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I usually write a post after participating in a PLM conference. Last week, I participated in TECHNIA’s PLM Innovation Forum, which was a 100 % virtual event with over 1500 registered participants from 58 countries. These numbers show the power of a virtual conference during these difficult times. It is an excellent option for a sustainable future – less travel to be there.

The additional beauty of this event is that, although the live sessions are over, all the content will be available until May 31st. You can still join!

It was (and is) a well-organized and massive event with over 70 sessions; the majority pre-recorded. As you can imagine 70 live sessions in two days would be too massive to grasp. Today the Friday after the event, I have been watching other sessions that have my interest, and it felt like another conference day.

TECHNIA, globally the largest Dassault Systèmes (DS)  implementer after DS themselves as Jonas Geyer, Technia’s CEO,  mentioned in his introduction speech, illustrated the breadth of their industry and technology skills complementary or based on the 3DEXPERIENCE platform.

TECHNIA was supported by Dassault Systèmes Execs and subject experts. In addition, a larger group of companies and interest groups supported the conference, even our humble PLM Green Alliance as you can see in the image above.

I followed the full two live days in real-time, meanwhile man sitting in my virtual booth to chat with virtual visitors. To my surprise, the anxiety during the conference felt like a physical conference – you get energized.

The positive point for me,  no finger food or a standing lunch and decent coffee when needed. The point to enhance and learn for this type of event, is to make the booth a little more human – perhaps supported by video?

At the end,  a great event, and if you are interested in the Dassault Systèmes/TECHNIA combined offering, supported by customer stories, take the chance till the end of May to register and browse the rich content.

 

Now I will share some of my picks from the live event. Another post will come based on my additional discoveries and networking discussions.

 

 

The B.CONNECT project

Fabien Hoefer and Philip Haller both from B.Braun, a medical device, and pharmaceutical company, with a wide range of products.  Their massive PLM-project, approx. sixty persons involved was driven by the fact that every product has a lot of related data stored in different silos that it becomes impossible to have the correct understanding and status and to maintain it for the product and service lifecycle, on average, 10 – 15 years.

Their target is a real PLM-platform implementation connecting the people, the processes, data, and systems. Their aim is really about the “connected” approach, a characteristic of a digital company.

As you can still watch the presentation, look at the following topics discussed:

  • focus on product archetypes instead of division (portfolio management)
  • data templates based on classification, global and specific data sets (data governance)
  • the need to have a Master Data Management in place (data governance)
  • the unique product identifier (remember the FFF-discussion in my blog)
  • data-driven documentation (a perfect example of a digital PLM implementation)
  • platform strategy (one application for one capability in a heterogeneous systems environment)
  • Ownership of the PLM implementation at board level (it is not an engineering tool)
  • in the Q&A – the mix of waterfall & agile – the hybrid approach (as in the medical world the validation of the system is required – a point we missed in the SmarTeam FDA toolkit – validation of a system is needed when the system/processes change)

In the Q&A session, it was clear that the big elephant in the room, the migration, has been identified, but no answers yet. See my presentation to understand the reference to the elephant.  I am curious about B. Braun’s approach, given my experience with PLM digital transformations. Will it be entirely digital or hybrid.

Looking forward to learning more from Fabien or Philip.

Business drivers for Sustainable Manufacturing

This session, presented by Hannes Lindfred from TECHNIA, was one of my favorite presentations,  as it links tightly to what we want to achieve with the PLM Green Alliance.

The subtitle of the presentation says it all: “How PLM can support Supply chain transparency, Circular economy, and System oriented product development”.

In a relaxed and entertaining manner, he explained the concepts and the needs of a circular economy, combined with examples from reality. In particular, I liked his closing statement linking the potential of digitization, modern PLM, and the circular economy. We have to learn to think and act circular. Highly recommended to watch!

Leading PLM Trends & Potential Disruptors

A PLM conference would not be a PLM-conference if Peter Bilello from CIMdata would not be speaking. We share a lot of insights related to digital transformation and the understanding it requires the involvement of PLM. However, it is not the traditional PLM that is needed.

PLM needs to be rethought, think about the concept of a Product Innovation Platform. A digital platform is required if we want end-to-end digitalization; otherwise, we keep working in optimized silos.

Peter shared some survey results (see below) from early this year. It illustrates that most companies currently invest in traditional PDM aspects. Restating the need for our PLM communities to learn and educate and rethink aspects of PLM and learn to communicate them.

Remarkably similar to some of the aspects I explained in my: From Coordinated to Connected presentations. Changing to data, changing workforce, changing processes meaning systems thinking. Another plea for everyone to invest in learning. See his concluding remarks:

The closing Q&A session was interesting, addressing additive manufacturing, the graph database, and potential PLM disruptors coming from outside the traditional PLM space.

I recommend, pay attention to the closing questions – so many good points to put PLM in perspective.

From Coordinated to Connected & Sustainable

Of course, I recommend you watch my presentation. It is one of the few opportunities to hear in a short time all the thoughts and concepts that I developed over the past 5 – 6 years. It saves you reading all my blog posts, which are less structured than this presentation.

I recommend you to watch this presentation in the context of Peter Bilello’s presentation as there are a lot of similarities, told in different words.

After my presentation, I appreciated the Q&A part, as it allowed me to point to some more of the related topics: Legacy CAD-issues – the incompatibility of the past and future data, Management vision and the Perception of ROI.

 

Professional PLM
Raise your standards and your horizons

An interesting presentation to watch, after seeing Peter Bilello’s presentation and my presentation,  is the one given by Roger Tempest. Roger is another veteran in the PLM-world and co-founder of the PLM Interest group. For many years Roger is striving to get the PLM professional recognized and certified. We both share the experience that being a PLM consultant is not a profession to become wealthy.

One of the reasons might be that the scope of PLM and what is the required skill level is not precise. PLM considered as an engineering tool and PLM having so many diverse definitions.

The challenge of Roger’s approach is that it tries to capture people within a standardized PLM framework, which becomes apparent in the Q&A session. Currently, he is in the stage of building a steering group, “looking for companies that are fairly committed to PLM”. So which companies are the ones interested in PLM to commit time and resources to build a professional PLM body? This can be only academic people and PLM Vendors/Implementers. The last group will probably not likely agree on standardization.

Also related to the question about the different industries and maturity levels for companies came with an unsatisfactory answer. He talks about “absolute” PLM and no need to compare PLM with other industries. Here I believe there is such a fundamental difference in the meaning of PLM when talking to the traditional manufacturing companies as compared to high-tech/software-driven industries. I inserted here Marc Halpern’s maturity/technology diagram that I have been referencing in my presentation too.

The final question about vendors joining the PLM standardization group seems to be a utopia. As I expressed in my presentation, referring to Marc Halpern’s business maturity diagram, the vendors show us the vision of various business aspects related to PLM.

Marc already indicated this is the phase of the Product Innovation Platform.

As long as the professional PLM organization is focusing on defining the standard, I foresee the outside world will move faster and be more diverse than a single PLM expert can handle. A typical issue with many other standards as you can see below.

What’s Next

I hope to see and participate more in virtual PLM conferences as it allows much larger audiences to connect compared to traditional conferences. However, there are things to improve, and therefore I want to propose some enhancements:

Make sure during the “live” sessions, there is the experience of “being live and connected”. Even when streaming a pre-recorded lecture, always follow-up immediately with a live Q&A session. I found the Q&A sessions very educative as they clarify or put the presentation in a broader context.

The current virtual booth as only a chat room is too primitive – it reminded me of the early days of internet communication – discussion groups in ASCII-terminal mode through Compuserve (remember). A booth could become a virtual meeting space on its own – all, of course, depending on the amount of bandwidth available. The feeling of “The Doctor is in”

It is great that the content is available for 30 days, and I agree there is a need for a time limit on the content; otherwise, the conference becomes more a library. What I would like to see after the “live” days to still have a kind of place for sharing. What are your favorite presentations, and why should others look at it?

 

Conclusion

A great event and learning experience for me. Virtual conferences are the future for sure, and I encourage others to develop this type of conferences related to PLM further. It is a way to share knowledge and discuss topics in a sustainable manner. In the upcoming 30 days, I will come back to the conference one more time, based on interesting topics discovered or discussion related to the content. 

Meanwhile, I encourage you too – if you are still in lockdown and if there is time to study – this is one of these unique opportunities.

 

Life goes on, and I hope you are all staying safe while thinking about the future. Interesting in the context of the future, there was a recent post from Lionel Grealou with the title: Towards PLM 4.0: Hyperconnected Asset Performance Management Framework.

Lionel gave a kind of evolutionary path for PLM. The path from PLM 1.0 (PDM) ending in a PLM 4.0 definition.  Read the article or click on the image to see an enlarged version to understand the logical order. Interesting to mention that PLM 4.0 is the end target, for sure there is a wishful mind-mapping with Industry 4.0.

When seeing this diagram, it reminded me of Marc Halpern’s diagram that he presented during the PDT 2015 conference. Without much fantasy, you can map your company to one of the given stages and understand what the logical next step would be. To map Lionel’s model with Marc’s model, I would state PLM 4.0 aligns with Marc’s column Collaborating.

In the discussion related to Lionel’s post, I stated two points. First, an observation that most of the companies that I know remain in PLM 1.0 or 2.0, or in Marc’s diagram, they are still trying to reach the level of Integrating.

Why is it so difficult to move to the next stage?

Oleg Shilovitsky, in a reaction to Lionel’s post, confirmed this. In Why did manufacturing stuck in PLM 1.0 and PLM 2.0? Oleg points to several integration challenges, functional and technical. His take is that new technologies might be the answer to move to PLM 3.0, as you can read from his conclusion.

What is my conclusion?

There are many promising technologies, but integration is remaining the biggest problem for manufacturing companies in adopting PLM 3.0. The companies are struggling to expand upstream and downstream. Existing vendors are careful about the changes. At the same time, very few alternatives can be seen around. Cloud structure, new data management, and cloud infrastructure can simplify many integration challenges and unlock PLM 3.0 for future business upstream and especially downstream. Just my thoughts…

Completely disconnected from Lionel’s post,  Angad Sorte from Plural Nordic AS wrote a LinkedIn post: Why PLM does not get attention from your CEO. Click on the image to see an enlarged version, that also neatly aligns with Industry 4.0. Coincidence, or do great minds think alike? Phil Collins would sing: It is in the air tonight

Angad’s post is about the historical framing of PLM as a system, an engineering tool versus a business strategy. Angrad believes once you have a clear definition, it will be easier to explain the next steps for the business. The challenge here is: Do we need, or do we have a clear definition of PLM? It is a topic that I do not want to discuss anymore due to a variety of opinions and interpretations.  An exact definition will never lead to a CEO stating, “Now I know why we need PLM.”

I believe there are enough business proof points WHY companies require a PLM-infrastructure as part of a profitable business. Depending on the organization, it might be just a collection of tools, and people do the work. Perhaps this is the practice in small enterprises?

In larger enterprises, the go-to-market strategy, the information needs, and related processes will drive the justification for PLM. But always in the context of a business transformation. Strategic consultancy firms are excellent in providing strategic roadmaps for their customers, indicating the need for a PLM-infrastructure as part of that.

Most of the time, they do not dive more in-depth as when it comes to implementation, other resources are needed.

What needs to be done in PLM 1.0 to 4.0 per level/stage is well described in all the diagrams on a high-level. The WHAT-domain is the domain of the PLM-vendors and implementers. They know what their tools and skillsets can do, and they will help the customer to implement such an environment.

The big illusion of all the evolutionary diagrams is that it gives a false impression of evolution.  Moving to the next level is not just switching on new or more technology and involve more people.

So the big question is HOW and WHEN to make progress.

HOW to make progress

In the past four years, I have learned that digital transformation in the domain of PLM is NOT an evolution. It is disruptive as the whole foundation for PLM changes. If you zoom in on the picture on the left, you will see the data model on the left, and the data model on the right is entirely different.

On the left side of the chasm, we have a coordinated environment based on data-structures (items, folders, tasks) to link documents.

On the right side of the chasm, we have a connected environment based on federated data elements and models (3D, Logical, and Simulation models).

I have been discussing this topic in the past two years at various PLM conferences and a year ago in my blog: The Challenges of a connected ecosystem for PLM

If you are interested in learning more about this topic, register for the upcoming virtual PLM Innovation Forum organized by TECHNIA. Registration is for free, and you will be able to watch the presentation, either live or recorded for 30 days.

At this moment, the detailed agenda has not been published, and I will update the link once the session is visible.  My presentation will not only focus on the HOW to execute a digital transformation, including PLM can be done, but also explain why NOW is the moment.

NOW to make progress

When the COVID19-related lockdown started, must of us thought that after the lockdown, we will be back in business as soon as possible. Now understanding the impact of the virus on our society, it is clear that we need to re-invent ourselves for a sustainable future, be more resilient.

It is now time to act and think differently as due to the lockdown, most of us have time to think.  Are you and your company looking forward to creating a better future? Or will you and your company try to do the same non-sustainable rat race of the past and being caught by the next crises.

McKinsey has been publishing several articles related to the impact of COVID19 and the article: Beyond coronavirus: The path to the next normal very insightful

As McKinsey never talks about PLM, therefore I want to guide you to think about more sustainable business.

Use a modern PLM-infrastructure, practices, and tools to remain competitive, meanwhile creating new or additional business models. Realizing concepts as digital twins, AR/VR-based business models require an internal transition in your company, the jump from coordinated to connected. Therefore, start investigating, experimenting in these new ways of working, and learn fast. This is why we created the PLM Green Alliance as a platform to share and discuss.

If you believe there is no need to be fast, I recommend you watch Rebecka Carlsson’s presentation at the PLMIF event. The title of her presentation: Exponential Tech in Sustainability. Rebecca will share insights for business development about how companies can upgrade to new business models based on the new opportunities that come with sustainability and exponential tech.

The reason I recommend her presentation because she addresses the aspect of exponential thinking nicely. Rebecka states we are “programmed” to think local-linear as mankind. Exponential thinking goes beyond our experience. Something we are not used doing until with the COVID19-virus we discovered exponential growth of the number of infections.

Finally, and this I read this morning, Jan Bosch wrote an interesting post: Why Agile Matters, talking about the fact that during the design and delivery of the product to the market, the environment and therefore the requirements might change. Read his post, unless as Jan states:

Concluding, if you’re able to perfectly predict the optimal set of requirements for a system or product years ahead of the start of production or deployment and if you’re able to accurately predict the effect of each requirement on the user, the customer and the quality attributes of the system, then you don’t need Agile.

What I like about Jan’s post is the fact that we should anticipate changing requirements. This statement combined with Rebecka’s call for being ready for exponential change, with an emerging need for sustainability, might help you discuss in your company how a modern New Product Introduction process might look like, including requirements for a sustainable future that might come in later (per current situation) or can become a practice for the future

Conclusion

Now is the disruptive moment to break with the old ways of working.  Develop plans for the new Beyond-COVID19-society.  Force yourselves to work in more sustainable modes (digital/virtual), develop sustainable products or services (a circular economy), and keep on learning. Perhaps we will meet virtually during the upcoming PLM Innovation Forum?

Note: You have reached the end of this post, which means you took the time to read it all. Now if you LIKE or DISLIKE the content, share it in a comment. Digital communication is the future. Just chasing for Likes is a skin-deep society. We need arguments.
Looking forward to your feedback.

Meanwhile, two weeks of a partial lockdown have passed here in the Netherlands, and we have at least another 3 weeks to go according to the Dutch government. The good thing in our country, decisions, and measures are made based on the advice of experts as we cannot rely on politicians as experts.

I realize that despite the discomfort for me, for many other people in other countries, it is a tragedy. My mental support to all of you, wherever you are.

So what has happened since Time to Think (and act differently)?

All Hands On Deck

In the past two weeks, it has become clear that a global pandemic as this one requires an “All Hands On Deck” mentality to support the need for medical supplies and in particular respiration devices, so-called ventilators. Devices needed to save the lives of profoundly affected people. I have great respect for the “hands” that are doing the work in infectious environments.

Due to time pressure, innovative thinking is required to reach quick results in many countries. Companies and governmental organizations have created consortia to address the urgent need for ventilators. You will not see so much PR from these consortia as they are too busy doing the real work.

Still, you see from many of the commercial participants their marketing messages, why, and how they contribute to these activities.

One of the most promoted capabilities is PLM collaboration on the cloud as there is a need for real-time collaboration between people that are under lockdown. They have no time setting-up environments and learning new tools to use for collaboration.

For me, these are grand experiments, can a group of almost untrained people corporate fast in a new environment.

For sure, offering free cloud software, PLM, online CAD or 3D Printing, seems like a positive and compassionate gesture from these vendors. However, this is precisely the wrong perception in our PLM-world – the difficulty with PLM does not lie necessary in the tools.

 

It is about learning to collaborate outside your silo.

Instead of “wait till I am done” it should become “this is what I have so far – use it for your progress”. This is a behavior change.

Do we have time for behavioral changes at this moment? Time will tell if the myth will become a reality so fast.

A lot of thinking

The past two weeks were weeks of thinking and talking a lot with PLM-interested persons along the globe using virtual meetings.

As long as the lockdowns will be there I keep on offering free of charge PLM coaching for individuals who want to understand the future of PLM.

Through all these calls, I really became THE VirtualDutchman in many of these meetings (thanks Jagan for the awareness).

I realized that there is a lot of value in virtual meetings, in particular with the video option on. Although I believe video works well when you had met before as most of my current meetings were with people, I have met before face-to-face. Hence, you know each other facial expressions already.

I am a big fan of face-to-face meetings as I learned in the past 20 years that despite all the technology and methodology issues, the human factor is essential. We are not rational people; we live and decide by emotions.

Still, I conclude that in the future, I could do with less travel, as I see the benefits from current virtual meetings.

Less face-to-face meetings will help me to work on a more sustainable future as I am aware of the impact flying has on the environment. Also, talking with other people, there is the notion that after the lockdowns, virtual conferencing might become more and more a best practice. Good for the climate, the environment, and time savings – bad for traditional industries like aircraft carriers, taxis, and hotels. I will not say 100 % goodbye but reduce.

A Virtual PLM conference!

I was extremely excited to participate in the upcoming PLM Innovation Forum (PLMIF) starting on April 28th, organized by TECHNIA. I have been visiting the event in the past a few times in Stockholm. It was a great place to meet many of the people from my network.

This time I am even more excited as the upcoming PLMIF will be a VIRTUAL conference with all the aspects of a real conference – read more about the conference here.

There will be an auditorium where lectures will be given, there are virtual booths, and it will be a place to network virtually. In my next post, I hope to zoom in on the conference.

Sustainability, a circular economy, and modern PLM should go together. Since 2014, these topics have been on the agenda of the joint CIMdata Roadmap/PDT conferences. Speakers like Amir Rashid KTH Sweden, Ken Webster Ellen MacArthur Foundation, and many others have been talking about the circular economy.

The Scandinavian mindset for an inclusive society for people and the environment for sure, has influenced the agenda. The links above lead to some better understanding of what is meant by a circular economy and a sustainable future, as also the short YouTube movie below:

The circular economy is crucial for a sustainable future. Therefore, I am looking forward to participating in the upcoming PLM Innovation Forum on April 28th, where it will be all about digitalization for sustainable product development and manufacturing. Hopefully, with the right balance towards the WHY-side of our brain, not so much about WHAT.

You are welcomed to register for free here: the virtual PLM Innovation Forum – we might meet there (virtually).

The PLM Green Alliance

The PLM Green Alliance had been announced some months ago, started by Rich McFall and supported by  Bjorn Fidjeland,  Oleg Shilovitsky, and me.

It was the first step to proactively bringing people together to discuss topics like reducing our carbon footprint, sharing and brainstorming about innovations that will lead to a sustainable future for ourselves and our children, grand-grand-children. The idea behind the PLM Green Alliance is that a proactive approach is much cheaper in the long term as we can still evaluate and discuss options.

This brings me back to the All hands On Deck approach we currently use for fighting the COVID-19 virus.

In a crisis mode, the damage to the people and the economy is severe. Besides, in a crisis mode, a lot of errors will be made, but don’t blame or joke about these people that are trying. Without failure, there is no learning.

We are in a potential time of disruption as the image shows below, but we do not have the complete answers for the future

Think about how you could pro-actively work on a sustainable future for all of us. This will be my personal target, combined with explaining and coaching companies related to topics of modern PLM, during the current lockdown and hopefully long after. The PLM Green Alliance is eager to learn from you and your companies where they are contributing to a more sustainable and greener future.

Do not feel your contribution is not needed, as according to research done by the Carr Center’s Erica Chenoweth: The ‘3.5% rule’: How a small minority can change the world. It could be an encouragement to act instead of watching who will determine your future.

Conclusion

While learning to live in a virtual world, we might be realizing that the current crisis is an opportunity to switch faster to a more sustainable and inclusive society. For PLM moving to data-driven, cloud-based environments, using a Model-Based approach along the whole lifecycle, is a path to reduce friction when delivering innovations. From years to weeks? Something we wished to have today already. Stay safe!

People, wherever you are, we are in a kind of lockdown. Some countries more restricted than others. Still, the challenge will be for most of us how to survive in two perhaps three months of being locked in your home and make the best of it. As I am not a virus expert, I will not give you any recommendations on this topic. As a PLM geek, I want to share with you the opportunities I see for the upcoming months.

A crisis is an opportunity

Most of us should be lucky that we do not live in the same situation as twenty years ago. At that time, internet connectivity was expensive and slow. Meaning working from home would mean isolation from the rest of the world. The positive point now is that we can be connected virtually without travel, without face-to-face meetings, and we are pushed to do so. This external push is an interesting point for me.

The traditional attitude for my PLM engagements was that face-to-face meetings are crucial for creating a human connection and trust. Now I ask myself is this a behavior of the past that should become obsolete in the future. Probably we cannot afford this approach anymore in the future if we take sustainability and the environment into consideration. We live now in a globally connected world, but should we act still in the old way?

Perhaps not. Let’s look at some of the examples that it is time to shift behaviors.

We might think in the Western world we know it all due to our dominance in the past hundred years. However, when you study history, you will see civilizations come to power and after hundreds of years, they lose power because they kill themselves internally. Apparently, a typical human property that will not disappear – still interesting to analyze when considering a globally connected world. Where is the point of gravity today?

Interestingly, the ancient Chinese population already knew that a crisis was an opportunity, as I am being told. The Chinese characters for crisis mean danger and opportunity, respectively, according to Wiki – see the image above. Joe Barkai was one of the first in my network that took action to explain that instead of focusing on the loss of what is happening now, we should take the opportunity to be better prepared for the future. You can read his post here: The Corona virus and your company’s brand. And these kinds of messages are popping up more frequently now. Let’s stay safe while thinking and preparing for the future.

Now a PLM related example.

Remember what the FFF is happening?

Two-three weeks ago, we had a vivid discussion in our PLM and CM community based on the famous FFF mnemonic.  What the FFF is happening was a post sharing my point of view, and there were a lot of reactions from different people.

The purpose of my post was to explain that the whole discussion was based on paradigms that drawings are defining the part. Because of that, we have a methodology to decide if YES or NO we need a new part number or revision. To me, this practice should no longer be a discussion.

A part has a unique identifier, and a document has a unique identifier. In PLM-systems, the information is managed by relations, no longer by identifiers – who knows the exact unique identifier? In a PLM-system information is connected, and the attributes of the part and document will tell you the details of the type of information. “Intelligent or meaningful” identifiers are in such an environment no longer relevant. Think about that…..

In the comments of my post, Jesse Leal was confirming this statement:

This in contrary to Joe Brouwer, who you might have noticed, always is spitting his opinion that the good old days of the draftsman are gone, Boeing made a tremendous mistake and that PLM is fake. This all combined with hyperlinks to his products and opinions. The comment below says it all:

Two points to observe in this response:

Hey, Bob, send me the new digital identifier”.

This statement assumes that if a person needs to retrieve information from someone else, they need to contact this person (Bob).

Bob then needs to drop his current work and answer to the response and send the latest version of a drawing?  This is old school. In a PLM-system,  information should be connected, and if Bob has released his latest drawing (no matter if it is FFF), any user could find the latest approved version, not even having to look at the identifier (which could be meaningless) but by following the relations between products, parts, and documents.

This is PLM!

One of the benefits, Bob does not get disturbed during the day by these kinds of questions and can focus on his critical work as an expert.

Second, if you need to sit with a designer to understand PLM, then you are probably talking with the wrong person. Designers work in the context of PDM. When we speak about PLM, we are talking about a broader scope beyond engineering and design.

This is a common mistake in a lot of marketing stories. Companies that focus on the design space only, some EBOM-integrations with CAD-systems, are most of the time focusing on PDM.  When Agile PLM came out (later Oracle E9) and later Aras without CAD-integrations, these companies were focusing on the flow of information inside the company, not necessarily driven by CAD. Of course, the traditional PLM companies combine CAD integration with other capabilities. Dassault Systèmes, Siemens, and PTC all have a strong relationship with their native CAD-systems. However, their offerings go way beyond CAD-integrations e.g. end-to-end governance, change processes and an item-centric backbone.

The diagram above explains the basics for the future. In a push-mode, the person in the middle has the responsibility to distribute information and ensure it remains accurate for all stakeholders. This makes this person crucial (good job security) but extremely inefficient compared to people working in the pull-mode, being responsible for getting the accurate data themselves. It may be clear the pull-mode is the model of a digital enterprise.

So if you have the time now, take this time to rethink how well your company is ready for a digital future. Companies that currently rely on Bob are in trouble as Bob is currently sitting at home. Companies that have learned to shift from the push-mode to the pull-mode could continue working as planned, as they do not need Bob. And don’t worry about your job. If you are in Bob’s position you will lose your job over time. However, when you keep on evolving, learning and adding value to your company, you will be always needed – don’t lock yourself in.

If you want to be inspired more in this area, read Jan Bosch’s post: This is not the end . Here Jan mentions the opportunity to move to digital practices (and more) – get out of our traditional patterns

 

What can you do?

Even though COVID-19 has, and will have, a dramatic impact on our society, this is also the moment to rewire some of our processes.  Because there was never time to think and act due to the running business. It reminded me of the financial crisis in 2008, when the market for PLM vendors was terrible, no significant sales for them as companies could not invest.

However, for me, 2008 was an extremely busy year,  thanks to all kinds of regulations from governments. There was time and budget to support employees to raise their skills and PLM was one of these domains. That year I conducted many workshops. It was also the year that I started my blog virtualdutchman.com.

Now we are in a similar situation and probably worse as now we are locked to our homes. However, we are also better connected. Imagine this situation without the internet. Now we can learn even better.

So let’s benefit from this connectivity and use the lockdown time to learn, think, and discuss with peers. Challenge and involve the management of your company how they see and lead to the future.


In that context, I am happy to spend on average one day per week on free conference calls if you need clarification or support for your PLM-related ideas.

Contact me through a personal message on LinkedIn, and we will find a way to connect.

 

Conclusion

This decade will be decisive for many of us. At the beginning of this year, I wrote PLM 2020- The next decade (4 challenges). With my narrow PLM-mind, I overlooked viruses. Bill Gates did not do that, as you can see from his 2015 TED talk: The next outbreak? We’re not ready.  Bill also explains that our traditional thinking patterns should change in a globally connected world.

I wish you all the time to think and educate yourself and prepare for a changed future. Stay safe inside, stay healthy, knowing for some of you it will be a big challenge.

At the beginning of this week, I was attending the 9th edition of the PI conference in London. Where it started as a popular conference with 300 – 400 attendees at its best, we were now back to a smaller number of approximately 100 attendees.

It illustrates that PLM as a standalone topic is no longer attracts a broad audience as Marketkey (the organization of the conference) confirms. The intention is that future conferences will be focusing on the broader scope of PLM, where business transformation will be one of the main streams.

In this post, I will share my highlights of the conference, knowing that other sessions might have been valuable too, but I had to make a choice.

It is about people

Armin Prommersberger, CTO from DIRAC and the chairman of the conference, made a great point: “What we will discuss in the upcoming two days, it is all about people not about technology.”

I am not sure if this opening has influenced the mood of the conference, as when I look back to what was the central theme: It is all about how we deal with people when explaining, implementing and justifying PLM.

AI at the Forefront of a Digital Transformation

Muhannad Alomari from R2 Data Labs as a separate unit within Rolls Royce to explore and provide data innovation started with his keynote speech sharing the AI initiatives within his team.

He talked about several projects where AI will become crucial.

For example, the EHM program related to engine behavior. How to detect anomalies, how to establish predictive maintenance and maximize the time an airplane engine is in operation. Interesting to mention is that Muhannad explained that most simulation models are based on simplified simulation models, not accurate enough to discover anomalies.

Modeling in the PLM world with feedback from reality

Machine learning and feedback loops are crucial to optimize the models both for the discovery of irregularities and, of course, to improve understanding of the engine behavior and predict maintenance. Currently, maintenance is defined based on the worst-case scenario for the engine, which in reality, of course, will not be the case for most engines. There is a lot (millions) to gain here for a company.

Interesting to mention is that Muhannad gave a realistic view of the current status of Artificial Intelligence (AI). AI is currently still dumb – it is a set of algorithms that need to be adapted whenever new patterns are discovered. Deep learning is still not there – currently, we still need human beings for that.

This was in contrast with the session from Kalypso later with the title: Supercharge your PLM with advanced analytics. It was a typical example of where a realistic story (R2 Data Labs) shows such a big difference with what is sold by PLM vendors or implementers. Kalypso introduced Product Lifecycle Intelligence (PLI) – you can see the dream on the left (click on the image to enlarge).

Combine PLM with Analytics, and you have Intelligence.  My main comment is, knowing from the field the first three phases in most companies have a lack of data quality and consistency. Therefore any “Intelligence” probably will be based on unreliable sources. Not an issue if you are working in the domain of politics, however when it comes to direct cost and quality implications, it can be a significant risk. We still have a way to go before we have a reliable PLM data backbone for analytics.

 

Keeping PLM Momentum after a Successful Campaign

Susanna Mäentausta from Kemira in Finland gave an exciting update of their PLM project. Where in 2019, she shared with us their PLM roadmap (see my 2019 post: The weekend after PI PLMx London 2019); this time, Susanna shared with us how they are keeping the PLM momentum.

Often PLM implementations are started based on a hypothetical business case (I talked about this in my post The PLM ROI Myth). But then, when you implement PLM, you need to take care you provide proof points to motivate the management. And this is exactly what the PLM team in Kemira has been doing. Often management believes that after the first investment, the project is done (“We bought the software – so we are done”) however the business and process change that will deliver the value is not reported.

Susanna shared with us how they defined measurable KPIs for two reasons.  First, to motivate the management that there are business progress and benefits, however, it is a journey. And secondary the facts are used to kill the legends that “Before PLM we were much faster or efficient.” These types of legends are often expressed loudly by persons who consider PLM as an overhead (killing their freedom) instead of a way to be more efficient in business. In the end, for a company, the business is more important than the person’s belief.

On the question for Susanna, what she would have done better with hindsight, she answered: “Communicate, communicate, communicate.” A response I fully support as often PLM teams are too busy completing their day-to-day work, that there is no spare time for communication. Crucial to achieving a business change.

My agreement: PLM needs facts based during implementation and support combined with the understanding we are dealing with people and their emotions too. Both need full attention.

Acceleration Digitalization at Stora Enso

Samuli Savo, Chief Digital Officer at Stora Enso, explained the principles of innovation, related to digitalization at his company. Stora Enso, a Swedish/Finish company, historically one of the largest forestry companies in the world as well as one of the most significant paper and packaging producers, is working on a transformation to become the renewable materials company. For me, he made two vital points on how Stora Enso’s digitalization’s journey is organized.

He pleads for experimentation funded by corporate as in the experimental stage, as it does not make sense to have a business case. First DO and then ANALYZE, where many companies have to policy first to ANALYZE and then DO, killing innovative thinking.

The second point was the active process to challenge startups to solve business challenges they foresee and, combined with a governance process for startups, allow these companies to be supported and become embedded within member companies of the Combient Foundry, like Stora Enso. By doing such in a structured way, the outcome must lead to innovation.

I was thinking about the hybrid enterprise model that I have been explaining in the past. Great story.

Cyber-security and Future Mobility

Out of interest, I followed the session from Madeline Cheah, Cybersecurity Innovation Lead at HORIBA MIRA. She gave an excellent and well-structured overview. Madeline leads the cybersecurity research program. Part of this job is investigating ways to prevent vehicles from being attacked.  In particular, when it comes to connected and autonomous vehicles. How to keep them secure.

She discussed the known gaps are and the cybersecurity implications of future mobility so extensive that I even doubted will there ever be an autonomous vehicle on the road. So much to define and explore. She looked at it from the perspective of the Internet of Everything, where Everything is divided into Things, Data, Processes, and People. Still, a lot of work to do, see image below

Good Times Ahead: Delay Mitigation Through a Plan for Every Part

Ian Quest, director at Quick Release, gave an overview of what their company aims to be. You could translate it as the plumbers of the automotive industry Where in the ideal world information should be flowing from design to release, there are many bottlenecks, leakages, hiccups that need to be resolved as the image shows.

Where their customers often do not have the time and expertise to fix these issues, Quick Release brings in various skillsets and common sense. For example, how to deal with the Bill of Materials, Configuration Management, and many other areas that you need to address with methodology first instead of (vendor-based) technology. I believe there is a significant need for this type of company in the PLM-domain.

The second part, presented by Nick Solly, with a focus on their QRonos tool, was perhaps a little too much a focus on the capabilities of the tool. Ian Quest, in his introduction,  already made the correct statement:

The QRonos tool, which is more or less a reporting tool, illustrates again that when people care about reliable data (planning, tasks, parts, deliverables, …..), you can improve your business significantly by creating visibility to delays or bottlenecks. The value lies in measurable activities and from there, learn to predict or enhance – see R2 Labs, Kemira and the PLI dream.

Conclusion

It is clear that a typical PLM conference is no longer a technology festival – it is about people. People are trying to change or improve their business. Trying to learn from each other, knowing that the technical concepts and technology are there.

I am looking forward to the upcoming PI events where this change will become more apparent.

 

Last week I shared my thoughts related to my observation that the ROI of PLM is not directly visible or measurable, and I explained why. Also, I explained that the alignment of an organization requires a myth to make it happen. A majority of readers agreed with these observations. Some others either misinterpreted the headlines or twisted the story in favor of their opinion.

A few came from Oleg Shilovitsky and as Oleg is quite open in his discussions, it allows me to follow-up on his statements. Other people might share similar thoughts but they haven’t had the time or opportunity to be vocal. Feel free to share your thoughts/experiences too.

Some misinterpretations from Oleg’s post: PLM circa 2020 – How to stop selling Myths

  • The title “How to stop selling Myths” is the first misinterpretation.
    We are not selling myths – more below.
  • “Jos Voskuil’s recommendation is to create a myth. In his PLM ROI Myths article, he suggests that you should not work on a business case, value, or even technology” is the second misinterpretation, you still need a business case, you need value and you need technology.

And I got some feedback from Lionel Grealou, who’s post was a catalyst for me to write the PLM ROI Myth post. I agree I took some shortcuts based on his blog post. You can read his comments here. The misinterpretation is:

  • “Good luck getting your CFO approve the business change or PLM investment based on some “myth” propaganda :-)” as it is the opposite, make your plan, support your plan with a business case and then use the myth to align

I am glad about these statements as they allow me to be more precise, avoiding misperceptions/myth-perceptions.

A Myth is bad

Some people might think that a myth is bad, as the myth is most of the time abstract.  I think these people do not realize that there a lot of myths that they are following; it is a typical social human behavior to respond to myths. Some myths:

  • How can you be religious without believing in myths?
  • In this country/world, you can become anything if you want?
  • In the past, life was better
  • I make this country great again

The reason human beings need myths is that without them, it is impossible to align people around abstract themes. Try for each of the myths above to create an end-to-end logical story based on factual and concrete information. Impossible!

Read Yuval Harari’s book Sapiens about the power of myths. Read Steven Pinker’s book Enlightenment Now to understand that statistics show a lot of current myths are false. However, this does not mean a myth is bad. Human beings are driven by social influences and myths – it is our brain.

Unless you have no social interaction, you might be immune to myths. With brings me to quoting Oleg once more time:

“A long time ago when I was too naive and too technical, I thought that the best product (or technology) always wins. Well… I was wrong. “

I went through the same experience, having studied physics and mathematics makes you think extremely logical. Something I enjoyed while developing software. Later, when I started my journey as the virtualdutchman mediating in PLM implementations, I discovered logical alone does not work in businesses. The majority of decisions are done based on “gut feelings” still presented as reasonable cases.

Unless you have an audience of Vulcans, like Mr. Spock, you need to deal with the human brain. Consider the myth as the envelope to pass the PLM-project to the management. C-level acts by myths as so far I haven’t seen C-level management spending serious time on understanding PLM. I will end with a quote from Paul Empringham:

I sometimes wish companies would spend 6 months+ to educate themselves on what it takes to deliver incremental PLM success BEFORE engaging with software providers

You don’t need a business case

Lionel is also skeptical about some “Myth-propaganda” and I agree with him. The Myth is the envelope, inside needs to be something valuable, the strategy, the plan, and the business case. Here I want to stress one more time that most business cases for PLM are focusing on tool and collaboration efficiency. And from there projecting benefits. However, how well can we predict the future?

If you implement a process, let’s assume BOM-collaboration done with Excel by BOM-collaboration based on an Excel-on-the-cloud-like solution, you can measure the differences, assuming you can measure people’s efficiency. I guess this is what Oleg means when he explains OpenBOM has a real business case.

However, if you change the intent for people to work differently, for example, consult your supplier or manufacturing earlier in the design process, you touch human behavior. Why should I consult someone before I finish my job, I am measured on output not on collaboration or proactive response? Here is the real ROI challenge.

I have participated in dozens of business cases and at the end, they all look like the graph below:

The ROI is fantastic – after a little more than 2 years, we have a positive ROI, and the ROI only gets bigger. So if you trust the numbers, you would be a fool not to approve this project. Right?

And here comes the C-level gut-feeling. If I have a positive feeling (I follow the myth), then I will approve. If I do not like it, I will say I do not trust the numbers.

Needless to say that if there was a business case without ROI, we do not need to meet the C-level. Unless, and it happens incidental, at C-level, there was already a decision we need PLM from Vendor X because we played golf together, we are condemned together or we believe the same myths.

In reality, the old Gartner graph from realized benefits says it all. The impact of culture, processes, and people can make or break a plan.

You do not need an abstract story for PLM

Some people believe PLM on its own is a myth. You just need the right technology and people will start using it, spreading it out and see how we have improved business. Sometimes email is used as an example. Email is popular because you can with limited effort, collaborate with people, no matter where they are. Now twenty years later, companies are complaining about the lack of traceability, the lack of knowledge and understanding related to their products and processes.

PLM will always have the complexity of supporting traceability combined with real-time collaboration. If you focus only on traceability, people will complain that they are not a counter clerk. If you focus solely on collaboration, you miss the knowledge build-up and traceability.

That’s why PLM is a mix of governance, optimized processes to guarantee quality and collaboration, combined with a methodology to tune the existing processes implemented in tools that allow people to be confident and efficient. You cannot translate a business strategy into a function-feature list for a tool.

Conclusion

Myths are part of the human social alignment of large groups of people. If a Myth is true or false, I will not judge. You can use the Myth as an envelope to package your business case. The business case should always be a combination of new ways of working (organizational change), optimized processes and finally, the best tools. A PLM tool-only business case is to my opinion far from realistic

 

Now preparing for PI PLMx London on 3-4 February – discussing Myths, Single BOMs and the PLM Green Alliance

In my previous post, I shared my observations from the past 10 years related to PLM. It was about globalization and digitization becoming part of our daily business. In the domain of PLM, the coordinated approach has become the most common practice.

Now let’s look at the challenges for the upcoming decade, as to my opinion, the next decade is going to be decisive for people, companies and even our current ways of living. So let’s start with the challenges from easy to difficult

Challenge 1: Connected PLM

Implementing an end-to-end digital strategy, including PLM, is probably business-wise the biggest challenge. I described the future vision for PLM to enable the digital twin –How PLM, ALM, and BIM converge thanks to the digital twin.

Initially, we will implement a digital twin for capital-intensive assets, like satellites, airplanes, turbines, buildings, plants, and even our own Earth – the most valuable asset we have. To have an efficient digital continuity of information, information needs to be stored in connected models with shared parameters. Any conversion from format A to format B will block the actual data to be used in another context – therefore, standards are crucial. When I described the connected enterprise, this is the ultimate goal to be reached in 10 (or more) years. It will be data-driven and model-based

Getting to connected PLM will not be the next step in evolution. It will be disruptive for organizations to maintain and optimize the past (coordinated) and meanwhile develop and learn the future (connected). Have a look at my presentation at PLM Roadmap PDT conference to understand the dual approach needed to maintain “old” PLM and work on the future.

Interesting also my blog buddy Oleg Shilovitsky looked back on the past decade (here) and looked forward to 2030 (here). Oleg looks at these topics from a different perspective; however, I think we agree on the future quoting his conclusion:

PLM 2030 is a giant online environment connecting people, companies, and services together in a big network. It might sound like a super dream. But let me give you an idea of why I think it is possible. We live in a world of connected information today.

 

Challenge 2: Generation change

At this moment, large organizations are mostly organized and managed by hierarchical silos, e.g., the marketing department, the R&D department, Manufacturing, Service, Customer Relations, and potentially more.

Each of these silos has its P&L (Profit & Loss) targets and is optimizing itself accordingly. Depending on the size of the company, there will be various layers of middle management. Your level in the organization depends most of the time on your years of experience and visibility.

The result of this type of organization is the lack of “horizontal flow” crucial for a connected enterprise. Besides, the top of the organization is currently full of people educated and thinking linear/analog, not fully understanding the full impact of digital transformation for their organization. So when will the change start?

In particular, in modern manufacturing organizations, the middle management needs to transform and dissolve as empowered multidisciplinary teams will do the job. I wrote about this challenge last year: The Middle Management dilemma. And as mentioned by several others – It will be: Transform or Die for traditionally managed companies.

The good news is that the old generation is retiring in the upcoming decade, creating space for digital natives. To make it a smooth transition, the experts currently working in the silos will be missed for their experience – they should start coaching the young generation now.

 

Challenge 3: Sustainability of the planet.

The biggest challenge for the upcoming decade will be adapting our lifestyles/products to create a sustainable planet for the future. While mainly the US and Western Europe have been building a society based on unlimited growth, the effect of this lifestyle has become visible to the world. We consume with the only limit of money and create waste and landfill (plastics and more) form which the earth will not recover if we continue in this way. When I say “we,” I mean the group of fortunate people that grew up in a wealthy society. If you want to discover how blessed you are (or not), just have a look at the global rich list to determine your position.

Now thanks to globalization, other countries start to develop their economies too and become wealthy enough to replicate the US/European lifestyle. We are overconsuming the natural resources this earth has, and we drop them as waste – preferably not in our backyard but either in the ocean or at fewer wealth countries.

We have to start thinking circular and PLM can play a role in this. From linear to circular.

In my blog post related to PLM Roadmap/PDT Europe – day 1,  I described Graham Aid’s (Ragn-Sells) session:

Enabling the Circular Economy for Long Term Prosperity.

He mentioned several examples where traditional thinking just leads to more waste, instead of starting from the beginning with a sustainable model to bring products to the market.

Combined with our lifestyle, there is a debate on how the carbon dioxide we produce influences the climate and the atmosphere. I am not a scientist, but I believe in science and not in conspiracies. So there is a problem. In 1970 when scientists discovered the effect of CFK on the Ozone-layer of the atmosphere, we ultimately “fixed” the issue. That time without social media we still trusted scientists – read more about it here: The Ozone hole

I believe mankind will be intelligent enough to “fix” the upcoming climate issues if we trust in science and act based on science. If we depend on politicians and lobbyists, we will see crazy measures that make no sense, for example, the concept of “biofuel.” We need to use our scientific brains to address sustainability for the future of our (single) earth.

Therefore, together with Rich McFall (the initiator), Oleg Shilovitsky, and Bjorn Fidjeland (PLM-peers), we launched the PLM Green Alliance, where we will try to focus on sharing ideas, discussion related to PLM and PLM-related technologies to create a network of innovative companies/ideas. We are in the early stages of this initiative and are looking for ways to make it an active alliance. Insights, stories, and support are welcome. More to come this year (and decade).

 

Challenge 4: The Human brain

The biggest challenge for the upcoming decade will be the human brain. Even though we believe we are rational, it is mainly our primitive brain that drives our decisions. Thinking Fast and Slow from Daniel Kahneman is a must-read in this area. Or Predictably Irrational: The Hidden Forces that shape our decisions.  Note: these books are “old” books from years ago. However, due to globalization and social connectivity, they have become actual.

Our brain does not like to waste energy. If we see the information that confirms our way of thinking, we do not look further. Social media like Facebook are using their algorithms to help you to “discover” even more information that you like. Social media do not care about facts; they care about clicks for advertisers. Of course, controversial headers or pictures get the right attention. Facts are no longer relevant, and we will see this phenomenon probably this year again in the US presidential elections.

The challenge for implementing PLM and acting against human-influenced Climate Change is that we have to use our “thinking slow” mode combined with a general trust in science. I recommend reading Enlightenment now from Steven Pinker. I respect Steven Pinker for the many books I have read from him in the past. Enlightenment Now is perhaps a challenging book to complete. However, it illustrates that a lot of the pessimistic thinking of our time has no fundamental grounds. As a global society, we have been making a lot of progress in the past century. You would not go back to the past anymore.

Back to PLM.

PLM is not a “wonder tool/concept,” and its success is mainly depending on a long-term vision, organizational change, culture, and then the tools. It is not a surprise that it is hard for our brains to decide on a roadmap for PLM. In 2015 I wrote about the similarity of PLM and acting against Climate Change  – read it here: PLM and Global Warming

In the upcoming PI PLMx London conference, I will lead a Think Tank session related to Getting PLM on the Executive’s agenda. Getting PLM on an executive agenda is about connecting to the brain and not about a hypothetical business case only.  Even at exec level, decisions are made by “gut feeling” – the way the human brain decides. See you in London or more about this topic in a month.

Conclusion

The next decade will have enormous challenges – more than in the past decades. These challenges are caused by our lifestyles AND the effects of digitization. Understanding and realizing our biases caused by our brains is crucial.  There is no black and white truth (single version of the truth) in our complex society.

I encourage you to keep the dialogue open and to avoid to live in a silo.

 

 

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

The first day 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.

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.

 

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.

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