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Collaboration is the name of the game today for many vendors. CAD and PLM vendors are included. Cloud technology is opening many new capabilities to collaborate and it is captured by existing players and newcomers. Sometimes, it happens so fast that it even create an internal competition. Image and Data Manager article Is OneDrive for Business the SharePoint alternative? speaks about interesting transformation that happens these days around file collaboration using Microsoft family of product. We knew about SharePoint capabilities to collaborate and share content (files). However, the new born child – OneDrive is growing fast and potentially can capture some spaces occupied by SharePoint today. I liked the following passage explaining how OneDrive takes on SharePoint:

OneDrive has a very simple interface (one that has been simplified further with recent updates). So it’s easy to upload your files and share them. You can also sync to all your devices, desktop, tablet, smartphone, giving you direct access to your content when you are online or offline. You even have mobile apps for iOS, Android, Windows 8 and Windows RT.

OneDrive even has this cool feature that allows you to grab a file from your PC even if you haven’t uploaded it to OneDrive. You have to turn that feature on, but it’s pretty nice to have.

SharePoint’s interface is OK, but it’s the subject of much debate. It’s not very intuitive to use and requires a fair amount of planning and organizing to get it set up in a way that’s easy for people to understand. Getting access to SharePoint on mobile devices has been spotty at best. Access via mobile (tablet or smartphone) has improved a lot with SharePoint 2013, but for those on SharePoint 2010, the story is not so good.

What I learned from this article is that file sharing, collaboration space is getting busy and competitive. Which brings me back to the discussion about specialized CAD collaboration tools. It made me think about some strategies CAD collaboration tools can use in order to avoid frontal competition with OneDrive, Dropbox and other file sharing and sync tools.

The name for this game is “layers”. Creating of layered architecture will allow to CAD collaboration tools to store data using OneDrive (or other storage and share service) and, at the same time, enhance it with the data layer providing rich access to CAD specific content, viewer and other CAD data relationships. Think about it in a similar way how Google organized information from web for you. You are not necessarily store data on websites and other locations. Nevertheless Google gives you easy access to this information via different services. The basic service is search. Enhanced services can provide a specific vertical slices of information (think about Google Flight as an example).

What is my conclusion? To separate vertical application and horizontal services is getting more and more important. It was true in the past to build right enterprise architecture, but it is getting even more important in the era of cloud services. To be successful, cloud vendors will have to learn how to recombine and reuse technologies provided by different players. File Share and Synchronization is a very good examples to start with. For CAD vendors it means to learn how to share data on OneDrive or Dropbox, but at the same time to provide vertical experience specific for CAD content. Just my thoughts…

Best, Oleg

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plm-industries

Let’s talk about PLM technologies. Err.. PLM is not a technology. Even more, PLM is even not a product. So, what is that? Business strategy? Product development politics? For the sake of this conversation let’s leave these debates out. I want to speak about PLM technologies that allow you to manage product data, CAD files, bill of materials, rich set of related information as well as processes around it. This technology came to us about 20-25 years ago first as a very hard-coded set of tools. You had to build it literally different for every customer. So, it supported only large customers that were able to pay for software, infrastructure and implementation. Later on, PDM/PLM turned into software toolkit. The next step in PDM/PLM technology evolution was called flexible data modeling. The first flexible (dynamic) PLM data modeling tools were released back in 1995-2000 and… not much changed since then.

So, what happened since that time? PLM vendors went to develop out-of-the-box and vertical industry solutions in a massive way. David Linthicum’s article Saleforce.com officially is out of ideas reminded me about the joke comparing technology vs. industry play. Here is the passage:

When you run out of new ways to provide innovative technology, you go vertical. That was the running joke among CTOs back in the day. It usually meant the market had reached the saturation point and you could not find new growth

I found this message very compelling to what happens in PLM industry. PLM vendors are trying to compete by providing more comprehensive set of data models, best practices, process templates. By doing so, vendors want to reduce TCO of PLM implementations. It is actually brings success and many customers are using these solutions as a starting point for their PLM implementation.

So, where is the problem? For most of the situations, PLM is still costly and expensive implementation. Services may take up to 50% of the cost.  Here is the issue – core PLM data and process modeling technology didn’t change a lot for the last 10-15 years. Data models, CAD file management, product structure, process orchestration. All these things are evolving, but very little. The fundamental capabilities are the same. And it is very expensive to develop solutions using these technologies.

You may ask me about cloud technologies. Cloud is the answer. But only partially. It solves problems related to infrastructure, deployments and updates. Cloud provides clear benefits here. However, from the implementation technology standpoint, it is very similar to what non-cloud solutions can offer. Another interesting passage from Infoworld cloud computing article explains what is the problem new SaaS/cloud products can experience when trying to displace existing vendors:

So many companies have tried this approach — many times — but most found limited success. I can’t help but think the same will occur here. Salesforce will soon discover that when you get into vertical industries, the existing foundation of industry-specific applications is difficult to displace. Although Salesforce can always play the SaaS card, most of those industry-specific providers have already moved to SaaS or are in the midst of such a move. That means SaaS won’t be the key differentiator it was when Salesforce first provided its powerful sales automation service more than a decade ago.

What is my conclusion? Efficiency and cost. These are two most important things to make PLM implementation successful. So, the technology must be improved. Data and model capturing tools, flexibility and ease of use – everything must be more efficient to support future of manufacturing processes. How to do so? This is a good topic to discuss with technology leaders and strategiest. I’m going to attend COFES 2014 in 10 days. I hope to find some answers there and share it with you.

Best, Oleg

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Cloud is raising lots of controversy in Europe. While manufacturing companies in U.S. are generally more open towards new tech, European rivals are much more conservative. Many of my industry colleagues in Germany, France, Switzerland and other EU countries probably can confirm that. Europe is coming to cloud systems, but much slower. I’ve been posting about cloud implications and constraints in Europe. Catch up on my thoughts here – Will Europe adopt cloud PLM? and here PLM cloud and European data protection reforms. These are main cloud concerns raised by European customers – data, privacy and specific country regulation. With companies located in different places in EU, it can be a challenge.

Earlier today, I’ve heard some good news about cloud proliferation in Europe coming from Microsoft. TechCrunch article – Microsoft’s Enterprise Cloud Services Get A Privacy Thumbs Up From Europe’s Data Protection Authorities speaks about the fact Microsoft enterprise cloud service meets the standards of data privacy in several European countries. Here is a passage that can put some lights on details and what does it mean:

But today comes a piece of good news for Redmond: the data protection authorities (DPAs) of all 28 European member states have decided that Microsoft’s enterprise cloud services meet its standards for privacy. This makes Microsoft Azure, Office 365, Microsoft Dynamics CRM and Windows Intune the first services to get such approval. The privacy decision was made by the “Article 29 Data Protection Working Party,” which notes that this will mean that Microsoft will not have to seek approval of individual DPAs on enterprise cloud contracts. In its letter to Microsoft (embedded below), chair Isabelle Falque-Pierrotin writes, “The MS Agreement, as it will be modified by Microsoft, will be in line with Standard Contractual Clause 2010/87/EU… In practice, this will reduce the number of national authorizations required to allow the international transfer of data (depending on the national legislation).”

Majority of PDM / PLM providers are friendly with Microsoft tech stack. Some of them are completely relies on MS SQL server and other Microsoft technologies. Most of them are supporting SharePoint. Now, these PLM vendors have an additional incentive to stay with Microsoft technologies for the cloud. It can be also a good news for manufacturing companies already deployed PDM/PLM solutions on top of Microsoft technologies and developed custom solutions.

What is my conclusion? The technological landscape these days is very dynamic. The time, one platform worked for everybody is over. In light of technological disruption and future challenges tech giants will be using different strategies in order to stay relevant for customers. Will European cloud regulation keep PDM/PLM players with MS Azure and other Microsoft technologies compared to alternative cloud technological stacks? How fast will take to other players to reach the same level of compliance? These are good questions to ask vendors and service providers. Just my thoughts…

Best, Oleg

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Why so hard to break PLM into components?

April 8, 2014

Product Lifecycle Management is not a software. It is business strategy and approach. One of my blog readers mentioned that in the discussion few days ago. Nevertheless, manufacturing companies are usually talking about PLM systems and platforms as something solid and unbreakable. The same picture you can see when looking on PLM online marketing materials […]

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How cloud PLM can reuse on-premise enterprise data?

April 7, 2014

Cloud becomes more and more an obsolete additional word to call every technology we develop I hardly can image anything these days that we develop without “cloud in mind”. This is absolutely true about PLM. Nowadays, it is all about how to make cloud technologies to work for you and not against you. For cloud […]

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CAD is half pregnant by cloud

March 31, 2014

The usage of cloud is growing every day. Started as an option to simplify collaboration and data exchange, it is proliferating into spaces such as backup, computation and many others. CAD and design are remaining one of the most conservative zone of the cloud and engineering software. Commonly agreed opinion – desktop is the best […]

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How to eliminate PLM customization problems?

March 28, 2014

I’m following strategic visions of the major PLM vendors 2014+ publication by Jim Brown – well known analyst and my blogging buddy for last few years. It started as a publication covering Autodesk, Dassault, PTC, Siemens (vendors listed alphabetically). Last week, Jim expanded his PLM vision publications by adding Aras Innovator to the list. Navigate here to […]

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Will cloud PLM go shadow?

March 25, 2014

If you are not familiar with the term “Shadow IT”, you better do. The term is not completely new. Wikipedia article provides definition and speaks about different aspects of shadow IT activities. Interesting enough it has both negative and positive aspects. While (in general) usage of non-approved by IT applications is not a good things, it […]

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How not to miss PLM future?

March 23, 2014

The world around us is very disruptive these days. Nothing stands still. You cannot stop innovation and progress. Engineering and manufacturing software is not fastest changing domains. It explained by slow changing process, high level of complexity in product development and significant capital investment manufacturing companies made in existing PLM and other enterprise software. Nevertheless, […]

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Why PLM vendors might decide to beat Amazon?

March 21, 2014

Amazon is an absolutely marketshare leader in cloud computing. Because “cloud” is such a big and vague word these days, we must clarify and say “public cloud”. So, you may think for most of us, cloud is equal to Amazon. AWS EC2 allows us to spin new servers quickly and provide great services to everybody […]

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