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How collaborative economy will change PLM

by Oleg on December 19, 2014 · 0 comments

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Have you heard about collaborative economy? If you are not familiar with the term, it is a time to get up to speed. I’m sure you are familiar with many examples of collaborative economy or so-called economy of share. Here is Wikipedia definition, which I found pretty accurate:

The sharing economy (sometimes also referred to as the peer-to-peer economy, mesh, collaborative economy, collaborative consumption) is a socio-economic system built around the sharing of human and physical resources. It includes the shared creation, production, distribution, trade and consumption of goods and services by different people and organisations.[1] These systems take a variety of forms, often leveraging information technology to empower individuals, corporations, non-profits and government with information that enables distribution, sharing and reuse of excess capacity in goods and services.[2] A common premise is that when information about goods is shared, the value of those goods may increase, for the business, for individuals, and for the community.[3]

The economy of share is growing. You can find an interesting perspective on presenting of collaboration economy in the following article by Jeremiah Owyang of Crowd Companies – The collaborative economy honeycomb.

Reading about growing collaborative economy made me think about significant influence on a world of things and the way people and companies are interacting during the process of designing, engineering, manufacturing and servicing products. It comes across many aspects of business and can fundamentally change business relationships and, as a result, influence product lifecycle.

Remember, existing PLM paradigms and fundamental ways companies are using engineering and manufacturing software were established back 40-50 years ago. The model CAD/PLM companies used for that came from large aerospace, automotive and defense companies. World we live in today is changing. So, how it will change product lifecycle management environment?

I captured few bold examples that can give you an idea of that change. Sharing economy environment is growing and evolving. Some of these examples can be transformed in the future or dissapear at all. But, in my view, it won’t change a trend of changes in manufacturing.

Distributed manufacturing and material production

Large companies that used to build existing PLM models already had distributed infrastructure. This infrastructure was centrally controlled and managed. It includes systems and infra to manage IP, transportation, etc. All together, it presented economically feasible model for manufacturing and distribution. Existing PLM system helped to execute elements of this model – design, engineering, services and others.

The emerging sharing economy model is different. It introduced new type of intellectual property management (including IP cooperation) and leverage a network of smaller players connected around the world leading technology innovation. This ecosystem made of network of workshops that can produce things locally. However, this model requires global physical coordination between players that located around the world. The demand for infrastructure and tools to support such type of model will be growing.

Peer production in manufacturing

Peer-to-peer is a form allowing connection between individuals and organizations and aggregate around the creation of common value. Building blocks of this model are cooperation, common knowledge, shared resources and open distribution. Open source software demonstrated a power of peer-to-peer production. Modern web was significantly influenced by this software creation model.

The model of peer production is now going beyond software in many domains. Manufacturing clearly will be impacted by introducing of new forms of relationships and production. Open source software created many tools that served needs of FOSS community. We might see similar situation in software for engineering and manufacturing.

Personal manufacturing

Manufacturing is transforming. What was before only possible for large companies and government is now scaling down to one. Regular people and small manufacturing shops with small investment capital are able to setup and grow up as their business will be growing. We know many examples of successful digital fabrication and personal manufacturing. Just go on Kickstarter and watch companies there.

However, most of Kickstarter projects are failing to deliver on time. They are facing problems with scaling their product development and manufacturing processes without right tools. I covered it in my blog – Why Kickstarter need PLM.

What is my conclusion? I only mentioned few examples of how economy of share is going to transform manufacturing. Future manufacturing processes will be network driven, which will introduce a complete new model for product lfiecycle management tools. This is where cloud PLM and other SaaS tools will have significant advantage. Just my thoughts…

Best, Oleg

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Kenesto cloud PDM hybrid

by Oleg on December 18, 2014 · 0 comments

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Few months ago, I posted about latest development of Kenesto cloud data management solutions – Kenesto revamp: does it change cloud PLM game? I saw it as a sharp turn for Kenesto from focusing on collaboration towards engineering and product data management business. From earlier comments made by Steve Bodnar of Kenesto here, I’ve learned Kenesto is developing technology to synchronize CAD data between desktops and cloud locations. Here is the comment made back in October:

…automatic synchronization maintains appropriate version control as well as permissions. This way, if you have “download only” permission, as an example, you can synchronize to one or more of your locations, and any updates will automatically be synchronized to those locations for you (in addition to notifications being sent).

CIMdata recent publication about Kenesto Collaboration Platform made me think again about what it does and how it might be different from other cloud PDM products available now or soon become available on the market. What caught my special attention in CIMdata publication is related to so called “innovative intersection of cloud-based file management and data sharing with traditional PDM vaulting”. A massive amount of CAD data is stored on corporate networks and just CAD desktops. It made me think Kenesto is trying to bring solution to customers that already have traditional PDM systems and extend it with a better collaborative option. The following passage from CIMdata commentary provides more explanations:

The Kenesto solution is a secure, hybrid, cloud-desktop collaboration platform where product development and delivery teams can collaborate using discussion threads, or by co-authoring documents and design files, with anytime, anywhere access. Kenesto puts a broad range of capabilities at the fingertips of product delivery teams to organize and manage their programs, products, and projects. Teams can create their workspaces with people, workflow, forms, data, and reports—including bills of materials, change requests, and purchasing forms—and be kept on the same page with Kenesto’s proprietary intelligent synchronization approach. Each user is provided with a dashboard that can be customized to personal preferences. An important feature in Kenesto is that users are always in full control of their documents and designs. A user can permit their teammates to view, mark-up, or edit their documents and designs and can collaborate with them in real time or asynchronously.

Many of features such as project, workspaces, workflow, forms, bill of materials, change requests etc. are not new in PDM industry. However, “cloud-desktop” hybrid sounds like a new buzzword. Does it mean Kenesto found something unique in terms how to bring desktop CAD users to the cloud? It hard to say based on a commentary, but it might go that way.

What is my conclusion? Market dynamics are bringing more engineering and manufacturing companies to the cloud. It gives more opportunities to cloud PDM/PLM vendors. At the same time, it raises more questions how existing environment and data assets will be managed and how people will collaborate in a hybrid environment. Kenesto might solve an interesting problem here and compete with other vendors in the same domain – Autodesk, SolidWorks, GrabCAD and others. Just my thoughts…

Best, Oleg

photo credit: ukCWCS via photopin cc

Photo is an illustration only and does not reflect Kenesto architecture.

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What is PLM software replacement cycle?

by Oleg on December 12, 2014 · 2 comments

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PLM selection is complex process. It takes time to make a decision, evaluate, build a pilot and implement PLM system. I’ve been thinking about how this process can change in the future. Navigate to my Future PLM selection post to catch up. One of my discoveries was the following data point about age of ERP system.

Bluelinkerp blog – When should you replace your ERP software brings an interesting diagram – the majority of ERP implementations is up to 7 years old. The chart based on data provided by Aberdeen study – Aging ERP – When your ERP is too old.

erp-system-age

This data point is not scientific, my I can predict that company is replacing ERP system every 7-10 years. This number is actually aligned with similar numbers I’ve heard from ERP resellers in the past.

It made me think about replacement cycle of PLM systems. I guess we can probably see a similar trend in the PLM market too. PLM systems are aging and we can probably discover lifecycle of PLM implementations. Sort of PLM recycling. I’ve been trying to find some information to support it, but didn’t find much references online.

Joe Barkai’s blog – Product Innovation Congress 2014 San Diego brings some interesting fact about PLM system replacements. Here is the passage from Joe’s blog.

There appears to be much activity in selecting, replacing and upgrading PLM software. Some were first time PLM buyers, but there were a surprising number of companies expressing dissatisfaction with the exiting solution and seeking a “better” PLM system. I did not conduct a structured survey, but anecdotally it appears that a good number of those in search of a PLM replacement are users of ENOVIA SmarTeam and ENOVIA MatrixOne.

My observation: The continued search for a “better” PLM system will continue to drive activity and put pressure on PLM vendors to deliver greater value in enhanced functionality, lower cost, faster deployment, and new delivery and ownership models. The move of reluctant PLM vendors such as Oracle Agile to offer a cloud delivery model is but one recent example and I except other PLM vendors are in the process of following suit. This dynamic keeps the door open for vendors such as Aras PLM that continues to challenge the hegemony of the incumbents.

That being said, buyers should realize that the PLM software itself isn’t a substitute or remedy for flawed and suboptimal product development processes. For each dissatisfied PLM user company you will find many others who are highly successful and are able reap the full potential of the very same PLM software. It isn’t the SW. It’s you. Don’t blame the vendor.

My hunch most of large manufacturing companies already made few PLM system implementations. They made mistakes and probably want to fix them. In addition to that, businesses and systems requirements are evolving. People turnover is another factor. Enterprise systems lifecycle can be triggered by new people coming to the role of managing enterprise and engineering IT. So, 7-9 years, is a good time period to make analysis, fix problems and re-think PLM implementation and strategy.

What is my conclusion? Understanding of PLM software replacement cycle and lessons learned from an implementation can help to build a better PLM industry eco-system. It is less about blaming vendors of companies for software problems. It is more about understanding of business, technologies and implementation needs. Just my thoughts….

Best, Oleg

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Cloud is an opportunity to set open standards for PLM

December 11, 2014

One of the topic that usually drives lot of attention in engineering software is standards. Or absence of standards. The story of standards goes back long way to CAD formats and multi-CAD universe. I’ve been touching topic of standards and PLM earlier. Catch up on my posts – CAD/PLM standards and toothbrush problem and PLM standards: […]

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Integration is holding back PLM cloud adoption

December 10, 2014

Cloud PLM adoption is growing. More PLM vendors these days are re-branding and re-building  product and software architecture to keep up with fast moving cloud trend. This year I can see significant shift towards discussion about technical aspects of cloud implementation. The devils is in details and differentiate between variety of cloud implementation options is […]

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More cloud PLM from Oracle and Aras. Are we in cloud rush?

December 10, 2014

Cloud PLM is a trending topic among software vendors these days. As I mentioned earlier in my post, the question these days is not why should we do cloud PLM, but “how” to make it happen. PLM vendors are choosing different strategies and technologies for their cloud PLM solutions. My attention was caught by two […]

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Identity management in future PLM platforms

December 8, 2014

Identity is a topic that raises lot of attention over the course of last few years. As a number of cloud application is growing, the question of management of identity and access rights online becomes more important. Federation was one of the topics that was discussed in my last posts about future PLM platforms. It […]

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How to migrate into “future PLM platform”?

December 5, 2014

One of the topics I touched in my yesterday post about future PLM platforms is platform migration. The ability of customer to make a move is significantly dependent on how existing environment can be migrated. You can catch up on some of my earlier thoughts about PLM migrations by reading the following posts - PLM upgrades, release […]

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Future PLM platforms: between a rock and hard place

December 4, 2014

Manufacturing landscape and technology are changing fast these days. Most of existing PLM platforms were developed 15+ years ago. Therefore, a question about new PLM platforms is getting more vocal.  What will be a foundation for that platform? How existing implementations  and technologies evolve? What will be a role of standards in a future PLM platforms. […]

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SAP has a magic technology to improve enterprise integration

December 4, 2014

Integration is a big deal. When it comes to enterprise organizations and specifically manufacturing companies of different kinds, enterprise integration is one of the major challenges that influence broad PLM adoption and ROI. Enterprise integration isn’t a simple problem to solve. It requires a diverse set of tools to support data exchange and process orchestration. PLM […]

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