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This is the moment of the year, where at least in my region, most people take some time off to disconnect from their day-to-day business.  For me, it is never a full disconnect as PLM became my passion, and you should never switch off your passion.

On August 1st, 1999, I started my company TacIT, the same year the acronym PLM was born. I wanted to focus on knowledge management, therefore the name TacIT.  Being dragged into the SmarTeam world with a unique position interfacing between R&D, implementers and customers I found the unique sweet spot, helping me to see all aspects from PLM – the vendor position, the implementer’s view, the customer’s end-user, and management view.

It has been, and still, is 20 years of learning and have been sharing most in the past ten years through my blog. What I have learned is that the more you know, the more you understand that situations are not black and white. See one of my favorite blog pictures below.

So there is enough to overthink during the holidays. Some of my upcoming points:

From coordinated to connected

Instead of using the over-hyped term: Digital Transformation, I believe companies should learn to work in a connected mode, which has become the standard in our daily life. Connected means that information needs to be stored in databases somewhere, combined with openness and standards to make data accessible. For more transactional environments, like CRM, MES, and ERP, the connected mode is not new.

In the domain of product development and selling, we have still a long learning path to go as the majority of organizations is relying on documents, be it Excels, Drawings (PDF) and reports. The fact that they are stored in electronic file formats does not mean that they are accessible. There is still manpower needed to create these artifacts or to extract the required information from them.

The challenge for modern PLM is to establish new best practices around a model-based approach for systems engineering (MBSE), for engineering to manufacturing (MBD/MBE) and operations (Digital Twins). All these best practices should be generic and connected ultimately.  I wrote about these topics in the past, have a look at:

PLM Vendors are showing pieces of the puzzle, but it is up to the implementers to establish the puzzle, without knowing in detail what the end result will be. This is the same journey of Columbus. He had a boat and a target towards the unknown. He discovered a country with a small population, nowadays a country full of immigrants who call themselves natives.

However, the result was an impressive transformation.

Reading about transformation

Last year I read several books to get more insight into what motivates us, and how can we motivate people to change. In one way, it is disappointing to learn that we civilized human beings most of the time to not make rational decisions but act based on our per-historic brain.

 

Thinking, Fast and Slow from Daniel Kahneman was one of the first books in that direction as a must-read to understand our personal thinking and decision processes.

 

 

 

I read Idiot Brain: What Your Head Is Really Up To from Dean Burnett, where he explains this how our brain appears to be sabotaging our life, and what on earth it is really up to. Interesting to read but could be a little more comprehensive

 

I got more excited from Dan Ariely”s book: Predictably Irrational: The Hidden Forces That Shape Our Decisions as it was structured around topics where we handle completely irrational but predictable. And this predictability is used by people (sales/politicians/ management) to drive your actions. Useful to realize when you recognize the situation

 

These three books also illustrate the flaws of our modern time – we communicate fast (preferable through tweets) – we decide fast based on our gut feelings – so you realize towards what kind of world we are heading.  Going through a transformation should be considered as a slow, learning process. Like reading a book – it takes time to digest.

Once you are aiming at a business transformation for your company or supporting a company in its transformation, the following books were insightful:

Leading Digital: Turning Technology into Business Transformation by George Westerman, Didier Bonnet and Andrew McAfee is maybe not the most inspiring book, however as it stays close to what we experience in our day-to-day-life it is for sure a book to read to get a foundational understanding of business transformation.

 

The book I liked the most recent was Leading Transformation: How to Take Charge of Your Company’s Future by Nathan Furr, Kyle Nel, Thomas Zoega Ramsoy as it gives examples of transformation addressing parts of the irrational brain to get a transformation story. I believe in storytelling instead of business cases for transformation. I wrote about it in my blog post: PLM Measurable or a myth referring to Yuval Harari’s book Homo Sapiens

Note: I am starting my holidays now with a small basket of e-books. If you have any recommendations for books that I must read – please write them in the comments of this blog

Discussing transformation

After the summer holidays, I plan to have fruitful discussions around topics close to PLM. Working on a post and starting a conversation related to PLM, PIM, and Master Data Management. The borders between these domains are perhaps getting vaguer in a digital enterprise.

Further, I am looking forward to a discussion around the value of PLM assisting companies in developing sustainable products. A sustainable and probably circular economy is required to keep this earth a place to live for everybody. The whole discussion around climate change, however, is worrying as we should be Thinking – not fast and slow – but balanced.

A circular economy has been several times a topic during the joint CIMdata PLM Roadmap and PDT conferences, which bring me to the final point.

On 13th and 14th November this year I will participate again in the upcoming PLM Roadmap and PDT conference. This time in La Defense, Paris, France. I will share my experiences from working with companies trying to understand and implement pieces of a digital transformation related to PLM.

There will be inspiring presentations from other speakers, all working on some of the aspects of moving to facets of a connected enterprise. It is not a marketing event, it is done by professionals, serving professionals. Therefore I hope if you are passioned about the new aspects of PLM, no matter how you name label them, come and join, discuss and most of all, learn.

Conclusion

 

Modern life is about continuous learning  – make it a habit. Even a holiday is again a way to learn to disconnect.

How disconnected I was you will see after the holidays.

 

 

 

After my previous post about the PLM migration dilemma, I had several discussions with peers in the field why these PLM bad news are creating so much debate. For every PLM vendor, I can publish a failure story if I want. However, the reality is that the majority of PLM implementations do not fail.

Yes, they can cause discomfort or friction in an organization as implementing the tools often forces people to work differently.  And often working differently is not anticipated by the (middle) management and causes, therefore, a mismatch for the people, process & tools paradigm.

So we love bad news in real life. We talk about terrorism while meanwhile, a large number of people are dying through guns, cars, and even the biggest killer mosquitos. Fear stories sell better than success stories, and in particular, in the world of PLM Vendors, every failure of the competition is enlarged.  However, there are more actors involved in a PLM implementation, and if PLM systems would be that bad, they would not exist anymore and replace by ………?

Who to blame – the vendor?

Of course, it is the easiest way to blame the vendor as their marketing is promising to solve all problems. However, when you look from a distance to the traditional PLM vendor community, you see they are in a rat-race to deliver the latest and greatest technology ahead of their competition, often driven by some significant customers.

Their customers are buying the vision and expect it to be ready and industrialized, which is not the case – look at the digital twin hype or AI (Artificial Intelligence).  Released PLM software is not at the same maturity compared to office applications. Office applications do not innovate so much and have thousands of users during a beta-cycle and no dependency on processes.

Most PLM vendors are happy when a few customers jump on their latest release, combined with the fact that implementations of the most recent version are not yet a push on the button.  This might change in the long term if PLM Vendors can deliver cloud-based solutions.

PLM implementations within the same industry might look the same but often vary a lot due to existing practices, which will not change due to the tool – so there is a need for customization or configuration.

PLM systems with strong business rules inside their core might more and more develop towards configuration, where PLM toolkit-like systems might focus on ease of customization. Both approaches have their pro’s and con’s (in another blog post perhaps).

Another topic to blame the vendor is lack of openness.  You hear it in many discussions. If vendor X were open, they would not lock the data – a typical marketing slogan. If PLM vendors would be completely open, to which standards should they adhere?  Every PLM has its preferred collection of tools together – if you stay within their portfolio you have a minimum of compatibility or interface issues.

This logic started already with SAP in the previous century. For PLM vendors, there is no business model for openness. For example, the SmarTeam APIs for connecting and extracting data are available free of charge, leading to no revenue for the vendor and significant revenue for service providers. Without any license costs, they can build any type of interface/solution. In the end, when the PLM vendor has no sustainable revenue, the vendor will disappear as we have seen between 2000 and 2010, where several stand-alone PLM systems disappeared.

So yes, we can blame PLM vendors for their impossible expectations – coming to realistic expectations related to capabilities and openness is probably the biggest challenge.

Who to blame – the implementer?

The second partner in a PLM implementation is the implementation partner, often a specialized company related to the PLM vendor. There are two types of implementation partners – the strategic partners and the system integrators.

Let’s see where we can blame them.

Strategic partners, the consultancy firms,  often have a good relationship with the management, they help the company to shape the future strategy, including PLM. You can blame this type of company for their lack of connection to the actual business. What is the impact on the organization to implement a specific strategy, and what does this mean for current or future PLM?

Strategic partners should be the partner to support business change management as they are likely to have experience with other companies. Unfortunate, this type of companies does not have significant skills in PLM as the PLM domain is just a small subset of the whole potential business strategy.

You can blame them that they are useful in building a vision/strategy but fail to create a consistent connection to the field.

Implementation partners, the system integrators, are most of the times specialized in one or two PLM vendor’s software suites, although the smaller the implementation partner, the less broad their implementation skills. These implementation partners sometimes have built their own PLM best practices for a specific vendor and use this as a sales argument. Others just follow blindly what the vendor is promoting or what the customer is asking for.

They will do anything you request, as long as they get paid for it. The larger ones have loads of resources for offshore deliveries – the challenge you see here is that it might look cheap; however, it becomes expensive if there is no apparent convergence of the deliverables.

As I mentioned before they will never say No to a customer and claim to fill all the “gaps,” there are in the PLM environment.

You can blame implementation partners that their focus is on making money from services. And they are right, to remain in business your company needs to be profitable. It is like lawyers; they will invoice you based on their efforts. And the less you take on your plate, the more they will do for you.

The challenge for both consultancy partners as system integrators is to find a balance between experienced people, who really make it happen and educating juniors to become experts too. Often the customer pays for the education of these juniors

Who to blame – your company?

If your company is implementing PLM, then probably the perception is that that you made all the effort to make it successful.  You followed the advice of the strategic consultants, you selected the best PLM Vendor and system integrator, you created a budget – so what could go wrong?

This all depends on your company’s ambition and scope for PLM.

Implementing the as-is processes

If your PLM implementation is just there to automate existing practices and store data in a central location, this might work out. And this is most of the time when PLM implementations are successful. You know what to expect, and your system integrator knows what to expect.

This type of project can run close to budget, and some system integrators might be tempted to offer a fixed price. I am not a fan of fixed priced projects as you never know exactly what needs to be done. The system integrator might raise the target price with 20 – 40 % to cover their risk or you as a company might select the cheapest bid – another guarantee for failure. A PLM implementation is not a one-time project, it is an on-going journey. Therefore your choice needs to be sustainable.

My experience with this type of implementations is that it easy to blame the companies here too. Often the implementation becomes an IT-project, as business people are too busy to run their day-to-day jobs, therefore they only incidentally support the PLM project. The result is that at a specific moment, users confronted with the system feel not connected to the new system – it was better in the past. In particular, configuration management and change processes can become waterproof, leaving no freedom for the users. Then the blaming starts – first the software then the implementer.

But what if you have an ambitious PLM project as part of a business transformation?

In that case, the PLM platform is just one of the elements to consider. It will be the enabler for new ways of working, enabling customer-centric processes, multi-discipline collaboration, and more. All related to a digital transformation of the enterprise. Therefore, I mention PLM platform instead of PLM system. Future enterprises run on data through connected platforms. The better you can connect your disciplines, the more efficient and faster your company will operate. This, as opposed to the coordinated approach, which I have been addressing several times in the past.

A business transformation is a combination of end-to-end understanding of what to change – from management vision connected to the execution in the field. And as there is not an out-of-the-box template for business transformation, it is crucial a company experiments, evaluates and when successful, scales up new habits.

Therefore, it is hard to define upfront all the effort for the PLM platform and the implementation resources. What is sure is that your company is responsible for that, not an external part. So if it fails, your company is to blame.

Is everyone to blame?

You might have the feeling that everyone is to blame when a PLM implementation fails. I believe that is indeed the case. If you know in advance where all players have their strengths and weaknesses, a PLM implementation should not fail, but be balanced with the right resources. Depending on the scope of your PLM implementation, is it a consolidation or a transformation, you should take care of all stakeholders are participating in the anti-blame game.

The anti-blame game is an exercise where you make sure that the other parties in the game cannot blame you.

  • If you are a vendor – do not over commit
  • If you are a consultant or system integrator – learn to say NO
  • If you are the customer – make sure enough resources are assigned – you own the project. It is your project/transformation.

This has been several times my job in the past, where I was asked to mediate in a stalling PLM implementation. Most of the time at that time it was a blame game, missing the target to find a solution that makes sense. Here coaching from experienced PLM consultants makes sense.

 

Conclusion

Most of the time, PLM implementations are successful if the scope is well understood and not transformative. You will not hear a lot about these projects in the news as we like bad news.

To avoid bad news challenging PLM implementations should make sure all parties involved are challenging the others to remain realistic and invest enough. The role of an experienced external coach can help here.

 

 

After two reposts, I have finally the ability to write with full speed, and my fingers were aching, having read some postings in the past four weeks.  It started with Verdi Ogewell’ s article on Engineering.com Telecom Giant Ericsson Halts Its PLM Project with Dassault’s 3DEXPERIENCE followed by an Aras blog post Don’t Be a Dinosaur from Mark Reisig, and of course, I would say Oleg Shilovitsky’s post: What to learn from Ericsson PLM failure?

Setting the scene

Verdi’s article is quite tendentious based on outside observations and insinuations. I let you guess who sponsored this article.  If I had to write an article about this situation,

I would state: Ericsson and Dassault failed to migrate the old legacy landscape into a new environment – an end-to-end migration appeared to be impossible.

The other topics mentioned are not relevant to the current situation.

Mark is chiming in on Verdi’s truth and non-relevant points to data migration, suggesting PLM is chosen over dinner. Of course, decisions are not that simple. It is not clear from Mark’s statement, who are the Dinosaurs:

Finally, don’t bet your future on a buzzword. Before making a huge PLM investment, take the time to make sure your PLM vendor has an actual platform. Have them show you their spider chart.  And here’s the hard reality: they won’t do it, because they can’t.

Don’t be a dinosaur—be prepared for the unexpected with a truly resilient digital platform.

I would state, “Don’t bet your future on a spider chart” if you do not know what the real problem is.

 

Oleg’s post finally is more holistic, acknowledging that a full migration might not be the right target, and I like his conclusion:

Flexibility Vs. Out of the box products – which one do you prefer? Over-customize a new PLM to follow old processes? To use a new system as an opportunity to clean existing processes? To move 25,000 people from one database to another is not a simple job. It is time to think about no upgrade PLM systems. While a cloud environment is not an option for mega-size OEMs like Ericsson, there is an opportunity for OEM IT together with the PLM vendor to run a migration path. The last one is a costly step. But… without this step, the current database oriented single-version of truth PLM paradigm is doomed.

The Migration Problem

I believe migration of data – and sometimes the impossibility of data migration – is the biggest elephant in the room when dealing with PLM projects. In 2015 during the PI PLM conference in Dusseldorf, I addressed this topic for the first time: The Challenge of PLM Upgrades.
You can find the presentation on SlideShare here.

I shared a similar example to the Ericsson case from almost 10 years ago. At that time, one of the companies I was working with wanted to replace their mainframe application, which was managing the configuration of certain airplanes. The application managed the aircraft configuration structures in tables and where needed pointing to specifications in a document repository. The two systems were not connected; integrity was guaranteed through manual verification procedures.

The application was considered as the single version of the truth, and has been treated like that for decades. The reason for migration was that all the knowledge of the application disappeared, tables were documented, but the logic was not. And besides this issue, the maintenance costs for the mainframe was also high – also at that time vendor lock-in existed.

The idea was to implement SmarTeam – flexible data model – rapid deployment based on windows technology  -to catch two birds with one stone, i.e., latest microsoft technology and meanwhile direct link to the controlled documents. As they were using CATIA V5, the SmarTeam-integration was a huge potential benefit. For the migration of data, the estimate was two months. What could go wrong?

Well, technically, almost nothing went wrong. The challenge was to map the relational tables to the objects in the SmarTeam data model. And as the relational tables contained a mix of document and item attributes, splitting these tables was not always easy. Sometimes the same properties were with different values in the original table – which one was the truth? The migration took almost two years also due to limited availability of the last knowledgeable resource who could explain the logic.

After the conversion, the question still remained if the migrated data was accurate? Perhaps 99 %?
But what if it was critical? For this company, it was significant, but not mission critical like in Ericsson, where a lot of automation and rules are linked together between loads of systems.

So my point: Dassault has failed at Ericsson and so will Siemens or Aras or any other PLM vendor as the migration issue is not in the technology – we should stop thinking about this kind of migrations.

Who are the dinosaurs?

Mark is in a way suggesting that when you use PLM software from the “old” PLM vendors, you are a dinosaur. Of course, this is a great marketing message, but the truth is that it is not the PLM vendor to blame. Yes, some have more friction than the other in some instances, but in my opinion, there is no ultimate single PLM vendor.

Have a look at the well-known Daimler case from some years ago, which made the news because Daimler decided to replace CATIA by NX. Not because NX was superior – it was about maintaining the PLM backbone Smaragd which would be hard to replace. Even in 2010, there was already the notion that the existing data management infrastructure is hard to replace. See a more neutral article about this topic from Monica Schnitger if you want: Update: Daimler chooses NX for Smaragd.  Also here in the end, it became a complete Siemens account for compatibility reasons.

When you look at the significant wins Aras is mentioning in their customer base, GM, Schaeffler or Airbus, you will probably discover Aras is more the connection layer between legacy systems, old PLM or PDM systems. They are not the new PLM replacing old PLM.  A connection layer creates a digital thread, connecting various data sources for traceability but does not provide digital continuity as the data in the legacy systems is untouched. Still it is an intermediate step towards a hybrid environment.

For me the real dinosaurs are these large enterprises that have been implementing their proprietary PLM environments in the previous century and have built a fully automated infrastructure based on custom data models with a lot of proprietary rules. This was the case in Ericsson, but most traditional automotive and aerospace companies share this problem, as they were the early PLM adopters. And they are not the only ones. Many industrial manufacturing companies suffer from the past, opposite to their Asian competitors who can start with less legacy.

What’s next?

It would be great if the PLM community focused more on the current incompatibility of data between current/past concepts and future digital needs and discuss solution paths (for sure standards will pop-up)

Incompatibility means: Do not talk about migration but probably focus on a hybrid landscape with legacy data, managed in a coordinated manner, and modern, growing digital PLM processes based on a connected approach.

This is the discussion I would like to see, instead of vendors claiming that their technology is the best. None of the vendors will talk about this topic – like the old “Rip-and-Replace” approach is what brings the most software revenue combined with the simplification that there is only OnePLM. It is interesting to see how many companies have a kind of OnePLM or OneXXX statement.

The challenge, of course, is to implement a hybrid approach. To have the two different PLM-concepts work together, there is a need to create a reliable overlap. The reliable overlap can come from an enterprise data governance approach if possible based on a normalized PLM data model. So far all PLM vendors that I know have proprietary data models, only ShareAspace from Eurostep is based on the PLCS standard, but their solutions are most of the time part of a larger PLM-infrastructure (the future !)

To conclude: I look forward to discussing this topic with other PLM peers that are really in the field, discovering and understanding the chasm between the past and the future. Contact me directly or join us as the PLM Roadmap and PDT Europe 13-14 November in Paris. Let’s remain fact-based!
(as a matter of fact you can still contribute – call for papers still open)

 

 

 

This time a post that has been on the table already for a long time – the importance of having established processes, in particular with implementing PLM.  By nature, most people hate processes as it might give the idea that their personal creativity is limited, where large organizations love processes as for them this is the way to guarantee a confident performance.  So let’s have a more in-depth look.

Where processes shine

In a transactional world, processes can be implemented like algorithms, assuming the data to be processed has the right quality. That is why MRP (Material Requirement Planning) and ERP (Enterprise Resource Planning) don’t have the mindset of personal creativity. It is about optimized execution driven by financial and quality goals.

When I started my career in the early days of data management, before it was called PDM/PLM, I learned that there is a need for communication-related to product data. Terms are revisions, and versions started to pop-up combined with change processes. Some companies began to talk about configuration management.

Companies were not thinking PLM along the whole lifecycle. It was more PDM for engineering and ERP for manufacturing. Where PDM was ultimate a document-control environment, ERP was the execution engine relying on documented content, but not necessarily connected. Unfortunate this is still the case at many companies, and it has to do with the mindset. Traditionally a company’s performance has been measured based on financial reporting coming from the ERP system. Engineering was an unmanageable cost in the eyes of the manufacturing company’s management and ERP-software vendors.

In de middle of the nineties (previous century now ! ), I had a meeting with an ERP-country manager to discuss a potential partnership. The challenge was that he had no clue about the value and complementary need for PLM. Even after discussing with him the differences between iterative product development (with revisioning) and linear execution (on the released product), his statement was:

“Engineers are just resources that do not want to be managed, but we will get them”

Meanwhile, I can say this company has changed its strategy, giving PLM a space in their portfolio combined with excellent slides about what could be possible.

To conclude, for linear execution the meaning of processes is more or less close to algorithms and when there is no algorithm, the individual steps in place are predictable with their own KPIs.

Process certification

As I mentioned in the introduction, processes were established to guarantee a predictable outcome, in particular when it comes to quality. For that reason, in the previous century when globalization started companies were somehow forced to get ISO 900x certified. The idea behind these certifications was that a company had processes in place to guarantee an expected outcome and for when they failed, they would have procedures in place to fix these gaps. The reason companies were doing this because no social internet could name and shame bad companies. Having ISO 900x certification would be the guarantee to deliver quality.  In the same perspective, we could see, configuration management, a system of best practices to guarantee that product information was always correct.

Certification was and is heaven for specialized external auditors and consultants.  To get certification you needed to invest in people and time to describe your processes, and once these processes were defined, there were regular external audits to ensure the quality system has been followed.  The beauty of this system – the described procedures were more or less “best intentions” not enforced. When the auditor would come the company had to play some theater that processes were followed., the auditor would find some improvements for next year and the management was happy certification was passed.

This has changed early this century. In particular, mid-market companies were no longer motivated to keep up this charade. The quality process manual remained as a source of inspiration, but external audits were no longer needed. Companies were globally connected and reviewed, so reputation could be sourced easily.

The result: there are documented quality procedures, and there is a reality. The more disconnected employees became in a company due to mergers or growth, the more individual best-practices became the way to deliver the right product and quality, combined with accepted errors and fixes downstream or later. The hidden cost of poor quality is still a secret within many companies.  Talking with employees they all have examples where their company lost a lot of money due to quality mistakes. Yet in less regulated industries, there is no standard approach, like CAPA (Corrective And Preventive Actions), APQP or 8D to solve it.

Configuration Management and Change Management processes

When it comes to managing the exact definition of a product, either an already manufactured product or products that are currently made, there is a need for Configuration Management.  Before there were PLM systems configuration management was done through procedures defining configurations based on references to documents with revisions and versions. In the aerospace industry, separate systems for configuration management were developed, to ensure the exact configuration of an aircraft could be retrieved at any time. Less regulated industries used a more document-based procedural approach as strict as possible. You can read about the history of configuration management and PLM in an earlier blog post: PLM and Configuration Management – a happy marriage?

With the introduction of PDM and PLM-systems, more and more companies wanted to implement their configuration management and in particular their change management inside the system, as the changes are always related to product information that can reside in a PLM-system. The change of part can be proposed (ECR), analyzed and approved, leading to and implementation of the change (ECO) which is based on changed specifications, designs (3D Models / Drawings) and more. You can read the basics here: The Issue and ECR/ECO for Dummies (Reprise)

The Challenge (= Problem) of Digital Processes

More and more companies are implementing change processes fully in PLM, and this is the point that creates the most friction for a PLM implementation. The beauty of digital change processes is that they can be full-proof. No change gets unnoticed as everyone is forced to follow the predefined procedures, either a type of fast track in case of lightweight (= low risk) changes or the full change process when the product is already in a mature state.

Like the ISO-900x processes, the PLM-implementer is often playing the role of the consultancy firm that needs to recommend the company how to implement configuration management and change processes. The challenge here is that the company most of the time does not have a standard view for their change processes and for sure the standard change management inside PLM s not identical to their processes.

Here the battle starts….

Management believes that digital change processes, preferable out-of-the-box, a crucial to implement, where users feel their job becomes more an administrative job than a creative job. Users that create information don’t want to be bothered with the decisions for numbering and revisioning.

They expect the system to do that easily for them – which does not happen as old procedures, responsibilities, and methodologies do not align with the system. Users are not measured or challenged for data quality, they are measured on the work they deliver that is needed now. Let’s first get the work done before we make sure all is consisted defined in the PLM-system.

Digital Transformation allows companies to redefine the responsibilities for users related to the data they produce. It is no longer a 3D Model or a drawing, but a complete data set with properties/attributes that can be shared and used for analysis and automation.

Conclusion

Implementing digital processes for PLM is the most painful, but required step for a successful implementation. As long as data and processes are not consistent, we can keep on dreaming about automation in PLM. Therefore, digital transformation inside PLM should focus on new methods and responsibilities to create a foundation for the future. Without an agreement on the digital processes there will be a growing inefficiency for the future.

 

I am writing this post during the Easter weekend in the Netherlands. Easter / Passover / Pascha / are religious festivities that happen around this time, depending on full moons, etc. I am not the expert here, however, what I like about Easter is that is it is an optimistic religious celebration, connecting history, the “dark days,” and the celebration of new life.

Of course, my PLM-twisted brain never stops associating and looking into an analogy, I saw last week a LinkedIn post from Mark Reisig, about Aras ACE 2019 opening with the following statement:

Digital Transformation – it used to be called PLM,” said Aras CEO Peter Schroer, as he opened the conference with some thoughts around attaining sustainable Digital Transformation and owning the lifecycle.

Was this my Easter Egg surprise? I thought we were in the middle of the PLM Renaissance as some other vendors and consultants talk about this era. Have a look at a recent Engineering.com TV-report: Turning PLM on its head

All jokes aside, the speech from Peter Schroer contained some interesting statements and I want to elaborate on them in this post as the space to comment in LinkedIn is not designed for a long answer.

PLM is Digital Transformation?

In the past few years, there has been a discussion if the acronym PLM (Product Lifecycle Management) is perhaps outdated. PTC claimed thanks to IoT (Internet of Things) now PLM equals IoT, as you can read in  Mark Taber’s 2018 guest article in Digital Engineering: IoT Equals PLM.
Note: Mark is PTC’s vice president of marketing and go-to-market marketing according to the bio at the bottom of the article. So a lot of marketing words, which  strengthens the believers of the old world, that everything new is probably marketing.

Also during the PDT conferences, we discussed if PLM should be replaced by a new acronym and I participated in that discussion too – my Nov 2018 postWill MBSE be the new PLM instead of IoT? is a reflection of my thoughts at that time.

For me, Digital Transformation is a metamorphosis from a document-driven, sequential processes towards data-driven, iterative processes. The metamorphosis example used a lot at this moment, is the one from Caterpillar towards the Butterfly. This process is not easy when it comes to PLM-related information, as I described in my PI PLMx 2019 London Presentation and blog post: The Challenges of a Connected Ecosystem for PLM. The question is even: Will there be a full metamorphosis at the end or will we keep on working in two different modes of operations?

However, Digital Transformation does not change the PLM domain. Even after a successful digital transformation, there will be PLM. The only significant difference in the future – PLM boarders will not be so evident anymore when implementing capabilities in a system or a platform. The upcoming of digital platforms will dissolve or fade the traditional PLM-mapped capabilities.

You can see these differences already by taking an in-depth look at how Oracle, SAP or Propel address PLM. Each of them starts from a core platform with different PLM-flavored extensions, sometimes very different from the traditional PLM Vendors. So Digital transformation is not the replacement of PLM.

Back to Peter Schroer’s rebuttal of some myths. Note: DX stands for Digital Transformation

Myth #1: DX leverages disruptive tech

Peter Schroer:

 It’s easy to get excited about AI, AR, and the 3D visual experience. However, let’s be real. The first step is to get rid of your spreadsheets and paper documentation – to get an accurate product data baseline. We’re not just talking a digital CAD model, but data that includes access to performance data, as-built parts, and previous maintenance work history for everyone from technicians to product managers

Here I am fully aligned with Peter. There are a lot of fancy features discussed by marketing teams, however, when working in the field with companies, the main challenge is to get an organization digital aligned, sharing data accessible along the whole lifecycle with the right quality.

This means you need to have a management team, understanding the need for data governance, data quality and understanding the shift from data ownership to data accountability.  This will only happen with the right mix of vision, strategy and the execution of the strategy – marketing does not make it happen

 

Myth #2: DX results in increased market share, revenue, and profit

Peter Schroer:

Though there’s a lot of talk about it – there isn’t yet any compelling data which proves this to be true. Our goal at Aras is to make our products safer and faster. To support a whole suite of industrial applications to extend your DX strategy quite a bit further.

Here I agree and disagree, depending on the context of this statement. Some companies have gone through a digital transformation and therefore increased their market share, revenue, and profit. If you read books like Leading Transformation or Leading Digital, you will find examples of companies that have gone through successful digital transformations. However, you might also discover that most of these companies haven’t transformed their PLM-domain, but other parts of their businesses.

Also, it is interesting to read a 2017 McKinsey post: The case for digital reinvention, where you will get the confirmation that a lot of digital initiatives did not bring more top-line revenue and most of the times lead to extra costs. Interesting to see where companies focus their digital strategies – picture below:

Where only 2 percent of the respondents were focusing on supply chains, this is, according to the authors of the article, one of the areas with the highest potential ROI. And digital supply chains are closely related to modern PLM – so this is an area with enough work to do by all PLM practitioners– connecting ecosystems (in real-time)

Myth #3: Market leaders are the most successful at DX

Peter Schroer:

If your company is hugely profitable at the moment, it’s highly likely that your organization is NOT focused on Digital Transformation. The lifespan of S&P 500 companies continuing to shrink below 20 years.

How to Attain Sustainable Digital Transformation

– Stop buying disposable systems. It’s about an adaptable platform – it needs to change as your company changes.

– Think incremental. Do not lose momentum. Continuous change is a multi-phase journey. If you are in or completed phase I, then that means there is a phase II, a phase III, and so on.

– Align people & processes.  Mistakes will happen, “the tech side is only 50% of DX” – Aras CEO.

Here I agree with Peter on the business side, be it that some of the current market leaders are already digital. Look at Apple, Google, and Amazon. However, the majority of large enterprises have severe problems with various aspects of a digital transformation as the started in the past before digital technologies became affordable..

Digitization allows information to flow without barriers within an organization, leading to rapid insights and almost direct communication with your customers, your supply chain or other divisions within your company. This drives the need to learn and build new, lean processes and get people aligned to them. Learning to work in a different mode.

And this is extremely difficult for a market leader – as market leader fear for the outside changing world is often not felt. Between the C-level vision and people working in the company, there are several layers of middle management. These layers were created to structure and stabilize the old ways of working.

I wrote about the middle management challenge in my last blog post: The Middle Management dilemma. Almost in the same week there was an article from McKinsey: How companies can help midlevel managers navigate agile transformations.
Conclusion: It is not (only) about technology as some of the tech geeks may think.

Conclusion

Behind the myths addressed by Peter Schroer, there is a complex transformation on-going. Probably not a metamorphosis. With the Easter spirit in mind connected to PLM, I believe digital transformations are possible – Not as a miracle but driven by insights into all aspects. I hope this post gave you some more ideas and please read the connected articles – they are quite relevant if you want to discover what’s below the surface.

Image:  21stcenturypublicservant.wordpress.com/

I have talked a lot the past years about Digital Transformation and in particular its relation to PLM. This time I want to focus a little more on Digital Transformation and my observations related to big enterprises and small and medium enterprises. I will take you starting from the top, the C-level to the work floor and then try to reconnect through the middle management. As you can imagine from the title of this post, there is a challenge. And I am aware I am generalizing for the sake of simplicity.

Starting from the C-level of a large enterprise

Large and traditional enterprises are having the most significant challenge when aiming at a digital transformation for several reasons:

  • They have shareholders that prefer short-term benefits above long-term promising but unclear higher benefits. Shareholders most of the time have no personal interest in these companies, they just want to earn money above the average growth.
  • The CEO is the person to define the strategy which has to come with a compelling vision to inspire the shareholders, the customers and the employees in the company – most of the time in that order of priority.
  • The role of the CEO is to prioritize investments and stop or sell core components to make the transformation affordable. Every transformation is about deciding what to stop, what to start and what to maintain.
  • After four to seven years (the seven years’ itch) it is time for a new CEO to create a new momentum as you cannot keep the excitement up too long.
  • Meanwhile, the Stop-activities are creating fear within the organization – people start fearing their jobs and the start-activities are most of the time of such a small-scale that their successes are not yet seen. So at the work floor, there will be reservations about what’s next

Companies like ABB, Ericsson, GE, Philips – in alphabetical order – are all in several stages of their digital transformation and in particular I have followed GE as they were extremely visible and ambitious. Meanwhile, it is fair to say that the initial Digital Transformation plan from GE has stalled and a lot of lessons learned from that.

If you have time – read this article: The Only Way Manufacturers Can Survive – by Vijay Govindarajan & Jeff Immelt (you need to register). It gives useful insights about what the strategy and planning were for digital transformation. And note PLM is not even mentioned there J

Starting from the C-level of a small and medium enterprise

In a small or medium enterprise, the distance between the C-level and the work floor is most of the time much shorter and chances are that the CEO is a long-term company member in case of a long-standing family-owned business. In this type of companies, a long-term vision can exist and you could expect that digital transformation is more sustainable there.

Unfortunate most of the time it is not, as the C-level is often more active in current business strategies and capabilities close to their understanding instead of investing energy and time to digest the full impact of a digital transformation. These companies might invest in the buzz-words you hear in the market, IoT, Digital Twins and Augmented Reality/Virtual Reality, all very visionary topics, however of low value when they are implemented in an isolated way.

In this paragraph, I also need to mention the small and medium enterprises that are in the hands of an investment company.  Here I feel sorry as the investment company is most of the time trying to optimize the current ways of working by simplifying or rationalizing the business, not creating a transformative vision (as they do not have the insights. In this type of companies, you will see on a lower scale the same investments done as in the other category of small and medium enterprises, be it on a lesser scale.

Do people need to change?

Often you hear that the problem with any change within the companies is because people do not want to change. I think this is too much a generalization. I have worked in the past five years with several companies where we explored the benefits and capabilities of PLM in a modern way, sometimes focusing on an item-centric approach, sometimes focusing on a model-based approach. In all these engagements there was no reluctance from the users to change.

However, there were two types of users in these discussions. I would characterize as evolutionary thinkers (most of the time ten years or more in the company) and love-to-change thinkers (most of them five years or less in the company). The difference between these groups was that the evolutionary thinkers were responding in the context of the existing business constraints where the love-to-change thinkers were not yet touched by the “knowledge how good everything was”.

For digital transformation, you need to create the love-to-change attitude while using the existing knowledge as a base to improve. And this is not a people change, it is an organizational change where you need to enable people to work in their best mode. It needs to be an end-to-end internal change – not changing the people, but changing the organizational parameters: KPIs, divisions, departments, priorities. Have a look at this short movie, you can replace the word ERP by PLM, and you will understand why I like this movie (and the relaxing sound)

The Middle Management dilemma

And here comes my last observation. At the C-level we can find inspiring visions often outcome-based, talking about a more agile company, closer to the customer, empowered workers, etc.  Then there is the ongoing business that cannot be disrupted and needs to perform – so the business units, the departments all get their performance KPIs, merely keeping the status quo in place.

Also, new digital initiatives need to be introduced. They don’t fit in the existing business and are often started in separation – like GE Digital division, and you can read Jeff Immelt’ s thoughts and strategy how this could work. (The Only Way Manufacturers Can Survive). However as the majority of the business runs in the old mode, the Digital Business became another business silo in the organization, as the middle management could not be motivated to embed digital in their business (no KPIs or very low significance of new KPIs)

I talked about the hybrid/bimodal approach several times in my blog posts, most recently in The Challenges of a Connected Ecosystem.  One of the points that I did not address was the fact that probably nobody wants to work in the old mode anymore once the new approach is successful and scaled up.

When the new mode of business is still small, people will not care so much and continue business as usual. Once the new mode becomes the most successful part of the company, people do want to join this success if they can. And here the change effort is needed. An interesting article in this context is The End of Two-Speed IT from the Boston Consultancy Group (2016). They already point at the critical role of middle management. Middle management can kill digital transformation or being part of it, by getting motivated and adopting too.

Conclusion

Perhaps too much text in this post and even more content when you dive more in-depth in the provided content. Crucial if you want to understand the digital transformation process in an existing company and the critical place of middle management. They are likely the killers of digital transformation if not give the right coaching and incentives.  Just an observation – not a thought 😉

Image: waitbutwhy.com

Two weeks ago I wrote about the simplification discussion around PLM – Why PLM never will be simple.  There I focused on the fact that even sharing information in a consistent, future proof way of working, is already challenging, despite easy to use communication tools like email or social communities.

I mentioned that sharing PLM data is even more challenging due to their potential revision, version, status, and context.  This brings us to the topic of configuration management, needed to manage the consistency of information, a challenge with the increasingly sophisticated products or systems. Simple tools will never fix this complexity.

To manage the consistency of a product,  configuration management (CM) is required. Two weeks ago I read the following interesting post from CMstat: A Brief History of Configuration Management Software.

An excellent introduction if you want to know more about the roots of CM, be it that the post at the end starts to flush out all the disadvantages and reasons why you should not think about CM using PLM systems.

The following part amused me:

 The Reality of Enterprise PLM

It is no secret that PLM solutions were often sold based in good part on their promise to provide full-lifecycle change control and systems-level configuration management across all functions of the enterprise for the OEM as well as their supply and service chain partners. The appeal of this sales stick was financial; the cost and liability to the corporation from product failures or disasters due to a lack of effective change control was already a chief concern of the executive suite. The sales carrot was the imaginary ROI projected once full-lifecycle, system-level configuration control was in effect for the OEM and supply chain.

Less widely known is that for many PLM deployments, millions of budget dollars and months of calendar time were exhausted before reaching the point in the deployment road map where CM could be implemented. It was not uncommon that before the CM stage gate was reached in the schedule, customer requirements, budget allocations, management priorities, or executive sponsors would change. Or if not these disruptions within the customer’s organization, then the PLM solution provider, their software products or system integrators had been changed, acquired, merged, replaced, or obsoleted. Worse yet for users who just had a job to do was when solutions were “reimagined” halfway through a deployment with the promise (or threat) of “transforming” their workflow processes.

Many project managers were silently thankful for all this as it avoided anyone being blamed for enterprise PLM deployment failures that were over budget, over schedule, overweight, and woefully underwhelming. Regrettably, users once again had to settle for basic change control instead of comprehensive configuration management.

I believe the CMstat-writer is generalizing too much and preaches for their parish. Although my focus lies on PLM, I also learned the importance of CM and for that reason I will share a view on CM from the PLM side:

Configuration Management is not a target for every company

The origins of Configuration Management come from the Aerospace and Defense (A&D) industries. These industries have high quality, reliability and traceability constraints. In simple words, you need to prove your product works correctly specified in all described circumstances and keep this consistent along the lifecycle of the product.

Moreover, imagine you delivered the perfect product, next implementing changes require a full understanding of the impact of the change. What is the impact of the change on the behavior or performance? In A&D is the question is it still safe and reliable?

Somehow PLM and CM are enemies. The main reason why PLM-systems are used is Time to Market — bringing a product as fast as possible to the market with acceptable quality. Being first is sometimes more important than high quality. CM is considered as a process that slows down Time to Market as managing consistency, and continuous validating takes time and effort.

Configuration Management in Aviation is crucial as everyone understands that you cannot afford to discover a severe problem during a flight. All the required verification and validation efforts make CM a costly process along the product lifecycle. Airplane parts are 2 – 3 times more expensive than potential the same parts used in other industries. The main reason: airplane parts are tested and validated for all expected conditions along their lifecycle.  Other industries do not spend so much time on validation. They validate only where issues can hurt the company, either for liability or for costs.

Time to Market even impacts the aviation industry  as we can see from the commercial aircraft battle(s) between Boeing and Airbus. Who delivers the best airplane (size/performance) at the right moment in the global economy? The Airbus 380 seemed to miss its targets in the future – too big – not flexible enough. The Boeing 737 MAX appears to target a market sweet spot (fuel economy) however the recent tragic accidents with this plane seemed to be caused by Time to Market pressure to certify the aircraft too early. Or is the complexity of a modern airplane unmanageable?

CM based on PLM-systems

Most companies had their configuration management practices long before they started to implement PLM. These practices were most of the time documented in procedures, leading to all kind of coding systems for these documents. Drawing numbers (the specification of a part/product), Specifications, Parts Lists, all had a meaningful identifier combined with a version/revision and status. For example, the Philips 12NC coding system is famous in the Netherlands and is still used among spin-offs of Philips and their supplier as it offers a consistent framework to manage configurations.

Storing these documents into a PDM/PLM-system to provide centralized access was not a big problem; however, companies also expected the PLM-system to support automation and functionality to support their configuration management procedures.

A challenge for many implementers for several reasons:

  • PLM-systems do not offer a standard way of working – if they would do so, they could only serve a small niche market – so it needs to be “configured/customized.”
  • Company configuration management rules sometimes cannot be mapped to the provided PLM data-model and their internal business logic. This has led to costly customizations where, in the best case, implementer and company agreed somewhere in the middle. Worst case as the writer from the CM blog is mentioning it becomes an expensive, painful project
  • Companies do not have a consistent configuration management framework as Time to Market is leading – we will fix CM later is the idea, and they let their PLM –implementer configure the PLM-system as good a possible. Still, at the management level, the value of CM is not recognized.
    (see also: PLM-CM-ALM – not sexy ?)

In companies that I worked with, those who were interested in a standardized configuration management approach were trained in CMII. CMII (or CM2) is a framework supported by most PLM-systems, sometimes even as a pre-configured template to speed-up the implementation. Still, as PLM-systems serve multiple industries, I would not expect any generic PLM-vendor to offer Commercial Off-The-Shelf (COTS) CM-capabilities – there are too many legacy approaches. You can find a good and more in-depth article related to CMII here: Towards Integrated Configuration Change Management (CMII) from Lionel Grealou.

 

What’s next?

Current configuration management practices are very much based on the concepts of managing document. However, products are more and more described in a data-driven, model-based approach. You can find all the reasons why we are moving to a model-based approach in my last year’s blog post. Important to realize is that current CM practices in PLM were designed with mechanical products and lifecycles as a base. With the combination of hardware and software, integrated and with different lifecycles, CM has to be reconsidered with a new holistic concept. The Institute of Process Excellence provides CM2 training but is also active in developing concepts for the digital enterprise.

Martijn Dullaart, Lead Architect Configuration Management @ ASML & Chair @ IPE/CM2 Global Congress has published several posts related to CM and a Model-Based approach – you find them here related to his LinkedIn profile. As you can read from his articles organizations are trying to find a new consistent approach.

Perhaps CM as a service to a Product Innovation Platform, as the CMstat blog post suggests? (quote from the post below)

In Part 2 of this CMsights series on the future of CM software we will examine the emerging strategy of “Platform PLM” where functional services like CM are delivered via an open, federated architecture comprised of rapidly-deployable industry-configured applications.

I am looking forward to Part2 of CMsights . An approach that makes sense to me as system boundaries will disappear in a digital enterprise. It will be more critical in the future to create consistent data flows in the right context and based on data with the right quality.

Conclusion

Simple tools and complexity need to be addressed in the right order. Aligning people and processes efficiently to support a profitable enterprise remains the primary challenge for every enterprise. Complex products, more dependent on software than hardware, are requiring new ways of working to stay competitive. Digitization can help to implement these new ways of working. Experienced PLM/CM experts know the document-driven past. Now it is time for a new generation of PLM and CM experts to start from a digital concept and build consistent and workable frameworks. Then the simple tools can follow.

 

In this post, I will explain the story behind my presentation at PI PLMx London. You can read my review of the event here: “The weekend after ……” and you can find my slides on SlideShare: HERE.

For me, this presentation is a conclusion of a thought process and collection of built-up experiences in the past three to  five years, related to the challenges digital transformation is creating for PLM and what makes it hard to go through compared to other enterprise business domains.  So here we go:

Digital transformation or disruption?

Slide 2 (top image) until 5 are dealing with the common challenges of business transformation. In nature, the transformation from a Caterpillar (old linear business) to a Butterfly (modern, agile, flexible) has the cocoon stage, where the transformation happens. In business unfortunate companies cannot afford a cocoon phase, it needs to be a parallel change.

Human beings are not good at change (slide 3 & 4), and the risk is that a new technology or a new business model will disrupt your business if you are too confident – see examples from the past. The disruption theory introduced by Clayton Christensen in his book, the Innovators Dilemma is an excellent example of how this can happen.  Some of my thoughts are in The Innovator’s dilemma and generation change (2015)

Although I know some PLM vendors consider themselves as disruptor, I give them no chance in the PLM domain. The main reason: The existing PLM systems are so closely tied to the data they manage, that switching from one PLM system to a more modern PLM system does not pay off.  The data models are so diverse that it is better to stay with the existing environment.

What is clear for modern digital businesses is that if you could start from scratch or with almost no legacy you can move faster forward than the rest. But only if supported by a strong leadership , a(understandable) vision and relentless execution.

The impression of evolution

Marc Halpern’s slide presented at PDT 2015 is one of my favorite slides, as it maps business maturity to various characteristics of an organization, including the technologies used.

 

Slide 7 till 18 are zooming in on the terms Coordinated and Connected and the implications it has for data, people and business. I have written about Coordinated and Connected recently: Coordinated or Connected (2018)

A coordinated approach: Delivering the right information at the right moment in the proper context is what current PLM implementations try to achieve. Allowing people to use their own tools/systems as long as they deliver at the right moment their information (documents/files) as part of the lifecycle/delivery process. Very linear and not too complicated to implement you would expect. However it is difficult ! Here we already see the challenge of just aligning a company to implement a horizontal flow of data. Usability of the PLM backbone and optimized silo thinking are the main inhibitors.

In a connected approach: Providing actual information for anyone connected in any context the slide on the left shows the mental picture we need to have for a digital enterprise. Information coming from various platforms needs to be shareable and connected in real-time, leading, in particular for PLM, to a switch from document-based deliverables to models and parameters that are connected.

Slide 15 has examples of some models.  A data-driven approach creates different responsibilities as it is not about ownership anymore but about accountability.

The image above gives my PLM-twisted vision of which are the five core platforms for an enterprise.  The number FIVE is interesting as David Sherburne just published his Five Platforms that Enable Digital Transformation and in 2016 Gartner identified Five domains for the digital platform .- more IT-twisted ? But remember the purpose of digital transformation is: FIVE!

From Coordinated to Connected is Digital Transformation

Slide 19 till 27 further elaborate on the fact that for PLM there is no evolutionary approach possible, going from a Coordinated technology towards a Connected technology.

For three reasons:  different type of data (document vs. database elements), different people (working in a connected environment requires modern digital skills) and different processes (the standard methods for mechanical-oriented PLM practices do not match processes needed to deliver systems (hardware & software) with an incremental delivery process).

Due to the incompatibility of the data, more and more companies discover that a single PLM-instance cannot support both modes – staying with your existing document-oriented PLM-system does not give the capabilities needed for a model-driven approach. Migrating the data from a traditional PLM-environment towards a modern data-driven environment does not bring any value. The majority of the coordinated data is not complete and with the right quality to use a data-driven environment. Note: in  a data-driven environment you do not have people interpreting the data – the data should be correct for automation / algorithms.

The overlay approach, mentioned several times in various PLM-blogs, is an intermediate solution. It provides traceability and visibility between different data sources (PLM, ALM, ERP, SCM, …). However it does not make the information in these systems better accessible.

So the ultimate conclusion is: You need both approaches, and you need to learn to work in a hybrid environment !

What can various stakeholders do?

For the management of your company, it is crucial they understand the full impact of digital transformation. It is not about a sexy customer website, a service platform or Virtual Reality/Augmented Reality case for the shop floor or services. When these capabilities are created disconnected from the source (PLM), they will deliver inconsistencies in the long-term. The new digital baby becomes another silo in the organization. Real digital transformation comes from an end-to-end vision and implementation.  The result of this end-to-end vision will be the understanding that there is a duality in data, in particular for the PLM domain.

Besides the technicalities, when going through a digital transformation, it is crucial for the management to share their vision in a way it becomes a motivational story, a myth, for all employees. As Yuval Harari, writer of the book Sapiens,  suggested, we (Home Sapiens) need an abstract story, a myth to align a larger group of people to achieve a common abstract goal. I discussed this topic in my posts: PLM as a myth? (2017)  and PLM – measurable or a myth?

Finally, the beauty of new digital businesses is that they are connected and can be monitored in real-time. That implies you can check the results continuously and adjust – scale of fail!

Consultants and strategists in a company should also take the responsibility, to educate the management and when advising on less transformational steps, like efficiency improvements: Make sure you learn and understand model-based approaches and push for data governance initiatives. This will at least narrow the gap between coordinated and connected environments.

This was about strategy – now about execution:

For PLM vendors and implementers, understanding the incompatibility of data between current PLM practices – coordinated and connected – it will lead to different business models. Where traditionally the new PLM vendor started first with a rip-and-replace of the earlier environment – no added value – now it is about starting a new parallel environment.  This implies no more big replacement deals, but more a long-term. strategic and parallel journey.  For PLM vendors it is crucial that being able to offer to these modes in parallel will allow them to keep up their customer base and grow. If they would choose for coordinated or connected only it is for sure a competitor will work in parallel.

For PLM users, an organization should understand that they are the most valuable resources, realizing these people cannot make a drastic change in their behavior. People will adapt within their capabilities but do not expect a person who grew up in the traditional ways of working (linear / analogue) to become a successful worker in the new mode (agile / digital). Their value lies in transferring their skills and coaching new employees but do not let them work in two modes. And when it comes to education: permanent education is crucial and should be scheduled – it is not about one or two trainings per year – if the perfect training would exist, why do students go to school for several years ? Why not give them the perfect PowerPoint twice a year?

Conclusions

I believe after three years of blogging about this theme I have made my point. Let’s observe and learn from what is happening in the field – I remain curious and focused about proof points and new insights. This year I hope to share with you new ideas related to digital practices in all industries, of course all associated with the human side of what we once started to call PLM.

Note: Oleg Shilovitsky just published an interesting post this weekend: Why complexity is killing PLM and what are future trajectories and opportunities? Enough food for discussion. One point: The fact that consumers want simplicity does not mean PLM will become simple – working in the context of other information is the challenge – it is human behavior – team players are good in anticipating – big egos are not. To be continued…….

 

 

 

 

 

 

 

 

 

I was happy to take part at the PI PLMx London event last week. It was here and in the same hotel that this conference saw the light in 2011  – you can see my blog post from that event here: PLM and Innovation @ PLMINNOVATION 2011.

At that time the first vendor-independent PLM conference after a long time and it brought a lot of new people together to discuss their experience with PLM. Looking at the audience that time, many of the companies that were there, came back during the years, confirming the value this conference has brought to their PLM journey.

Similar to the PDT conference(s) – just announced for this year last week – here – the number of participants is diminishing.

Main hypotheses:

  1. the PLM-definition has become too vague. Going to a PLM conference does not guarantee it is your type of PLM discussions you expect to see?
  2. the average person is now much better informed related to PLM thanks to the internet and social media (blogs/webinars/ etc.) Therefore, the value retrieved from the PLM conference is not big enough any more?
  3. Digital Transformation is absorbing all the budget and attention downstream the organization not creating the need and awareness of modern PLM to the attention of the management anymore. g., a digital twin is sexier to discuss than PLM?

What do you think about the above three hypotheses – 1,2 and/or 3?

Back to the conference. The discussion related to PLM has changed over the past nine years. As I presented at PI from the beginning in 2011, here are the nine titles from my sessions:

2011       PLM – The missing link
2012       Making the case for PLM
2013       PLM loves Innovation
2014       PLM is changing
2015       The challenge of PLM upgrades
2016       The PLM identity crisis
2017       Digital Transformation affects PLM
2018       PLM transformation alongside Digitization
2019       The challenges of a connected Ecosystem for PLM

Where the focus started with justifying PLM, as well as a supporting infrastructure, to bring Innovation to the market, the first changes became visible in 2014. PLM was changing as more data-driven vendors appeared with new and modern (metadata) concepts and cloud, creating the discussion about what would be the next upgrade challenge.

The identity crisis reflected the introduction of software development / management combined with traditional (mechanical) PLM – how to deal with systems? Where are the best practices?

Then from 2017 on until now Digital Transformation and the impact on PLM and an organization became the themes to discuss – and we are not ready yet!

Now some of the highlights from the conference. As there were parallel sessions, I had to divide my attention – you can see the full agenda here:

How to Build Critical Architecture Models for the New Digital Economy

The conference started with a refreshing presentation from David Sherburne (Carestream) explaining their journey towards a digital economy.  According to David, the main reason behind digitization is to save time, as he quoted Harvey Mackay an American Businessman and Journalist,

Time is free, but it is priceless. You cannot own it, but you can use it. You can’t keep it, but you can spend it. Once you have lost it, you never can get it back

I tend to agree with this simplification as it makes the story easy to explain to everyone in your company. Probably I would add to that story that saving time also means less money spent on intermediate resources in a company, therefore, creating a two-sided competitive advantage.

David stated that today’s digital transformation is more about business change than technology and here I wholeheartedly agree. Once you can master the flow of data in your company, you can change and adapt your company’s business processes to be better connected to the customer and therefore deliver the value they expect (increases your competitive advantage).

Having new technology in place does not help you unless you change the way you work.

David introduced a new acronym ILM (Integrated Lifecycle Management) and I am sure some people will jump on this acronym.

David’s presentation contained an interesting view from the business-architectural point of view. An excellent start for the conference where various dimensions of digital transformation and PLM were explored.

Integrated PLM in the Chemical industry

Another interesting session was from Susanna Mäentausta  (Kemira oy)  with the title: “Increased speed to market, decreased risk of non-compliance through integrated PLM in Chemical industry.” I selected her session as from my past involvement with the process industry, I noticed that PLM adoption is very low in the process industry. Understanding Why and How they implemented PLM was interesting for me. Her PLM vision slide says it all:

There were two points that I liked a lot from her presentation, as I can confirm they are crucial.

  • Although there was a justification for the implementation of PLM, there was no ROI calculation done upfront. I think this is crucial, you know as a company you need to invest in PLM to stay competitive. Making an ROI-story is just consoling the people with artificial number – success and numbers depend on the implementation and Susanna confirmed that step 1 delivered enough value to be confident.
  • There were an end-to-end governance and a communication plan in place. Compared to PLM projects I know, this was done very extensive – full engagement of key users and on-going feedback – communicate, communicate, communicate. How often do we forget this in PLM projects?

Extracting More Value of PLM in an Engineer-to-Order Business

Sami Grönstrand & Helena Gutierrez presented as an experienced duo (they were active in PI P PLMx Hamburg/Berlin before) – their current status and mission for PLM @ Outotec. As the title suggests, it was about how to extract more value from PL M, in an Engineering to Order Business.

What I liked is how they simplified their PLM targets from a complex landscape into three story-lines.

If you jump into all the details where PLM is contributing to your business, it might get too complicated for the audience involved. Therefore, they aligned their work around three value messages:

  • Boosting sales, by focusing on modularization and encouraging the use of a product configurator. This instead of developing every time a customer-specific solution
  • Accelerating project deliverables, again reaping the benefits of modularization, creating libraries and training the workforce in using this new environment (otherwise no use of new capabilities). The results in reducing engineering hours was quite significant.
  • Creating New Business Models, by connecting all data using a joint plant structure with related equipment. By linking these data elements, an end-to-end digital continuity was established to support advanced service and support business models.

My conclusion from this session was again that if you want to motivate people on a PLM-journey it is not about the technical details, it is about the business benefits that drive these new ways of working.

Managing Product Variation in a Configure-To-Order Business

In the context of the previous session from Outotec, Björn Wilhemsson’s session was also addressing somehow the same topic of How to create as much as possible variation in your customer offering, while internally keep the number of variants and parts manageable.

Björn, Alfa Laval’s OnePLM Programme Director, explained in detail the strategy they implemented to address these challenges. His presentation was very educational and could serve as a lesson for many of us related to product portfolio management and modularization.

Björn explained in detail the six measures to control variation, starting from a model-strategy / roadmap (thinking first) followed by building a modularized product architecture, controlling and limiting the number of variants during your New Product Development process. Next as Alfa Laval is in a Configure-To-Order business, Björn the implementation of order-based and automated addition of pre-approved variants (not every variant needs to exist in detail before selling it), followed by the controlled introduction of additional variants and continuous analysis of quoted and sold variant (the power of a digital portfolio) as his summary slides shows below:

Day 1 closed with an inspirational keynote; Lessons-Learnt from the Mountaineering Experience 8848 Meter above sea level  – a mission to climb the highest mountain on each of the continents in 107 days – 9 hours – setting a new world record by Jonathan Gupta.

There are some analogies to discover between his mission and a PLM implementation. It is all about having the total picture in mind. Plan and plan, prepare step-by-step in detail and rely on teamwork – it is not a solo journey – and it is about reaching a top (deliverable phase) in the most efficient way.

The differences: PLM does not need world records, you need to go with the pace an organization can digest and understand. Although the initial PLM climate during implementation might be chilling too, I do not believe you have to suffer temperatures below 50 degrees Celsius.

During the morning, I was involved in several meetings, therefore unfortunate unable to see some of the interesting sessions at that time. Hopefully later available on PI.TV for review as slides-only do not tell the full story. Although there are experts that can conclude and comment after seeing a single slide. You can read it here from my blog buddy Oleg Shilovitsky’s post : PLM Buzzword Detox. I think oversimplification is exactly creating the current problem we have in this world – people without knowledge become louder and sure about their opinion compared to knowledgeable people who have spent time to understand the matter.

Have a look at the Dunning-Kruger effect here (if you take the time to understand).

 

PLM: Enabling the Future of a Smart and Connected Ecosystem

Peter Bilello from CIMdata shared his observations and guidance related to the current ongoing digital business revolution that is taking place thanks to internet and IoT technologies. It will fundamentally transform how people will work and interact between themselves and with machines. Survival in business will depend on how companies create Smart and Connected Ecosystems. Peter showed a slide from the 2015 World Economic Forum (below) which is still relevant:

Probably depending on your business some of these waves might have touched your organization already. What is clear that the market leaders here will benefit the most – the ones owning a smart and connected ecosystem will be the winners shortly.

Next, Peter explained why PLM, and in particular the Product Innovation Platform, is crucial for a smart and connected enterprise.  Shiny capabilities like a digital twin, the link between virtual and real, or virtual & augmented reality can only be achieved affordably and competitively if you invest in making the source digital connected. The scope of a product innovation platform is much broader than traditional PLM. Also, the way information is stored differs – moving from documents (files) towards data (elements in a database).  I fully agree with Peter’s opinion here that PLM is conceptually the Killer App for a Smart & Connected Ecosystem and this notion is spreading.

A recent article from Forbes in the category Leadership: Is Your Company Ready For Digital Product Life Cycle Management? shows there is awareness.  Still very basic and people are still confused to understand what is the difference with an electronic file (digital too ?) and a digital definition of information.

The main point to remember here: Digital information can be accessed directly through a programming interface (API/Service) without the need to open a container (document) and search for this piece of information.

Peter then zoomed in on some topics that companies need to investigate to reach a smart & connected ecosystem. Security (still a question hardly addressed in IoT/Digital Twin demos), Standards and Interoperability ( you cannot connect in all proprietary formats economically and sustainably) A lot of points to consider and I want to close with Peter’s slide illustrating where most companies are in reality

The Challenges of a Connected Ecosystem for PLM

I was happy to present after Peter Bilello and David Sherburne (on day 1) as they both gave a perspective on digital transformation complementary to what I submitted. My presentation was focusing on the incompatibility of current coordinated business systems and the concept of a connected ecosystem.

You can already download my slides from SlideShare here: The Challenges of a Connected Ecosystem for PLM . I will explain my presentation in an upcoming blog post as slides without a story might lead to the wrong interpretation, and we already reached 2000 words. Few words to come.

How to Run a PLM Project Using the Agile Manifesto

Andrew Lodge, head of Engineering Systems at JCB explained how applying the agile mindset towards a PLM project can lead to faster and accurate results needed by the business. I am a full supporter for this approach as having worked in long and waterfall-type of PLM implementations there was always the big crash and user dissatisfaction at the final delivery. Keeping the business involved every step seems to be the solution. The issue I discovered here is that agile implementation requires a lot of people, in particular, business, to be involved heavily. Some companies do not understand this need and dropped /reduced business contribution to the least, killing the value of an agile approach

 

Concluding

For me coming back to London for the PI PLMx event was very motivational. Where the past two, three conferences before in Germany might have led to little progress per year, this year, thanks to new attendees and inspiration, it became for me a vivid event, hopefully growing shortly. Networking and listening to your peers in business remains crucial to digest it all.

 

This is the moment of the year to switch-off from the details. No more talking and writing about digital transformation or model-based approaches. It is time to sit back and relax. Two years ago I shared the PLM Songbook, now it is time to see one or more movies. Here are my favorite top five PLM movies:

Bruce Almighty

Bruce Nolan, an engineer in Buffalo, N.Y., is discontented with almost everything in the company despite his popularity and the love of his draftswoman Grace. At the end of the worst day of his life, Bruce angrily ridicules and rages against PLM and PLM responds. PLM appears in human form and, endowing Bruce with divine powers op collaboration, challenges Bruce to take on the big job to see if he can do it any better.

A movie that makes you modest and you realize there is more than your small ecosystem.

 

The good, the bad and the ugly

Blondie (The Good PLM consultant) is a professional who is out trying to earn a few dollars. Angel Eyes (The Bad PLM Vendor) is a PLM salesman who always commits to a task and sees it through, as long as he is paid to do so. And Tuco (The Ugly PLM Implementer) is a wanted outlaw trying to take care of his own hide. Tuco and Blondie share a partnership together making money off Tuco’s bounty, but when Blondie unties the partnership, Tuco tries to hunt down Blondie. When Blondie and Tuco come across a PLM implementation loaded with dead bodies, they soon learn from the only survivor (Bill Carson – the PLM admin) that he and a few other men have buried a stash of value on a file server. Unfortunately, Carson dies, and Tuco only finds out the name of the file server, while Blondie finds out the name on the hard disk. Now the two must keep each other alive in order to find the value. Angel Eyes (who had been looking for Bill Carson) discovers that Tuco and Blondie met with Carson and knows they know the location of the value. All he needs is for the two to ..

A movie that makes you realize that it is a challenging journey to find the value out of PLM. It is not only about execution – but it is also about all the politics of people involved – and there are good, bad and ugly people on a PLM journey.

The Grump

The Grump is a draftsman in Finland from the past. A man who knows that everything used to be so much better in the old days. Pretty much everything that’s been done after 1953 has always managed to ruin The Grump’s day. Our story unfolds The Grump opens a 3D Model on his computer, hurting his brain. He has to spend a weekend in Helsinki to attend a model-based therapy. Then the drama unfolds …….

A movie that makes you realize that progress and innovation do not come from grumps. In every environment when you want to do a change of the status quo, grumps will appear. With the exciting Finish atmosphere, a perfect film for Christmas.

Deliverance

The Cahulawassee River Valley company in Northern Georgia is one of the last analog companies in the state, which will soon change with the imminent implementation of a PLM system in the company, breaking down silos everywhere. As such, four Atlanta city slickers, alpha male Lewis Medlock, generally even-keeled Ed Gentry, slightly condescending Bobby Trippe, and wide-eyed Drew Ballinger decide to implement PLM in one trip, with only Lewis and Ed having experience in CAD. They know going in that the area is ethnoculturally homogeneous and isolated, but don’t understand the full extent of such until they arrive and see what they believe is the result of generations of inbreeding. Their relatively peaceful trip takes a turn for the worse when half way through they encounter a couple of hillbilly moonshiners. That encounter not only makes the four battle their way out of the PLM project intact and alive but threatens the relationships of the four as they do.

This movie, from 1972, makes you realize that in the early days of PLM starting a big-bang implementation journey into an area that is not ready for it, can be deadly, for your career and friendship. Not suitable for small children!

Diamonds Are Forever or Tron (legacy)

James Bond’s mission is to find out who has been drawing diamonds, which are appearing on blogs. He adopts another identity in the form of Don Farr. He joins up with CIMdata and acts as if he is developing diamonds, but everyone is hungry for these diamonds. He also has to avoid Mr. Brouwer and Mr. Kidd, the dangerous couple who do not leave anyone in their way when it comes to model-based. And Ernst Stavro Blofeld isn’t out of the question. He may have changed his looks, but is he linked with the V-shape? And if he is, can Bond finally defeat his ultimate enemy?

Sam Flynn, the tech-savvy 27-year-old son of Kevin Flynn, looks into his father’s disappearance and finds himself pulled into the same world of virtual twins and augmented reality where his father has been living for 20 years. Along with Kevin’s loyal confidant Quorra, father and son embark on a life-and-death journey across a visually-stunning cyber universe that has become far more advanced and exceedingly dangerous. Meanwhile, the malevolent program IoT, who dominates the digital world, plans to invade the real world and will stop at nothing to prevent their escape

I could not decide about number five. The future is bright with Boeing’s new representation of Systems Engineering, see my post on CIMdata’s PLM Europe roadmap event where Don Farr presented his diamond(s). However, the future is also becoming a mix of real with virtual and here Tron (legacy) will help my readers to understand the beauty of a mixed virtual and real world. You can decide – or send me your favorite PLM movies.

Note: All movie reviews are based on IMBd.com story lines, and I thank the authors of these story lines for their contribution and hope they agree with the PLM-related twist. Click on the image to find the full details and original review.

Conclusion

2018 has been an exciting year with a lot of buzzwords combined with the reality that the current PLM approach is incompatible with the future. How we can address this issue more in 2019 – first at PI PLMx 2019 in London (be there – last chance to meet people in the UK when they are still Europeans and share/discuss plans for the upcoming year)

Wishing you all the best during the break and a happy and prosperous 2019

 

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