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At the moment this post is published I have had time to digest the latest PLMx conference organized by MarketKey. See the agenda here. For me it was a conference with mixed feelings this time and I will share more details a little further on.

Networking during the conference was excellent, good quality of conversations, however the number of people attending was smaller than previous conferences, perhaps due to too much diversification in the PI conferences?

There were several inspiring sessions and as I participated in three sessions myself, I missed a lot of potential exciting sessions that were in parallel at the same time. I believe four parallel tracks is too much and downloading the presentations later does not give you the real story.  Now some of the notable sessions I attended:

Building a Better Urban Mobility Future

The first keynote session was meant to inspire us and think of solving issues differently. Lewis Horne from a Swedish automotive startup explained their different approach to designing an electrical vehicle. Not based on classical paradigms – you do not need a steering wheel – you can navigate differently. And switching the indicator on when going left or right is now a swipe. Of course these were not the only differences.

Unity will not certify for the highest safety classes like other vehicles as car safety rules are a lot based on mechanical / human handling and responses. A fully computerized and full of sensors has complete different dynamics. And a light city car does not ride on the high-speed way. Based on the first prototype there are already more than 1000 pre-orders but Unity does not have a manufacturing facility. This will be franchised. Unity used the Apple mode – focus on an unmatched user-experience instead of manufacturability. Let’s see what happens when the first Unity’s start riding – current target prices 20.000 Euro. Will it be the new hype for modern citizens?

Focus on quality – not on happy engineers

Not only the title of this paragraph but also other statements were made by Hilmer Brunn, head of global PLM from Mettler-Toledo related to their PLM implementation strategy.  As Hilmer stated:

We should not focus to give engineers more time to design only. The job of engineering is more comprehensive than just creating designs. Engineers also need to solve issues that are related to their design – not leave it to the others.

Another interesting statement:

As long as you do not connect simulation to your design in 3D, you are actually working with 3D as if you do it with 2D. The value of 3D is more than just representation of geometry.

And the last quote I want to share from Hilmer was again related to engineering.

Engineering should consider themselves as a service provider of information to the rest of the company, providing the full information associated with a design, instead of behaving like extreme, intelligent people who need more resources to translate and complete their work.

Grand statements although during Q&A it became clear that also Mettler-Toledo did not have the magic bullet to get an organization work integrated.

Working towards a Model-Based Enterprise with PLM

I consider Model-Based practices as one of the essential needs for future PLM as this approach reduces the amount of derived information related to a product/ system. And it provides a digital continuity. In the last PDT conference in Gothenburg this topic was shared on a quit extensive matter. Have a read to fresh-up your memory here:  The weekend after PDT Europe – part 1 and part 2

The focus group  which I moderated was with approximate 20 attendees and the majority was looking for getting a better understanding what model-based would mean for their organization. Therefore, the discussion was at the end more around areas where a few persons had the experience while others still tried to grasp the concepts. For me a point to take action related to education and in future posts I will go deeper into the basics.

PLMPulse Survey results and panel discussion

Nick Leeder presented the context of the PLMPulse survey and the results in a precise manner, where perhaps the result was not that surprising to the audience as many of us are involved in PLM. Two recurring points: PLM is still considered as an engineering tool and: The value related to PLM is most of the time not clear. You can register and download the full report from here.

Next Nick lead a panel discussion where people from the audience could participate.  And here we got into a negative spiral where it became an inward-looking discussion why PLM has never been able to show the value and get out of the engineering domain. It was a someone said like an anonymous PLM meeting where members stood up and confessed they were also part of the group that could not change this behavior.

Was it the time of the day? Was it the mood of the audience? Too much old experiences?  I believe it has to do with the fact that in PLM projects and conferences we focus too much on what we do and how we do things, not connecting it to tangible benefits that are recognized at the board level. And we will see an example later.

Solar Stratos

The food and drinks at the end of day 1 probably washed away the PLMPulse feedback session and Raphael Domjan inspired us with his SolarStratos project – a mission to develop a plane that can fly on solar energy on the heights of the stratosphere. Raphael is working hard with a team now to get there.

Designing an airplane, more a glider, that can take off en reach the stratosphere on solar energy requires solving a combination of so many different challenges. The first test flight reached an altitude of 500 m, but you can imagine challenges with the stratosphere – lack of oxygen / air pressure need to be solved. Raphael is looking for funding and you can find more details here. Back to the relative easy PLM challenges

The future of PLM Consultancy

Together with Oleg Shilovitsky we had a discussion related to the ways PLM could be realized in different manners thanks to changing technology. The dialogue started through our blogs – read it here. In this session there was a good dialogue with the audience and MarketKey promised to share the video recording of this session soon.  Stay tuned to Oleg’s blog or my blog and you can watch it.

PLM in the context of digitization

This was my main personal contribution to the conference. Sharing insights why we have to approach PLM in a different manner. Not the classical linear engineering approach but as a mix of system of record and system of engagement. You can see the full presentation on SlideShare here.

My main conclusions are that PLM consultants / experts focus too much on what and how they do PLM, where the connection to WHY is missing. (See also my post PLM WHY?).

In addition I defended the statement that old and new PLM are incompatible and therefore you need to accept they will exist both in your organization. For a while or for a long time, depending on your product lifecycle.  In order to reduce the gap between old and new PLM, there is a need for data governance, model-based ways of working, which allow the company to connect at some stages the old/record data and the new data. And don’t do pilots anymore experimenting new ways of working and then stop because the next step seems to be overwhelming. Start your projects in small, multidisciplinary teams and make them real. The only way to be faster in the future.

PLM in Manufacturing as Backbone of the Smart Factory

Susanne Lauda, Director, Global Advanced Manufacturing Technology, AGCO Corporation provided an overview related to AGCO’s new PLM journey and how they were benefiting from a digital thread towards manufacturing. It felt like a smooth vendor demo as everything looked nice and reasonable. It was all about the WHAT. However two points that brought the extra:

When moving to the new system the tried to bring in the data from an existing product into then new system. According to Susanne a waste of time as the data required so much rework – there was no real value added for that. This confirms again my statement that old and new PLM are incompatible and one should not try to unify everything again in one system.

Second, I got excited at the end when we discussed the WHY for PLM and the business value of PLM. Here Suzanne mentioned PLM started as a “must-do strategic” project.  PLM lead to a reduction of time to market with almost 50 %. Suzanne did not give exact number, but you can imagine I have heard these numbers from other companies too. Why aren’t we able to connect these benefits in the mindset of the management to PLM ? Perhaps still too much engineering focused.

Next Susanne explained that they investigated the cost for quality for their manufacturing plants. What if something was produced wrong, the wrong parts were ordered, the delays to fix it, the changes needed to be made on the shop floor?  These results were so high that people were even afraid to report them. This is the case at many companies I worked with – even their PLM consultants do not receive these numbers – you just have to imagine they are big.

At AGCO they were able to reduce the cost for quality in a significant manner and Susanne explain that PLM was a main contributor to that success. However, success always has many fathers – so if your PLM team does not claim loud (and we are modest people not used to talk finance) – the success will not be recognized.

PLM’s Place Within an Enterprise Application Architecture

Peter Bilello from CIMData in the closing keynote speech gave an excellent summary and overview of where and which capabilities fit in an enterprise architecture and the positioning of a product innovation platform. A blueprint that can be used for companies to grasp the holistic view before jumping into the details of the tools.

Conclusion

PLMx Hamburg 2018 was an event with valuable highlights for me and potential I missed several more due to the fact of parallel streams. I hope to catch-up with these sessions in the upcoming month and share interesting thoughts that I discover with you. What remains crucial I believe for all vendor-neutral events is to find new blood. New companies, new experiences that are focused on the future of PLM and connect to the WHY or the WHAT WE LEARNED values.

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In my earlier post; PLM 2018 my focus, your input, I invited you to send PLM related questions that would spark of a dialogue. As by coincidence Oleg Shilovitsky wrote a post with the catchy title: Why traditional PLM ranking is dead. PLM ranking 2.0. Read this post and the comments if you want to follow this dialogue.

Oleg reacts in this post on the discussion that had started around the Forester Wave ranking PLM Vendors, which on its own is a challenging topic. I know from my experience that these rankings depend very much on a mix of functions and features, but also are profoundly influenced by the slideware and marketing power of these PLM Vendors. Oleg also quotes Joe Barkai’s post: ranking PLM Vendors to illustrate that this kind of ranking does not bring a lot of value as there is so much commonality between these systems.

I agree with Oleg and Joe. PLM ranking does not make sense for companies to select a PLM solution. They are more an internal PLM show, useful for the organizing consultancy companies to conduct, but at the end, it is a discussion about who has the biggest and most effective button. Companies need to sell themselves and differentiate.

Do we need consultancy?

We started a dialogue on the comments of Oleg’s blog post where I mentioned that PLM is not about selecting a solution from a vendor, there are many other facets related to a PLM implementation. First of all, the industry your company is active in. No solution fits all industries.

But before selecting a solution, you first need to understand what does a company want to achieve in the future. What is the business strategy and how can PLM support this business strategy?

In most cases, a strategy is future-oriented and not about consolidating the current status quo. Therefore I believe a PLM implementation is always done in the context of a business transformation, which is most of the time not only related to PLM – it is about People, Processes and then the tools.

Oleg suggests that this complexity is created by the consulting business, as he writes:

Complex business and product strategies are good for consulting business you do. High level of complexity with high risk of failure for expensive PLM projects is a perfect business environment to sell consulting. First create complexity and then hire consulting people to explain how to organize processes and build business and product strategy. Win-win

Enterprise and engineering IT are hiring consulting to cover their decision process. That was a great point made by Joe Barkai- companies are buying roadmaps and long-term commitments, but rarely technologies. Technologies can be developed, and if even something is missed, you can always acquire independent vendors or technology later – it was done many times by many large ISVs in the past.

Here I agree with a part of the comments. If you hire consultancy firms just for the decision process, it does not make sense/ The decision process needs to be owned by the company. Do not let a consultancy company prescribe your (PLM) strategy as there might be mixed interests. However, when it comes to technologies, they are derived from the people and process needs.

So when I write in the comment:

We will not change the current status quo and ranking processes very soon. Technology is an enabler, but you need a top-down push to work different (at least for those organizations that read vendor rankings).

Oleg states:

However, the favorite part of your comments is this – “We will not change the current status quo and ranking processes very soon.” Who are “we”???? Management consulting people?

With “we” I do not mean the consulting people. In general, the management of companies is more conservative than consultants are. It is our human brain that is change averse and pushes people to stay in a kind of mainstream mode. In that context, the McKinsey article: How biases, politics, and egos derail business decisions is a fascinating read about company dynamics. Also, CIMdata published in the past a slide illustrating the gap between vision, real capabilities and where companies really are aiming at.

There is such a big gap between where companies are and what it possible. Software vendors describe the ideal world but do not have a migration path. One of the uncomfortable discussions is when discussing a cloud solution is not necessary security (topic #1) but what is your exit strategy? Have you ever thought about your data in a cloud solution and the vendor raises prices or does no longer have a viable business model. These are discussions that need to take place too.

Oleg also quotes a CIMdata cloud PLM research how companies are looking for solutions as they are “empowered” by the digital world. Oleg states:

In a digital world, companies are checking websites, technologies, watching YouTube and tried products available online. Recent cloud PLM research published by CIMdata tells that when companies are thinking about cloud PLM, the first check they do is independent software providers recommendations and websites (not business process consultants).

I am wondering the value of this graph. The first choice is independent software recommendations/websites.  Have you ever seen independent software recommendations?

Yes, when it comes to consumer tools. “I like software A because it gives me the freedom what to do” or “Software B has so many features for such a low price – great price/value ratio.”

These are the kind of reviews you find on the internet for consumers. Don’t try to find answers on a vendor website as there you will get no details, only the marketing messages.

I understand that software vendors, including Oleg’s company OpenBOM, needs to differentiate by explaining that the others are too complex. It is the same message you hear from all the relative PLM newcomers, Aras, Autodesk, …….

All these newcomers provide marketing stories and claim successes because of their tools, where reality is the tool is secondary to the success. First, you need the company to have a vision and a culture that matches this tool. Look at an old Gartner picture (the hockey stick projection) when all is aligned. The impact of the tool is minimal.

Conclusion

Despite democratization of information, PLM transformations will still need consultants or a well-educated workforce inside your company. Consultants have the advantage of collected experience, which often is not the case when you work inside a company. We should all agree that at the end it is about the business first (human beings are complex) and then the tools (here you can shop on the internet what matches the vision)

Although this post seems like ping-pong match of arguments, I challenge you to take part of this discussion. Tell us where you agree or disagree combined with argumentation as we should realize the argumentation is the most valuable point.
Your thoughts?

Potential digital transformation is everywhere. This time I want to share a personal story based on my IoT cycling device from Garmin. Several years ago I became an enthusiastic cyclist, mainly because it clears your mind and cycling keeps you in good shape after enjoying customer visits with great dinners and excellent breakfasts. As the Dutch lack real mountains, we challenge ourselves with through open fields with strong winds to suffer a little too.

 

Four years ago, started tracking my cycling performance, with a Garmin Edge 810. The story of my Garmin is a real IoT story. GPS trackers, in the beginning, did not communicate with the outside world. Now, this device connects to sensors registering my speed, my location, my heart rate, pedal cadence and produced power at any time, finally uploading it to the Garmin Connect platform.

The IoT platform

The Garmin Connect platform gives me insights on my performance, activities, and segments. The segment demonstrates the social part of the platform. Here you can see how you rank with others who have cycled the same track segment over time. And you can register your own preferred segment too, where you challenge yourself and others in your area. So the number of segments is growing continuously. Imagine all these cyclists around the world virtually sharing and taking the same track. I am curious to learn from Garmin how many people are connected to the platform.
I could not find these numbers. You?

The fun of segments

Digital Twin

Through the platform, Garmin collects huge amounts of data of connected users. Each data set of the connected user could be considered a simple digital twin. The Connect platform provides me insights about my overall performance through the years through various reports. Garmin could offer as a (paid) service to deliver insights of my performance compared to other users and propose predictive enhancements similar to the GE Predix platform. The difference of course that 1 % performance improvement for me in cycling does not bring the same value as 1 % performance improvement of a GE product (turbine, jet engine, train, …). However, the concept is the same and GE is promoting themselves as the next Digital Industrial Company, leading in digital transformation. Read more here.

Digital Twin performance

Connecting to the customer

Tthe change from moving from a document-driven approach towards a data-driven approach to collect and store information is not the main concept behind a digital transformation. The data-driven approach is an enabler to connect directly to the customer and change the current business model from delivering products into a business model delivering services or even more advanced delivering experiences. Services and experiences create a closer relation to the customer, more loyalty, but also the challenge that you need to connect to the customer in such a way that the customer sees value. Otherwise, the customer will switch to another service or experience. The Apple, Nespresso, Uber experiences are all known for their new ways of connecting to the customer, differentiating from traditional product sales. Garmin could also be on that list. However, I discovered they are not there yet, despite an IoT-platform and connected devices. What is missing?

Why Garmin is not a digital enterprise.

Two years ago my Garmin Edge started crashing in the middle of a ride. The system rebooted after some minutes, and the recordings were lost or at least unreadable.  When I contacted Garmin support their standard response was: “Please reset the device and update to the latest software.” Two years ago the software had still bug fixes. After two years you would expect a stable experience.

However, a year ago the problems started to become more frequent. I started to send log files illustrating where the error occurred. Still, the Garmin response was the same: “Please reset the device and update to the latest software.”
However as there were no new software updates, there must be another reason why the device failed more and more.

After pushing for a resolution, the service department concluded I needed a new device. There might be an issue with the hardware. A little bit skeptical I agreed on a hardware switch again, and as expected this did not solve the crashes. My guess is that due to the increasing amount of segments at some places, the software gets confused where the rider is exactly located and in which direction the rider is going. These are the moments when the crash happens, and this is probably a software issue.

Still, the Garmin help desk believes there is a hardware problem (preferably swap the device) where I kept on providing evidence data of crashes to support Garmin in their error-discovery. Till now there is no resolution. The good news is that Garmin support mentioned investigating further.

For me, the interaction with Garmin illustrates that the company internally is not yet digital transformed. The service desk probably has KPIs (Key Performance Indicators) related to their response time and problem resolution time. Although I can debate the response time, it is clear that the problem resolution approach: Update to the latest software and if this does not work swap to a new device is not increasing the knowledge from Garmin as a company what their customers are experiencing.

Apparently, their software management is disconnected from the service department and customers. Only clear bugs during the first launch are fixed. Next, it is a disconnected world again.

A must for a digital enterprise is to dive into customer issues and to connect them back to R&D, both for the hardware part and software part. Something a modern product manager would do. If a company is not able to understand the multidisciplinary dependencies and solve issues from the field (with some effort), they will keep on making the same mistakes again with new product launches and lose customers who are looking for a better experience.

My conclusion

PLM should be part of the digital enterprise too as this is the only way to deliver consistent customer value and positive experience. It requires companies to break down silos and create multidisciplinary teams that are capable of supporting the full customer journey. A digital device and a digital customer platform are just facades to the outside world – the inside needs to change too.

What do you think?
Does your company understand the challenges to transform across all disciplines?
Are you managing PLM, ALM, and IoT in context of the product and across the whole lifecycle?
I am curious !

reflectSummer holidays are upcoming. Time to look back and reflect on what happened so far. As a strong believer that a more data-driven PLM is required to support modern customer-focused business models, I have tried to explain this message to many individuals around Europe with mixed success.

Compared to a year ago the notion of a new PLM approach, digital and data-driven, has been resonating more and more. Two years ago I presented at the Product Innovation conference in Berlin a session with the title: Did you notice PLM is changing ? The feedback at that time was that it was a beautiful story, probably happening in the far future. Last year in Düsseldorf ( my review here), the digital trend (s) became clearer. And this year in Munich (my review here), people mentioned upcoming changes were unavoidable, in particular in the relation with IoT, how it could drastically change existing business models.

thinkFor me, the enjoyable thing of the PI Conferences is that they give a snapshot of what people care the most in the context of their product development and in particular PLM. When you are busy in day-to-day business, everything seems to move slowly forward. However, by looking back, I must admit the pace of change has increased dramatically, not the same pace as it was five or ten years ago.

Something is happening, and it happens fast !

And here I want to encourage my readers to step back for a moment from day-to-day business and look around what is happening, in business and in the world. It is all related !

imageJobs are disappearing in the middle class due to automation and direct connectivity with customers creates new types of businesses. Old jobs will never come back, not even when you close your border. And this is what worries many societies. This global, connected world has created a new way of doing business, challenging old and traditional businesses (and people) as their models become obsolete.

The primary reaction is trying to close the discomfort outside. Let´s act as if it never happened and just switch back to the good life in the previous century or centuries.

To be honest, it is all about the discomfort this new world brings to us. This new world requires new skills, in particular, more personal skills to develop continuously, learn and adapt for the future. Closing your mind and thought for the future, by hanging in the past, only brings you further away from the future and create more discomfort.

Are you talking PLM ?

Yes, the previous section was very generic, however also valid for PLM. Modern enterprises are changing the way they are going to do business and PLM is a crucial part of that total picture. Jeff Immelt, CEO of GE, explains in a discussion with Microsoft´s CEO Satya Nadella what it takes for an organization to be ready for the future. He does not talk about PLM, he talks about the need for people to be different in attitude and responsibilities – it is a business transformation – people first. Have a look here:

And although Jeff does not mention PLM, the changing digital business paradigm will affect all classical system, PLM, ERP, CRM.  And your PLM vision and plans should anticipate for such a business transformation. Implementing PLM now in the same way is has been done for 10 years in the past, with the processes from the past in mind might make your company even more rigid than before.  See my recent blog post: The value of PLM at the C-level.

Take this thought into consideration during your holidays. Can you be comfortable in this world by keep on hanging on the past or should you consider an uncomfortable, but crucial change the way your company will remain (flexible) in future business?

My holiday this year will be in my ultimate comfort zone at the beach. Reading books, no internet, discussing with friends what moves us. Two weeks to charge the batteries for this exciting, rapidly changing world of business (and PLM). I look forward coming back with some of my findings in my upcoming blogs.

104-06

Getting in and out of your comfort zone happens everywhere. Read this HBR article with a lot of similarities: If You’re Not Outside Your Comfort Zone, You Won’t Learn Anything

See you soon in the PLM (dis)comfort zone

myplmSorry guys, I am aware of the fact that the definition of PLM is very ambiguous. Every vendor, implementor and probably PLM consultant has a favorite definition. Just to illustrate this statement,  read Brain Soaper´s recent post: What are the top 5 things to know about PLM ?

Interesting Brian starts with stating the definition of PLM is priority #1, however as you can see from the comment session, it is all about having inside your company a common definition of PLM.

And now I start writing about digital PLM, again a definition. You might have read in my blog about classical PLM and modern PLM.

Classical PLM

classical PLMFor me, classical PLM is the way PLM has been implemented in the past 15 years, often as an extension of engineering with the purpose of centralizing and sharing information.

In particular for CAD data, classical PLM is focusing on managing files in a controlled way, through check-in and check-out mechanisms. On top of file management, classical PLM provides more data-driven functionality, like project management, process governance (workflows / approvals / ECx processes) and BOM management (to link to ERP).

Classical PLM can still bring great benefits to a company as time for searching, paper-based processes and data retyping in ERP can be avoided, leading to reuse and fewer errors. The ROI time for a classical PLM implementation lays between two years to three years; my observations from the past. This time can still vary a lot as not every company or implementor/vendor uses the ideal approach to implement PLM, due to cultural issues, wrong expectations or lack of experience from both parties.

The connotations I have with classical PLM are:
linear, rigid, mechanical,(old) automotive, previous century

Modern PLM = Digital PLM

InfoInContextModern PLM is based on the vision that all information should be managed and stored as data objects, not necessary in a single system. Still the PLM infrastructure, using structured and unstructured data, should give each user in the organization with almost real-time information in context of other relevant information.

My non-stop blog buddy Oleg recently wrote a post in that context: Data as a platform & future manufacturing intelligence. Oleg is nicely describing some of the benefits of a data-driven approach.

Accenture provides insight with their infographic related to Digital PLM. Read it here as it is very concise and gives you a quick impression what Digital PLM means for an organization. Here is my favorite part, showing the advantages.

accenture digital PLM

The substantial advantages from digital PLM are all coming from the fact that information is stored as data objects, all having their individual versions, relations and status. The advantage of data elements is that they are not locked in a document or specific file format. Information can flow to where or whom needed without translation.

The connotations I have with digital PLM are:
real-time, data continuity, flexible, software and future.

 

Still some caution:

Reported ROI numbers for digital PLM are significant larger than classical PLM and I observed some facets of that. Digital PLM is not yet established and requires a different type of workforce. See other blog post I wrote about this theme: Modern PLM brings Power to the People.

But what about digital PLM – where is the word digital relevant ?

ETO – model-based engineering

Where to focus first depends very much on your company´s core business process. Companies with an Engineering To Order (ETO) process will focus on delivering a single product to their customer and most of the time the product is becoming more like a system, interacting with the outside world.

Big challenges in ETO are to deliver the product as required, to coordinate all disciplines preferable in a parallel and real-time manner – in time – on budget. Here a virtual model that can be accessed and shared with all stakeholders should be the core. The construction industry is introducing BIM for this purpose (a modern version of DMU). The virtual model allows the company to measure progress, to analyze and simulate alternatives without spending money for prototypes. In the ideal world engineering and simulation are done on the same model, not losing time and quality on data translations and iterations.

The virtual model linked to requirements, functions and the logical definition allows virtual testing – so much cheaper and faster and therefore cost efficient. Of course this approach requires a change in how people work together, which is characteristic for any digital business. Breakdown the silos.

Typical industries using the ETO model: Construction, Energy, Offshore, Shipbuilding, Special Equipment

 

CTO – model-based manufacturing

In a Configure To Order (CTO) business model you do not spend time for engineering anymore. All options and variants are defined and now the focus is on efficient manufacturing. The trend for CTO companies is that they have to deliver more and more variants in a faster and more demanding global market. Here the connectivity between engineering data and manufacturing data becomes one of the cornerstones of digital PLM. Digital PLM needs to make sure that all relevant data for execution (ERP and MES) is flowing through the organization without reformatting or reworking the data.

The digital thread is the dream. Industry 4.0 is focusing on this part. Also in the CTO environment it is crucial to work with a product model, so all downstream disciplines can consume the right data. Although in CTO the company´s attention might go to MES and ERP, it is crucial that the source of the product model is well specified and under control from (dgital) PLM.

Typical CTO industries are: Automotive, Consumer Goods, High-Tech, Industrial Equipment

BTO – models everywhere

flexibleIf your company has a Build To Order main delivery process, the optimum for digital PLM lies in the middle of ETO and CTO, depending on the type of products your company delivers.

In BTO there is always engineering to do. It can be customer specific engineering work (only once) or it can be changing/ adding new features to the product.

Modularity of the product portfolio might be the answer for the first option, where the second option requires strong configuration management on the engineering side, similar to the ETO model. Although the dream of many BTO companies is to change a CTO company, I strongly believe change in technology and market requirements will always be faster than product portfolio definition.

pointETO, BTO and CTO are classical linear business models. The digital enterprise is changing these models too. Customer interaction (myProduct), continuous upgrade and feedback of products (virtual twin), different business models (performance as a service) all will challenges organizations to reconsider their processes.

Digital PLM utilizing a model-based or model-driven backbone will be the (potential) future for companies as data can be flowing through the organization, not locked in documents and classical processes. In my upcoming blog post I will spend some more time on the model-based enterprise.

Conclusion:
It depends on your company´s core business process where the focus on a model-based enterprise supported by (digital) PLM benefits the most. In parallel business models are changing which means the future must be flexible.

Digital PLM should be one of your company´s main initiatives in the next 5 years if you want to stay competitive (or relevant)

 

What do you think ? Am I too optimistic or too pessimistic ?

linkedinThis is a post I published on LinkedIn on July 28th related to a discussion around Excel and PLM usage and usability.
Reposted for my blog subscribers.

collaboration

This post is written in the context of two posts that recently caught my attention. One post from Lionel Grealou – comparing PLM and Excel collaboration and reaction on this post and its comments by Oleg Shilovitsky – PLM Need for speed.

Both posts discuss the difference between Excel (easy to use / easy to deploy ) and a PLM system (complex to use / complicated deployment). And when you read both posts you would believe that it is mainly deployment and usability that are blocking PLM systems to be used instead of Excel.

Then I realized this cannot be the case. If usability and deployment were blocking issues for an enterprise system, how would it be possible that the most infamous system for usability, SAP, it one of the top-selling enterprise applications. Probably SAP is the best-selling enterprise application. In addition, I have never heard about any company mentioning SAP is easy to deploy. So what is the difference?

I assume if Excel had existed in its current state in the early days of MRP, people might be tempted to use Excel for some ERP functions. However they would soon realize that Excel is error prone and when you buy the wrong materials or when make errors in your resource scheduling, soon you would try to solve it in a more secure way. Using an ERP system.

ERP systems have never been sold to the users for their usability. It is more that the management is looking for guarantees that the execution process is under control. Minimize the potential for errors and try to automate all activities as much as possible. As the production process is directly linked to finance, it is crucial to have it under control. Goodbye usability, safety first.

Why is this approach not accepted for PLM?
Why do we talk about usability?

First of all, the roots for PLM come from the engineering department (PDM) and, therefore, their primary data management system was not considered an enterprise system. And when you implement a system for a department, discussions will be at the user level. So user acceptance became necessary for PDM and PLM.

But this is not the main reason. Innovation, Product Development, Sales Engineering, Engineering are all iterative activities. In contrary to ERP, there is no linear process defined how to develop the ultimate product the first time right. Although this believe existed in the nineties by an ERP country manager that I met that time. He told me

“Engineers are resources that do not want to be managed, but we will get them.”

An absurd statement I hope you agree. However, the thoughts behind this statement are correct. How do you make sure product development is done in the most efficient manner?

If you look at large enterprises in the aerospace or automotive industry, they implemented PLM, which for sure was not user-friendly. Why did they implement PLM? As they did not want to fix the errors, an Excel-like implementation would bring.

Using Excel has a lot of hidden costs. How to make sure you work with the right version as multiple copies exist? How do you know if the Excel does not contain any type indicating wrong parts? You will learn this only once it is too late. How do you understand the related information to the Excel (CAD files, specifications, etc., etc.)? All lead to a lot of extra manual work depending on the accuracy and discipline of every employee in the company. Large enterprises do not want to be dependent on individual skills.

Large enterprise have shown that it is not about usability in the first place if you wish to control the data. Like for ERP systems, they are aware of the need for PLM with reduced usability above being (fl)Exel with all its related inconvenience.

I believe when there is a discussion about PLM or Excel, we have not reached the needed conceptual level to implement PLM. PLM is about sharing data and breaking down silos. Sharing allows better and faster collaboration, maintaining quality, and this is what companies want to achieve. Therefore the title: How do you measure collaboration. This is the process you wish to optimize, and I suspect that when you would compare user-friendly collaboration with Excel with less user-friendly PLM, you might discover PLM is more efficient.

Therefore stop comparing Excel and PLM. It is all about enabling collaboration and changing people to work together (the biggest challenge – more than usability).

Conclusion: Once we have agreed on that concept, PLM value is about collaboration, there is always to hope to enhance usability. Even SAP is working on that – it is an enterprise software issue.

I was sitting outside in the garden during Ascension Day, which is (still) a national holiday in the Netherlands (Thanks God). It was again nice and warm, and it made me think about the parallels between Global warming and PLM.

whyworryClimate change has always been there if we look at the history of our planet. We started to talk about Global Warming when scientist indicated that this time the climate change is caused by human intervention. As a result of vast amounts of carbon dioxide emissions, a greenhouse effect started to become visible. When the first rumors came that global warming began to come up, environmentalists started preaching we have to act NOW before it is too late. Meanwhile at the other side, people began arguing that it was just a coincidence, an opinion.

There is no scientific proof, so why worry?

GlobalWarmingIn the past ten years, the signs and proofs of global warming have become evident and climate conferences filled with people who want to act and on the other side the blockers, try to create progress in the battle against global warming. In particular in Europe governments and companies are starting to become aware that they can contribute to a more sustainable society.

Not enough according to the environmentalists and scientists. As our brains still operate mostly in a prehistoric mode (day-to-day survival, food, home, social status), slow changes and sustainability for next generations are not part of most people concerns. And those people, who make us aware of this lack of priority for sustainability, are considered annoying as they disrupt our lives.

Companies that have invested (heavily) in sustainable business models often have a challenging path to survive against traditional businesses. As the majority of consumers wants cheap. Some examples:

  • Energy: most power plants are heated by burning coal as this is the cheapest option. Shale gas winning became attractive because we need cheap fuel. Alternatives like solar, wind and others cannot compete on price level as long as we do not pay for the damage to nature.
  • Food: produced in bio-farms, where animal wellness or health is not part of the plan. The goal is to deliver xx kilos of meat for the lowest price. Alternative like more natural ways of growing meat or even revolutionary ways (the grown hamburger) cannot compete on price currently unless we are willing to pay for it.
  • The Fashion industry where down in its supply chains human beings are treated like slaves. When you buy a cheap garment, you know somebody has been suffering.

Governments sometimes subsidize or push sustainable technologies as they realize that something has to happen (most of the time for the public opinion – their voters) but there is no consistent strategy as liberals believe every form of support is against open competition. And as long as we let our prehistoric brain run our choices, the earth gets warmer with the consequences being visible more and more.

We know we have to act, but we do not act seriously

Now let´s switch to PLM. The association started when I saw Chad Jackson’s retweet from Lifecycle insights related to top PLM challenges.

2015Challenges

Clearly the message illustrates that costs, time, and technology have priority. Not about what PLM really can establish (even in the context of global warming).

PLM_profPLM started end of the previous century, initially invented by some of the major CAD vendors, Dassault Systemes, PTC, and Siemens. Five years later it was taken more seriously, as also enterprise software vendors, like SAP and Oracle, started to work on their PLM offering. And some years ago even the most skeptic company related to PLM, Autodesk, began to sell a PLM offering.

So like global warming we can conclude: PLM is recognized, and now we can act.

The early adopters of PLM are also in a challenging situation. Their first PLM implementations were very much focused on an IT-infrastructure, allowing data to flow through a global organization, without disrupting the day-to-day business model too much. These implementations are now a burden to many of them: costly and almost impossible to change. Look at the PLM stories from some of the major automotive companies, like Daimler, JLR, PSA, Renault, , Volvo Cars and more.

email_lockThey are all somehow kept hostage by their old implementations (as business continues) however due to changing ownership, business models and technology they cannot benefit from modern PLM concepts as it would be a disruption.

Meanwhile, PLM has evolved from an IT-infrastructure into a business-driven approach to support global, more flexible and customer-driven business processes. Younger companies that are now starting in Asia do not suffer from this legacy and are faster established based on the know-how from the early adopters.

And this is not only happing in the automotive industry. In the recent years, I have seen examples in the Oil & Gas industry, the High-Tech industry (which in theory is relative young) and the Manufacturing industry.

No_roiComing back to the 2015 PLM challenges tweeted by Chad Jackson, it looks like they are related to time and costs. Obviously it is not clear what values PLM can bring to a company outside efficiency gains (ERP/Lean thinking). Modern PLM allows companies to change their business model as I wrote recently: From a linear to fast and circular. No longer is the PLM mission to support companies with product information from cradle to grave but from cradle to cradle. Sustainability and becoming connected to customers are new demands: Operational services instead of selling products, linking it with the need for IoT to understand what is happening.

In the 2015 PLM, the discussion with executives is about purchasing technology instead of the need to change our business for long-term survival. Most investors do not like long-term visions as their prehistoric brains are tuned to be satisfied in the short-term.

changeTherefore, as long as the discussion about PLM is about IT and infrastructure and not about business change, there will be this stall, identical to what happens with addressing global warming. Short term results are expected by the stakeholders, trying to keep up the current model. Strategists and business experts are all talking about the new upcoming digital era, similar to global warming.

We know we have to act, but we do not act seriously

When I posted a short version of this post on LinkedIn on Ascension Day, I got some excellent feedback which I want to share here:

Dieter de Vroomen (independent advisor, interim manager & neighbor) wrote me an email. Dieter does not have a PLM-twisted brain. Therefore I like his opinion:

PLM and Global Warming are both assumptions, mental constructs that we can make plausible with technology and data. Both mindsets save us from disasters through the use of technology. And that’s what both sell. But is that what they produce, what we want? Apple and associates think vice versa, making what first we want and explain later the underlying technology. I miss that with global warming, but certainly PLM. That’s why it sells so bad CxO’s.

I think the point Dieter is making is interesting as he is a non-PLM guy -showing the way CxO might be  thinking. As long as we (PLMers) do not offer a packaged solution, an end-to-end experience, it is hard to convince the C-level. This is one of the significant differences between ERP (its purpose is clearly is tangible) and PLM (see my post PLM at risk! It does not have a clear target).

A more motivating comment came from Ben Muis, consultant and entrepreneur in the fashion industry. We met at the PI Apparel 2013 conference, and I like his passion for bringing innovation to the fashion industry. Read his full comments on my post on LinkedIn as he combined in his career sustainability and PLM. Two quotes from Ben:

As you may know I did quite a bit of work on how the fashion industry could and should be more sustainable in its approach. This was at a time where only a handful of people at best were willing to even think about this. Knowing that in reality the decisions around cost and commercialism were driving the agenda, I drew the conclusion that by improving processes within the industry I could actually cause a sustainability improvement that was driven by commercial desire.

Explaining how you can become involved in the bigger picture and for Ben it is the possibility to keep on working on his passion in a real-time world. And finally:

So there you have it… my reasons for initially thinking your title was very close to the reason I shifted my focus from pure sustainability advice to PLM implementations to begin with. I could drive a real result much quicker. This, as I am sure you will agree, in itself supports the reason for taking PLM seriously

My conclusion:

The topics PLM and Global Warming have a lot in common. The awareness exists. However when it comes to action, we are blocked by our prehistoric brain, thinking about short term benefits. This will not change in the next 1000 years. Therefore, we need organizations and individuals that against all odds take the steep path and have a vision of change, breaking the old models and silos. It will cost money, it will require a sacrifice and the reward will only be noticed by next generations. What a shame

A final quote before going back to standard PLM matter in upcoming posts:

“Everything is theoretically impossible, until it is done.”

Robert A. Heinlein

Mindmap image courtesy of www.mindmapart.comJane Genovese

imageThis is the fifth year that marketkey organized their vendor-independent conference in Europe around Product Innovation, where PLM is the major cornerstone. Approximate 100 companies attended this conference coming from various industries. As there were most of the time two till four parallel tracks (program here), it will still take time for me to digest all the content. However here a first impression and a comparison to what has changed since the PI Conference in 2014 – you can read my review from that conference here.

First of all the keynote speeches for this conference were excellent and were a good foundation for attendees to discuss and open their mind. Secondly I felt that this conference was actually dealing with the imminent shift from classic, centralized businesses towards the data-centric approach to connectivity of information coming from anyone / anything connected. Naturally the Internet of Everything (IoE) and the Internet of Things (IoT) were part of the discussion combined with changing business models: moving from delivering products toward offering services (CAPEX versus OPEX).

Some of the highlights here:

clip_image002The first keynote speaker was Carlo Rati Director, MIT Senseable Lab. He illustrated through various experiments and examples how being connected through devices we can change and improve our world: tagging waste, mobile phone activity in a city and the Copenhagen Wheel. His main conclusion (not a surprise): For innovation there is a need to change collaboration. Instead of staying within the company / discipline boundaries solving problems through collaboration between different disciplines will lead to different thinking. How is your company dealing with innovation?

clip_image004The second session I attended was John Housego from W.L. Gore and Associates who explained the company’s model for continuous growth and innovation. The company’s future is not based on management but based on leadership of people working in teams in a flat organization. Every employee is an associate, directly involved and challenged to define the company’s future. Have a read about the company’s background here on Wikipedia.

Although the company is 50 years old, I realized that their cultural model is a perfect match with the future of many businesses. More and more companies need to be lean and flexible and support direct contact between the field, customers, market and experts inside the company. Implementing a modern PLM platform should be “a piece of cake” if the technology exists, as W.L. Gore’s associates will not block the change if they understand the value. No silos to break down.

clip_image006My presentation “The Challenge of PLM Upgrades as We See the Rules of Business Change” was based around two themes (perpetual software ? / seamless upgrades ?) and from there look towards the future what to expect in business. When we look back, we see that every 10 years there is a major technology change, which makes the past incompatible to upgrade. Now we are dreaming that cloud-based solutions are the future to guarantee seamless upgrades (let’s wait 10 years). To my opinion companies should not consider a PLM upgrade at this moment.

The changes in business models, people behavior and skills plus technology change, will enable companies to move towards a data-centric approach. Companies need to break with the past (a linear, mechanical-design-based, product development approach) and redesign a platform for the future (a business-innovation platform based on the data). In my upcoming blog post(s) I will give more background on this statement.

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Trond Zimmerman from the Volvo Group Truck explained the challenges and solution concept they experienced as they are currently implementing answering the challenge of working in a joint venture with Dongfeng Commercial Vehicles. As in a joined venture you want to optimize sharing of common parts, still you cannot expect a single PLM solution for the total joint venture. For that reason, Volvo Group Truck is implementing Share-A-Space from Eurostep to have a controlled collaboration layer between the two joint venture partners.

This is, to my opinion, one of the examples of future PLM practices, where data will not be stored in a single monolithic system, but data will be connected through information layers and services. The case is similar to what has been presented last year at Product Innovation 2014 where Eurostep and Siemens Industrial Turbomachinery implemented a similar layer on top of their PDM environment to enable controlled sharing with their suppliers.

clip_image012David Rowan from wired.co.uk closed the day with his keynote: Understanding the New Rules of Product Innovation. He touched the same topic as John Housego from W.L. Gore somehow: it is all about democratization. Instead of hierarchy we are moving to network-based activities. And this approach has a huge impact on businesses. David’s message: Prepare for constant change. Where in the past we lived in a “linear” century, change according to Moore’s law, we are entering now an exponential century where change is going faster and faster. Besides examples of the Internet of Thing, David also gave some examples of the Internet of Stupid Things. He showed a quote from Steve Balmer stating that nobody would pay $ 500 for a phone (Apple). The risk he made is that by claiming some of these stupid inventions might lead to a quote in the future. I think the challenge is always to stay open-minded without judging as at the end the market will decide.

PLM and ERP

clip_image014I spent the evening networking with a lot of people, most of them excited about the future capabilities that have been presented. In parallel, the discussion was also about the conservative behavior of many companies. Topics that are already for ten years under discussion – how to deal and connect PLM and ERP, where is the MBOM, what are the roles of PLM and ERP for an organization, are still thankful topics for a discussion, showing where most companies now are with their business understanding.

In parallel to a product innovation conference apparently there is still a need to agree on basic PLM concepts from the previous century.

clip_image016The second day opened with an excellent keynote speech from Dirk Schlesinger from Cisco. He talked about the Internet of Everything and provided examples of the main components of IoE: Connectivity, Sensors, Platform, Analytics, and Mobility. In particular the example of Connectivity was demonstrating the future benefits modern PLM platforms can bring. Dirk talked about a project with Dundee Mining where everything in the mine was tagged with RFI devices (people, equipment, vehicles, and resources) and the whole mine was equipped with Wi-Fi.

Based on this approach the execution and planning of what happened was done in their HQ through a virtual environment, giving planners immediate visibility of what happens and allowing them to decide on real data. This is exactly the message I have posted in my recent blog posts.

The most fascinating part were the reported results. This project is ongoing now for 3 years and the first year they achieved a production increase of 30 %. Now they are aiming for this year for a 400 % production increase and a 250 % efficiency increase. These are the numbers to imagine when you implement a digital strategy. It is no longer any more about making our classical processes more efficient, it is about everyone connected and everyone collaborates.

clip_image018Marc Halpern from Gartner gave an good presentation connecting the hype of the Internet of Things with the world of PLM again, talking about Product Innovation Platforms. Marc also touched on the (needed) upcoming change in engineering processes. More and more we will develop complex products, which need system thinking. Systems of Systems to handle this complexity, As Marc stated: “Product, process, culture is based on electro-mechanical products where the future trend is all about software.” We should reconsider our Bill of Materials (mechanical) and think probably more about a Bill of Features (software). Much of Marc’s presentation contained the same elements as I discussed in my PDT2014 blog post from October last year.

clip_image019I was happy to see Jenni Ala-Mantila presenting the usage of PLM system for Skanska Oy. Skanska is one of the largest construction companies operating global. See one of their beautiful corporate videos here. I always have been an advocate to use PLM practices and PLM infrastructure to enhance, in particular, the data-continuity in a business where people work in silos with separate tools. There are so many benefits to gain by having an end-to-end visibility of the project and its related data. Jenni’s presentation was confirming this.

By implementing a PLM backbone with a focus on project management, supplier collaboration and risk management, she confirmed that PLM has contributed significant to their Five Zero – vision: Zero loss-making projects, Zero Environmental incidents, Zero Accidents, Zero Ethical breaches and Zero Defects. Skanska is really a visionary company although it was frustrating to learn that there was still a need to build a SharePoint connection with their PLM environment. The future of data-centric has not reached everyone in the organization yet.

The last two sessions of the conference, a panel discussion “Why is Process Innovation Challenging & What can be done about it” plus the final keynote “Sourcing Growth where Growth Takes Place” had some commonality which I expressed in some twitter quotes:

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Conclusion

Where last year I had the impression that the PLM world was somehow in a static mode, not so much news in 2014. It became clear in this 2015 conference that the change towards new business paradigms is really happening and at a faster pace than expected. From mechanical development processes to software processes, from linear towards continuous changes. Moe to come this year

coopIn the past two years, I have been heavily involved in PLM Proof of Concepts sitting at both sides of the table. Supporting companies in their PLM selection, supporting a vendor explaining their value to the customer and supporting implementers assisting them with industry knowledge, all in the context of a PLM selection process.

The Proof of Concept is crucial in a PLM selection process as it is the moment where the first glimpse of reality comes to the table.

Different size of companies, different consultants all have a different view on the importance of the Proof of Concept. Let me share you my thoughts after a quick recap on the PLM selection process.

The PLM selection process

1. Build a vision

visionIt is important that a company understands what they want to achieve in the next five to ten years, before starting a PLM selection process. Implementing PLM means a business transformation, even if you are a small company. If the management does not understand a vision is required, there is a potential risk upcoming, as PLM without a change in the way people work, will not deliver the expected results.

2. Issue an RFI to potential candidates

rfi-plmOnce you have a PLM vision, it is time to get in touch with potential suppliers. The RFI (Request for Information) phase is the phase where you can educate yourself better by challenging the suppliers to work with you on the future solutions.

3. Discuss with selected candidates

discussFrom the RFI responses you understand which companies are attractive because they match your vision, your budget or industry. Have a first interaction with the selected companies and let them demo their standard environment targeted to your vision.

4. POC

test conceptIn this stage, you check with the preferred companies their ability to deliver and your ability to work together. The POC phase should give you the understanding of the scope for the upcoming PLM project and help you to understand who and how the project can be executed. More details about this step below.

5. RFP

No_roiAlthough some companies start with an RFP before the POC, for me it makes most sense to verify the details after you have a proper understanding of the To-Be solution. The RFP is often the base for the contractual scope and therefore should be as accurate as possible

In the past, I wrote in more detail about the PLM selection process. Two posts:  PLM selection: Don’t do this and PLM selection: Do this. Have a read if you want to understand this part in more depth. Now let´s focus on the POC .

POC targets

  • As described before, the target of the Proof of Concept should be to get a better understanding of the potential To-Be processes and obtain an impression of the capabilities of the implementer and the preferred PLM software.

The result should be that you have more realistic expectations of what can be achieved and the challenges your company will face.

  • From there, you can evaluate the risks, address them and build an achievable roadmap to implement. It is important that the focus is not just on the cost of the implementation.
  • To sell PLM inside your company, you need to realign with the vision and explain, to all people involved,the value of “Why PLM”.

Explaining the value is complex, as not everyone needs the same message. The management will focus on business benefits where users will focus how it impacts their daily life.  If you forget to explain the value, the PLM projects, it is considered again as just another software purchase.

POC DO’s

businessMake sure the Proof of Concept is driven by validating future business scenarios, focusing on the To-Be solution. The high-level scenarios should be demonstrated and explained to the business people. In this stage, it is important people realize the benefits and the value of the new processes.

sales eventThe POC is also an internal sales event. The goal should be to get more enthusiastic and supportive business people in your company for the upcoming PLM project. Identify the champions you will need to lean on during the implementation.

balanceTest the implementer. To my opinion the critical success of a PLM implementation depends on the implementation team, not on the software. Therefore, the POC phase is the best moment to learn if you can work with the implementer. Do they know your business? Do they have experience with your business? The more you are aligned, the higher the chance you will be successful as a team

commitShow commitment to engage. Often I have seen POC engagements where the company demanded the implementer or vendor a Proof of Concept for free. This creates an unbalanced situation during the Proof of Concept as the vendor or implementer can not invest time and resources in the process as expected without any commitment from the company. By paying a certain fee for the POC, a company can demonstrate to the implementer /vendor that this POC is valuable for you and you can request the same response from them.

POC DON’Ts

no detailsThe Proof of Concept is not a detailed function/feature check to identify each mouse-click or option in the system. During the implementation, these details might come up. It is important in a Proof of Concept to understand the big picture and not to get lost in the details. As human beings we tend to focus on what does not work, not realizing that probably over eighty-ninety percent works according the needs

ultimateDo not expect the ultimate To-Be scenario demonstrated during the Proof of Concept. The Proof of Concept is a learning stage for both the company and the implementer to imagine the best possible scenario. PLM systems are generic and likely they will not provide a similar configuration and functionality matching your environment. At this stage validate if the primary capabilities are there and if there are gaps.

plm vendorDo not run a POC with a vendor (only). This might be one of the most critical points for a POC. A PLM software vendor’s target is to sell their software and for that reason they often have dedicated presales teams that will show you everything in a smooth manner, overwhelming you with all the beauty of the software. However after the POC this team is gone and you will have to align yourself again with the implementation partner, trying to match again your business needs and their understanding.

imageRealize – you get what you are asking for. This is more a Do-and-Don’t message packed together. A Proof of Concept phase is a point where companies get to know each other. If you are not focused, do not expect the implementer / vendor to be committed. A PLM implementation is not product. It is a business transformation supported by products and services. Do not treat PLM implementers and vendors in the same way, as your customers treat you (in case you deliver products).

Conclusion

There are still many more thoughts about the Proof of Concept . Ideally you run two POCs in parallel, either with two implementers of the preferred software (if possible) or with two different implementers representing different software.

Ideally, as I know it is a challenge, especially for small and medium-sized businesses, where people are running to keep the business on-going.

Still remember, PLM is a business transformation, targeting to improve your business in the upcoming five to ten years, avoiding you are running out of business.

Your thoughts ?

As a bonus a short anecdote that I posted in 2010 still relevant:

plm heaven or hell

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 the PLM Sales you have done good and bad things to the world. 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 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.”

And 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 proof of concept.”

changeBusiness is changing and becoming digital as you might have noticed. If you haven´t noticed it, you might be disconnected from the world or work in a stable silo. A little bit simplified and provocative otherwise you would not read further.

The change towards digital also has its effect on how PLM is evolving. Initially considered as an extension of PDM, managing engineering data, slowly evolving to an infrastructure to support the whole product lifecycle.

The benefits from a real PLM infrastructure are extremely high as it allows people to work smarter, identify issues earlier and change from being reactive towards proactive. In some industries, this change in working is they only way to stay in business. Others with still enough margin will not act.

Note: I am talking about a PLM infrastructure as I do not believe in a single PLM system anymore. For me PLM is supported through a collection of services across the whole product lifecycle, many potentially in one system or platform.

Changing from an engineering-centric system towards an infrastructure across the departmental silos is the biggest challenge for PLM. PLM vendors and ERP vendors with a PLM offering are trying provide this infrastructure and mainly fight against Excel. As an Excel file can easy pass the border from one department to the other. No vision needed for Excel.

A PLM infrastructure however requires a vision. A company has to look at its core business processes and decide on which information flows through the organization or even better their whole value chain.

Building this vision, understanding this vision and then being able to explain the vision is a challenge for all companies. Where sometime even management says

“Why do we need to have a vision, just fix the problem”

also people working in departments are not looking forward to change their daily routines because they need to share information. Here you here statements like

“Why people feel the need to look at the big picture. I want to have my work done.”

So if current businesses do not change, will there be a change?

Innovation

Here I see the digital world combined with search-based applications coming up. Search based applications allow companies to index their silos and external sources and get an understanding of the amount of data there exists. And from these results learn that there is a lot of duplicated data or invalid information at different places.

This awareness might create the understanding that if instead of having hundred thousands of Excels in the organization, it would be better to have the data inside a database, uniquely stored and connected to other relevant information.

I have described this process in my past three posts and agreed the context remains complex if you are not involved or interested in it.

To grasp this concept first of all, you need to have the will to understand it. There is a lot of strategic information out there from companies like Accenture, Capgemini and more.

Next if you want to understand it in a more down-to-earth manner it is important to listen and talk with your peers from other companies, other industries. This is currently happening all around the world and I invite you to participate.

Here is a list of events that I am attending or planned to attend but too far away:

October 7th Stockholm – ENOVIA user conference

imageHere I will participate as a panel member in the discussion around the concept of zero files. Here we want to explain and discuss to the audience what a data-centric approach means for an organization. Also, customers will share their experiences. This conference is focusing on the ENOVIA community – you can still register here

October 14th-15th Paris – Product Data Technology 2014 conference

pdteuropeHere I will speak about the PLM future (based on data) and what PLM should deliver for the future generations. This conference is much broader and addresses all PLM related topics in a broader perspective

October 28 Product Innovation conference in San Diego

picongressI have always enjoyed participating to this conference as like the PDT2014 it brings people together for networking and discussions. Mostly on business topics not on IT-issues.

November 26 Infuseit seminar in Copenhagen

imageRelative new in the Nordics Infuseit, a PLM consultancy company, is able to attract an audience that wants to work on understanding the PLM future. Instead of listening to presenters, here you are challenged to to discuss and contribute to build a common opinion. I will be there too.

 

Conclusion: It is time to prepare yourself for the change – it is happening and be educated an investment that will be rewarding for your company

What do you think – Is data-centric a dream ?

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