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I am sharing another follow-up interview about PLM and Sustainability with a software vendor or implementer. Last year, in November 2023, Klaus Brettschneider and Jos Voskuil from the PLM Green Global Alliance core team spoke with Transition Technologies PSC about their GreenPLM offering and their first experiences in the field.
As we noticed with most first interviews, sustainability was a topic of discussion in the PLM domain, but it was still in the early discovery phases for all of us.
Last week, we spoke again with Erik Rieger and Rafał Witkowski, both working for Transition Technologies PSC, a global IT solution integrator in the PLM world known for their PTC implementation services. The exciting part of this discussion is that system integrators are usually more directly connected to their customers in the field and, therefore, can be the source of understanding of what is happening.
ecoPLM and more
Where Erik is a and he is a long term PLM expert and Rafal is the PLM Practice Lead for Industrial Sustainability. In the interview below they shared their experiences with a first implementation pilot in the field, the value of their _ecoPLM offering in the context of the broader PTC portfolio. And of course we discussed topics closely related to these points and put them into a broader context of sustainably.
Enjoy the 34 minutes discussion and you are always welcome to comment or start a discussion with us.
The slides shown in this presentation and some more can be downloaded HERE.
What I learned
- The GreenPLM offering has changed its name into ecoPLM as TT PSC customers are focusing on developing sustainable products, with currently supporting designer to understand the carbon footprint of their products.
- They are actually in a MVP approach with a Tier 1 automotive supplier to validate and improve their solution and more customers are adding Design for Sustainability to their objective, besides Time to Market, Quality and Cost.
- Erik will provide a keynote speech at the Green PLM conference on November 14th in Berlin – The conference is targeting a German speaking audience although the papers are in English. You can still register and find more info here
- TT PSC is one of the partners completing the PTC sustainability offering and working close with their product management.
- A customer quote: “Sustainability makes PLM sexy again”
Want to learn more?
Here are some links related to the topics discussed in our meeting:
- YouTube: ecoPLM: your roadmap for eco-friendly product development
- ecoPLM – a sustainable product development website
- YouTube: Win the Net-Zero Race with PLM (and PTC)
Conclusions
We are making great progress in the support to design and deliver more sustainable products – sustainability goes beyond marketing as Rafal Witkowski mentioned – the journey has started. What do you see in your company?
Next week – week 46 – more news from Day 2 from the #plmroadmappdt conference
Recently, I attended several events related to the various aspects of product lifecycle management; most of them were tool-centric, explaining the benefits and values of their products.
In parallel, I am working with several companies, assisting their PLM teams to make their plans understood by the upper management, which has always been my mission in the past.
However, nowadays, people working in the business are feeling more and more challenged and pained by not acting adequately to the upcoming business demands.
The image below has been shown so many times, and every time, the context becomes more relevant.
Too often, an evolutionary mindset with small steps is considered instead of looking toward the future and reasoning back for what needs to be done.
Let me share some experiences and potential solutions.
Don’t use the P** word!
The title of this post is one of the most essential points to consider. By using the term PLM, the discussion is most of the time framed in a debate related to the purchase or installation of a system, the PLM system, which is an engineering tool.
PLM vendors, like Dassault Systèmes and Siemens, have recognized this, and the word PLM is no longer on their home pages.
They are now delivering experiences or digital industries software.
Other companies, such as PTC and Aras, broadened the discussion by naming other domains, such as manufacturing and services, all connected through a digital thread.
The challenge for all these software vendors is why a company would consider buying their products. A growing issue for them is also why would they like to change their existing PLM system to another one, as there is so much legacy.
For all of these vendors, success can come if champions inside the targeted company understand the technology and can translate its needs into their daily work.
Here, we meet the internal PLM team, which is motivated by the technology and wants to spread the message to the organization. Often, with no or limited success, as the value and the context they are considering are not understood or felt as urgent.
Lesson 1:
Don’t use the word PLM in your management messaging.
In some of the current projects I have seen, people talk about the digital highway or a digital infrastructure to take this hurdle. For example, listen to the SharePLM podcast with Roger Kabo from Marel, who talks about their vision and digital product highway.
The Marel digital product highway
As soon as you use the word PLM, most people think about a (costly) system, as this is how PLM is framed. Engineering, like IT, is often considered a cost center, as money is made by manufacturing and selling products.
According to experts (CIMdata/Gartner), Product Lifecycle Management is considered a strategic approach. However, the majority of people talk about a PLM system. Of course, vendors and system integrators will speak about their PLM offerings.
To avoid this framing, first of all, try to explain what you want to establish for the business. The terms Digital Product Highway or Digital Infrastructure, for example, avoid thinking in systems.
Lesson 2:
Don’t tell your management why they need to reward your project – they should tell you what they need.
This might seem like a bit of strange advice; however, you have to realize that most of the time, people do not talk about the details at the management level. At the management level, there are strategies and business objectives, and you will only get attention when your proposal addresses the business needs. At the management level, there should be an understanding of the business need and its potential value for the organization. Next, analyzing the business changes and required tools will lead to an understanding of what value the PLM team can bring.
Yousef Hooshmand’s 5 + 1 approach illustrates this perfectly. It is crucial to note that long-term executive commitment is needed to have a serious project, and therefore, the connection to their business objective is vital.
Therefore, if you can connect your project to the business objectives of someone in management, you have the opportunity to get executive sponsorship. A crucial advice you hear all the time when discussing successful PLM projects.
Lesson 3:
Alignment must come from within the organization.
Last week, at the 20th anniversary of the Dutch PLM platform, Yousef Hooshmand gave the keynote speech starting with the images below:
On the left side, we see the medieval Catholic church sincerely selling salvation through indulgences, where the legend says Luther bought the hell, demonstrating salvation comes from inside, not from external activities – read the legend here.
On the right side, we see the Digital Transformation expert sincerely selling digital transformation to companies. According to LinkedIn, there are about 1.170.000 people with the term Digital Transformation in their profile.
As Yousef mentioned, the intentions of these people can be sincere, but also, here, the transformation must come from inside (the company).
When I work with companies, I use the Benefits Dependency Network methodology to create a storyboard for the company. The BDN network then serves as a base for creating storylines that help people in the organization have a connected view starting from their perspective.
Companies might hire strategic consultancy firms to help them formulate their long-term strategy. This can be very helpful where, in the best case, the consultancy firm educates the company, but the company should decide on the direction.
In an older blog post, I wrote about this methodology, presented by Johannes Storvik at the Technia Innovation forum, and how it defines a value-driven implementation.
Dassault Systèmes and its partners use this methodology in their Value Engagement process, which is tuned to their solution portfolio.
You can also watch the webinar Federated PLM Webinar 5 – The Business Case for the Federated PLM, in which I explained the methodology used.
Lesson 4:
PLM is a business need not an IT service
This lesson is essential for those who believe that PLM is still a system or an IT service. In some companies, I have seen that the (understaffed) PLM team is part of a larger IT organization. In this type of organization, the PLM team, as part of IT, is purely considered a cost center that is available to support the demand from the business.
The business usually focuses on incremental and economic profitability, less on transformational ways of working.
In this context, it is relevant to read Chris Seiler’s post: How to escape the vicious circle in times of transformation? Where he reflects on his 2002 MBA study, which is still valid for many big corporate organizations.
It is a long read, but it is gratifying if you are interested. It shows that PLM concepts should be discussed and executed at the business level. Of course, I read the article with my PLM-twisted brain.
A Pessimistic Scenario of External Driving Forces and Their Internal Interrelations (Christ Seiler)
The image above from Chris’s post could be a starting point for a Benefits-Dependent Network diagram, expanded with Objectives, Business Changes and Benefits to fight this vicious downturn.
As PLM is no longer a system but a business strategy, the PLM team should be integrated into the business potential overlooked by the CIO or CDO, as a CEO is usually not able to give this long-term executive commitment.
Lesson 5:
Educate yourselves and your management
The last lesson is crucial, as due to improving technologies like AI and, earlier, the concepts of the digital twin, traditional ways of coordinated working will become inefficient and redundant.
However, before jumping on these new technologies, everyone, at every level in the organization, should be aware of:
WHY will this be relevant for our business? Is it to cut costs – being more efficient as fewer humans are in the process? Is it to be able to comply with new upcoming (sustainability) regulations? Is it because the aging workforce leaves a knowledge gap?
WHAT will our business need in the next 5 to 10 years? Are there new ways of working that we want to introduce, but we lack the technology and the tools? Do we have skills in-house? Remember, digital transformation must come from the inside.
HOW are we going to adapt our business? Can we do it in a learning mode, as the end target is not clear yet—the MVP (Minimum Viable Product) approach? Are we moving from selling products to providing a Product Service System?
My lesson: Get inspired by the software vendors who will show you what might be possible. Get educated on the topic and understand what it would mean for your organization. Start from the people and the business needs before jumping on the tools.
In the upcoming PLM Roadmap/PDT Europe conference on 23-24 October, we will be meeting again with a group of P** experts to discuss our experiences and progress in this domain. I will give a lecture here about what it takes to move to a sustainable economy based on a Product-as-a-service concept.
If you want to learn more – join us – here is the link to the agenda.
Conclusion
I hope you enjoyed reading a blog post not generated by ChatGPT, although I am using bullet points. With the overflow of information, it remains crucial to keep a holistic overview. I hope that with this post, I have helped the P** teams in their mission, and I look forward to learning from your experiences in this domain.
I have not been writing much new content recently as I feel that from the conceptual side, so much has already been said and written. A way to confuse people is to overload them with information. We see it in our daily lives and our PLM domain.
With so much information, people become apathetic, and you will hear only the loudest and most straightforward solutions.
One desire may be that we should go back to the past when everything was easier to understand—are you sure about that?
This attitude has often led to companies doing nothing, not taking any risks, and just providing plasters and stitches when things become painful. Strategic decision-making is the key to avoiding this trap.
I just read this article in the Guardian: The German problem? It is an analog country in a digital world.
The article also describes the lessons learned from the UK (quote):
Britain was the dominant economic power in the 19th century on the back of the technologies of the first Industrial Revolution and found it hard to break with the old ways even when it should have been obvious that its coal and textile industries were in long-term decline.
As a result, Britain lagged behind its competitors. One of these was Germany, which excelled in advanced manufacturing and precision engineering.
Many technology concepts originated from Germany in the past and even now we are talking about Industrie 4.0 and Catena-X as advanced concepts. But are they implemented? Did companies change their culture and ways of working required for a connected and digital enterprise?
Technology is not the issue.
The current PLM concepts, which discuss a federated PLM infrastructure based on connected data, have become increasingly stable.
Perhaps people are using different terminologies and focusing on specific aspects of a business; however, all these (technical) discussions talk about similar business concepts:
- Prof. Dr. Jorg W. Fischer, managing partner at Steinbeis – Reshape Information Management (STZ-RIM), writes a lot about a modern data-driven infrastructure, mainly in the context of PLM and ERP. His recent article: The Freeway from PLM to ERP.
- Oleg Shilovitsky, CEO of OpenBOM, has a never-ending flow of information about data and infrastructure concepts and an understandable focus on BOMs. One of his recent articles, PLM 2030: Challenges and Opportunities of Data Lifecycle Management
- Matthias Ahrens, enterprise architect at Forvia / Hella, often shares interesting concepts related to enterprise architecture relevant to PLM. His latest share: Think PLM beyond a chain of tools!
- Dr. Yousef Hooshmand, PLM lead at NIO, shared his academic white paper and experiences at Daimler and NIO through various presentations. His publication can be found here: From a Monolithic PLM Landscape to a Federated Domain and Data Mesh.
- Erik Herzog, technical fellow at SAAB Aeronautics, has been active for the past two years, sharing the concept of federated PLM applied in the Heliple project. His latest publication post: Heliple Federated PLM at the INCOSE International Symposium in Dublin
Several more people are sharing their knowledge and experience in the domain of modern PLM concepts, and you will see that technology is not the issue. The hype of AI may become an issue.
From IT focus to Business focus
One issue I observed at several companies I worked with is that the PLM’s responsibility is inside the IT organization – click on the image to get the mindset.
This situation is a historical one, as in the traditional PLM mode, the focus was on the on-premise installation and maintenance of a PLM system. Topics like stability, performance and security are typical IT topics.
IT departments have often been considered cost centers, and their primary purpose is to keep costs low.
Does the slogan ONE CAD, ONE PLM or ONE ERP resonate in your company?
It is all a result of trying to standardize a company’s tools. It is not deficient in a coordinated enterprise where information is exchanged in documents and BOMs. Although I wrote in 2011 about the tension between business and IT in my post “PLM and IT—love/hate relation?”
Now, modern PLM is about a connected infrastructure where accurate data is the #1 priority.
Most of the new processes will be implemented in value streams, where the data is created in SaaS solutions running in the cloud. In such environments, business should be leading, and of course, where needed, IT should support the overall architecture concepts.
In this context, I recommend an older but still valid article: The Changing Role of IT: From Gatekeeper to Business Partner.
This changing role for IT should come in parallel to the changing role for the PLM team. The PLM team needs to first focus on enabling the new types of businesses and value streams, not on features and capabilities. This change in focus means they become part of the value creation teams instead of a cost center.
From successful PLM implementations, I have seen that the team directly reported to the CEO, CTO or CIO, no longer as a subdivision of the larger IT organization.
Where is your PLM team?
Is it a cost center or a value-creation engine?
The role of business leaders
As mentioned before, with a PLM team reporting to the business, communication should transition from discussing technology and capabilities to focusing on business value.
I recently wrote about this need for a change in attitude in my post: PLM business first. The recommended flow is nicely represented in the section “Starting from the business.”
Image: Yousef Hooshmand.
Business leaders must realize that a change is needed due to upcoming regulations, like ESG and CSRD reporting, the Digital Product Passport and the need for product Life Cycle Analysis (LCA), which is more than just a change of tools.
I have often referred to the diagram created by Mark Halpern from Gartner in 2015. Below you can see and adjusted diagram for 2024 including AI.
It looks like we are moving from Coordinated technology toward Connected technology. This seems easy to frame. However, my experience discussing this step in the past four to five years has led to the following four lessons learned:
- It is not a transition from Coordinated to Connected.
At this step, a company has to start in a hybrid mode – there will always remain Coordinated ways of working connected to Connected ways of working. This is the current discussion related to Federated PLM and the introduction of the terms System of Record (traditional systems / supporting linear ways of working) and Systems of Engagement (connected environments targeting real-time collaboration in their value chain) - It is not a matter of buying or deploying new tools.
Digital transformation is a change in ways of working and the skills needed. In traditional environments, where people work in a coordinated approach, they can work in their discipline and deliver when needed. People working in the connected approach have different skills. They work data-driven in a multidisciplinary mode. These ways of working require modern skills. Companies that are investing in new tools often hesitate to change their organization, which leads to frustration and failure. - There is no blueprint for your company.
Digital transformation in a company is a learning process, and therefore, the idea of a digital transformation project is a utopia. It will be a learning journey where you have to start small with a Minimum Viable Product approach. Proof of Concepts is a waste of time as they do not commit to implementing the solution. - The time is now!
The role of management is to secure the company’s future, which means having a long-term vision. And as it is a learning journey, the time is now to invest and learn using connected technology to be connected to coordinated technology. Can you avoid waiting to learn?
I have shared the image below several times as it is one of the best blueprints for describing the needed business transition. It originates from a McKinsey article that does not explicitly refer to PLM, again demonstrating it is first about a business strategy.
It is up to the management to master this process and apply it to their business in a timely manner. If not, the company and all its employees will be at risk for a sustainable business. Here, the word Sustainable has a double meaning – for the company and its employees/shareholders and the outside world – the planet.
Want to learn and discuss more?
Currently, I am preparing my session for the upcoming PLM Roadmap/PDT Europe conference on 23 and 24 October in Gothenburg. As I mentioned in previous years, this conference is my preferred event of the year as it is vendor-independent, and all participants are active in the various phases of a PLM implementation.
If you want to attend the conference, look here for the agenda and registration. I look forward to discussing modern PLM and its relation to sustainability with you. More in my upcoming posts till the conference.
Conclusion
Digital transformation in the PLM domain is going slow in many companies as it is complex. It is not an easy next step, as companies have to deal with different types of processes and skills. Therefore, a different organizational structure is needed. A decision to start with a different business structure always begins at the management level, driven by business goals. The technology is there—waiting for the business to lead.
In recent years, I have assisted several companies in defining their PLM strategy. The good news is that these companies are talking first about a PLM strategy and not immediately about a PLM system selection.
In addition, a PLM strategy should not be defined in isolation but rather as an integral part of a broader business strategy. One of my favorite one-liners is:
“Are we implementing the past, or are we implementing the future?”
When companies implement the past, it feels like they modernize their current ways of working with new technology and capabilities. The new environment is more straightforward to explain to everybody in the company, and even the topic of migration can be addressed as migration might be manageable.
Note: Migration should always be considered – the elephant in the room.
I wrote about Migration Migraine in two posts earlier this year, one describing the basics and the second describing the lessons learned and the path to a digital future.
Implementing PLM now should be part of your business strategy.
Threats coming from different types of competitors, necessary sustainability-related regulations (e.g., CSRD reporting), and, on the positive side, new opportunities are coming (e.g., Product as a Service), all requiring your company to be adaptable to changes in products, services and even business models.
Suppose your company wants to benefit from concepts like the Digital Twin and AI. In that case, it needs a data-driven infrastructure—
Digital Twins do not run on documents, and algorithms need reliable data.
Digital Transformation in the PLM domain means combining Coordinated and Connected working methods. In other words, you need to build an infrastructure based on Systems of Record and Systems of Engagement. Followers of my blog should be familiar with these terms.
PLM is not an R&D and Engineering solution
(any more)
One of the biggest misconceptions still made is that PLM is implemented by a single system mainly used by R&D and Engineering. These disciplines are considered the traditional creators of product data—a logical assumption at the time when PLM was more of a silo, Managing Projects with CAD and BOM data.
However, this misconception frames many discussions towards discussions about what is the best system for my discipline, more or less strengthening the silos in an organization. Being able to break the silos is one of the technical capabilities digitization brings.
Business and IT architecture are closely related. Perhaps you have heard about Conway’s law (from 1967):
“Any organization that designs a system (defined broadly) will produce a design whose structure is a copy of the organization’s communication structure.”
This means that if you plan to implement or improve a PLM infrastructure without considering an organizational change, you will be locked again into your traditional ways of working – the coordinated approach, which is reflected on the left side of the image (click on it to enlarge it).
An organizational change impacts middle management, a significant category we often neglect. There is the C-level vision and the voice of the end user. Middle management has to connect them and still feel their jobs are not at risk. I wrote about it some years ago: The Middle Management Dilemma.
How do we adapt the business?
The biggest challenge of a business transformation is that it starts with the WHY and should be understood and supported at all organizational levels.
If there is no clear vision for change but a continuous push to be more efficient, your company is at risk!
For over 60 years, companies have been used to working in a coordinated approach, from paper-based to electronic deliverables.
- How do you motivate your organization to move in a relatively unknown direction?
- Who in your organization are the people who can build a digital vision and Strategy?
These two questions are fundamental, and you cannot outsource ownership of it.
People in the transformation teams need to be digitally skilled (not geeks), communicators (storytellers), and, very importantly, connected to the business.
Often, the candidates come from the existing business units where they have proven skills. The challenging part is educating them and making them available for this mission.
Digital transformation is not a side job.
Education can come from the outside world. Making people available to work on the new digital infrastructure is a management decision and their sense of priority.
How to get external support?
If you are connected to the PLM world like me, a lot of information is available. In academic papers, projects and in particular on LinkedIn currently, there is an overflow of architectural debates:
Recently, I participated in the discussions below:
- How to Solve PLM & ERP (Oleg Shilovitsky)
- Last week, we finally solved PLM & ERP (Prof. Dr. Jörg W. Fischer / Martin Eigner)
- PLM and MBOM: Supply Chain Debates and Future Solution Architecture (Oleg Shilovitsky)
- Could be a Knowledge Graph resp. the Linked Data technologies the key to …. (Matthias Ahrens)
The challenge with these articles is that they are for insiders and far from shareable with business people. There is always a discussion, as we are all learning to match theory with reality. For example,Prof. Dr. Jörg W. Fischer introduced the Information Architecture as a missing link. You can read his recent post here and the quote below to get interested:
All of these methods focus either on Data Architecture or Business Architecture. And the blind spot? I am convinced that an essential layer between the two is missing. We at STZ-RIM Reshape Information Management call this Information Architecture.
Still, we remain in the expert domain, which a limited group of people understands. We need to connect to the business. Where can we find more education from the business side?
The reaction below in one of the discussions says it all, in my opinion:
Starting from the business
What I have learned from my discussions with the management is:
- Don’t mention PLM – you will be cornered in the R&D / Engineering frame.
- Don’t explain their problems, and tell them that you have the solution (on PowerPoint)
- Create curiosity about topics that are relevant to the business – What if …?
- Use storytelling to imagine a future state – Spare the details.
- Build trust and confidence that you are not selling a product. Let the company discover their needs as it is their transformation.
The diagram below, presented by Yousef Hooshmand during the PLM Roadmap/PDT Europe 2023 conference in Paris, describes it all:
It will be a continuous iterative process where, starting from business values and objectives, an implementation step is analyzed, how it fits in the PLM landscape and ultimately, how measures and actions guide the implementation of the tools and technology.
It is important to stress that this is not the guidance for a system implementation; it is the guidance for a digital transformation journey. Therefore, the message in the middle of the image is: Long-term Executive Commitment!
In addition, I want to point to articles and blogs written by Jan Bosch. Jan is an Executive, professor and consultant with more than 20 years of experience in large-scale software R&D management and business.
Although our worlds do not intersect yet, the management of mechanical products and software is different; his principles fit better and better with a modern data-driven organization. Often, I feel we are fighting the same battle to coach companies in their business transformation.
In the context of this article, I recommend reviewing the BAPO model coming from the software world.
BAPO stands for Business, Architecture, Process and Organization. As the diagram below indicates, you should start from the business, defining the needs for the architecture and then the preferred ways of working. Finally, the organization has to be established in accordance with the processes.
Often, companies use the OPAB approach, which makes them feel more comfortable (Conway’s Law). For further reading in this context, I recommend the following posts from Jan Bosch:
Business and technology
I want to conclude by discussing ways to connect business and technology as you need both.
First, I want to point to an example that we presented in the Federated PLM interest group on LinkedIn. Although the discussion initially focused on technical capabilities, we concluded by connecting them to business transformational needs. The diagram below is our characteristic image used to explain the interaction between Systems of Record (the vertical pillars) and the Systems of Engagement (the horizontal bars – modularity).
Have a look at the business discussion below:
Next, the diagram below comes from a 2017 McKinsey whitepaper: Toward an integrated technology operating model. Here, the authors describe how a company can move toward an integrated technology operating model using both coordinated and connected technologies.
They do not mention PLM; they have a business focus, and it is important to mention a company can work in different modes. This is an organizational choice, but don’t let people work in two modes,
Conclusion
With this post, I hope I moved the focus from technology and tools to an understandable business focus. Even within my 1500 words, there is much more to say, and this makes our (PLM) mission so complex and interesting. Let me know where you can connect.
We, the PLM Green Global Alliance, started our first interviews with PLM-related software vendors two years ago in 2022 with SAP, and recently, we revisited them for a much broader interview.
The initial interview in 2022 focused on companies getting pushed by legislation related to plastic packaging and how they could collect and analyze their product data.
Now, two years later, we discussed a much broader scope, including the Circular Economy and even Circular Manufacturing in the automotive industry. You can read and listen to this interview following this link: The PGGA talking again with SAP on Sustainability.
However, as it is claimed that almost eighty percent of the environmental impact of a product is defined and decided during its design phase, we were eager to learn from the primary PLM vendors what they have observed.
PTC
We were fortunate to talk again with Dave Duncan, VP Sustainability at PTC, who had just returned from a three-month tour in Europe, talking with 200 manufacturers in 21 different locations and having deep discussions to understand the market and their customer’s needs.
You could follow his movements through Europe on LinkedIn and his posting from the Munich workshop was fascinating. Besides meeting customers, there were also PTC partners like MakerSite, aPriori, and Transition Technologies PSC. All three companies have recently contributed to our PGGA series related to Sustainability.
Together with Dave, we spoke again with James Norman, who is responsible for driving PTC’s solutions and strategy for the digital and Sustainability transformation. He helped us make the connection between what’s happening in the field and what PTC is considering.
When listening to the interview, you will observe that in the PLM domain, so much has changed in the past two years.
Enjoy the 36 minutes of the interview and listen to what Dave has learned from the field, as reflected by James, on how PTC is addressing Sustainability.
Slides shown during the interview combined with additional company information can be found HERE.
What we have learned
- The Corporate Sustainability Reporting Directive (CSRD) has forced companies to address Sustainability and the need for the digitalization of their processes (the digital thread)
- For Sustainability impact, do not focus just on the component properties; identify hot-spots when analyzing analyzing the impact of the product on the product level.
- As the OEM often only assembles the final product, the environmental impact is defined upstream in the supply chain.
- Modularity and Systems Thinking are crucial methodologies for implementing a Circular Economy.
- If you only consider the cradle-to-gate part of a product’s lifecycle, you might miss the big picture entirely. Even worse, you might implement design changes in the name of sustainability that result in outcomes far less sustainable than the original design. It’s crucial to look at the entire Product Service System/lifecycle to truly understand a product’s environmental impact
- We did not talk about Digital Twins and AI this time. Implementing a connected Digital Thread is, at this moment, the highest priority.
Want to learn more?
- There is the PTC Impact Report
- Dave Duncan’s article: Join PTC on Our Sustainability Journey
- A customer story: How Cummins Prioritizes Sustainability for New Product Designs
Conclusion
I enjoyed the dialogue with Dave and James and the progress we all have made towards understanding what is needed to ensure a sustainable future for our planet. So much has changed in two years.
PLM plays a crucial role in the discussion of a circular economy, the need for modularity, and sustainability reporting. All of these elements require a digital infrastructure related to the products we manufacture or use.
In addition, I was impressed by Dave’s pragmatic approach, who was in the hot spots of European manufacturing companies to understand their needs instead of telling them about their should-be dreams.
Two weeks ago, I shared my first post about PDM/PLM migration challenges on LinkedIn: How to avoid Migration Migraine – part 1. Most of the content discussed was about data migrations.
Starting from moving data stored in relational databases to modern object-oriented environments – the technology upgrade. But also the challenges a company can have when merging different data siloes (CAD & BOM related) into a single PLM backbone to extend the support of product data beyond engineering.
Luckily, the post generated a lot of reactions and feedback through LinkedIn and personal interactions last week.
The amount of interaction illustrated the relevance of the topic for people; they recognized the elephant in the room, too.
Working with a partner
Data migrations and consolidation are typically not part of a company’s core business, so it is crucial to find the right partner for a migration project. The challenge with migrations is that there is potentially a lot to do technically, but only your staff can assess the quality and value of migrations.
Therefore, when planning a migration, make sure you work on it iteratively with an experienced partner who can provide a set of tools and best practices. Often, vendors or service partners have migration tools that still need to be tuned to your As-Is and To-Be environment.
To get an impression of what a PLM service partner can do and which topics or tools are relevant in the context of mid-market PLM, you can watch this xLM webinar on YouTube. So make sure you select a partner who is familiar with your PDM/PLM infrastructure and who has the experience to assess complexity.
Migration lessons learned
In my PLM coaching career I have seen many migrations. In the early days they were more related to technology upgrades, consolidation of data and system replacements. Nowadays the challenges are more related to become more data-driven. Here are 5 lessons that I learned in the past twenty years:
- A fixed price for the migration can be a significant risk as the quality of the data and the result are hard to comprehend upfront. In case of a fixed price, either you would pay for the moon (taking all the risk), or your service partner would lose a lot of money. In a sustainable business model, there should be no losers.
- Start (even now) with checking and fixing your data quality. For example, when you are aware of a mismatch between CAD assemblies and BOM data, analyze and fix discrepancies even before the migration.
- One immediate action to take when moving from CAD assemblies to BOM structures is to check or fill the properties in the CAD system to support a smooth transition. Filling properties might be a temporary action, as later, when becoming more data-driven, some of these properties, e.g., material properties or manufacturer part numbers, should not be maintained in the CAD system anymore. However, they might help migration tools to extract a richer dataset.
- Focus on implementing an environment ready for the future. Don’t let your past data quality compromise complexity. In such a case, learn to live with legacy issues that will be fixed only when needed. A 100 % matching migration is not likely to happen because the source data might also be incorrect, even after further analysis.
- The product should probably not be configured in the CAD environment, even because the CAD tool allows it. I had this experience with SolidWorks in the past. PDM became the enemy because the users managed all configuration options in the assembly files, making it hard to use it on the BOM or Product level (the connected digital thread).
The future is data-driven
In addition, these migration discussions made me aware again that so many companies are still in the early phases of creating a unified PLM infrastructure in their company and implementing the coordinated approach – an observation I shared in my report on the PDSFORUM 2024 conference.
Due to sustainability-related regulations and the need to understand product behavior in the field (Digital Twin / Product As A Service), becoming data-driven is an unavoidable target in the near future. Implementing a connected digital thread is crucial to remaining competitive and sustainable in business.
However, the first step is to gain insights about the available data (formats and systems) and its quality. Therefore, implementing a coordinated PLM backbone should immediately contain activities to improve data quality and implement a data governance policy to avoid upcoming migration issues.
Data-driven environments, the Systems of Engagement, bring the most value when connected through a digital thread with the Systems of Record (PLM. ERP and others), therefore, design your processes, even current ones, user-centric, data-centric and build for change (see Yousef Hooshmand‘s story in this post – also image below).
The data-driven Future is not a migration.
The last part of this article will focus on what I believe is a future PLM architecture for companies. To be more precise, it is not only a PLM architecture anymore. It should become a business architecture based on connected platforms (the systems of record) and inter-platform connected value streams (the systems of engagement).
The discussion is ongoing, and from the technical and business side, I recommend reading Prof Dr. Jorg Fischer’s recent articles, for example. The Crisis of Digitalization – Why We All Must Change Our Mindset! or The MBOM is the Steering Wheel of the Digital Supply Chain! A lot of academic work has been done in the context of TeamCenter and SAP.
Also, Martin Eigner recently described in The Constant Conflict Between PLM and ERP a potential digital future of enterprise within the constraints of existing legacy systems.
In my terminology, they are describing a hybrid enterprise dominated by major Systems of Record complemented by Systems of Engagement to support optimized digital value streams.
Whereas Oleg Shilovitsky, coming from the System of Engagement side with OpenBOM, describes the potential technologies to build a digital enterprise as you can read from one of his recent posts: How to Unlock the Future of Manufacturing by Opening PLM/ERP to Connect Processes and Optimize Decision Support.
All three thought leaders talk about the potential of connected aspects in a future enterprise. For those interested in the details there is a lot to learn and understand.
For the sake of the migration story I stay out of the details. However interesting to mention, they also do not mention data migration—is it the elephant in the room?
I believe moving from a coordinated enterprise to a integrated (coordinated and connected) enterprise is not a migration, as we are no longer talking about a single system that serves the whole enterprise.
The future of a digital enterprise is a federated environment where existing systems need to become more data-driven, and additional collaboration environments will have their internally connected capabilities to support value streams.
With this in mind you can understand the 2017 McKinsey article– Our insights/toward an integrated technology operating model – the leading image below:
And when it comes to realization of such a concept, I have described the Heliple-2 project a few times before as an example of such an environment, where the target is to have a connection between the two layers through standardized interfaces, starting from OSLC. Or visit the Heliple Federated PLM LinkedIn group.
Data architecture and governance are crucial.
The image above generalizes the federated PLM concept and illustrates the two different systems connected through data bridges. As data must flow between the two sides without human intervention, the chosen architecture must be well-defined.
Here, I want to use a famous quote from Youssef Housmand’s paper From a Monolithic PLM Landscape to a Federated Domain and Data Mesh. Click on the image to listen to the Share PLM podcast with Yousef.
From a Single Source of Truth towards a principle of the Nearest Source of Truth based on a Single Source of Change
- If you agree with this quote, you have a future mindset of federated PLM.
- If you still advocate the Single Source of Truth, you are still in the Monolithic PLM phase.
It’s not a problem if you are aware that the next step should be federated and you are not ready yet.
However, in particular, environmental regulations and sustainability initiatives can only be performed in data-driven, federated environments. Think about the European Green Deal with its upcoming Ecodesign for Sustainable Products Directive (ESPR), which demands digital traceability of products, their environmental impact, and reuse /recycle options, expressed in the Digital Product Passport.
Reporting, Greenhouse Gas Reporting and ESG reporting are becoming more and more mandatory for companies, either by regulations or by the customers. Only a data-driven connected infrastructure can deal with this efficiently. Sustaira, a company we interviewed with the PLM Green Global Alliance last year, delivers such a connected infrastructure.
Read the challenges they meet in their blog post: Is inaccurate sustainability data holding you back?
Finally, to perform Life Cycle Assessments for design options or Life Cycle Analyses for operational products, you need connections to data sources in real-time. The virtual design twin or the digital twin in operation does not run on documents.
Conclusion
Data migration and consolidation to modern systems is probably a painful and challenging process. However, the good news is that with the right mindset to continue and with a focus on data quality and governance, the next step to a integrated coordinated and connected enterprise will not be that painful. It can be an evolutionary process, as the McKinsey article describes it.
Our recent interviews this year with aPriori and SAP were with companies that had less of a focus on the traditional product design process and more of a focus on the (circular) manufacturing process. In these interviews the importance of working with connected data was discussed in a shared (digital) thread.
This time, we, Mark Reisig and Jos Voskuil, were excited to talk with Siemens, not only a well-known PLM vendor but also a manufacturer of products and, therefore, having a close understanding of what is needed and can be achieved with their software solutions.
Siemens
As Siemens is such a broad enterprise; we were happy to speak with Ryan R. Rochelle, who focuses on Sustainable Production, Sustainable Manufacturing and Sustainable Industry within Siemens . In the interview we discussed the importance of digital twins and the feedback loops between design and manufacturing. Despite some flaws in the network connection, we are happy to share an informative interview.
Enjoy listening and watching the next 33 minutes, talking with Ryan Rochelle.
You can download the images shown during the interview HERE
What I have learned
- Like all PLM vendors in this domain, Siemens talks about the importance of a circular economy and the need for digital threads and digital twins, confirming the need for all of us to invest in the digitization of the product lifecycle.
- Siemens is in a unique position as both the industrial user and software provider of its PLM suite, therefore having a unique feedback loop on the usability and applicability of its software in its industry.
- In the area of sustainability, they learn from both customers and internal customers. They are customer zero. Here, they observe shifting in engineering activities to the left” to optimize processes, supply chain and manufacturing earlier . (<<PGGA>>: which aligns with our aPriori and Makersite interviews).
- Siemens, SiGreen’s solution is an example of this unique position, being be able to track the carbon footprint of products across the supply chain.
Want to learn more
- There is the Siemens Sustainable industries website
- How the Digital Enterprise helps attain sustainability
- The Journey to a Sustainability Lighthouse awarded by the World Economic Forum
Conclusion
We have been discussing the relationship between PLM and sustainability with relevant software vendors for over two years now. As we saw initially in 2022, a few companies were exploring the possibilities.
Now, with further regulations and advanced software capabilities, companies are starting to implement new capabilities to make their product development process and products more sustainable. Siemens, as a software provider and an industrial user of its tools, is leading this journey—is it time for your company to step up, too?
Our first PGGA interview with PLM-related software vendors was two years ago with SAP. At that time, Sustainability became more visible in corporate strategies, and regulations were imminent.
This time, Klaus Brettschneider and I want to learn what has happened related to Sustainability. Is there visible progress in their organizations and customer base? And what is hot now?
And we were positively surprised by a conversation going in many directions.
SAP
The interview was again with Darren West. Darren is the product expert for SAP’s Circular Economy solutions and this time, Stephan Fester supported him. Stephan is co-leading the SAP Global Circular Manufacturing Practice and, therefore, is well-connected to the field. Last year, in particular, working in discrete manufacturing and discussing circular manufacturing.
Thanks to the expertise of our guests, the discussion went in various directions, with circularity as the central theme.
We discussed the progress of the Responsible Design & Production module that was just launched two years ago. We discussed the Green Ledger and Carbon Accounting, of course, in the context of circular manufacturing.
But also, we discussed the Digital Product Passport. Catena-X, what is it, and what is it targeting?
We also discussed how to deal with the scarcity of materials and materials harvesting. The interview could not be complete without mentioning AI.
Enjoy the 35-minute interview with Darren and Stephan on our YouTube channel.
The slides shown in this recording can be found here: PGGA talking again with SAP.
What we have learned
- Regulations heavily push SAP customers and require adequate reporting tools, not only for finance and material use but also for sustainability KPIs
- The Responsible Design & Production module launched two years ago is already in use with 60+ customers, showing the importance of having data-driven decision support for plastic packaging – to be extended to the product. Of course, as a PLM community, we are interested in understanding the next steps toward the product.
- The insights from Stephan Fester on circular manufacturing can be a logical evolution of the linear product process, as Stephan’s image shows.
- Great insights on Catena-X as an independent network for data sharing in the global network
Want to learn more?
Events and Shows:
- SAP at Hannover Messe – April 22-26, 2024 – event information
- SAP Sapphire, Orlando, USA – June 3-5, 2024 – event information
- SAP Sapphire, Barcelona, Spain – June 11-13, 2024 – event information
Websites:
- Circular Manufacturing at Scale – Microsite
- SAP Responsible Design and Production – product page
- SAP Circular Economy page
- SAP Sustainability home page
Conclusion
It was a great discussion with a company that is quite active in supporting its customers on a sustainable journey. The journey is complex and has many aspects, as Darren and Stephan shared in this dialogue. The good news is that SAP’s customers are actively implementing measures and processes – going circular is happening!
Join the PDSFORUM next month and join me to get inspired an participate in a Think Thank session on day 2 related to designing more sustainable products. Will we meet there?
Last week, I participated in the annual 3DEXPERIENCE User Conference, organized by the ENOVIA and NETVIBES brands. With approximately 250 attendees, the 2-day conference on the High-Tech Campus in Eindhoven was fully booked.
My PDM/PLM career started in 1990 in Eindhoven.
First, I spent a significant part of my school life there, and later, I became a physics teacher in Eindhoven. Then, I got infected by CAD and data management, discovering SmarTeam, and the rest is history.
As I wrote in my last year’s post, the 3DEXPERIENCE conference always feels like a reunion, as I have worked most of my time in the SmarTeam, ENOVIA, and 3DEXPERIENCE Eco-system.
Innovation Drivers in the Generative Economy
Stephane Declee and Morgan Zimmerman kicked off the conference with their keynote, talking about the business theme for 2024: the Generative Economy. Where the initial focus was on the Experience Economy and emotion, the Generative Economy includes Sustainability. It is a clever move as the word Sustainability, like Digital Transformation, has become such a generic term. The Generative Economy clearly explains that the aim is to be sustainable for the planet.
Stephane and Morgan talked about the importance of the virtual twin, which is different from digital twins. A virtual twin typically refers to a broader concept that encompasses not only the physical characteristics and behavior of an object or system but also its environment, interactions, and context within a virtual or simulated world. Virtual Twins are crucial to developing sustainable solutions.
Morgan concluded the session by describing the characteristics of the data-driven 3DEXPERIENCE platform and its AI fundamentals, illustrating all the facets of the mix of a System of Record (traditional PLM) and Systems of Record (MODSIM).
3DEXPERIENCE for All at automation.eXpress
Daniel Schöpf, CEO and founder of automation.eXpress GmbH, gave a passionate story about why, for his business, the 3DEXPERIENCE platform is the only environment for product development, collaboration and sales.
Automation.eXpress is a young but typical Engineering To Order company building special machinery and services in dedicated projects, which means that every project, from sales to delivery, requires a lot of communication.
For that reason, Daniel insisted all employees to communicate using the 3DEXPERIENCE platform on the cloud. So, there are no separate emails, chats, or other siloed systems.
Everyone should work connected to the project and the product as they need to deliver projects as efficiently and fast as possible.
Daniel made this decision based on his 20 years of experience in traditional ways of working—the coordinated approach. Now, starting from scratch in a new company without a legacy, Daniel chose the connected approach, an ideal fit for his organization, and using the cloud solution as a scalable solution, an essential criterium for a startup company.
My conclusion is that this example shows the unique situation of an inspired leader with 20 years of experience in this business who does not choose ways of working from the past but starts a new company in the same industry, but now based on a modern platform approach instead of individual traditional tools.
Augment Me Through Innovative Technology
Dr. Cara Antoine gave an inspiring keynote based on her own life experience and lessons learned from working in various industries, a major oil & gas company and major high-tech hardware and software brands. Currently, she is an EVP and the Chief Technology, Innovation & Portfolio Officer at Capgemini.
She explained how a life-threatening infection that caused blindness in one of her eyes inspired her to find ways to augment herself to keep on functioning.
With that, she drew a parallel with humanity, who continuously have been augmenting themselves from the prehistoric day to now at an ever-increasing speed of change.
The current augmentation is the digital revolution. Digital technology is coming, and you need to be prepared to survive – it is Innovate of Abdicate.
Dr. Cara continued expressing the need to invest in innovation (me: it was not better in the past 😉 ) – and, of course, with an economic purpose; however, it should go hand in hand with social progress (gender diversity) and creating a sustainable planet (innovation is needed here).
Besides the focus on innovation drivers, Dr. Cara always connected her message to personal interaction. Her recently published book Make it Personal describes the importance of personal interaction, even if the topics can be very technical or complex.
I read the book with great pleasure, and it was one of the cornerstones of the panel discussion next.
It is all about people…
It might be strange to have a session like this in an ENOVIA/NETVIBES User Conference; however, it is another illustration that we are not just talking about technology and tools.
I was happy to introduce and moderate this panel discussion,also using the iconic Share PLM image, which is close to my heart.
The panelists, Dr. Cara Antoine, Daniel Schöpf, and Florens Wolters, each actively led transformational initiatives with their companies.
We discussed questions related to culture, personal leadership and involvement and concluded with many insights, including “Create chemistry, identify a passion, empower diversity, and make a connection as it could make/break your relationship, were discussed.
And it is about processes.
Another trend I discovered is that cloud-based business platforms, like the 3DEXERIENCE platform, switch the focus from discussing functions and features in tools to establishing platform-based environments, where the focus is more on data-driven and connected processes.
Some examples:
Data Driven Quality at Suzlon Energy Ltd.
Florens Wolters, who also participated in the panel discussion “It is all about people ..” explained how he took the lead to reimagine the Sulon Energy Quality Management System using the 3DEXPERIENCE platform and ENOVIA from a disconnected, fragmented, document-driven Quality Management System with many findings in 2020 to a fully integrated data-driven management system with zero findings in 2023.
It is an illustration that a modern data-driven approach in a connected environment brings higher value to the organization as all stakeholders in the addressed solution work within an integrated, real-time environment. No time is wasted to search for related information.
Of course, there is the organizational change management needed to convince people not to work in their favorite siloes system, which might be dedicated to the job, but not designed for a connected future.
The image to the left was also a part of the “It is all about people”- session.
Enterprise Virtual Twin at Renault Group
The presentation of Renault was also an exciting surprise. Last year, they shared the scope of the Renaulution project at the conference (see also my post: The week after the 3DEXPERIENCE conference 2023).
Here, Renault mentioned that they would start using the 3DEXPERIENCE platform as an enterprise business platform instead of a traditional engineering tool.
Their presentation today, which was related to their Engineering Virtual Twin, was an example of that. Instead of using their document-based SCR (Système de Conception Renault – the Renault Design System) with over 1000 documents describing processes connected to over a hundred KPI, they have been modeling their whole business architecture and processes in UAF using a Systems of System Approach.
The image above shows Franck Gana, Renault’s engineering – transformation chief officer, explaining the approach. We could write an entire article about the details of how, again, the 3DEXPERIENCE platform can be used to provide a real-time virtual twin of the actual business processes, ensuring everyone is working on the same referential.
Bringing Business Collaboration to the Next Level with Business Experiences
To conclude this section about the shifting focus toward people and processes instead of system features, Alizée Meissonnier Aubin and Antoine Gravot introduced a new offering from 3DS, the marketplace for Business Experiences.
According to the HBR article, workers switch an average of 1200 times per day between applications, leading to 9 % of their time reorienting themselves after toggling.
1200 is a high number and a plea for working in a collaboration platform instead of siloed systems (the Systems of Engagement, in my terminology – data-driven, real-time connected). The story has been told before by Daniel Schöpf, Florens Wolters and Franck Gana, who shared the benefits of working in a connected collaboration environment.
The announced marketplace will be a place where customers can download Business Experiences.
There is was more ….
There were several engaging presentations and workshops during the conference. But, as we reach 1500 words, I will mention just two of them, which I hope to come back to in a later post with more detail.
- Delivering Sustainable & Eco Design with the 3DS LCA Solution
Valentin Tofana from Comau, an Italian multinational company in the automation and committed to more sustainable products. In the last context Valentin shared his experiences and lessons learned starting to use the 3DS LifeCycle Assessment tools on the 3DEXPERIENCE platform.
This session gave such a clear overview that we will come back with the PLM Green Global Alliance in a separate interview. - Beyond PLM. Productivity is the Key to Sustainable Business
Neerav MEHTA from L&T Energy Hydrocarbon demonstrated how they currently have implemented a virtual twin of the plant, allowing everyone to navigate, collaborate and explore all activities related to the plant.I was promoting this concept in 2013 also for Oil & Gas EPC companies, at that time, an immense performance and integration challenge. (PLM for all industries) Now, ten years later, thanks to the capabilities of the 3DEXPERIENCE platform, it has become a workable reality. Impressive.
Conclusion
Again, I learned a lot during these days, seeing the architecture of the 3DEXPERIENCE platform growing (image below). In addition, more and more companies are shifting their focus to real-time collaboration processes in the cloud on a connected platform. Their testimonies illustrate that to be sustainable in business, you have to augment yourself with digital.
Note: Dassault Systemes did not cover any of the cost for me attending this conference. I picked the topics close to my heart and got encouraged by all the conversations I had.
This post shares our second interview this year in the PLM Global Green Alliance series, where we talked with PLM-related software vendors and their activities related to Sustainability. Last year, we spoke mainly with the more traditional PLM vendors, but this year, we started with Makersite, a company specialized in Product Lifecycle Intelligence supporting sustainability analysis.
And now we are happy to talk this time with Mark Rushton, Senior Product Marketing Manager and Ryan Flavelle, Associate Product Owner, both at aPriori Technologies. For my PGGA partner Mark Reisig and me, it was an interesting discussion in a domain where the focus was not on product design at the time.
aPriori
aPriori, according to their website, focuses on Digital Manufacturing, digitizing the entire manufacturing process, from design to production, and therefore able to asses environmental impact in a reliable manner.
It was an informative dialogue. Watch the 35-minute discussion here and learn how aPriori uniquely digitizes the manufacturing processes to support Sustainability.
Slides shown during the interview combined with additional company information can be found HERE.
What we have learned
- aPriori’s customers have pushed the company to provide faster and digital sustainability insights in their manufacturing processes, illustrating that companies are really acting to understand their environmental impact. To measure is to know.
- In this interview, we saw the concepts of the digital twin of manufacturing processes and the digital twin of a plant.
- aPriori uniquely starts their impact analysis based on the 3d CAD geometry, being more accurate than what most LCA tools do, a BOM-based assessment,
Want to learn more?
Here are some links to the topics discussed in our meeting:
- How does aPriori software work – watch this demo
- aPriori’s Sustainability resources can be found here
- The blog Mark Reisig liked: the aPriori blog
- And the famous Manufacturing Insights Podcast
Conclusions
When it comes to sustainability in action, you need to be able measure and understand your environmental impact. Where traditional PLM activities focus on the design phase, there is also a lot to learn during the manufacturing phase. aPriori is doing this on a unique manner, not just based on BOM-analysis. In addition companies like aPriori have already a longer term experience with the virtual twin for manufacturing, originally used for cost and manufacturability analysis. Now extended to sustainability and their customers are working on it.
Next week more about the 3DEXPERIENCE conference – did I see you there?
Jos Voskuil's Weblog 
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