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As a genuine Dutchman, I was able to spend time last month in the Netherlands, and I attended two interesting events: BIMOpen2015, where I was invited to speak about what BIM could learn from PLM (see Dutch review here) and the second event: Where engineering meets supply chain organized by two startup companies located in Yes!Delft an incubator place working close to the technical university of Delft (Dutch announcement here)
Two different worlds and I realized later, they potential have the same future. So let’s see what happened.
BIMopen 2015 had the theme: From Design to Operations and the idea of the conference was to bring together construction companies (the builders) and the facility managers (the operators) and discuss the business value they see from BIM.
First I have to mention that BIM is a confusing TLA like PLM. So many interpretations of what BIM means. For me, when I talk about BIM I mean Building Information Management. In a narrower meaning, BIM is often considered as a Building Information Model – a model that contains all multidisciplinary information. The last definition does not deal with typical lifecycle operations, like change management, planning, and execution.
The BIMopen conference started with Ellen Joyce Dijkema from BDO consultants who addressed the cost of failure and the concepts of lean. Thinking. The high cost of failure is known and accepted in the construction industry, where at the end of the year profitability can be 1 % of turnover (with a margin of +/- 3 % – so being profitable is hard).
Lean thinking requires a cultural change, which according to Ellen Joyce is an enormous challenge, where according to a study done by Prof Dr. A. Cozijnsen there is only 19 % of chance this will be successful, compared to 40 % chance of success for new technology and 30 % of chance for new work processes.
It is clear changing culture is difficult and in the construction industry it might be even harder. I had the feeling a large part of the audience did not grasp the opportunity or could find a way to apply it to their own world.
My presentation about what BIM could learn from PLM was similar. Construction companies have to spend more time on upfront thinking instead of fixing it later (costly). In addition thinking about the whole lifecycle of a construction, also in operations can bring substantial revenue for the owner or operator of a construction. Where traditional manufacturing companies take the entire lifecycle into account, this is still not understood in the construction industry.
This point was illustrated by the fact that there was only one person in the audience with the primary interest to learn what BIM could contribute to his job as facility manager and half-way the conference he still was not convinced BIM had any value for him.
A significant challenge for the construction industry is that there is no end-to-end ownership of data, therefore having a single company responsible for all the relevant and needed data does not exist. Ownership of data can result in legal responsibility at the end (if you know what to ask for) and in a risk shifting business like the construction industry companies try to avoid responsibility for anything that is not directly related to the primary activities.
Some larger companies during the conference like Ballast Nedam and HFB talked about the need to have a centralized database to collect all the data related to a construction (project). They were building these systems themselves, probably because they were not aware of PLM systems or did not see through the first complexity of a PLM system, therefore deciding a standard system will not be enough.
I believe this is short-term thinking as with a custom system you can get quick results and user acceptance (it works the way the user is asking for) however custom systems have always been a blockage for the future after 10-15 years as they are developed with a mindset from that time.
If you want to know, learn more about my thoughts have a look at 2014 the year the construction industry did not discover PLM. I will write a new post at the end of the year with some positive trends. Construction companies start to realize the benefits of a centralized data-driven environment instead of shifting documents and risks.
The cloud might be an option they are looking for. Which brings me to the second event.
Engineering meets Supply Chain
This was more an interactive workshop / conference where two startups KE-Works and TradeCloud illustrated the individual value of their solution and how it could work in an integrated way. I had been in touch with KE-Works before because they are an example of the future trend, platform-thinking. Instead of having one (or two) large enterprise system(s), the future is about connecting data-centric services, where most of them can run in the cloud for scalability and performance.
KE-Works provides a real-time workflow for engineering teams based on knowledge rules. Their solution runs in the cloud but connects to systems used by their customers. One of their clients Fokker Elmo explained how they want to speed up their delivery process by investing in a knowledge library using KE-works knowledge rules (an approach the construction industry could apply too)
In general if you look at what KE-works does, it is complementary to what PLM-systems or platforms do. They add the rules for the flow of data, where PLM-systems are more static and depend on predefined processes.
TradeCloud provides a real-time platform for the supply chain connecting purchasing and vendors through a data-driven approach instead of exchanging files and emails. TradeCloud again is another example of a collection of dedicated services, targeting, in this case, the bottom of the market. TradeCloud connects to the purchaser’s ERP and can also connect to the vendor’s system through web services.
The CADAC group, a large Dutch Autodesk solution provided also showed their web-services based solution connecting Autodesk Vault with TradeCloud to make sure the right drawings are available. The name of their solution, the “Cadac Organice Vault TradeCloud Adapter” is more complicated than the solution itself.
What I saw that afternoon was three solutions providers connected using the cloud and web services to support a part of a company’s business flow. I could imagine that adding services from other companies like OnShape (CAD in the cloud), Kimonex (BOM Management for product design in the cloud) and probably 20 more candidates can already build and deliver a simplified business flow in an organization without having a single, large enterprise system in place that connects all.
I believe this is the future and potential a breakthrough for the construction industry. As the connections between the stakeholders can vary per project, having a configurable combination of business services supported by a cloud infrastructure enables an efficient flow of data.
As a PLM expert, you might think all these startups with their solutions are not good enough for the real world of PLM. And currently they are not – I agree. However disruption always comes unnoticed. I wrote about it in 2012 (The Innovators Dilemma and PLM)
Innovation happens when you meet people, observe and associate in areas outside your day-to-day business. For me, these two events connected some of the dots for the future. What do you think? Will a business process based on connected services become the future?
Sometimes we have to study careful to see patterns have a look here what is possible according to some scientists (click on the picture for the article)
The conference was hosted by Eurostep supported by CIMdata, Airbus, Siemens Energy and Volvo AB.
For me, the PDT conference is interesting because there is a focus on architecture and standards flavored with complementary inspiring presentations. This year there were approximate 110 participants from 12 countries coming from different industries listening to 25 presentations spread over two days.
Peter Bilello from CIMdata kicked off the conference with his presentation: The Product Innovation Platform: What’s Missing.
Peter explained how the joined vision from CIMdata, Gartner and IDC related to a product innovation platform is growing.
The platform concept is bringing PLM to the enterprise level as a critical component to support innovation. The main challenge is to make the complex simple – easier said than done, but I agree this is the real problem of all the software vendors.
Peter showed an interesting graph based on a survey done by CIMdata, showing two trends.
- The software and technology capabilities are closing more and more the gap with the vision (a dream can come true)
- The gap between the implemented capabilities and the technical possible capabilities is growing too. Of course, there is a difference between the leaders and followers.
Peter described the three success factors determining if a platform can be successful:
- Connection: how easy is it for others to connect and plug into the platform to participate as part of the platform. Translated to capabilities this requires the platform to support open standards to connect external data sources as you do not want to build new interfaces for every external source. Also, the platform provider should provide an integration API with a low entry level to get the gravity (next point)
- Gravity: how well does the platform attract participants, both producers, and consumers. Besides a flexible and targeted user interfaces, there must be an infrastructure that allows companies to model the environment in such a manner that it supports experts creating the data, but also support consumers in data, who are not able to navigate through details and want a consumer-friendly environment.
- Flow: how well does the platform support the exchange and co-creation of value. The smartphone platforms are extremely simple compared to a business platform as the dimension of lifecycle status and versioning is not there. A business platform needs to have support for versioning and status combined with relating the information in the right context. Here I would say only the classical PLM vendors have in-depth experience with that.
Having read these three bullet points and taking existing enterprise software vendors for PLM, ERP, and other “platforms” in mind, you see there is still a way to go before we have a “real” platform available.
According to Peter, companies should start with anchoring the vision for a business innovation platform in their strategic roadmap. It will be an incremental journey anyway. How clear the vision is connected to business execution in reality differentiates leaders and followers.
Next Marc Halpern from Gartner elaborated on enabling Product Innovation Platforms. Marc started to say that the platform concept is still the process of optimizing PLM.
Marc explained the functional layers making up a product innovation platform, see below
According to Marc, in 2017 the major design, PLM and business suite vendors will all offer product innovation platforms, where certain industries are more likely to implement product innovation platforms faster than others.
Marc stressed that moving to a business innovation platform is a long, but staged, journey. Each stage of the journey can bring significant value.
Gartner has a 5-step maturity model based on the readiness of the organization. Moving from reactive, repeatable, integrating towards collaborating and ultimately orchestrating companies become business ready for PDM first, next PLM and the Product Innovation Platform at the end. You cannot skip one of these steps according to Marc. I agree, PLM implementations in the past failed because the company was dreaming that the PLM system would solve the business readiness of the organization.
Marc ended with a case study and the conclusions were not rocket science.
The importance of change management, management understanding and commitment, and business and IT joined involvement. A known best practice, still we fail in many situations to act accordingly, due to underestimation of the effort. See also my recent blog post: The importance of change management for PLM.
She described how Anders Wilhemson, original a professor in architecture, focused on solving a global, big problem addressing 2.5 billion people in the world. These 2.5 billion persons, the poorest of the world, lack sanitation, which results in a high death rate for children (every 15 seconds a child dies because of contaminated water). Also the lack of safe places for sanitation lead to girls dropping out of school and women and children being at risk for rape when going to toilet places.
The solution is a bag, made of high-performance biodegradable plastics combined with chemicals, already in the bag, processing the feces to kill potential diseases and make the content available as fertilizer for the agricultural industry.
The plastic bag might not be new, but adding the circular possibilities to it, make it a unique approach to creating a business model providing collection and selling of the content again. For the poorest every cent they can earn makes a different.
Currently in initial projects the Peepoo system has proven its value: over 95 % user acceptance. It is the establishment that does not want to introduce Peepoo on a larger scale. Apparently they never realized themselves the problems with sanitation.
Peepoo is scaling up and helping the bottom of our society. And the crazy fact is that it was not invented by engineers but by an architect. This is challenging everyone to see where you can contribute to a better world. Have a look at peepoople.com – innovation with an enormous impact!
Next Volvo Cars and Volvo Trucks presented similar challenges: How to share product data based on external collaboration. The challenge of Volvo Cars is that it has gone through different ownerships and they require a more and more flexible infrastructure to share data. It is not about data pushing to a supplier anymore, it is about integrating partners where you have to share a particular part of your IP with the partner. And where the homegrown KPD system is working well for internal execution, it was never designed for partner sharing and collaboration. Volvo Cars implemented a Shared Technology Control application outside the firewall based on Share-A-space, where inside and outside data is mapped and connected. See their summary below. A pragmatic approach which is bringing direct benefits.
Concluding from the Volvo sessions: Apparently it ‘s hard to extend an existing system or infrastructure for secure collaboration with an external partner. The complexity of access right, different naming conventions, etc. Instead of that it is more pragmatic to have an intermediate system in the middle, like Share-A-space, that connects both worlds. The big advantage of Share-A-space is that the platform is based on the ISO 10303 (PLCS) standard and, therefore, has one of the characteristics of a real platform: openness based on standards.
Jonas Hammerberg from the Awesome Group closed day one with an inspiring and eye-opening presentation: Make PLM – The Why and How with Gamification FUN.
Jonas started to describe the behavioral drivers new generations have based on immediate feedback for the feeling of achievement, pride and status and being in a leading environment combined with the feelings of being in a group feeling friendship, trust, and love.
Current organizations are not addressing these different behaviors, it leads to disengagement at the office / work floor as Jonas showed from a survey held in Sweden – see figure. The intrinsic motivation is missing. One of the topics that concerns me the most when seeing current PLM implementations.
The Awesome group has developed apps and plug-ins for existing software, office and PLM bring in the feelings of autonomy, mastery and purpose to the individual performing in teams. Direct feedback and stimulating team and individual performance as part of the job.
By doing so the organization also gets feedback on the behavior, activity, collaboration and knowledge sharing of individuals and how this related to their performance. An interesting concept to be implemented in situations where gamification makes sense.
Owe Lind and Magnus Lidström from Scania talked about their Remote Diagnostics approach where diagnostic readings can be received from a car through a mobile phone network either to support preventive maintenance or actual diagnostics on the road and provide support.
Interesting Owe and Magnus were not using the word IoT (Internet of Things) at all, a hype related to these capabilities. Have a look here on YouTube
There was no chance to fall asleep after lunch, where Robin Teigland from the Stockholm School of Economics took us in a whirlwind through several trends under the title: The Third Revolution – exploring new forms of value creation through doing more with less.
The decomposition of traditional business into smaller and must faster communities undermine traditional markets. Also concepts like Uber, Bitcoin becoming a serious threat. The business change as a result of connectivity and communities leading to more and more networks of skills bringing together knowledge to design a car (Local Motors), funding (Kickstarter) – and it is all about sharing knowledge instead of keeping it inside – sharing creates the momentum in the world. You can look at Robin’s presentation(s) at Slideshare here.
All very positive trends for the future, however, a big threat to the currently established companies. Robin named it the Third Revolution which is in line with what we are discussing in our PLM world, although some of us call it even the Fourth Revolution (Industry 4.0).
Professor Martin Eigner from the Technical University of Kaiserslautern brought us back to reality in his presentation: Industry 4.0 or Industrial Internet: What is the impact for PLM?
Martin stood at the base for what we call PLM and already for several years he is explaining to us that the classical definition for PLM is too narrow. More and more we are developing systems instead of products. Therefore, he prefers the abbreviation SysLM, which is more than 3 characters and therefore probably hard to accept by the industry.
System development and, therefore, multidisciplinary development of systems introduces a new complexity. Traditional change management for Mechanical CAD (ECO/ECR) is entirely different from how software change management is handled (baselines / branches related to features). The way systems are designed, require a different methodology where systems engineering is an integral part of the development process, see Model-Based Systems Engineering (MBSE).
Next Martin discussed 4 potential IT-architectures where, based on the “products” and business needs, a different balance of PLM, ALM or ERP activities is required.
Martin’s final point was about the need for standards support these architectures, bringing together OSLC, PCLS, etc.
Standards are necessary for fast and affordable integrations and data exchange.
The first topic is related to big data and analytics. Many are trying to get a grip on big data with analytics. However, the real benefit of big data comes when you are able to apply algorithms to it. Gartner just made an interesting statement related to big data (below) and Marc Halpern added to this quote that there is an intrinsic need for data standards in order to apply algorithms.
When algorithms can be used, classical processes like ECO, ECR or managers might become obsolete and even a jobs like an accountant is at risk. This as predicted in article in the Economist in February 2014 – the onrushing Wave
The second topic, where I believe we are still hesitating too long at management level, is making decisions, to anticipate the upcoming digital wave and all of its side effects. We see a huge wave coming. If we do not mobilize the people, this wave might be a tsunami for those still at the seaside
Conclusion: PDT2015 was an inspiring, well-balanced conference with excellent opportunity to network with all people attending. For those interested in the details of the PLM future and standards an ideal opportunity to get up to date. And next the challenge: Make it happen at your company!
.. if you reach this point, my compliments for your persistency to read it all. Too long for a blog post and even here I had to strip
This is a post I published on LinkedIn on July 28th related to a discussion around Excel and PLM usage and usability.
Reposted for my blog subscribers.
This post is written in the context of two posts that recently caught my attention. One post from Lionel Grealou – comparing PLM and Excel collaboration and reaction on this post and its comments by Oleg Shilovitsky – PLM Need for speed.
Both posts discuss the difference between Excel (easy to use / easy to deploy ) and a PLM system (complex to use / complicated deployment). And when you read both posts you would believe that it is mainly deployment and usability that are blocking PLM systems to be used instead of Excel.
Then I realized this cannot be the case. If usability and deployment were blocking issues for an enterprise system, how would it be possible that the most infamous system for usability, SAP, it one of the top-selling enterprise applications. Probably SAP is the best-selling enterprise application. In addition, I have never heard about any company mentioning SAP is easy to deploy. So what is the difference?
I assume if Excel had existed in its current state in the early days of MRP, people might be tempted to use Excel for some ERP functions. However they would soon realize that Excel is error prone and when you buy the wrong materials or when make errors in your resource scheduling, soon you would try to solve it in a more secure way. Using an ERP system.
ERP systems have never been sold to the users for their usability. It is more that the management is looking for guarantees that the execution process is under control. Minimize the potential for errors and try to automate all activities as much as possible. As the production process is directly linked to finance, it is crucial to have it under control. Goodbye usability, safety first.
Why is this approach not accepted for PLM?
Why do we talk about usability?
First of all, the roots for PLM come from the engineering department (PDM) and, therefore, their primary data management system was not considered an enterprise system. And when you implement a system for a department, discussions will be at the user level. So user acceptance became necessary for PDM and PLM.
But this is not the main reason. Innovation, Product Development, Sales Engineering, Engineering are all iterative activities. In contrary to ERP, there is no linear process defined how to develop the ultimate product the first time right. Although this believe existed in the nineties by an ERP country manager that I met that time. He told me
“Engineers are resources that do not want to be managed, but we will get them.”
An absurd statement I hope you agree. However, the thoughts behind this statement are correct. How do you make sure product development is done in the most efficient manner?
If you look at large enterprises in the aerospace or automotive industry, they implemented PLM, which for sure was not user-friendly. Why did they implement PLM? As they did not want to fix the errors, an Excel-like implementation would bring.
Using Excel has a lot of hidden costs. How to make sure you work with the right version as multiple copies exist? How do you know if the Excel does not contain any type indicating wrong parts? You will learn this only once it is too late. How do you understand the related information to the Excel (CAD files, specifications, etc., etc.)? All lead to a lot of extra manual work depending on the accuracy and discipline of every employee in the company. Large enterprises do not want to be dependent on individual skills.
Large enterprise have shown that it is not about usability in the first place if you wish to control the data. Like for ERP systems, they are aware of the need for PLM with reduced usability above being (fl)Exel with all its related inconvenience.
I believe when there is a discussion about PLM or Excel, we have not reached the needed conceptual level to implement PLM. PLM is about sharing data and breaking down silos. Sharing allows better and faster collaboration, maintaining quality, and this is what companies want to achieve. Therefore the title: How do you measure collaboration. This is the process you wish to optimize, and I suspect that when you would compare user-friendly collaboration with Excel with less user-friendly PLM, you might discover PLM is more efficient.
Therefore stop comparing Excel and PLM. It is all about enabling collaboration and changing people to work together (the biggest challenge – more than usability).
Conclusion: Once we have agreed on that concept, PLM value is about collaboration, there is always to hope to enhance usability. Even SAP is working on that – it is an enterprise software issue.
Three weeks ago there was the Product Innovation conference in Düsseldorf. In my earlier post (here) I described what I experienced during this event. Now, after all the information is somehow digested, here a more high-level post, describing the visible change in business and how it relates to PLM. Trying to describe this change in non-academic wording but in images. Therefore, I described the upcoming change in the title: from linear to circular and fast.
Let me explain this image step by step
In the middle of the previous century, we were thinking linear in education and in business. Everything had a predictable path and manufacturing companies were pushing their products to the market. First local, later in time, more global. Still the delivery process was pretty linear:
This linear approach is reflected in how organizations are structured, how they are aligned to the different steps of the product development and manufacturing process. Below a slide I used at the end of the nineties to describe the situation and the pain; lack of visibility what happens overall.
It is discouraging to see that this situation still exists in many companies.
At the end of the nineties, early 2000, PLM was introduced, conceptually managing the whole lifecycle. In reality, it was mainly a more tight connection between design and manufacturing preparation, pushing data into ERP. The main purpose was managing the collaboration between different design disciplines and dispersed teams.
Jim Brown (Tech-Clarity) wrote at that time a white paper, which is still valid for many businesses, describing the complementary roles of PLM and ERP. See the picture below:
Jim introduced the circle and the arrow. PLM: a circle with iterations, interacting with ERP: the arrow for execution. Here visual it became already clear an arrow does not have the same behavior as a circle. The 100 % linearity in business was gone.
Let´s have a closer look at the PLM circle
This is how PLM is deployed in most organizations:
Information is pushed in the ERP system as disconnected information, no longer managed and connected to its design intent.
Next, the ERP system is most of the time not well-equipped for managing after sales and services content. Another disconnect comes up.
Yes, spare parts could be ordered through ERP, but issues appearing at the customer base are not stored in ERP, often stored in a separate system again (if stored beyond email).
The result is that when working in the concept phase, there is no information available for R&D to have a good understanding of how the market or customers work with their product. So how good will it be? Check in your company how well your R&D is connected with the field?
And then the change started …
This could have stayed reality for a long time if there were not a huge business change upcoming. The world becomes digital and connected. As a result, local inefficiencies or regional underperformance will be replaced by better-performing companies. The Darwin principle. And most likely the better performing companies are coming from the emerging markets as there they do not suffer from the historical processes and “knowledge of the past”. They can step into the digital world much faster.
In parallel with these fast growing emerging markets, we discovered that we have to reconsider the ways we use our natural resources to guarantee a future for next generations. Instead of spilling resources to deliver our products, there is a need to reuse materials and resources, introducing a new circle: the circular economy.
The circular economy can have an impact on how companies bring products to the market. Instead of buying products (CAPEX) more and more organizations (and modern people) start using products or services in a rental model (OPEX). No capital investment anymore, pay as you go for usage or capacity.
The digital and connected world can have a huge impact on the products or services available in the near future. You are probably familiar with the buzz around “The Internet of Things” or “Smart and Connected”.
No longer are products depending on mechanical behavior only, more and more products are relying on electrical components with adaptive behavior through software. Devices that connect with their environment report back information to the manufacturer. This allows companies to understand what happens with their products in the field and how to react on that.
Remember the first PLM circle?
Now we can create continuity of data !
Combine the circular economy, the digital and connected world and you will discover everything can go much faster. A crucial inhibitor is how companies can reorganize themselves around this faster changing, circular approach. Companies need to understand and react to market trends in the fastest and adequate way. The future will be probably about lower volumes of the same products, higher variability towards the market and most likely more and more combining products with services (the Experience Model). This requires a flexible organization and most likely a new business model which will differ from the sequential, hierarchical organizations that we know at this moment.
The future business model ?
The flexibility in products and services will more and more come from embedded software or supported by software services. Software services will be more and more cloud based, to avoid IT-complexity and give scalability.
Software development and integration with products and services are already a challenge for classical mechanical companies. They are struggling to transform their mechanical-oriented design process towards support for software. In the long-term, the software design process could become the primary process, which would mean a change from (sequential – streamlined) lean towards (iterative – SCRUM) agile.
Once again, we see the linear process becoming challenged by the circular iterations.
This might be the end of lean organizations, potentially having to mix with agile conepts..
If it was a coincidence or not, I cannot judge, however during the PI Conference I learned about W.L. Gore & Associates, with their unique business model supporting this more dynamic future. No need to have a massive organization re-org to align the business, as the business is all the time aligning itself through its employees.
Last weekend, I discovered Semco Partners in the newspaper and I am sure there are more companies organizing themselves to become reactive instead of linear – for sure in high-tech world.
Linearity is disappearing in business, it is all about reactive, multidisciplinary teams within organizations in order to support customers and their fast changing demands.
Fast reactions need new business organizations models (flexible, non-hierarchical) and new IT-support models (business information platforms – no longer PLM/ERP system thinking)
What do you think ? The end of linear ?
I have talked enough about platforms recently. Still if you want to read more about it:
Engineering.com: Prod. Innovation Platform PlugnPlay in next generation PLM
Gartner: Product Innovation Platforms
VirtualDutchman: Platform, Backbone, Service Bus or BI
This is the fifth year that marketkey organized their vendor-independent conference in Europe around Product Innovation, where PLM is the major cornerstone. Approximate 100 companies attended this conference coming from various industries. As there were most of the time two till four parallel tracks (program here), it will still take time for me to digest all the content. However here a first impression and a comparison to what has changed since the PI Conference in 2014 – you can read my review from that conference here.
First of all the keynote speeches for this conference were excellent and were a good foundation for attendees to discuss and open their mind. Secondly I felt that this conference was actually dealing with the imminent shift from classic, centralized businesses towards the data-centric approach to connectivity of information coming from anyone / anything connected. Naturally the Internet of Everything (IoE) and the Internet of Things (IoT) were part of the discussion combined with changing business models: moving from delivering products toward offering services (CAPEX versus OPEX).
Some of the highlights here:
The first keynote speaker was Carlo Rati Director, MIT Senseable Lab. He illustrated through various experiments and examples how being connected through devices we can change and improve our world: tagging waste, mobile phone activity in a city and the Copenhagen Wheel. His main conclusion (not a surprise): For innovation there is a need to change collaboration. Instead of staying within the company / discipline boundaries solving problems through collaboration between different disciplines will lead to different thinking. How is your company dealing with innovation?
The second session I attended was John Housego from W.L. Gore and Associates who explained the company’s model for continuous growth and innovation. The company’s future is not based on management but based on leadership of people working in teams in a flat organization. Every employee is an associate, directly involved and challenged to define the company’s future. Have a read about the company’s background here on Wikipedia.
Although the company is 50 years old, I realized that their cultural model is a perfect match with the future of many businesses. More and more companies need to be lean and flexible and support direct contact between the field, customers, market and experts inside the company. Implementing a modern PLM platform should be “a piece of cake” if the technology exists, as W.L. Gore’s associates will not block the change if they understand the value. No silos to break down.
My presentation “The Challenge of PLM Upgrades as We See the Rules of Business Change” was based around two themes (perpetual software ? / seamless upgrades ?) and from there look towards the future what to expect in business. When we look back, we see that every 10 years there is a major technology change, which makes the past incompatible to upgrade. Now we are dreaming that cloud-based solutions are the future to guarantee seamless upgrades (let’s wait 10 years). To my opinion companies should not consider a PLM upgrade at this moment.
The changes in business models, people behavior and skills plus technology change, will enable companies to move towards a data-centric approach. Companies need to break with the past (a linear, mechanical-design-based, product development approach) and redesign a platform for the future (a business-innovation platform based on the data). In my upcoming blog post(s) I will give more background on this statement.
Trond Zimmerman from the Volvo Group Truck explained the challenges and solution concept they experienced as they are currently implementing answering the challenge of working in a joint venture with Dongfeng Commercial Vehicles. As in a joined venture you want to optimize sharing of common parts, still you cannot expect a single PLM solution for the total joint venture. For that reason, Volvo Group Truck is implementing Share-A-Space from Eurostep to have a controlled collaboration layer between the two joint venture partners.
This is, to my opinion, one of the examples of future PLM practices, where data will not be stored in a single monolithic system, but data will be connected through information layers and services. The case is similar to what has been presented last year at Product Innovation 2014 where Eurostep and Siemens Industrial Turbomachinery implemented a similar layer on top of their PDM environment to enable controlled sharing with their suppliers.
David Rowan from wired.co.uk closed the day with his keynote: Understanding the New Rules of Product Innovation. He touched the same topic as John Housego from W.L. Gore somehow: it is all about democratization. Instead of hierarchy we are moving to network-based activities. And this approach has a huge impact on businesses. David’s message: Prepare for constant change. Where in the past we lived in a “linear” century, change according to Moore’s law, we are entering now an exponential century where change is going faster and faster. Besides examples of the Internet of Thing, David also gave some examples of the Internet of Stupid Things. He showed a quote from Steve Balmer stating that nobody would pay $ 500 for a phone (Apple). The risk he made is that by claiming some of these stupid inventions might lead to a quote in the future. I think the challenge is always to stay open-minded without judging as at the end the market will decide.
PLM and ERP
I spent the evening networking with a lot of people, most of them excited about the future capabilities that have been presented. In parallel, the discussion was also about the conservative behavior of many companies. Topics that are already for ten years under discussion – how to deal and connect PLM and ERP, where is the MBOM, what are the roles of PLM and ERP for an organization, are still thankful topics for a discussion, showing where most companies now are with their business understanding.
In parallel to a product innovation conference apparently there is still a need to agree on basic PLM concepts from the previous century.
The second day opened with an excellent keynote speech from Dirk Schlesinger from Cisco. He talked about the Internet of Everything and provided examples of the main components of IoE: Connectivity, Sensors, Platform, Analytics, and Mobility. In particular the example of Connectivity was demonstrating the future benefits modern PLM platforms can bring. Dirk talked about a project with Dundee Mining where everything in the mine was tagged with RFI devices (people, equipment, vehicles, and resources) and the whole mine was equipped with Wi-Fi.
Based on this approach the execution and planning of what happened was done in their HQ through a virtual environment, giving planners immediate visibility of what happens and allowing them to decide on real data. This is exactly the message I have posted in my recent blog posts.
The most fascinating part were the reported results. This project is ongoing now for 3 years and the first year they achieved a production increase of 30 %. Now they are aiming for this year for a 400 % production increase and a 250 % efficiency increase. These are the numbers to imagine when you implement a digital strategy. It is no longer any more about making our classical processes more efficient, it is about everyone connected and everyone collaborates.
Marc Halpern from Gartner gave an good presentation connecting the hype of the Internet of Things with the world of PLM again, talking about Product Innovation Platforms. Marc also touched on the (needed) upcoming change in engineering processes. More and more we will develop complex products, which need system thinking. Systems of Systems to handle this complexity, As Marc stated: “Product, process, culture is based on electro-mechanical products where the future trend is all about software.” We should reconsider our Bill of Materials (mechanical) and think probably more about a Bill of Features (software). Much of Marc’s presentation contained the same elements as I discussed in my PDT2014 blog post from October last year.
I was happy to see Jenni Ala-Mantila presenting the usage of PLM system for Skanska Oy. Skanska is one of the largest construction companies operating global. See one of their beautiful corporate videos here. I always have been an advocate to use PLM practices and PLM infrastructure to enhance, in particular, the data-continuity in a business where people work in silos with separate tools. There are so many benefits to gain by having an end-to-end visibility of the project and its related data. Jenni’s presentation was confirming this.
By implementing a PLM backbone with a focus on project management, supplier collaboration and risk management, she confirmed that PLM has contributed significant to their Five Zero – vision: Zero loss-making projects, Zero Environmental incidents, Zero Accidents, Zero Ethical breaches and Zero Defects. Skanska is really a visionary company although it was frustrating to learn that there was still a need to build a SharePoint connection with their PLM environment. The future of data-centric has not reached everyone in the organization yet.
The last two sessions of the conference, a panel discussion “Why is Process Innovation Challenging & What can be done about it” plus the final keynote “Sourcing Growth where Growth Takes Place” had some commonality which I expressed in some twitter quotes:
Where last year I had the impression that the PLM world was somehow in a static mode, not so much news in 2014. It became clear in this 2015 conference that the change towards new business paradigms is really happening and at a faster pace than expected. From mechanical development processes to software processes, from linear towards continuous changes. Moe to come this year
Currently, I am preparing my sessions for the upcoming Product Innovation conference in Düsseldorf. See: www.picongress.com. My first session will be about PLM upgrades and how to deal with them for the future. It is a challenging topic as some PLM vendors claim using their product, there will be no upgrade problems and cloud-based solutions also provide seamless upgrades in the future.
Don’t cheer to early when you see this kind of messages. I had the chance to look back the past twenty years what happened with PLM and tried to look forward to the upcoming ten years what might happen.
In addition, this lead to some interesting thoughts that I will share in detail during the conference. I will come back to this topic in this blog after the conference. Here some unstructured thoughts that passed my mind recently when preparing this session.
Not every upgrade is the same!
First there was an interesting blog post from Ed Lopategui from E(E) with the title There is No Upgrade, where he addresses the difference between consumer software and enterprise software. Where consumer software will be used by millions and tested through long Alfa and beta cycles, PLM software often comes to the market in what you could consider a beta stage with limited testing.
Most PLM vendors invest a lot of their revenue in providing new functionality and technology based on their high-end customer demands. They do not have the time and budget to invest in the details of the solution; for this reason PLM solutions will remain a kind of framework.
In addition, when a solution is not 100 % complete there will be an adaptation from the customer, making upgrades later, not 100 percent guaranteed or compatible. More details on PLM Upgrades after the conference, let’s look into the near future.
The Future of PLM resides in Brussels!
Some weeks ago I was positively amused by some messages coming from Roger Tempest (PLM Interest Group) related to the future of PLM. Roger claims the PLM industry is effectively rudderless. For that Roger announces the Launch Meeting for the PLM International Research Foundation,
“simple because such a platform does not yet exist.”
I checked if perhaps an ERP International Research Foundation existed, but I only found references to SAP, so what makes the PLM International Research Foundation unique ?
According to Roger, the reason behind this initiative is the lack of clear targets for PLM. I quote:
The lack of detailed thought means that many future possibilities for PLM are just not being considered; and the lack of collective thought means that even the current initiatives to improve PLM remain fragmented and ineffective
As I mentioned in the previous paragraph, PLM vendors are in a kind of rat race to keep up with market demands, rapidly changing business, meanwhile building on their core technology. Not an easy game, as they cannot start from scratch, but for sure, and here I agree, they do not optimize their portfolio.
Who can and will take part in such a research forum?
This is the same for companies implementing PLM systems. They are looking for solutions in the market that improve their businesses. This might be a PLM system, but perhaps other components bring even a higher value. Is ALM or SLM part of PLM, for example? This is a challenge as who defined what PLM is and where are the boundaries ?
This leaves the activity to the academics for sure they will have the most advanced and futuristic vision of what is possible conceptually. From my observations, the main challenges currently with PLM are that even the vendors are ten years ahead in their capabilities compared to what most companies are asking for. For the academic approach, I still have to think about Monty Python’s sketch related to soccer. See below
Sorry for the generalization, I believe we should not focus on what is PLM and how PLM should be defined. What we now call PLM is entirely different from what we called PLM 10 years ago, see my last year´s post PLM is changing. I think the future should focus how we are going to deal with business platforms, which contain PLM facets.
The PLM future
Interesting enough we are on the brink of a new business paradigm due to globalization and digitization as you might have read from my recent posts. There are analysts, consultancy firms and research foundations all describing this challenging future.
Have a look at this post from Verdi Ogewell’s article at Engineering.com: Product Innovation Platform: Plug’n’play next generation PLM. The post is a summary of the platform discussion during the PDT 2014 conference, which I consider as one of the best conferences if you want to go into the details. See also my post: The weekend after PDT 2014.
The future is about innovation and/or business platforms where data is available based on a federated approach, not necessary based on a single, monolithic PLM platform.
Focusing on standardization and openness of such a platform is for me the central mission we have.
Remember: Openness is a right, not a privilege.
Let PLM vendors and other application providers develop their optimized services for individual business scenarios that will remove the borders of system thinking. Academic support will be needed to solve interoperability and openness required for initiatives like Industry 4.0 and IDC´s third platform.
I am looking forward to interesting discussions at the upcoming
PI conference but also with peers in my network.
The future is challenging and will it still be named PLM?
A PLM-twisted mind never rests. Not even during these Xmas seasonal holidays, when everything else comes to rest. The dark Christmas days, here in the Netherlands, are the days to share with your family and with others who need your support. For a short time, we focus on being kind, charity and what matters for humanity.
Back to our purpose you might say. This year Pope Francis brought this message very aptly to his cardinals – read it here if you have not heard about it yet.
Next my PLM-twisted mind started ringing all kind of Xmas bells. The pope is talking about PLM! Instead of focusing on your business silo, your personal kingdom, we have to focus on what is the original purpose of our company, not of the individual person. Forget politics, back to the mission !
Then I realized there is a paradox within PLM. PLM is a must-have or must-do in a capitalistic world as through PLM companies can become be more competitive than others, win market share and become the market leader.
Nothing social. It is the base for survival in this global world. When your company is not funded by the government, you have to be competitive to survive. Your business needs to make enough money to keep on innovating and stay in business. This is why companies need PLM..
The paradox however is that effective PLM implementations are all based on the concept of sharing. Sharing data in the early ideation phases, through crowd-sourcing, open innovation, internal sharing with partners and potential customers. Next the development, delivery and maintenance phases of the lifecycle are all performing in an ideal way if information is shared and flowing across the value chain without being locked in silos. The current hype of IoT (Internet of Things) is about sharing data.
So to be a successful, profitable company, inside your business you need to go back to the roots of sharing (data). Interesting paradox isn’t it?
Therefore, I wish you all to have a PLM Pope in your company who will explain the mission and break down the holy houses. You need a PLM pope in your company to make sure it gets implemented successful.
I wish you all a happy and successful 2015
with a lot of sharing
p.s. Should I see a shrink for my PLM-twisted brain?
A year ago I wrote a blog post questioning if the construction industry would learn from PLM practices in relation to BIM.
In that post, I described several lessons learned from other industries. Topics like:
- Working on a single, shared repository of on-line data (the Digital Mock Up). Continuity of data based on a common data model – not only 3D
- It is a mindset. People need to learn to share instead of own data
- Early validation and verification based on a virtual model. Working in the full context
- Planning and anticipation for service and maintenance during the design phase. Design with the whole lifecycle in mind (and being able to verify the design)
The comments to that blog post already demonstrated that the worlds of PLM and BIM are not 100 percent comparable and that there are some serious inhibitors preventing them to come closer. One year later, let´s see where we are:
BIM moving into VDC (or BLM ?)
The first trend that becomes visible is that people in the construction industry start to use more and more the term Virtual Design and Construction (VDC) instead of BIM (Building Information Model or Building Information Management?).
The good news here is that there is less ambiguity with the term VDC instead of BIM. Does this mean many BIM managers will change their job title? Probably not as most construction companies are still in the learning phase what a digital enterprise means for them.
Still Virtual Design and Construction focuses a lot on the middle part of the full lifecycle of a construction. VDC does not necessary connect the early concept phase and for sure almost neglects the operational phase. The last phase is often ignored as construction companies are not thinking (yet) about Repair & Maintenance contracts (the service economy).
And surprisingly, last week I saw a blog post from Dassault Systemes, where Dassault introduced the word BLM (Building Lifecycle Management). Related to this blog post also some LinkedIn discussions started. BLM, according to Dassault Systemes, is the combination of BIM and PLM – read this post here.
The challenge however for construction companies is to, what are the related data sets they require and how can you create this continuity of data. This brings us to one of the most important inhibitors.
Where in other industries a clear product data owner exists, the ownership of data in EPC (Engineering, Procurement, Construction) companies, typical for the construction industry or oil & gas industry is most of the times on purpose vague.
First of all the owner of a construction often does not know which data could be relevant to maintain. And secondly, as soon as the owner asks for more detailed information, he will have to pay for that, raising the costs, which not directly flow back to benefits, only later during the FM (Facility Management) /Operational stage.
And let´s imagine the owner could get the all the data required. Next the owner is at risk, as potentially having the information might makes you liable for mistakes and claims.
From discussion with construction owners I learned their policy is not to aim for the full dataset related to a construction. It reduces the risk to be liable. Imagine Boeing and Airbus would follow this approach. This brings us to another important inhibitor.
A risk shifting business
The construction industry on its own is still a risk shifting business, where each party tries to pass the risk of cost of failure to another stakeholder in the pyramid. The most powerful owners / operators of the construction industry quickly play down the risk to their contractors and suppliers. And these companies then then distribute the risk further down to their subcontractors.
If you do not accept the risk, you are no longer in the game. This is different from other industries and I have seen this approach in a few situations.
For example, I was dealing with an EPC company that wanted to implement PLM. The company expected that the PLM implementer would take a large part of the risk for the implementation. As they were always taking the risk too for their big customers when applying for a project. Here there was a clash of cultures, as PLM implementers learned that the risk of a successful PLM implementation is vague as many soft values define the success. It is not a machine or platform that has to work after some time.
Another example was related to requirements management. Here the EPC company wanted to become clear and specific to their customer. However their customer reacted very strange. Instead of being happy that the EPC company invested in more upfront thinking and analysis, the customer got annoyed as they were not used to be specific so early in the process. They told the EPC company, “if you have so many questions, probably you do not understand the business”.
So everyone in the EPC business is pushed to accept a higher risk and uncertainty than other industries. However, the big reward is that you are allowed to have a cost of failure above 15 – 20 percent without feeling bad. Which this percentage you would be out of business in other industries. And this brings us to another important inhibitor.
Accepted high cost of failure
As the industry accepts this high cost of failure, companies are not triggered to work different or to redesign their processes in order to lower the inefficiencies. The UK government mandates BIM Level 2 for their projects starting in 2016 and beyond, to reduce costs through inefficiencies.
But will the UK government invest to facilitate and aim for data ownership? Probably not, as the aim of governments is not to be extreme economical. Being not liable has a bigger value than being more efficient for governments as I learned. Being more efficient is the message to the outside world to keep the taxpayer satisfied.
It is hard to change this way of thinking. It requires a cultural change through the whole value chain. And cultural change is the “worst” thing that can happen to a company. The biggest inhibitor.
Cultural change is a point that touches all industries and there is no difference between the construction industry and for example a classical discrete manufacturing company. Because of global competition and comparable products other industries have been forced already to work different, in order to survive (and are still challenged)
The cultural change lies in people. We (the older generation) are educated and brought up in classical engineering models that reflect the post second world war best practices. Being important in a process is your job justification and job guarantee.
New paradigms, based on a digital world instead of a document-shifting world, need to be defined and matured and will make many classical data processing jobs redundant. Read this interesting article from the Economist: The Onrushing Wave
This is a challenge for every company. The highest need to implement this cultural change is ironically for those countries with the highest legacy: Western Europe / the United-States.
As these countries also have the highest labor cost, the impact of, keep on doing the old stuff, will reduce their competitiveness. The impact for construction companies is less, as the construction industry is still a local business, as at the end resources will not travel the globe to execute projects.
However cheaper labor costs become more and more available in every country. If companies want to utilize them, they need to change the process. They need shift towards more thinking and knowledge in the early lifecycle to avoid the need for high qualified people to be in the field to the fix errors.
Sharing instead of owning
For me the major purpose of PLM is to provide an infrastructure for people to share information in such a manner that others, not aware of the information, can still easily find and use the information in a relevant context of their activities. The value: People will decide on actual information and no longer become reactive on fixing errors due to lack of understanding the context.
The problem for the construction industry is that I have not seen any vendor focusing on sharing the big picture. Perhaps the BLM discussion will be a first step. For the major tool providers, like Autodesk and Bentley, their business focus is on the continuity of their tools, not on the continuity of data.
Last week I noticed a cloud based Issue Management solution, delivered by Kubus. Issue Management is one of the typical and easy benefits a PLM infrastructure can deliver. In particular if issues can be linked to projects, construction parts, processes, customers. If this solution becomes successful, the extension might be to add more data elements to the cloud solution. Main question will remain: Who owns the data ? Have a look:
For continuity of data, you need standards and openness – IFC is one of the many standards needed in the full scope of collaboration. Other industries are further developed in their standards driven by end-user organizations instead of vendors. Companies should argue with their vendors that openness is a right, not a privilege.
A year ago, I was more optimistic about the construction industry adopting PLM practices. What I have learned this year, and based on feedback from others, were are not at the turning point yet. Change is difficult to achieve from one day to the other. Meanwhile, the whole value chain in the construction industry has different objectives. Nobody will take the risk or can afford the risk.
I remain interested to see where the construction industry is heading.
What do you think will 2015 be the year of a breakthrough?
In the past two years, I have been heavily involved in PLM Proof of Concepts sitting at both sides of the table. Supporting companies in their PLM selection, supporting a vendor explaining their value to the customer and supporting implementers assisting them with industry knowledge, all in the context of a PLM selection process.
The Proof of Concept is crucial in a PLM selection process as it is the moment where the first glimpse of reality comes to the table.
Different size of companies, different consultants all have a different view on the importance of the Proof of Concept. Let me share you my thoughts after a quick recap on the PLM selection process.
The PLM selection process
1. Build a vision
It is important that a company understands what they want to achieve in the next five to ten years, before starting a PLM selection process. Implementing PLM means a business transformation, even if you are a small company. If the management does not understand a vision is required, there is a potential risk upcoming, as PLM without a change in the way people work, will not deliver the expected results.
2. Issue an RFI to potential candidates
Once you have a PLM vision, it is time to get in touch with potential suppliers. The RFI (Request for Information) phase is the phase where you can educate yourself better by challenging the suppliers to work with you on the future solutions.
3. Discuss with selected candidates
From the RFI responses you understand which companies are attractive because they match your vision, your budget or industry. Have a first interaction with the selected companies and let them demo their standard environment targeted to your vision.
In this stage, you check with the preferred companies their ability to deliver and your ability to work together. The POC phase should give you the understanding of the scope for the upcoming PLM project and help you to understand who and how the project can be executed. More details about this step below.
Although some companies start with an RFP before the POC, for me it makes most sense to verify the details after you have a proper understanding of the To-Be solution. The RFP is often the base for the contractual scope and therefore should be as accurate as possible
In the past, I wrote in more detail about the PLM selection process. Two posts: PLM selection: Don’t do this and PLM selection: Do this. Have a read if you want to understand this part in more depth. Now let´s focus on the POC .
- As described before, the target of the Proof of Concept should be to get a better understanding of the potential To-Be processes and obtain an impression of the capabilities of the implementer and the preferred PLM software.
The result should be that you have more realistic expectations of what can be achieved and the challenges your company will face.
- From there, you can evaluate the risks, address them and build an achievable roadmap to implement. It is important that the focus is not just on the cost of the implementation.
- To sell PLM inside your company, you need to realign with the vision and explain, to all people involved,the value of “Why PLM”.
Explaining the value is complex, as not everyone needs the same message. The management will focus on business benefits where users will focus how it impacts their daily life. If you forget to explain the value, the PLM projects, it is considered again as just another software purchase.
Make sure the Proof of Concept is driven by validating future business scenarios, focusing on the To-Be solution. The high-level scenarios should be demonstrated and explained to the business people. In this stage, it is important people realize the benefits and the value of the new processes.
The POC is also an internal sales event. The goal should be to get more enthusiastic and supportive business people in your company for the upcoming PLM project. Identify the champions you will need to lean on during the implementation.
Test the implementer. To my opinion the critical success of a PLM implementation depends on the implementation team, not on the software. Therefore, the POC phase is the best moment to learn if you can work with the implementer. Do they know your business? Do they have experience with your business? The more you are aligned, the higher the chance you will be successful as a team
Show commitment to engage. Often I have seen POC engagements where the company demanded the implementer or vendor a Proof of Concept for free. This creates an unbalanced situation during the Proof of Concept as the vendor or implementer can not invest time and resources in the process as expected without any commitment from the company. By paying a certain fee for the POC, a company can demonstrate to the implementer /vendor that this POC is valuable for you and you can request the same response from them.
The Proof of Concept is not a detailed function/feature check to identify each mouse-click or option in the system. During the implementation, these details might come up. It is important in a Proof of Concept to understand the big picture and not to get lost in the details. As human beings we tend to focus on what does not work, not realizing that probably over eighty-ninety percent works according the needs
Do not expect the ultimate To-Be scenario demonstrated during the Proof of Concept. The Proof of Concept is a learning stage for both the company and the implementer to imagine the best possible scenario. PLM systems are generic and likely they will not provide a similar configuration and functionality matching your environment. At this stage validate if the primary capabilities are there and if there are gaps.
Do not run a POC with a vendor (only). This might be one of the most critical points for a POC. A PLM software vendor’s target is to sell their software and for that reason they often have dedicated presales teams that will show you everything in a smooth manner, overwhelming you with all the beauty of the software. However after the POC this team is gone and you will have to align yourself again with the implementation partner, trying to match again your business needs and their understanding.
Realize – you get what you are asking for. This is more a Do-and-Don’t message packed together. A Proof of Concept phase is a point where companies get to know each other. If you are not focused, do not expect the implementer / vendor to be committed. A PLM implementation is not product. It is a business transformation supported by products and services. Do not treat PLM implementers and vendors in the same way, as your customers treat you (in case you deliver products).
There are still many more thoughts about the Proof of Concept . Ideally you run two POCs in parallel, either with two implementers of the preferred software (if possible) or with two different implementers representing different software.
Ideally, as I know it is a challenge, especially for small and medium-sized businesses, where people are running to keep the business on-going.
Still remember, PLM is a business transformation, targeting to improve your business in the upcoming five to ten years, avoiding you are running out of business.
Your thoughts ?
As a bonus a short anecdote that I posted in 2010 still relevant:
Some time ago a Christian PLM Sales professional died (let’s call him Jack) and according to his believe he faced Saint Peter at the gates of Heaven and Hell.
Saint Peter greeted Jack and said: “Jack, with the PLM Sales you have done good and bad things to the world. For that reason, I cannot decide if you should go to Heaven or to Hell. Therefore, I allow you to make the choice yourself”.
Jack replied: “But Saint Peter, how can I make such an important decision for the rest of my eternal life. It is too difficult!”
Saint Peter replied: “No problem Jack, take a look at Heaven and Hell, take your time and then tell me your decision.”
Jack entered Heaven and he was surprised about the quietness and green atmosphere there. Angels were singing, people were eating from golden plates with the best food ever, people were reading poetry and everything was as peaceful as you could imagine. In the distance, he could see God surrounded by some prophets talking about the long-term future. After some time, Jack had seen it and went to Hell to have a view there.
And when he opened the gates of Hell, he was astonished. Everywhere he looked there were people partying, having fun. It reminded him off these sales kick-offs, he had in the past, exotic places with lots of fun. In the distance, he could see the Devil as DJ playing the latest dance music – or was it DJ Tiësto?
Jack did not hesitate and ran back to Saint Peter, no time to lose. “Saint Peter,” he said “I want to go to Hell, no doubt. And pity I did not know it before”
“So be it, ” said Saint Peter “go for it.”
And then once Jack entered Hell, it was suddenly all fire around him, people were screaming of pain and suffering and also Jack felt the first flames.
“Devil!!” He screamed “what happened to what I have seen before?”
With a sarcastic voice, the devil replied: “That? That was a proof of concept.”
Shaping the PLM platform of the Future
It was the first time I attended this event. I was positively surprised about the audience and content. Where other PLM conferences were often more focusing on current business issues, here a smaller audience (130 persons) was looking into more details around the future of PLM. Themes like PLM platforms, the Circular Economy, Open Standards and longevity of data were presented and discussed here.
The emergence of the PLM platform
1. The product lifecycle will become more and more circular due to changing business models and in parallel the different usage/availability of materials will have an impact how we design and deliver products
Can current processes and tools support today’s complexity. And what about tomorrow? According to a CIMdata survey there is a clear difference in profit and performance between leaders and followers, and the gap is increasing faster. “Can you afford yourself to be a follower ?” is a question companies should ask themselves.
Rethinking PLM platform does not bring the 2-3 % efficiency benefit but can bring benefits from 20 % and more.
Peter sees a federated platform as a must for companies to survive. I in particular likes his statement:
The new business platform paradigm is one in which solutions from multiple providers must be seamlessly deployed using a resilient architecture that can withstand rapid changes in business functions and delivery modalities
Industry voices on the Future PLM platform
Steven Vetterman from ProSTEP talked about PLM in the automotive industry. Steven started describing the change in the automotive industry, by quoting Heraclitus Τα πάντα ρεί – the only constant is change. Steven described two major changes in the automotive industry:
1. The effect of globalization, technology and laws & ecology
2. The change of the role of IT and the impact of culture & collaboration
Interesting observation is that the preferred automotive market will shift to the BRIC countries. In 2050 more than 50 % of the world population (estimate almost 10 billion people at that time) will be living in Asia, 25 percent in Africa. Europe and Japan are aging. They will not invest in new cars.
For Steven, it was clear that current automotive companies are not yet organized to support and integrate modern technologies (systems engineering / electrical / software) beyond mechanical designs. Neither are they open for a true global collaboration between all players in the industry. Some of the big automotive companies are still struggling with their rigid PLM implementation. There is a need for open PLM, not driven from a single PLM system, but based on a federated environment of information.
Yves Baudier spoke on behalf of the aerospace industry about the standardization effort at their Strategic Standardization Group around Airbus and some of its strategic suppliers, like Thales, Safran, BAE systems and more. If you look at the ASD Radar, you might get a feeling for the complexity of standards that exist and are relevant for the Airbus group.
It is a complex network of evolving standard all providing (future) benefits in some domains. Yves was talking about the through Lifecycle support which is striving for data creation once and reuse many times during the lifecycle. The conclusion from Yves, like all the previous speakers is that: The PLM Platform of the Future will be federative, and standards will enable PLM Interoperability
Energy and Marine
Shefali Arora from Wärtsilä spoke on behalf of the energy and marine sector and gave an overview of the current trends in their business and the role of PLM in Wärtsilä. With PLM, Wärtsilä wants to capitalize on its knowledge, drive costs down and above all improve business agility. As the future is in flexibility. Shefali gave an overview of their PLM roadmap covering the aspects of PDM (with Teamcenter), ERP (SAP) and a PLM backbone (Share-A-space). The PLM backbone providing connectivity of data between all lifecycle stages and external partners (customer / suppliers) based on the PLCS standard. Again another session demonstrating the future of PLM is in an open and federated environment
The future PLM platform is a federated platform which adheres to standards provides openness of interfaces that permit the platform to be reliable over multiple upgrade cycles and being able to integrate third-parties (Peter Bilello)
The afternoon session I followed the Systems Engineering track. Peter Bilello gave an overview of Model-Based Systems engineering and illustrated based on a CIMdata survey that even though many companies have a systems engineering strategy in place it is not applied consistently. And indeed several companies I have been dealing with recently expressed their desire to integrate systems engineering into their overall product development strategy. Often this approach is confused by believing requirements management and product development equal systems engineering. Still a way to go.
Dieter Scheithauer presented his vision that Systems Engineering should be a part of PLM, and he gave a very decent, academic overview how all is related. Important for companies that want to go into that direction, you need to understand where you aiming at. I liked his comparison of a system product structure and a physical product structure, helping companies to grab the difference between a virtual, system view and a physical product view:
More Industry voices
The afternoon session started with Christophe Castaing, explaining BIM (Building Information Modeling) and the typical characteristics of the construction industry. Although many construction companies focus on the construction phase, for 100 pieces of information/exchange to be managed during the full life cycle only 5 will be managed during the initial design phase (BIM), 20 will be managed during the construction phase (BAM) and finally 75 will be managed during the operation phase (BOOM). I wrote about PLM and BIM last year: Will 2014 become the year the construction industry will discover PLM?
Christophe presented the themes from the French MINnD project, where the aim is starting from an Information Model to come to a platform, supporting and integrated with the particular civil and construction standards, like IFC. CityGml but also PLCS standard (isostep ISO 10303-239
Amir Rashid described the need for PLM in the consumer product markets stating the circular economy as one of the main drivers. Especially in consumer markets, product waste can be extremely high due to the short lifetime of the product and everything is scrapped to land waste afterward. Interesting quote from Amir: Sustainability’s goal is to create possibilities not to limit options. He illustrated how Xerox already has sustainability as part of their product development since 1984. The diagram below demonstrates how the circular economy can impact all business today when well-orchestrated.
Marc Halpern closed the tracks with his presentation around Product Innovation Platforms, describing how Product Design and PLM might evolve in the upcoming digital era. Gartner believes that future PLM platforms will provide insight (understand and analyze Big Data), Adaptability (flexible to integrate and maintain through an open service oriented architecture), promoting reuse (identifying similarity based on metadata and geometry), discovery (the integration of search analysis and simulation) and finally community (using the social paradigm).
If you look to current PLM systems, most of them are far from this definition, and if you support Gartner’s vision, there is still a lot of work for PLM vendor to do.
Interesting Marc also identified five significant risks that could delay or prevent from implementing this vision:
- inadequate openness (pushing back open collaboration)
- incomplete standards (blocking implementation of openness)
- uncertain cloud performance (the future is in cloud services)
- the steep learning curve (it is a big mind shift for companies)
- Cyber-terrorism (where is your data safe?)
After Marc´s session there was an interesting panel discussion with some the speakers from that day, briefly answering discussing questions from the audience. As the presentations have been fairly technical, it was logical that the first question that came up was: What about change management?
A topic that could fill the rest of the week but the PDT dinner was waiting – a good place to network and digest the day.
Day 2 started with two interesting topics. The first presentation was a joined presentation from Max Fouache (IBM) and Jean-Bernard Hentz (Airbus – CAD/CAM/PDM R&T and IT Backbones). The topic was about the obsolescence of information systems: Hardware and PLM applications. As in the aerospace industry some data needs to be available for 75 years. You can imagine that during 75 years a lot can change to hardware and software systems. At Airbus, there are currently 2500 applications, provided by approximate 600 suppliers that need to be maintained. IBM and Airbus presented a Proof of Concept done with virtualization of different platforms supporting CATIA V4/V5 using Linux, Windows XP, W7, W8 which is just a small part of all the data.
The conclusion from this session was:
To benefit from PLM of the future, the PLM of the past has to be managed. Migration is not the only answer. Look for solutions that exist to mitigate risks and reduce costs of PLM Obsolescence. Usage and compliance to Standards is crucial.
Next Howard Mason, Corporate Information Standards Manager took us on a nice journey through the history of standards developed in his business. I loved his statement: Interoperability is a right, not a privilege
In the systems engineering track Kent Freeland talked about Nuclear Knowledge Management and CM in Systems Engineering. As this is one of my favorite domains, we had a good discussion on the need for pro-active Knowledge Management, which somehow implies a CM approach through the whole lifecycle of a plant. Knowledge management is not equal to store information in a central place. It is about building and providing data in context that it can be used.
Ontology for systems engineering
Leo van Ruijven provided a session for insiders: An ontology for Systems Engineering based on ISO 15926-11. His simplified approach compared to the ISO 15288 lead to several discussion between supporters and opponents during lunch time.
Master Data Management
Based on the type of information companies want to manage in relation to each other supported by various applications (PLM, ERP, MES, MRO, …) this can be a complex exercise and Marc ended with recommendations and an action plan for the MDM lead. In my customer engagements I also see more and more the digital transformation leads to MDM questions. Can we replace Excel files by mastered data in a database?
Almost at the end of the day I was speaking about the PDM platform of the people targeted for the people from the future. Here I highlighted the fundamental change in skills that’s upcoming. Where my generation was trained to own and capture information as much as possible information in your brain (or cabinet), future generations are trained and skilled in finding data and building information out of it. Owning (information) is not crucial for them. Perhaps as the world is moving fast. See this nice YouTube movie at the end.
Ella Jamsin ended the conference on behalf of the Ellen MacArthur Foundation explaining the need to move to a circular economy and the PLM should play a role in that. No longer is PLM from cradle-to-grave but PLM should support the lifecycle from cradle-to-cradle.
Unfortunate I could not attend all sessions as there were several parallel sessions. Neither have I written about all sessions I attended. The PDT Europe conference, a conference for people who mind about the details around the PLM future concepts and the usage of standards, is a must for future strategists.