CADCAM is generally agreed to be a technique that can lead to major productivity gains. Its use can lead, among other things, to reductions in time cycles, reductions in costs, and improvements in quality. However, recent evidence shows that many companies using CADCAM are not achieving these benefits. A lot of information has been published on subjects such as the potential benefits of CADCAM and benchmarking procedures used in selecting a CADCAM system. However, these subjects are of little help to a company that has purchased a CADCAM system and is trying to use CADCAM profitably and in line with company objectives.This paper proposes solutions to some of the problems facing such companies. Topics include: the definition of CADCAM objectives; allocating CADCAM costs; necessary activities in implementing successful CADCAM; supporting use of CADCAM; CADCAM as a tool for innovation.