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For me, the joint conference from CIMdata and Eurostep is always a conference to look forward too. The conference is not as massive as PLM-Vendor conferences (slick presentations and happy faces); it is more a collection of PLM-practitioners (this time a 100+) with the intent to discuss and share their understanding and challenges, independent from specific vendor capabilities or features.  And because of its size a great place to network with everyone.

Day 1 was more a business/methodology view on PLM and Day 2 more in-depth focusing on standards and BIM. In this post, the highlights from the first day.

The State of PLM

 

Peter Bilello, CIMdata’s president, kicked of with a review of the current state of the PLM industry. Peter mentioned the PLM-market grew by 9.4 % to $47.8 billion (more than the expected 7 %). Good for the PLM Vendors and implementers.

However, Peter also mentioned that despite higher spending, PLM is still considered as a solution for engineering, often implemented as PDM/CAD data management. Traditional organizational structures, marketing, engineering, manufacturing, quality were defined in the previous century and are measured as such.

This traditional approach blocks the roll-out of PLM across these disciplines. Who is the owner of PLM or where is the responsibility for a certain dataset are questions to solve. PLM needs to transform to deliver end-to-end support instead of remaining the engineering silo. Are we still talking about PLM in the future? See Peter’s takeaways below:

 

We do not want to open the discussion if the the name PLM should change – too many debates – however unfortunate too much framing in the past too.

The Multi View BOM

 

Fred Feru from Airbus presented a status the Aerospace & Defense PLM action group are working on: How to improve and standardize on a PLM solution for multi-view BOM management, in particular, the interaction between the EBOM and MBOM. See below:

 

You might think this is a topic already solved when you speak with your PLM-vendor. However, all existing solutions at the participant implementations rely on customizations and vary per company. The target is to come up with common requirements that need to be addressed in the standard methodology. Initial alignment on terminology was already a first required step as before you standardize, you need to have a common dictionary. Moreover, a typical situation in EVERY PLM implementation.

 

An initial version was shared with the PLM Editors for feedback and after iterations and agreement to come with a solution that can be implemented without customization. If you are interested in the details, you can read the current status here with Appendix A en Appendix B.

 

Enabling the Circular Economy for Long Term Prosperity

Graham Aid gave a fascinating presentation related to the potentials and flaws of creating a circular economy. Although Graham was not a PLM-expert (till he left this conference), as he is the Strategy and Innovation Coordinator for the Ragn-Sells Group, which performs environmental services and recycling across Sweden, Norway, Denmark, and Estonia. Have a look at their website here.

 

Graham shared with us the fact that despite logical arguments for a circular economy – it is more profitable at the end – however, our short term thinking and bias block us from doing the right things for future generations.

Look at the missing link for a closed resource-lifecycle view below.

Graham shared weird examples where scarce materials for the future currently were getting cheaper, and therefore there is no desire for recycling them. A sound barrier with rubble could contain more copper than copper ore in a mine.

In the PLM-domain, there is also an opportunity for supporting and working on more sustainable products and services. It is a mindset and can be a profitable business model. In the PDT 2014 conference, there was a session on circular product development with Xerox as the best example. Circular product development but also Product As A Service can be activities that contribute to a more sustainable world. Graham’s presentation was inspiring for our PLM community and hopefully planted a few seeds for the future. As it is all about thinking long-term.

 

With the PLM Green Alliance, I hope we will be able to create a larger audience and participation for a sustainable future. More about the PLM Green Alliance next week.

 

The Fundamental Role of PLM in Data-driven Product Portfolio Management

 

Hannu Hannila (Polar) presented his study related to data-driven product portfolio management and why it should be connected to PLM.  For many companies, it is a challenge to understand which products are performing well and where to invest. These choices are often supported by Data Damagement as Hannu called it.

An example below:

The result of this fragmented approach is that organizations make their decisions on subjective data and emotions. Where the assumption is that 20 % of the products a company is selling is related to 80 % of the revenue, Hannu found in his research companies where only 10 % of the products were contributing to the revenue. As PPM (Product Portfolio Management)  often is based on big emotions – who shouts the loudest mentality, influenced by the company’s pet products and influence by the HIPPO (HIghest Paid Person in the Office).  So how to get a better rationale?

 

Hannu explained a data-driven framework that would provide the right analytics on management level, depending on overall data governance from all disciplines and systems.  See below:

I liked Hannu’s conclusions as it aligns with my findings:

  • To be data-driven, you need Master Data Management and Data Governance
  • Product Portfolio Management is the driving discipline for PLM, and in a modern digital enterprise, it should be connected.

Sponsor sessions

Sponsors are always needed to keep a conference affordable for the attendees.  The sponsor sessions on day 1 were of good quality.  Here a quick overview and a link if you want to invest further

 

Configit – explaining the value of a configurator that connects marketing, technical and sales, introducing CLM (Configuration Lifecycle Management) – a new TLA

 

Aras – explaining their view on what we consider the digital thread

 

Variantum – explaining their CPQ solution as part of a larger suite of cloud offerings

 

Quick Release – bringing common sense to PLM implementations, similar to what I am doing as PLM coach – focusing on the flow of information

 

SAP – explaining the change in focus when a company moves toward a product as a service model

 

SharePLM – A unique company addressing the importance of PLM training delivered through eLearning

Conclusion

CIMdata roadmap was an easy to digest conference with a good quality of presentations. I only shared 50 % of the session as we already reached 1000+ words.  The evening I enjoyed the joint dinner, being able to network and discuss in depth with participants and finished with a social network event organized by SharePLM. Next week part 2 – The PDT part of the conference.

In recent years, more and more PLM customers approached me with questions related to the usage of product information for downstream publishing. To be fair, this is not my area of expertise for the moment. However, with the mindset of a connected enterprise, this topic will come up.

For that reason, I have a strategic partnership with Squadra, a Dutch-based company, providing the same coaching model as TacIT; however, they have their roots in PIM and MDM.

Together we believe we can deliver a meaningful answer on the question: What are the complementary roles of PLM and PIM? In this post, our first joint introduction.

Note: The topic is not new. Already in 2005, Jim Brown from Tech-Clarity published a white-paper: The Complementary Roles of PIM and PLM. This all before digitization and connectivity became massive.

Let’s start with the abbreviations, the TLAs (Three-Letter-Acronyms) and their related domains

PLM – level 1
(Product Lifecycle Management – push)

For PLM, I want to stay close to the current definitions. It is the strategic approach to provide a governance infrastructure to deliver a product to the market. Starting from an early concept phase till manufacturing and in its extended definition also during its operational phase.
The focus with PLM is to reduce time to market by ensuring quality, cost, and delivery through more and more a virtual product definition, therefore being able to decide upfront for the best design choices, manufacturing options with the lowest cost. In the retail world, own-brand products are creating a need for PLM.

The above image is nicely summarizing the expected benefits of a traditional PLM implementation.

 

MDM (Master Data Management)

When product data is shared in an enterprise among multiple systems, there is a need for Master Data Management (MDM). Master Data Management focuses on a governance approach that information stored in various systems has the same meaning and shared values where relevant.

MDM guards and streamlines the way master data is entered, processed, guarded, and changed within the company, resulting in one single version of the truth and enabling different departments and systems to stay synced regarding their crucial data.

Interestingly, in the not-so-digital world of PLM, you do not see PLM vendors working on an MDM-approach. They do not care about an end-to-end connected strategy yet. I wrote about this topic in 2017 here: Master Data Management and PLM.

PIM (Product Information Management)

The need for PIM starts to become evident when selling products through various business channels. If you are a specialized machine manufacturer, your product information for potential customers might be very basic and based on a few highlights.

However, due to digitization and global connectivity, product information now becomes crucial to be available in real-time, wherever your customers are in the world.

In a competitive world, with an omnichannel strategy, you cannot survive without having your PIM streamlined and managed.

 

Product Innovation Platforms (PLM – Level 2 – Pull)

With the introduction of Product Innovation Platforms as described by CIMdata and Gartner, the borders of PLM, PIM, and MDM might become vague, as they might be all part of the same platform, therefore reducing the immediate need for an MDM-environment.  For example, companies like Propel, Stibo, and Oracle are building a joint PLM-PIM portfolio.

Let’s dive more profound in the two scenarios that we meet the most in business, PLM driving PIM (my comfort zone) and PIM driving the need for PLM (Squadra’s s area of expertise).

PLM driving PIM

Traditionally PLM (Product Lifecycle Management) has been focusing on several aspects of the product lifecycle. Here is an excellent definition for traditional PLM:

PLM is a collection of best practices, dependent per industry to increase product revenue, reduce product-related costs and maximize the value of the product portfolio  (source 2PLM)

This definition shows that PLM is a business strategy, not necessarily a system, but an infrastructure/approach to:

  • ensure shorter time to market with the right quality (increasing product revenue)
  • efficiently (reduce product-related costs – resources and scrap)
  • deliver products that bring the best market revenue (maximize the value of the product portfolio)

The information handled by traditional PLM consists mostly of design data, i.e., specifications, manufacturing drawings, 3D Models, and Bill of Materials (physical part definitions) combined with version and revision management. In elaborate environments combined with processes supporting configuration management.

PLM data is more focused on internal processes and quality than on targeting the company’s customers. Sometimes the 3D Design data is used as a base to create lightweight 3D graphics for quotations and catalogs, combining it with relevant sales data. Traditional marketing was representing the voice of the customer.

PLM implementations are more and more providing an enterprise backbone for product data. As a result of this expansion, there is a wish to support sales and catalogs, more efficiently, sharing master data from creation till publishing, combining the product portfolio with sales and service information in a digital way.

In particular, due to globalization, there was a need to make information globally available in different languages without a significant overhead of resources to manage the data or manage the disconnect from the real product data.

Companies that have realized the need for connected data understood that Product Master Data Management is more than only the engineering/manufacturing view. Product Master Data Management is also relevant to the sales and services view. Historically done by companies as a customized extension on their PLM-system, now more and more interfacing with specialized PIM-systems. Proprietary PLM-PIM interfaces exist. Hopefully, with digital transformation, a more standardized approach will appear.

 

PIM driving the need for PLM

Because of changes in the retail market, the need for information in the publishing processes is also changing. Retailers also need to comply with new rules and legislation. The source of the required product information is often in the design process of the product.

In parallel, there is an ongoing market trend to have more and more private label products in the (wholesale and retail) assortments. This means a growing number of retailers and wholesalers will become producers and will have their own Ideation and innovation process.

A good example is ingredients and recipe information in the food retail sector. This information needs to be provided now by suppliers or by their own brand department that owns the design process of the product. Similar to RoHS or REACH compliance in the industry.

Retail and Wholesale can tackle own brands reasonably well with their PIM systems (or Excels), making use of workflows and product statuses. However, over the years, the information demands have increased, and a need for more sophisticated lifecycle management has emerged and, therefore the need for PLM (in this case, PLM also stands for Private Label Management).

In the image below, illustrates a PLM layer and a PIM layer, all leading towards rich product information for the end-users (either B2B or B2C).

In the fast-moving consumer goods (FMCG) world, most innovative products are coming from manufacturers. They have pipelines with lots of ideas resulting in a limited number of sellable products. In the Wholesale and Retail business, the Private Label development process usually has a smaller funnel but a high pressure on time to market, therefore, a higher need for efficiency in the product data chain.

Technological changes, like 3D Printing, also change the information requirements in the retail and wholesale sectors. 3D printing can be used for creating spare parts on-demand, therefore changing the information flow in processes dramatically. Technical drawings and models that were created in the design process, used for mass production, are now needed in the retail process closer to the end customer.

These examples make it clear that more and more information is needed for publication in the sales process and therefore needs to be present in PIM systems. This information needs to be collected and available during the PLM release process. A seamless connection between the product release and sales processes will support the changing requirements and will reduce errors and rework in on data.

PLM and PIM are two practices that need to go hand in hand like a relay baton in athletics. Companies that are using both tools must also organize themselves in a way that processes are integrated, and data governance is in place to keep things running smoothly.

 

Conclusion

Market changes and digital transformation force us to work in value streams along the whole product lifecycle ensuring quality and time to market. PLM and PIM will be connected domains in the future, to enable smooth product go-to-market. Important is the use of data standards (PLM and PIM should speak a common language) – best based on industry standards so that cross-company communication on product data is possible.

What do you think? Do you see PLM and PIM getting together too, in your business?

Please share in the comments.

 

 

 

 

 

Last week I read Verdi Ogewell’ s article:  PTC puts the Needle to the Digital Thread on Engineering.com where Verdi raised the question (and concluded) who is the most visionary PLM CEO – Bernard Charles from Dassault Systemes or Jim Heppelman from PTC. Unfortunate again, an advertorial creating more haziness around modern PLM than adding value.

People need education and Engineering.com is/was a respected site for me, as they state in their Engineering.com/about statement:

Valuable Content for Busy Engineers. Engineering.com was founded on the simple mission to help engineers be better.

Unfortunate this is not the case in the PLM domain anymore. In June, we saw an article related to the failing PLM migration at Ericsson – see The PLM migration dilemma. Besides the fact that a big-bang migration had failed at Ericsson, the majority of the article was based on rumors and suggestions, putting the sponsor of this article in a better perspective.

Of course, Engineering.com needs sponsoring to host their content, and vendors are willing to spend marketing money on that. However, it would be fairer to mention in a footnote who sponsored the article – although per article you can guess. Some more sincere editors or bloggers mention their sponsoring that might have influenced their opinion.

Now, why did the article PTC puts the Needle to the Digital Thread made me react ?

Does a visionary CEO pay off?

It can be great to have a visionary CEO however, do they make the company and their products/services more successful? For every successful visionary CEO, there are perhaps ten failing visionary CEOs as the stock market or their customers did not catch their vision.

There is no lack of PLM vision as Peter Bilello mapped in 2014 when imagining the gaps between vision, available technology, and implementations at companies (leaders and followers). See below:

The tremendous gap between vision and implementations is the topic that concerns me the most. Modern PLM is about making data available across the enterprise or even across the company’s ecosystem. It is about data democratization that allows information to flow and to be presented in context, without the need to recreate this information again.

And here the marketing starts. Verdi writes:

PTC’s Internet of Things (IoT), Industrial Internet of Things (IIoT), digital twin and augmented reality (AR) investments, as well as the collaboration with Rockwell Automation in the factory automation arena, have definitely placed the company in a leading position in digital product realization, distribution and aftermarket services

With this marketing sentence, we are eager to learn why

“With AR, for example, we can improve the quality control of the engines,” added Volvo Group’s Bertrand Felix, during an on-stage interview by Jim Heppelmann. Heppelmann then went down to a Volvo truck with the engine lifted out of its compartment. Using a tablet, he was able to show how the software identified the individual engine, the parts that were included, and he could also pick up the 3D models of each component and at the same time check that everything was included and in the right place.

Impressive – is it real?

The point is that this is the whole chain for digital product realization–development and manufacturing–that the Volvo Group has chosen to focus on. Sub-components have been set up that will build the chain, much is still in the pilot stage, and a lot remains to be done. But there is a plan, and the steps forward are imminent.

OK, so it is a pilot, and a lot remains to be done – but there is a plan. I am curious about the details of that plan, as a little later, we learn from the CAD story:

The Pro/ENGINEER “inheritor” Creo (engine, chassis) is mainly used for CAD and creation of digital twins, but as previously noted, Dassault Systémes’ CATIA is also still used. Just as in many other large industrial organizations, Autodesk’s AutoCAD is also represented for simpler design solutions.

There goes the efficient digital dream. Design data coming from CATIA needs to be recreated in Creo for digital twin support. Data conversion or recreation is an expensive exercise and needs to be reliable and affordable as the value of the digital twin is gone once the data is incorrect.

In a digital enterprise, you do not want silos to work with their own formats, you want a digital thread based on (neutral) models that share metadata/parameters from design to service.

So I dropped the article and noticed Oleg had already commented faster than me in his post: Does PLM industry need a visionary pageant? Oleg refers also to CIMdata, as they confirmed in 2018 that the concept of a platform for product innovation (PIP), or the beyond PLM is far from reality in companies. Most of the time, a PLM-implementation is mainly a beyond PDM environment, not really delivering product data downstream.

I am wholly aligned with Oleg’s  technical conclusion:

What is my(Oleg’s) conclusion? PLM industry doesn’t need another round of visionary pageants. I’d call democratization, downstream usage and openness as biggest challenges and opportunities in PLM applications. Recent decades of platform development demonstrated the important role network platforms played in the development of global systems and services. PLM paradigm change from isolated vertical platforms to open network services required to bring PLM to the next level. Just my thoughts..

My comments to Oleg’s post:

(Jos) I fully agree we do not need more visionary PLM pageants. It is not about technology and therefore I have to disagree with your point about Aras. You call it democratization and openness of data a crucial point – and here I agree – be it that we probably disagree about how to reach this – through standards or through more technology. My main point to be made (this post ) is that we need visionary companies that implement and rethink their processes and are willing to invest resources in that effort. Most digital transformation projects related to PLM fail because the existing status quo/ middle management has no incentive to change. More thoughts to come

And this the central part of my argumentation – it is not about technology (only).

Organizational structures are blocking digital transformation

Since 2014 I have been following several larger manufacturing companies on their path from pushing products to the market in a linear mode towards a customer-driven, more agile, fast responding enterprise. As this is done by taking benefit of digital technologies, we call this process: digital transformation.

(image depicting GE’s digital thread)

What I have learned from these larger enterprises, and both Volvo Trucks and GE as examples, that there is a vision for an end result. For GE, it is the virtual twin of their engines monitored and improved by their Predix platform. For Volvo Trucks, we saw the vision in the quote from Verdi’s article before.

However, these companies are failing in creating a horizontal mindset inside their companies. Data can only be efficient used downstream if there is a willingness to work on collecting the relevant data upstream and delivering this information in an accessible format, preferably data-driven.

The Middle Management Dilemma

And this leads to my reference to middle management. Middle managers learn about the C-level vision and are pushed to make this vision happen. However, they are measured and driven to solve these demands, mainly within their own division or discipline. Yes, they might create goodwill for others, but when it comes to money spent or changing people responsibilities, the status quo will remain.

I wrote about this challenge in The Middle Management dilemma. Digital transformation, of course, is enabled by digital technologies, but it does not mean the technology is creating the transformation. The crucial fact lies in making companies more flexible in their operations, yet establishing better and new contacts with customers.

It is interesting to see that the future of businesses is looking into agile, multidisciplinary teams that can deliver incremental innovations to the company’s portfolio. Somehow going back to the startup culture inside a more significant enterprise. Having worked with several startups, you see the outcome-focus as a whole in the beginning – everyone contributes. Then when the size of the company grows, middle-management is introduced, and most likely silos are created as the middle management gets their own profit & loss targets.

Digital Transformation myths debunked

This week Helmut Romer (thanks Helmut) pointed me to the following HBR-article: Digital does not need to be disruptive where the following myths are debunked:

  1. Myth: Digital requires radical disruption of the value proposition.
    Reality: It usually means using digital tools to better serve the known customer need.
  2. Myth: Digital will replace physical
    Reality: It is a “both/and.”
  3. Myth: Digital involves buying start-ups.
    Reality: It involves protecting start-ups.
  4. Myth: Digital is about technology.
    Reality: It’s about the customer
  5. Myth: Digital requires overhauling legacy systems.
    Reality: It’s more often about incremental bridging.

If you want to understand these five debunked myths, take your time to read the full article, very much aligned with my argumentation, albeit it that my focus is more on the PLM domain.

Conclusions

Vendor sponsoring at Engineering.com has not improved the quality of their PLM articles and creates misleading messages. Especially as the sponsor is not mentioned, and the sponsor is selling technology – the vision gap is too big with reality to compete around a vision.

Transforming companies to take benefit of new technologies requires an end-to-end vision and mindset based on achievable, incremental learning steps. The way your middle management is managed and measured needs to be reworked as the focus is on horizontal flow and understanding of customer/market-oriented processes.

 

This is the moment of the year, where at least in my region, most people take some time off to disconnect from their day-to-day business.  For me, it is never a full disconnect as PLM became my passion, and you should never switch off your passion.

On August 1st, 1999, I started my company TacIT, the same year the acronym PLM was born. I wanted to focus on knowledge management, therefore the name TacIT.  Being dragged into the SmarTeam world with a unique position interfacing between R&D, implementers and customers I found the unique sweet spot, helping me to see all aspects from PLM – the vendor position, the implementer’s view, the customer’s end-user, and management view.

It has been, and still, is 20 years of learning and have been sharing most in the past ten years through my blog. What I have learned is that the more you know, the more you understand that situations are not black and white. See one of my favorite blog pictures below.

So there is enough to overthink during the holidays. Some of my upcoming points:

From coordinated to connected

Instead of using the over-hyped term: Digital Transformation, I believe companies should learn to work in a connected mode, which has become the standard in our daily life. Connected means that information needs to be stored in databases somewhere, combined with openness and standards to make data accessible. For more transactional environments, like CRM, MES, and ERP, the connected mode is not new.

In the domain of product development and selling, we have still a long learning path to go as the majority of organizations is relying on documents, be it Excels, Drawings (PDF) and reports. The fact that they are stored in electronic file formats does not mean that they are accessible. There is still manpower needed to create these artifacts or to extract the required information from them.

The challenge for modern PLM is to establish new best practices around a model-based approach for systems engineering (MBSE), for engineering to manufacturing (MBD/MBE) and operations (Digital Twins). All these best practices should be generic and connected ultimately.  I wrote about these topics in the past, have a look at:

PLM Vendors are showing pieces of the puzzle, but it is up to the implementers to establish the puzzle, without knowing in detail what the end result will be. This is the same journey of Columbus. He had a boat and a target towards the unknown. He discovered a country with a small population, nowadays a country full of immigrants who call themselves natives.

However, the result was an impressive transformation.

Reading about transformation

Last year I read several books to get more insight into what motivates us, and how can we motivate people to change. In one way, it is disappointing to learn that we civilized human beings most of the time to not make rational decisions but act based on our per-historic brain.

 

Thinking, Fast and Slow from Daniel Kahneman was one of the first books in that direction as a must-read to understand our personal thinking and decision processes.

 

 

 

I read Idiot Brain: What Your Head Is Really Up To from Dean Burnett, where he explains this how our brain appears to be sabotaging our life, and what on earth it is really up to. Interesting to read but could be a little more comprehensive

 

I got more excited from Dan Ariely”s book: Predictably Irrational: The Hidden Forces That Shape Our Decisions as it was structured around topics where we handle completely irrational but predictable. And this predictability is used by people (sales/politicians/ management) to drive your actions. Useful to realize when you recognize the situation

 

These three books also illustrate the flaws of our modern time – we communicate fast (preferable through tweets) – we decide fast based on our gut feelings – so you realize towards what kind of world we are heading.  Going through a transformation should be considered as a slow, learning process. Like reading a book – it takes time to digest.

Once you are aiming at a business transformation for your company or supporting a company in its transformation, the following books were insightful:

Leading Digital: Turning Technology into Business Transformation by George Westerman, Didier Bonnet and Andrew McAfee is maybe not the most inspiring book, however as it stays close to what we experience in our day-to-day-life it is for sure a book to read to get a foundational understanding of business transformation.

 

The book I liked the most recent was Leading Transformation: How to Take Charge of Your Company’s Future by Nathan Furr, Kyle Nel, Thomas Zoega Ramsoy as it gives examples of transformation addressing parts of the irrational brain to get a transformation story. I believe in storytelling instead of business cases for transformation. I wrote about it in my blog post: PLM Measurable or a myth referring to Yuval Harari’s book Homo Sapiens

Note: I am starting my holidays now with a small basket of e-books. If you have any recommendations for books that I must read – please write them in the comments of this blog

Discussing transformation

After the summer holidays, I plan to have fruitful discussions around topics close to PLM. Working on a post and starting a conversation related to PLM, PIM, and Master Data Management. The borders between these domains are perhaps getting vaguer in a digital enterprise.

Further, I am looking forward to a discussion around the value of PLM assisting companies in developing sustainable products. A sustainable and probably circular economy is required to keep this earth a place to live for everybody. The whole discussion around climate change, however, is worrying as we should be Thinking – not fast and slow – but balanced.

A circular economy has been several times a topic during the joint CIMdata PLM Roadmap and PDT conferences, which bring me to the final point.

On 13th and 14th November this year I will participate again in the upcoming PLM Roadmap and PDT conference. This time in La Defense, Paris, France. I will share my experiences from working with companies trying to understand and implement pieces of a digital transformation related to PLM.

There will be inspiring presentations from other speakers, all working on some of the aspects of moving to facets of a connected enterprise. It is not a marketing event, it is done by professionals, serving professionals. Therefore I hope if you are passioned about the new aspects of PLM, no matter how you name label them, come and join, discuss and most of all, learn.

Conclusion

 

Modern life is about continuous learning  – make it a habit. Even a holiday is again a way to learn to disconnect.

How disconnected I was you will see after the holidays.

 

 

 

After my previous post about the PLM migration dilemma, I had several discussions with peers in the field why these PLM bad news are creating so much debate. For every PLM vendor, I can publish a failure story if I want. However, the reality is that the majority of PLM implementations do not fail.

Yes, they can cause discomfort or friction in an organization as implementing the tools often forces people to work differently.  And often working differently is not anticipated by the (middle) management and causes, therefore, a mismatch for the people, process & tools paradigm.

So we love bad news in real life. We talk about terrorism while meanwhile, a large number of people are dying through guns, cars, and even the biggest killer mosquitos. Fear stories sell better than success stories, and in particular, in the world of PLM Vendors, every failure of the competition is enlarged.  However, there are more actors involved in a PLM implementation, and if PLM systems would be that bad, they would not exist anymore and replace by ………?

Who to blame – the vendor?

Of course, it is the easiest way to blame the vendor as their marketing is promising to solve all problems. However, when you look from a distance to the traditional PLM vendor community, you see they are in a rat-race to deliver the latest and greatest technology ahead of their competition, often driven by some significant customers.

Their customers are buying the vision and expect it to be ready and industrialized, which is not the case – look at the digital twin hype or AI (Artificial Intelligence).  Released PLM software is not at the same maturity compared to office applications. Office applications do not innovate so much and have thousands of users during a beta-cycle and no dependency on processes.

Most PLM vendors are happy when a few customers jump on their latest release, combined with the fact that implementations of the most recent version are not yet a push on the button.  This might change in the long term if PLM Vendors can deliver cloud-based solutions.

PLM implementations within the same industry might look the same but often vary a lot due to existing practices, which will not change due to the tool – so there is a need for customization or configuration.

PLM systems with strong business rules inside their core might more and more develop towards configuration, where PLM toolkit-like systems might focus on ease of customization. Both approaches have their pro’s and con’s (in another blog post perhaps).

Another topic to blame the vendor is lack of openness.  You hear it in many discussions. If vendor X were open, they would not lock the data – a typical marketing slogan. If PLM vendors would be completely open, to which standards should they adhere?  Every PLM has its preferred collection of tools together – if you stay within their portfolio you have a minimum of compatibility or interface issues.

This logic started already with SAP in the previous century. For PLM vendors, there is no business model for openness. For example, the SmarTeam APIs for connecting and extracting data are available free of charge, leading to no revenue for the vendor and significant revenue for service providers. Without any license costs, they can build any type of interface/solution. In the end, when the PLM vendor has no sustainable revenue, the vendor will disappear as we have seen between 2000 and 2010, where several stand-alone PLM systems disappeared.

So yes, we can blame PLM vendors for their impossible expectations – coming to realistic expectations related to capabilities and openness is probably the biggest challenge.

Who to blame – the implementer?

The second partner in a PLM implementation is the implementation partner, often a specialized company related to the PLM vendor. There are two types of implementation partners – the strategic partners and the system integrators.

Let’s see where we can blame them.

Strategic partners, the consultancy firms,  often have a good relationship with the management, they help the company to shape the future strategy, including PLM. You can blame this type of company for their lack of connection to the actual business. What is the impact on the organization to implement a specific strategy, and what does this mean for current or future PLM?

Strategic partners should be the partner to support business change management as they are likely to have experience with other companies. Unfortunate, this type of companies does not have significant skills in PLM as the PLM domain is just a small subset of the whole potential business strategy.

You can blame them that they are useful in building a vision/strategy but fail to create a consistent connection to the field.

Implementation partners, the system integrators, are most of the times specialized in one or two PLM vendor’s software suites, although the smaller the implementation partner, the less broad their implementation skills. These implementation partners sometimes have built their own PLM best practices for a specific vendor and use this as a sales argument. Others just follow blindly what the vendor is promoting or what the customer is asking for.

They will do anything you request, as long as they get paid for it. The larger ones have loads of resources for offshore deliveries – the challenge you see here is that it might look cheap; however, it becomes expensive if there is no apparent convergence of the deliverables.

As I mentioned before they will never say No to a customer and claim to fill all the “gaps,” there are in the PLM environment.

You can blame implementation partners that their focus is on making money from services. And they are right, to remain in business your company needs to be profitable. It is like lawyers; they will invoice you based on their efforts. And the less you take on your plate, the more they will do for you.

The challenge for both consultancy partners as system integrators is to find a balance between experienced people, who really make it happen and educating juniors to become experts too. Often the customer pays for the education of these juniors

Who to blame – your company?

If your company is implementing PLM, then probably the perception is that that you made all the effort to make it successful.  You followed the advice of the strategic consultants, you selected the best PLM Vendor and system integrator, you created a budget – so what could go wrong?

This all depends on your company’s ambition and scope for PLM.

Implementing the as-is processes

If your PLM implementation is just there to automate existing practices and store data in a central location, this might work out. And this is most of the time when PLM implementations are successful. You know what to expect, and your system integrator knows what to expect.

This type of project can run close to budget, and some system integrators might be tempted to offer a fixed price. I am not a fan of fixed priced projects as you never know exactly what needs to be done. The system integrator might raise the target price with 20 – 40 % to cover their risk or you as a company might select the cheapest bid – another guarantee for failure. A PLM implementation is not a one-time project, it is an on-going journey. Therefore your choice needs to be sustainable.

My experience with this type of implementations is that it easy to blame the companies here too. Often the implementation becomes an IT-project, as business people are too busy to run their day-to-day jobs, therefore they only incidentally support the PLM project. The result is that at a specific moment, users confronted with the system feel not connected to the new system – it was better in the past. In particular, configuration management and change processes can become waterproof, leaving no freedom for the users. Then the blaming starts – first the software then the implementer.

But what if you have an ambitious PLM project as part of a business transformation?

In that case, the PLM platform is just one of the elements to consider. It will be the enabler for new ways of working, enabling customer-centric processes, multi-discipline collaboration, and more. All related to a digital transformation of the enterprise. Therefore, I mention PLM platform instead of PLM system. Future enterprises run on data through connected platforms. The better you can connect your disciplines, the more efficient and faster your company will operate. This, as opposed to the coordinated approach, which I have been addressing several times in the past.

A business transformation is a combination of end-to-end understanding of what to change – from management vision connected to the execution in the field. And as there is not an out-of-the-box template for business transformation, it is crucial a company experiments, evaluates and when successful, scales up new habits.

Therefore, it is hard to define upfront all the effort for the PLM platform and the implementation resources. What is sure is that your company is responsible for that, not an external part. So if it fails, your company is to blame.

Is everyone to blame?

You might have the feeling that everyone is to blame when a PLM implementation fails. I believe that is indeed the case. If you know in advance where all players have their strengths and weaknesses, a PLM implementation should not fail, but be balanced with the right resources. Depending on the scope of your PLM implementation, is it a consolidation or a transformation, you should take care of all stakeholders are participating in the anti-blame game.

The anti-blame game is an exercise where you make sure that the other parties in the game cannot blame you.

  • If you are a vendor – do not over commit
  • If you are a consultant or system integrator – learn to say NO
  • If you are the customer – make sure enough resources are assigned – you own the project. It is your project/transformation.

This has been several times my job in the past, where I was asked to mediate in a stalling PLM implementation. Most of the time at that time it was a blame game, missing the target to find a solution that makes sense. Here coaching from experienced PLM consultants makes sense.

 

Conclusion

Most of the time, PLM implementations are successful if the scope is well understood and not transformative. You will not hear a lot about these projects in the news as we like bad news.

To avoid bad news challenging PLM implementations should make sure all parties involved are challenging the others to remain realistic and invest enough. The role of an experienced external coach can help here.

 

 

I am writing this post during the Easter weekend in the Netherlands. Easter / Passover / Pascha / are religious festivities that happen around this time, depending on full moons, etc. I am not the expert here, however, what I like about Easter is that is it is an optimistic religious celebration, connecting history, the “dark days,” and the celebration of new life.

Of course, my PLM-twisted brain never stops associating and looking into an analogy, I saw last week a LinkedIn post from Mark Reisig, about Aras ACE 2019 opening with the following statement:

Digital Transformation – it used to be called PLM,” said Aras CEO Peter Schroer, as he opened the conference with some thoughts around attaining sustainable Digital Transformation and owning the lifecycle.

Was this my Easter Egg surprise? I thought we were in the middle of the PLM Renaissance as some other vendors and consultants talk about this era. Have a look at a recent Engineering.com TV-report: Turning PLM on its head

All jokes aside, the speech from Peter Schroer contained some interesting statements and I want to elaborate on them in this post as the space to comment in LinkedIn is not designed for a long answer.

PLM is Digital Transformation?

In the past few years, there has been a discussion if the acronym PLM (Product Lifecycle Management) is perhaps outdated. PTC claimed thanks to IoT (Internet of Things) now PLM equals IoT, as you can read in  Mark Taber’s 2018 guest article in Digital Engineering: IoT Equals PLM.
Note: Mark is PTC’s vice president of marketing and go-to-market marketing according to the bio at the bottom of the article. So a lot of marketing words, which  strengthens the believers of the old world, that everything new is probably marketing.

Also during the PDT conferences, we discussed if PLM should be replaced by a new acronym and I participated in that discussion too – my Nov 2018 postWill MBSE be the new PLM instead of IoT? is a reflection of my thoughts at that time.

For me, Digital Transformation is a metamorphosis from a document-driven, sequential processes towards data-driven, iterative processes. The metamorphosis example used a lot at this moment, is the one from Caterpillar towards the Butterfly. This process is not easy when it comes to PLM-related information, as I described in my PI PLMx 2019 London Presentation and blog post: The Challenges of a Connected Ecosystem for PLM. The question is even: Will there be a full metamorphosis at the end or will we keep on working in two different modes of operations?

However, Digital Transformation does not change the PLM domain. Even after a successful digital transformation, there will be PLM. The only significant difference in the future – PLM boarders will not be so evident anymore when implementing capabilities in a system or a platform. The upcoming of digital platforms will dissolve or fade the traditional PLM-mapped capabilities.

You can see these differences already by taking an in-depth look at how Oracle, SAP or Propel address PLM. Each of them starts from a core platform with different PLM-flavored extensions, sometimes very different from the traditional PLM Vendors. So Digital transformation is not the replacement of PLM.

Back to Peter Schroer’s rebuttal of some myths. Note: DX stands for Digital Transformation

Myth #1: DX leverages disruptive tech

Peter Schroer:

 It’s easy to get excited about AI, AR, and the 3D visual experience. However, let’s be real. The first step is to get rid of your spreadsheets and paper documentation – to get an accurate product data baseline. We’re not just talking a digital CAD model, but data that includes access to performance data, as-built parts, and previous maintenance work history for everyone from technicians to product managers

Here I am fully aligned with Peter. There are a lot of fancy features discussed by marketing teams, however, when working in the field with companies, the main challenge is to get an organization digital aligned, sharing data accessible along the whole lifecycle with the right quality.

This means you need to have a management team, understanding the need for data governance, data quality and understanding the shift from data ownership to data accountability.  This will only happen with the right mix of vision, strategy and the execution of the strategy – marketing does not make it happen

 

Myth #2: DX results in increased market share, revenue, and profit

Peter Schroer:

Though there’s a lot of talk about it – there isn’t yet any compelling data which proves this to be true. Our goal at Aras is to make our products safer and faster. To support a whole suite of industrial applications to extend your DX strategy quite a bit further.

Here I agree and disagree, depending on the context of this statement. Some companies have gone through a digital transformation and therefore increased their market share, revenue, and profit. If you read books like Leading Transformation or Leading Digital, you will find examples of companies that have gone through successful digital transformations. However, you might also discover that most of these companies haven’t transformed their PLM-domain, but other parts of their businesses.

Also, it is interesting to read a 2017 McKinsey post: The case for digital reinvention, where you will get the confirmation that a lot of digital initiatives did not bring more top-line revenue and most of the times lead to extra costs. Interesting to see where companies focus their digital strategies – picture below:

Where only 2 percent of the respondents were focusing on supply chains, this is, according to the authors of the article, one of the areas with the highest potential ROI. And digital supply chains are closely related to modern PLM – so this is an area with enough work to do by all PLM practitioners– connecting ecosystems (in real-time)

Myth #3: Market leaders are the most successful at DX

Peter Schroer:

If your company is hugely profitable at the moment, it’s highly likely that your organization is NOT focused on Digital Transformation. The lifespan of S&P 500 companies continuing to shrink below 20 years.

How to Attain Sustainable Digital Transformation

– Stop buying disposable systems. It’s about an adaptable platform – it needs to change as your company changes.

– Think incremental. Do not lose momentum. Continuous change is a multi-phase journey. If you are in or completed phase I, then that means there is a phase II, a phase III, and so on.

– Align people & processes.  Mistakes will happen, “the tech side is only 50% of DX” – Aras CEO.

Here I agree with Peter on the business side, be it that some of the current market leaders are already digital. Look at Apple, Google, and Amazon. However, the majority of large enterprises have severe problems with various aspects of a digital transformation as the started in the past before digital technologies became affordable..

Digitization allows information to flow without barriers within an organization, leading to rapid insights and almost direct communication with your customers, your supply chain or other divisions within your company. This drives the need to learn and build new, lean processes and get people aligned to them. Learning to work in a different mode.

And this is extremely difficult for a market leader – as market leader fear for the outside changing world is often not felt. Between the C-level vision and people working in the company, there are several layers of middle management. These layers were created to structure and stabilize the old ways of working.

I wrote about the middle management challenge in my last blog post: The Middle Management dilemma. Almost in the same week there was an article from McKinsey: How companies can help midlevel managers navigate agile transformations.
Conclusion: It is not (only) about technology as some of the tech geeks may think.

Conclusion

Behind the myths addressed by Peter Schroer, there is a complex transformation on-going. Probably not a metamorphosis. With the Easter spirit in mind connected to PLM, I believe digital transformations are possible – Not as a miracle but driven by insights into all aspects. I hope this post gave you some more ideas and please read the connected articles – they are quite relevant if you want to discover what’s below the surface.

This is the moment of the year to switch-off from the details. No more talking and writing about digital transformation or model-based approaches. It is time to sit back and relax. Two years ago I shared the PLM Songbook, now it is time to see one or more movies. Here are my favorite top five PLM movies:

Bruce Almighty

Bruce Nolan, an engineer in Buffalo, N.Y., is discontented with almost everything in the company despite his popularity and the love of his draftswoman Grace. At the end of the worst day of his life, Bruce angrily ridicules and rages against PLM and PLM responds. PLM appears in human form and, endowing Bruce with divine powers op collaboration, challenges Bruce to take on the big job to see if he can do it any better.

A movie that makes you modest and you realize there is more than your small ecosystem.

 

The good, the bad and the ugly

Blondie (The Good PLM consultant) is a professional who is out trying to earn a few dollars. Angel Eyes (The Bad PLM Vendor) is a PLM salesman who always commits to a task and sees it through, as long as he is paid to do so. And Tuco (The Ugly PLM Implementer) is a wanted outlaw trying to take care of his own hide. Tuco and Blondie share a partnership together making money off Tuco’s bounty, but when Blondie unties the partnership, Tuco tries to hunt down Blondie. When Blondie and Tuco come across a PLM implementation loaded with dead bodies, they soon learn from the only survivor (Bill Carson – the PLM admin) that he and a few other men have buried a stash of value on a file server. Unfortunately, Carson dies, and Tuco only finds out the name of the file server, while Blondie finds out the name on the hard disk. Now the two must keep each other alive in order to find the value. Angel Eyes (who had been looking for Bill Carson) discovers that Tuco and Blondie met with Carson and knows they know the location of the value. All he needs is for the two to ..

A movie that makes you realize that it is a challenging journey to find the value out of PLM. It is not only about execution – but it is also about all the politics of people involved – and there are good, bad and ugly people on a PLM journey.

The Grump

The Grump is a draftsman in Finland from the past. A man who knows that everything used to be so much better in the old days. Pretty much everything that’s been done after 1953 has always managed to ruin The Grump’s day. Our story unfolds The Grump opens a 3D Model on his computer, hurting his brain. He has to spend a weekend in Helsinki to attend a model-based therapy. Then the drama unfolds …….

A movie that makes you realize that progress and innovation do not come from grumps. In every environment when you want to do a change of the status quo, grumps will appear. With the exciting Finish atmosphere, a perfect film for Christmas.

Deliverance

The Cahulawassee River Valley company in Northern Georgia is one of the last analog companies in the state, which will soon change with the imminent implementation of a PLM system in the company, breaking down silos everywhere. As such, four Atlanta city slickers, alpha male Lewis Medlock, generally even-keeled Ed Gentry, slightly condescending Bobby Trippe, and wide-eyed Drew Ballinger decide to implement PLM in one trip, with only Lewis and Ed having experience in CAD. They know going in that the area is ethnoculturally homogeneous and isolated, but don’t understand the full extent of such until they arrive and see what they believe is the result of generations of inbreeding. Their relatively peaceful trip takes a turn for the worse when half way through they encounter a couple of hillbilly moonshiners. That encounter not only makes the four battle their way out of the PLM project intact and alive but threatens the relationships of the four as they do.

This movie, from 1972, makes you realize that in the early days of PLM starting a big-bang implementation journey into an area that is not ready for it, can be deadly, for your career and friendship. Not suitable for small children!

Diamonds Are Forever or Tron (legacy)

James Bond’s mission is to find out who has been drawing diamonds, which are appearing on blogs. He adopts another identity in the form of Don Farr. He joins up with CIMdata and acts as if he is developing diamonds, but everyone is hungry for these diamonds. He also has to avoid Mr. Brouwer and Mr. Kidd, the dangerous couple who do not leave anyone in their way when it comes to model-based. And Ernst Stavro Blofeld isn’t out of the question. He may have changed his looks, but is he linked with the V-shape? And if he is, can Bond finally defeat his ultimate enemy?

Sam Flynn, the tech-savvy 27-year-old son of Kevin Flynn, looks into his father’s disappearance and finds himself pulled into the same world of virtual twins and augmented reality where his father has been living for 20 years. Along with Kevin’s loyal confidant Quorra, father and son embark on a life-and-death journey across a visually-stunning cyber universe that has become far more advanced and exceedingly dangerous. Meanwhile, the malevolent program IoT, who dominates the digital world, plans to invade the real world and will stop at nothing to prevent their escape

I could not decide about number five. The future is bright with Boeing’s new representation of Systems Engineering, see my post on CIMdata’s PLM Europe roadmap event where Don Farr presented his diamond(s). However, the future is also becoming a mix of real with virtual and here Tron (legacy) will help my readers to understand the beauty of a mixed virtual and real world. You can decide – or send me your favorite PLM movies.

Note: All movie reviews are based on IMBd.com story lines, and I thank the authors of these story lines for their contribution and hope they agree with the PLM-related twist. Click on the image to find the full details and original review.

Conclusion

2018 has been an exciting year with a lot of buzzwords combined with the reality that the current PLM approach is incompatible with the future. How we can address this issue more in 2019 – first at PI PLMx 2019 in London (be there – last chance to meet people in the UK when they are still Europeans and share/discuss plans for the upcoming year)

Wishing you all the best during the break and a happy and prosperous 2019

 

I was planning to complete the model-based series with a post related to the digital twin. However, I did not find the time to structure my thoughts to write it up in a structured story. Therefore, this time some topics I am working on that I would like to share.

Executive days at CADCAM Group

Last week I supported the executive days organized by the CADCAM Group in Ljubljana and Zagreb. The CADCAM is a large PLM Solution and Services Provider (60+ employees) in the region of South-East Europe with offices in Croatia, Slovenia, Serbia and Bosnia and Herzegovina. They are operating in a challenging region, four relative young countries with historically more an inside focus than a global focus. Many of CADCAM Group customers are in the automotive supply chain and to stay significant for the future they need to understand and develop a strategy that will help them to move forward.

My presentation was related to the learning path each company has to go through to understand the power of digital combined with the observation that current and future ways of working are not compatible therefore requiring a scaled and bimodal approach (see also PDT Europe further down this post).

This presentation matched nicely with Oscar Torres’s presentation related to strategy. You need to decide on the new things you are going to do, what to keep and what to stop. Sounds easy and of course the challenge is to define the what to start, stop and keep. There you need good insights into your current and future business.

Pierre Aumont completed the inspiring session by explaining how the automotive industry is being disrupted and it is not only Tesla. So many other companies are challenging the current status quo for the big automotive OEMs. Croatia has their innovator for electrical vehicles too, i.e. Rimac. Have a look here.

The presentations were followed by a (long) panel discussion. The common theme in both discussions is that companies need to educate and organize themselves to become educated for the future. New technologies, new ways of working need time and resources which small and medium enterprises often do not have. Therefore, universities, governments and interest groups are crucial.

A real challenge for countries that do not have an industrial innovation culture (yet).

CADCAM Group as a catalyst for these countries understands this need by organizing these executive days. Now the challenge is after these inspiring days to find the people and energy to follow-up.

Note: CADCAM Group graciously covered my expenses associated with my participation in these events but did not in any way influence the content of this paragraph.

 

The MBD/MBE discussion

In my earlier post, Model-Based: Connecting Engineering and Manufacturing,  I went deeper into the MBD/MBE topic and its potential benefits, closing with the request to readers to add their experiences and/or comments to MBD/MBE. Luckily there was one comment from Paul van der Ree, who had challenging experiences with MBD in the Netherlands. Together with Paul and a MBD-advocate (to be named) I will try to have discussion analyzing pro’s and con’s from all viewpoints and hopefully come to a common conclusion.

This to avoid that proponents and opponents of MBD just repeat their viewpoints without trying to converge. Joe Brouwer is famous for his opposition to MBD. Is he right or is he wrong I cannot say as there has never been a discussion. Click on the above image to see Joe’s latest post yourself. I plan to come back with a blog post related to the pro’s and con’s

 

The Death of PLM Consultancy

Early this year Oleg Shilovitsky and I had a blog debate related to the “Death of PLM Consultancy”. The discussion started here: The Death of PLM Consultancy ? and a follow-up post was PLM Consultants are still alive and have an exit strategy. It could have been an ongoing blog discussion for month where the value would be to get response from readers from our blogs.

Therefore I was very happy that MarketKey, the organizers behind the PLMx conferences in Europe and the US, agreed on a recorded discussion session during PLMx 2018 in Hamburg.  Paul Empringham was the moderator of this discussion with approx. 10 – 12 participants in the room to join the discussion. You can view the discussion here through this link: PLMx Hamburg debate

I want to thank MarketKey for their support and look forward to participating in their upcoming PLMx European event and if you cannot wait till next year, there is the upcoming PLMx conference in North America on November 5th and 6th – click on the image on the left to see the details.

 

 

PDT Europe call for papers

As you might have noticed I am a big supporter of the joint CIMdata/PDT Europe conference. This year the conference will be in Stuttgart on October 24th (PLM Roadmap) and October 25th (PDT).

I believe that this conference has a more “geeky” audience and goes into topics of PLM that require a good base understanding of what’s happening in the field. Not a conference for a newcomer in the world of PLM, more a conference for an experienced PLM person (inside a company or from the outside) that has experience challenging topics, like changing business processes, deciding on new standards, how to move to a modern digital business platform.

It was at these events where concepts as Model-Based were discussed in-depth, the need for Master Data Management, Industry standards for data exchange and two years ago the bimodal approach, also valid for PLM.

I hope to elaborate on experiences related to this bimodal or phased approach during the conference. If you or your company wants to contribute to this conference, please let the program committee know. There is already a good set of content planned. However, one or two inspiring presentations from the field are always welcome.
Click on this link to apply for your contribution

Conclusion

There is a lot on-going related to PLM as you can see. As I mentioned in the first topic it is about education and engagement. Be engaged and I am looking forward to your response and contribution in one or more of the topics discussed.

questionaire

As promised I would come back to the results of my small questionnaire about PLM for the mid-market. Here are the answers:

 

 

 

 

What is your relation to PLM ?

PLM consultant 51 %
IT specialist 21 %
Interested in PLM related to my work 14
PLM vendor 9 %
Student 5 %

The answers show that the majority of readers are professionals directly involved with PLM, which is of course not strange for my blog. And good to see, the real majority is PLM consultant. At that time when I launched the questionnaire, I was not making a differentiation between independent consultants and PLM supplier specific consultants. And you need them both.

Do you believe PLM has a place in the mid-market?

Yes, it is already happening 57 %
Yes, it is a matter of time and education 38 %
No, mid-market companies do not need PLM 5 %
No, there is no place for a PLM system next to CAD and ERP 0 %

Of course it is a PLM blog, so this explains the 0 % for the last alternative. Also it is clear that the readers of this blog believe PLM has a place in the mid-market. Some remarks here were:

  • It depends on product and maturity cycles and on whether this service is provided by the larger companies who the mid market company is supplying (IT enterprise architect)
  • PLM is a strategy and can be implemented by any tool (Student)

Who should provide PLM functionality in the mid-market

A special PLM provider 72 %
A CAD supplier as extension of their data management 14 %
A system integrator 7 %
An IT supplier, like Microsoft, as part of their architecture 5 %
An ERP supplier as extension of their BOM management 2 %

Good news, we are among PLM friends and believe it must be a PLM provider that will bring the PLM functionality to the market, not a CAD or IT-supplier. System integrators are the majority of the minority here. Some remarks here were:

  • One size doesn’t fit all. A special solution need to be provided (PLM Consultant)
  • For me, the best solutions for mid market involve low-cost of ownership, easy to use and limited but straight forward capabilities. ERP and CAD vendors are far from there from what I can see, but at least they are integrated with one or the other part. Cloud computing solutions would be the best, that could integrate with ERP and CAD would be the best. (PLM Consultant)
  • Any one, who have technical sound knowledge, broad thinking and customized software tools like ERP and CAD (Student)

I would like to see more discussion about:

PLM implementation experiences 44 %
PLM basic principles / best practices 34 %
PLM vendors and their specific coverage 10 %
PLM selection guidelines 8 %
PLM functions and features 5 %

It is clear that readers from this blog want to read PLM related topics vendor independent and I will focus on this the upcoming post about the two major responses: PLM implementation experiences and PLM basic principles and best practices. Some of the other requests were:

  • How PLM can support inter-company collaboration at design time, manufacturing time and operational support time and how service oriented technologies have a role in this, especially when products can now be supported by 3rd party companies (not the OEM). (IT Enterprise Architect)
  • As we have not came to final Point of PLM as it is vast field and will not be, so we will be discussing on different points (student)

 

Conclusion:

So I want to thank all of you who responded to this mini-questionnaire and as we are PLM supporters, I will focus in my upcoming post again on mid-market PLM experiences and practices.

 

This time I will conclude with an anecdote:

Some time ago a Christian PLM Sales professional died (let’s call him Jack) and according to his believe he faced Saint Peter at the gates of Heaven and Hell.
Saint Peter greeted Jack and said: “Jack, With your PLM Sales you have done good and bad things to the world and for that reason, I cannot decide if you should go to Heaven or to Hell. Therefore I allow you to make the choice yourself”.


Jack replied: “But Saint Peter, how can I make such an important decision for the rest of my eternal life. It is too difficult !”

Saint Peter replied: “No problem Jack, take a look at Heaven and Hell, take your time and then come back to tell me your decision”

Jack entered Heaven and he was surprised about the quietness and green atmosphere there. Angels were singing, people were eating from golden plates with the best food ever, people were reading poetry and everything was as peaceful as you could imagine. In the distance he could see God surrounded by some prophets talking about the long-term future. After some time Jack had seen it and went to Hell to have a view there.

And when he opened the gates of Hell, he was astonished. Everywhere he looked there were people partying, having fun. It reminded him off these sales kick-offs, he had in the past, exotic places with lots of fun. In the distance he could see the Devil as DJ playing the latest dance music – or was it DJ Tiësto ?

Jack did not hesitate and ran back to Saint Peter, no time to lose. “Saint Peter” he said “I want to go to Hell, no doubt and pity I did not know it before”

“So be it” said Saint Peter “go for it.”

SNAGHTML883dbfAnd then once Jack entered Hell, it was suddenly all fire around him, people were screaming of pain and suffering and also Jack felt the first flames.

“Devil!!”  he screamed “what happened to what I have seen before?”

 

With a sarcastic voice the devil replied: “That ? That was a demo”

observation Two weeks ago I was writing about the Silent PLM approach. What I showed in that post that often the PLM vision as a complete vision does not exist in all layers of the organization.
Often the management in is not aware of where and how PLM can have an impact. In the Silent Management approach, one or more visionary people believe they can introduce PLM by starting it in their department, and from there grow and extend the impact of PLM. As I concluded,  this approach usually fails in most of the cases as when the decisive step comes to extend PLM to other departments and to change current processes, this is the point where is mostly gets stuck.

Other departments and the management do not see how this engineering / CAD extension could benefit for them and the whole organization. Why not extending our ERP system as this already exists ? And here a stand still will come up until a push comes. The push can come from the top or from the outside world. From my experience more then half of the companies that started this silent PLM approach got stuck where they are ……..

So this time another approach, called the academical approach. And again a disclaimer, I am generalizing and putting some points a little more in the extreme to demonstrate the difference between the approaches. Any similarity with the real world is pure coincidence

Approach 2:  Academical PLM

Inside our mid-market company ACCPY,  the management has understood that PLM will bring a lot of benefits and in case they were not aware of it, they have learned from analyst reports, from blogs and from their network that PLM should bring a lot benefit for them.

myplm So the management decides to prepare and educate themselves and they start a PLM taskforce inside ACCPY to collect and digest all the information. The team has enthusiastic members from all departments and starts buying some books and reports on PLM. In addition they visit some PLM events all around the country and sometimes around the continent. These visits lead to contact with PLM Vendors who also start to educate why their PLM is the one fitting ACCPY the best. After one or two years of education they are theoretical skilled and know to differentiate between EDM, PDM, cPDM and even they learn to understand the difference between PDM and ERP.

As a conclusion of their learning stage the PLM taskforce presents to the management a firm report, explaining what is PLM and how ACCPY can benefit from it plus recommendations how to proceed.

PLMmindsharers The management is happy with the result, that what they thought two year ago was really valid and agrees with the report and recommendations. Now the selection of the PLM system needs to be done and who will be the implementation partner. Although all PLM vendors have been knocking on their door already to explain the benefits and implementation approach from their solution, ACCPY decides to hire an ‘independent’ PLM consultancy firm to assist with the selection of the solution.

The consultancy firm starts with interviewing the key members of ACCPY, in order to understand the major processes and the needs per department. A month later they present to the management a PLM Vendor Selection Procedure, where in 15 pages the PLM Vendor has to explain and confirm requirement per requirement, the implementation approach and give a budget estimate.

searchThis RFQ will be sent to 5 PLM vendors which were already in touch with ACCPY since the PLM research started. Also the consultancy firm brought in a company which they new very well.  It takes a few weeks for the consultancy firm to compile the RFQ and two months later the responses are there.

From the received proposals three PLM vendors are invited to benchmark their system and company based on a business case developed by the consultancy firm together ACCPY.

PLM Vendor 1

The first PLM vendor gives a standard demo of the system and explains that the business case is well known to them and therefore instead of showing it, they give a whole set of screenshots and references. The attendees had a good feeling with this vendor

PLM Vendor 2

The second PLM vendor tries to follow exactly the business case as defined. The attendees liked the fact that  all was demonstrated so well, however the PLM system seems to be rather too complex and giving a lot of overhead to the engineers,  according to their impression.

PLM Vendor 3

The third PLM vendor was already known to the company as they were also providing the 3D CAD system.  In their presentation they explained how well they knew ACCPY already and that the business case was too artificial. They demonstrated some gadgets of their PLM system which none of the competing vendors could do, thanks to their tight integration with the CAD system. The attendees were impressed, however a few days later, they were asking themselves, why were those gadgets needed ? None of the other vendors talked about it and it was also not part of the RFQ.

sel_a So now it was time for the consultancy firm together with the task force to  process all the information and to determine the final score. On product features they had a nice comparison – only hard to tell what was most important. On usage it was more difficult, as they got three different approaches during the benchmark, so the scores for this section was rather artificial. Also the financial part seemed to be hard to compare but at least it gave an indication.

As it is an academical approach, my post for this week ends here. We need to give the ACCPY task force together with the consultancy firm some time to build a justification for their choice and next week we will discover how this story ended. Meanwhile ask yourself:

  • how much time has passed since the management decided PLM was good for their organization ?
  • how independent is the consultancy firm ?
  • did they consider open source PLM as a solution ?
  • what was the ranking of the PLM vendors ?
  • read the book Blink the power of thinking without thinking about intuition

Conclusion (so far): Academical PLM takes time and it would be unfair to explain it all in one post.
So next week the real conclusion.

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