One year ago, I wrote the post: Time to Split PLM, which reflected a noticeable trend in 2022 and 2023.
If you still pursue the Single Source of Truth or think that PLM should be supported by a single system, the best you can buy, then you are living in the past.
It is now the time to move from a Monolithic PLM Landscape to a Federated Domain and Data Mesh (Yousef Hooshmand) or the Heliple Federated PLM project (Erik Herzog) – you may have read about these concepts.
When moving from a traditional coordinated, document-driven business towards a modern, connected, and data-driven business, there is a paradigm shift. In many situations, we still need the document-driven approach to manage baselines for governance and traceability, where we create the required truth for manufacturing, compliance, and configuration management.
However, we also need an infrastructure for multidisciplinary collaboration nowadays. Working with systems, a combination of hardware and software, requires a model-based approach and multidisciplinary collaboration. This infrastructure needs to be data-driven to remain competitive despite more complexity, connecting stakeholders along value streams.
Traditional PLM vendors still push all functionality into one system, often leading to frustration among the end-users, complaining about lack of usability, bureaucracy, and the challenge of connecting to external stakeholders, like customers, suppliers, design or service partners.
Systems of Engagement
It is in modern PLM infrastructures where I started the positioning of Systems or Record (the traditional enterprise siloes – PDM/PLM, ERP, CM) and the Systems of Engagement (modern environments designed for close to real-time collaboration between stakeholders within a domain/value stream). In the Heliple project (image below), the Systems of Record are the vertical bars, and the Systems of Engagement are the horizontal bars.
The power of a System of Engagement is the data-driven connection between stakeholders even when working in different enterprises. Last year, I discussed with Andre Wegner from Authentise, MJ Smith from CoLab, and Oleg Shilovitsky from OpenBOM.
They all focus on modern, data-driven, multidisciplinary collaboration. You can find the discussion here: The new side of PLM? Systems of Engagement!
Where is the money?
Business leaders usually are not interested in a technology or architectural discussion – too many details and complexity, they look for the business case. Look at this recent post and comments on LinkedIn – “When you try to explain PLM to your C-suite, and they just don’t get it.”
It is hard to build evidence for the need for systems of engagement, as the concepts are relatively new and experiences from the field are bubbling up slowly. With the Heliple team, we are now working on building the business case for Federated PLM in the context of the Heliple project scope.
Therefore, I was excited to read the results of this survey: Quantifying the impact of design review methods on NPD, a survey among 250 global engineering leaders initiated by CoLab.
CoLab is one of those companies that focus on providing a System of Engagement, and their scope is design collaboration. In this post, I am discussing the findings of this survey with Taylor Young, Chief Strategy Officer of CoLab.
CoLab – the company /the mission
Taylor, thanks for helping me explain the complementary value of CoLab based on some of the key findings from the survey. But first of all, can you briefly introduce CoLab as a company and the unique value you are offering to your clients?
Hi Jos, CoLab is a Design Engagement System – we exist to help engineering teams make design decisions.
Product decision-making has never been more challenging – or more essential – to get right – that’s why we built CoLab. In today’s world of product complexity, excellent decision-making requires specialized expertise. That means decision-making is no longer just about people engaging with product data – it’s about people engaging with other people.
PLM provides a strong foundation where product data is controlled (and therefore reliable). But PLM has a rigid architecture that’s optimized for data (and for human-to-data interaction). To deal with increased complexity in product design, engineers now need a system that’s built for human-to-human interaction complimentary to PLM.
CoLab allows you to interrogate a rich dataset, even an extended team, outside your company borders in real-time or asynchronously. With CoLab, decisions are made with context, input from the right people, and as early as possible in the process. Reviews and decision-making get tracked automatically and can be synced back to PLM. Engineers can do what they do best, and CoLab will support them by documenting everything in the background.
Design Review Quality
It is known that late-stage design errors are very costly, both impacting product launches and profitability. The report shows design review quality has been rated as the #1 most important factor affecting an engineering team’s ability to deliver projects on time.
Is it a severe problem for companies, and what are they trying to do to improve the quality of design reviews? Can you quantify the problem?
Our survey report demonstrated that late-stage design errors delay product launches for 90% of companies. The impact varies significantly from organization to organization, but we know that for large manufacturing companies, just one late-stage design error can be a six to seven-figure problem.
There are a few factors that lead to a “quality” design review – some of the most important ones we see leading manufacturing companies doing differently are:
- Who they include – the highest performing teams include manufacturing, suppliers, and customers within the proper context.
- When they happen – the highest performing teams focus on getting CAD to these stakeholders early in the process (during detailed design) and paralleling these processes (i.e., they don’t wait for one group to sign off before getting early info to the next)
- Rethinking the Design Review meeting – the highest performing teams aren’t having issue-generation meetings – they have problem-solving meetings. Feedback is collected from a broad audience upfront, and meetings are used to solve nuanced problems – not to get familiar with the project for the first time.
Multidisciplinary collaboration
An interesting observation is that providing feedback to engineers mainly comes from peers or within the company. Having suppliers or customers involved seems to be very difficult. Why do you think this is happening, and how can we improve their contribution?
When we talk to manufacturing companies about “collaboration” or how engineers engage with other engineers – however good or bad the processes are internally, it almost always is significantly more challenging/less effective when they go external. External teams often use different CAD systems, work in different time zones, speak other first languages, and have varying levels of access to core engineering information.
However, as we can read from the HBR article What the Most Productive Companies Do Differently, we know that the most productive manufacturing companies “collaborate with suppliers and customers to form new ecosystems that benefit from agglomeration effects and create shared pools of value”.
They leverage the expertise of their suppliers and customers to do things more effectively. But manufacturing companies struggle to create engaging, high-value, external collaboration and ‘co-design’ without the tools purpose-built for person-to-person external communication.
Traceability and PLM
One of the findings is that keeping track of the feedback and design issues is failing in companies. One of my recommendations from the past was to integrate Issue management into your PLM systems – why is this not working?
We believe that the task of completing a design review and the task of documenting the output of that review should not be two separate efforts. Suppose we are to reduce the amount of time engineers spend on admin work and decrease the number of issues that are never tracked or documented (43%, according to our survey).
In that case, we need to introduce a purpose-built, engaging design review system that is self-documenting. It is crucial for the quality of design reviews that issues aren’t tracked in a separate system from where they are raised/developed, but that instead, they are automatically tracked just by doing the work.
Learn More?
Below is the recording of a recent webinar, where Taylor said that your PLM alone isn’t enough: Why you need a Design Engagement System during product development.
- A traditional PLM system is the system of record for product data – from ideation through sustaining engineering.
- However one set of critical data never makes it to the PLM. For many manufacturing companies today, design feedback and decisions live almost exclusively in emails, spreadsheets, and PowerPoint decks. At the same time, 90% of engineering teams state that product launches are delayed due to late-stage changes.
- Engineering teams need to implement a true Design Engagement System (DES) for more effective product development and a more holistic digital thread.
Conclusion
Traditional PLM systems have always been used to provide quality and data governance along the product lifecycle. However, most end users dislike the PLM system as it is a bureaucratic overhead to their ways of working. CoLab, with its DES solution, provides a System of Engagement focusing on design reviews, speed, and quality of multidisciplinary collaboration complementary to the PLM System of Record – a modern example of how digitization is transforming the PLM domain.






Another year passed, and as usual, I took the time to look back. I always feel that things are going so much slower than expected. But that’s reality – there is always friction, and in particular, in the PLM domain, there is so much legacy we cannot leave behind.





The transformation from a coordinated, document-driven enterprise towards a hybrid coordinated/connected enterprise using a data-driven approach became increasingly visible in 2023. I expect this transformation to grow faster in 2024 – the momentum is here.


From the people’s perspective towards AI, DATA and SUSTAINABILITY, there is a noticeable divide between generations. Of course, for the sake of the article, I am generalizing, assuming most people do not like to change their habits or want to reprogram themselves.
For people living in this mindset, AI can become a significant threat, as their brain is no longer needed to make a judgment, and they are not used to differentiate between facts and fake news as they were never trained to do so








New people in the organization need to learn the meaning of the numbering scheme. This learning process reduces the flexibility of an organization and increases the risk of making errors.

Several comments related to the Smart Numbering discussion mentioned that changing the numbering system is too costly and risky to implement and that no business case exists to support it. This statement only makes sense if you want your business to become obsolete slowly. Modern best practices based on digitization should be introduced as fast as possible, allowing companies to learn and adapt. There is no need for a big bang.
Start with mapping, prioritizing, and mapping value streams in your company. Where do we see the most significant business benefits related to cost of handling, speed, and quality?
Note: It is not necessary to start with engineering as they might be creators of data – start, for example, with the xBOM flow, where the xBOM can be a concept BOM, the engineering BOM, the Manufacturing BOM, and more. Building this connected data flow is an investment for every department; do not start from the systems.
Make sure these objects have, besides the part number, the right properties, the right status, and the right connections. In other words, create a connected digital thread – first internally in your company and next with your ecosystem (OEMs, suppliers, vendors)
I just read Oleg Shilovitsky’s post 






By creating a connected digital thread between these sources, reporting becomes a push on the button, and the continuous availability of information will help companies assess and improve their products to reduce environmental and social risks.
One of the areas where the connected digital thread will become important is the implementation of the 


Although sustainability is mentioned in their vision statement, the main business drivers are increased efficiency, improved competitiveness, and cost reduction by removing the overhead and latency of such a network.





Ultimately, to have a business-sustainable PLM infrastructure, you need to structure your company internally and connect to the outside world with a focus on standards to avoid a vendor lock-in or a dead end.

Another benefit Cyril demonstrated was the integration of RoHS compliance to the BOM as an integrated environment. In my session, I also addressed integrated RoHS compliance as a stepping stone to efficiency in future compliance needs.








A great follow-up on Yousef’s session was 

Topics to share in the next post are related to my contribution at the conference The Need for a Governance Digital Thread, where I addressed the need for federated PLM capabilities with the upcoming regulations and practices related to sustainability, which require a connected Digital.
I want to combine this post with the findings that
And there was the introduction of AI at the conference, with some experts’ talks and thoughts. Perhaps at this stage, it is too high on Gartner’s hype cycle to go into details. It will surely be THE topic of discussion or interest you must have noticed.

The conference was sold out this time, and during the breaks, you had to navigate through the people to find your network opportunities. Also, the participation of the main PLM players as sponsors illustrated that everyone wanted to benefit from this opportunity to meet and learn from their industry peers.

The second keynote was from 
In the Q&A there to Christine’s sessions there was an interesting question related to the involvement of Human Resources (HR) in this project. There was a laugh that said it all – like in most companies HR is not focusing on organizational change, they focus more on operational issues – the Human is considered a Resource.














During this two-day conference, there were approximately 80 attendees from around 15 companies, all with a serious interest and experience in modularity. The conference reminded me of the
When talking about modularity, many people will have Lego in mind, as with the Lego bricks, you can build all kinds of products without the need for special building blocks. In general, this is the concept of modularity.
From
PLM and Modularity suffer from the framing that it is about R&D and their tools, whereas in reality, PLM and Modularity are strategies concerning all departments in an enterprise, from sales & marketing, engineering, and manufacturing to customer service.
The exciting part of the conference was that all the significant modularity players were present. Hosted by Vestas and with a keynote speech from 
















The book, with the additional chapter, will be available later this year. I want to share with you in this post the topics I addressed in this chapter. Perhaps relevant for your organization or personal interests. Also, I am looking forward to learning if I missed any topics.








This section describes the importance of implementing a digital twin for the design phase, allowing companies to develop, test and analyze their products and services first virtually. Trade-off studies on virtual products are much cheaper, and when they are done in a data-driven, model-based environment, it will be the most efficient environment. In my terminology, setting up such a collaboration environment might be considered a System of Engagement.

During my summer holiday in my “remote” office, I had the chance to digest what I recently read, heard, saw and discussed related to the future of PLM.
The most significant change I noticed in my discussions is the growing awareness that PLM is no longer covered by a single system.
The main question is: “Every PLM Vendor has a rich portfolio on PowerPoint mentioning all phases of the product lifecycle.
I have discussed several observed changes related to the effects of digitization in my recent blog posts, referencing others who have studied these topics in their organizations.




If you look at the messaging of the current PLM Vendors, none of them is talking about this federated concept.
Plug-and-play systems of engagement require interface standards, and PLM Vendors will only move in this direction if customers are pushing for that, and this is the chicken-and-egg discussion. And probably, their initiatives are too fragmented at the moment to come to a standard. However, don’t give up; keep building MVPs to learn and share.
I plan to come back with a more dedicated discussion at some point with Martijn soon. Meanwhile, start reading the book. Get your free chapter if needed by 
Hi Jos, Knowing your background in methodology and education, I wanted to share a longer article with you: “What is…
Interesting reflection, Jos. In my experience, the situation you describe is very recognizable. At the company where I work, sustainability…
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Jos, all interesting and relevant. There are additional elements to be mentioned and Ontologies seem to be one of the…