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When I started working with SmarTeam Corp.  in 1999, the company had several product managers, who were responsible for the whole lifecycle of a component or technology. The Product Manager was the person to define the features for the new release and provide the justification for these new features internally inside R&D.  In addition the Product Manager had the external role to visit customers and understand their needs for future releases and building and explaining a coherent vision to the outside and internal world. The product manager had a central role, connecting all stakeholders.

In the ideal situation the Product Manager was THE person who could speak in R&D-language about the implementation of features, could talk with marketing and documentation teams to explain the value and expected behavior and could talk with the customer describing the vision, meanwhile verifying the product’s vision and roadmap based on their inputs.All these expected skills make the role of a product manager challenging. Is the person too “techy” than he/she will enjoy working with R&D but have a hard time understanding customer demands. From the other side if the Product Manager is excellent in picking-up customer and market feedback he/she might not be heard and get the expected priorities from R&D. For me, it has always been clear that in software world a “bi-directional” Product Manager is crucial to success.

Where are the Product Managers in the Manufacturing Industry?

Approximate four years ago new concepts related to digitalization for PLM became more evident. How could a digital continuity connect the various disciplines around the product lifecycle and therefore provide end-to-end visibility and traceability? When speaking of end-to-end visibility most of the time companies talked about the way they designed and delivered products, visibility of what is happening stopped most of the time after manufacturing. The diagram to the left, showing a typical Build To Order organization illustrates the classical way of thinking. There is an R&D team working on Innovation, typically a few engineers and most of the engineers are working in Sales Engineering and Manufacturing Preparation to define and deliver a customer specific order. In theory, once delivered none of the engineers will be further involved, and it is up to the Service Department to react to what is happening in the field.

A classical process in the PLM domain is the New Product Introduction process for companies that deliver products in large volumes to the market, most of the time configurable to be able to answer to various customer or pricing segments. This process is most of the time linear and is either described in one stream or two parallel streams. In the last case, the R&D department develops new concepts and prepares the full product for the market. However, the operational department starts in parallel, initially involved in strategic sourcing, and later scaling-up manufacturing disconnected from R&D.

I described these two processes because they both illustrate how disconnected the source (R&D/ Sales)  are from the final result in the field. In both cases managed by the service department. A typical story that I learned from many manufacturing companies is that at the end it is hard to get a full picture from what is happening across the whole lifecycle, How external feedback (market & customers) have the option to influence at any stage is undefined. I used the diagram below even  before companies were even talking about a customer-driven digital transformation. Just understanding end-to-end what is happening with a product along the lifecycle is already a challenge for a company.

Putting the customer at the center

Modern business is about having customer or market involvement in the whole lifecycle of the product. And as products become more and more a combination of hardware and software, it is the software that allows the manufacturer to provide incremental innovation to their products. However, to innovate in a manner that is matching or even exceeding customer demands, information from the outside world needs to travel as fast as possible through an organization. In case this is done in isolated systems and documents, the journey will be cumbersome and too slow to allow a company to act fast enough. Here digitization comes in, making information directly available as data elements instead of documents with their own file formats and systems to author them. The ultimate dream is a digital enterprise where date “flows”, advocated already by some manufacturing companies for several years.

In the previous paragraph I talked about the need to have an infrastructure in place for people in an organization to follow the product along the complete lifecycle, to be able to analyze and improve the customer experience. However, you also need to create a role in the organization for a person to be responsible for combining insights from the market and to lead various disciplines in the organization, R&D, Sales, Services. And this is precisely the role of a Product Manager.

Very common in the world of software development, not yet recognized in manufacturing companies. In case a product manager role exists already in your organization, he/she can tell you how complicated it currently is to get an overall view of the product and which benefits a digital infrastructure would bring for their job. Once the product manager is well-supported and recognized in the organization, the right skill set to prioritize or discover actions/features will make the products more attractive for consumers. Here the company will benefit.

Conclusion

If your company does not have the role of a product manager in place, your business is probably not yet well enough engaged in the customer journey.  There will be broken links and costly processes to get a fast response to the market.  Consider the role of a Product Manager, which will emerge as seen from the software business.

NOTE 1: Just before publishing this post I read an interesting post from Jan Bosch: Structure Eats Strategy. Well fitting in this context

NOTE 2: The existence of a Product Manager might be a digital maturity indicator for a company, like for classical PLM maturity, the handling of the MBOM (PDM/PLM/ERP) gives insight into PLM maturity of a company.

Related to the MBOM, please read: The Importance of a PLM data model – EBOM and MBOM

 

 

 

 

 

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As I am preparing my presentation for the upcoming PDT Europe 2017 conference in Gothenburg, I was reading relevant experiences to a data-driven approach. During PDT Europe conference we will share and discuss the continuous transformation of PLM to support the Lifecycle Model-Based Enterprise. 

One of the direct benefits is that a model-based enterprise allows information to be shared without the need to have documents to be converted to a particular format, therefore saving costs for resources and bringing unprecedented speed for information availability, like what we are used having in a modern digital society.

For me, a modern digital enterprise relies on data coming from different platforms/systems and the data needs to be managed in such a manner that it can serve as a foundation for any type of app based on federated data.

This statement implies some constraints. It means that data coming from various platforms or systems must be accessible through APIs / Microservices or interfaces in an almost real-time manner. See my post Microservices, APIs, Platforms and PLM Services. Also, the data needs to be reliable and understandable for machine interpretation. Understandable data can lead to insights and predictive analysis. Reliable and understandable data allows algorithms to execute on the data.

Classical ECO/ECR processes can become highly automated when the data is reliable, and the company’s strategy is captured in rules. In a data-driven environment, there will be much more granular data that requires some kind of approval status. We cannot do this manually anymore as it would kill the company, too expensive and too slow. Therefore, the need for algorithms.

What is understandable data?

I tried to avoid as long as possible academic language, but now we have to be more precise as we enter the domain of master data management. I was triggered by this recent post from Gartner: Gartner Reveals the 2017 Hype Cycle for Data Management. There are many topics in the hype cycle, and it was interesting to see Master Data Management is starting to be taken seriously after going through inflated expectations and disillusionment.

This was interesting as two years ago we had a one-day workshop preceding PDT Europe 2015, focusing on Master Data Management in the context of PLM. The attendees at that workshop coming from various companies agreed that there was no real MDM for the engineering/manufacturing side of the business. MDM was more or less hijacked by SAP and other ERP-driven organizations.

Looking back, it is clear to me why in the PLM space MDM was not a real topic at that time. We were still too much focusing and are again too much focusing on information stored in files and documents. The only area touched by MDM was the BOM, and Part definitions as these objects also touch the ERP- and After Sales-  domain.

Actually, there are various MDM concepts, and I found an excellent presentation from Christopher Bradley explaining the different architectures on SlideShare: How to identify the correct Master Data subject areas & tooling for your MDM initiative. In particular, I liked the slide below as it comes close to my experience in the process industry

Here we see two MDM architectures, the one of the left driven from ERP. The one on the right could be based on the ISO-15926 standard as the process industry has worked for over 25 years to define a global exchange standard and data dictionary. The process industry was able to reach such a maturity level due to the need to support assets for many years across the lifecycle and the relatively stable environment. Other sectors are less standardized or so much depending on new concepts that it would be hard to have an industry-specific master.

PLM as an Application Specific Master?

If you would currently start with an MDM initiative in your company and look for providers of MDM solution, you will discover that their values are based on technology capabilities, bringing data together from different enterprise systems in a way the customer thinks it should be organized. More a toolkit approach instead of an industry approach. And in cases, there is an industry approach it is sporadic that this approach is related to manufacturing companies. Remember my observation from 2015: manufacturing companies do not have MDM activities related to engineering/manufacturing because it is too complicated, too diverse, too many documents instead of data.

Now with modern digital PLM, there is a need for MDM to support the full digital enterprise. Therefore, when you combine the previous observations with a recent post on Engineering.com from Tom Gill: PLM Initiatives Take On Master Data Transformation I started to come to a new hypotheses:

For companies with a model-based approach that has no MDM in place, the implementation of their Product Innovation Platform (modern PLM) should be based on the industry-specific data definition for this industry.

Tom Gill explains in his post the business benefits and values of using the PLM as the source for an MDM approach. In particular, in modern PLM environments, the PLM data model is not only based on the BOM.  PLM now encompasses the full lifecycle of a product instead of initially more an engineering view. Modern PLM systems, or as CIMdata calls them Product Innovation Platforms, manage a complex data model, based on a model-driven approach. These entities are used across the whole lifecycle and therefore could be the best start for an industry-specific MDM approach. Now only the industries have to follow….

Once data is able to flow, there will be another discussion: Who is responsible for which attributes. Bjørn Fidjeland from plmPartner recently wrote: Who owns what data when …?  The content of his post is relevant, I only would change the title: Who is responsible for what data when as I believe in a modern digital enterprise there is no ownership anymore – it is about sharing and responsibilities

 

Conclusion

Where MDM in the past did not really focus on engineering data due to the classical document-driven approach, now in modern PLM implementations, the Master Data Model might be based on the industry-specific data elements, managed and controlled coming from the PLM data model

 

Do you follow my thoughts / agree ?

 

 

During my summer holidays, I read some fantastic books to relax the brain. Confessions from Jaume Cabré was an impressive novel, and I finished Yuval Noah Harari’s book Sapiens.

However, to get my PLM-twisted brain back on track, I also decided to read the book “The Death of Expertise” from Tom Nichols, with the thought-provoking subtitle” “The Campaign Against Established Knowledge and Why it Matters.”

I wanted to read it and understand if and how this would apply for PLM.

Tom Nichols is an American, so you understand he has many examples to support his statement from his own experience, like the anti-vaccination “experts”,  the climate change “hoax” and an “expert” tweeting president in his country who knows everything. Besides these obvious examples, Tom explains in a structured way how due to more general education and the internet, the distance between an expert and a average person has disappeared and facts and opinions seem to be interchangeable. I talked about this phenomena during the Product Innovation conference in Munich 2016: The PLM identity crisis.

Further down the book, Tom becomes a little grumpy and starts to complain about the Internet, Google and even about Wikipedia. These information resources provide so often fake or skin-deep information, which is not scientifically proven by experts. It reminded me of a conference that I attended in the early nineties of the previous century.  An engineering society had organized this conference to discuss the issue that finite element analysis became more and more available to laymen. The affordable simulation software would be used by non-trained engineers, and they would make the wrong decisions. Constructions would fall down, machines would fail. Looking back now, we can see the liberation of finite element analysis leads to more usage of simulation technology providing better products and when really needed experts are still involved.

I have the same opinion for internet, Google, and Wikipedia. They rapidly provide information. Still, you need to do fact checking and look at multiple sources, even if you found the answer that you liked already. Usually, when I do my “research” using the internet, I try to find different sources with different opinions and if possible also from various countries. What you will discover is that, when using the internet, there is often detailed information, but not in the headlines of these pages. To get down to the details, we will need experts for certain cases, but we cannot turn the clock back to the previous century.

What about PLM Expertise?

In the case of PLM, it is hard to find real expertise. Although PLM is recognized as a business strategy / a domain / an infrastructure , PLM has so many faces depending on the industry and its application. It will be hard to find an expert who understands it all and I assume headhunters can confirm this. A search for “PLM Consultant” on LinkedIn gives me almost 4000 hits, and when searching for “PLM Expert,” this number is reduced to less than 200. With only one source of information (LinkedIn), these figures do not really give an in-depth result (as expected !)

However, what is a PLM expert? Recently I wrote a post sharing the observation that a lot of PLM product – or IT-focused discussions miss the point of education (see PLM for Small and Medium Enterprises – It is not the software). In this post, I referred to an initiative from John Stark striving for the recognition of a PLM professional. You can read John’s follow up on this activity here: How strong is the support for Professional PLM?  Would a PLM Professional bring expertise?

I believe when a company understands the need for PLM, they have to build this knowledge internally. Building knowledge is a challenge for small and medium enterprises. It is a long-term investment contributing to the viability of the company. Support from a PLM professional can help. However, like the job of a teacher, it is about the skill-set (subjects, experience) and the motivational power of such a person. A certificate won’t help to select a qualified person.

Conclusion

We still need PLM expertise, and it takes time to build it. Expertise is something different as an (internet) opinion. When gaining PLM expertise, use the internet and other resources wisely. Do not go for the headlines of an internet page. Go deeper than the marketing pages from PLM related companies (vendors/implementers). Take time and hire experts to help you, not to release you from your responsibility to collect the expertise.

 

Note: If you want to meet PLM Experts and get a vendor-independent taste of PLM, join me at PDT Europe 2017 on 18-19 October in Gothenburg.  The theme of the conference: Continuous transformation of PLM to support the Lifecycle Model-Based Enterprise.  The conference is preceded on 17th October by CIMdata’s PLM Roadmap Europe 2017. Looking forward to meet you there !

 

 

My last blog post was about reasons why PLM is not simple. PLM supporting a well-planned business transformation requires business change / new ways of working. PLM is going through different stages. We are moving from drawing-centric (previous century), through BOM-centric (currently) towards model-centric (current and future). You can read the post here: PLM is not simple!

I was happy to see  my blog buddy Oleg Shilovitsky chimed in on this theme, with his post: Who needs Simple PLM? Oleg reviewed the stakeholders around a PLM implementation. An analytical approach which could be correct in case predictive human beings were involved. Since human beings are not predictive and my focus is on the combination of PLM and human beings, here are some follow comments on the points Oleg made:

 

Customers (Industrial companies)

Oleg wrote:

A typical PLM customer isn’t a single user. A typical PLM buyer is engineering IT organization purchasing software to solve business problem. His interest to solve business problem, but not really to make it simple. Complex software requires more people, an increased budget and can become an additional reason to highlight IT department skills and experience. End-users hate complex software these days,therefore, usability is desired, but not top priority for enterprise PLM.

My comments on this part: PLM becomes more and more an infrastructure for product information along the whole lifecycle. PLM is no longer an engineering tool provided by IT.

There are now many other stakeholders that need product data, in particular when we are moving to a digital enterprise. A model-based approach connects Manufacturing and Service/Operations through a digital thread. It is the business demanding for PLM to manage their complexity. IT will benefit from a reduction in silo applications.

 

PLM Vendors

Oleg wrote:

…most PLM vendors are far away from a desired level of simplicity. Marketing will like “simple” messages, but if you know how to sell complex software, you won’t be much interested to see “simple package” everyone can sell. However, for the last decade, PLM vendors were criticized a lot for complexity of their solutions, so they are pretty much interested how to simplify things and present it as a competitive differentiation.

 

Here we are aligned. All PLM vendors are dreaming of simplifying their software. Imagine: if you have a simple product everyone can use, you would be the market leader and profitable like crazy without a big effort as the product is simple. Of course, this only works, assuming this dream can be realized.

Some vendors believe that easy customization or configuration of the system means simplification. Others believe a simple user-interface is the key differentiator. Compared to mass-consumer software products in the market, a PLM system is still a niche product, with a limited amount of users working with the exact same version of the software. Combined with the particular needs (customizations) every company has (“we are different”), there will never be a simple PLM solution. Coming back to the business transformation theme, human beings are the weakest link.

 

Implementation and Service Providers

Oleg wrote:

Complex software, customization, configuration, know-hows, best practices, installation… you name it.More of these things can only lead to more services which is core business of PLM service providers. PLM industry is very much competitive, but simplicity is not a desired characteristic for PLM when it comes to service business. Guess what… customer can figure it out how to make it and stop paying for services.

Here we are totally aligned. In the past, I have been involved in potential alliances where certain service providers evaluated SmarTeam as a potential tool for their business. In particular, the major PLM service providers did not see enough value in an easy to configure and relatively cheap product. Cheap means no budget for a huge amount of services.

Still, the biggest problem SmarTeam had after ten years was the fact that every implementation became a unique deployment. Hard to maintain and guarantee for the future. In particular, when new functionality was introduced which potentially already existed as customization.  Implementation and service providers will never say NO to a customer when it comes to further customization of the system. Therefore, the customer should be in charge and own the implementation. For making strategic decision support can come from a PLM consultant or coach.

 

PLM Consultants

Here Oleg wrote:

Complex software can lead to good consulting revenues. It was true many years for enterprise software. Although, most of PLM consultants are trying to distant from PLM software and sell their experience “to implement the future”, simplicity is not a favorite word in consulting language. Customer will hire consulting people to figure out the future and how to transform business, but what if software is simple enough to make it happen without consultant? Good question to ask, but most of them will tell you it is not a realistic scenario. Which is most probably true today. But here is the hint – remember the time PC technicians knew how to configured jumpers on PC cards to make printer actually print something?

Here we are not aligned. Business transformations will never happen because of simple tools. People are measured and pushed to optimize their silos in the organization. A digital transformation, which is creating a horizontal flow and transparency of information, will never happen through a tool. The organization needs to change, and this is always driven by a top-down strategy. PLM consultants are valuable to explain the potential future, to coach all levels of the organization. In theory, a PLM consultant’s job is tool independent. However, the challenge of being completely disconnected from the existing tools might allow for dreams that never can be realized. In reality, most PLM consultants are experienced in one or more specific tools they have been implementing. The customer should be aware of that and make sure they own the PLM roadmap.

My conclusion:

Don’t confuse PLM with a tool, simple or complex. All PLM tools have a common base and depending on your industry and company’s vision there will be a short list. However, before you touch the tools, understand your business and the transformation path you want to take. And that is not simple !!

 

Your opinion?

Oleg and I can continue this debate for a long time.  We would be interested in learning your view on PLM and Simplicity – please tune in through the comments section below:

clip_image002It is already the 6th consecutive year that MarketKey organized the Product Innovation conference with its primary roots in PLM. For me, the PI conferences have always been a checkpoint for changes and progress in the field.

This year about 100 companies participated in the event with the theme: Digital Transformation. From Hype to Value? Sessions were split into three major streams: digital transformation, extended PLM, and Business Enabled Innovation larded with general keynote speeches. I wanted to attend all sessions (and I will do virtually later through PI.TV), but in this post, my observations are from the event highlights from the extended PLM sessions.

From iCub to R1

ittGiorgio Metta gave an overview of the RobotCub project, where teams are working on developing a robot that can support human beings in our day-to-day live. Some of us are used to industrial robots and understand their constraints. A robot to interact with human beings is extreme more complex, and its development is still in the early stages. This type of robot needs to learn and interpret its environment while remaining accurate and safe for the persons interacting with the robot.

One of the interesting intermediate outcome from the project is that a human-like robot with legs and arms is far too expensive and complicated to handle. Excellent for science fiction movies, but in reality too difficult to control its balance and movements.

This was an issue with the iCUB robot. Now Giorgio and the teams are working on the new R1 robot, maybe not “as-human” as the iCUB robot, but more affordable. It is not only the mechanics that challenge the researchers. Also, the software supporting the artificial intelligence required for a self-learning and performing safe robot is still in the early days.

clip_image004

An inspiring keynote speech to start the conference.

Standardizing PLM Components

The first Extended PLM session was Guido Klette (Rheinmetall), describing the challenges the Rheinmetall group has related to develop and support PLM needs. The group has several PLD/PLM-like systems in place. Guido does not believe in one size fits all to help every business in the group. They have already several PLM “monsters” in their organization. For more adequate support, Rheinmetall has defined a framework with PLM components and dependencies to a more granular choice of functionality to meet individual businesses.

Rheinmetal components

A challenge for this approach, identified by a question from the audience, is that it is a very scientific approach not addressing the difference in culture between countries. Guido agreed and mentioned that despite culture, companies joining the Rheinmetall group most of the time were happy to adhere to such a structured approach.

My takeaway: the component approach fits very well with the modern thinking that PLM should not be supported by a single “monster” system but can be addressed by components providing at the end the right business process support.

PLM as a business asset

husqvarnagroupBjörn Axling gave an excellent presentation describing the PLM perspective from the Husqvarna group. He addressed the external and internal challenges and opportunities for the group in a structured and logical approach which probably apply for most manufacturing companies in a global market. Björn explained that in the Husqvarna group PLM is considered as a business approach, more than ever, Product Lifecycle Management needs to be viewed as the DNA of a company which was the title of one of his slides.

Husqvarna

I like his eleven key imperatives (see the above picture) in particular key imperative #9 which is often forgotten:

Take definitions, nomenclature and data management very seriously – the devil is in the details.

This point will always fire back on you if you did not give it the needed attention from the start. Of course, the other ten points are also relevant. The challenge in every PLM project is to get these points addressed and understood in your company.

How to use PLM to enable Industry 4.0?

EignerMartin Eigner´s presentation was building upon his consistent messages that PDM and PLM should be evolving into SysML with a growing need for Model-Based Systems Engineering (MBSE) support.

The title of the presentation was related to Industry 4.0 more focusing on innovation in for Germany´s manufacturing industry. Germany has always been strong in manufacturing, not so strong in product innovation. Martin mentioned that later this year the German government will start another initiative, Engineering 4.0, which should be exciting for our PLM community.

Martin elaborated on the fact that end-to-end support for SysLM can be achieved through a backbone based on linked data. Do not try to solve all product information views in a single system is the lesson learned and preached.

Eigner-Bimodal

For me, it was interesting to see that also Martin picked up on the bimodal approach for PLM, required to support a transition to a modern digital enterprise (see picture). We cannot continue to build upon our old PLM environments to support, future digital businesses.

PLM and Digital Transformation

In my afternoon session (Jos Voskuil), I shared the observations that companies invest a lot in digital transformation downstream by introducing digital platforms for ERP, CRM, MES and Operations. PLM is often the forgotten platform that needs to change to support a digital enterprise with all its benefits. You can see my presentation here on SlideShare. I addressed here the bimodal approach as discussed in a previous blog post, introduced in Best Practices or Next Practices.

TacitBerlin2017Conclusions

In case your company is not ready yet for a digital transformation or bimodal approach I addressed the need to become model-driven instead of document-driven. And of course for a digital enterprise, the quality of the data counts. I wrote about these topics recently: Digital PLM requires a Model-Based Enterprise and The importance of accurate data: ACT NOW!

Closed-Loop PLM

The last extended PLM presentation from day 1 was given by Felix Nyffenegger, professor for PLM/CAx at HSR (University of Applied Science in Rapperswil (CH)). Felix shared his discovery journey into Industry 4.0, and IoT combined with experiences from the digitalLab@HSR, leading into the concept of closed-loop PLM.

ClosedLoop

I liked in particular how Felix brought the various views on the product together into one diagram, telling the full story of closed-loop PLM – necessary for a modern implementation framework.

A new age for airships

The last presentation of the day was from Chris Daniels describing the journey of Hybrid Air Vehicles with their Airlander 10 project. Where the classical airships, the most infamous perhaps the Hindenburg, have disappeared due to their flaws, the team of Hybrid Air Vehicles built upon the concept of airships in a defense project with the target to deliver a long endurance multi-intelligence vehicle. The advantage of airships is that they can stay in the air for several days, serving as communication hotspot, communication or rescue ship for places hard to reach with traditional aircraft or helicopter. The Airlander can be operation without going back to a base for 5 days, which is extremely long when you compare this to other aircraft.

airlander

The Airlander project is a typical example of incremental innovation used to optimize and extend the purpose of an airship. Combined with the fact that Chris was an excellent speaker made it a great closure of the day

Conclusion

This post is just an extract of one day and one stream of the conference. Already too large for a traditional blog post. Next week I will follow-up with day two and respond beyond 140 characters to the tweet below:

WhyNotInPLM

PLM and IPTwo terms pass me every day: Digital Transformation appears in every business discussion, and IP Security, a topic also discussed in all parts of society. We realize it is easy to steal electronic data without being detected (immediately).

What is Digital Transformation?

Digital Transformation is reshaping business processes to enable new business models, create a closer relation with the market, and react faster while reducing the inefficiencies of collecting, converting and processing analog or disconnected information.

Digital Transformation became possible thanks to the lower costs of technology and global connectivity, allowing companies, devices, and customers to interact in almost real-time when they are connected to the internet.

IOTIoT (Internet of Things) and IIoT (Industrial Internet of Things) are terms closely related to Digital Transformation. Their focus is on creating connectivity with products (systems) in the field, providing a tighter relation with the customer and enabling new (upgrade) services to gain better performance. Every manufacturing company should be exploring IoT and IIoT possibilities now.

Digital Transformation is also happening in the back office of companies. The target is to create a digital data flow inside the company and with the outside stakeholders, e.g., customers, suppliers, authorities. The benefits are mainly improved efficiency, faster response and higher quality interaction with the outside world.

digitalPLMThe part of Digital Transformation that concerns me the most is the domain of PLM. As I have stated in earlier posts (Best Practices or Next Practices ? / What is Digital PLM ?), the need is to replace the classical document-driven product to market approach by a modern data-driven interaction of products and services.

I am continually surprised that companies with an excellent Digital Transformation profile on their websites have no clue about Digital Transformation in their product innovation domain. Marketing is faster than reality.

PIBerlin2017-1I am happy to discuss this topic with many of my peers in the product innovation world @ PI Berlin 2017, three weeks from now. I am eagerly looking to look at how and why companies do not embrace the Digital Transformation sooner and faster. The theme of the conference, “Digital Transformation: From Hype to Value “ says it all. You can find the program here, and I will report about this conference the weekend after.

IP Security

The topic of IP protection has always been high on the agenda of manufacturing companies. Digital Transformation brings new challenges. Digital information will be stored somewhere on a server and probably through firewalls connected to the internet. Some industries have high-security policies, with separate networks for their operational environments. Still, many large enterprises are currently struggling with IP security policies as sharing data while protecting IP between various systems creates a lot of administration per system.

dropboxCloud solutions for sharing data are still a huge security risk. Where is the data stored and who else have access to it? Dropbox came in the news recently as “deleted” data came back after five years, “due to a bug.” Cloud data sharing cannot be trusted for real sensitive information.

Cloud providers always claim that their solutions are safer due to their strict safety procedures compared to the improvident behavior of employees. And, this is true. For example, a company I worked with had implemented Digital Rights Management (DRM) for internal sharing of their IP, making sure that users could only read information on the screen, and not store it locally if they had an issue with the server. “No problem”, one of the employees said, “I have here a copy of the documents on my USB-drive.

lockedCloud-based PLM systems are supposed to be safer. However, it still matters where the data is stored; security and hacking policies of countries vary. Assume your company´s IP is safe for hacking. Then the next question is “How about ownership of your data?”

Vendor lock-in and ownership of data are topics that always comes back at the PDT conferences (see my post on PDT2016). When a PLM cloud provider stores your product data in a proprietary data format, you will always be forced to have a costly data migration project when you decide to change from the provider.

Why not use standards for data storage? Hakan Kårdén triggered me on this topic again with his recent post: Data Is The New Oil So Make Sure You Ask For The Right Quality.

 

Conclusion:

Digital Transformation is happening everywhere but not always with the same pace and focus. New PLM practices still need to be implemented on a larger scale to become best practices. Digital information in the context of Intellectual Property creates extra challenges to be solved. Cloud providers do not offer yet solutions that are safe and avoiding vendor lock-in.

Be aware. To be continued…

Many thanks (again) to Dick Bourke for his editing suggestions

PLM can be swinging and inspiring although there will be times of frustration and stress when implementing. These seven musical views will help you to make it through the project.

 

One Vision

Every business change should start with a vision and a strategy. Defining the vision and keeping the vision alive is the responsibility of senior management. When it comes to PLM, the vision is crucial.

 

No more heroes

Of course, when implementing PLM, the target is to streamline the organization’s processes, eliminate bottlenecks and reduce dependencies on individuals. No more need for firefighters or other heroes because they fix or solve issues that appear due to the lack of processes and clarity.

 

Let´s do it together

PLM implementations are not IT-projects, where you install, configure and roll out an infrastructure based on one or more systems. Like a music band, it should be a well-orchestrated project between business experts and IT. Here´s a song to make your project swing.

 

Say NO at the right time

When implementing PLM, the software geeks can do everything for you: Customize the system, create a complete new environment looking like the old environment, and more. Of course, you will pay for it. Not only for the extra services, but also in the long-term to support all these customizations. Always try to find a balance between the standard functionality and infrastructure of the PLM system and the company´s vision. This means there are times you must Say NO to your users. Maybe not always as funny as these guys say it.

 

Eight days a week

During the PLM implementation and for sure after one of the several rollouts, changes may appear. And, normal work still needs to be done, sometimes in a different way. There will never be enough time to do everything perfect and fast, and it feels like you need more days in the week. When you are stressed, swing with these guys.

 

We are the champions

Then when the PLM project has been implemented successfully, there is a feeling of relief. It has been a tough time for the company and the PLM team. This should be the moment for the management to get everyone together in the stadium as an important change for the company´s future has been realized. Sing all together.

 

… But the times they are a-changing

Although a moment of relief is deserved, PLM implementations never end. The current infrastructure could be improved continuously due to better business understanding. However, globalization and digitalization will create new business challenges and opportunities at an extraordinarily fast pace. So, be aware and sing along with Bob.

 

BONUS

Time to close the 2016 book and look forward to next year’s activities. I wish all my readers happy holidays and a healthy, successful new year with a lot of dialogue, and no more one-liners.

 

See you in 2017 !!!!

changeRecently, I have written about classical PLM (document-driven and sequential) and modern PLM (data-driven and iterative) as part of the upcoming digital transformation that companies will have to go through to be fit for the future. Some strategic consultancy companies, like Accenture, talk about Digital PLM when referring to a PLM environment supporting the digital enterprise.

 

From classical PLM to Digital PLM?

The challenge for all companies is to transform their businesses to become customer-centric and find a transformation path from the old legacy PLM environment towards the new digital environment. Companies want to do this in an evolutionary mode. However my current observations are that the pace of an evolutionary approach is too slow related to what happens in their market. This time the change is happening faster than before.

A Big Bang approach towards the new environment seems to be a big risk. History has taught us that this is very painful and costly. To be avoided too. So what remains is a kind of bimodal approach, which I introduced in my recent blog posts (Best Practices or Next Practices). Although one of my respected readers and commenters Ed Lopategui mentioned in his comment (here) bimodal is another word for coexistence. He is not optimistic about this approach either

So, what remains is disruption?

And disruption is a popular word and my blog buddy Oleg Shilovitsky recently dived into that topic again with his post: How to displace CAD and PLM industry incumbents. An interesting post about disruption and disruption patterns. My attention was caught by the words: digital infrastructure.
I quote:

How it might happen? Here is one potential answer – digital infrastructure. Existing software is limited to CAD files stored on a desktop and collaboration technologies developed 15-20 years using relational database and client-server architecture.

Digital Infrastructure

imageAs I mentioned the words, Digital Infrastructure triggered me to write this post. At this moment,  I see companies marketing their Digital Transformation story in a slick way, supported by all the modern buzz words like; customer-centric, virtual twin and data-driven. You would imagine as a PLM geek that they have already made the jump from the old document-driven PLM towards modern digital PLM. So what does a modern digital PLM environment look like ?

The reality, however, behind this slick marketing curtain, is that there are still the old legacy processes, where engineers are producing drawings as output for manufacturing. Because drawings are still legal and controlled information carriers. There is no digital infrastructure behind the scenes. So, what would you expect behind the scenes?

Model-Based Definition as part of the digital infrastructure

Crucial to be ready for a digital infrastructure is to transform your company´s product development process from a file-based process where drawings are leading towards a model-based enterprise. The model needs to be the leading authority (single source of truth) for PMI (Product Manufacturing Information) and potentially for all upfront engineering activities. In this case, we call it Model-Based Systems Engineering sometimes called RFLP (Requirements-Functional-Logical-Product), where even the product can be analyzed and simulated directly based on the model.

A file-based process is not part of a digital infrastructure or model-based enterprise architecture. File-based processes force the company to have multiple instances and representations of the same data in different formats, creating an overhead of work to keep up quality and correctness of data, that is not 100 % secure. A digital infrastructure works with connected data in context.

econimistTherefore, if your company is still relying on drawings and you want to be ready for the future, a first step towards a digital infrastructure would be fixing your current processes to become model-based. Some good introductions can be found here at ENGINEERING.com – search for MBD and you will find:

Moving to Mode-Based is already a challenging transformation inside your company before touching the challenge of moving towards a full digital enterprise, through evolution, disruption or bimodal approach – let the leading companies show the way.

Conclusion

Companies should consider and investigate how to use a Model-Based Engineering approach as a first step to becoming lean and fit for a digital future. The challenge will be different depending on the type of industry and product.
I am curious to learn from my readers where they are on the path to a digital enterprise.

bimodalIn my earlier post The weekend after PDT Europe I wrote about the first day of this interesting conference. We ended that day with some food for thought related to a bimodal PLM approach. Now I will take you through the highlights of day 2.

Interoperability and openness in the air (aerospace)

I believe Airbus and Boeing are one of the most challenged companies when it comes to PLM. They have to cope with their stakeholders and massive amount of suppliers involved, constrained by a strong focus on safety and quality. And as airplanes have a long lifetime, the need to keep data accessible and available for over 75 years are massive challenges. The morning was opened by presentations from Anders Romare (Airbus) and Brian Chiesi (Boeing) where they confirmed they could switch the presenter´s role between them as the situations in Airbus and Boeing are so alike.

airbus logoAnders Romare started with a presentation called: Digital Transformation through an e2e PLM backbone, where he explained the concept of extracting data from the various silo systems in the company (CRM, PLM, MES, ERP) to make data available across the enterprise. In particular in their business transformation towards digital capabilities Airbus needed and created a new architecture on top of the existing business systems, focusing on data (“Data is the new oil”).

In order to meet a data-driven environment, Airbus extracts and normalizes data from their business systems and provides a data lake with integrated data on top of which various apps can run to offer digital services to existing and new stakeholders on any type of device. The data-driven environment allows people to have information in context and almost real-time available to make right decisions. Currently, these apps run on top of this data layer.

AirbusPDT2016

Now imagine information captured by these apps could be stored or directed back in the original architecture supporting the standard processes. This would be a real example of the bimodal approach as discussed on day 1. As a closing remark Anders also stated that three years ago digital transformation was not really visible at Airbus, now it is a must.

BoeingLogoNext Brian Chiesi from Boeing talked about Data Standards: A strategic lever for Boeing Commercial Airplanes. Brian talked about the complex landscape at Boeing. 2500 Applications / 5000 Servers / 900 changes annually (3 per day) impacting 40.000 users. There is a lot of data replication because many systems need their own proprietary format. Brian estimated that if 12 copies exist now, in the ideal world 2 or 3 will do. Brian presented a similar future concept as Airbus, where the traditional business systems (Systems Engineering, PLM, MRP, ERP, MES) are all connected through a service backbone. This new architecture is needed to address modern technology capabilities (social / mobile / analytics / cloud /IoT / Automation / ,,)

BoeingArchitecture

Interesting part of this architecture is that Boeing aims to exchange data with the outside world (customers / regulatory/supply chain /analytics / manufacturing) through industry standard interfaces to have an optimal flow of information. Standardization would lead to a reduction of customized applications, minimize costs of integration and migration, break the obsolescence cycle and enable future technologies. Brian knows that companies need to pull for standards, vendors will deliver. Boeing will be pushing for standards in their contracts and will actively work together with five major Aerospace & Defense companies to define required PLM capabilities and have a unified voice to PLM solutions providers.

My conclusion on these to Aerospace giants is they express the need to adapt to move to modern digital businesses, no longer the linear approach from the classic airplane programs. Incremental innovation in various domains is the future. The existing systems need to be there to support their current fleet for many, many years to come. The new data-driven layer needs to be connected through normalization and standardization of data. For the future focus on standards is a must.

MicrosoftLogoSimon Floyd from Microsoft talked about The Impact of Digital Transformation in the Manufacturing Enterprise where he talked us through Digital Transformation, IoT, and analytics in the product lifecycle, clarified by examples from the Rolls Royce turbine engine. A good and compelling story which could be used by any vendor explaining digital transformation and the relation to IoT. Next, Simon walked through the Microsoft portfolio and solution components to support a modern digital enterprise based on various platform services. At the end, Simon articulated how for example ShareAspace based on Microsoft infrastructure and technology can be an interface between various PLM environments through the product lifecycle.

Simon’s presentation was followed by a panel discussion where the theme was: When is history and legacy an asset and barriers of entry and When does it become a burden and an invitation to future competitors.
PDTpanel2Mark Halpern (Gartner) mentioned here again the bimodal thinking. Aras is bimodal. The classical PLM vendors running in mode 1 will not change radically and the new vendors, the mode 2 types will need time to create credibility. Other companies mentioned here PropelPLM (PLM on Salesforce platform) or OnShape will battle the next five years to become significant and might disrupt.

Simon Floyd(Microsoft) mentioned that in order to keep innovation within Microsoft, they allow for startups within in the company, with no constraints in the beginning to Microsoft. This to keep disruption inside you company instead of being disrupted from outside. Another point mentioned was that Tesla did not want to wait till COTS software would be available for their product development and support platform. Therefore they develop parts themselves. Are we going back to the early days of IT ?

Interesting trend I believe too, in case the building blocks for such solution architecture are based on open (standardized ?) services.

Data Quality

After the lunch, the conference was split in three streams where I was participating in the “Creating and managing information quality stream.” As I discussed in my presentation from day 1, there is a need for accurate data, starting a.s.a.p. as the future of our businesses will run on data as we learned from all speakers (and this is not a secret – still many companies do not act).

boost logoIn the context of data quality, Jean Brange from Boost presented the ISO 8000 framework for data and information quality management. This standard is now under development and will help companies to address their digital needs. The challenge of data quality is that we need to store data with the right syntax and semantic to be used and in addition, it needs to be pragmatic: what are we going to store that will have value. And then the challenge of evaluating the content. Empty fields can be discovered, however, how do you qualify the quality of field with a value. The ISO 8000 framework is a framework, like ISO 9000 (product quality) that allow companies to work in a methodological way towards acceptable and needed data quality.

iso8000

eurostep logoMagnus Färneland from Eurostep addressed the topic of data quality and the foundation for automation based on the latest developments done by Eurostep on top of their already rich PLCS data model. The PLCS data model is an impressive model as it already supports all facets of product lifecycle from design, through development and operations. By introducing soft typing, EuroStep allows a more detailed tuning of the data model to ensure configuration management. When at which stage of the lifecycle is certain information required (and becomes mandatory) ? Consistent data quality enforced through business process logic.

The conference ended with Marc Halpern making a plea for Take Control of Your Product Data or Lose Control of Your Revenue, where Marc painted the future (horror) scenario that due to digital transformation the real “big fish” will be the digital business ecosystem owner and that once you are locked in with a vendor, these vendors can uplift their prices to save their own business without any respect for your company’s business model. Marc gave some examples where some vendor raised prices with the subscription model up to 40 %. Therefore even when you are just closing a new agreement with a vendor, you should negotiate a price guarantee and a certain bandwidth for increase. And on top of that you should prepare an exit strategy – prepare data for migration and have backups using standards. Marc gave some examples of billions extra cost related to data quality and loss. It can hurt !! Finally, Marc ended with recommendations for master data management and quality as a needed company strategy.

GartnerSupscriptionModels

cimdataGerard Litjens from CIMdata as closing speaker gave a very comprehensive overview of The Internet of Thing – What does it mean for PLM ? based on CIMdata’ s vision. As all vendors in this space explain the relation between IoT and PLM differently, it was a good presentation to be used as a base for the discussion: how does IoT influence our PLM landscape. Because of the length of this blog post, I will not further go into these details – it is worth obtaining this overview.

Concluding: PDT2016 is a crucial PLM conference for people who are interested in the details of PLM. Other conferences might address high-level customer stories, at PDT2016 it is about the details and sharing the advantages of using standards. Standards are crucial for a data-driven environment where business platforms with all their constraints will be the future. And I saw more and more companies are working with standards in a pragmatic manner, observing the benefits and pushing for more data standards – it is not just theory.

See you next year ?

PDT2016I am just back from the annual PDT conference (12th edition), this year hosted in Paris from 9 to 10 November, co-located with CIMdata’s PLM Road Map 2016 for Aerospace & Defense. The PDT conference, organized by EuroStep and CIMdata, is a relatively small conference with a little over a hundred attendees. The attractiveness of this conference is that the group of dedicated participants is very interactive with each other sharing honest opinions and situations, sometimes going very deep into the details, needed to get the full picture. The theme of the conference was: “Investing for the future while managing product data legacy and obsolescence.” Here are some of the impressions from these days, giving you food for thought to join next year.

Setting the scene

Almost traditionally Peter Bilello (CIMdata) started the conference followed by Marc Halpern (Gartner). Their two presentations had an excellent storyline together.

cimdataPieter Bilello started and discussed Issues and Remedies for PLM Obsolescence. Peter did not address PLM obsolescence for the first time. It is a topic many early PLM adaptors are facing and in a way the imminent obsolescence of their current environments block them of taking advantage of new technologies and capabilities current PLM vendors offer. Having learned from the past CIMdata provides a PLM Obsolescence Management model, which should be on every companies agenda, in the same way as data quality (which I will address later). Being proactive in obsolescence can save critical situations and high costs. From the obsolescence theme, Peter looked forward to the future and the value product innovation platforms can offer, given the requirements that data should be able to flow through the organization, connecting to other platforms and applications, increasing the demand to adhere and push for standards.

gartnerMarc Halpern followed with his presentation, titled: More custom products demand new IT strategies and new PLM application where he focused on the new processes and methodology needed for future businesses with a high-focus on customer-specific deliveries, speed, and automation. Automation is always crucial to reducing production costs. In this delivery process 3D printing could bring benefits and Mark shared the plusses and minuses of 3D printing. Finally, when automation of a customer specific order would be possible, it requires a different IT-architecture, depicted by Mark. After proposing a roadmap for customizable products, Mark shared some examples of ROI benefits reported by successful transformation projects. Impressive !!

Gartner-ROI-samples

My summary of these two sessions is that both CIMdata and Gartner confirm the challenges companies have to change their old legacy processes and PLM environments which support the past, meanwhile moving to more, customer-driven processes and, modern data-driven PLM functionality. This process is not just an IT or Business change, it will also be a cultural change.

JT / STEP AP242 / PLCS

standardsNext, we had three sessions related to standards, where Alfred Katzenbach told the success story of JT, the investment done to get this standard approved and performing based on an active community to get the most out of JT, beyond its initial purpose of viewing and exchanging data in a neutral format. Jean-Yves Delanaunay explained in Airbus Operation the STEP AP242 definition is used as the core standard for 3D Model Based Definition (MB) exchange, part of the STEP standards suite and as the cornerstone for Long Term Archiving and Retrieval of Aerospace & Defense 3D MBD.

There seems to be some rivalry between JT and STEP242 viewing capabilities, which go beyond my understanding as I am not an expert from the field here. Nigel Shaw ended the morning session positioning PLCS as a standard for interoperability of information along the whole lifecycle of a product. Having a standardized data model as Nigel showed would be a common good approach for PLM vendors to converge to a more interoperable standard.

PLCS concept model

My summary of standards is that there is a lot of thinking, evaluation, and testing done by an extensive community of committed people. It will be hard for a company to define a better foundation for a standard in their business domain. Vendors are focusing on performance inside their technology offering and therefore will never push for standards (unless you use their products as a standard). A force for adhering to standards should come from the user community.

Using standards

After lunch we had three end-users stories from:

  • Eric Delaporte (Renault Group) talked about their NewPDM project and the usage of standards mainly for exchanges. Two interesting observations: Eric talks about New PDM – the usage of the words New (when does New become regular?) and PDM (not talking about PLM ?) and secondly as a user of standards he does not care about the JT/AP242 debate and uses both standards where applicable and performing.
  • Sebastien Olivier (France Ministry of Defense) gave a bi-annual update of their PCLS-journey used in two projects, Pencil (Standardized Exchange platform and centralized source of logistical information) and MAPS (Managing procurement contracts for buying In-Service Support services) and the status of their S3000L implementation (International procedure for Logistic Support Analysis). A presentation for the real in-crowd of this domain.
  • Juha Rautjarvi discussion how efficient use of knowledge for safety and security could be maintained and enhanced through collaboration. Here Juha talks about the Body of Knowledge which should be available for all stakeholders in the context of security and safety. And like a physical product this Body of Knowledge goes through a lifecycle, continuous adapting to what potentially arises from the outside world

My conclusion on this part was that if you are not really in these standards on a day-to-day base (and I am not), it is hard to pick the details. Still, the higher level thought processes behind these standard approaches allow you to see the benefits and impact of using standards, which is not the same as selecting a tool. It is a strategic choice.

Modular / Bimodular / not sexy ?

modilar - bimodulanrJakob Asell from Modular Management gave an overview how modularity can connect the worlds of sales, engineering, and manufacturing by adding a modular structure as a governing structure to the various structures used by each discipline. This product architecture can be used for product planning and provides and end-to-end connectivity of information. Modular Management is assisting companies in moving towards this approach.

Next my presentation title: The importance of accurate data. Act now! addressed the topic of the switch from classical, linear, document-driven PLM towards a modern, more incremental and data-driven PLM approach. Here I explained the disadvantage of the old evolutionary approach (impossible – too slow/too costly) and an alternative method, inspired by Gartner’s bimodular IT-approach (read my blog post: Best Practices or Next Practices). No matter which option you are looking for correct and quality data is the oil for the future, so companies should consider allowing the flow of data as a health issue for the future.

The day was closed with a large panel, where the panelist first jumped on the topic bimodal (bipolar ?? / multimodal ??) talking about mode 1 (the strategic approach) and mode 2 (the tactical and fast approach based on Gartner’s definition). It was clear that the majority of the panel was in Mode 1 mode. Which fluently lead to the discussion of usage of standards (and PLM) as not being attractive for the young generations (not sexy). Besides the conclusion that it takes time to understand the whole picture and see the valuable befits a standard can bring and join this enthusiasm

panel-day 1

Conclusion

I realize myself that this post is already too long according blogging guidelines. Therefore I will tell more about day 2 of the conference next week with Airbus going bimodal and more.

Stay tuned for next week !

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