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Everyone wants to be a game changer and in reality almost no one is a game changer. Game changing is a popular term and personally I believe that in old Europe and probably also in the old US, we should have the courage and understanding changing the game in our industries.

Why ? Read the next analogy.

1974

With my Dutch roots and passion for soccer, I saw the first example of game changing happening in 1974 with soccer. The game where 22 players kick a ball from side to side, and the Germans win in the last minute.

clip_image002My passion and trauma started that year where the Dutch national team changed the soccer game tactics by introducing totaalvoetbal.

The Dutch team at that time coached by Rinus Michels and with star player Johan Cruyff  played this in perfection.

Defenders could play as forwards and they other way around. Combined with the offside-trap; the Dutch team reached the finals of the world championship soccer both in 1974 and 1978. Of course losing the final in both situations to the home playing teams (Germany in 74 – Argentina in 78 with some help of the referee we believe)

This concept brought the Dutch team for several years at the top, as the changed tactics brought a competitive advantage. Other teams and players, not educated in the Dutch soccer school could not copy that concept so fast

image

At the same time, there was a game changer for business upcoming in 1974, the PC.

On the picture, you see Steve Jobs and Steve Wozniak testing their Apple 1 design. The abbreviation IT was not common yet and the first mouse device and Intel 8008 processor were coming to the market.

This was disruptive innovation at that time, as we would realize 20 years later. The PC was a game changer for business.

2006

Johan Cruyff remained a game changer and when starting to coach and influence the Barcelona team, it was his playing concept tika-taka that brought the Spanish soccer team and the Barcelona team to the highest, unbeatable level in the world for the past 8 years

clip_image002[6]Instead of having strong and tall players to force yourself to the goal, it was all about possession and control of the ball. As long as you have the ball the opponent cannot score. And if you all play very close together around the ball, there is never a big distance to pass when trying to recapture the ball.

This was a game changer, hard to copy overnight, till the past two years. Now other national teams and club teams have learned to use these tactics too, and the Spanish team and Barcelona are no longer lonely at the top.

Game changers have a competitive advantage as it takes time for the competition to master the new concept. And the larger the change, the bigger the impact on business.

Also, PLM was supposed to be a game changer in 2006. The term PLM became more and more accepted in business, but was PLM really changing the game ?

imagePLM at that time was connecting departments and disciplines in a digital manner with each other, no matter where they were around the globe. And since the information was stored in centralized places, databases and file sharing vaults, it created the illusion that everyone was working along the same sets of data.

The major successes of PLM in this approach are coming from efficiency through digitization of data exchange between departments and the digitization of processes. Already a significant step forward and bringing enough benefits to justify a PLM implementation.

Still I do not consider PLM in 2006 a real game changer. There was often no departmental or business change combined with it. If you look at the soccer analogy, the game change is all about a different behavior to reach the goal, it is not about better tools (or shoes).

The PLM picture shows the ideal 2006 picture, how each department forwards information to the next department. But where is PLM supporting after sales/services in 2006 ? And the connection between After Sales/Services and Concept is in most of the companies not formalized or existing. And exactly that connection should give the feedback from the market, from the field to deliver better products.

The real game changer starts when people learn and understand sharing data across the whole product or project lifecycle. The complexity is in the word sharing. There is a big difference between storing everything in a central place and sharing data so other people can find it and use it.

imagePeople are not used to share data. We like to own data, and when we create or store data, we hate the overhead of making data sharable (understandable) or useful for others. As long as we know where it is, we believe our job is safe.

But our job is no longer safe as we see in the declining economies in Europe and the US. And the reason for that:

Data is changing the game

In the recent years the discussion about BI (Business Intelligence) and Big Data emerged. There is more and more digital information available. And it became impossible for companies to own all the data or even think about storing the data themselves and share it among their dispersed enterprises. Combined with the rise of cloud-based platforms, where data can be shared (theoretically) no matter where you are, no matter which device you are using, there is a huge potential to change the game.

It is a game changer as it is not about just installing the new tools and new software. There are two major mind shifts to make.

  • It is about moving from documents towards data. This is an extreme slow process. Even if your company is 100 % digital, it might be that your customer, supplier still requires a printed and wet-signed document or drawing, as a legal confirmation for the transaction. Documents are comfortable containers to share, but they are killing for fast and accurate processing of the data that is inside them.
  • It is about sharing and combining data. It does not make sense to dump data again in huge databases. The value only comes when the data is shared between disciplines and partners. For example, a part definition can have hundreds of attributes, where some are created by engineering, other attributes created by purchasing and some other attributes directly come from the supplier. Do not fall in the ERP-trap that everything needs to be in one system and controlled by one organization.

imageBecause of the availability of data, the world has become global and more transparent for companies. And what you see here is that the traditional companies in Europe and the US struggle with that. Their current practices are not tuned towards a digital world, more towards the classical, departmental approach. To change this, you need to be a game changer, and I believe many CEOs know that they need to change the game.

The upcoming economies have two major benefits:

  • Not so much legacy, therefore, building a digital enterprise for them is easier. They do not have to break down ivory towers and 150 years of proud ownership.
  • The average cost of labor is lower than the costs in Europe and the US, therefore, even if they do not do it right at the first time; there is enough margin to spend more resources to meet the objectives.

imageThe diagram I showed in July during the PI Apparel conference was my interpretation of the future of PLM. However, if you analyze the diagram, you see that it is not a 100 % classical PLM scope anymore. It is also about social interaction, supplier execution and logistics. These areas are not classical PLM domains and therefore I mentioned in the past, the typical PLM system might dissolve in something bigger. It will be all about digital processes based on data coming for various sources, structured and unstructured. Will it still be PLM or will we call it different ?

The big consultancy firms are all addressing this topic – not necessary on the PLM level:

2012  Cap Gemini – The Digital advantage: …..

2013  Accenture – Dealing with digital technology’s disruptive impact on the workforce

2014  McKinsey – Why every leader should care about digitization and disruptive innovation

For CEOs it is important to understand that the new, upcoming generations are already thinking in data (generation Y and beyond). By nature, they are used to share data instead of owning data in many aspects. Making the transition to the future is, therefore, also a process of connecting and understanding the future generations.  I wrote about it last year: Mixing past and future generations with a PLM sauce

This cannot be learned from an ivory tower. The easiest way is not to be worried by this trend and continue working as before, losing business and margin slowly year by year.

As in many businesses people are fired for making big mistakes, doing nothing unfortunate is most of the time not considered as a big mistake, although it is the biggest mistake.

picongressDuring the upcoming PI Conference in Berlin I will talk about this topic in more detail and look forward to meet and discuss this trend with those of you who can participate.

The soccer analogy stops here, as the data approach kills the the old game.
In soccer, the maximum remains 11 players on each side and one ball. In business, thanks to global connectivity, the amount of players and balls involved can be unlimited.

clip_image002[8]A final observation:
In my younger days, I celebrated many soccer championships, still I am not famous as a soccer player.

Why ?

Because the leagues I was playing in, were always limited in scope: by age, local,regional, etc. Therefore it was easy to win in a certain scope and there are millions of soccer champions beside me. For business, however, there are almost no borders.

Global competition will require real champions to make it work !!!

sleepWhen you are in a peaceful holiday accommodation close to the sea, it is about swimming, reading sleeping and food. I read two books this time Profit Beyond Measure from H. Thomas Johnson (2000) and Fast Future from David Burnstein (2013).

In a earlier post, PLM Statistics, I already referred to Johnson´s book. Now I had the time to read the whole book. Johnson is an advocate for MBM (Manage By Means) as compared to the most practiced MBM (Manage By Results) approach.

In Fast Future, Burnstein explains why his generation of Millennials (Generation Y) is not lazy and egocentric (etc. etc.) but different and ready for the future. Different from the Boomers, generation X and

These two books on two different topics have nothing in common you might think. But all you need is a PLM twisted brain, and it will be connected.

Let’s start with Profit Beyond Measure

ProfBeyMeasJohnson in his introduction explains how manufacturing companies were gradually pushed into a MBR approach (Manage By Results). The Second World War was the moment that companies started to use accounting information to plan business activities. The growing presence of accountants in business started due to more regulations and financial regulations. Corporate executives were educated by professors of accounting and finance how to use their accounting information to plan and control business activities.

The result (quoting Johnson):

“..teaching a new generation of managers to put aside understanding the concrete particulars of how business organizes work. They taught them instead to focus exclusively on abstract quantitative generalizations about financial results”

And as he writes a little later:

“The unique feature of the multidivisional organization was the introduction of a level of managers that had not existed before. Managers at this level ran what appeared to be self-standing, fully articulated multifunctional companies known as divisions. The manager of a division, however, reported to a top management group that represented in effect, the market for capital and the market for managers”

The PLM-twisted brain understands that Johnson is describing one of the major inhibitors for PLM. PLM requires departments and individuals TO SHARE and work CONCURRENT on information. Meanwhile, department and division leaders are trained, pushed and measured to optimize their silo businesses to deliver the right financial results. Executives above the management monitor the consolidated numbers and have the slightest understanding of the real business challenges PLM can solve. Here, innovative ways of working are not discussed; numbers (costs /ROI) are discussed.

image

To proceed with Johnson, he believes in MBM (Manage by Means). Manage by Means could be compared with the way an organic life system is behaving. Johnson describes it as:

“Every entity is focusing on doing work, not on manipulating quantitative abstractions about work. In a company this would mean every person’s activity will embody that most fundamental condition of natural life systems – namely that all knowing is doing and that all doing is knowing”

Although Johnson is focusing on manufacturing companies (Toyota and Scania as two major examples of MBM), the PLM-twisted mind reads this as a concept that matches the PLM vision.

Everything and everyone is connected to the process and having the understanding how to interpret the data and what do to. This is how I imagine PLM implementations. Provide the right information to every person not matter where this person is in the lifecycle of the product. Too much automation prevents the system to be flexible and adapt to changes an in addition, it does not challenge the user anymore to think.

Enough about Profit Beyond Measure, ending with a quote about Manage by Means:

…. which will bring a change in thinking for the next generation of managers more revolutionary than that which every previous generation has ever experienced”

Now the Fast Future

SNAGHTML4a6de0In Fast Future, David Burnstein talks about his generation, the Millennials, and how they are different. The Millennials are people who are now between 20 and 35. They grew up with one foot in the old analogue world and came to full wisdom in a digital, social connected manner during several shocking crises that formed their personality and behavior ( 9/11 – financial crisis – globalization – huge unemployment) according to Burnstein. People also referred to them as Generation Y.

In the context of this post we have the need to imagine four generations:

  • The Pré-boomers, who build up the economy after the second world war, and as we learned from Johnson who introduced the mechanical thinking for business (MBR – management by results)
  • The Boomers (my generation) who had the luxury to study and discuss the ultimate change for the world (make love not war), idealistic to change the world, but now most of us working in an MBR mode
  • Generation X, they introduced punk, skeptics. They are supposed to be cynical, very ego-centric and materialistic. I am sure they also have positive points, but I haven’t read a book about them and you do not meet Generation X in the context of a particular change to something new (yet)
  • Generation Y, the Millennials, who considered by the Boomers, is another lazy generation, all the time surfing the internet, not committing to significant causes, but seem to enjoy themselves. Burnstein in his book changes the picture as we will see below.

According to Burnstein the Millennials are forced to behave different as the traditional society is falling apart due to different crises and globalization. They have to invent a new purpose. And as they are so natural with all the digital media they can connect to anyone or any group to launch ideas, initiatives and build companies. The high unemployment numbers in their generation force them to take action and to become an entrepreneur, not always for profit but also for social or sustainable reasons.

imageThey understand they will have to live with uncertainty and change all their lives. No guaranteed job after education, no certain pension later and much more uncertainty. This creates a different attitude. You embrace change, and you do not go for a single dream anymore like many of the boomers did.

Choosing the areas that are essential for you and where you think you can make a significant impact become important. Burnstein points to several examples of his generation and the impact they already have on society. Mark Zuckerberg – Facebook founder is a Millennial, many modern social apps are developed by Millennials, Obama won the elections twice, due to the impact and connectivity of the Millennials generation, the Facebook revolutions in the Middle East (Tunisia / Egypt/Libya) al lead by desperate Millennials that want to make a change.

When reading these statements, I wondered:
Would there also be Millennials in Germany?

As in Germany the impact of 9/11, the financial crisis and unemployment numbers did not touch that much. Are they for that reason the same as generation X? Perhaps a German reader in the millennial age can provide an answer here?

What I liked about the attitude described by Burnstein is that the Millennials network together for a better cause, a meaningful life. This could be by developing products, offer different types of services all through a modern digital means. The activities all in the context of social responsibility and sustainability, not necessary to become rich.

As noticed, they think different, they work different and here Johnson’s quote came to my mind:

…. which will bring a change in thinking for the next generation of managers more revolutionary than that which every previous generation has ever experienced”

And the PLM-twisted brain started drifting

Is this the generation of the Millennials Johnson is hoping for? The high-level concept of Management by Means is based on the goal to have every entity directly linked to the cause – a customer order, flexibility, ability to change when needed. Not working with abstract mechanical models. I think the Millennials should be able to understand and lead these businesses.

This culture change and a different business approach to my opinion are about modern PLM. For me, modern PLM focuses on connecting the data, instead of building automated processes with a lot of structured data.

Modern PLM combines the structured and unstructured data and provides the user the right information in context. This matches the MBM way of thinking and the modus operandus of the Millennials.

Current the modern PLM system as I described is does not exist (or I haven’t seen it yet). Also I have not worked with Millennials in a leading role in a company. Therefore, I kept on dreaming during my holiday – everything is possible if you believe it –even standing on the water:

20-Beach Party

And although after reading these books and seeing the connection, you can have the feeling that you are able to walk on the water. There are also potential pitfalls (a minute later) ahead to be considered as you can see below:

21-Beach Party

Conclusion

My PLM-twisted mind as you noticed combines everything.

What do you think?

Did I hallucinate or is there a modern future for business and PLM.

I am looking forward to learning your dreams.

observationSorry for the provoking title in a PLM blog, but otherwise you would not read my post till the end.

In the past months I have been working closely with several large companies (not having a mid-market profile). And although they were all in different industries and have different business strategies, they still had these common questions and remarks:

  • How to handle more and more digital data and use it as valuable information inside the company or for their customers / consumers ?
  • What to do with legacy data (approved in the previous century) and legacy people (matured and graduated in the previous century) preventing them to change ?
  • We are dreaming of a new future, where information is always up-to-date and easy to access – will this ever happen ?
  • They are in the automotive industry, manufacturing industry, infrastructure development and maintenance, plant engineering, construction and plant maintenance
  • They all want data to be managed with (almost) zero effort
  • And please, no revolution or change for the company

Although I have been focusing on the mid-market, it is these bigger enterprises that introduce new trends and as you can see from the observations above, there is a need for a change. But also it looks like the demands are in a contradiction to each other.

jugle

I believe it is just about changing the game.

If you look at the picture to the left, you see one of the contradictions that lead to PLM.

Increasing product quality, reducing time to market and meanwhile reducing costs seemed to be a contradiction at that time too.

Change ?

Although PLM has not been implemented (yet) in every company that could benefit from it, it looks like the bigger enterprises are looking for more.

plm_txtthe P from PLM becomes vague – it is no longer only the product that has the focus, it is also the whole context around the product that might influence it, that they want to take in consideration

the L from PLM remains – they still want to connect all information that is related to the lifecycle of their products or plants.

the M from Management has a bad association – companies believe that moving from their current state towards a managed environment of data is a burden. Too much overhead is the excuse to not manage dat. And their existing environments to manage data do not excel in user-friendliness. And therefore people jump towards using Excel.

Next

So if the P is not longer relevant, the M is a burden, what remains of PLM ?

Early June I presented at the Dassault Systems 3DExperience forum the topic of digital Asset Lifecycle Management for owners / operators. One of the areas where I believe PLM systems can contribute a lot to increase business value and profitability (quality and revenue – see using a PLM system for Asset Lifecycle Management )

Attending the key note speech it was clear that Dassault Systems does not talk about PLM anymore as a vision. Their future dream is a (3D) lifelike experience of the virtual world.  And based on that virtual model, implement the best solution based on various parameters: revenue, sustainability,  safety and more. By trying to manage the virtual world you have the option to avoid real costly prototypes or damaging mistakes.

I believe it is an ambitious dream but it fits in the above observations. There is more beyond PLM.

In addition I learned from talking with my peers (the corridor meetings) that also Siemens and PTC are moving towards a more industry or process oriented approach, trying to avoid the association with the generic PLM label.

Just at the time that Autodesk and the mid-market started to endorse PLM, the big three are moving away from this acronym.

This reminds me of what happened in the eighties when 3D CAD was introduced. At the time the mid-market was able to move to mainstream 3D (price / performance ratio changed dramatically) the major enterprises started to focus on PDM and PLM. So it is logical that the mid-market is 10 – 15 years behind new developments – they cannot afford experiments with new trends.

So let’s see what are the new trends:search

  • the management of structured and unstructured data as a single platform. We see the rise of Search Bases Application and business intelligence based on search and semantic algorithms. Using these capabilities integrated with a structured (PLM ? ) environment is the next big thing.
  • Apps instead of generic applications that support many roles. The generic applications introduce such a complexity to the interface that they become hard to use by a casual user. Most enterprise systems, but also advanced CAD or simulation tools with thousands of options suffer from this complexity. Would not it be nice if you only had to work with a few dedicated apps as we do in our private life ?
  • Dashboards (BI) that can be created on the
    flydashboardrepresenting actual data and trends based
    on structured and unstructured data.
    It reminded me of a PLM / ERP discussion I had with a company, where the general manager all the time stated the types of dashboards he wanted to see. He did not talk about PLM, ERP or other systems – he wanted the on-line visibility
  • Cloud services are coming. Not necessary centralizing all data on the cloud to reduce it cost. But look at SIRE and other cloud services that support a user with data and remote processing power at the moment required.
  • Visual navigation through a light 3D Model providing information when required. This trend is not so recent but so far not integrated with other disciplines, the Google maps approach for 3D.

So how likely are these trends to change enterprise systems like PLM, ERP or CRM. In the table below I indicated where it could apply:

enterprise trends

As you can see the PLM row has all the reasons to introduce new technologies and change the paradigm. For that reason combined with the observations I mentioned in the beginning, I am sure there is a new TLA (Three Letter Acronym) upcoming.

The good news is that PLM is dynamic and on the move. The bad news for potential PLM users is that the confusion remains – too many different PLM definitions and approaches currently – so what will be the next thing after PLM ?

Conclusion: The acronym PLM is not dead and becomes mainstream. On the high-end there is for sure a trend to a wider and different perspective of what was initially called PLM. After EDM, TDM, PDM and PLM we are waiting for the next TLA

blog_start

May 24th, 2008 was the date I posted my first blog post as a Virtual Dutchman aiming to share PLM related topics for the mid-market.

I tried to stay away from technology and function/feature debates and based on my day to day observations, describe the human side of the PLM  – what people do and why . All  from a personal perspective and always open to discuss and learn more.

Looking back and reviewing my 86 posts and 233 comments so far, I would like to share a summary around some of the main topics in my blog.

PLM

PLM_profIn 2008, PLM awareness was much lower – at that time one of the reasons for me to start blogging. There was still a need to explain that PLM was a business strategy needed beside ERP and PDM.

PLM will bring more efficiency, and in better quality, new innovative products to the market due to better collaboration between teams and departments.

At that time the big three, Dassault Systemes, Siemens and PTC  were all offering a very CAD-centric, complex approach for PLM. There was no real mid-market offering, although their marketing organizations tried to sell as-if a mid-marketing offering existed.  Express, Velocity, ProductPoint where are these offerings now ?

Now, In 2012 there is an established PLM awareness as everyone is talking about (their interpretation of) PLM and with Autodesk, a company that knows how to serve the mid-market, also acknowledged there is a need for PLM in their customer base, the term PLM is widespread

The new PLM providers focus on a disconnect between PDM and PLM, as in particular the handling of enterprise data outside the PDM scope is a white space for many mid-market companies that need to operate on a global platform.

PLM & ERP

NoChangeIn the relation between PLM and ERP, I haven’t seen a big change the past four years. The two dominating ERP originated vendors, SAP and Oracle were paying attention to PLM in 2008 in their marketing and portfolio approach.

However their PLM offerings in my perception, haven’t moved much forward. SAP is selling ERP and yes there is a PLM module and Oracle is having PLM systems, but I haven’t seen a real targeted PLM campaign explaining the needs and value of PLM integrated with ERP.

Historically ERP is the main IT-system and gets all the management attention. PLM is more considered something for engineering (and gets less focus and budget). Understanding PLM and how it connects to ERP remains a point of attention and the crucial point of interaction is the manufacturing BOM and the place where it is defined. The two most read posts from my blog are: Where is the MBOM and next Bill of Materials for Dummies – ETO, indicating there is a lot of discussion around this topic.

I am happy to announce here that in October this year during PLM Innovation US, I will present and share my thoughts in more detail with the audience, hoping for good discussions

New trends

There are three new trends that became more clear the past four years.

dummies_logoThe first one to mention is the upcoming of Search Based Applications (SBA). Where PLM systems require structured and controlled data, search based applications assist the user by “discovering” data anywhere in the organization, often in legacy systems or possible in modern communication tools.

I believe companies that develop an integrated concept of PLM and SBA can benefit the most. PLM and ERP vendors should think about combining these two approaches in an integrated offering. I wrote about this combined topic in my post: Social Media and PLM explained for Dummies

cloudThe second trend is the cloud. Where two-three years ago social media combined with PLM was the hype as a must for product innovation and collaboration, currently cloud is in focus.

Mainly driven and coming for the US, where the big marketing engine from Autodesk is making sure it is on the agenda of mid-market companies.

In Europe there is less a hype at this moment, different countries and many languages to support plus discussions around security take the overhand here.

For me a cloud solution for sure is lowering the threshold for mid-market companies to start implementing PLM. However how to make the change in your company ? It is not only an IT-offering. Like a similar discussion around Open Source PLM, there is still a need to provide the knowledge and change push  inside a company to implement PLM correct. Who will provide these skills ?

alm_1The third trend is the applicability of PLM systems outside the classical manufacturing industries.

I have been writing about the usage of PLM systems for Owner/Operators and the civil / construction industry, where the PLM system becomes the place to store all plant related information, connected to assets and with status handling. Currently I am participating in several projects in these new areas and the results are promising

People and Change

frogI believe PLM requires a change in an organization not only from the IT perspective but more important from the way people will work in an organization and the new processes they require.

The change is in sharing information, making it visible and useful for others in order to be more efficient and better informed to make the right decisions much faster.

This is a global trend and you cannot stay away from it. Keeping data locked in your reach might provide job security but in the long term it kills all jobs in the company as competiveness is gone.

The major task here lies with the management that should be able to understand and execute a vision that is beyond their comfort zone. I wrote about this topic in my series around PLM 2.0

Modern companies with a new generation of workers will have less challenges with this change and I will try to support the change with arguments and experiences from the field.

Audience

Since February this year, WordPress provides much more statistics and interesting is the map below indicating in which countries my blog is read. As you can see there are only a few places left on earth where PLM is not studied.  Good news !!

audience

Although most of my observations come from working in Europe, it is the US that provides the most readers (30 %) , followed by India (9 %) and on the third place the UK (6 %).

This might be related to the fact that I write my blog in English  (not in 100 % native English as someone commented once).

It makes me look forward to be in October in Atlanta during the PLM Innovation US conference to meet face to face with many of my blog readers and share experiences.

Conclusion

Reading back my posts since 2008, it demonstrated for me that the world of PLM is not a static environment. It is even that dynamic that some of the posts I wrote in the early days have become obsolete. 

At the end of 2008 I predicted the future of PLM in 2050 – here we are on the right track.

There is still enough blogging to do without falling into repetitions and  I am looking forward to your opinion, feedback and topics to discuss.

 

PLM_innoIn my last post PLM kills Innovation or not, I tried to provoke PLM vendors to respond to my claim that PLM has too much a focus on structuring data (and therefore removing freedom) claiming it blocks innovation as everyone believes innovation requires freedom and flexibility. This statement is often heard from startups claiming implementing any type of management would kill their competitive advantage. Still in the PLM marketing world everyone mentions PLM and Innovation as Siamese twins, but no one explains explicitly why they are connected.

So not too many reactions from vendors but some interesting comments from others to this post. Andrew Mack mentions that we should not confuse Innovation and Invention as for native English speakers there is a clear distinction. I agree with him however as most of my blog readers are not native English speakers I will explain the difference in this post.

For me it is clear PLM supports Innovation in three different manners, which I will explain here in a logical order – see the conclusion for the order of profit it will bring:

Invention Discovery

Invention, the creation of a new idea that might be the golden egg for the future of a company. It is often the result of one or more individuals- not something a systematic approach or system will bring automatically. If you look how big companies handle with invention, you see that often they do not manage it. They look around the world for , or sometimes get approached by, startups that have a concept that fits to their portfolio and they buy the company and concept.

This is of course a very disconnected way of invention, but from the other hand, the drive from many startups is to work day and night to develop a concept and ultimately sell the company for a good price. Compare it to the big soccer companies that have only money (currently mainly Russian or Arabic) but no own youth development plan to raise new talents. So it is a common way for companies to acquire invention (and promote innovation).

But I believe there is also a way companies can stimulate invention by implementing the modern way of PLM (PLM 2.0 – see my posts on that) and not use PLM as an extended PDM as I described in PLM What is the target. When a company has implemented PLM in a PLM 2.0 approach, it means there is a full visibility and connection of all product data, customer demands (through sales) and experiences (through service) for an R&D department to innovate.

Why this does not happen so much?

plmBecause inside most companies, people do not have an approach or drive for sharing data through the whole product lifecycle. Every department is optimizing themselves, not taking into account the value and overall company needs as they are not measured on that. In order to support invention PLM can provide an R&D department and individuals with all related market and customer information in order to create relevant inventions. So PLM helps here on understanding the areas of invention and probably the most unexplored area of PLM

 

Support selection of the right invention

 

funnelThe second area where PLM contributes to innovation is assisting companies to select the right opportunities that can be the next big opportunity for these companies. In case you have many opportunities, which one would you select and invest in ? As usually it unaffordable to invest in every opportunity usually and knowing at this stage you are not sure if a particular opportunity will lead to a profitable new product, you need a process and tool to select the right ones.

 

Here comes portfolio management as a functionality that allows companies to have an overview of all running initiatives and through reporting on key performance indicators (KPIs) being able to select the opportunities where to invest.

 

 

Support New Product Introduction

Once you have selected an opportunity and also as part of the portfolio management process you feel secure, there is the third step. How to bring this opportunity to the market as fast as possible, with the right quality and the right manufacturing definition? As being first on the market gives you market share and premium pricing.

Time2MarketAlso as changes in the early manufacturing stage and later during the go to market phase are extremely costly, it is important to bring a new product to the market as fast as possible in the right quality, avoiding changes when the new product is in the market. This is the area where PLM contributes the most. Allowing R&D organizations to work on their virtual product definition and perform simulations, design and customer verifications. Also anticipate and resolve compliancy and sourcing issues in the early stages of the product development. All this assures a reduction in the amount of iterations before a new product is ready to ´ hit´ the market.

iterations

 

A famous PLM one-liner is for PLM is: PLM – doing it right the first time, it refers more to the fact that a product introduction process is done only once and with the right quality. It does not mean iterations to improve or change the product scope are not needed.

 

Improvement cycles are necessary to bring a product to the market. But as they are done in the virtual world, the R&D department has the option to evaluate several alternatives (virtually), work and improve them till the best option is selected for the market saving cost for late design changes or errors to be solved. And even when the product is defined, PLM can help by defining the right generic manufacturing process and make it available for the local manufacturing organizations (where is the MBOM ?)

 

Conclusion

PLM does not kill innovation and although the PLM Vendor marketing is not very explicit, there are three areas where PLM supports Innovation. In a (subjective) order of priority I would say:

· New Product Introduction – bringing the highest revenue advantages for a selected invention

· Invention discovery – by providing R&D a 360 view of their customers and market landscape enable inventions to happen in your company

· Portfolio Management – to assist in selecting the right opportunities to focus

 

PLM_inno

Your thoughts ?

dontmissLast week I started my final preparation for the PLM Innovation Congress 2012 on February 22nd and 23rd in Munich, where I will speak about Making the Case for PLM. Looking forward for two intensive days of knowledge sharing and discussion

The question came to my mind that when you make the case for PLM, you also must be clear about what you mean by PLM. And here I started to struggle a little. I have my perception of PLM, but I am also aware everyone has a different perception about the meaning of PLM.

cmpicI wrote about it last year, triggered by a question in the CMPIC group (configuration management) on LinkedIn. The question was Aren’t CM and PLM the same thing ? There was a firm belief from some of the members that PLM was the IT-platform to implement CM.

PLM_PDM_CAD_networkA few days ago Inge Craninckx posted a question in the PDM PLM CAD network group about the definition of PLM based on a statement from the PLMIG. In short:

“PDM is the IT platform for PLM.”Or, expressed from the opposite viewpoint: “PLM is the business context in which PDM is implemented

The response from Rick Franzosa caught my attention and I extracted the following text:

The reality is that most PLM systems are doing PDM, managing product data via BOM management, vaulting and workflow. In that regard, PDM [read BOM management, vaulting and workflow], IS the IT platform for the, in some ways, unfulfilled promise of PLM.

I fully agree with Rick’s statement and coming back to my introduction about making the case for PLM, we need to differentiate how we implement PLM. Also we have to take into our minds that no vendor, so also not a PLM vendor, will undersell their product. They are all promising J

Two different types of PLM implementation

Originally PLM has started in 1999 by extending the reach of Product Data outside the engineering department. However besides just adding extra functionality to extend the coverage of the lifecycle, PLM also created the opportunity to do things different. And here I believe you can follow two different definitions and directions for PLM.

Let’s start with the non-disruptive approach, which I call the extended PDM approach

Extended PDM

expressWhen I worked 6 years ago with SmarTeam on the Express approach, the target was to provide an OOTB (Out of the Box) generic scenario for mid-market companies. Main messages were around quick implementation and extending the CAD data management with BOM and Workflow. Several vendors at that time have promoted their quick start packages for the mid-market, all avoiding one word: change.

I was a great believer of this approach, but the first benchmark project that I governed demonstrated that if you want to do it right, you need to change the way people work, and this takes time (It took 2+ years). For the details: See A PLM success story with ROI from 2009

NoChange

Cloud based solutions have become now the packaging for this OOTB approach enriched, with the ease of deployment – no IT investment needed (and everyone avoids the word change again).

If you do not want to change too much in your company, the easiest way to make PDM available for the enterprise is to extend this environment with an enterprise PLM layer for BOM management, manufacturing definition, program management, compliancy and more.

Ten years ago, big global enterprises started to implement this approach, using local PDM systems for mainly engineering data management and a PLM system for the enterprise. See picture below:

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This approach is now adapted by the Autodesk PLM solution and also ARAS is marketing themselves in the same direction. You have a CAD data management environment and without changing much on that area, you connect the other disciplines and lifecycle stages of the product lifecycle by implementing an additional enterprise layer.

The advantage from this approach is you get a shared and connected data repository of your product data and you are able to extend this with common best practices, BOM management (all the variants EBOM/MBOM/SBOM, …) but also connect the market opportunities and the customer (Portfolio management, Systems engineering)

myplmThe big three, Dassault Systemes, Siemens PLM and PTC, provide the above functionality as a complete set of functionalities – either as a single platform or as a portfolio of products (check the difference between marketing and reality).

Oracle and SAP also fight for the enterprise layer from the ERP side, by providing their enterprise PLM functionality as an extension of their ERP functionality. Also here in two different ways: as a single platform or as a portfolio of products. As their nature is on efficient execution, I would position these vendors as the one that drive for efficiency in a company, assuming all activities somehow can be scheduled and predicted

My statement is that extended PDM leads to more efficiency, more quality (as you standardize on your processes) and for many companies this approach is a relative easy way to get into PLM (extended PDM). If your company exists because of bringing new products quickly to the market, I would start from the PDM/PLM side with my implementation.

The other PLM – innovative PLM

idea

Most PLM vendors associate the word PLM in their marketing language with Innovation. In the previous paragraph I avoided on purpose the word Innovation. How do PLM vendors believe they contribute to Innovation?

This is something you do not hear so much about. Yes, in marketing terms it works, but in reality? Only few companies have implemented PLM in a different way, most of the time because they do not carry years of history, numbering systems, standard procedures to consider or to change. They can implement PLM in a different way, as they are open to change.

If you want to be innovative, you need to implement PLM in a more disruptive manner, as you need to change the way your organization is triggered – see the diagram below:

PLM_flow

The whole organization works around the market, the customer. Understanding the customer and the market needs at every moment in the organization is key for making a change. For me, an indicator of innovative PLM is the way concept development is connected with the after sales market and the customers. Is there a structured, powerful connection in your company between these people? If not, you do the extended PLM, not the innovative PLM.

Innovative PLM requires a change in business as I described in my series around PLM 2.0. Personally I am a big believer that this type of PLM is the lifesaver for companies, but I also realize it is the hardest to implement as you need people that have the vision and power to change the company. And as I described in my PLM 2.0 series, the longer the company exist, the harder to make a fundamental change.

Conclusion

There are two main directions possible for PLM. The first and oldest approach, which is an extension of PDM and the second approach which is a new customer centric approach, driving innovation. Your choice to make the case for one or the other, based on your business strategy.

Looking forward to an interesting discussion and see you in Munich where I will make the case

PLM_inno_2012

Sorry for the delay between this post and the previous post. A break with a lot of PLM work on my side and no adverts on your side: win-win. But now I have time to continue the serial around PLM 2.0. We are in the middle.

A small recap on the agenda:clip_image002

First post : What is PLM 2.0? – published Aug 24th
Second post : Challenges in current PLM – published Sept 4th
This post : Change in business – published Oct 3rd
Final post : Why PLM 2.0 – conclusions


In the first post I described the changes in PLM messaging from vendors – PLM 2.0 or similar terms. In the second post I described the current challenges of PLM, which are well known – if you have access to in LinkedIn to the PLM related groups you will find discussions around the challenges of current PLM. And they set the spirit – good or bad.

Now in this post I will bring up some trends, which to my opinion, unmistakably must lead to a new way of PLM in order to adapt to the future.

Generation Y – a new generation of workers

clip_image004Generation Y: It is interesting to learn that everywhere companies are complaining or warning that their existing workforce is going to retire with all their knowledge without decent follow-up. In parallel they state it is difficult to find new employees with similar skills that will guarantee the future of the company. The new generation of workers, often identified as Generation Y, has different skills and different motivations.

Some interesting generalizations (note I am not a social anthropologist).

clip_image006The older generations were raised with the concept: Knowledge is Power – You as an individual needed to have in-depth skills to be the right person for a job – a job is your life and for life. As a negative result of this approach, you see that exactly this older generation sometimes ‘sits’ on their knowledge as a kind of job guarantee – they do not like sharing information – “Come to me and I will help you” is their motto till they retire.

Generation Y does not have this job for life attitude – they look more for short term success and fulfillment and therefore they do not fit so well in the way traditional companies work. They are not the type of knowledge workers previous generations had, but they are, thanks to their skills with modern digital media, capable of finding information and combining information into knowledge. They work different.

The interesting observation from my side is that Generation Y is exactly the type of people PLM requires, as it is all about sharing and combining data. What is blocking their acceptance for current PLM is that the implementation is not architected to their work motivation. Look at:

  • The way information is stored (too structured),
  • The way information is presented (too structured, boring screens).
  • The way information has to be entered in the system (too unfriendly – overkill)

clip_image008For them PLM needs to move more to an intuitive way of presenting information, capturing data as-if it is something like serious gaming. And the new PLM needs to have a way to manage structured and unstructured data combined.

For companies that complain, they are losing skilled workers in the future, they should not complain but adapt. They should look forward and solve the problems for the future, which means a different way of doing business and implementing PLM. Do not choose what the dinosaurs did.

New styles of business management

clip_image010Here I want to come back to my first post – I was intrigued by reading Steve Denning’s posts and its relation to PLM. Through the post Why Amazon can’t Make a Kindle in the USA, I found the post The Death and Reinvention of Management the best fitting with my PLM drive.
Steve describes five fundamental shifts in management that make companies ready for the 21st century.

Take time to read the post (and go more in-depth if you get as enthusiastic as me) – but come back to read the rest of this post

I summarize/quote the five shifts from Steve here (as I am sure not everyone has done the reading):

1. The company’s goal has to shift to one of delighting clients i.e. a shift from inside-out (“You take what we make”) to outside-in (“We seek to understand your problems and will surprise you by solving them”)

2. The role of the manager has to shift from being a controller to an enabler, so as to liberate the energies and talents of those doing the work and remove impediments that are getting in the way of work.

3. The mode of coordination shifts from hierarchical bureaucracy to dynamic linking, i.e. to a way of dynamically linking self-driven knowledge work to the shifting requirements of delighting clients.

4. There is a shift from value to values; i.e. a shift from a single-minded focus on economic value and maximizing efficiency to instilling the values that will create innovation and growth for the organization over the long term.

5. Communications shift from command to conversation: i.e. a shift from top-down communications comprising predominantly hierarchical directives to communications made up largely of adult-to-adult conversations that solve problems and generate new insights.

Here we see the typical PLM 2.0 targets. I will translate them into our PLM terminology.

Shift # 1 – The shift to delight clients – from which PLM vendor do we hear this statement? Which PLM vendor puts the customer in focus, instead of their “superior” technology?

Shift #2, #3 and #5 are typical PLM 2.0 capabilities which I described in my first post. See below the PLM 2.0 differentiators:

clip_image012

And where do we find shift #4? How do PLM vendors address this change beyond marketing?

My conclusion on this point: Both PLM and management require a change to be ready for the 21st century – It is exactly what generation Y is looking for, it is exactly what future consumers are looking for. However currently classical PLM and classical Management are dominating the thought process – and they do not like change so much as it would put past investments and achievements at risk.

The Importance of Social Media

clip_image014Already described in the two previous trends, social media concepts fit exactly in the shift that we see towards the future. It impacts the way companies change their marketing and address their customer base. In parallel it affects the ways teams collaborate in the product development space, innovation teams are global product development teams.

My thoughts: Social media might look like a hype, but the basic concepts of social media will be required for future PLM

Globalization for SMB

clip_image016The major trend from the past decade is that SMB’s (Small and Medium Businesses) do not longer serve and fight for a regional existence. Competition and customers come from everywhere and production is more and more outsourced. The traditional company that is #1 in their region does not longer exist. Even SMBs have to consider ways to collaborate globally – again another driver for PLM 2.0

My thought: Traditional SMBs are never the leading companies in new trends, they hang on their core knowledge and have probably a longer way to go to really adapt to the future. Startup SMBs with no historical hindrance are likely to outperform them.

Innovation, Intellectual Property & War on Patents

clip_image018In a global market, innovation is the key driver to be successful combined with the point above: delight the customer. In order to delight the customer you need to innovate as delightment does not come from commodities.

And with innovation I am not only addressing the consumer market, innovation is required in all areas: green products, green production as world climate and its population forces us to change.

The successful products for the future will be those that are bringing innovation and when your company owns this Intellectual Property, your near future is going to be profitable,

Therefore the “War for Patents” will be everywhere. We currently see in the news the tablet and Smartphone patents wars, but it pops up everywhere, some more visible than others.

A “War for Patents” costs a lot of money (mainly spent to lawyers). Therefore the balance should be found between protecting your IP and to innovate faster. In this way your patents become less relevant because newer exist. To my opinion the new PLM should be the engine for innovation first and secondly the system to protect your IP

Conclusion:

clip_image020Again too many words for a blog post, but the topic is huge and I hope you see the need for a different PLM (PLM 2.0): A PLM that is targeted to the change in business all around the world. The monetary crisis which is another symptom of the old business gives us a chance to change. We need to change organizations and collaboration to remain profitable in the future – don’t be an ostrich

My thoughts –looking forward to your feedback

Last week I started a small series of posts related to the topic PLM 2.0. I was hoping for more comments and discussion about the term PLM 2.0, although I must say I was glad Oleg picked it up in his posts: PLM 2.0 born to die? and Will JT-open enable future of PLM 2.0?

Oleg, as a full-time blogger, of course had the time to draw the conclusions, which will take me another two weeks, hoping meanwhile the discussion evolves. Where Oleg’s focus is on technology and openness (which are important points), I will also explain that PLM 2.0 is a change in doing business, but this will be in next week’s post.

This week I will focus on the current challenges and pitfalls in PLM. And we all know that when somebody talks about challenges, there might be problems.

clip_image001

Last week : What is PLM 2.0?
This week: : Challenges in current PLM
Next : Change in business
Final post : Why PLM 2.0 – conclusions

The Challenges in current PLM

First I want to state that there are several types of definition in the world for PLM, coming from different type of organizations – I listed here two vendor independent definitions:

clip_image003

The Wiki definition:

In industry, product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal. PLM integrates people, data, processes and business systems and provides a product information backbone for companies and their extended enterprise.


clip_image005The 2PLM definition:

Product Lifecycle Management (PLM) is the business activity of managing a company’s products all the way across the lifecycle in the most effective way. The objective of PLM is to improve company revenues and income by maximizing the value of the product portfolio

And there are more definitions. Just recently, I noticed on the PlanetPTC blog from Aibhe Coughlan a post where she promoted a definition of PLM published in the Concurrent Engineering blog. Here I got immediate a little irritated reading the first words: “PLM is software designed to enhance process efficiencies ……… and more …”

clip_image007I do not believe PLM is software. Yes there is software used to automate or implement PLM practices, but this definition starts to neglect the culture and process sides of PLM. And as Oleg was faster – read his more extended comment here

(I am not paid by Oleg to promote his blog, but we seem to have similar interests)

Back to the classical definitions

The Wiki definition gives the impression that you need to have an infrastructure to manage (store) all product data in order to serve as an information backbone for the extended enterprise. It becomes more an IT-project, often sponsored by the IT-department, with the main goal to provide information services to the company in a standardized manner.

This type of PLM implementations tends to be the same type of implementation as an ERP system or other major IT-system. In this type of top-down implementations, the classical best practices for project management should be followed. This means:

  • A clear vision
  • Management sponsorship
  • A steering committee
  • A skilled project leader and team
  • Committed resources
  • Power user involvement
  • Communication
  • …… and more …

project_structure

These PLM projects are promoted by PLM vendors and consultants as the best way to implement PLM. And there are a lot of positive things to say about this approach. For many big companies implementing cPDM or PLM was a major step forward. Most of the ROI stories are based on this type of implementations and have been the showcases on PLM events. It is true that data quality increases, therefore efficiency and product quality. Without PLM they would not reach the same competiveness as they have now.

But sometimes these projects go into extreme when satisfying users or IT-guidelines

To avoid the implementation of a ‘new IT-system’, companies often have the strategy that if we already have an ERP-system , let’s customize or extend it, so we can store the additional data and perform workflow processes based on this system.

In a recent webinar, I heard a speaker saying that in their company they had the following automation strategy defined together with IT is:

  • First they will see if the needed PLM functionality exists in their ERP system or is part of the portfolio of their ERP provider. If the functionality is there (this means the ERP vendor has the capability to store metadata and a factsheet mentioning the right name), there is no looking outside.
  • If the functionality is not there, there will be a discussion with the ERP vendor or implementer to build it on top of their ERP system.

clip_image011I have seen implementations where the company has developed complete custom user interfaces in order to get user acceptance (the users would not accept the standard graphical interface). At that time, no one raised the flag about future maintenance and evolution of these custom environments. The mood was: we kept it simple – one single system.

I believe this closes the door for real PLM, as storing data in a system does not mean you will use it in an efficient and optimized manner. How will you anticipate on changes in business if it is just doing more with the same system?

And mid-market companies ?

The top-down approach described before is the fear of many mid-market companies, as they remember how painful their first ERP implementation was. And now with PLM it is even more unclear. PLM aims to involve the engineering department, which so far has not worked in a very procedural manner. Informal and ad-hoc communication combined with personal skills within this department was often the key for success.

clip_image013And now an unfriendly system is brought in, with low or little usability, pushing these creative people to enter data without seeing any benefits. The organization downstream benefits but this will be only noticed later in time. And for the engineering department it will take more effort to change their work methodology focused on innovation. However, in general in the mid-market, the target of a PLM project is to have a Return on Investment (ROI) in a very short timeframe ( 1-2 years). Investing in usability should be even more important for this type of companies as there is less top-down pressure to accept this new PLM system.

And flexibility ?

clip_image015In the past years we have seen that business is changing – there is a shift in global collaboration and manufacturing and from the recent history we can learn that those big enterprise projects from the past became a threat. Instead of being able to implement new concepts or new technology, the implementation became more and more vendor monolithic as other capabilities and applications do not fit anymore. This is against the concept of openness and being flexible for the future. I believe if PLM becomes as rigid as ERP, it blocks companies to innovate – the challenge for big companies is to find the balance between stability and flexibility (This was the title from Sony Ericsson’s presentation at the PLM forum in Sweden this year)

And again for mid-market companies who do not have the budget or resources to invest in similar projects. They have less a drive to optimize themselves in the same manner as big companies do as flexibility is often their trade mark (and capability to innovate) . So PLM for the mid-market will not work in the classical way.

This is one of the reasons why a mid-market PLM standard has not yet been found (yet ?). From the other hand many mid-market companies are dealing with PLM practices although often it is more close to PDM and CAD data management. And mid-market companies do not change their organization easily – there is more a departmental approach avoiding therefore a change in business.

To summarize the biggest challenges in current PLM described in this post:

  • PLM is considered complex to implement
  • PLM is a huge IT-project
  • PLM requires change and structuring – but what about flexibility
  • Where is the PLM value and ROI – user acceptance
  • PLM for the mid-market – does it exist ?

Conclusion: I have been writing about the PLM challenges in the past, see the links below if you are interested in more details on a specific topic.

In 2008,I thought that Out-of-the-Box PLM systems and standard functionalities could bring a solution for the mid-market, perhaps future solutions based on the cloud. However I learned that if you want to do real PLM in a modern manner, you need to change the way you do your business – and this I will explain in my upcoming post.

Related links:

kindle_usa Recently I have been reading various interesting articles, it started with Why Amazon can’t Make a Kindle in the USA from Steve Denning and from here I followed several interesting links.

Most of the articles were business driven and not with a focus on technology. However what caught my attention was the similarity of issues that were raised in these articles as-if it was about PLM.

At the end it is a plea/cry for change to be more competitive in the future. With the current economical stand still, I believe there is a need and an opportunity for this change also in PLM. I am not pointing to regime changes all around the world, but somehow they are all connected to this new wave of globalization and openness to information.

And as my domain is PLM, I took PLM 2.0 as the vehicle to describe the change currently in the PLM world. Although PLM 2.0 is a term invented by Dassault Systems, I will use it as the placeholder to describe the changes in PLM.

In four posts I will guide you in the upcoming weeks through the thought process:calendar

This week : What is PLM 2.0 ?
Next : Challenges in current PLM
Next : Change in business
Final post : Why PLM 2.0 – conclusions

I hope you will stay with me when going through these four steps and look forward to your immediate feedback.

What is PLM 2.0 ?

In 2006 Dassault Systems announced PLM 2.0 as the new generation of PLM implemented on their V6 platform. If you go to the 3DS website you see the following definition of PLM 2.0
Look for the header PLM 2.0: PLM Online for All

In the DS definition you will find several keywords that will help us further to understand the PLM 2.0 capabilities:

clip_image005

a typical Dassault Systems viewpoint, as they are coming from the world or 3D CAD and virtualization and the company’s vision is around lifelike – and life is mostly in 3D.
3D as interface towards all product related information is a paradigm shift for companies that were used to display only metadata on boring tabular screens where you navigate on numbers and text. The other major CAD-related PLM vendors of course could follow this paradigm too, as 3D visualization of information is known to them. However when coming from an ERP-based PLM system you will see 3D is something far out of reach for these vendors (at this moment).

clip_image007

This is what I believe is a crucial keyword for all PLM future implementations it builds upon the Business Information concepts that became in fashion 8 years ago. Online means direct access to the actual data. No information conversion, no need for import or export, but sharing and filtering. What you are allowed to see is actual data and an actual status. Imagine what kind of impact working on-line would have on your organization. Evaluation of trends, Key Performance Indicators directly available – still of course the interpretation to be done by experts.

clip_image009

Intellectual Property – a topic that should be on every company’s agenda. The reason a company currently exists and will exist in the future is based on how they manage their unique knowledge. This knowledge can be based on how certain processes are done, which components are chosen, which quality steps are critical and more. Working in a global collaboration environment challenges the company to keep their IP hidden for others, for sure when you talk about online data. Losing your IP means for a company to be vulnerable for the future – read in the referenced blog post from Steve Jennings about DELL.

clip_image011

This is currently the platform for change as technologies are now enabling people and companies to implement applications in a different manner. Not only on premises, but it could be online, Software As A Service, Cloud based solutions and through standardized programming interfaces, companies could implement end-to-end business process without a huge, monolithic impact. Also Web 2.0 provides the platform for communities.

clip_image013

The concept of communities opens new perspectives for collaboration. In general people in a community, have a common interest or task, and they share thoughts, deliverables back to the community across all company borders. This is the power of the community and the collective intelligence built inside such a community. Without company borders it should give the people a better perspective on their market on their business due to the global participation

The vision is there – now ….

All the above keywords are capabilities for the future and in the world of PLM you see that every PLM vendor / implementer is struggling with them. How to implement them consistently across their offering is the major challenge for the upcoming years, assuming PLM 2.0 is considered as the next step.

If you look at the PLM vendors beside Dassault Systems, you see that Siemens and PTC are closest to following the PLM 2.0 approach, without mentioning the term PLM 2.0. Other vendors even refuse to talk about PLM, but they share already similar components, for example Autodesk.

Interesting to see that the ERP-based PLM vendors do not follow this trend in their communication, they are still working on consolidating and completing their ‘classical’ PLM components

But the classical PLM vendors struggle with the change in paradigm too.

  • What to do with current, huge and structured implementations ?
  • Is PLM 2.0 having the same demands or can it be different ?

Here you see opportunities for new comers in this market as you can implement online collaboration, intellectual property creation/handling and communities in different manners with different types of implementation demands.

So far my introduction in PLM 2.0. Browsing on the web, I did not find too much other viewpoints on this specific terminology, so I am curious about your thoughts or and complementary comments on this topic.

In my next post I will zoom in into the challenges of PLM and relate them to the PLM 2.0 vision

My take on PLM (classical) and PLM 2.0

clip_image015

Referenced in this context – not directly mentioned:

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