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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!

Last week I shared the first impression from my favorite conference, the PLM Roadmap / PDT conference organized by CIMdata and Eurostep. You can read some of the highlights here: The weekend after PLM Roadmap / PDT 2019 Day 1.

Click on the logo to see what was the full agenda. In this post, I will focus on some of the highlights of day 2.

Chernobyl, The megaproject with the New Arch

Christophe Portenseigne from the Bouygues Construction Group shared with us his personal story about this megaproject, called Novarka. 33 years ago, reactor #4 exploded and has been confined with an object shelter within six months in 1986. This was done with heroic speed, and it was anticipated that the shelter would only last for 20 – 30 years.  You can read about this project here.

The Novarka project was about creating a shelter for Confinement of the radioactive dust and protection of the existing against external actions (wind, water, snow…) for the next 100 years!

And even necessary, the inside the arch would be a plant where people could work safely on the process of decommissioning the existing contaminated structures. You can read about the full project here at the Novarka website.

What impressed me the most the personal stories of Christophe taking us through some of the massive challenges that need to be solved with innovative thinking. High complexity, a vast number of requirements, many parties, stakeholders involved closed in June 2019. As Christophe mentioned, this was a project to be proud of as it creates a kind of optimism that no matter how big the challenges are, with human ingenuity and effort, we can solve them.

A Model Factory for the Efficient Development of High Performing Vehicles

Eric Landel, expert leader for Numerical Modeling and Simulation at Renault, gave us an interesting insight into an aspect of digitalization that has become very valuable, the connection between design and simulation to develop products, in this case, the Renault CLIO V, as much as possible in the virtual world. You need excellent simulation models to match future reality (and tests). The target of simulation was to get the highest safety test results in the Europe NCAP rating – 5 stars.

The Renault modeling factory implemented a digital loop (below) to ensure that at the end of the design/simulation, a robust design would exist.  Eric mentioned that for the Clio, they did not build a prototype anymore. The first physical tests were done on cars coming from the plant. Despite the investment in simulation software, a considerable saving in crash part over cost before TGA (Tooling Go Ahead).

Combined with the savings, the process has been much faster than before. From 10 weeks for a simulation loop towards 4 weeks. The next target is to reduce this time to 1 week. A real example of digitization and a connected model-based approach.

From virtual prototype to hybrid twin

ESI – their sponsor session Evolving from Virtual Prototype Testing to Hybrid Twin: Challenges & Benefits was an excellent complementary session to the presentation from Renault

PLM, MBSE and Supply chain – challenges and opportunities

Nigel Shaw’s presentation was one of my favorite presentations, as Nigel addressed the same topics that I have been discussing in the past years. His focus was on collaboration between the OEM and supplier with the various aspects of requirements management, configuration management, simulation and the different speeds of PLM (focus on mechanical) and ALM (focus on software)

How can such activities work in a digitally-connected environment instead of a document-based approach?  Nigel looked into the various aspects of existing standards in their domains and their future. There is a direction to MBE (Model-Based Everything) but still topics to consider. See below:

I agree with Nigel – the future is model-based – when will be the issue for the market leaders.

The ISO AP239 ed3 Project and the Through Life Cycle Interoperability Challenge

Yves Baudier from AFNET,  a reference association in France regarding industry digitation, digital threads, and digital processes for Extended Enterprise/Supply chain. All about a digital future and Yves presentation was about the interoperability challenge, mentioning three of my favorite points to consider:

  • Data becoming more and more a strategic asset – as digitalization of Industry and Services, new services enabled by data analytics
  • All engineering domains (from concept design to system end of life) need to develop a data-centric approach (not only model-centric)– An opportunity for PLM to cover the full life-cycle
  • Effectivity and efficiency of data interoperability through the life-cycle is now an essential industry requirement – e.g., “virtual product” and “digital twin” concepts

All the points are crucial for the domain of PLM.

In that context, Yves discussed the evolution of the ISO 10303-239 standard, also known as PLCS. The target with ISO AP239 ed3 is to become the standard for Aerospace and Defense for the full product lifecycle and through this convergence being able to push IT/PLM Vendors to comply – crucial for a digital enterprise

Time for the construction / civil industry

Christophe Castaing, director of digital engineering at Egis, shared with us their solution framework to manage large infrastructure projects by focusing on both the Asset Information (BIM-based) and the collaborative processes between the stakeholders, all based on standards. It was a broad and in-depth presentation – too much to share in a blog post. To conclude (see also Christophe’s slide below) in the construction industry more and more, there is the desire to have a digital twin of a given asset (building/construction), creating the need for standard information models.

Pierre Benning, IT director from Bouygues Public Works gave us an update on the MINnD project. MINnD standing for Modeling INteroperable INformation for sustainable INfrastructures in xD, a French research project dedicated to the deployment of BIM and digital engineering in the infrastructure sector. Where BIM has been starting from the construction industry, there is a need for a similar, digital modeling approach for civil infrastructure. In 2014 Christophe Castaing already reported the activities of the MINnD project – see The weekend after PDT 2014. Now Pierre was updating us on what are the activities for MINnD Season 2 – see below:

As you can see, again, the interest in digital twins for operations and maintenance. Perhaps here, the civil infrastructure industry will be faster than traditional industries because of its enormous value. BIM and GIS reconciliation is a precise topic as many civil infrastructures have a GIS aspect – Road/Train infrastructure for example. The third bullet is evident to me. With digitization and the integration of contractors and suppliers, BIM and PLM will be more-and-more conceptual alike. The big difference still at this moment: BIM has one standard framework where PLM-standards are still not in a consolidation stage.

Digital Transformation for PLM is not an evolution

If you have been following my blog in the past two years, you may have noticed that I am exploring ways to solve the transition from traditional, coordinated PLM processes towards future, connected PLM. In this session, I shared with the audience that digital transformation is disruptive for PLM and requires thinking in two modes.

Thinking in two modes is not what people like, however, organizations can run in two modes. Also, I shared some examples from digital transformation stories that illustrate there was no transformation, either failure or smoke, and mirrors. You can download my presentation via SlideShare here.

Fireplace discussion: Bringing all the Trends Together, What’s next

We closed the day and the conference with a fireplace chat moderated by Dr. Ken Versprille from CIMdata, where we discussed, among other things, the increasing complexity of products and products as a service. We have seen during the sessions from BAE Systems Maritime and Bouygues Construction Group that we can do complex projects, however, when there are competition and time to deliver pressure, we do not manage the project so much, we try to contain the potential risk. It was an interactive fireplace giving us enough thoughts for next year.

Conclusion

Nothing to add to Håkan Kårdén’s closing tweet – I hope to see you next year.

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

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

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

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

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

PLM – level 1
(Product Lifecycle Management – push)

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

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

 

MDM (Master Data Management)

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

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

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

PIM (Product Information Management)

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

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

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

 

Product Innovation Platforms (PLM – Level 2 – Pull)

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

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

PLM driving PIM

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

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

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

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

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

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

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

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

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

 

PIM driving the need for PLM

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

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

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

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

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

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

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

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

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

 

Conclusion

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

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

Please share in the comments.

 

 

 

 

 

The usage of standards has been a recurring topic the past 10 months, probably came back to the surface at PI PLMx Chicago during the PLM Leaders panel discussion. If you want to refresh the debate, Oleg Shilovitsky posted an overview: What vendors are thinking about PLM standards – Aras, Dassault Systemes, Onshape, Oracle PLM, Propel PLM, SAP, Siemens PLM.

It is clear for vendors when they would actively support standards they reduce their competitive advantage, after all, you are opening your systems to connect to other vendor solutions, reducing the chance to sell adjacent functionality. We call it vendor lock-in. If you think this approach only counts for PLM, I would suggest you open your Apple (iPhone) and think about vendor lock-in for a moment.

Vendors will only adhere to standards when pushed by their customers, and that is why we have a wide variety of standards in the engineering domain.

Take the example of JT as a standard viewing format, heavily pushed by Siemens for the German automotive industry to be able to work downstream with CATIA and NX models. There was a JT-version (v9.5) that reached ISO 1306 alignment, but after that, Siemens changed JT (v10) again to optimize their own exchange scenarios, and the standard was lost.

And as customers did not complain (too much), the divergence continued. So it clear  vendors will not maintain standards out of charity as your business does not work for charity either (or do you ?). So I do not blame them is there is no push from their customers to maintain them.

What about standards?

The discussion related to standards flared up around the IpX ConX19 conference and a debate between Oleg & Hakan Kardan (EuroSTEP) where Hakan suggested that PLCS could be a standard data model for the digital thread – you can read Oleg’s view here: Do we need a standard like PLCS to build a digital thread.

Oleg’s opening sentence made me immediately stop reading further as more and more I am tired of this type of framing if you want to do a serious discussion based on arguments. Such a statement is called framing and in particular in politics we see the bad examples of framing.

Standards are like toothbrushes, a good idea, but no one wants to use anyone else’s. The history of engineering and manufacturing software is full of stories about standards.

This opening sentence says all about the mindset related to standards – it is a one-liner – not a fact. It could have been a tweet in this society of experts.

Still later,I read the blog post and learned Oleg has no arguments to depreciate PLCS, however as he does not know the details, he will probably not use it. The main challenge of standards: you need to spend time to understand and adhere to them and agree on following them. Otherwise, you get the same diversion of JT again or similar examples.

However, I might have been wrong in my conclusion as Oleg did some thinking on a Sunday and came with an excellent post: What would happen if PLM Vendors agree about data standards. Here Oleg is making the comparison with a standard in the digital world, established by Google, Microsoft, Yahoo, and Yandex : Schema.org: Evolution of Structured Data on the Web.

There is a need for semantic mapping and understanding in the day-to-day-world, and this understanding makes you realize the same is needed for PLM. That was one of the reasons why I wrote in the past (2015) a series of posts related to the importance of a PLM data model:

All these posts were aimed to help companies and implementers to make the right choices for an item-centric PLM implementation. At that time – 2015, item-centric was the current PLM best practice. I learned from my engagements in the past 15 years, in particular when you have a flexible modeling tool like SmarTeam or nowadays Aras, making the right data model decisions are crucial for future growth.

Who needs standards?

First of all, as long as you stay in your controlled environment, you do not need standards. In particular, in the Aerospace and Automotive industry, the OEMs defined the software versions to be used, and the supply chain had to adhere to their chosen formats. Even this narrow definition was not complete enough as a 3D CAD model needed to be exported for simulation or manufacturing purposes. There was not a single vendor working on a single CAD model definition at that time. So the need for standards emerged as there was a need to exchange data.

Data exchange is the driving force behind standards.

In a second stage also neutral format data storage became an important point – how to save for 75 years an aircraft definition.

Oil & Gas / Building – Construction

These two industries both had the need for standards. The Oil & Gas industry relies on EPC (Engineering / Procurement / Construction)  companies that build plants or platforms. Then the owner/operator takes over the operation and needs a hand-over of all the relevant information. However if this information would be delivered in the application-specific formats the EPC companies have used, the owner/operator would require various software environments and skills, just to have access to the data.

Therefore if the data is delivered in a standard format (ISO 15926) and the exchange follows CFIHOS (Capital Facilities Information Hand Over Specification) this exchange can be done more automated between the EPC and Owner/Operator environment, leading to lower overall cost of delivering and maintaining the information combined with a higher quality. For that reason, the Oil & Gas industry has invested already for a long time in standards as their plants/platform have a long lifecycle.

And the same is happening in the construction industry. Initially Autodesk and Bentley were fighting to become the vendor-standard and ultimately the IFC-standard has taken a lot from the Autodesk-world, but has become a neutral standard for all parties involved in a construction project to share and exchange data. In particular for the construction industry,  the cloud has been an accelerator for collaboration.

So standards are needed where companies/people exchange information

For the same reason in most global companies, English became the standard language. If you needed to learn all the languages spoken in a worldwide organization, you would not have time for business. Therefore everyone making some effort to communicate in one standard language is the best way to operate.

And this is the same for a future data-driven environment – we cannot afford for every exchange to go to the native format from the receiver or source – common neutral (or winning) standards will ultimately also come up in the world of manufacturing data exchange and IoT.

Companies need to push

This is probably the blocking issue for standards. Developing standards, using standards require an effort without immediate ROI. So why not use vendor-formats/models and create custom point-to-point interface as we only need one or two interfaces?  Companies delivering products with a long lifecycle know that the current data formats are not guaranteed for the future, so they push for standards (aerospace/defense/ oil & gas/construction/ infrastructure).

3D PDF Model

Other companies are looking for short term results, and standards are slowing them down. However as soon as they need to exchange data with their Eco-system (suppliers/ customers) an existing standard will make their business more scalable. The lack of standards is one of the inhibitors for Model-Based Definition or the Model-Based Enterprise – see also my post on this topic: Model-Based – Connecting Engineering and Manufacturing

When we would imagine the Digital Enterprise of the future, information will be connected through data streams and models. In a digital enterprise file conversions and proprietary formats will impede the flow of data and create non-value added work. For example if we look to current “Digital Twin” concepts, the 3D-representation of the twin is recreated again instead of a neutral 3D-model continuity. This because companies currently work in a coordinated manner. In perhaps 10 years from now we will reach maturity of a model-based enterprise, which only can exist based on standards. If the standards are based on one dominating platform or based on a merger of standards will be the question.

To discuss this question and how to bridge from the past to the future I am looking forward meeting you at the upcoming PLM Roadmap & PDT 2019 EMEA conference on 13-14 November in Paris, France. Download the program here: PLM for Professionals – Product Lifecycle Innovation

Conclusion

I believe PLM Standards will emerge when building and optimizing a digital enterprise. We need to keep on pushing and actively working for meaningful standards as they are crucial to avoid a lock-in of your data. Potentially creating dead-ends and massive inefficiencies.  The future is about connected Eco-systems, and the leanest companies will survive. Standards do not need to be extraordinarily well-defined and can start from a high-level alignment as we saw from schema.org. Keep on investing and contributing to standards and related discussion to create a shared learning path.

Thanks Oleg Shilovitsky to keep the topic alive.

p.s. I had not time to read and process your PLM Data Commodizitation post

 

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.

 

In my previous post, the PLM blame game, I briefly mentioned that there are two delivery models for PLM. One approach based on a PLM system, that contains predefined business logic and functionality, promoting to use the system as much as possible out-of-the-box (OOTB) somehow driving toward a certain rigidness or the other approach where the PLM capabilities need to be developed on top of a customizable infrastructure, providing more flexibility. I believe there has been a debate about this topic over more than 15 years without a decisive conclusion. Therefore I will take you through the pros and cons of both approaches illustrated by examples from the field.

PLM started as a toolkit

The initial cPDM/PLM systems were toolkits for several reasons. In the early days, scalable connectivity was not available or way too expensive for a standard collaboration approach. Engineering information, mostly design files, needed to be shared globally in an efficient manner, and the PLM backbone was often a centralized repository for CAD-data. Bill of Materials handling in PLM was often at a basic level, as either the ERP-system (mostly Aerospace/Defense) or home-grown developed BOM-systems(Automotive) were in place for manufacturing.

Depending on the business needs of the company, the target was too connect as much as possible engineering data sources to the PLM backbone – PLM originated from engineering and is still considered by many people as an engineering solution. For connectivity interfaces and integrations needed to be developed in a time that application integration frameworks were primitive and complicated. This made PLM implementations complex and expensive, so only the large automotive and aerospace/defense companies could afford to invest in such systems. And a lot of tuition fees spent to achieve results. Many of these environments are still operational as they became too risky to touch, as I described in my post: The PLM Migration Dilemma.

The birth of OOTB

Around the year 2000, there was the first development of OOTB PLM. There was Agile (later acquired by Oracle) focusing on the high-tech and medical industry. Instead of document management, they focused on the scenario from bringing the BOM from engineering to manufacturing based on a relatively fixed scenario – therefore fast to implement and fast to validate. The last point, in particular, is crucial in regulated medical environments.

At that time, I was working with SmarTeam on the development of templates for various industries, with a similar mindset. A predefined template would lead to faster implementations and therefore reducing the implementation costs. The challenge with SmarTeam, however, was that is was very easy to customize, based on Microsoft technology and wizards for data modeling and UI design.

This was not a benefit for OOTB-delivery as SmarTeam was implemented through Value Added Resellers, and their major revenue came from providing services to their customers. So it was easy to reprogram the concepts of the templates and use them as your unique selling points towards a customer. A similar situation is now happening with Aras – the primary implementation skills are at the implementing companies, and their revenue does not come from software (maintenance).

The result is that each implementer considers another implementer as a competitor and they are not willing to give up their IP to the software company.

SmarTeam resellers were not eager to deliver their IP back to SmarTeam to get it embedded in the product as it would reduce their unique selling points. I assume the same happens currently in the Aras channel – it might be called Open Source however probably it is only high-level infrastructure.

Around 2006 many of the main PLM-vendors had their various mid-market offerings, and I contributed at that time to the SmarTeam Engineering Express – a preconfigured solution that was rapid to implement if you wanted.

Although the SmarTeam Engineering Express was an excellent sales tool, the resellers that started to implement the software began to customize the environment as fast as possible in their own preferred manner. For two reasons: the customer most of the time had different current practices and secondly the money come from services. So why say No to a customer if you can say Yes?

OOTB and modules

Initially, for the leading PLM Vendors, their mid-market templates were not just aiming at the mid-market. All companies wanted to have a standardized PLM-system with as little as possible customizations. This meant for the PLM vendors that they had to package their functionality into modules, sometimes addressing industry-specific capabilities, sometimes areas of interfaces (CAD and ERP integrations) as a module or generic governance capabilities like portfolio management, project management, and change management.

The principles behind the modules were that they need to deliver data model capabilities combined with business logic/behavior. Otherwise, the value of the module would be not relevant. And this causes a challenge. The more business logic a module delivers, the more the company that implements the module needs to adapt to more generic practices. This requires business change management, people need to be motivated to work differently. And who is eager to make people work differently? Almost nobody,  as it is an intensive coaching job that cannot be done by the vendors (they sell software), often cannot be done by the implementers (they do not have the broad set of skills needed) or by the companies (they do not have the free resources for that). Precisely the principles behind the PLM Blame Game.

OOTB modularity advantages

The first advantage of modularity in the PLM software is that you only buy the software pieces that you really need. However, most companies do not see PLM as a journey, so they agree on a budget to start, and then every module that was not identified before becomes a cost issue. Main reason because the implementation teams focus on delivering capabilities at that stage, not at providing value-based metrics.

The second potential advantage of PLM modularity is the fact that these modules supposed to be complementary to the other modules as they should have been developed in the context of each other. In reality, this is not always the case. Yes, the modules fit nicely on a single PowerPoint slide, however, when it comes to reality, there are separate systems with a minimum of integration with the core. However, the advantage is that the PLM software provider now becomes responsible for upgradability or extendibility of the provided functionality, which is a serious point to consider.

The third advantage from the OOTB modular approach is that it forces the PLM vendor to invest in your industry and future needed capabilities, for example, digital twins, AR/VR, and model-based ways of working. Some skeptic people might say PLM vendors create problems to solve that do not exist yet, optimists might say they invest in imagining the future, which can only happen by trial-and-error. In a digital enterprise, it is: think big, start small, fail fast, and scale quickly.

OOTB modularity disadvantages

Most of the OOTB modularity disadvantages will be advantages in the toolkit approach, therefore discussed in the next paragraph. One downside from the OOTB modular approach is the disconnect between the people developing the modules and the implementers in the field. Often modules are developed based on some leading customer experiences (the big ones), where the majority of usage in the field is targeting smaller companies where people have multiple roles, the typical SMB approach. SMB implementations are often not visible at the PLM Vendor R&D level as they are hidden through the Value Added Reseller network and/or usually too small to become apparent.

Toolkit advantages

The most significant advantage of a PLM toolkit approach is that the implementation can be a journey. Starting with a clear business need, for example in modern PLM, create a digital thread and then once this is achieved dive deeper in areas of the lifecycle that require improvement. And increased functionality is only linked to the number of users, not to extra costs for a new module.

However, if the development of additional functionality becomes massive, you have the risk that low license costs are nullified by development costs.

The second advantage of a PLM toolkit approach is that the implementer and users will have a better relationship in delivering capabilities and therefore, a higher chance of acceptance. The implementer builds what the customer is asking for.

However, as Henry Ford said, if I would ask my customers what they wanted, they would ask for faster horses.

Toolkit considerations

There are several points where a PLM toolkit can be an advantage but also a disadvantage, very much depending on various characteristics of your company and your implementation team. Let’s review some of them:

Innovative: a toolkit does not provide an innovative way of working immediately. The toolkit can have an infrastructure to deliver innovative capabilities, even as small demonstrations, the implementation, and methodology to implement this innovative way of working needs to come from either your company’s resources or your implementer’s skills.

Uniqueness: with a toolkit approach, you can build a unique PLM infrastructure that makes you more competitive than the other. Don’t share your IP and best practices to be more competitive. This approach can be valid if you truly have a competing plan here. Otherwise, the risk might be you are creating a legacy for your company that will slow you down later in time.

Performance: this is a crucial topic if you want to scale your solution to the enterprise level. I spent a lot of time in the past analyzing and supporting SmarTeam implementers and template developers on their journey to optimize their solutions. Choosing the right algorithms, the right data modeling choices are crucial.

Sometimes I came into a situation where the customer blamed SmarTeam because customizations were possible – you can read about this example in an old LinkedIn post: the importance of a PLM data model

Experience: When you plan to implement PLM “big” with a toolkit approach, experience becomes crucial as initial design decisions and scope are significant for future extensions and maintainability. Beautiful implementations can become a burden after five years as design decisions were not documented or analyzed. Having experience or an experienced partner/coach can help you in these situations. In general, it is sporadic for a company to have internally experienced PLM implementers as it is not their core business to implement PLM. Experienced PLM implementers vary from size and skills – make the right choice.

 

Conclusion

After writing this post, I still cannot write a final verdict from my side what is the best approach. Personally, I like the PLM toolkit approach as I have been working in the PLM domain for twenty years seeing and experiencing good and best practices. The OOTB-box approach represents many of these best practices and therefore are a safe path to follow. The undecisive points are who are the people involved and what is your business model. It needs to be an end-to-end coherent approach, no matter which option you choose.

 

 

 

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.

In this post, I will explain the story behind my presentation at PI PLMx London. You can read my review of the event here: “The weekend after ……” and you can find my slides on SlideShare: HERE.

For me, this presentation is a conclusion of a thought process and collection of built-up experiences in the past three to  five years, related to the challenges digital transformation is creating for PLM and what makes it hard to go through compared to other enterprise business domains.  So here we go:

Digital transformation or disruption?

Slide 2 (top image) until 5 are dealing with the common challenges of business transformation. In nature, the transformation from a Caterpillar (old linear business) to a Butterfly (modern, agile, flexible) has the cocoon stage, where the transformation happens. In business unfortunate companies cannot afford a cocoon phase, it needs to be a parallel change.

Human beings are not good at change (slide 3 & 4), and the risk is that a new technology or a new business model will disrupt your business if you are too confident – see examples from the past. The disruption theory introduced by Clayton Christensen in his book, the Innovators Dilemma is an excellent example of how this can happen.  Some of my thoughts are in The Innovator’s dilemma and generation change (2015)

Although I know some PLM vendors consider themselves as disruptor, I give them no chance in the PLM domain. The main reason: The existing PLM systems are so closely tied to the data they manage, that switching from one PLM system to a more modern PLM system does not pay off.  The data models are so diverse that it is better to stay with the existing environment.

What is clear for modern digital businesses is that if you could start from scratch or with almost no legacy you can move faster forward than the rest. But only if supported by a strong leadership , a(understandable) vision and relentless execution.

The impression of evolution

Marc Halpern’s slide presented at PDT 2015 is one of my favorite slides, as it maps business maturity to various characteristics of an organization, including the technologies used.

 

Slide 7 till 18 are zooming in on the terms Coordinated and Connected and the implications it has for data, people and business. I have written about Coordinated and Connected recently: Coordinated or Connected (2018)

A coordinated approach: Delivering the right information at the right moment in the proper context is what current PLM implementations try to achieve. Allowing people to use their own tools/systems as long as they deliver at the right moment their information (documents/files) as part of the lifecycle/delivery process. Very linear and not too complicated to implement you would expect. However it is difficult ! Here we already see the challenge of just aligning a company to implement a horizontal flow of data. Usability of the PLM backbone and optimized silo thinking are the main inhibitors.

In a connected approach: Providing actual information for anyone connected in any context the slide on the left shows the mental picture we need to have for a digital enterprise. Information coming from various platforms needs to be shareable and connected in real-time, leading, in particular for PLM, to a switch from document-based deliverables to models and parameters that are connected.

Slide 15 has examples of some models.  A data-driven approach creates different responsibilities as it is not about ownership anymore but about accountability.

The image above gives my PLM-twisted vision of which are the five core platforms for an enterprise.  The number FIVE is interesting as David Sherburne just published his Five Platforms that Enable Digital Transformation and in 2016 Gartner identified Five domains for the digital platform .- more IT-twisted ? But remember the purpose of digital transformation is: FIVE!

From Coordinated to Connected is Digital Transformation

Slide 19 till 27 further elaborate on the fact that for PLM there is no evolutionary approach possible, going from a Coordinated technology towards a Connected technology.

For three reasons:  different type of data (document vs. database elements), different people (working in a connected environment requires modern digital skills) and different processes (the standard methods for mechanical-oriented PLM practices do not match processes needed to deliver systems (hardware & software) with an incremental delivery process).

Due to the incompatibility of the data, more and more companies discover that a single PLM-instance cannot support both modes – staying with your existing document-oriented PLM-system does not give the capabilities needed for a model-driven approach. Migrating the data from a traditional PLM-environment towards a modern data-driven environment does not bring any value. The majority of the coordinated data is not complete and with the right quality to use a data-driven environment. Note: in  a data-driven environment you do not have people interpreting the data – the data should be correct for automation / algorithms.

The overlay approach, mentioned several times in various PLM-blogs, is an intermediate solution. It provides traceability and visibility between different data sources (PLM, ALM, ERP, SCM, …). However it does not make the information in these systems better accessible.

So the ultimate conclusion is: You need both approaches, and you need to learn to work in a hybrid environment !

What can various stakeholders do?

For the management of your company, it is crucial they understand the full impact of digital transformation. It is not about a sexy customer website, a service platform or Virtual Reality/Augmented Reality case for the shop floor or services. When these capabilities are created disconnected from the source (PLM), they will deliver inconsistencies in the long-term. The new digital baby becomes another silo in the organization. Real digital transformation comes from an end-to-end vision and implementation.  The result of this end-to-end vision will be the understanding that there is a duality in data, in particular for the PLM domain.

Besides the technicalities, when going through a digital transformation, it is crucial for the management to share their vision in a way it becomes a motivational story, a myth, for all employees. As Yuval Harari, writer of the book Sapiens,  suggested, we (Home Sapiens) need an abstract story, a myth to align a larger group of people to achieve a common abstract goal. I discussed this topic in my posts: PLM as a myth? (2017)  and PLM – measurable or a myth?

Finally, the beauty of new digital businesses is that they are connected and can be monitored in real-time. That implies you can check the results continuously and adjust – scale of fail!

Consultants and strategists in a company should also take the responsibility, to educate the management and when advising on less transformational steps, like efficiency improvements: Make sure you learn and understand model-based approaches and push for data governance initiatives. This will at least narrow the gap between coordinated and connected environments.

This was about strategy – now about execution:

For PLM vendors and implementers, understanding the incompatibility of data between current PLM practices – coordinated and connected – it will lead to different business models. Where traditionally the new PLM vendor started first with a rip-and-replace of the earlier environment – no added value – now it is about starting a new parallel environment.  This implies no more big replacement deals, but more a long-term. strategic and parallel journey.  For PLM vendors it is crucial that being able to offer to these modes in parallel will allow them to keep up their customer base and grow. If they would choose for coordinated or connected only it is for sure a competitor will work in parallel.

For PLM users, an organization should understand that they are the most valuable resources, realizing these people cannot make a drastic change in their behavior. People will adapt within their capabilities but do not expect a person who grew up in the traditional ways of working (linear / analogue) to become a successful worker in the new mode (agile / digital). Their value lies in transferring their skills and coaching new employees but do not let them work in two modes. And when it comes to education: permanent education is crucial and should be scheduled – it is not about one or two trainings per year – if the perfect training would exist, why do students go to school for several years ? Why not give them the perfect PowerPoint twice a year?

Conclusions

I believe after three years of blogging about this theme I have made my point. Let’s observe and learn from what is happening in the field – I remain curious and focused about proof points and new insights. This year I hope to share with you new ideas related to digital practices in all industries, of course all associated with the human side of what we once started to call PLM.

Note: Oleg Shilovitsky just published an interesting post this weekend: Why complexity is killing PLM and what are future trajectories and opportunities? Enough food for discussion. One point: The fact that consumers want simplicity does not mean PLM will become simple – working in the context of other information is the challenge – it is human behavior – team players are good in anticipating – big egos are not. To be continued…….

 

 

 

 

 

 

 

 

 

I was happy to take part at the PI PLMx London event last week. It was here and in the same hotel that this conference saw the light in 2011  – you can see my blog post from that event here: PLM and Innovation @ PLMINNOVATION 2011.

At that time the first vendor-independent PLM conference after a long time and it brought a lot of new people together to discuss their experience with PLM. Looking at the audience that time, many of the companies that were there, came back during the years, confirming the value this conference has brought to their PLM journey.

Similar to the PDT conference(s) – just announced for this year last week – here – the number of participants is diminishing.

Main hypotheses:

  1. the PLM-definition has become too vague. Going to a PLM conference does not guarantee it is your type of PLM discussions you expect to see?
  2. the average person is now much better informed related to PLM thanks to the internet and social media (blogs/webinars/ etc.) Therefore, the value retrieved from the PLM conference is not big enough any more?
  3. Digital Transformation is absorbing all the budget and attention downstream the organization not creating the need and awareness of modern PLM to the attention of the management anymore. g., a digital twin is sexier to discuss than PLM?

What do you think about the above three hypotheses – 1,2 and/or 3?

Back to the conference. The discussion related to PLM has changed over the past nine years. As I presented at PI from the beginning in 2011, here are the nine titles from my sessions:

2011       PLM – The missing link
2012       Making the case for PLM
2013       PLM loves Innovation
2014       PLM is changing
2015       The challenge of PLM upgrades
2016       The PLM identity crisis
2017       Digital Transformation affects PLM
2018       PLM transformation alongside Digitization
2019       The challenges of a connected Ecosystem for PLM

Where the focus started with justifying PLM, as well as a supporting infrastructure, to bring Innovation to the market, the first changes became visible in 2014. PLM was changing as more data-driven vendors appeared with new and modern (metadata) concepts and cloud, creating the discussion about what would be the next upgrade challenge.

The identity crisis reflected the introduction of software development / management combined with traditional (mechanical) PLM – how to deal with systems? Where are the best practices?

Then from 2017 on until now Digital Transformation and the impact on PLM and an organization became the themes to discuss – and we are not ready yet!

Now some of the highlights from the conference. As there were parallel sessions, I had to divide my attention – you can see the full agenda here:

How to Build Critical Architecture Models for the New Digital Economy

The conference started with a refreshing presentation from David Sherburne (Carestream) explaining their journey towards a digital economy.  According to David, the main reason behind digitization is to save time, as he quoted Harvey Mackay an American Businessman and Journalist,

Time is free, but it is priceless. You cannot own it, but you can use it. You can’t keep it, but you can spend it. Once you have lost it, you never can get it back

I tend to agree with this simplification as it makes the story easy to explain to everyone in your company. Probably I would add to that story that saving time also means less money spent on intermediate resources in a company, therefore, creating a two-sided competitive advantage.

David stated that today’s digital transformation is more about business change than technology and here I wholeheartedly agree. Once you can master the flow of data in your company, you can change and adapt your company’s business processes to be better connected to the customer and therefore deliver the value they expect (increases your competitive advantage).

Having new technology in place does not help you unless you change the way you work.

David introduced a new acronym ILM (Integrated Lifecycle Management) and I am sure some people will jump on this acronym.

David’s presentation contained an interesting view from the business-architectural point of view. An excellent start for the conference where various dimensions of digital transformation and PLM were explored.

Integrated PLM in the Chemical industry

Another interesting session was from Susanna Mäentausta  (Kemira oy)  with the title: “Increased speed to market, decreased risk of non-compliance through integrated PLM in Chemical industry.” I selected her session as from my past involvement with the process industry, I noticed that PLM adoption is very low in the process industry. Understanding Why and How they implemented PLM was interesting for me. Her PLM vision slide says it all:

There were two points that I liked a lot from her presentation, as I can confirm they are crucial.

  • Although there was a justification for the implementation of PLM, there was no ROI calculation done upfront. I think this is crucial, you know as a company you need to invest in PLM to stay competitive. Making an ROI-story is just consoling the people with artificial number – success and numbers depend on the implementation and Susanna confirmed that step 1 delivered enough value to be confident.
  • There were an end-to-end governance and a communication plan in place. Compared to PLM projects I know, this was done very extensive – full engagement of key users and on-going feedback – communicate, communicate, communicate. How often do we forget this in PLM projects?

Extracting More Value of PLM in an Engineer-to-Order Business

Sami Grönstrand & Helena Gutierrez presented as an experienced duo (they were active in PI P PLMx Hamburg/Berlin before) – their current status and mission for PLM @ Outotec. As the title suggests, it was about how to extract more value from PL M, in an Engineering to Order Business.

What I liked is how they simplified their PLM targets from a complex landscape into three story-lines.

If you jump into all the details where PLM is contributing to your business, it might get too complicated for the audience involved. Therefore, they aligned their work around three value messages:

  • Boosting sales, by focusing on modularization and encouraging the use of a product configurator. This instead of developing every time a customer-specific solution
  • Accelerating project deliverables, again reaping the benefits of modularization, creating libraries and training the workforce in using this new environment (otherwise no use of new capabilities). The results in reducing engineering hours was quite significant.
  • Creating New Business Models, by connecting all data using a joint plant structure with related equipment. By linking these data elements, an end-to-end digital continuity was established to support advanced service and support business models.

My conclusion from this session was again that if you want to motivate people on a PLM-journey it is not about the technical details, it is about the business benefits that drive these new ways of working.

Managing Product Variation in a Configure-To-Order Business

In the context of the previous session from Outotec, Björn Wilhemsson’s session was also addressing somehow the same topic of How to create as much as possible variation in your customer offering, while internally keep the number of variants and parts manageable.

Björn, Alfa Laval’s OnePLM Programme Director, explained in detail the strategy they implemented to address these challenges. His presentation was very educational and could serve as a lesson for many of us related to product portfolio management and modularization.

Björn explained in detail the six measures to control variation, starting from a model-strategy / roadmap (thinking first) followed by building a modularized product architecture, controlling and limiting the number of variants during your New Product Development process. Next as Alfa Laval is in a Configure-To-Order business, Björn the implementation of order-based and automated addition of pre-approved variants (not every variant needs to exist in detail before selling it), followed by the controlled introduction of additional variants and continuous analysis of quoted and sold variant (the power of a digital portfolio) as his summary slides shows below:

Day 1 closed with an inspirational keynote; Lessons-Learnt from the Mountaineering Experience 8848 Meter above sea level  – a mission to climb the highest mountain on each of the continents in 107 days – 9 hours – setting a new world record by Jonathan Gupta.

There are some analogies to discover between his mission and a PLM implementation. It is all about having the total picture in mind. Plan and plan, prepare step-by-step in detail and rely on teamwork – it is not a solo journey – and it is about reaching a top (deliverable phase) in the most efficient way.

The differences: PLM does not need world records, you need to go with the pace an organization can digest and understand. Although the initial PLM climate during implementation might be chilling too, I do not believe you have to suffer temperatures below 50 degrees Celsius.

During the morning, I was involved in several meetings, therefore unfortunate unable to see some of the interesting sessions at that time. Hopefully later available on PI.TV for review as slides-only do not tell the full story. Although there are experts that can conclude and comment after seeing a single slide. You can read it here from my blog buddy Oleg Shilovitsky’s post : PLM Buzzword Detox. I think oversimplification is exactly creating the current problem we have in this world – people without knowledge become louder and sure about their opinion compared to knowledgeable people who have spent time to understand the matter.

Have a look at the Dunning-Kruger effect here (if you take the time to understand).

 

PLM: Enabling the Future of a Smart and Connected Ecosystem

Peter Bilello from CIMdata shared his observations and guidance related to the current ongoing digital business revolution that is taking place thanks to internet and IoT technologies. It will fundamentally transform how people will work and interact between themselves and with machines. Survival in business will depend on how companies create Smart and Connected Ecosystems. Peter showed a slide from the 2015 World Economic Forum (below) which is still relevant:

Probably depending on your business some of these waves might have touched your organization already. What is clear that the market leaders here will benefit the most – the ones owning a smart and connected ecosystem will be the winners shortly.

Next, Peter explained why PLM, and in particular the Product Innovation Platform, is crucial for a smart and connected enterprise.  Shiny capabilities like a digital twin, the link between virtual and real, or virtual & augmented reality can only be achieved affordably and competitively if you invest in making the source digital connected. The scope of a product innovation platform is much broader than traditional PLM. Also, the way information is stored differs – moving from documents (files) towards data (elements in a database).  I fully agree with Peter’s opinion here that PLM is conceptually the Killer App for a Smart & Connected Ecosystem and this notion is spreading.

A recent article from Forbes in the category Leadership: Is Your Company Ready For Digital Product Life Cycle Management? shows there is awareness.  Still very basic and people are still confused to understand what is the difference with an electronic file (digital too ?) and a digital definition of information.

The main point to remember here: Digital information can be accessed directly through a programming interface (API/Service) without the need to open a container (document) and search for this piece of information.

Peter then zoomed in on some topics that companies need to investigate to reach a smart & connected ecosystem. Security (still a question hardly addressed in IoT/Digital Twin demos), Standards and Interoperability ( you cannot connect in all proprietary formats economically and sustainably) A lot of points to consider and I want to close with Peter’s slide illustrating where most companies are in reality

The Challenges of a Connected Ecosystem for PLM

I was happy to present after Peter Bilello and David Sherburne (on day 1) as they both gave a perspective on digital transformation complementary to what I submitted. My presentation was focusing on the incompatibility of current coordinated business systems and the concept of a connected ecosystem.

You can already download my slides from SlideShare here: The Challenges of a Connected Ecosystem for PLM . I will explain my presentation in an upcoming blog post as slides without a story might lead to the wrong interpretation, and we already reached 2000 words. Few words to come.

How to Run a PLM Project Using the Agile Manifesto

Andrew Lodge, head of Engineering Systems at JCB explained how applying the agile mindset towards a PLM project can lead to faster and accurate results needed by the business. I am a full supporter for this approach as having worked in long and waterfall-type of PLM implementations there was always the big crash and user dissatisfaction at the final delivery. Keeping the business involved every step seems to be the solution. The issue I discovered here is that agile implementation requires a lot of people, in particular, business, to be involved heavily. Some companies do not understand this need and dropped /reduced business contribution to the least, killing the value of an agile approach

 

Concluding

For me coming back to London for the PI PLMx event was very motivational. Where the past two, three conferences before in Germany might have led to little progress per year, this year, thanks to new attendees and inspiration, it became for me a vivid event, hopefully growing shortly. Networking and listening to your peers in business remains crucial to digest it all.

 

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