The Total Economic Impact™ Of Lectra’s Kubix Link PLM
Cost Savings And Business Benefits Enabled By Kubix Link
A FORRESTER TOTAL ECONOMIC IMPACT™ STUDY COMMISSIONED BY LECTRA, FEBRUARY 2025
Fashion brands need to remain agile, competitive and creative amid shifting consumer behavior and economic uncertainty while responding to geopolitical tension and the need for sustainability. Lectra’s Kubix Link PLM platform enables fashion companies to streamline operations, enhance collaboration, and reduce time to market in today’s challenging landscape.
Lectra commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Kubix Link.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Kubix Link on their organizations.
Return on investment (ROI)
111%
Net present value (NPV)
€1.15M
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five representatives of three organizations with experience using Kubix Link. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a global, multimillion-euro fashion and retail company based in Europe. The composite organization has two strong brands and a large consumer base that primarily consists of women. It has global operations, including own-retail outlets and manufacturing facilities. One of the brands has a small, made-to-order offering.
Interviewees said that prior to using Kubix Link, their organizations deployed locally hosted PLM systems to better hone the ability to create, deliver, and innovate their fashion offerings. However, legacy systems left the organizations with disconnected technology, siloed teams, and disjointed product data. Interviewees said IT teams ended up heavily involved in frequent tasks that would have been better in the hands of the users. They also said automating time-consuming imperatives (e.g., resource management, forecasting) seemed intractable. These limitations led to inefficiencies and inconsistencies in how the organizations designed and managed products and also resulted in delays and wasted time and effort.
Interviewees said that after the investment in Kubix Link, their organizations benefitted from having a single product referential to streamline operations, reduce errors, and enhance overall productivity. Key results from the investment include lifts in efficiency, time savings, improved collaboration, and avoided costs.
Key Findings
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
- An increase in operational efficiency worth €918,000 thanks to the single source of product data. Because Kubix Link provides the composite with easy access to accurate and up-to-date information about its products, each participant in the idea-to-consumer process no longer needs to search through spreadsheets or messages to verify information, ask about materials, or obtain other details.
- Efficiency gains worth €751,000 because product teams can easily reuse data for carryover products. Prior to using Kubix Link, adapting a jacket from the previous winter was more complex for the composite’s product teams than it should have been. Product carryovers make up 60% of the composite’s collections, and it gets back half of the time spent on each product with Kubix Link.
- Avoided costs of €414,000 by migrating from an outdated, onsite PLM system. The composite’s previous system was challenging to use, manage, and keep up to date. Users had limited access and control, while dedicated IT managers had a pile of support tickets and tasks to service every week.
- Time savings of €100,000 through automating resource forecasting and management. With Kubix Link, the composite’s managers can hand over calculations and material order management to machines. This closes a digital gap to make the company’s made-to-order clothing line more efficient and profitable.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
- Enhanced data accuracy. Kubix Link makes it easier for the composite’s employees to enter and process data correctly. Having a single view of data for all departments improves the consistency and accuracy of the data.
- Better communication and collaboration. The platform facilitates improved communication and collaboration between the composite’s teams.
- Greater visibility and transparency. Kubix Link provides visibility into the composite’s entire process. This ensures all stakeholders are informed, which supports their decision-making.
- Improved cadence of the design process and having a single rhythm. The composite organization reduces delays in its go-to-market strategy because Kubix Link drives to critical dates across all product lines.
- Simplified compliance with environmental regulations. Because sustainability is built into Kubix Link, the composite knows it is in compliance with national and European directives on data collection and environmental impact calculations.
- Improved product management. The composite’s employees can identify and implement best practices among their teams.
- Ease of adoption and use. Because Kubix Link has a user-friendly interface inspired by social media, the composite finds adoption to be easy and learning curves to be quick.
- Streamlined maintenance and ownership. Lectra continuously and transparently improves Kubix Link, so there’s no need for the composite to reinvest in configurations, and users can evolve at their own pace.
- Improved security of data and systems. Because Kubix Link is cloud-based, it strengthens and simplifies the composite’s protection of assets against cybersecurity risk.
- Fashion expertise and flexibility. The composite chooses Kubix Link for its fashion expertise and flexibility, which accommodates small customizations and supports industry best practices.
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
- Total subscription fees of €281,000. The composite organization pays recurring annual subscription costs for Kubix Link, and there are no batch updates to manage or finance. It pays between €100,000 and €106,090 annually during the three-year investment period, totaling a risk-adjusted PV of €281,000.
- Costs of initial configuration, evolutions, and additional capabilities totaling €337,000. During the initial configuration, Lectra’s professional services team integrates and adapts the tool to the composite organization’s current ways of working and technology infrastructure. Ongoing custom work for forecasting is included during the first year. Later development involves adaptations and integrating new use cases.
- The internal effort for implementation and ongoing management and support is €415,000. Throughout the life of the system, a PLM project manager (PM) is an important, full-time role. All users are trained on Kubix Link and key processes during the launch, often by the PM. Product data is cleaned, harmonized, and tested before being introduced into the system.
The interviews and financial analysis found that the composite organization experiences benefits of €2.18 million over three years versus costs of €1.03 million, adding up to a net present value (NPV) of €1.15 million and an ROI of 111%.
Key Statistics
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Return on investment (ROI)
111%
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Benefits PV
€2.18M
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Net present value (NPV)
€1.15M
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Payback
Less than 6 months
Benefits (Three-Year)
Increased operational efficiency through single source of product data Time savings by easily reusing product data for renewed products Avoided cost of supporting and running previous PLM system Time savings on resource management and forecasting
TEI Framework And Methodology
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Kubix Link.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Kubix Link can have on an organization.
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Due Diligence
Interviewed Lectra stakeholders and Forrester analysts to gather data relative to Kubix Link.
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Interviews
Interviewed five people at three organizations using Kubix Link to obtain data about costs, benefits, and risks.
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Composite Organization
Designed a composite organization based on characteristics of the interviewees’ organizations.
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Financial Model Framework
Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
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Case Study
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Disclosures
Readers should be aware of the following:
This study is commissioned by Lectra and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Kubix Link.
Lectra reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Lectra provided the customer names for the interviews but did not participate in the interviews.
Consulting Team:
Mary Kemp
Drivers leading to the Kubix Link investment
Interviews
| Role | Industry | Region |
|---|---|---|
| CIO PLM project lead |
Fashion and leather | Global (HQ: Europe) |
| Product development lead IT lead |
Menswear | Global (HQ: Europe) |
| PLM program manager | Sport and lifestyle brands | Global (HQ: Europe) |
Key Challenges
Interviewees noted that before investing in a new PLM solution, their organizations struggled with common challenges, including:
- Lack of a single, consistent source of product truth. The lack of an accessible, centralized solution for managing collections meant interviewees organizations’ product information was trapped and incomplete. Critical data and information was siloed and not shared between departments. Duplication of records and missed updates were common. Little standardization in product descriptions and data meant product data could not be directly integrated into other systems, such as point of sale (POS) or enterprise resource planning (ERP) systems. For example, colors would appear in different languages depending on who input the information. And product data would rarely be reused from one collection to another.
- Wasted time looking for and confirming product and collection information. It was difficult if not impossible for team members involved in a collection (e.g., marketers, product managers, designers) to find accurate and up-to-date information by wading through spreadsheets and email. Significant time was spent searching for, consolidating, and validating data, and this required numerous phone calls, texts, and emails. The results were often delays and sometimes errors.
- Unadapted, expensive, and complex on-premises solutions. The interviewees’ organizations had tried to crack managing collections and products with on-premises PLM solutions. However, these solutions proved challenging to use and lacked important features and functionality, such as the ability to manage environmental data. The systems had become outdated, and it was expensive to make the required updates and redeploy customizations and configurations.
- No single process to manage collections, which led to inefficiencies and inconsistencies. Interviewees said the lack of visibility extended to collections and that their organizations struggled with reporting, deadlines, and management.
- Significant manual effort for resource management and forecasting. Having a limited system for product data meant that interviewees’ organizations couldn’t automatize certain tasks. One interviewee described having to hold monthly meetings with the senior managers to review, control, and compile small, customized orders to pass them on to suppliers.
Solution Requirements/Investment Objectives
The interviewees’ organizations searched for a solution that could:
- Lead to time gains and improve efficiency. The organizations wanted to eliminate document sharing, duplication, and version management.
- Improve collection and product data accuracy and access. Interviewees said they wanted a solution that could provide the right people with access at the right time. They also wanted to be able to trace changes and manage history.
- Be flexible but not complex. The organizations were looking for a solution that offered the right level of sophistication and cost while providing a user-friendly interface.
- Utilize solid experience in fashion. Interviewees said they wanted a solution that would be among the best in class in the fashion industry.
- Enable digitalization and process evolution. The organizations wanted to upgrade technology to a single software-as-a-service (SaaS) system while simplifying management and integration.
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Facilitate tracking of sourcing and compliance. This was especially important in complying with European and national sustainability laws.
Composite Organization
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the five interviewees’ companies, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The global, multimillion-euro business-to-consumer organization is based in Europe. The organization has two strong fashion brands and a large consumer base, primarily comprised of women. Its operations are global, including own-retail outlets and e-commerce platforms. The company has its own manufacturing facilities — primarily in Europe — and it contracts with nearshore suppliers. One of the brands has developed a small, made-to-order offering to showcase tailoring and to differentiate the brand.
Sustainability is a priority for the business and the brands are actively reducing environmental impact. The enterprise has centralized sustainability data, and it tracks and reports across its entire supply chain as required by European and national regulations.
Deployment characteristics. After an RFP involving multiple suppliers, the composite organization chooses Kubix Link in part due to its flexibility and ability to accommodate needed configurations and small customizations while offering better out-of-the-box integration with existing ERP systems.
Following a six-month initiative to consolidate, map, and clean existing product data and records, the organization rolls out Kubix Link to 8% of employees who have office roles and are involved within the product lifecycle. It replaces a customized PLM system that required many manual processes and did not cover all product lines and potential users.
The composite’s IT teams act as system integrators with support from Lectra’s services team, which leads configuration and leverages their experience with other fashion companies to recommend best practices and processes. Implementation begins with manufacturing by managing product prototypes and transitioning data from the old system to Kubix Link. The implementation is split into two phases: The first phase (i.e., the initial phase) goes live in less than six months, and the second goes live three months later in Year 1.
As users adopt and become comfortable with Kubix Link in years 2 and 3, the organization again partners with Lectra’s services team to hone configurations and extend the tool’s reach to new use cases. The company continues to digitize its design and manufacturing processes.
Quantified benefit data as applied to the composite
Total Benefits
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Increased operational efficiency through a single source of product data | €369,138 | €369,138 | €369,138 | €1,107,414 | €917,992 |
| Btr | Time savings by easily reusing product data for renewed products | €302,022 | €302,022 | €302,022 | €906,066 | €751,084 |
| Ctr | Avoided cost of supporting and running previous PLM system | €166,403 | €166,403 | €166,403 | €499,209 | €413,820 |
| Dtr | Time savings on resource management and forecasting | €40,163 | €40,163 | €40,163 | €120,489 | €99,878 |
| Total benefits (risk-adjusted) | €877,726 | €877,726 | €877,726 | €2,633,177 | €2,182,775 | |
Increased Operational Efficiency Through A Single Source Of Product Data
Evidence and data. According to the interviewees, Kubix Link enabled their fashion companies to develop and deliver their products more efficiently.
- They said all product-related information from multiple sources was centralized in one place and that users saved at least the 5 to 6 hours per week they previously spent searching for and confirming information. They no longer had to dig through emails and spreadsheets nor send follow-up messages to chase or check product details. The PLM project lead at the fashion and leather organization said, “We realized that offices that were using [the previous PLM system] were already exchanging information and data, but they had to do it manually through [spreadsheets], etc. We wanted to gain efficiency and alignment.”
- Interviewees said Kubix Link also improved data accuracy. Instead of needing to revisit work, teams gained the ability to focus on moving collections forward and everyone had access and visibility into the same information. The CIO at the fashion and leather organization said, “Kubix Link allowed us to manage the entire product lifecycle, from prototyping to production, with improved efficiency and accuracy.”
- Interviewees also explained that having a single source of truth enabled their companies to accelerate decision-making and validation. The PLM project lead at the fashion and leather organization said, “The system facilitated better communication and collaboration between teams, enhancing overall productivity.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
- Eighty people within the composite organization are essential to collection and product development, management, and promotion. Each is a licensed user of Kubix Link since the beginning of the collaboration and has the same level of access and information, no matter their role.
- Having access to a single source of real-time product information provides an average productivity lift of 15% for users. Less time is wasted digging for information and the organization can make decisions about products and collections more quickly.
- The composite’s productivity capture is 50%.
- Kubix Link traces changes and each user has defined access rights.
Risks. The impact of this benefit may vary by organization depending on the following:
- The organization’s prior state of sharing information and data about products and collections, including the level of access to accurate and real-time data.
- The size of product teams.
- Complexity of the organization’s business.
- The digital maturity of business processes and teams.
- The extent to which the organization leverages Kubix Link’s capabilities.
- The number, value, and complexity of products and collections managed.
- The types and mix of users.
- The level and speed of employee acceptance and adoption of PLM technology and business practices.
- Other digitalization efforts or product-related processes.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV of €918,000.
Increased Operational Efficiency Through A Single Source Of Product Data
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Employee working time (hours) | Research data | 1,540 | 1,540 | 1,540 | |
| A2 | Employees impacted | Composite | 80 | 80 | 80 | |
| A3 | Percent of time saved due to single source of product data | Interviews | 15% | 15% | 15% | |
| A4 | Average hourly rate for an employee | Research data | €47 | €47 | €47 | |
| A5 | Productivity capture | TEI methodology | 50% | 50% | 50% | |
| A6 | Cost savings | A1*A2*A3*A4*A5 | €434,280 | €434,280 | €434,280 | |
| At | Increased operational efficiency through a single source of product data | €434,280 | €434,280 | €434,280 | ||
| Risk adjustment | ↓15% | |||||
| Atr | Increased operational efficiency through a single source of product data (risk-adjusted) | €369,138 | €369,138 | €369,138 | ||
| Three-year total: €1,107,414 | Three-year present value: €917,992 | |||||
Time Savings By Easily Reusing Product Data For Renewed Products
Evidence and data. Interviewees explained that each new collection contains classic products along with products from previous collections that are brought into the present by applying the design decisions of the season and that reissuing a classic pant or updating a jacket from previous winters was time-consuming.
- Interviewees said 60% of their organizations’ products are carryovers from previous collections that must be updated and adjusted.
- The PLM program manager with sport and lifestyle brands said their organization’s product managers cut their time in half when managing carryovers through Kubix Link.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
- Each year, the organization releases six collections of around 700 products, including clothing, accessories, and footwear.
- On average, 60% of the composite’s products are carryovers from previous collections that are updated and adjusted to fit current collections.
- Before using Kubix Link, the composite’s teams spent 12 hours finding, recreating, modifying, and managing each carryover. With Kubix Link, this requires half the time.
- The composite’s productivity capture is 50%.
Risks. The impact of this benefit may vary by organization depending on the following:
- The organization’s prior state of sharing information and data about products and collections, including the level of access to accurate and real-time data.
- The organization’s prior processes and tools for managing carryovers.
- The organization’s number of collections and products.
- The share and volume of carryovers.
- The digital maturity of the organization’s business processes and teams.
- The extent to which the organization leverages Kubix Link’s capabilities.
- The level and speed of employee acceptance and adoption of PLM technology and business practices.
- Other digitalization efforts or product-related processes.
Results. To account for these risks, Forrester adjusted this benefit downward by 15% yielding a three-year, risk-adjusted total PV (discounted at 15%) of €751,000.
Time Savings By Easily Reusing Product Data For Renewed Products
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Products per collection | Composite | 700 | 700 | 700 | |
| B2 | Previous time spent on each reused product for all profiles (hours) | Composite | 12 | 12 | 12 | |
| B3 | Percent of products reused with adjustments or color changes | Interviews | 60% | 60% | 60% | |
| B4 | Time savings per reused product | Interviews | 50% | 50% | 50% | |
| B5 | Collections | Composite | 6 | 6 | 6 | |
| B6 | Average hourly rate for an employee | Research data | €47 | €47 | €47 | |
| B7 | Productivity capture | TEI methodology | 50% | 50% | 50% | |
| B8 | Cost savings | B1*B2*B3*B4*B5*B6*B7 | €355,320 | €355,320 | €355,320 | |
| Bt | Time savings by easily reusing product data for renewed products | €355,320 | €355,320 | €355,320 | ||
| Risk adjustment | ↓15% | |||||
| Btr | Time savings by easily reusing product data for renewed products (risk-adjusted) | €302,022 | €302,022 | €302,022 | ||
| Three-year total: €906,066 | Three-year present value $751,084 | |||||
Avoided Cost Of Supporting And Running Previous PLM System
Evidence and data. Interviewees said their companies had deployed onsite PLMs for several of their product lines and product groups would disengage when they found it challenging to manage and finance regular updates.
- The product development lead at a menswear organization explained that users at their company had limited access and control. The interviewee also said IT teams had to manage parameters, and they often validated and filtered modifications of data.
- Interviewees said IT managers were spending a significant amount of time on user requests and support and version management. The IT lead at a menswear organization said, “The number of support tickets decreased significantly from 35 to 40 per week to an average of five for 70 active users.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
- Previously, the composite needed five IT FTEs to support users and maintain its prior PLM system.
- It cost the composite €50,000 per year on licensing and running costs for the prior PLM system.
Risks. The impact of this benefit may vary by organization depending on the following:
- The organization’s current system and the costs associated with licensing, managing, and maintaining it.
- The complexity and speed of the evolution of requirements.
- The digital maturity of the organization’s business processes and teams.
- The extent to which the organization leverages Kubix Link’s capabilities.
- The level and speed of employee acceptance and adoption of PLM technology and business practices.
- Other digitalization efforts or product-related processes.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 20%) of €414,000.
Avoided Cost Of Supporting And Running Previous PLM System
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | IT staff members who supported and maintained the previous PLM platform | Interviews | 5 | 5 | 5 | |
| C2 | Monthly time worked per IT staff member (hours) | Interviews | 168 | 168 | 168 | |
| C3 | Percent of time saved due to using Kubix Link | Interviews | 95% | 95% | 95% | |
| C4 | Weighted average burdened hourly salary for an IT manager | Research data | €33 | €33 | €33 | |
| C5 | Productivity capture | TEI methodology | 50% | 50% | 50% | |
| C6 | Subtotal: Cost savings |
C1*C2*C3*C4*C5*12 months | €158,004 | €158,004 | €158,004 | |
| C7 | License and running costs |
Interviews | €50,000 | €50,000 | €50,000 | |
| C8 | Subtotal: License and running costs |
C7 | €50,000 | €50,000 | €50,000 | |
| Ct | Avoided cost of supporting and running previous PLM system | C6+C8 | €208,004 | €208,004 | €208,004 | |
| Risk adjustment | ||||||
| Ctr | Avoided cost of supporting and running previous PLM system (risk-adjusted) | €166,403 | €166,403 | €166,403 | ||
| Three-year total: €499,209 | Three-year present value: €413,820 | |||||
Time Savings On Resource Management And Forecasting
Evidence and data. The product development lead for the menswear organization said their company’s made-to-order clothing attracted customers but that execution was time-consuming and inefficient to manage.
- The interviewee said digital had enabled an easy-to-order customer interface and that the company’s small-batch production was optimized. However, there was an important gap between the two. Managers needed to review and compile the customized clothing orders to project and define material requirements and place orders with suppliers and that managers met at least once a month to consolidate orders, define supplies, and fix priorities.
- The interviewee explained that their organization closed the gap by automating the compilation, forecasting, and materials-order management during the first year of the company’s Kubix Link deployment, which resulted in a seamless integration with its ERP, CMS, and e-commerce platforms.
- The interviewee said managers at their organization now oversee and validate or adjust the system’s consolidation and step in at decision points. Orders issued “by hand” are an exception rather than the rule.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
- Ten managers each save at least 14 hours per month by eliminating the manual management of material requirements (e.g., traveling and participating in daylong meetings and overseeing the subsequent order and supplier management).
- The composite’s productivity capture is 50%.
Risks. The impact of this benefit may vary by organization depending on the following:
- The organization’s current state, including any manual processes and the number of people involved.
- The organization’s business model and the potential of small-batch and made-to-order product.
- The digital maturity of the organization’s business processes and teams.
- The extent to which the organization leverages Kubix Link’s capabilities.
- The level and speed of employee acceptance and adoption of PLM technology and business practices.
- Other digitalization efforts or product-related processes.
Results. To account for these risks, Forrester adjusted this benefit downward by 25% yielding a three-year, risk-adjusted total PV (discounted at 25%) of €100,000.
Time Savings On Resource Management And Forecasting
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Functional managers | Composite | 10 | 10 | 10 | |
| D2 | Monthly efficiency gains for a manager (hours) | Interviews | 14 | 14 | 14 | |
| D3 | Percent of time saved due to Kubix Link | Composite | 85% | 85% | 85% | |
| D4 | Average burdened hourly salary for a design manager | Research data | €75 | €75 | €75 | |
| D5 | Productivity capture | TEI standard | 50% | 50% | 50% | |
| D6 | Subtotal: Cost savings | D1*D2*D3*D4* D5*12 months |
€53,550 | €53,550 | €53,550 | |
| Dt | Time savings on resource management and forecasting | €53,550 | €53,550 | €53,550 | ||
| Risk adjustment | ↓25% | |||||
| Dtr | Time savings on resource management and forecasting (risk-adjusted) | €40,163 | €40,163 | €40,163 | ||
| Three-year total: €120,489 | Three-year present value: €99,879 | |||||
Unquantified Benefits
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
- Enhanced data accuracy. Having a single view for all departments ensured consistency and accuracy, and interviewees said the system reduced the likelihood of misinformation and ensured that all data was entered and processed correctly. They said their companies gained the ability to manage their data through a data lifecycle and that real-time data became a business asset that could be shared across the supply chain. The PLM product lead at a fashion and leather organization stated: “The PLM supports the entire design phase, and once the collection and products are validated, they can be forecasted and coded in our ERP.”
- Better communication and collaboration. One interviewee said, “The system facilitated better communication and collaboration between teams, enhancing overall productivity.”
- Greater visibility and transparency. Interviewees said the platform provides visibility into the entire process so that everyone, including decision-makers, has the same tool and the same level of access. They explained that when all stakeholders are informed and aligned, decision-making is more informed and often quicker.
- Improved cadence of the design process and single rhythm. Interviewees explained that Kubix Link reduces delays in go to market. While they were not able to quantify results yet, they said their organizations put processes in place to better manage collections and that dates are now clearly communicated and tracked. The PLM project lead at the fashion and leather organization said, “That let us set a rhythm across all the product lines with critical dates that all category managers must respect.”
- Simplified compliance with environmental regulations. Interviewees told Forrester that sustainability is built into Kubix Link, which enables their organizations to be compliant with European and national directives around collecting and centralizing data and calculating the environmental impact of products.
- Improved product management. Interviewees said their organizations can leverage Kubix Link to identify best practices among teams, codify them, and then extend them to all.
- Ease of adoption and use. Interviewees said Kubix Link’s interface is user-friendly and that it was intuitive and familiar to users due to similarities to social media. This made adoption easy and learning curves small.
- Streamlined maintenance and ownership. Interviewees explained that Lectra evolves Kubix Link’s core platform continuously and transparently and that because customer configurations sit above that core, their organizations don’t need to reinvest in configuration or deploy an upgrade to benefit from evolutions. Interviewees also said different users can each evolve at their own rhythm, making versions and batch upgrades obsolete.
- Improved security of data and systems. Interviewees said Lectra monitors and maintains the security of Kubix Link, which strengthens and simplifies protection of their organizations’ assets against data breaches, unauthorized access, and cyberattacks.
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Fashion expertise and flexibility. Several interviewees told Forrester their organization chose Kubix Link due to the solution’s flexibility and Lectra’s expertise in fashion. They said the platform is easy to configure and can accommodate small customizations if needed. The CIO of the fashion and leather organization noted, “Kubix Link’s flexibility allows for adjustments and workarounds, making it suitable for a company that requires adaptable solutions but isn’t very large.”
Interviewees also explained that deploying Kubix Link doesn’t require their organizations to change how they work. Instead, they said they can choose where to level up by adopting industry best practices supported by the platform.
Flexibility
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Kubix Link and later realize additional uses and business opportunities, including:
- Tapping into patterns and trends for predictive forecasting. While interviewees said their organizations were most often focused on the short-term gains from running projects better, several projected that using a consolidated system could enable their company to improve business and project outcomes in the near future. One interviewee talked about how their organization plans to use newly consolidated product data to study resource and business trends, and another said their company is thinking about deploying AI to enhance forecasting and decision-making.
- Planning and managing resources from the supply chain. Interviewees said that suppliers are not connected with systems today. They mentioned building toward further integration with external partners where material options and specs and delivery and production schedules could be used to further optimize product development and production. They said their organizations have merely scratched the surface of manufacturing optimization.
- Continuing the digitalization of product processes. Most of the interviewees said their organization plans to deploy other technologies to improve productivity and stay competitive and that they see the adoption of Kubix Link as a foundation on which other tools would enable teams to work together even better. One interviewee said: “Kubix Link could become the engine of further digitalization. [Lectra’s] product roadmap is to integrate with other solutions, such as CAD (computer-aided design). We see the opportunity to further break silos.”
Quantified cost data as applied to the composite
Total Costs
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Etr | Kubix Link subscription fees | €0 | €110,000 | €113,300 | €116,699 | €339,999 | €281,314 |
| Ftr | Initial configuration, evolutions, and additional capabilities | €115,000 | €115,000 | €74,750 | €74,750 | €379,500 | €337,483 |
| Gtr | Internal effort for implementation, ongoing management, and support | €106,783 | €181,107 | €90,951 | €90,951 | €469,792 | €414,925 |
| Total costs (risk-adjusted) | €221,783 | €406,107 | €279,001 | €282,400 | €1,189,291 | €1,033,722 | |
Kubix Link Subscription Fees
Evidence and data. Interviewees said the following about their organizations’ Kubix Link subscription fees:
- The annual subscription fees are based on the company size and the number of users.
- Because Kubix Link is a cloud-based PLM, the annual subscription fees cover all licensing costs, including the ongoing and transparent evolutions to the core platform. Interviewees said there are no batch updates to manage or finance, and there are no infrastructure costs to run the system.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
- The entire internal product ecosystem is onboarded to contribute and benefit.
- The composite provides licenses to 80 users in Year 1. Most are product managers and category managers.
- All of the composite’s users have the same access.
- During the first three years of the deployment, no suppliers use or access the platform. The composite may change that access and other functionality later.
Risks. The impact of this cost may vary by organization depending on the following:
- The organization’s speed of adoption.
- The organization’s number of users.
- The number and different types of product areas involved.
- The levels of digital maturity of the company and potential users.
- How the organization fits with Kubix Link’s customer profiles, current capabilities, and planned product evolution.
Results. To account for these risks, Forrester adjusted this cost upward by 10% yielding a three-year, risk-adjusted total PV (discounted at 10%) of €281,000.
Kubix Link Subscription Fees
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| E1 | Kubix Link subscription fees (adjusted for inflation) | Lectra | €0 | €100,000 | €103,000 | €106,090 |
| Et | Kubix Link subscription fees | Composite | €0 | €100,000 | €103,000 | €106,090 |
| Risk adjustment | ↑10% | |||||
| Etr | Kubix Link subscription fees (risk-adjusted) | €0 | €110,000 | €113,300 | €116,699 | |
| Three-year total: €339,999 | Three-year present value: €281,314 | |||||
Initial Configuration, Evolutions, And Additional Capabilities
Evidence and data. Interviewees said the following about their organizations’ costs in this category:
- Users have embraced Kubix Link because it was simple to fit in with their current ways of working. Interviewees explained that configuration enabled deployment teams to integrate and adapt the tool to their companies instead of bending users to fit the system. The PLM program manager for sport and lifestyle brands said, “It's really the flexibility of the tool that convinced us.”
- Interviewees also said when configuring Kubix Link, their organizations brought hidden business workings into the open and into users’ hands. One interviewee said: “Nobody thought we could get rid of all those pages of code [that were] intelligible only to IT [and] allowed us to govern a sales-driven procurement process. Now, all users can see the tables. Something that used to be 90% IT and 10% users is now the opposite.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
- The composite’s largest investment in configuration is during implementation and the first year of use, adapting the platform to the company’s ways of working and technology infrastructure.
- The organization recently harmonized and upgraded its ERP system and other systems.
- The company relies on Lectra consultants for initial deployment to benefit from industry best practices and their familiarity with the platform, its capabilities, and integrations. Lectra’s team also delivers the custom development that manages materials for the made-to-order offer.
- The composite’s implementation is split into two phases: The first phase (the initial phase) goes live in less than six months, and the second phase goes live in Year 1.
- In years 2 and 3, the composite company turns to the Lectra services team to hone its installation as the system becomes embedded and users request adaptations and want to extend use cases.
Risks. The impact of this cost may vary by organization depending on the following:
- The organization’s use cases (e.g., integrating external partners or suppliers).
- The complexity and breadth of the company’s technical infrastructure.
- Any requirements for specific configurations or customization.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 15%) of €337,000.
Initial Configuration, Evolutions, And Additional Capabilities
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| F1 | Cost of configurations enabling process support | Lectra | €100,000 | €100,000 | €65,000 | €65,000 |
| Ft | Initial configuration, evolutions, and additional capabilities | Composite | €100,000 | €100,000 | €65,000 | €65,000 |
| Risk adjustment | ↑15% | |||||
| Ftr | Initial configuration, evolutions, and additional capabilities (risk-adjusted) | €115,000 | €115,000 | €74,750 | €74,750 | |
| Three-year total: €379,500 | Three-year present value: €337,483 | |||||
Internal Effort For Implementation, Ongoing Management, And Support
Evidence and data. Interviewees said it was essential for their organizations to embed Kubix Link into their teams and product management processes to realize the value of the platform.
- The organizations assigned PLM project managers to run the implementation and drive adoption. The PLM project lead at a fashion and leather organization said, “The team calls me ‘Miss PLM.’ I will pass the baton and hope to recruit someone to take over.” Other interviewees said having strong partnerships with business owners was critical to understanding functional needs and supporting adoption.
- Interviewees explained that their organizations invested in product data during the setup. This included interpreting requirements and cleaning and testing the product data on hand. Data was integrated from the previous PLM systems and sourced from multiple spreadsheets that were developed to run the collections.
- Training included onboarding and familiarizing users with formalized processes, using Kubix Link, and managing product data. Interviewees said some training, especially for new team members who join after the first year, is done on the job. They also said it was easy for users to adopt the solution as they went through their daily tasks. One interviewee said, “The simplicity of Kubix Link allowed users to discover new functionalities over time, further improving their experience.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
- The composite has a PLM project manager in a full-time role.
- All of the composite’s users are trained to use Kubix Link during launch in the first year.
- The composite has a 6% rate of employee turnover or additions each year.
- New employees require on-the-job training and support by their managers and teams.
- The composite’s time investment in data harmonization is most-labor intensive before implementation and during the first year. Oversight remains in place in subsequent years to sustain and improve data quality. New opportunities (e.g., forecasting) may be spun off and developed.
Risks. The impact of this cost may vary by organization depending on the following:
- The size of the organization.
- The organization’s number of current PLM users and potential user base.
- The organization’s speed of adoption and rollout.
- The complexity of configurations or any customizations.
- The prior existence and state of product data.
- Required process changes.
- The levels of digital maturity of the company and potential users.
Results. To account for these risks, Forrester adjusted this cost upward by 15% yielding a three-year, risk-adjusted total PV (discounted at 15%) of €415,000.
Internal Effort For Implementation, Ongoing Management, And Support
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| G1 | Combined total time IT team members spend on configuration, integration with other systems, and ongoing project management and support | Composite | 1,720 | 1,636 | 1,636 | 1,636 |
| G2 | Blended fully burdened hourly rate for an IT team member | Research data | €38 | €38 | €38 | €38 |
| G3 | Subtotal: IT and PM staff effort | G1*G2 | €65,360 | €62,168 | €62,168 | €62,168 |
| G4 | Combined total time for harmonizing, managing, and evolving data models (hours) | Interviews | 480 | 480 | 240 | 240 |
| G5 | Burdened hourly salary for an employee | Research data | €47 | €47 | €47 | €47 |
| G6 | Subtotal: Data harmonization | G4*G5 | €22,560 | €22,560 | €11,280 | €11,280 |
| G7 | Combined total time for adapting or creating PLM tool and process training, refining, and running (hours) | Interviews | 140 | 144 | 115 | 115 |
| G8 | Burdened hourly salary for an employee | Research data | €47 | €47 | €47 | €47 |
| G9 | Effort attributed to Kubix Link implementation | Composite | 75% | 75% | 50% | 50% |
| G10 | People trained | Composite | 80 | 5 | 5 | |
| G11 | Time each user spends in training for PLM tool and processes (hours) | Interviews | 24 | 24 | 24 | |
| G12 | Burdened hourly salary for an employee | Research data | €47 | €47 | €47 | |
| G13 | Effort attributed to Kubix Link | Composite | 75% | 50% | 50% | |
| G14 | Subtotal: Training costs | G7*G8*G9+ G10*G11* G12*G13 |
€4,935 | €72,756 | $5,640 | $5,640 |
| Gt | Internal effort for implementation, ongoing management, and support | G3+G6+G14 | €92,855 | €157,484 | €79,088 | €79,088 |
| Risk adjustment | ↑15% | |||||
| Gtr | Internal effort for implementation, ongoing management, and support (risk-adjusted) | €106,783 | €181,107 | €90,951 | €90,951 | |
| Three-year total: €469,792 | Three-year present value: €414,925 | |||||
Consolidated Three-Year, Risk-Adjusted Metrics
Cash Flow Chart (Risk-Adjusted)
Total costs Total benefits Cumulative net benefits Initial Year 1 Year 2 Year 3-
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
Cash Flow Analysis (Risk-Adjusted)
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | (€221,783) | (€406,107) | (€278,742) | (€282,141) | (€1,188,772) | (€1,033,313) |
| Total benefits | €0 | €877,726 | €877,726 | €877,726 | €2,633,177 | €2,182,774 |
| Net benefits | (€221,783) | €471,619 | €598,984 | €595,585 | €1,444,405 | €1,149,461 |
| ROI | 111% | |||||
| Payback | <6 months | |||||
Appendix A: Total Economic Impact
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Total Economic Impact Approach
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Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
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Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
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Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
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Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
Appendix B: Endnotes
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
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