Business models and technologies can come together and create significant and painful problems. The last few years, created lot of changes and new dynamics in engineering and manufacturing domain. 3D printing, cloud software, mobile – this is only a short list of examples. Product lifecycle management software is facing few interesting challenges and opportunities related to new demands of customers for faster ROI and lean implementations. Navigate to read more about it here – New manufacturing business models will influence PLM software.
Despite all changes, PLM still has some sort of “uncomfortable” price for many customers. It leads to future innovation in this space. One of the examples in this space is related to a new business formula from Aras that includes software upgrades into Aras Innovator subscription. More about it here – Aras and search for new business models. Aras subscription model is leveraging Aras enterprise open source model.
Open source is probably doesn’t sound as loud these days as it was few years ago. At the same time, open source innovation is fueling many new solutions and business models. My attention was caught by Techcrunch article – Custom Analytics Company Keen IO Goes Open Source With Its Data Explorer. Here is my favorite passage from the article:
But the Data Explorer, which launched earlier this year, isn’t just for programmers. Instead, businesses can use it to explore and visualize their data through a friendlier interface. In Wild’s words, it lets you “point-and-click your way to analyze data.” By open-sourcing the tool, Wild said Keen IO is allowing customers to embed the interface into their own internal websites and apps, customize the interface and potentially improve it and contribute back. Wild noted that Keen IO already open-sourced its dashboard templates and he said the company plans to make more available in the future.
I found it interesting because it emphases the importance of solving core fundamental data management and collaboration problems using open source approach. In a broad sense, PLM software is the same “data management toolkit” wrapped with layers of applications, configurations and customers. Here is the thing – none of PLM vendors didn’t think about converting core platform into open source and allowing to customers to develop their applications. Aras is probably half-way exclusion.
At the same time, 10-15 years ago, PDM / PLM platforms were actually advanced data management toolkits used by large implementation services team to develop highly customizable PLM applications for aerospace and automotive industry.
What if one of the existing core PLM platforms will turn into open source toolkit? It will allow to community of developers to build solutions on top of it and sell it to customers. Actually core developers of PLM platforms will turn their focus into providing of tools and technologies to support a consistent application experience. Salesforce can be a good example of providing UX experience that can be reused by developers. Take a look at Lightning Design System allowing to 3rd party developers to design applications with the same look and feel.
What is my conclusion? The next innovation turn might require rethinking multiple aspects of PLM software – business and technical. In the past, toolkit approach proved to be successful to sell complex PDM / PLM solutions to large companies. Today, a combination of open source and toolkit approach can fuel next step of innovation in product lifecycle management. Just my thoughts…
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