Vasco Drecun, an analyst at Stanford, Conn.-based Collaborative Product Development Associates, said product innovation software is a useful tool for manufacturers because it allows them to make proper decisions regarding goods.

"In product development, you always have a large dose of uncertainty to manage," Drecun said. "The problem is that most companies use methods all developed from the Industrial Age, when things were more predictable. Those things are gone."

Better knowledge about products, market demand, production requirements and other variables is a must for a company to remain competitive, Drecun said. "Knowledge will help you manage the risk." Using applications like Accolade helps companies "maintain a high innovation level in your portfolio," he said.

Gisela Wilson, an analyst at IDC in Framingham, Mass., said Sopheon formerly was in the consulting and support business and is now focused on writing applications for customers. "They have a lot of experience about what end users want," she said.

Sopheon's key competitors include UGS Corp., a Plano, Texas-based product life-cycle management vendor; Integrated Development Enterprise Inc. in Concord, Mass.; SAP AG; and Oracle Corp.