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Once and a while, the discussion pops up if, given the changes in technology and business scope, we still should talk about PLM. John Stark and others have been making a point that PLM should become a profession.

In a way, I like the vagueness of the definition and the fact that the PLM profession is not written in stone. There is an ongoing change, and who wants to be certified for the past or framed to the past?

However, most people, particularly at the C-level, consider PLM as something complex, costly, and related to engineering. Partly this had to do with the early introduction of PLM, which was a little more advanced than PDM.

The focus and capabilities made engineering teams happy by giving them more access to their data. But unfortunately, that did not work, as engineers are not looking for more control.

Old (current) PLM

Therefore, I would like to suggest that when we talk about PLM, we frame it as Product Lifecycle Data Management (the definition). A PLM infrastructure or system should be considered the System of Record, ensuring product data is archived to be used for manufacturing, service, and proving compliance with regulations.

In a modern way, the digital thread results from building such an infrastructure with related artifacts. The digital thread is somehow a slow-moving environment, connecting the various as-xxx structures (As-Designed, As-Planned, As-Manufactured, etc.). Looking at the different PLM vendor images, Aras example above, I consider the digital thread a fancy name for traceability.

I discussed the topic of Digital Thread in 2018:  Document Management or Digital Thread. One of the observations was that few people talk about the quality of the relations when providing traceability between artifacts.

The quality of traceability is relevant for traditional Configuration Management (CM). Traditional CM has been framed, like PLM, to be engineering-centric.

Both PLM and CM need to become enterprise activities – perhaps unified.

Read my blog post and see the discussion with Martijn Dullaart, Lisa Fenwick and Maxim Gravel when discussing the future of Configuration Management.

New digital PLM

In my posts, I talked about modern PLM. I described it as data-driven, often in relation to a model-based approach. And as a result of the data-driven approach, a digital PLM environment could be connected to processes outside the engineering domain. I wrote a series of posts related to the potential of such a new PLM infrastructure (The road to model-based and connected PLM)

Digital PLM, if implemented correctly, could serve people along the full product lifecycle, from marketing/portfolio management until service and, if relevant, decommissioning). The bigger challenge is even connecting eco-systems to the same infrastructure, in particular suppliers & partners but also customers. This is the new platform paradigm.

Some years ago, people stated IoT is the new PLM  (IoT is the new PLM – PTC 2017). Or MBSE is the foundation for a new PLM (Will MBSE be the new PLM instead of IoT? A discussion @ PLM Roadmap conference 2018).

Even Digital Transformation was mentioned at that time. I don’t believe Digital Transformation is pointing to a domain, more to an ongoing process that most companies have t go through. And because it is so commonly used, it becomes too vague for the specifics of our domain. I liked Monica Schnitger‘s LinkedIn post: Digital Transformation? Let’s talk. There is enough to talk about; we have to learn and be more specific.

 

What is the difference?

The challenge is that we need more in-depth thinking about what a “digital transformed” company would look like. What would impact their business, their IT infrastructure, and their organization and people? As I discussed with Oleg Shilovitsky, a data-driven approach does not necessarily mean simplification.

I just finished recording a podcast with Nina Dar while writing this post. She is even more than me, active in the domain of PLM and strategic leadership toward a digital and sustainable future. You can find the pre-announcement of our podcast here (it was great fun to talk), and I will share the result later here too.

What is clear to me is that a new future data-driven environment becomes like a System of Engagement. You can simulate assumptions and verify and qualify trade-offs in real-time in this environment. And not only product behavior, but you can also simulate and analyze behaviors all along the lifecycle, supporting business decisions.

This is where I position the digital twin. Modern PLM infrastructures are in real-time connected to the business. Still, PLM will have its system of record needs; however, the real value will come from the real-time collaboration.

The traditional PLM consultant should transform into a business consultant, understanding technology. Historically this was the opposite, creating friction in companies.

Starting from the business needs

In my interactions with customers, the focus is no longer on traditional PLM; we discuss business scenarios where the company will benefit from a data-driven approach. You will not obtain significant benefits if you just implement your serial processes again in a digital PLM infrastructure.

Efficiency gains are often single digit, where new ways of working can result in double-digit benefits or new opportunities.

Besides traditional pressure on companies to remain competitive, there is now a new additional driver that I have been discussing in my previous post, the Innovation Dilemma. To survive on our planet, we and therefore also companies, need to switch to sustainable products and business models.

This is a push for innovation; however, it requires a coordinated, end-to-end change within companies.

Be the change

When do you decide to change your business model from pushing products to the marker into a business model of Product as a Service? When do you choose to create repairable and upgradeable products? It is a business need. Sustainability does not start with the engineer. It must be part of the (new) DNA of a company.

Interesting to read is this article from Jan Bosch that I read this morning: Resistance to Change. Read the article as it makes so much sense, but we need more than sense – we need people to get involved. My favorite quote from the article:

“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man”.

Conclusion

PLM consultants should retrain themselves in System Thinking and start from the business. PLM technology alone is no longer enough to support companies in their (digital/sustainable) transformation. Therefore, I would like to introduce BLM (Business Lifecycle Management) as the new TLA.

However, BLM has been already framed as Black Lives Matter. I agree with that, extending it to ALM (All Lives Matter).

What do you think should we leave the comfortable term PLM behind us for a new frame?

In February, the PLM Global Green Alliance published our first interview discussing the relationship between PLM and Sustainability with the main vendors. We talked with Darren West from SAP.

You can find the interview here: PLM and Sustainability: talking with SAP. We spoke with Darren about SAP’s Responsible Design and Production module, allowing companies to understand their environmental and economic impact by calculating fees and taxes and implement measures to reduce regulatory costs. The high reliance on accurate data was one of the topics in our discussion.

In March,  we interviewed Zoé Bezpalko and Jon den Hartog from Autodesk. Besides Autodesk’s impressive sustainability program, we discussed Autodesk’s BIM technology helping the construction industry to become greener and their Generative Design solution to support the designer in making better material usage or reuse decisions.

The discussion ended with discussing Life Cycle Assessment tools to support the engineer in making sustainable decisions.

In my last blog post, the Innovation Dilemma, I explored the challenges of a Life Cycle Assessment. As it appears, it is not about just installing a tool. The concepts of a data-driven PLM infrastructure and digital twins are strong transformation prerequisites combined with the Inner Development Goals (IDG).

The IDGs are a human attitude needed besides the Sustainability Development Goals.

Therefore we were happy to discuss last week with Florence Verzelen, Executive Vice President Industry, Marketing & Sustainability and Xavier Adam, Worldwide Sustainability Senior Manager from Dassault Systemes. We discussed Dassault Systemes’ business sustainability goals and product offerings based on the 3DEXPERIENCE platform.

Have a look at the discussion below:


The slides shown in the recording can be found HERE.

What I learned

Dassault Systemes’ purpose has been to help their customers imagine sustainable innovations capable of harmonizing product, nature, and life for many years. A statement that now is slowly bubbling up in other companies too. Dassault Systemes has set a clear and interesting target for themselves in 2025. In that year two/thirds of their sales should come from solutions that make their customers more sustainable.

Their Eco-design solution is one of the first offerings to reach this objective. Their Life Cycle Assessment solution can govern your (virtual) product design on multiple criteria, not only greenhouse gas emissions.  It will be interesting to follow up on this topic to see how companies make the change internally by relying on data and virtual twins of a product or a manufacturing process.

Want to learn more?

Conclusion

80 % of the environmental impact of products is decided during the design phase. A Lifecycle Assessment Solutions combined with a virtual product model, the virtual design twin, allows you to decide on trade-offs in the virtual space before committing to the physical solution. Creating a data-driven, closed-loop between design, engineering, manufacturing and operations based on accurate data is the envisioned infrastructure for a sustainable future.

Yes, it is not a typo. Clayton Christensen famous book written in 1995 discussed the Innovator’s Dilemma when new technologies cause great firms to fail. This was the challenge two decades ago. Existing prominent companies could become obsolete quickly as they were bypassed by new technologies.

The examples are well known. To mention a few: DEC (Digital Equipment Corporation), Kodak, and Nokia.

Why the innovation dilemma?

This decade the challenge has become different. All companies are forced to become more sustainable in the next ten years. Either pushed by global regulations or because of their customer demands. The challenge is this time different. Besides the priority of reducing greenhouse gas emissions, there is also the need to transform our society from a linear, continuous growth economy into a circular doughnut economy.

The circular economy makes the creation, the usage and the reuse of our products more complex as the challenge is to reduce the need for raw materials and avoid landfills.

The circular economy concept – the regular product lifecycle in the middle

The doughnut economy makes the values of an economy more complex as it is not only about money and growth, human and environmental factors should also be considered.

Doughnut Economics: Trying to stay within the green boundaries

To manage this complexity, I wrote SYSTEMS THINKING – a must-have skill in the 21st century, focusing on the logical part of the brain. In my follow-up post, Systems Thinking: a second thought, I looked at the human challenge. Our brain is not rational and wants to think fast to solve direct threats. Therefore, we have to overcome our old brains to make progress.

An interesting and thought-provoking was shared by Nina Dar in this discussion, sharing the video below. The 17 Sustainability Development Goals (SDGs) describe what needs to be done. However, we also need the Inner Development Goals (IDGs) and the human side to connect. Watch the movie:

Our society needs to change and innovate; however, we cannot. The Innovation Dilemma.

The future is data-driven and digital.

What is clear to me is that companies developing products and services have only one way to move forward: becoming data-driven and digital.

Why data-driven and digital?

Let’s look at something companies might already practice, REACH (Registration, Evaluation, Authorization and Restriction of Chemicals). This European directive, introduced in 2007, had the aim to protect human health and protect the environment by communicating information on chemicals up and down the supply chain. This would ensure that manufacturers, importers, and their customers are aware of information relating to the health and safety of the products supplied.

The regulation is currently still suffering in execution as most of the reporting and evaluation of chemicals is done manually. Suppliers report their chemicals in documents, and companies report the total of chemicals in their summary reports. Then, finally, authorities have to go through these reports.

Where the scale of REACH is limited, the manual effort to have end-to-end reporting is relatively high. In addition, skilled workers are needed to do the job because reporting is done in a document-based manner.

Life Cycle Assessments (LCA)

Where you might think REACH is relatively simple, the real new challenges for companies are the need to perform Life Cycle Assessments for their products. In a Life Cycle Assessment. The Wiki definition of LCA says:

Life cycle assessment or LCA (also known as life cycle analysis) is a methodology for assessing environmental impacts associated with all the stages of the life cycle of a commercial product, process, or service. For instance, in the case of a manufactured product, environmental impacts are assessed from raw material extraction and processing (cradle), through the product’s manufacture, distribution and use, to the recycling or final disposal of the materials composing it (grave)

This will be a shift in the way companies need to define products. Much more thinking and analysis are required in the early design phases. Before committing to a physical solution, engineers and manufacturing engineers need to simulate and calculate the impact of their design decisions in the virtual world.

This is where the digital twin of the design and the digital twin of the manufacturing process becomes relevant. And remember: Digital Twins do not run on documents – you need connected data and various types of models to calculate and estimate the environmental impact.

LCA done in a document-based manner will make your company too slow and expensive.

I described this needed transformation in my series from last year: The road to model-based and connected PLM – nine posts exploring the technology and concept of a model-based, data-driven PLM infrastructure.

Digital Product Passport (DPP)

The European Commission has published an action plan for the circular economy, one of the most important building blocks of the European Green Deal. One of the defined measures is the gradual introduction of a Digital Product Passport (DPP). As the quality of an LCA depends on the quality and trustworthy information about products and materials, the DPP is targeting to ensure circular economy metrics become reliable.

This will be a long journey. If you want to catch a glimpse of the complexity, read this Medium article: The digital product passport and its technical implementation related to the DPP for batteries.

The innovation dilemma

Suppose you agree with my conclusion that companies need to change their current product or service development into a data-driven and model-based manner. In that case, the question will come up: where to start?

Becoming data-driven and model-based, of course, is not the business driver. However, this change is needed to be able to perform Life Cycle Assessments and comply with current and future regulations by remaining competitive.

A document-driven approach is a dead-end.

Now let’s look at the real dilemmas by comparing a startup (clean sheet / no legacy) and an existing enterprise (experience with the past/legacy). Is there a winning approach?

The Startup

Having lived in Israel – the nation where almost everyone is a startup – and working with startups afterward in the past 10 years, I always get inspired by these people’s energy in startup companies. They have a unique value proposition most of the time, and they want to be visible on the market as soon as possible.

This approach is the opposite of systems thinking. It is often a very linear process to deliver this value proposition without exploring the side effects of such an approach.

For example, the new “green” transportation hype. Many cities now have been flooded with “green” scooters and electric bikes to promote transportation as a service. The idea behind this concept is that citizens do not require to own polluting motorbikes or cars anymore, and transportation means will be shared. Therefore, the city will be cleaner and greener.

However, these “green” vehicles are often designed in the traditional linear way. Is there a repair plan or a plan to recycle the batteries? Reuse of materials used.? Most of the time, not. Please, if you have examples contradicting my observations, let me know. I like to hear good news.

When startup companies start to scale, they need experts to help them grow the company. Often these experts are seasoned people, perhaps close to retirement. They will share their experience and what they know best from the past:  traditional linear thinking.

As a result, even though startup companies can start with a clean sheet, their focus on delivering the product or service blocks further thinking. Instead, the seasoned experts will drive the company towards ways of working they know from the past.

Out of curiosity: Do you know or work in a startup that has started with a data-driven and model-based vision from scratch?  Please add the name of this company in the comments, and let’s learn how they did it.

The Existing company

Working in an established company is like being on board a big tanker. Changing its direction takes a clear eye on the target and navigation skills to come there. Unfortunately, most of the time, these changes take years as it is impossible to switch the PLM infrastructure and the people skills within a short time.

From the bimodal approach in 2015 to the hybrid approach for companies, inspired by this 2017 McKinsey article: Toward an integrated technology operating model, I discovered that this is probably the best approach to ensure a change will happen. In this approach – see image – the organization keeps running on its document-driven PLM infrastructure. This type of infrastructure becomes the system of record. Nothing different from what PLM currently is in most companies.

In parallel, you have to start with small groups of people who independently focus on a new product, a new service. Using the model-based approach, they work completely independently from the big enterprise in a data-driven approach. Their environment can be considered the future system of engagement.

The data-driven approach allows all disciplines to work in a connected, real-time manner. Mastering the new ways of working is usually the task of younger employees that are digital natives. These teams can be completed by experienced workers who behave as coaches. However, they will not work in the new environment; these coaches bring business knowledge to the team.

People cannot work in two modes, but organizations can. As you can see from the McKinsey chart, the digital teams will get bigger and more important for the core business over time. In parallel, when their data usage grows, more and more data integration will occur between the two operation modes. Therefore, the old PLM infrastructure can remain a System of Record and serve as a support backbone for the new systems of engagement.

The Innovation Dilemma conclusion

The upcoming ten years will push organizations to innovate their ways of working to become sustainable and competitive. As discussed before, they must learn to work in a data-driven, connected manner. Both startups and existing enterprises have challenges – they need to overcome the “thinking fast and acting slow” mindset. Do you see the change in your company?

 

Note: Before publishing this post, I read this interesting and complementary post from Jan Bosch Boost your digitalization: instrumentation.

It is in the air – grab it.

 

Two weeks ago, I wrote a generic post related to System Thinking, in my opinion, a must-have skill for the 21st century (and beyond). Have a look at the post on LinkedIn; in particular interesting to see the discussion related to Systems Thinking: a must-have skill for the 21st century.

I liked Remy Fannader’s remark that thinking about complexity was not something new.

This remark is understandable from his personal context. Many people enjoy thinking – it was a respected 20th-century skill.

However, I believe, as Daniel Kahneman describes in his famous book: Thinking Fast and Slow, our brain is trying to avoid thinking.

This is because thinking consumes energy, the energy the body wants to save in the case of an emergency.

So let’s do a simple test (coming from Daniel):

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A bat and a ball cost together $ 1.10 –  the bat costs one dollar more than the ball. So how much does the ball cost?

Look at the answer at the bottom of this post. If you have it wrong, you are a fast thinker. And this brings me to my next point. Our brain does not want to think deeply; we want fast and simple solutions. This is a challenge in a complex society as now we hear real-time information coming from all around the world. What is true and what is fake is hard to judge.

However, according to Kahneman, we do not want to waste energy on thinking. We create or adhere to simple solutions allowing our brains to feel relaxed.

This human behavior has always been exploited by populists and dictators: avoid complexity because, in this way, you lose people. Yuval Harari builds upon this with his claim that to align many people, you need a myth. I wrote about the need for myths in the PLM space a few times, e.g., PLM as a myth? and The myth perception

And this is where my second thoughts related to Systems Thinking started. Is the majority of people able and willing to digest complex problems?

My doubts grew bigger when I had several discussions about fighting climate change and sustainability.

 

 

Both Brains required

By coincidence, I bumped on this interesting article Market-led Sustainability is a ‘Fix that Fails’…

I provided a link to the post indirectly through LinkedIn. If you are a LinkedIn PLM Global Green Alliance member, you can see below the article an interesting analysis related to market-led sustainability, system thinking and economics.

Join the PLM Global Green Alliance group to be part of the full discussion; otherwise, I recommend you visit Both Brains Required, where you can find the source article and other related content.

It is a great article with great images illustrating the need for systems thinking and sustainability. All information is there to help you realize that sustainability is not just a left-brain exercise.

The left brain is supposed to be logical and analytical. That’s systems thinking, you might say quickly. However, the other part of our brain is about our human behavior, and this side is mostly overlooked. My favorite quote from the article:

Voluntary Market-Led activities are not so much a solution to the sustainability crisis as a symptom of more profoundly unsustainable foundations of human behavior.

The article triggered my second thoughts related to systems thinking. Behavioral change is not part of systems thinking. It is another dimension harder to address and even harder to focus on sustainability.

The LinkedIn discussion below the article Market-led Sustainability is a ‘Fix that Fails’… is a great example of the talks we would like to have in our PLM Global Green Alliance group. Nina Dar, Patrick Hillberg and Richard McFall brought in several points worth discussing. Too many to discuss them all here – let’s take two fundamental issues:

1. More than economics

An interesting viewpoint in this discussion was the relation to economics. We don’t believe that economic growth is the main point to measure. Even a statement like:  “Sustainable businesses will be more profitable than traditional ones” is misleading when companies are measured by shareholder value or EBIT (Earnings Before Interest or Taxes). We briefly touched on Kate Raworth’s doughnut economics.

This HBR article mentioned in the discussion: Business Schools Must Do More to Address the Climate Crisis also shows it is not just about systems thinking.
We discussed the challenges of supply chains, not about resilience but about sustainability. Where an OEM can claim to be sustainable, there are often not aware of what happens at the level of their suppliers. As the OEM measure their suppliers mostly on Quality/Reliability and Cost, they usually do not care about local human issues or sustainability issues.

We have seen this in the Apparel industry with the horrible collapse of a factory in Bangladesh  (2013). Still, the inhumane accidents happen in southeast Asia. I like to quote Chris Calverley in his LinkedIn article: Making ethical apparel supply chains achievable on a global scale.

 

No one gets into business because they want to behave unethically. On the contrary, a lack of ethics is usually driven by a common desire to operate more efficiently and increase profit margins. 

In my last post, I shared a similar example from an automotive tier 2  supplier. Unfortunately, suppliers are not measured or rewarded for sustainability efforts; only efficiency and costs are relevant.

The seventeen Sustainability Development Goals (SDG), as defined by the United Nations, are the best guidance for sustainable drivers beyond money. Supporting the SDGs enforce systems thinking when developing a part, a product, or a solution. Many other stakeholders need to be taken care of, at least if you truly support sustainability as a company.

2. The downside of social media

The LinkedIn discussion related to Market-led Sustainability is a ‘Fix that Fails’… The thread shows that LinkedIn, like other social media, is not really interested in supporting in-depth discussions – try to navigate what has been said in chronological order. With Patrick, Nina and Richard, we agreed to organize a follow-up discussion in our PLM Global Green Alliance Group.

And although we are happy with social media as it allows each of us to reach a global audience, there seems to be a worrying contra-productive impact. If you read the book Stolen Focus. A quote:

All over the world, our ability to pay attention is collapsing. In the US, college students now focus on one task for only 65 seconds, and office workers, on average, manage only three minutes

This is worrying, returning to Remy Fannader’s remark: thinking about complexity was not something new. The main difference is that it is not new. However, our society is changing towards thinking too fast, not rewarding systems thinking.

Even scarier, if you have time, read this article from The Atlantic: about the impact of social media on the US Society. It is about trust in science and data. Are we facing the new (Trump) Tower of Babel in our modern society? As the writers state: Babel is a metaphor for what some forms of social media have done to nearly all of the groups and institutions most important to the country’s future—and to us as a people.

 

I have talked in previous posts about the Dunner-Kruger effect, something that is blocking systems thinking. The image to the left says it all. Due to social media and the safe place behind a keyboard, many of us consider ourselves confident experts explaining to the real expert why they are wrong. For addressing the topics of sustainability and climate change, this attitude is killing. It is the opposite of systems thinking, which costs energy.

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Congratulations

support

The fact that you reached this part of the post means your attention span has been larger than 3 minutes, showing there is hope for people like you and me. As an experiment to discover how many people read the post till here, please answer with the “support” icon if you have reached this part of the post.

I am curious to learn how many of us who saw the post came here.

 

Conclusion

Systems Thinking is a must-have skill for the 21st century. Many of us working in the PLM domain focus on providing support for systems thinking, particularly Life Cycle Assessment capabilities. However, the discussion with Patrick Hillberg, Nina Darr and Richard McFall made me realize there is more: economics and human behavior. For example, can we change our economic models, measuring companies not only for the money profit they deliver? What do?

Answering this type of question will be the extended mission for PLM consultants of the future – are you ready?

 

The answer to the question with the ball and the bat:

A fast answer would say the price of the ball is 10 cents. However, this would make the price of the bat $1.10, giving a total cost of $1.20. So the right answer should be 5 cents. To be honest, I got tricked the first time too. Never too late to confirm you make mistakes, as only people who do not do anything make no mistakes.

In several discussions and posts I wrote, I talked about systems thinking, assuming everyone has the same understanding.

For example last year with the PLM Global Green Alliance (PGGA) we had a discussion with Frank Popielas Managing Partner and Co-founder of SMS_ThinkTank™ related to sustainability. We used the term “Systems Thinking” several times assuming everyone knows the concept.

I should have known better. When using terms in your profession, you always have to verify if the others have the same meaning. Crucial when you start a PLM implementation project.

For example, several years ago, I was asked to audit a PLM implementation that got stalled because the PDM and ERP-system capabilities created a conflict. In my first interview with the PLM team, they mentioned they were quite advanced in Systems Engineering. Everyone in the core team confirmed this. However, when diving into the details of the “Systems Engineering” activities, it appeared that they were talking about (product) Configuration Management.

When working with different people, always make sure you have a common dictionary.

What is a part? What is a material? What is a Workflow, and is it different from a Business Process? And also, for Configuration Management, you often see two definitions.

One focuses on the consistency of the product’s definition, the other more on the allowed configurations of a product. So now let’s dive into Systems Thinking which is not the same as Systems Engineering.

Systems thinking – a definition

When I checked on Wiki, I found this complex definition:

Systems thinking
is a way of making sense of the complexity of the world by looking at it in terms of wholes and relationships rather than by splitting it down into its part. It has been used as a way of exploring and developing effective action in complex contexts. Systems thinking draws on and contributes to systems theory and the system sciences.

A careful reader would extract from this definition that the focus for systems thinking is looking at the bigger picture, the whole, a holistic approach. Of course, when using a holistic approach, you take more relationships or possibilities into account,  which broadens your thinking (or value of your solution). The opposite of Systems Thinking is to focus on a single issue or part and describe it best. Let me explain this by an example:

The BIC ballpoint

You might remember the first BIC ballpoints with the sharp cap when you are as old as me.

This image is from the time I was born. The BIC ballpoint, with the pointed cap, was one of the most popular ballpoints during my teenage years.

In primary school not allowed, as we first had to learn to write with an ink pen or fountain pen. The BIC pen at that time was designed as a product with a single purpose: enabling people to write affordable, comfortable, and fast.

With a more holistic view of the BIC pen, you might say: “What happens when children play with it?” And apparently, there were accidents with children stabbing themselves in the eye with the sharp cap.

And this was indeed the case when considering the BIC ballpoint as a system; other stakeholders and scenarios were considered.

Now the cap is flattened (safe for children). The cap’s open end is apparently there to support performing a tracheotomy when no medical equipment is available (just a sharp knife and the BIC ballpoint are needed).

Don’t try this at home for fun: Performing the Tracheotomy

I hope the example illustrates that you can look at a product differently.

First as a product with a single purpose (single stakeholder) or as a system interacting with other stakeholders (writing, safe for children, first aid support).

System Thinking, therefore, is an attitude which not natural for humans. In his famous book Thinking Fast & Slow, Daniel Kahneman explains that our evolutionary brain always wants to save energy.

Therefore our brain is pushing us to make fast intuitive decisions, not always the ones that you would make after serious thinking.

Systems Thinking costs energy for the brain.

Often we hear that companies want to reduce their costs and time spent on engineering – more efficiency.

Systems Thinking and Systems Engineering are aiming for the opposite – spend more time thinking and analyzing in the virtual world, before committing to the physical world. Fixing issues once you are in the physical world is much more costly than in the virtual world.

Click on the image to see the details.

This brings us to the relationship with Systems Engineering

Systems thinking and Systems Engineering

You could say Systems Engineering is the best example of Systems Thinking. There are various viewpoints on Systems Engineering, best characterized in these two directions (Wiki here):

  • Systems engineering is an interdisciplinary field of engineering and engineering management that focuses on how to design, integrate, and manage complex systems over their life cycles. At its core, systems engineering utilizes systems thinking principles to organize this body of knowledge. The individual outcome of such efforts, an engineered system, can be defined as a combination of components that work in synergy to collectively perform a useful function. Here the focus is on managing in a proven manner complexity
  • Systems engineering focuses on analyzing and eliciting customer needs and required functionality early in the development cycle, documenting requirements, then proceeding with design synthesis and system validation while considering the complete problem, the system lifecycle. This includes fully understanding all of the stakeholders involved. Here the focus is on delivering the best product for the relevant stakeholders involved, not necessarily managing the complexity of the product.

To manage complexity, we have always used models. The weather forecast is based on models, the profitability of a business is based on models, and the behavior of a product can be predicted and analyzed using models. This is Model-Based Systems Engineering MBSE), and I wrote a lot about the Model-Based approach last year. Read The road to model-based and connected PLM

When it comes to extending the support for different stakeholders, we have seen the example of the BIC ballpoint.

However, when we start to talk about sustainability, we will see that by enlarging the number of stakeholders and their importance, we observe another way of Systems Thinking.

Systems thinking and sustainability

The title of this post is related to the challenges we have with sustainability, our society and even our planet. Currently, reducing carbon emissions gets the highest priority as we see the impact on our planet. Perhaps the awareness is not the same for everyone; the richer you are, the less you might feel impacted by climate change. Still, indisputably it is happening as the IPCC is reporting.

Now let’s look at the relation between systems thinking and sustainability.

Let’s imagine I work for a tier 2 or tier 3 supplier of an OEM. This means the OEM wants a component for their solution with the highest quality and the lowest price.

In the traditional approach, the supplier will try to find the cheapest materials that match the required quality. They will look for the most inexpensive manufacturing process to build their component. Everything extra will reduce their chances of remaining the OEM contractor and profitable. The only stakeholder in this process is the OEM and potentially some existing regulations. For example, ROHS controls the usage of hazardous materials.

Next, imagine a supplier that wants to be more sustainable. They will add sustainability requirements to their component design. They start to treat their product as a system. What would be the difference between choosing material A over material B or choosing production process ABC over production Process XYZ?

If it is up to the OEM, it is only costs, quality and compliance. Suppose the supplier will select an alternative material that has less impact on the environment. For example, recycling or needing less energy (carbon emissions) is easier to produce. In that case, this option might be more expensive. It is up to the OEM to decide if they accept this higher cost price to be more sustainable with their products.

To understand the sustainability of a product, we need to dive into a full Life Cycle Assessment (LCA). LCA is at the heart of PLM.

When a product or component is designed, the LCA will give you the information related to the impact of your product, assuming you have the accurate data to make the assessment. This is currently one of the major areas to focus on when it comes to sustainability – how can we measure the environmental impact of each part through its whole lifecycle.

With sustainability, the needs are no longer defined by the OEM. Other stakeholders, like authorities and consumers, will also have an impact. Realistically, we will see that mainly regulations will be the biggest driver towards sustainability as consumers still want the lowest price.

Currently, we see this behavior with the rising energy prices. Unfortunately, people complain about the price instead of realizing the price has always been too low. Changing behavior (energy consumption) might be the best path for the future, but that is more difficult than complaining.

Systems Thinking and the Circular Economy

Finally, I want to mention one topic closely related to Systems Thinking and Sustainability: the Circular Economy. The Circular Economy is well explained by the Ellen McArthur Foundation. Follow the link and get educated as the Circular Economy is about a system. A system that tries to minimize the leakage of resources and the need for new raw materials. Each loop is a process to consider.

With the PLM Global Green Alliance, we discussed the circular economy together with Darren West from SAP in our session: PLM and Sustainability: talking with SAP. I hope and trust we will learn more about companies to follow the principle of a circular economy.

Want to learn more?

There is so much more to say about Systems Thinking in general, and I will come back to this topic in a future post. Meanwhile, I recommend this post for all of you who want to learn more about systems thinking and sustainability: Systems Thinking can help build a sustainable world:  A Beginning Conversation from the MAHB (Millennium Alliance for Humanity and the Biosphere). There is so much to learn and discuss if you are actively looking for it.

Conclusions

Systems Thinking is needed to solve the issues in a complex society. It is an attitude, not a new approach. Systems Thinking helps to manage a complex system, it helps to address sustainability, and it helps fight against populism. Simple answers do not exist – looking to the bigger picture, using systems thinking will make you better informed wherever you are on this limited planet

War is a place where young people who don’t know each other, and don’t hate each other, kill each other, by the decision of old people who know each other, and hate each other, but don’t kill each other…”

 

Three weeks ago, we published our first PLM Global Green Alliance interview discussing the relationship between PLM and Sustainability with the main vendors. We talked with Darren West from SAP.

You can find the interview here: PLM and Sustainability: talking with SAP.

When we published the interview, it was also the moment a Russian dictator started the invasion of Ukraine, making it difficult for me to focus on our sustainability mission, having friends in both countries.

Now, three weeks later, with even more horrifying news coming from Ukraine, my thoughts are with the heroic people there, who resist and fight for their lives to exist. And it is not only in Ukraine. Also, people suffering under other totalitarian regimes are fighting this unfair battle.

Meanwhile, another battle that concerns us all might get stalled if the conflict in Ukraine continues. This decade requires us to focus on the transition towards a sustainable planet, where the focus is on reducing carbon emissions. It is clear from the latest IPPC report: Impacts Adaptation and Vulnerability that we need to act.

Autodesk

Therefore, I am happy we can continue our discussion on PLM and Sustainability, this time with Autodesk. In the conversation with SAP, we discovered SAP’s strength lies in measuring the environmental impact of materials and production processes. However, most (environmental) impact-related decisions are made before the engineering & design phase.

Autodesk is a well-known software company in the Design & Manufacturing industry and the AEC (Architecture, Engineering and Construction) industry.

Autodesk was open to sharing its sustainability activities with us. So we spoke with Zoé Bezpalko, Autodesk’s Sustainability Strategy Manager for the Design & Manufacturing Industries,  and Jon den Hartog, Product Manager for Autodesk’s PDM and PLM solutions. So we were talking with the right persons for our PLM Global Green Alliance.

Watch the 30 minutes recording below, learn more about Autodesk’s sustainability goals and offerings and get motivated to (re)act.

The slides shown in this presentation can be downloaded HERE

What we have learned

The interview showed that Autodesk is actively working on a sustainable future. Both by acting internally, but, and even more important, by helping their customers to have a positive impact, using technologies like generative design and more environmentally friendly building projects. We talked about the renovation project of our famous Dutch Afsluitdijk.

The second observation is that Autodesk is working on empowering the designer to make better decisions regarding material usage or reuse. Life Cycle Assessment done by engineers will be a future required skill. As we discussed, this bottom-up user empowerment should be combined with a company strategy.

Want to learn more?

As you can see from the image shown in the recording, there is a lot to learn about Autodesk Forge. Click on the image for your favorite link, or open the PDF connected to the recording for your sustainability plans.

And there is the link to the Autodesk sustainability hub: Autodesk.com/sustainability

Conclusion

This was a motivating session to see Autodesk acting on Sustainability, and they are encouraging their customers to act.

It is necessary that companies and consumers get motivated and supported for more sustainable products and activities. We look forward to coming back with Autodesk in a second round with the PLM vendors to discover and discuss progress.

Sustainability has been already a topic on my agenda for many years. So when Rich McFall asked me to start the PLM Global Green Alliance (PGGA) in 2018, I supported that initiative. You can read more about my PLM and Sustainability ideas in this post here.

I have been lecturing about the relation between PLM and Sustainability last year. In 2018, the PGGA was a niche alliance trying to find people who would like to work and share PLM-related practices with others for a greener and sustainable planet.

Thanks to, or actually due to, the pandemic, climate disasters and the return of the US supporting the Paris Climate agreements, it became clear companies need to act. And preferably as soon as possible, which led to sustainability activities in many companies.

Also, the main PLM vendors started to publish their support and vision for a sustainable future, the area where we believe the PGGA can contribute in spreading the practices and experiences.

For that reason, the PGGA is aiming this year to have a series of discussions with the main PLM Vendors and their sustainability programs.

SAP

This time we are happy to publish an interview with Darren West from SAP. Darren West is the product management lead for SAP’s Circular Economy solutions. His role is to work with customers, sales and pre-sales colleagues, partners, solutions teams and product owners to expand existing and build new sustainability products, particularly those impacting Circular Economy topics.

We are glad to speak with Darren, as we believe sustainability and the circular economy go hand in hand and it requires systems thinking. We believe SAP, strong in managing materials and manufacturing processes, should be a leader in providing insights in ESG reporting. Helping companies to improve their environmental impact of products and production processes as they have the data.

Have a look at this 34 minutes interview and discussion with Darren West

The slides shown in this recording can be found  here: Circular Economy -SAP for PLM Green Alliance

What we have learned

The interview showed that SAP is actively working on a sustainable future. Both by acting by themselves, but even more important, by helping their customers to change to more sustainable designs and production methods. There is still a way to go and we do not have too much time to sit back. The power of the current SAP Responsible Design and Production module is that it allows companies to understand their environmental impact and improve where possible. This is step 1 in my opinion to find a way to create sustainable products and business models.

The second, more general observation, is that we need to make our full product lifecycle management digital and connected. Data-driven is the only way to have efficient processes to estimate and calculate our environmental impact – my favorite From Coordinated to Connected topic.

Want to learn more?

In the context of this recording, Daren shared the following links for those of you who got inspired by the discussion (in alphabetical order):

Conclusion

This was a motivating session to see PLM-related vendors are taking action. Next time, you will learn more from the design side when we talk with Autodesk about their sustainability program.

Unfortunately the day after this motivating session we were shocked by the invasion of Ukraine by Russia.  So I am in a mixed mood, as having friends in both countries makes me realize that one dictator can kill people and hope.

Listen to president Zelensky’s speech to the Russian people and get inspired to act against any brainwashing or dictatorship. To my friends and readers, wherever you are, stay strong, informed and human.


 

After two quiet weeks of spending time with my family in slow motion, it is time to start the year.

First of all, I wish you all a happy, healthy, and positive outcome for 2022, as we need energy and positivism together. Then, of course, a good start is always cleaning up your desk and only leaving the relevant things for work on the desk.

Still, I have some books at arm’s length, either physical or on my e-reader, that I want to share with you – first, the non-obvious ones:

The Innovators Dilemma

A must-read book was written by Clayton Christensen explaining how new technologies can overthrow established big companies within a very short period. The term Disruptive Innovation comes up here. Companies need to remain aware of what is happening outside and ready to adapt to your business. There are many examples even recently where big established brands are gone or diminished in a short period.

In his book, he wrote about DEC (Digital Equipment Company)  market leader in minicomputers, not having seen the threat of the PC. Or later Blockbuster (from video rental to streaming), Kodak (from analog photography to digital imaging) or as a double example NOKIA (from paper to market leader in mobile phones killed by the smartphone).

The book always inspired me to be alert for new technologies, how simple they might look like, as simplicity is the answer at the end. I wrote about in 2012: The Innovator’s Dilemma and PLM, where I believed cloud, search-based applications and Facebook-like environments could disrupt the PLM world. None of this happened as a disruption; these technologies are now, most of the time, integrated by the major vendors whose businesses are not really disrupted. Newcomers still have a hard time to concur marketspace.

In 2015 I wrote again about this book, The Innovator’s dilemma and Generation change. – image above. At that time, understanding disruption will not happen in the PLM domain. Instead, I predict there will be a more evolutionary process, which I would later call: From Coordinated to Connected.

The future ways of working address the new skills needed for the future. You need to become a digital native, as COVID-19 pushed many organizations to do so. But digital native alone does not bring success. We need new ways of working which are more difficult to implement.

Sapiens

The book Sapiens by Yuval Harari made me realize the importance of storytelling in the domain of PLM and business transformation. In short, Yuval Harari explains why the human race became so dominant because we were able to align large groups around an abstract theme. The abstract theme can be related to religion, the power of a race or nation, the value of money, or even a brand’s image.

The myth (read: simplified and abstract story) hides complexity and inconsistencies. It allows everyone to get motivated to work towards one common goal. A Yuval says: “Fiction is far more powerful because reality is too complex”.

Too often, I have seen well-analyzed PLM projects that were “killed” by management because it was considered too complex. I wrote about this in 2019  PLM – measurable or a myth? claiming that the real benefits of PLM are hard to predict, and we should not look isolated only to PLM.

My 2020 follow-up post The PLM ROI Myth, eludes to that topic. However, even if you have a soundproof business case at the management level, still the myth might be decisive to justify the investment.

That’s why PLM vendors are always working on their myths: the most cost-effective solution, the most visionary solution, the solution most used by your peers and many other messages to influence your emotions, not your factual thinking. So just read the myths on their websites.

If you have no time to read the book, look at the above 2015 Ted to grasp the concept and use it with a PLM -twisted mind.

Re-use your CAD

In 2015, I read this book during a summer holiday (meanwhile, there is a second edition). Although it was not a PLM book, it was helping me to understand the transition effort from a classical document-driven enterprise towards a model-based enterprise.

Jennifer Herron‘s book helps companies to understand how to break down the (information) wall between engineering and manufacturing.

At that time, I contacted Jennifer to see if others like her and Action Engineering could explain Model-Based Definition comprehensively, for example, in Europe- with no success.

As the Model-Based Enterprise becomes more and more the apparent future for companies that want to be competitive or benefit from the various Digital Twin concepts. For that reason, I contacted Jennifer again last year in my post: PLM and Model-Based Definition.

As you can read, the world has improved, there is a new version of the book, and there is more and more information to share about the benefits of a model-based approach.

I am still referencing Action Engineering and their OSCAR learning environment for my customers. Unfortunately, many small and medium enterprises do not have the resources and skills to implement a model-based environment.

Instead, these companies stay on their customers’ lowest denominator: the 2D Drawing. For me, a model-based definition is one of the first steps to master if your company wants to provide digital continuity of design and engineering information towards manufacturing and operations. Digital twins do not run on documents; they require model-based environments.

The book is still on my desk, and all the time, I am working on finding the best PLM practices related to a Model-Based enterprise.

It is a learning journey to deal with a data-driven, model-based environment, not only for PLM but also for CM experts, as you might have seen from my recent dialogue with CM experts: The future of Configuration Management.

Products2019

This book was an interesting novelty published by John Stark in 2020. John is known for his academic and educational books related to PLM. However, during the early days of the COVID-pandemic, John decided to write a novel. The novel describes the learning journey of Jane from Somerset, who, as part of her MBA studies, is performing a research project for the Josef Mayer Maschinenfabrik. Her mission is to report to the newly appointed CEO what happens with the company’s products all along the lifecycle.

Although it is not directly a PLM book, the book illustrates the complexity of PLM. It Is about people and culture; many different processes, often disconnected. Everyone has their focus on their particular discipline in the center of importance. If you believe PLM is all about the best technology only, read this book and learn how many other aspects are also relevant.

I wrote about the book in 2020: Products2019 – a must-read if you are new to PLM if you want to read more details. An important point to pick up from this book is that it is not about PLM but about doing business.

PLM is not a magical product. Instead, it is a strategy to support and improve your business.

System Lifecycle Management

Another book, published a little later and motivated by the extra time we all got during the COVID-19 pandemic, was Martin Eigner‘s book System Lifecycle Management.

A 281-page journey from the early days of data management towards what Martin calls System Lifecycle Management (SysLM). He was one of the first to talk about System Lifecycle Management instead of PLM.

I always enjoyed Martin’s presentations at various PLM conferences where we met. In many ways, we share similar ideas. However, during his time as a professor at the University of Kaiserslautern (2003-2017), he explored new concepts with his students.

I briefly mentioned the book in my series The road to model-based and connected PLM (Part 5) when discussing SLM or SysLM. His academic research and analysis make this book very valuable. It takes you in a very structured way through the times that mechatronics becomes important, next the time that systems (hardware and software) become important.

We discussed in 2015 the applicability of the bimodal approach for PLM. However, as many enterprises are locked in their highly customized PDM/PLM environments, their legacy blocks the introduction of modern model-based and connected approaches.

Where John Stark’s book might miss the PLM details, Martin’s book brings you everything in detail and with all its references.

It is an interesting book if you want to catch up with what has happened in the past 20 years.

More Books …..

More books on my desk have helped me understand the past or that helped me shape the future. As this is a blog post, I will not discuss more books this time reaching my 1500 words.

Still books worthwhile to read – click on their images to learn more:

I discussed this book two times last year. An introduction in PLM and Modularity and a discussion with the authors and some readers of the book: The Modular Way – a follow-up discussion

x

x

A book I read this summer contributed to a better understanding of sustainability. I mentioned this book in my presentation for the Swedish CATIA Forum in October last year – slide 29 of The Challenges of model-based and traditional plm. So you could see it as an introduction to System Thinking from an economic point of view.

System Thinking becomes crucial for a sustainable future, as I addressed in my post PLM and Sustainability.

Sustainability is my area of interest at the PLM Green Global Alliance, an international community of professionals working with Product Lifecycle Management (PLM) enabling technologies and collaborating for a more sustainable decarbonized circular economy.

Conclusion

There is a lot to learn. Tell us something about your PLM bookshelf – which books would you recommend. In the upcoming posts, I will further focus on PLM education. So stay tuned and keep on learning.

After all my writing about The road to model-based and connected PLM, a topic that interests me significantly is the positive contribution real PLM can have to sustainability.

To clarify this statement, I have to explain two things:

  • First, for me, real PLM is a strategy that concerns the whole product lifecycle from conception, creation, usage, and decommissioning.

Real PLM to articulate the misconception that PLM is considered as an engineering infrastructure of even system. We discussed this topic related to this post (7 easy tips nobody told you about PLM adoption) from my SharePLM peers.

  • Second, sustainability should not be equated with climate change, which gets most of the extreme attention.

However, the discussion related to climate change and carbon gas emissions drew most of the attention. Also, recently it seemed that the COP26 conference was only about reducing carbon emissions.

Unfortunately, reducing carbon gas emissions has become a political and economic discussion in many countries. As I am not a climate expert, I will follow the conclusions of the latest IIPC report.

However, I am happy to participate in science-based discussions, not in conversations about failing statistics (lies, damned lies and statistics) or the mixture of facts & opinions.

The topic of sustainability is more extensive than climate change. It is about understanding that we live on a limited planet that cannot support the unlimited usage and destruction of its natural resources.

Enough about human beings and emotions, back to the methodology

Why PLM and Sustainability

In the section PLM and Sustainability of the PLM Global Green Alliance website,  we explain the potential of this relation:

The goals and challenges of Product Lifecycle Management and Sustainability share much in common and should be considered synergistic. Where in theory, PLM is the strategy to manage a product along its whole lifecycle, sustainability is concerned not only with the product’s lifecycle but should also address sustainability of the users, industries, economies, environment and the entire planet in which the products operate.

If you read further, you will bump on the term System Thinking. Again there might be confusion here between Systems Thinking and Systems Engineering. Let’s look at the differences

Systems Engineering

For Systems Engineering, I use the traditional V-shape to describe the process. Starting from the Needs on the left side, we have a systematic approach to come to a solution definition at the bottom. Then going upwards on the right side, we validate step by step that the solution will answer the needs.

The famous Boeing “diamond” diagram shows the same approach, complementing the V-shape with a virtual mirrored V-shape. In this way providing insights in all directions between a virtual world and a physical world. This understanding is essential when you want to implement a virtual twin of one of the processes/solutions.

Still, systems engineering starts from the needs of a group of stakeholders. So it works to the best technical and beneficial solution, most of the time only measured by money.

System Thinking

The image below from the Ellen McArthur Foundation is an example of system thinking. But, as you can see, it is not only about delivering a product.

Systems Thinking is a more holistic approach to bringing products to the market. It is about how we deliver a product to the market and what happens during its whole life cycle. The drivers for system thinking, therefore, are not only focusing on product performance at the most economical price, but we also take into account the impact on resource extraction in the world, the environmental impact during its active life (more and more regulated) and ultimately also how to minimize the waste to the eco-system. This means more recycling or reuse.

If you want to read more about systems thinking more professionally, read this blog post from the Millennium Alliance for Humanity and the Biosphere (MAHB) related to Systems Thinking: A beginning conversation.

Product as a Service (PaaS)

To ensure more responsibility for the product lifecycle, one of the European Green Deal aspects is promoting Product as a Service. There is already a trend towards products as a service, and I mentioned Ken Webster’s presentation at the PLM Roadmap & PDT Fall 2021 conference: In the future, you will own nothing, and you will be happy.

Because if we can switch to such an economy, the manufacturer will have complete control over the product’s lifecycle and its environmental impact. The manufacturer will be motivated to deliver product upgrades, create repairable products instead of dumping old or broken stuff because this is cheap for selling. PaaS brings opportunities for manufacturers, like greater customer loyalty, but also pushes manufacturers to stay away from so-called “greenwashing”. They become fully responsible for the entire lifecycle.

A different type of growth

The concept of Product as a Service is not something that typical manufacturing companies endorse. Instead, it requires them to restructure their business and restructure their product.

Delivering a Product as a Service requires a fast feedback loop between the products in the field and R&D deciding on improving or adding new features.

In traditional manufacturing companies, the service department is far from engineering due to historical reasons. However, with the digitization of our product information and connected products, we should be able to connect all stakeholders related to our products, even our customers.

A few years ago, I was working with a company that wanted to increase their service revenue by providing maintenance as a service on their products on-site. The challenge they had was that the total installation delivered at the customer site was done through projects. There was some standard equipment in their solution; however, ultimately, the project organization delivered the final result, and product information was scattered all around the company.

There was some resistance when I proposed creating an enterprise product information backbone (a PLM infrastructure) with aligned processes.  It would force people to work upfront in a coordinated manner. Now with the digitization of operations, this is no longer a point of discussion.

In this context, I will participate on December 7th in an open panel discussion Creating a Digital Enterprise: What are the Challenges and Where to Start? As part of the PI DX spotlight series. I invite you to join this event if you are interested in hearing various digital enterprise viewpoints.

Doing both?

As companies cannot change overnight, the challenge is to define a transformation path. The push for transformation for sure will come from governments and investors in the following decades. Therefore doing nothing is not a wise strategy.

Early this year, the Boston Consultancy Group published this interesting article: The Next Generation of Climate Innovation, showing different pathways for companies.

A trend that they highlighted was the fact that Shareholder Returns over the past ten years are negative for the traditional Oil & Gas and Construction industries (-18 till -6 %). However, the big tech and first generation of green industries provide high shareholders returns (+30 %), and the latest green champions are moving in that direction. In this way, promoting investors will push companies to become greener.

The article talks about the known threat of disrupters coming from outside. Still, it also talks about the decisions companies can make to remain relevant. Either you try to reduce the damage, or you have to innovate. (Click on the image below on the left).

As described before, innovating your business is probably the most challenging part. In particular, if you have many years of history in your industry. Processes and people are engraved in an almost optimal manner (for now).

An example of reducing the damage could be, for example, what is happening in the steel industry. As making steel requires a lot of (cheap) energy, this industry is powered by burning coal. Therefore, an innovation to reduce the environmental impact would be to redesign the process with green energy as described in this Swedish example: The first fossil-free production of steel.

On December 9th, I will discuss both strategies with Henrik Hulgaard from Configit. We will discuss how Product Lifecycle Management and Configuration Lifecycle Management can play a role in the future. Feel free to subscribe to this session and share your questions. Click on the image to see the details.

Note:  you might remember Henrik from my earlier post this year in January: PLM and Product Configuration Management (CLM)

Conclusion

Sustainability is a topic that will be more and more relevant for all of us, locally and globally. Real PLM, covering the whole product lifecycle, preferably data-driven, allows companies to transform their current business to future sustainable business. Systems Thinking is the overarching methodology we have to learn – let’s discuss

This week I attended the PLM Roadmap & PDT Fall 2021 with great expectations based on my enthusiasm last year. Unfortunately, the excitement was less this time, and I will explain in my conclusions why. This time it was unfortunate again a virtual event which makes it hard to be interactive, something I realize I am missing a lot.

Over two hundred attendees connected for the two days, and you can find the agenda here. Typically I would discuss the relevant sessions; now, I want to group some of them related to a theme, as there was complementary information in these sessions.

Disruption

Again like in the spring, the theme was focusing on DISRUPTION. The word disruption can give you an uncomfortable feeling when you are not in power. It is more fun to disrupt than to be disrupted, as I mentioned in my spring presentation. Read The week after PLM Roadmap & PDT Spring 2021

In his keynote speech Peter Bilello (CIMdata) kicked off with: The Critical Dozen: 12 familiar, evolving trends and enablers of digital transformation that you cannot or should not live without.

You can see them on the slide below:

I believe many of them should be familiar to you as these themes have been “in the air” already for quite some time. Vendors first and slowly companies start to investigate them when relevant. You will find many of them back in my recent series: The road to model-based and connected PLM, where I explored the topics that would cross your path on that journey.

Like Peter said: “For most of the topics you cannot pick and choose as they are all connected.”

Another interesting observation was that we are more and more moving away from the concept of related structures (digital thread) but more to connected datasets (digital web). Marc Halpern first introduced this topic last year at the 2020 conference and has become an excellent image to frame what we should imagine in a connected world.

Digital web also has to do with the uprise of the graph database mentioned by Peter Bilello as a potentially disruptive technology during the fireside chat. Relational databases can be seen as rigid, associated with PLM structures. On the other hand, graph databases can be associated with flexible relations between different types of data – the image of the digital web.

Where Peter was mainly telling WHAT was happening, two presentations caught my attention because of the HOW.

First of all, Dr. Rodney Ewing (Cummins) ‘s session: A Balanced Strategy to Reap Continuous Business Value from Digital PLM was a great story of a transformational project. It contained both having a continuous delivery of business value in mind while moving to the connected enterprise.

As Rodney mentioned, the contribution of TCS was crucial here, which I can imagine. It is hard for a company to understand what is happening in the outside (PLM) world when applying it to your company. Their transformation roadmap is an excellent example of having the long-term vision in mind, meanwhile delivering value during the transformation.

Talking about the right partner and synergy, the second presentation I liked in this context of disruption was Ian Quest’s presentation (Quick Release): Open-source Disruption in Support of Audacious Goals. As a sponsor of the conference, they had ten minutes to pitch their area of expertise.

After Ian’s presentation, focused on audacious goals (for non-English natives translated as “brave” goals), there was only one word that stuck to my mind: pragmatic.

Instead of discussions about the complexity, Ian gave examples of where a pragmatic data-centric approach could lead to great benefits, as you can see from one of the illustrated benefits below:

Standards

A characteristic topic of this conference is that we always talk about standards. Torbjörn Holm (Eurostep) gave an excellent overview of where standards have led to significant benefits. For example, the containerization of goods has dramatically improved transportation of goods (we all benefit) while killing proprietary means of transport (trains, type of ships, type of unloading).  See the image below:

Torbjörn rightfully expanded this story to the current situation in the construction industry or the challenges for asset operators. Unfortunately, in these practices, many content suppliers remain focusing on their unique capabilities, reluctantly neglecting the demand for interoperability among the whole value chain.

It is a topic Marc Halpern also mentioned last year as an outcome of their Gartner PLM benefits survey. Gartner’s findings:

Time to Market is not so much improved by using PLM as the inefficient interaction with suppliers is the impediment.

Like transport before containerization, the exchange of information is not standardized and designed for digital exchange. Torbjorn believes that more and more companies will insist on exchange standards –  like CHIFOS – an ISO1596-derived exchange standard in the process industry. It is a user-driven standard, the best standard.

In this context, the presentation from Kenny Swope (Boeing) and Jean Yves Delaunay (Airbus) The Business Value of Standards-based Information Interoperability for Aerospace & Defense illustrated this fact.

While working for competitors, the Aerospace industry understands the criticality of standards to become more efficient and less vendor-dependent.  In the aerospace & defense group, they discuss these themes. The last year’s 2020 Fall sessions showed the results. You can read their publications here

The A&D PLM action group uses the following framework when evaluating standards – as you can see on the image below:

The result – and this is a combined exercise of many participating experts from the field; this is their recommendation:

To conclude:
People often complain about standards, framed by proprietary data format vendors, that they lead to a rigid environment, blocking agility.

In reality, standards allow companies to be more agile as the (proprietary) data flow is less an issue. Remember the containerization example.

Sustainability and System Thinking

This conference has always been known for its attention to the circular economy and green thinking. In the past, these topics might have been considered disconnected from our PLM practices; now, they have become a part of everyone’s mission.

Two presentations stood out on this topic for me. First, Ken Webster, with his keynote speech: In the future, you will own nothing and you will be happy was a significant oversight of how we as consumers currently are disconnected from the circular economy. His plea, as shown below, for making manufacturers responsible for the legal ownership of the materials in the products they deliver would impact consumer behavior.

Product as a Service (PaaS) and new ways to provide a service is becoming essential. For example, buildings as power stations, as they are a place to collect solar or wind energy?

His thoughts are aligned with what is happening in Europe related to the European Green Deal (not in his presentation). There is a push for a PaaS model for all products as this would be an excellent stimulant for the circular economy.  PaaS combined with a Digital Product Passport – more on that next year.

Making upgrades to your products has less impact on the environment than creating new products to sell (and creating waste of the old product).  Ken Webster was an interesting statement about changing the economy – do we want to own products or do we want to benefit from the product and leave the legal ownership to the manufacturer.

A topic I discussed in the PLM Roadmap & PDT Conference Spring 2021 – look here at slide 11

Patrick Hillberg‘s presentation Rising to the challenge of engineering and optimizing . . . what?  was the one closest to my heart. We discussed Sustainability and Systems Thinking with Patrick in our PLM Global Green Alliance, being pretty aligned on this topic.  Patrick started by explaining the difference between Systems Engineering and Systems Thinking. Looking at the product go-to-market of an organization is more than the traditional V-model. Economic pressure and culture will push people to deviate from the ideal technological plan due to other priorities.

Expanding on this observation, Partick stated that there are limits to growth, a topic discussed by many people involved in the sustainable economy. Economic growth is impossible on a limited planet, and we have to take more dimensions into account. Patrick gave some examples of that, including issues related to the infamous Boeing 737 Max example.

For Patrick, the COVID-pandemic is the end of the old 2nd Industrial Revolution and a push for a new Fourth Industrial Revolution, which is not only technical, as the slide below indicates.

With Patrick, I believe we are at a decisive moment to disrupt ourselves, reconsider many things we do and are used to doing. Even for PLM practitioners, this is a new path to go.

Data

There were two presentations related to digitization and the shift from document-based to a data-driven approach.

First, there was Greg Weaver (Gulfstream) with his presentation Indexing Content – Finding Your Needle in the Haystack. Greg explained that by using indexation of existing document-based information combined with a specific dashboard, they could provide fast access to information that otherwise would have been hidden in so many document or even paper archives.

It was a pragmatic solution, making me feel nostalgic seeing the SmarTeam profile cards. It was an excellent example of moving to a digital enterprise, and Gulfstream has always been a front runner on this topic.

Warning: Don’t use this by default at home (your company). The data in a regulated industry like Aerospace is expected to be of high quality due to the configuration management processes in place. If your company does not have a strong CM practice, the retrieved data might be inaccurate.

Martijn Dullaart (ASML)’s presentation The Next disruption, please…..  was the next step into the future. With his statement “No CM = No Trust,” he made an essential point for data-driven environments.

There is a need for Configuration Management, and I touched on this topic in my last post: The road to model-based and connected PLM (part 9 – CM).

Martijn’s presentation can also be found on his blog here, and I encourage you to read it (saving me copy & paste text). It was interesting to see that Martijn improved his CM pyramid, as you can see, more discipline and activity-oriented instead of a system view. With Martijn and others, I will elaborate on this topic soon.

Conclusion

This has been an extremely long post, and thanks for reading until the end. Many interesting topics were presented at the conference. I was less excited this time because many of these topics are triggers for a discussion. Innovation comes from meeting people with different backgrounds. In a live conference, you would meet during the break or during the famous dinner. How can we ensure we follow up on all this interesting information.

Your thoughts? Contact me for a Corona Friday discussion.

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