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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 !

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bimodalIn my earlier post The weekend after PDT Europe I wrote about the first day of this interesting conference. We ended that day with some food for thought related to a bimodal PLM approach. Now I will take you through the highlights of day 2.

Interoperability and openness in the air (aerospace)

I believe Airbus and Boeing are one of the most challenged companies when it comes to PLM. They have to cope with their stakeholders and massive amount of suppliers involved, constrained by a strong focus on safety and quality. And as airplanes have a long lifetime, the need to keep data accessible and available for over 75 years are massive challenges. The morning was opened by presentations from Anders Romare (Airbus) and Brian Chiesi (Boeing) where they confirmed they could switch the presenter´s role between them as the situations in Airbus and Boeing are so alike.

airbus logoAnders Romare started with a presentation called: Digital Transformation through an e2e PLM backbone, where he explained the concept of extracting data from the various silo systems in the company (CRM, PLM, MES, ERP) to make data available across the enterprise. In particular in their business transformation towards digital capabilities Airbus needed and created a new architecture on top of the existing business systems, focusing on data (“Data is the new oil”).

In order to meet a data-driven environment, Airbus extracts and normalizes data from their business systems and provides a data lake with integrated data on top of which various apps can run to offer digital services to existing and new stakeholders on any type of device. The data-driven environment allows people to have information in context and almost real-time available to make right decisions. Currently, these apps run on top of this data layer.

AirbusPDT2016

Now imagine information captured by these apps could be stored or directed back in the original architecture supporting the standard processes. This would be a real example of the bimodal approach as discussed on day 1. As a closing remark Anders also stated that three years ago digital transformation was not really visible at Airbus, now it is a must.

BoeingLogoNext Brian Chiesi from Boeing talked about Data Standards: A strategic lever for Boeing Commercial Airplanes. Brian talked about the complex landscape at Boeing. 2500 Applications / 5000 Servers / 900 changes annually (3 per day) impacting 40.000 users. There is a lot of data replication because many systems need their own proprietary format. Brian estimated that if 12 copies exist now, in the ideal world 2 or 3 will do. Brian presented a similar future concept as Airbus, where the traditional business systems (Systems Engineering, PLM, MRP, ERP, MES) are all connected through a service backbone. This new architecture is needed to address modern technology capabilities (social / mobile / analytics / cloud /IoT / Automation / ,,)

BoeingArchitecture

Interesting part of this architecture is that Boeing aims to exchange data with the outside world (customers / regulatory/supply chain /analytics / manufacturing) through industry standard interfaces to have an optimal flow of information. Standardization would lead to a reduction of customized applications, minimize costs of integration and migration, break the obsolescence cycle and enable future technologies. Brian knows that companies need to pull for standards, vendors will deliver. Boeing will be pushing for standards in their contracts and will actively work together with five major Aerospace & Defense companies to define required PLM capabilities and have a unified voice to PLM solutions providers.

My conclusion on these to Aerospace giants is they express the need to adapt to move to modern digital businesses, no longer the linear approach from the classic airplane programs. Incremental innovation in various domains is the future. The existing systems need to be there to support their current fleet for many, many years to come. The new data-driven layer needs to be connected through normalization and standardization of data. For the future focus on standards is a must.

MicrosoftLogoSimon Floyd from Microsoft talked about The Impact of Digital Transformation in the Manufacturing Enterprise where he talked us through Digital Transformation, IoT, and analytics in the product lifecycle, clarified by examples from the Rolls Royce turbine engine. A good and compelling story which could be used by any vendor explaining digital transformation and the relation to IoT. Next, Simon walked through the Microsoft portfolio and solution components to support a modern digital enterprise based on various platform services. At the end, Simon articulated how for example ShareAspace based on Microsoft infrastructure and technology can be an interface between various PLM environments through the product lifecycle.

Simon’s presentation was followed by a panel discussion where the theme was: When is history and legacy an asset and barriers of entry and When does it become a burden and an invitation to future competitors.
PDTpanel2Mark Halpern (Gartner) mentioned here again the bimodal thinking. Aras is bimodal. The classical PLM vendors running in mode 1 will not change radically and the new vendors, the mode 2 types will need time to create credibility. Other companies mentioned here PropelPLM (PLM on Salesforce platform) or OnShape will battle the next five years to become significant and might disrupt.

Simon Floyd(Microsoft) mentioned that in order to keep innovation within Microsoft, they allow for startups within in the company, with no constraints in the beginning to Microsoft. This to keep disruption inside you company instead of being disrupted from outside. Another point mentioned was that Tesla did not want to wait till COTS software would be available for their product development and support platform. Therefore they develop parts themselves. Are we going back to the early days of IT ?

Interesting trend I believe too, in case the building blocks for such solution architecture are based on open (standardized ?) services.

Data Quality

After the lunch, the conference was split in three streams where I was participating in the “Creating and managing information quality stream.” As I discussed in my presentation from day 1, there is a need for accurate data, starting a.s.a.p. as the future of our businesses will run on data as we learned from all speakers (and this is not a secret – still many companies do not act).

boost logoIn the context of data quality, Jean Brange from Boost presented the ISO 8000 framework for data and information quality management. This standard is now under development and will help companies to address their digital needs. The challenge of data quality is that we need to store data with the right syntax and semantic to be used and in addition, it needs to be pragmatic: what are we going to store that will have value. And then the challenge of evaluating the content. Empty fields can be discovered, however, how do you qualify the quality of field with a value. The ISO 8000 framework is a framework, like ISO 9000 (product quality) that allow companies to work in a methodological way towards acceptable and needed data quality.

iso8000

eurostep logoMagnus Färneland from Eurostep addressed the topic of data quality and the foundation for automation based on the latest developments done by Eurostep on top of their already rich PLCS data model. The PLCS data model is an impressive model as it already supports all facets of product lifecycle from design, through development and operations. By introducing soft typing, EuroStep allows a more detailed tuning of the data model to ensure configuration management. When at which stage of the lifecycle is certain information required (and becomes mandatory) ? Consistent data quality enforced through business process logic.

The conference ended with Marc Halpern making a plea for Take Control of Your Product Data or Lose Control of Your Revenue, where Marc painted the future (horror) scenario that due to digital transformation the real “big fish” will be the digital business ecosystem owner and that once you are locked in with a vendor, these vendors can uplift their prices to save their own business without any respect for your company’s business model. Marc gave some examples where some vendor raised prices with the subscription model up to 40 %. Therefore even when you are just closing a new agreement with a vendor, you should negotiate a price guarantee and a certain bandwidth for increase. And on top of that you should prepare an exit strategy – prepare data for migration and have backups using standards. Marc gave some examples of billions extra cost related to data quality and loss. It can hurt !! Finally, Marc ended with recommendations for master data management and quality as a needed company strategy.

GartnerSupscriptionModels

cimdataGerard Litjens from CIMdata as closing speaker gave a very comprehensive overview of The Internet of Thing – What does it mean for PLM ? based on CIMdata’ s vision. As all vendors in this space explain the relation between IoT and PLM differently, it was a good presentation to be used as a base for the discussion: how does IoT influence our PLM landscape. Because of the length of this blog post, I will not further go into these details – it is worth obtaining this overview.

Concluding: PDT2016 is a crucial PLM conference for people who are interested in the details of PLM. Other conferences might address high-level customer stories, at PDT2016 it is about the details and sharing the advantages of using standards. Standards are crucial for a data-driven environment where business platforms with all their constraints will be the future. And I saw more and more companies are working with standards in a pragmatic manner, observing the benefits and pushing for more data standards – it is not just theory.

See you next year ?

PI Munich 2016Last week I attended the PI conference in Munich, which has become a tradition since 2011. Personally, I have been busy moving houses, so blogging has not been my priority recently. However, the PI Conference for me is still one of the major events happening in Europe. Excellent for networking and good for understanding what is going on in the world of PLM. Approximate 200 delegates attended from various industries and. Therefore, the two days were good to find and meet the right people.

As the conference has many parallel sessions, I will give some of the highlights here. The beauty of this conference is that all sessions are recorded. I am looking forward to catch-up with other meetings in the upcoming weeks. Here some of the highlights of the sessions that I attended.

Some of the highlights

F1-IOTThe first keynote session was from Mark Gallagher with the title: High-Performance Innovation in Formula One. Mark took us through the past and current innovations that have been taken place in the F1. I was involved some years ago in a PLM discussion with one of the F1 team.
I believe F1 is a dream for engineers and innovators. Instead of a long time to market, in F1, it is all about bringing innovation to the team as fast as possible. And interesting to see IoT, direct feedback from the car during the race is already a “commodity” in F1 – see the picture. Now we need to industrialize it.

 

cimdataPeter Bilello (CIMdata) took us through The Future Sustainability of PLM. One of the big challenges for PLM implementations is to make the sustainable. Currently, we see many PLM implementations reaching a state of obsolescence, no longer able to support the modern business for various reasons.

Change of owner, mergers, a different type of product, the importance of software. All of these reasons can become a significant challenge when your PLM implementation has been tuned to support the past.

How to be ready for the future. Peter concluded that companies need to be pro-active manage their systems and PLM platforms might give an answer for the future. However, these platforms need to be open and rely on standards, to avoid locking in data in the platform.

Final comment: To stay competitive in the future companies need to have an adequate strategy and vision.

JLR

Gary Knight, PLM Business Architecture Manager from Jaguar Land Rover, gave an impressive presentation about the complete approach JLR has executed. Yes, there is the technical solution. However the required cultural change and business change to align the vision with execution on the floor are as important. Making people enthusiastic and take part in realizing the future.

The traditional productivity dip during a business transformation has been well supported by intensive change management support, allowing the company to keep the performance level equal without putting its employees under big pressure. Many companies I have seen could learn from that.

JLRchange

PLM and ERP

dummies_logoIn the afternoon, I moderated a focus group related to PLM and ERP integration challenges. An old-fashioned topic you might think. However, the room was full of people (too many) all hoping to find the answers they need. Some conclusions:

  • Understanding the difference between owning data and sharing data. Where sharing still requires certain roles to be responsible for particular data sets.
  • First define the desired process how information should flow between roles in the organization without thinking in tools. Once a common agreement exists, a technical realization will not be the bottleneck.
  • PLM and ERP integrations vary per primary process (ETO, BTO, CTO, and MTS). In each of these processes the interaction between PLM and ERP will be different due to timing issues or delivery model

volvologoIrene Gustafson from Volvo Cars explained the integration concept with partners / suppliers based on Eurostep´s ShareAspace. I wrote about this concept in my blog post: The weekend after PDT2015. Meanwhile, the concept of a collaboration hub instead of direct integration between an OEM and its supplier has become more traction.

Irene Gustafson made some interesting closing statements

  • Integration should not be built into the internal structure, it takes away flexibility
  • A large portion of collaborative data is important here and now. Long term only a limited part of that data will need to be saved

Eurostep announced their new upcoming releases based on different collaboration scenarios, InReach, InControl and InLife. These packages allow fast and more OOTB deployment of their collaboration hub (based on de PLCS standard)

Digital Transformation at Philips and GE

PhilipsAnosh Thakkar, Chief Technology Officer from Philips, explained their digital business transformation from pushing products to the markets towards a HealthTech company, leaving the lightning division behind. Philips used three “transformers” to guide the business change:

  • From Complex to Simple, aligning businesses to 4 simplified business model (instead of 75) and one process framework supported by core IT platforms reducing customizations and many applications (from 8000 to 1000)
  • From Analog to Digital, connecting customer devices through a robust cloud-based platform. A typical example of modern digital businesses
  • From Products to Solution, again with a focus on the end-user how they could work in an ideal way instead of delivering a device (the Experience economy)

GElogo Ronan Stephan, chief scientist of GE, presented the digital business transformation is working on. Ronan took us through the transformation models of Amazon, Apple, and Google, explaining how their platforms and the insight coming from platform information have allowed these companies to be extremely successful. GE is aiming to be the leader in the digital industry, connecting their company with all their customers (aerospace, transportation, power & healthcare) on their Predix platform.

tacitOn the second day, I presented to a relatively small audience (5 parallel sessions – all interesting) a session with the title: The PLM Identity crisis. Luckily there were still people in the conference that have the feeling something is changing in PLM. My main message was that PLM like everything else in the current world suffers from rapid changing business models (hardware products towards software driven systems) and lack of time to distinguish between facts and opinions. The world of one-liners. To my opinion existing PLM, concepts are no longer enough, however, the PLM market still is mainly based on classical linear thinking as my generation (the baby boomers) are still leading the business. Have a look at the presentation here, of find a nice complementary related post from my blog buddy Oleg Shilovitsky here.

As I am in the middle of moving houses, now in no man’s land, I do not have the time and comfortable environment to write a more extensive review this time. Perhaps I will come back with some other interesting thoughts from this conference after having seen more recordings.

My observation after the conference:

A year ago I wrote The Weekend After Product Innovation 2015 in Düsseldorf where managing software in the context of PLM was the new topic. This year you could see the fast change as now IoT platforms and M2M communication was the main theme. The digital revolution is coming …..

econimist

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