connected data like September talked about in the Seabed piece.


312

00:50:57.090 --> 00:51:05.130

RH: And then having to visualize it by maybe using tablo or other visualization system so that the business owners can actually really garner their insights


313

00:51:05.580 --> 00:51:13.530

RH: But it starts from what outcome. Do you want and then now. Do you have the systems and the tools underneath it to support the business and grow.


314

00:51:14.130 --> 00:51:23.610

RH: And so, you know, getting yesterday I introduced kind of a notion of a triad of a chief product officer chief revenue officer and chief service or customer success.


315

00:51:24.180 --> 00:51:39.060

RH: Those are the folks that are being held accountable for revenue goals market share and rose to the products work, you know, is it at the right quality. Are we having quality escapes and failures on that side. So to me this path.


316

00:51:40.260 --> 00:51:51.000

RH: That's really the next three to four or five years. And there are companies, small companies may still be on systems of record and system of engagement to September's point just getting the baseline stuff going


317

00:51:51.450 --> 00:52:01.860

RH: But medium sized companies and in bigger companies that really are going to be breakouts need to go through that digital transformation journey all the way up that ladder and


318

00:52:02.520 --> 00:52:16.830

RH: An employee every soul and then get the business mindset was crucified about the business process reengineering the big you know GS eyes the centers and the voice of centric. One of our other other partners that we talked about, as you know, as well.


319

00:52:17.910 --> 00:52:25.650

RH: They're working at the big business level to talk about companies where they want to be three to four or five years in your business goals.


320

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RH: And then making sure that they've got the foundation and the technology platforms that are going to allow them to stair step up to meet those business goals and business outcomes.


321

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SH: You know, both of you Bruce and Ray you're talking about all these wonderful things that are happening in the future. And all of these sophisticated tools and opportunities, but I'll tell you what, I have a fundamentals gal. I mean, sometimes


322

00:52:51.030 --> 00:52:57.300

SH: I mean like Yesterday we heard a lot about supply chain management and they're storing on shoring de risking


323

00:52:57.900 --> 00:53:03.510

SH: And, you know, we've got tariffs to trade wars and people say, Well, can we really decouple from China. I mean,


324

00:53:03.930 --> 00:53:09.330

SH: It is fundamentals that solve those problems. I mean fundamentals of core pls


325

00:53:09.720 --> 00:53:14.730

SH: I mean, Bruce. You were talking about back in the dark ages. You got to see prompted a for option.


326

00:53:15.030 --> 00:53:31.350

SH: I'm thinking about something that I encountered in the early 2000s, which really hit home fundamentals are important. So this is before propel even existed. I was working for another software company and on prem PLM on solution where radius to work too.


327

00:53:32.760 --> 00:53:41.970

SH: And my customer was leap frog. So leap frog makes really cool children's toys and one of the toys. They made without talking globe.


328

00:53:42.300 --> 00:53:50.400

SH: So an elementary school kid would would take this talking globe and they would take a pen and point to a country and the globe would say this is Afghanistan.


329

00:53:50.670 --> 00:53:57.630

SH: Or the globe and ask some questions, like in what countries do they speak French, and the child would touch the different French speaking countries.


330

00:53:58.020 --> 00:54:07.440

SH: coolest toy ever I had elementary school children at home at the time when I was doing this project, but we tried I'd bring these toys home all the time. It was wonderful.


331

00:54:07.830 --> 00:54:13.230

SH: Well, we probably had an issue with a contract manufacturer in China and


332

00:54:14.010 --> 00:54:22.740

SH: The artwork for the globe was defined to be x and the contract manufacturer in China kept messing with the artwork. It was particularly Taiwan. That was the issue.


333

00:54:23.070 --> 00:54:32.640

SH: So China was in purple and China was in big block letters and Taiwan was made to be in green with big block letters as if they were two separate countries.


334

00:54:33.150 --> 00:54:46.380

SH: Chinese contract manufacturer kept messing with the artwork and we would receive a shipment of gloves where China was purple and Taiwan was purple and Taiwan within two letters as if it was a Chinese Providence.


335

00:54:46.980 --> 00:54:53.610

SH: So leap frog was having some quality issues at the time. Also, and they just just got fed up and decided


336

00:54:54.090 --> 00:55:00.810

SH: We want to move contract manufacturer. So we want to pull this manufacturing out of China, and we want to move it to Mexico.


337

00:55:01.560 --> 00:55:10.410

SH: And so they quickly found that that was impossible because their Chinese manufacturer had been doing some of the design for their products.


338

00:55:10.890 --> 00:55:20.280

SH: And so leap frog didn't have their product record in house they had pieces of it, but many of the important pieces were owned by the contract manufacturer


339

00:55:20.580 --> 00:55:27.150

SH: And the CM was not really forthcoming with the information for obvious reasons. And so it was


340

00:55:28.020 --> 00:55:34.560

SH: It was just a huge struggle for leapfrog to gather all of that information together to have really long time and lots of effort.


341

00:55:34.920 --> 00:55:42.570

SH: But again, that just brings me back to the fundamentals. I love everything that's coming but company needs to get the product record.


342

00:55:42.930 --> 00:55:56.790

SH: Organized in PLM and then we can do more exciting things with it. I mean, I'm sure what run out of time. If we don't, I want to tell you about one plant TECH IS DOING WITH end to end customer story, but I will stop talking and if someone else to turn


343

00:55:57.840 --> 00:56:05.850

RH: I'm just going to add one point what you're talking about his business. Resiliency, you know, and they needed to worry about, you know, second sourcing


344

00:56:06.540 --> 00:56:16.860

RH: Or manufacturing that way. And, you know, as we talked to a lot of our customers. Now, especially during coven. It is about having the flexibility and business resiliency of being in the fungible, and


345

00:56:17.430 --> 00:56:30.060

RH: If they want to go from China to Mexico for tariff reasons or whatever, you know, will do they have the technology and the ability in that and the security to actually get that that flexibility in their business.


346

00:56:32.730 --> 00:56:41.190

SH: And, you know, Ray that and verse two, we were all around in the 1990s. I mean, right. I worked at SHERPA AND YOU WERE A customer service.


347

00:56:41.940 --> 00:56:52.260

SH: Only we're trying to do. There was parts deliver the material and engineering change orders, we did three things. And we were really, really proud of ourselves and


348

00:56:52.590 --> 00:57:01.350

SH: We were writing little customization, like let's send out an email at this point of the workflow. Oh, it was awesome. It was, it was good times.


349

00:57:01.740 --> 00:57:09.420

SH: But we've just come so far. I love the fact that we can now I guess I can't help but talk about blind tag. You know what Blentech


350

00:57:10.170 --> 00:57:15.210

SH: They make engineered to order equipment great big blenders. The size of the bathroom.


351

00:57:15.630 --> 00:57:24.420

SH: And they're able to take, take the customer request build a Salesforce opportunity when the opportunity matures, to a certain point that


352

00:57:24.750 --> 00:57:30.540

SH: They automatically generate a propelled projects that project consolidates all of the documentation.


353

00:57:30.840 --> 00:57:42.360

SH: That's needed for that opportunity when the opportunity turns into a sale, they start to assemble the bill of materials. The push it out to rootstock here RP, which is on the Salesforce platform.


354

00:57:42.660 --> 00:57:49.170

SH: And they do field service, which brings it back to the customer. I mean this end to end customer journey is real.


355

00:57:50.220 --> 00:58:03.390

RH: You know, Bruce. You should. I don't know if you want to chime in here all 


DA: yeah we've got about two minutes left. So if we want to just wrap this one up if you got something, Bruce. Let's uh yeah let's go there.


356

00:58:05.130 --> 00:58:13.800

BR: No, I just think this has been a great discussion and I'm so pleased to be part of it. Really appreciate the invite from propelled to to do this.


357

00:58:15.360 --> 00:58:18.660

BR: I've met with Ray. I've known Ray for a long time.


358

00:58:20.280 --> 00:58:27.720

BR: But I've met with him days after he started propel and I was so excited about. And we had a long conversation about


359

00:58:28.110 --> 00:58:40.080

BR: To the built on the Salesforce platform. And I thought it'd be a great opportunity because he'd be have the unique positioning and being the only pls vendor on the platform and that


360

00:58:40.890 --> 00:58:47.550

BR: To me, this is the PLM is such a critical part of everything you're going to do to improve the customer experience so


361

00:58:48.030 --> 00:58:55.740

BR: The more input you can get from customers and what they want to see on the product, the faster you can feed those needs requirements or changes.


362

00:58:56.280 --> 00:59:02.310

BR: Get that into propel the faster the new products come out the new way you're serving clients, whether it's


363

00:59:02.670 --> 00:59:14.820

BR: You know, looking at designing for sustainability or thinking about doing upgrades over the year. I just think there's there's so much potential here that I'm really glad to have you guys as a partner 


364

00:59:15.540 --> 00:59:23.220

BR: I encourage anyone that's not a customer to take a much closer look at transforming their business with you guys so again. Thanks for the invite.


365

00:59:24.450 --> 00:59:33.840

RH: And it's a thanks Bruce thanks for being a fan of propel and, you know, thanks for being one of the guys that don't define PLM back in the day when you're at a Mr. In, in a gardener as well but


366

00:59:34.800 --> 00:59:45.090

RH: Maybe I'll cap it off here D'Addario maybe read it further, one at a time. But what Bruce has talking about you've heard me say Daria dead product development product launch


367

00:59:45.660 --> 00:59:49.620

RH: You know there's new product introduction product launch and then there's aftermarket service that


368

00:59:50.340 --> 00:59:56.970

RH: Product success is a team sport that everybody that you know it's a unique


369

00:59:57.360 --> 01:00:04.290

RH: Product record that everybody touches the product, you know, whether it's from concept to design to make market sell and service.


370

01:00:04.590 --> 01:00:11.790

RH: Or product interactions and processes that everybody touches. And so, you know, you've heard September.


371

01:00:12.390 --> 01:00:17.910

RH: Really get excited about some of the cool things she's implementing at our customers and many many more stories after us.


372

01:00:18.420 --> 01:00:28.140

RH: But it is a different brand of PLM, you know, and we've redefined the category and we I talked about, you know, teen sports. It's where like Skating to the park.


373

01:00:28.500 --> 01:00:34.860

RH: You know you want to go where things are going, the age of the customer. It is about the customer. So there's engineering CAD PLM


374

01:00:35.250 --> 01:00:50.550

RH: their supply chain LM with the Iraqi folks. And then there's customer driven. And then there's propel that scan that spans the gamut. It goes from create commercialize to service the products and brings everybody in the company.


375

01:00:50.970 --> 01:01:01.350

RH: And really the whole extended business value chain together conceptually to collaborate launch you know and and do it in a compliant secure manner in the cloud that


376

01:01:01.710 --> 01:01:12.690

RH: Has never been done before, you know, I really think that we are fulfilling the promise of what September and I started with Sherpa and agile in arena and


377

01:01:13.110 --> 01:01:22.830

RH: You know, other systems that we worked with were actually fulfilling the promise of what we thought PDF NT LM could be to what it needed to be you know today. And now, and


378

01:01:23.460 --> 01:01:32.640

RH: We've got, you know, a lot of customers CIOs CEOs, you know, heads of companies that are really showing business outcomes value, you know, from what we're doing so.


379

01:01:33.270 --> 01:01:38.130

RH: Very proud of you work with Bruce and Salesforce as a as one of our key partners and


380

01:01:38.730 --> 01:01:50.460

RH: Certainly proud of our propellerheads and amazing things. Our customers are doing with our solution. So thank you. Bruce. Thank you. September for making this customer live happy and replicable to that's a cool thing.


381

01:01:51.690 --> 01:02:03.000

DA: All right, well, we've run out of time. I really appreciate the insights fantastic stuff September Bruce Ray, thank you so much for joining us this morning. Thank you. Cheers, everyone.



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