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I was sitting outside in the garden during Ascension Day, which is (still) a national holiday in the Netherlands (Thanks God). It was again nice and warm, and it made me think about the parallels between Global warming and PLM.

whyworryClimate change has always been there if we look at the history of our planet. We started to talk about Global Warming when scientist indicated that this time the climate change is caused by human intervention. As a result of vast amounts of carbon dioxide emissions, a greenhouse effect started to become visible. When the first rumors came that global warming began to come up, environmentalists started preaching we have to act NOW before it is too late. Meanwhile at the other side, people began arguing that it was just a coincidence, an opinion.

There is no scientific proof, so why worry?

GlobalWarmingIn the past ten years, the signs and proofs of global warming have become evident and climate conferences filled with people who want to act and on the other side the blockers, try to create progress in the battle against global warming. In particular in Europe governments and companies are starting to become aware that they can contribute to a more sustainable society.

Not enough according to the environmentalists and scientists. As our brains still operate mostly in a prehistoric mode (day-to-day survival, food, home, social status), slow changes and sustainability for next generations are not part of most people concerns. And those people, who make us aware of this lack of priority for sustainability, are considered annoying as they disrupt our lives.

Companies that have invested (heavily) in sustainable business models often have a challenging path to survive against traditional businesses. As the majority of consumers wants cheap. Some examples:

  • Energy: most power plants are heated by burning coal as this is the cheapest option. Shale gas winning became attractive because we need cheap fuel. Alternatives like solar, wind and others cannot compete on price level as long as we do not pay for the damage to nature.
  • Food: produced in bio-farms, where animal wellness or health is not part of the plan. The goal is to deliver xx kilos of meat for the lowest price. Alternative like more natural ways of growing meat or even revolutionary ways (the grown hamburger) cannot compete on price currently unless we are willing to pay for it.
  • The Fashion industry where down in its supply chains human beings are treated like slaves. When you buy a cheap garment, you know somebody has been suffering.

Governments sometimes subsidize or push sustainable technologies as they realize that something has to happen (most of the time for the public opinion – their voters) but there is no consistent strategy as liberals believe every form of support is against open competition. And as long as we let our prehistoric brain run our choices, the earth gets warmer with the consequences being visible more and more.

We know we have to act, but we do not act seriously

Now let´s switch to PLM. The association started when I saw Chad Jackson’s retweet from Lifecycle insights related to top PLM challenges.

2015Challenges

Clearly the message illustrates that costs, time, and technology have priority. Not about what PLM really can establish (even in the context of global warming).

PLM_profPLM started end of the previous century, initially invented by some of the major CAD vendors, Dassault Systemes, PTC, and Siemens. Five years later it was taken more seriously, as also enterprise software vendors, like SAP and Oracle, started to work on their PLM offering. And some years ago even the most skeptic company related to PLM, Autodesk, began to sell a PLM offering.

So like global warming we can conclude: PLM is recognized, and now we can act.

The early adopters of PLM are also in a challenging situation. Their first PLM implementations were very much focused on an IT-infrastructure, allowing data to flow through a global organization, without disrupting the day-to-day business model too much. These implementations are now a burden to many of them: costly and almost impossible to change. Look at the PLM stories from some of the major automotive companies, like Daimler, JLR, PSA, Renault, , Volvo Cars and more.

email_lockThey are all somehow kept hostage by their old implementations (as business continues) however due to changing ownership, business models and technology they cannot benefit from modern PLM concepts as it would be a disruption.

Meanwhile, PLM has evolved from an IT-infrastructure into a business-driven approach to support global, more flexible and customer-driven business processes. Younger companies that are now starting in Asia do not suffer from this legacy and are faster established based on the know-how from the early adopters.

And this is not only happing in the automotive industry. In the recent years, I have seen examples in the Oil & Gas industry, the High-Tech industry (which in theory is relative young) and the Manufacturing industry.

No_roiComing back to the 2015 PLM challenges tweeted by Chad Jackson, it looks like they are related to time and costs. Obviously it is not clear what values PLM can bring to a company outside efficiency gains (ERP/Lean thinking). Modern PLM allows companies to change their business model as I wrote recently: From a linear to fast and circular. No longer is the PLM mission to support companies with product information from cradle to grave but from cradle to cradle. Sustainability and becoming connected to customers are new demands: Operational services instead of selling products, linking it with the need for IoT to understand what is happening.

In the 2015 PLM, the discussion with executives is about purchasing technology instead of the need to change our business for long-term survival. Most investors do not like long-term visions as their prehistoric brains are tuned to be satisfied in the short-term.

changeTherefore, as long as the discussion about PLM is about IT and infrastructure and not about business change, there will be this stall, identical to what happens with addressing global warming. Short term results are expected by the stakeholders, trying to keep up the current model. Strategists and business experts are all talking about the new upcoming digital era, similar to global warming.

We know we have to act, but we do not act seriously

When I posted a short version of this post on LinkedIn on Ascension Day, I got some excellent feedback which I want to share here:

Dieter de Vroomen (independent advisor, interim manager & neighbor) wrote me an email. Dieter does not have a PLM-twisted brain. Therefore I like his opinion:

PLM and Global Warming are both assumptions, mental constructs that we can make plausible with technology and data. Both mindsets save us from disasters through the use of technology. And that’s what both sell. But is that what they produce, what we want? Apple and associates think vice versa, making what first we want and explain later the underlying technology. I miss that with global warming, but certainly PLM. That’s why it sells so bad CxO’s.

I think the point Dieter is making is interesting as he is a non-PLM guy -showing the way CxO might be  thinking. As long as we (PLMers) do not offer a packaged solution, an end-to-end experience, it is hard to convince the C-level. This is one of the significant differences between ERP (its purpose is clearly is tangible) and PLM (see my post PLM at risk! It does not have a clear target).

A more motivating comment came from Ben Muis, consultant and entrepreneur in the fashion industry. We met at the PI Apparel 2013 conference, and I like his passion for bringing innovation to the fashion industry. Read his full comments on my post on LinkedIn as he combined in his career sustainability and PLM. Two quotes from Ben:

As you may know I did quite a bit of work on how the fashion industry could and should be more sustainable in its approach. This was at a time where only a handful of people at best were willing to even think about this. Knowing that in reality the decisions around cost and commercialism were driving the agenda, I drew the conclusion that by improving processes within the industry I could actually cause a sustainability improvement that was driven by commercial desire.

Explaining how you can become involved in the bigger picture and for Ben it is the possibility to keep on working on his passion in a real-time world. And finally:

So there you have it… my reasons for initially thinking your title was very close to the reason I shifted my focus from pure sustainability advice to PLM implementations to begin with. I could drive a real result much quicker. This, as I am sure you will agree, in itself supports the reason for taking PLM seriously

My conclusion:

The topics PLM and Global Warming have a lot in common. The awareness exists. However when it comes to action, we are blocked by our prehistoric brain, thinking about short term benefits. This will not change in the next 1000 years. Therefore, we need organizations and individuals that against all odds take the steep path and have a vision of change, breaking the old models and silos. It will cost money, it will require a sacrifice and the reward will only be noticed by next generations. What a shame

A final quote before going back to standard PLM matter in upcoming posts:

“Everything is theoretically impossible, until it is done.”

Robert A. Heinlein

Mindmap image courtesy of www.mindmapart.comJane Genovese

NoChangeHuman beings are a strange kind of creatures. We think we make a decision based on logic, and we think we act based on logic. In reality, however, we do not like to change, if it does not feel good, and we are lazy in changing our habits.

Disclaimer: It is a generalization which is valid for 99 % of the population. So if you feel offended by the previous statement, be happy as you are one of the happy few.

Our inability to change can be seen in the economy (only the happy few share). We see it in relation to global climate change. We see it in territorial fights all around the world.

Owning instead of sharing.  ?

The cartoon below gives an interesting insight how personal interests are perceived more important than general interest.

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It is our brain !

More and more I realize that the success of PLM is also related to his human behavior; we like to own and find it difficult to share. PLM primarily is about sharing data through all stages of the lifecycle. A valid point why sharing is rare , is that current PLM systems and their infrastructures are still too complex to deliver shared information with ease. However, the potential benefits are clear when a company is able to transform its business into a sharing model and therefore react and anticipate much faster on the outside world.

But sharing is not in our genes, as:

  • In current business knowledge is power. Companies fight for their IP; individuals fight for their job security by keeping some specific IP to themselves.
  • As a biological organism, composed of a collection of cells, we are focused on survival of our genes. Own body/family first is our biological message.

Breaking these habits is difficult, and I will give some examples that I noticed the past few weeks. Of course, it is not completely a surprise for readers of my blog, as a large number of my recent posts are related to the complexity of change. Some are related to human behavior:

August 2012: Our brain blocks PLM acceptance
April 2014: PLM and Blockers

Ed Lopategui, an interesting PLM blogger, see http://eng-eng.com, wrote a long comment to my PLM and Blockers post. The (long) quote below is exactly describing what makes PLM difficult to implement within a company full of blockers :

“I also know that I was focused on doing the right thing – even if cost me my position; and there were many blockers who plotted exactly that. I wore that determination as a sort of self-imposed diplomatic immunity and would use it to protect my team and concentrate any wrath on just myself. My partner in that venture, the chief IT architect admitted on several occasions that we wouldn’t have been successful if I had actually cared what happened to my position – since I had to throw myself and the project in front of so many trains. I owe him for believing in me.

But there was a balance. I could not allow myself to reach a point of arrogance; I would reserve enough empathy for the blockers to listen at just the right moments, and win them over. I spent more time in the trenches than most would reasonably allow. It was a ridiculously hard thing and was not without an intellectual and emotional cost.

In that crucible, I realized that finding people with such perspective (putting the ideal above their own position) within each corporation is *exceptionally* rare. People naturally don’t like to jump in front of trains. It can be career-limiting. That’s kind of a problem, don’t you think? It’s a limiting factor without a doubt, and not one that can be fulfilled with consultants alone. You often need someone with internal street cred and long-earned reputation to push through the tough parts”

Ed concludes that it is exceptionally rare to find people putting the ideal above their own position. Again referring to the opening statement that only a (happy) few are advocates for change

Now let´s look at some facts why it is exceptionally rare, so we feel less guilty.

On Intelligence

clip_image003Last month I read the book On Intelligence from Jeff Hawkins well written by Sandra Blakeslee. (Thanks Joost Schut from KE-Works for pointing me to this book).

Although it was not the easiest book to read during a holiday, it was well written considering the complexity of the topic discussed. Jeff describes how the information architecture of the brain could work based on the neocortex layering.

In his model, he describes how the brain processes information from our senses, first in a specific manner but then more and more in an invariant approach. You have to read the book to get the full meaning of this model. The eye opener for me was that Jeff described the brain as a prediction engine. All the time the brain anticipates what is going to happen, based on years of learning. That’s why we need to learn and practice building and enrich this information model.

And the more and more specialized you are on a particular topic, it can be knowledge but it can also be motoric skill, the deeper in the neocortex this pattern is anchored. This makes is hard to change (bad) practices.

The book goes much further, and I was reading it more in the context of how artificial intelligence or brain-like intelligence could support the boring PLM activities. I got nice insights from it, However the main side observation was; it is hard to change our patterns. So if you are not aware of it, your subconscious will always find reasons to reject a change. Follow the predictions !

Thinking Fast and Slow

clip_image005And this is exactly the connection with another book I have read before: Thinking Fast and Slow from Daniel Kahneman. Daniel explains that our brain is running its activities on two systems:

System 1: makes fast and automatic decisions based on stereotypes and emotions. System 1 is what we are using most of the time, running often in subconscious mode. It does not cost us much energy to run in this mode.

System 2: takes more energy and time; therefore, it is slow and pushes us to be conscious and alert. Still system 2 can be influenced by various external, subconscious factors.

Thinking Fast and Slow nicely complements On Intelligence, where system 1 described by Daniel Kahneman is similar to the system Jeff Hawkins describes as the prediction engine. It runs in an subconscious mode, with optimal energy consumption allowing us to survive most of the time.

Fast thinking leads to boiling frogs

clip_image007And this links again to the boiling frog syndrome. If you are not familiar with the term follow the link. In general it means that people (and businesses) are not reacting on (life threating) outside change when it goes slowly, but would react immediately if they are confronted with the end result. (no more business / no more competitive situation)

Conclusion: our brain by default wants to keep business in predictive mode, so implementing a business change is challenging, as all changes are painful and against our subconscious system.

So PLM is doomed, unless we change our brain behavior ?

The fact that we are not living in caves anymore illustrates that there have been always those happy few that took a risk and a next step into the future by questioning and changing comfortable habits. Daniel Kahneman´s system 2 and also Jeff Hawkins talk about the energy it takes to change habits, to learn new predictive mechanisms. But it can be done.

I see two major trends that will force the classical PLM to change:

  • The amount of connected data becomes so huge, it does not make sense anymore to store it and structure the information in a single system. The time required to structure data does not deliver enough ROI in a fast moving society. The old “single system that stores all”-concept is dying.
  • The newer generations (generation Y and beyond) grew up with the notion that it is impossible to learn, capture and own specific information. They developed different skills to interpret data available from various sources, not necessary own and manage it all.

These two trends lead to the point where it becomes clear that the future in system thinking becomes obsolete. It will be about connectivity and interpretation of connected data, used by apps, running on a platform. The openness of the platform towards other platform is crucial and will be the weakest link.

Conclusion:

The PLM vision is not doomed and with a new generations of knowledge workers the “brain change” has started. The challenge is to implement the vision across systems and silos in an organization. For that we need to be aware that it can be done and allocate the “happy few” in your company to enable it.

 

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What do you think  ???????????????????????????

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