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PLM holiday thoughts

July and August are the months that privileged people go on holiday. Depending on where you live and work it can be a long weekend or a long month. I plan to give my PLM twisted brain a break for two weeks. I am not sure if it will happen as Greek beaches always have inspired for philosophers. What do you think about “PLM on the beach”?

There are two topics that keep me intrigued at this moment, and I hope to experience more about them the rest of the year.

Moving to Model-Based processes

I believe we all get immune for the term “Digital Transformation” (11.400.000 hits on Google today). I have talked about digital transformation in the context many times too. Change is happening. The classic ways of working were based on documents, a container of information, captured on paper (very classical) or captured in a file (still current).

As every stakeholder in a company (marketing, engineering, manufacturing, supplier, services, customers, and management) required a different set of information, many pieces of information all referring to the same product, have been parsed and modified into other documents.  It is costly and expensive to get a complete view of what is happening in the business. Meanwhile, all these information transformations (with Excel as the king) are creating an overhead for information management, both on IT-level and even more for non-value added resources who are manipulating information for the next silo/discipline.

What we have learned from innovative companies is that a data-driven approach, where more granular information is stored uniquely as data objects instead of document containers bring huge benefits. Information objects can be shared where relevant along the product lifecycle and without the overhead of people creating and converting documents, the stakeholders become empowered as they can retrieve all information objects they desire (if allowed). We call this the digital thread.

The way to provide a digital thread for manufacturing companies is to change the way they organize the product development and delivery processes. A model-based approach is required. I wrote about in a post: Digital PLM requires a Model-Based Enterprise a year ago. The term “Model-Based” also has many variations (67.800.00 hits on Google today). Some might consider the 3D MCAD Model at the center of information both for engineering and manufacturing.A good overview in the video below

Others might think about a behavior/simulation model of the product for simulating and delivering a digital twin often referred in the context of model-based design (MBD).

And ultimately a model-based approach integrated with systems engineering into Model-Based Systems Engineering (MBSE) allowing all stakeholders to collaborate in a data-driven manner around complex products based.

You can learn a lot about that during the upcoming PDT Europe conference on 18-19th October in Gothenburg. Concepts and experiences will be shared, and my contribution to the conference will be all about the challenges and lessons learned from the transformation process companies are embarking on becoming model-based.

PLM and ALM

A second topic that becomes more and more relevant for companies is how to combine the domains of product development and application software empowering these products. The challenge here is that we have no mature concepts yet for both domains. It reminds me of the early PDM implementations where companies implemented their PDM system for MCAD software and documents. All the electrical stuff was done disconnected in separate systems and somewhere in the product lifecycle information from MCAD and ECAD was merged in the bill of materials and documents. Mainly manually with a decent overhead for people consolidating the data.  Modern PLM systems have found best practices to manage a combination of mechanical and electronic components through an EBOM even connecting embedded software as an item in the BOM.

Now more and more the behavior and experience of products are driven by software. Sensors and connectivity of data are driving new capabilities and business models to the market. Customers are getting better connected, however also the companies delivering these solutions can act much faster now based on trends or issues experienced from the field.

The challenge, however, is that the data coming from the systems and the software defining the behavior of the products most of the time is managed in a separate environment, the ALM environment. In the ALM environment delivery of new solutions can be extremely fast and agile, creating a disconnect between the traditional product delivery processes and the software delivery processes.

Companies are learning now how to manage the dependencies between these two domains, as consistency of requirements and features of the products is required. Due to the fast pace of software changes, it is almost impossible to connect everything to the PLM product definition. PLM Vendors are working on concepts to connect PLM and ALM through different approaches. Other companies might believe that their software process is crucial and that the mechanical product becomes a commodity. Could you build a product innovation platform starting from the software platform which some of the old industry giants believe?

PLM combined with ALM concepts are the ones to follow, and I am looking forward to meeting the first company that has implemented a consistent flow between the world of hardware and software. So far there are many slide solutions, the reality and legacy at this moment are still inhibitors for the next step.

Conclusion

There is still a lot to discover and execute in the domain of PLM. Moving to a data-driven enterprise with all stakeholders connected is the challenging journey. Can we build robust concepts taking accuracy, security, and speed into account? I believe so, in particular when dreaming at the beach.

 

Bye for now

Potential digital transformation is everywhere. This time I want to share a personal story based on my IoT cycling device from Garmin. Several years ago I became an enthusiastic cyclist, mainly because it clears your mind and cycling keeps you in good shape after enjoying customer visits with great dinners and excellent breakfasts. As the Dutch lack real mountains, we challenge ourselves with through open fields with strong winds to suffer a little too.

 

Four years ago, started tracking my cycling performance, with a Garmin Edge 810. The story of my Garmin is a real IoT story. GPS trackers, in the beginning, did not communicate with the outside world. Now, this device connects to sensors registering my speed, my location, my heart rate, pedal cadence and produced power at any time, finally uploading it to the Garmin Connect platform.

The IoT platform

The Garmin Connect platform gives me insights on my performance, activities, and segments. The segment demonstrates the social part of the platform. Here you can see how you rank with others who have cycled the same track segment over time. And you can register your own preferred segment too, where you challenge yourself and others in your area. So the number of segments is growing continuously. Imagine all these cyclists around the world virtually sharing and taking the same track. I am curious to learn from Garmin how many people are connected to the platform.
I could not find these numbers. You?

The fun of segments

Digital Twin

Through the platform, Garmin collects huge amounts of data of connected users. Each data set of the connected user could be considered a simple digital twin. The Connect platform provides me insights about my overall performance through the years through various reports. Garmin could offer as a (paid) service to deliver insights of my performance compared to other users and propose predictive enhancements similar to the GE Predix platform. The difference of course that 1 % performance improvement for me in cycling does not bring the same value as 1 % performance improvement of a GE product (turbine, jet engine, train, …). However, the concept is the same and GE is promoting themselves as the next Digital Industrial Company, leading in digital transformation. Read more here.

Digital Twin performance

Connecting to the customer

Tthe change from moving from a document-driven approach towards a data-driven approach to collect and store information is not the main concept behind a digital transformation. The data-driven approach is an enabler to connect directly to the customer and change the current business model from delivering products into a business model delivering services or even more advanced delivering experiences. Services and experiences create a closer relation to the customer, more loyalty, but also the challenge that you need to connect to the customer in such a way that the customer sees value. Otherwise, the customer will switch to another service or experience. The Apple, Nespresso, Uber experiences are all known for their new ways of connecting to the customer, differentiating from traditional product sales. Garmin could also be on that list. However, I discovered they are not there yet, despite an IoT-platform and connected devices. What is missing?

Why Garmin is not a digital enterprise.

Two years ago my Garmin Edge started crashing in the middle of a ride. The system rebooted after some minutes, and the recordings were lost or at least unreadable.  When I contacted Garmin support their standard response was: “Please reset the device and update to the latest software.” Two years ago the software had still bug fixes. After two years you would expect a stable experience.

However, a year ago the problems started to become more frequent. I started to send log files illustrating where the error occurred. Still, the Garmin response was the same: “Please reset the device and update to the latest software.”
However as there were no new software updates, there must be another reason why the device failed more and more.

After pushing for a resolution, the service department concluded I needed a new device. There might be an issue with the hardware. A little bit skeptical I agreed on a hardware switch again, and as expected this did not solve the crashes. My guess is that due to the increasing amount of segments at some places, the software gets confused where the rider is exactly located and in which direction the rider is going. These are the moments when the crash happens, and this is probably a software issue.

Still, the Garmin help desk believes there is a hardware problem (preferably swap the device) where I kept on providing evidence data of crashes to support Garmin in their error-discovery. Till now there is no resolution. The good news is that Garmin support mentioned investigating further.

For me, the interaction with Garmin illustrates that the company internally is not yet digital transformed. The service desk probably has KPIs (Key Performance Indicators) related to their response time and problem resolution time. Although I can debate the response time, it is clear that the problem resolution approach: Update to the latest software and if this does not work swap to a new device is not increasing the knowledge from Garmin as a company what their customers are experiencing.

Apparently, their software management is disconnected from the service department and customers. Only clear bugs during the first launch are fixed. Next, it is a disconnected world again.

A must for a digital enterprise is to dive into customer issues and to connect them back to R&D, both for the hardware part and software part. Something a modern product manager would do. If a company is not able to understand the multidisciplinary dependencies and solve issues from the field (with some effort), they will keep on making the same mistakes again with new product launches and lose customers who are looking for a better experience.

My conclusion

PLM should be part of the digital enterprise too as this is the only way to deliver consistent customer value and positive experience. It requires companies to break down silos and create multidisciplinary teams that are capable of supporting the full customer journey. A digital device and a digital customer platform are just facades to the outside world – the inside needs to change too.

What do you think?
Does your company understand the challenges to transform across all disciplines?
Are you managing PLM, ALM, and IoT in context of the product and across the whole lifecycle?
I am curious !

Although I have a PLM-twisted brain, I try to read in my free time books and articles that have no direct link with PLM. My main interest goes to people. How do they behave and decide in a society, in a company? What makes them decide to change an existing business?

SapiensI am currently reading the book from Yuval Noah Harari, called Sapiens: A Brief History of Humankind. I still have to finish the book but got intrigued by the following text when he tried to explain why homo sapiens was able to motivate and mobilize larger groups than a tribe:

How did Homo sapiens manage to a critical threshold, eventually founding cities comprising tens of thousands of inhabitants and empires ruling hundreds of millions? The secret was probably the appearance of fiction. Large numbers of strangers can cooperate successfully by believing in common myths.

Here my PLM-twisted brain woke up. What if we could create a  digital PLM myth? Currently, a lot of the PLM arguments are about functions and features, technical capabilities and perceived Return On Investment (ROI). For a digital transformation ROI is hard to estimate as the future state is not known and stable. What if the future state is a myth?  I will think about it when I finish the book and write the myth 🙂

Meanwhile, the rest of this blog post will be a reprint of a post I wrote almost five years ago in a similar context. PLM (old and new) are concepts against our evolution history. Enjoy and discover.

Our brain blocks PLM acceptance (Aug 2012)

tacit_logo.pngThe brain has become popular in the Netherlands in the past two years. Brain scientists have been publishing books sharing their interpretations on various topics of human behavior and the brain.

The common theme of all: The brain is influencing your perceptions, thoughts, and decisions without you even being aware of it.

clip_image005.jpg< added this post: in April 2013 Daniel Kahneman published his book Thinking Fast and Slow I referred in my post from May 2014 to this book – PLM is doomed, unless …>

Some even go that far by claiming certain patterns in the brain can be a proof if you have a certain disorder. It can be for better or for worse.

“It was not me that committed this crime; it was my brain and more…”

Anyway, this post will be full of quotes as I am not the brain expert, still giving the brain an important role (even in PLM)

Our brain blocks PLM acceptance

“My brain? That´s my second favorite organ” – Woody Allen

It is good to be aware of the influence of the brain. I wrote about this several times in the past, when discussing PLM vendor/implementer selection or when even deciding for PLM. Many of my posts are related to the human side of justifying and implementing PLM.

As implementing PLM for me primary is a business change instead of a combination of IT-tools to implement, it might be clear that understanding the inhibitors for PLM change are important to me.

In the PLM communities, we still have a hard job to agree between each other what is the meaning of PLM and where it differs from ERP. See for example this post, and in particular, the comments on LinkedIn (if you are a member of this group): PLM is a business process, not a (software) tool

Moreover, why it is difficult for companies to implement PLM beside ERP (and not as an extension of ERP) – search for PLM and ERP and you find zillions of thoughts and answers (mine too).

Charles_Roxburgh.jpgThe brain plays a major role in the Why PLM we have ERP battle (blame the brain). A week ago I read an older publication from Charles Roxburgh (published in May 2003 by McKinsey) called: Hidden flaws in strategy subtitle: Can insights from behavioral economics explain why good executives back bad strategies.

COULD read, hear and download the full article when you are a registered user. Unfortunate the link has been broken now>

The article has been written long before the financial and global crises were on the agenda and Mr. Roxburgh describes 8 hidden flaws that influence our strategic decision making (and PLM is a strategy).  Note all quotes below are from his publication.

Flaw 1: Overconfidence

We often make decisions with too much confidence and optimism as the brain makes us feel overconfident and overoptimistic about our own capabilities.

Flaw 2: Mental accounting

Avoiding mental accounting traps should be easier if you adhere to a basic rule: that every pound (or dollar or euro) is worth exactly that, whatever the category. In this way, you will make sure that all investments are judged on consistent criteria and be wary of spending that has been reclassified. Be particularly skeptical of any investment labeled “strategic.”

Here I would relate to the difference in IT-spending and budget when you compare ERP and PLM. ERP spending is normal (or strategic) where PLM spending is not understood.

Flaw 3: The status quo bias

People would rather leave things as they are. One explanation for the status quo bias is an aversion to loss—people are more concerned about the risk of loss than they are excited by the prospect of gain.

Another reason why adopting and implementing PLM in an organization is more difficult than for example just automating what we already do.

Flaw 4: Anchoring

Anchoring can be dangerous—particularly when it is a question of becoming anchored to the past

PLM has been anchored with being complex and expensive. Autodesk is trying to change the anchoring. Other PLM-like companies stop talking about PLM due to the anchoring and name what they do differently: 3DExperience, Business Process Automation, …..

Flaw 5: The sunk-cost effect

A familiar problem with investments is called the sunk-cost effect, otherwise known as “throwing good money after bad.” When large projects overrun their schedules and budgets, the original economic case no longer holds, but companies still keep investing to complete them.

I have described several cases in the past anonymously; where companies kept on investing and customizing their ERP environment to achieve PLM goals. Although it never reached the level of acceptance and quality a PLM system could offer, stopping these projects was impossible.

Flaw 6: The herding instinct

This desire to conform to the behavior and opinions of others is a fundamental human trait and an accepted principle of psychology.

Warren Buffett put his finger on this flaw when he wrote, “Failing conventionally is the route to go; as a group, lemmings may have a rotten image, but no individual lemming has ever received bad press.”

A quote in a quote but so true. Innovative thinking, introducing PLM in a company requires a change. Who needs to be convinced? If you do not have consensus (which usually happens as PLM is vague) you battle against the other lemmings.

Flaw 7: Misestimating future hedonistic states

Social scientists have shown that when people undergo major changes in circumstances, their lives typically are neither as bad nor as good as they had expected—another case of how bad we are at estimating. People adjust surprisingly quickly, and their level of pleasure (hedonistic state) ends up, broadly, where it was before

A typical situation every PLM implementation faces: users complaining they cannot work as efficient anymore due to the new system and their work will be a mess if we continue like this. Implementers start to customize quickly, and we are trapped. Let these people ‘suffer’ with the right guidance and motivation for some months (but this is sometimes not the business model the PLM implementer pushes as they need services as income)

Flaw 8: False consensus

People tend to overestimate the extent to which others share their views, beliefs, and experiences—the false-consensus effect. Research shows many causes, including these:

  • confirmation bias, the tendency to seek out opinions and facts that support our own beliefs and hypotheses

  • selective recall, the habit of remembering only facts and experiences that reinforce our assumptions

  • biased evaluation, the quick acceptance of evidence that supports our hypotheses, while contradictory evidence is subjected to rigorous evaluation and almost certain rejection; we often, for example, impute hostile motives to critics or question their competence

  • group-think, the pressure to agree with others in team-based cultures

Although positioned as number 8 by Mr. Roxburgh, I would almost put it on the top when referring to PLM and PLM selection processes. So often a PLM decision has not been made in an objective manner, and PLM selection paths are driven to come to the conclusion we already knew. (Or is this my confirmation bias too )

Conclusion

As scientists describe, and as Mr. Roxburgh describes our strategic thinking is influenced by the brain, and you should be aware of that. PLM is a business strategy and when rethinking your PLM strategy tomorrow, be prepared to avoid these flaws mentioned in this post today.

My last blog post was about reasons why PLM is not simple. PLM supporting a well-planned business transformation requires business change / new ways of working. PLM is going through different stages. We are moving from drawing-centric (previous century), through BOM-centric (currently) towards model-centric (current and future). You can read the post here: PLM is not simple!

I was happy to see  my blog buddy Oleg Shilovitsky chimed in on this theme, with his post: Who needs Simple PLM? Oleg reviewed the stakeholders around a PLM implementation. An analytical approach which could be correct in case predictive human beings were involved. Since human beings are not predictive and my focus is on the combination of PLM and human beings, here are some follow comments on the points Oleg made:

 

Customers (Industrial companies)

Oleg wrote:

A typical PLM customer isn’t a single user. A typical PLM buyer is engineering IT organization purchasing software to solve business problem. His interest to solve business problem, but not really to make it simple. Complex software requires more people, an increased budget and can become an additional reason to highlight IT department skills and experience. End-users hate complex software these days,therefore, usability is desired, but not top priority for enterprise PLM.

My comments on this part: PLM becomes more and more an infrastructure for product information along the whole lifecycle. PLM is no longer an engineering tool provided by IT.

There are now many other stakeholders that need product data, in particular when we are moving to a digital enterprise. A model-based approach connects Manufacturing and Service/Operations through a digital thread. It is the business demanding for PLM to manage their complexity. IT will benefit from a reduction in silo applications.

 

PLM Vendors

Oleg wrote:

…most PLM vendors are far away from a desired level of simplicity. Marketing will like “simple” messages, but if you know how to sell complex software, you won’t be much interested to see “simple package” everyone can sell. However, for the last decade, PLM vendors were criticized a lot for complexity of their solutions, so they are pretty much interested how to simplify things and present it as a competitive differentiation.

 

Here we are aligned. All PLM vendors are dreaming of simplifying their software. Imagine: if you have a simple product everyone can use, you would be the market leader and profitable like crazy without a big effort as the product is simple. Of course, this only works, assuming this dream can be realized.

Some vendors believe that easy customization or configuration of the system means simplification. Others believe a simple user-interface is the key differentiator. Compared to mass-consumer software products in the market, a PLM system is still a niche product, with a limited amount of users working with the exact same version of the software. Combined with the particular needs (customizations) every company has (“we are different”), there will never be a simple PLM solution. Coming back to the business transformation theme, human beings are the weakest link.

 

Implementation and Service Providers

Oleg wrote:

Complex software, customization, configuration, know-hows, best practices, installation… you name it.More of these things can only lead to more services which is core business of PLM service providers. PLM industry is very much competitive, but simplicity is not a desired characteristic for PLM when it comes to service business. Guess what… customer can figure it out how to make it and stop paying for services.

Here we are totally aligned. In the past, I have been involved in potential alliances where certain service providers evaluated SmarTeam as a potential tool for their business. In particular, the major PLM service providers did not see enough value in an easy to configure and relatively cheap product. Cheap means no budget for a huge amount of services.

Still, the biggest problem SmarTeam had after ten years was the fact that every implementation became a unique deployment. Hard to maintain and guarantee for the future. In particular, when new functionality was introduced which potentially already existed as customization.  Implementation and service providers will never say NO to a customer when it comes to further customization of the system. Therefore, the customer should be in charge and own the implementation. For making strategic decision support can come from a PLM consultant or coach.

 

PLM Consultants

Here Oleg wrote:

Complex software can lead to good consulting revenues. It was true many years for enterprise software. Although, most of PLM consultants are trying to distant from PLM software and sell their experience “to implement the future”, simplicity is not a favorite word in consulting language. Customer will hire consulting people to figure out the future and how to transform business, but what if software is simple enough to make it happen without consultant? Good question to ask, but most of them will tell you it is not a realistic scenario. Which is most probably true today. But here is the hint – remember the time PC technicians knew how to configured jumpers on PC cards to make printer actually print something?

Here we are not aligned. Business transformations will never happen because of simple tools. People are measured and pushed to optimize their silos in the organization. A digital transformation, which is creating a horizontal flow and transparency of information, will never happen through a tool. The organization needs to change, and this is always driven by a top-down strategy. PLM consultants are valuable to explain the potential future, to coach all levels of the organization. In theory, a PLM consultant’s job is tool independent. However, the challenge of being completely disconnected from the existing tools might allow for dreams that never can be realized. In reality, most PLM consultants are experienced in one or more specific tools they have been implementing. The customer should be aware of that and make sure they own the PLM roadmap.

My conclusion:

Don’t confuse PLM with a tool, simple or complex. All PLM tools have a common base and depending on your industry and company’s vision there will be a short list. However, before you touch the tools, understand your business and the transformation path you want to take. And that is not simple !!

 

Your opinion?

Oleg and I can continue this debate for a long time.  We would be interested in learning your view on PLM and Simplicity – please tune in through the comments section below:

simple

In my previous post, I shared my thoughts Why PLM is the forgotten domain in digital transformation. Legacy data, (legacy) people and slow organizations are the main inhibitors to moving forward. Moreover, all this legacy makes it hard to jump on the digital wagon.

When you talk with vendors and implementers of PLM solutions, they will all focus on the fact that with their solution and support PLM is simple. It is simple because:plm-vendor_thumb.jpg

  • We have the largest market share in your industry segment
  • We have the superior technology
  • We are cloud-based
  • We are insane customizable
  • Gartner is talking about us
  • We have implemented at 100+ similar companies

For my customers, implementing PLM was never simple as every PLM implementation was driving a business change. In the early days of SmarTeam, we had the theme “We work the way you work”, which is in hindsight a very bad statement. You do not want to automate the way a company is currently working. You want to use a PLM implementation to support a business change.

Never implement the past, implement the future

And there are changes ……

When I was discussing PLM with my potential customers ten years ago, the world was different. PLM was in a transition from being a PDM-tool from engineering into an extended PDM-tool centered around product development. A major theme for this kind of implementations was to move from a document-driven environment towards an item-centric environment. Instead of managing documents (CAD files and other files like Excel) the implementation was based on providing a data continuity, where the item (the physical part or in SAP terms the material) would be the main information placeholder. The continuity is implemented around EBOMs and MBOMs and thanks to automation the MBOM can be connected to the ERP system in a continuous flow.

Just search for item-centric or BOM-centric, and you will find many references from vendors and consultants for this approach.  Implementing PLM item-centric is already a big step forward in efficiency and quality for companies. However,…

Never implement the past, implement the future

And there will be changes …..

youtube

Digital Transformation & PLM on YouTube

Digital transformation is changing the way we do business and is changing the way companies should organize their data. A BOM-centric approach is no longer the ultimate implementation concept. To support a digital enterprise, the next step is a model-based enterprise. The model (not necessary the 3D-model) and its maturity and configurations are intended to be the reference for an organization. The model and its representation can connect hardware and software in a data-driven environment through the whole lifecycle. A model is needed to support smart manufacturing and the digital twin concept.There are many impressive marketing movies on YouTube explaining how companies/vendors implement digital continuity. Unfortunate the gap between marketing and reality is big at this time because moving to a model based enterprise is not an easy step. Coming back to the LEGACY-statement at the beginning of this post, it is not simple.

We all have to learn

PDT2017Digital transformation is just starting in the domain of PLM. Sharing and collecting knowledge is crucial, independent from particular solutions. For me, the upcoming PDT-conference in October is going to be a reference point where we are on this journey. In case your company has the experience to share related to this topic, please react to this link: http://pdteurope.com/call-for-abstract-now-open/

In case you want to learn and believe it is not simple, wait till the program it will be announced. The PDT conference has always been a conference where details are discussed. Looking forward and discuss with you.

Conclusion

Implementing and continuing with PLM is not simple for a company due to changes in paradigms. Digital transformation forces companies to investigate the details how to make it happen. Implementing PLM in scope of a digital transformation requires learning and time, not products first.

A month ago I attended PI Berlin 2017 and discussed how digital transformation should affect PLM. You can find the presentation here on Slideshare.  One of the conclusions of my presentation was that PLM is the forgotten domain in digital transformation, which lead to the tweet below from Nick Leeder from SKF.

PI-tweet

I am from the generation who believes answering complex issues through tweets is not a best practice. Therefore, I dedicate this post to answer Nick’s question.

Digital Transformation

OldTicket.pngA digital enterprise is the next ultimate dream after the paperless office. Where the paperless office was focusing on transforming paper-based information into electronic information, there was not a mind-shift in the way people could work. Of course, when information became available in an electronic format, you could easily centralize it and store in places accessible to many others. Centralizing and controlling electronic information is what we did in the previous century with document management, PDM, and classical PLM.  An example: your airline ticket now provided as a PDF-file – electronic, not digital.

This process is not a digital transformation

dig_ticketDigital Transformation means that information is broken down into granular information objects that can be stored in a database in the context of other information objects. As they have a status and/or relation to other information objects, in a certain combination they bring, in real-time, relevant information to a user. The big difference with electronic information is that the content does not need a person to format, translate or pre-process the data. An example: your boarding app, showing the flight, the departure time, the gate all in real-time. If there is a change, you are immediately updated.

 

Digital Transformation for an enterprise

In a digital enterprise, information needs to be available as granular information objects related to each other providing the end-to-end continuity of data. End-to-end continuity does not mean that all data is stored in a single environment. The solution can be based on digital platforms working together potentially enriched by “micro-services” to cover specific gaps the digital platforms do not deliver.

ERP platformERP systems by nature have been designed to be digital. Logistical information, financial information, part information for scheduling, etc., all is managed in database tables, to allow algorithms and calculations to take place in real-time. Documents are generated to store snapshots of information (a schedule / a report), or there are pointers to documents that should contain digital, unmanaged information, like contracts, drawings, models. Therefore, the digital transformation does not impact ERP so much.

IOTCustomer connected platforms are a typical new domain for manufacturers, as this is where the digital transformation takes place in business. Connecting either to your products in the field or connecting to your consumers in the market have been the typical business changes almost every manufacturer is implementing, thanks to IoT and thanks to global connectivity. As this part of the business is new for a company, there is no legacy to deal with and therefore exciting to present to the outside world and the management.

The problem of legacy

And here comes the problem why companies try to neglect their PLM environments. There is so much legacy data, stored in documents (electronic formats) that cannot be used in a digital PLM environment. Old PLM quality processes were about validating documents, the container of information, not about the individual information objects inside the document. And when information changes, there is no guarantee the document is going to be updated, due to economic reasons (time & resources)

IntNumber.jpgTo give an example. A year ago I wrote a post:  The Impact of Non-Intelligent Part Numbers where I explained in a digitally connected enterprise part numbers no longer need to have a meaning. As long as they are unique throughout the enterprise, automation will take care PLM, and ERP are connected. In one of the comments to this post, a reader mentioned that they were implementing now non-intelligent numbers in their company and the ERP consultant recommended to renumber all the old part numbers to have a clean start. From the ERP point of view, no issue. The consultant probably never had learned about the fact that part numbers are used in drawings, instructions, spare part manuals, which are all documents in the engineering domain. Renumbering them would be a waste of resources and money, just to have a “pure” part number. In the world of PLM, you have to deal with legacy.

The need for business transformation

Companies currently do not fully recognize that the old way of working in PLM, based on a document-driven approach, is not compatible with a modern data-driven approach. The old approach makes documents the formal decision carrier for product information. Documents are reviewed and approved and once approved stored. When information is changing, documents are most of the time not updated due to the cost of maintaining all these versions of documents in the context of the related products. Documents lock information and do not guarantee the information inside the document remains actual.

In a data-driven environment, we work in a much more granular manner, directly with the data. Working data-driven reduces the need for people in the organization to collect and transform information into documents for further communication.

GartnerWorkforce

As both approached do not match in a single business process or a single PLM system, the challenge for companies is to decide how to keep the old environment available and meanwhile introducing the new data-driven approach for PLM. Customizing this upon your old PLM environment would be a problem for the future as customizations are hard to maintain, in particular, if these are the customizations that need to support the future.

Building everything in a new environment, designed for a data-driven approach, will also be a guarantee for failure. The old data, stored in documents, does not have the granular quality a data-driven environment needs.

Combined with the fact that different people will be needed to support old or new businesses, the topic of solving PLM for the future is not an easy one.

And when things are not easy, it is hard to find the right support for changes. Management usually does not spend enough time to understand the big picture; politics come into play.

Unfortunately, it’s usually safer and better for one’s career to cut costs a little further than to try to hit the rare innovation homerun

Quote from Political Realities of PLM-Implementation Projects in Engineering.com

Conclusion

Why PLM is the forgotten domain in digital transformation is quite understandable, although it requires more than a tweet to picture the full story.  Understanding the reasons is the first step, making PLM part of the digital transformation is the main challenge – who has the energy and power to lead?

GettyImages-157335388[1]Last week I shared my observation from day 1 of the PI Berlin 2017 conference. If you have not read this review look here: The weekend after PI Berlin 2017.

Day 1 was the most significant day for me. I used the second day more for networking and some selective sessions that I wanted to attend. The advantage for the reader, this post is not as long as the previous one. Some final observations from day 2

PLM: The Foundation for Enterprise Digitalization

Peter Bilello from CIMdata gave an educational speech about digitalization and the impact of digitalization on current businesses. Peter considers digitalization as a logic next step in the PLM evolution process. See picture below.

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Although it is an evolution process, the implementation of this next step requires a revolution. Digitalization will create a disruption in companies as the digital approach will reshape business models, internal business processes, roles and responsibilities. Peter further elaborated on the product innovation platform and its required characteristics. Similar to what I presented on the first day Peter concluded that we are in a learning stage how to build new methodology/infrastructure for PLM. For example, a concept of creating and maintaining a digital twin needs a solid foundation.
His conclusion: Digitalization requires PLM:

Boosting the value of PLM through
Advanced Analytics Assessment

autolivPaul Haesman from Autoliv introduced the challenges they have as a typical automotive company. Digitalization is reshaping the competitive landscape and the demands on more technology, still guaranteeing the highest safety levels of their products. In that context, they invited Tata Technologies to analyze their current PLM implementation and from there to provide feedback about their as-is readiness for the future.

Chris Hind from Tata Technologies presented their methodology where they provide benchmark information, a health check, impact and potential roadmap for PLM. A method that is providing great insights for both parties and I encourage companies that haven´t done such an assessment to investigate in such an activity. The major value of a PLM assessment is that it provides an agreed baseline for the company that allows management to connect the Why to the What and How. Often PLM implementations focus on What and How with not a real alignment to the Why, which results in unrealistic expectations or budgets due to the perceived value.

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An interesting point address by Chris (see picture above) is that Document Management is considered as a trending priority !!!

It illustrates that digitalization in PLM has not taken off yet and companies still focusing on previous century capabilities 😦

The second highlight rating Manufacturing Process Management as the most immature PLM pillar can be considered in the same context. PLM systems are still considered engineering systems and manufacturing process management is in the gray area between PLM systems and ERP systems.

The last two bullets are clear. The roots of PLM are in managing quality and compliance and improving time to market.

Overcoming integration challenges –
Outotec´s Digital Journey

Outotec_RGBHelena Gutiérrez and Sami Grönstand explained in an entertaining manner the Outotec (providing technologies and services for the metal and mineral processing industries) company and their digital journey. Outotec has been working already for several years on simplifying their IT-landscape meanwhile trying to standardize in a modern, data-driven manner the flow of information.

Sami provided with great detail how the plant process definition is managed in PLM. The process definition is driven by the customer´s needs and largely defines the costs of a plant to build. Crucial for the quotation phase but also important if you want to create a digital continuity. Next, the process definition is further detailed with detailed steps, defining the key parameters characteristics of the main equipment.

ElephantAndAnts

And then the challenge starts. In the context of the plant structure, the right equipment needs to be selected. Here it is where plant meets product or as the Outotec team said where the elephant and ants do the tango.

In the end, as much as possible standardized products need to match the customer specific solution. The dream of most of these companies: combining Engineering To Order and Configure To Order and remember this in the context of digital continuity.

So far, a typical EPC (Engineering Procurement Construction) project, however, Outotec wants to extend the digital continuity to support also their customer´s installed plant. I remembered one of their quotes for the past: “Buy one (plant) and get two (a real one and a virtual one). “This concept managed in a digital continuity is something that will come up in many other industries – the digital twin.

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Where companies like Outotec are learning to connect all data from the initiation of their customer specific solution through delivery and services, other product manufacturing companies are researching the same digital continuity for their product offerings to the field of consumers. Thanks to digitization these concepts become more and more similar. I wrote about this topic recently in my post PLM for Owner/Operators.

Final conclusion from PI Berlin 2017

It is evident participants and speakers are talking about the strategic value and role PLM can have an organization.

With digitalization, new possibilities arise where the need and value for end-to-end connectivity pop up in every industry.

We, the PLM community, are all learning and building new concepts. Keep sharing and meeting each other in blogs, forums, and conferences.

clip_image002It is already the 6th consecutive year that MarketKey organized the Product Innovation conference with its primary roots in PLM. For me, the PI conferences have always been a checkpoint for changes and progress in the field.

This year about 100 companies participated in the event with the theme: Digital Transformation. From Hype to Value? Sessions were split into three major streams: digital transformation, extended PLM, and Business Enabled Innovation larded with general keynote speeches. I wanted to attend all sessions (and I will do virtually later through PI.TV), but in this post, my observations are from the event highlights from the extended PLM sessions.

From iCub to R1

ittGiorgio Metta gave an overview of the RobotCub project, where teams are working on developing a robot that can support human beings in our day-to-day live. Some of us are used to industrial robots and understand their constraints. A robot to interact with human beings is extreme more complex, and its development is still in the early stages. This type of robot needs to learn and interpret its environment while remaining accurate and safe for the persons interacting with the robot.

One of the interesting intermediate outcome from the project is that a human-like robot with legs and arms is far too expensive and complicated to handle. Excellent for science fiction movies, but in reality too difficult to control its balance and movements.

This was an issue with the iCUB robot. Now Giorgio and the teams are working on the new R1 robot, maybe not “as-human” as the iCUB robot, but more affordable. It is not only the mechanics that challenge the researchers. Also, the software supporting the artificial intelligence required for a self-learning and performing safe robot is still in the early days.

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An inspiring keynote speech to start the conference.

Standardizing PLM Components

The first Extended PLM session was Guido Klette (Rheinmetall), describing the challenges the Rheinmetall group has related to develop and support PLM needs. The group has several PLD/PLM-like systems in place. Guido does not believe in one size fits all to help every business in the group. They have already several PLM “monsters” in their organization. For more adequate support, Rheinmetall has defined a framework with PLM components and dependencies to a more granular choice of functionality to meet individual businesses.

Rheinmetal components

A challenge for this approach, identified by a question from the audience, is that it is a very scientific approach not addressing the difference in culture between countries. Guido agreed and mentioned that despite culture, companies joining the Rheinmetall group most of the time were happy to adhere to such a structured approach.

My takeaway: the component approach fits very well with the modern thinking that PLM should not be supported by a single “monster” system but can be addressed by components providing at the end the right business process support.

PLM as a business asset

husqvarnagroupBjörn Axling gave an excellent presentation describing the PLM perspective from the Husqvarna group. He addressed the external and internal challenges and opportunities for the group in a structured and logical approach which probably apply for most manufacturing companies in a global market. Björn explained that in the Husqvarna group PLM is considered as a business approach, more than ever, Product Lifecycle Management needs to be viewed as the DNA of a company which was the title of one of his slides.

Husqvarna

I like his eleven key imperatives (see the above picture) in particular key imperative #9 which is often forgotten:

Take definitions, nomenclature and data management very seriously – the devil is in the details.

This point will always fire back on you if you did not give it the needed attention from the start. Of course, the other ten points are also relevant. The challenge in every PLM project is to get these points addressed and understood in your company.

How to use PLM to enable Industry 4.0?

EignerMartin Eigner´s presentation was building upon his consistent messages that PDM and PLM should be evolving into SysML with a growing need for Model-Based Systems Engineering (MBSE) support.

The title of the presentation was related to Industry 4.0 more focusing on innovation in for Germany´s manufacturing industry. Germany has always been strong in manufacturing, not so strong in product innovation. Martin mentioned that later this year the German government will start another initiative, Engineering 4.0, which should be exciting for our PLM community.

Martin elaborated on the fact that end-to-end support for SysLM can be achieved through a backbone based on linked data. Do not try to solve all product information views in a single system is the lesson learned and preached.

Eigner-Bimodal

For me, it was interesting to see that also Martin picked up on the bimodal approach for PLM, required to support a transition to a modern digital enterprise (see picture). We cannot continue to build upon our old PLM environments to support, future digital businesses.

PLM and Digital Transformation

In my afternoon session (Jos Voskuil), I shared the observations that companies invest a lot in digital transformation downstream by introducing digital platforms for ERP, CRM, MES and Operations. PLM is often the forgotten platform that needs to change to support a digital enterprise with all its benefits. You can see my presentation here on SlideShare. I addressed here the bimodal approach as discussed in a previous blog post, introduced in Best Practices or Next Practices.

TacitBerlin2017Conclusions

In case your company is not ready yet for a digital transformation or bimodal approach I addressed the need to become model-driven instead of document-driven. And of course for a digital enterprise, the quality of the data counts. I wrote about these topics recently: Digital PLM requires a Model-Based Enterprise and The importance of accurate data: ACT NOW!

Closed-Loop PLM

The last extended PLM presentation from day 1 was given by Felix Nyffenegger, professor for PLM/CAx at HSR (University of Applied Science in Rapperswil (CH)). Felix shared his discovery journey into Industry 4.0, and IoT combined with experiences from the digitalLab@HSR, leading into the concept of closed-loop PLM.

ClosedLoop

I liked in particular how Felix brought the various views on the product together into one diagram, telling the full story of closed-loop PLM – necessary for a modern implementation framework.

A new age for airships

The last presentation of the day was from Chris Daniels describing the journey of Hybrid Air Vehicles with their Airlander 10 project. Where the classical airships, the most infamous perhaps the Hindenburg, have disappeared due to their flaws, the team of Hybrid Air Vehicles built upon the concept of airships in a defense project with the target to deliver a long endurance multi-intelligence vehicle. The advantage of airships is that they can stay in the air for several days, serving as communication hotspot, communication or rescue ship for places hard to reach with traditional aircraft or helicopter. The Airlander can be operation without going back to a base for 5 days, which is extremely long when you compare this to other aircraft.

airlander

The Airlander project is a typical example of incremental innovation used to optimize and extend the purpose of an airship. Combined with the fact that Chris was an excellent speaker made it a great closure of the day

Conclusion

This post is just an extract of one day and one stream of the conference. Already too large for a traditional blog post. Next week I will follow-up with day two and respond beyond 140 characters to the tweet below:

WhyNotInPLM

PLM and IPTwo terms pass me every day: Digital Transformation appears in every business discussion, and IP Security, a topic also discussed in all parts of society. We realize it is easy to steal electronic data without being detected (immediately).

What is Digital Transformation?

Digital Transformation is reshaping business processes to enable new business models, create a closer relation with the market, and react faster while reducing the inefficiencies of collecting, converting and processing analog or disconnected information.

Digital Transformation became possible thanks to the lower costs of technology and global connectivity, allowing companies, devices, and customers to interact in almost real-time when they are connected to the internet.

IOTIoT (Internet of Things) and IIoT (Industrial Internet of Things) are terms closely related to Digital Transformation. Their focus is on creating connectivity with products (systems) in the field, providing a tighter relation with the customer and enabling new (upgrade) services to gain better performance. Every manufacturing company should be exploring IoT and IIoT possibilities now.

Digital Transformation is also happening in the back office of companies. The target is to create a digital data flow inside the company and with the outside stakeholders, e.g., customers, suppliers, authorities. The benefits are mainly improved efficiency, faster response and higher quality interaction with the outside world.

digitalPLMThe part of Digital Transformation that concerns me the most is the domain of PLM. As I have stated in earlier posts (Best Practices or Next Practices ? / What is Digital PLM ?), the need is to replace the classical document-driven product to market approach by a modern data-driven interaction of products and services.

I am continually surprised that companies with an excellent Digital Transformation profile on their websites have no clue about Digital Transformation in their product innovation domain. Marketing is faster than reality.

PIBerlin2017-1I am happy to discuss this topic with many of my peers in the product innovation world @ PI Berlin 2017, three weeks from now. I am eagerly looking to look at how and why companies do not embrace the Digital Transformation sooner and faster. The theme of the conference, “Digital Transformation: From Hype to Value “ says it all. You can find the program here, and I will report about this conference the weekend after.

IP Security

The topic of IP protection has always been high on the agenda of manufacturing companies. Digital Transformation brings new challenges. Digital information will be stored somewhere on a server and probably through firewalls connected to the internet. Some industries have high-security policies, with separate networks for their operational environments. Still, many large enterprises are currently struggling with IP security policies as sharing data while protecting IP between various systems creates a lot of administration per system.

dropboxCloud solutions for sharing data are still a huge security risk. Where is the data stored and who else have access to it? Dropbox came in the news recently as “deleted” data came back after five years, “due to a bug.” Cloud data sharing cannot be trusted for real sensitive information.

Cloud providers always claim that their solutions are safer due to their strict safety procedures compared to the improvident behavior of employees. And, this is true. For example, a company I worked with had implemented Digital Rights Management (DRM) for internal sharing of their IP, making sure that users could only read information on the screen, and not store it locally if they had an issue with the server. “No problem”, one of the employees said, “I have here a copy of the documents on my USB-drive.

lockedCloud-based PLM systems are supposed to be safer. However, it still matters where the data is stored; security and hacking policies of countries vary. Assume your company´s IP is safe for hacking. Then the next question is “How about ownership of your data?”

Vendor lock-in and ownership of data are topics that always comes back at the PDT conferences (see my post on PDT2016). When a PLM cloud provider stores your product data in a proprietary data format, you will always be forced to have a costly data migration project when you decide to change from the provider.

Why not use standards for data storage? Hakan Kårdén triggered me on this topic again with his recent post: Data Is The New Oil So Make Sure You Ask For The Right Quality.

 

Conclusion:

Digital Transformation is happening everywhere but not always with the same pace and focus. New PLM practices still need to be implemented on a larger scale to become best practices. Digital information in the context of Intellectual Property creates extra challenges to be solved. Cloud providers do not offer yet solutions that are safe and avoiding vendor lock-in.

Be aware. To be continued…

Many thanks (again) to Dick Bourke for his editing suggestions

PLM can be swinging and inspiring although there will be times of frustration and stress when implementing. These seven musical views will help you to make it through the project.

 

One Vision

Every business change should start with a vision and a strategy. Defining the vision and keeping the vision alive is the responsibility of senior management. When it comes to PLM, the vision is crucial.

 

No more heroes

Of course, when implementing PLM, the target is to streamline the organization’s processes, eliminate bottlenecks and reduce dependencies on individuals. No more need for firefighters or other heroes because they fix or solve issues that appear due to the lack of processes and clarity.

 

Let´s do it together

PLM implementations are not IT-projects, where you install, configure and roll out an infrastructure based on one or more systems. Like a music band, it should be a well-orchestrated project between business experts and IT. Here´s a song to make your project swing.

 

Say NO at the right time

When implementing PLM, the software geeks can do everything for you: Customize the system, create a complete new environment looking like the old environment, and more. Of course, you will pay for it. Not only for the extra services, but also in the long-term to support all these customizations. Always try to find a balance between the standard functionality and infrastructure of the PLM system and the company´s vision. This means there are times you must Say NO to your users. Maybe not always as funny as these guys say it.

 

Eight days a week

During the PLM implementation and for sure after one of the several rollouts, changes may appear. And, normal work still needs to be done, sometimes in a different way. There will never be enough time to do everything perfect and fast, and it feels like you need more days in the week. When you are stressed, swing with these guys.

 

We are the champions

Then when the PLM project has been implemented successfully, there is a feeling of relief. It has been a tough time for the company and the PLM team. This should be the moment for the management to get everyone together in the stadium as an important change for the company´s future has been realized. Sing all together.

 

… But the times they are a-changing

Although a moment of relief is deserved, PLM implementations never end. The current infrastructure could be improved continuously due to better business understanding. However, globalization and digitalization will create new business challenges and opportunities at an extraordinarily fast pace. So, be aware and sing along with Bob.

 

BONUS

Time to close the 2016 book and look forward to next year’s activities. I wish all my readers happy holidays and a healthy, successful new year with a lot of dialogue, and no more one-liners.

 

See you in 2017 !!!!

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