Posts tagged as:

Future

plm-componentizing

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 and brochures. Despite recent changes in broad PLM acceptance and value proposition, companies still see PLM as a software mostly for engineering domain or driven by engineering IT. One of the dreams many PLM vendors developed for the last decade is how to reach the C-level management such as CIO and engineering executives. In other words, how to reach ERP level of acceptance and awareness.

Earlier today, my attention was caught by Toolbox.com article about modern ERP trends. Navigate to read ERP Trends: Shifting from Big ERP Systems to Componentized ERP Environments.  Cloud is changing the face of ERP. The technology is breaking ERP into pieces. One of the results – two tiers ERP configuration. Here is the explanation I captured from the article.

Because of the coinciding innovations in cloud technology, instead of deploying and implementing traditional ERP infrastructure, organizations started adopting a two-tier, or hybrid, ERP model. Two-tier ERP is a method of integrating multiple ERP systems simultaneously. For instance, an organization may run a legacy ERP system at the corporate level while running a separate ERP system or systems, such as cloud ERP, at a subsidiary or division level for back-office processes that have different requirements. To facilitate the adoption of the two-tier methodology, vendors increasingly opened core databases and application programming interfaces and provided customization tools, thus spurring the advent of self-contained, functional ERP components or modules.

So, what does it mean for existing and future PLM strategies and products. More specifically, it made me think about the possibility to break large and heavy PLM platforms into sets of re-usable components. ERP componentizing example speaks about splitting ERP system into modules such as – supply chain, financial, management, human resources. So what potential PLM split can look like? I can see two possible ways here – business process and lifecycle. The first one is something probably we can see a lot in existing PLM platforms. Requirement management, Design Collaboration, Change Management, NPI, etc. I’ve been thinking about Lifecycle as an alternative approach to the traditional business process oriented approach. Lifeycle approach means to develop applications to serve people with their everyday tasks based on maturity of product in the development or services. Think about manufacturing assembly line. Different tools and operations are applied to manufacturing product to bring it to life. Now think about PLM and software tools. PLM components will be used to create product (actually product data and related information).

Toolbox article also speaks about difficulties of componentized approach. The main one is a potential growth of TCO because of the need to integrated data coming from different modules. Here is the passage I specially liked:

The data from the second-tier cloud ERP or modules typically require normalization to integrate with the legacy ERP system at the corporate level. Although direct cost is associated with master data management to ensure consistency and no redundancy, by extending the life of the legacy system, the intention is to reduce the total cost of ownership (TCO) while meeting additional needs for flexibility and functionality. However, the shorter duration of implementing and deploying a two-tier ERP model can actually lead to increased TCO if the indirect costs, such as training, hiring staff, and vendor support, are not taken into to account, as well.

The same problem will arise if we try to break PLM into components. With no solid data foundation, ability to bring and integrate various PLM components will be questionable. The integration cost will skyrocket. Compatibility between PLM components versions will make it even harder. Nevertheless, I can see growing business requirements, customers’ demand and shorter lifecycle for software products as something that will drive future PLM technological changes. Componentizing will be one of them.

What is my conclusion? To break large and heavy PLM suites into configurable and flexible components is an interesting opportunity to satisfy today’s dynamic business reality. However, two fundamental technologies are required to make it happen – scalable open data platform and reliable integration technologies. Just my thoughts…

Best, Oleg

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How not to miss PLM future?

by Oleg on March 23, 2014 · 6 comments

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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, to think PLM will stand still is probably a mistake that potentially can happen in the community PLM vendors and experts.

I’ve been reading Google CEO Larry Page Spoke At TED article. Unfortunately, TED didn’t stream his talk, so everything based on twitter stream. My favorite passage was related to the Page’s explanation about why companies are failing. Here is the quote:

“The main thing that has caused companies to fail, in my view, is that they missed the future,” Page said.

larry-page-why-companies-miss-future

The article made me think about what potential “future” that PLM companies can miss today in our fast moving engineering and manufacturing software ecosystem. So, I decided to look into my ‘crystal ball’ today and pickup top 3 things that potentially can be missed by PLM vendors:

1- Downturn in premium price of PLM software

The price of PLM software is a challenging factor. Which is true, in general, about enterprise software. I think, customers are worrying about what will be total cost of ownership for PLM software. Result – huge interest to develop ‘predictable business models’, which include scalable parameters identifying how to pay for PLM software. The strategic mistake that can be done by PLM vendors is to miss the point where new TCO models will be conflicting with existing business and revenue models.

2- Switch from data ownership to openness and data share business values

Openness is another heavily discussed topic in engineering software. The demand of customers is not be locked on a specific vendor. The situation when company is using software from different vendors is not rare and if we include supply chain scenarios, openness requirements is probably one of the most critical. However, most of business models today are fundamentally assuming customer lock on a particular type of software, file types, databases, etc. Technology and business disruption in this space can remove lock and become a surprising factor for existing vendors.

3- The importance of vertical integration.

Integration of enterprise business and information systems becomes more and more important. Manufacturing and production environment is moving towards digital forms of mass customization. The involvement of engineers into the process of manufacturing is getting more tight. The future cost saving is in even deeper optimization between product design and manufacturing. By missing the importance of these aspects existing vendors can be outperformed by modern cloud (and not only) vendors and newcomers.

What is my conclusion? Some people calling what happens these days in manufacturing as the next industrial revolution. I don’t want to put specific stickers. Nevertheless, engineering and manufacturing business is getting even more competitive. Internet, cloud, diverse competition, cost pressure and new business models – this is only short list of disruptive factors that will be very important in the future of digital manufacturing. Just my thoughts…

Best, Oleg

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PLM Software and Open Source Contribution

by Oleg on February 11, 2014 · 0 comments

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Open source is a topic that raised many controversy in the last decade. Especially if you speak about enterprise software. The trajectory of open source software moved from absolute prohibition to high level of popularization. In my view, the situation is interesting in the context of PLM software. The specific characteristic of PLM is related to a very long life span of the software. PLM system developed and deployed 10-15 years ago are continue to be in active production mode by many customers. However, the question of how PLM software can leverage the value of open source software remains open.

Readwrite article Open Source Should Thank These Five Companies put an interesting perspective of the value of open source software for enterprise community. In my view, the article brings  examples of software components that can be re-used by enterprise vendors. However, technology is not everything. People and culture is another important element of open source contribution. Here is my favorite passage from the article:

“To encourage excellence, you need to do things out in the open,” Kreps [Jay Kreps of LinkedIn] said. “Engineers are like everyone else—if everybody’s watching, they want to look good. Otherwise we’re building a crappy internal tool that’s just good enough to meet our immediate needs.”

I have to admit, open source initiatives didn’t start in web companies only. During the past decade we’ve seen significant contribution to open source made by major software vendors like IBM and some others specifically if you speak about massive investment in Linux projects. Another Readwrite article is trying to establish balance in open source contribution debates. However, the main conclusion remains the same – web companies these days leads the way for open and innovative technological development. I found conclusion interesting:

“…old school” companies like IBM don’t get the credit they deserve. But it is the Web companies that are building data superstructure on the Internet”.

I found the comment about data superstructure  important in the context of our PLM software discussion. The replacement of Windows servers and other backend infrastructure by Linux and other open source software is just a matter of time. Also, I believe this is an active process for many enterprise IT organizations these days. However, the question of data management foundation for future PLM software remains hugely open.

What is my conclusion? Open source can re-shape the landscape and future technological trajectories of PLM software. Technologies polished and contributed by web giants to open source community can provide a solid foundation to existing PLM vendors and startup companies to develop future foundation of scalable enterprise product data management solutions. Open culture combined with public quality acceptance can be another major shift that to differentiate future enterprise software developers. Just my thoughts…

Best, Oleg

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The future of PLM Glassware?

April 19, 2013

Technological predictions are tough and nobody wants to make them. Back in 2010, I came with the following post – Who Can Generate 3D/PLM Content For Apple iPad? Back that time, the value of iPad was questioned by many people. Speaking about manufacturing companies, people were very skeptical by the ability of iPad to bring […]

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Interoperability will play a key role in a success of future CAD/PLM

January 26, 2013

Data. Conversion. Interoperability. Translation. The discussion about these topics is endless in CAD/PLM world. Customers are looking for interoperability between different product versions, competitive products, data models, data formats, databases and geometrical kernels. Customers were always first impacted by problems of interoperability. The lifecycle of engineering and manufacturing work is longer than typical lifecycle of […]

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PLM: Ugly vs. Cool

April 8, 2012

Do you think PLM software must be cool? More than two years ago, I posted FREE and COOL trends in CAD/PLM. I’m observing an increased amount of discussions about “PLM coolness” in the past few weeks. The release of PLM 360 by Autodesk just amplified the interest to the “cool” side of PLM. In my […]

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How to re-invent “PLM collaboration” world?

March 23, 2012

What do you think about “PLM Collaboration”?… Yes, I can hear you – boring. However, what if I tell that collaboration can be cool again? Over the past year, I was tracking few vendors investing and playing with a collaboration topic. Today I decided to give you my perspective on what I believe will re-invent […]

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Dassault V6, 3D Experience and “After PLM” Party

February 28, 2012

You are probably familiar with the following statements “beavers do what beavers do“. I’ve got the confirmation of that last month when visited PTC HQ in Waltham, MA. It was amazing to see how PTC is focused on moving PLM story to the higher level of maturity. At the same time, one of the PTC […]

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Beyond PLM Panel Discussion on ACE 2011

April 27, 2011

Earlier today, I was running Beyond PLM panel discussion on ACE 2011. I’d like to say my special thank you to Peter Schroer, Aras CEO; David Sherburne of Carestream Health and Vasco Drecun of Siemens IT Solutions. We had a great triumvirate of a vendor, customer and IT/service people. I hope video of this panel will be available soon. The context […]

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PLM and Cloud – Hold the Promise?

December 18, 2010

Cloud is trending. This is not a first time I’m touching the topic of cloud. During the past days, I had lots of healthy debates about different topics around PLM, Technologies and Innovation. Surprisingly, the topic of SaaS and Cloud didn’t come much into this discussion. Israel wasn’t cloudy during the day of COFES Israel […]

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