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Integrations

PLM and the Evolution of Integration

by Oleg on January 10, 2012 · 9 comments

Integration is an important topic in PLM. Few days ago, I was reading Aras’ blog – Understanding of integration and federation with Aras. This blog caught my attention by review of different PLM integration patterns – integration and federation. Despite the fact, it is a very self-promotional message, I found the following passage in the post interesting -

As an open architecture, Aras has a number of obvious advantages… open APIs, a published data dictionary, an openly available data model… but that’s really only half the story. From a technological perspective we’re using a more modern approach, a pure Web services approach, that’s designed from the ground up with technology agnostic interoperability in mind. Aras can be “connected to”, “integrated with” and “wrapped around” anything you’ve got whether its based on IBM, Oracle, SAP, Linux, Unix, Microsoft or even Progress… or “all of the above”. We even include a Web services wizard in our Solution Studio out-of-the-box. We understand that global companies need to combine data from numerous existing systems in order to manage products across the lifecycle, and we recognize that a highly robust, scalable and secure Federated approach is the right way to do this; both from a technical and a business perspective.

PLM and Integration

Aras blog made me think about various aspects of PLM integrations. Integration is an important topic in every manufacturing organization. It is almost obvious. You have multiple departments, organizations, subcontractors, offshore manufacturing, supply chain and many other things. In order to run your product development and business processes, companies are implementing multiple systems – engineering, manufacturing, supply chain, etc. I believe, the time when people believe to satisfy everybody’s need with a single system is over. It is costly and not efficient. So, you have CAD, PDM, PLM, ERP, SCM, CRM and zillions of other applications in your company that need to work together somehow.

Historically, Product Lifecycle management story is tightly related to integration. PLM system sort of “sits in the middle”. Regardless on what PLM vendor you plan to rely, the question of how to integrate you PLM system (aka data in PLM system and processes) with the rest of the world in your organization will come. The priority might be different – supply chain system, design subcontractors or ERP/MRP integration. Nevertheless, no matter what – you will have to solve your “integration problems”.

Integration Maturity Levels

Integration in PLM has a long history of development, started from highly tailored solutions to various attempts to deliver integration solutions relied on different types of integration infrastructure / middleware.

Level 1: Data Exchange

At this level, the focus of integration is to deliver a solution that can take data from one system and place it in another system. The typical example is batch data exchange between PDM and ERP systems. The scenario, which is probably most widely implemented is to transfer bill of material from PDM to ERP. There are few more scenarios in this area. In my view, the majority of integrations in the industry today are focused on the delivery of data exchange. Vendors are offering some standard capabilities. However, most of the solutions are customized and tailored to a need of a specific customer. The main advantage of this type of integration is simplicity (import/export). The disadvantage of this type of integration is related to the limitation of processes beyond importing and exporting data.

Level 2: Application Integration

I can define two major types of application integration – point-to-point and middleware based integration. Companies started to approach this level of integration in order to deliver an additional logic into integration rather than just import / export data. Technological foundation for integration is delivered by the level of API available for each system. API can vary and depends on application and system architecture. During the past few years, I can clearly see a tendency to converge towards various flavors of web technologies. Point-to-point solutions are focusing on creating an integration logic between two applications. Middleware-based integration was focusing on leveraging integration platforms (i.e. BizTalk, WebSphere, etc.) to connect applications. The cost of middleware integration is higher, but eliminates the complexity of multiple application integration. Today, most of the application integration can be delivered by service providers and IT departments of big customers.

Level 3: Data Federation

One of the biggest problems in application integration is high level of dependencies on the actual systems, system architecture and versions. The tight link between application and data is not allowing to re-use data beyond application version, increase the complexity to establish cross application and cross-department processes. In my view, data federation is the level of integration maturity where data will become self-descriptive and potentially encapsulated from application logic and application versions. This is where the future will take us. I will elaborate on this later in my blog.

What is my conclusion? I think, integration will become even more important soon. There are two main reasons for that. 1- companies are looking how to deliver business solutions faster. To create three years integration project is not an option anymore. Information availability for decision making or cross-department optimization  becomes a top priority for IT. 2- cloud. Many companies are checking how to deliver hybrid on-premise/cloud solutions. To take data exchange to cloud won’t an option any more. Future data federation will introduce new web technologies to PLM integration space. Just my thoughts…

Best, Oleg

Image by Salvatore Vuono / FreeDigitalPhotos.net

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PLM Integration Failures

by Oleg on January 12, 2011 · 457 comments

There is one topic that always raises lots of controversy, in my view. I’m talking about integrations or even more specifically about PLM-oriented integration. I want to point on the following two articles I posted previously about PLM integrations:

PLM Integration Gotchas
PLM and Enterprise Integraton Game

I read Reasons Why PLM Integration Fails?” article on the To-Increase Blog. To-Increase is a company from Netherlands specialized in the Microsoft ERP products (Dynamics AX, NAV) and product configuration software e-Con. Read the article and make your opinion. The author is making point of various difficulties related to PLM integrations. Here is my favorite passage from this article:

A fundamental risk within any manufacturing firm, especially a firm with global operations, is the risk of information becoming siloed within individual teams.  For example, if information concerning a flaw in the development of a product is available only to the engineering team, and kept from marketing, there exists the risk of gearing up product launch tasks too quickly – resulting in wheel spinning at best, and a significant loss in resources at worst.

In much the same way, if a PLM system is implemented – but not integrated with all other systems related to manufacturing processes (think Enterprise Resource Planning systems, think Manufacturing Execution Systems) the risk exists for information to be siloed in one system.

PLM Integration and Competition

The focus on PLM-ERP integration is interesting. These are two systems that very often are trying to establish a dominance in a culture of manufacturing organization. Are you PLM or ERP driven? What system “owns” Part or Bill of Material information? Who is authoring BOM? I heard such statements many times when talked to customers during implementations. The integration point is often becoming a competitive advantage. I believe for To-Increase, integration with other products is a significant competitive advantage. Manufacturing companies would be thinking twice before deciding what system will drive product development processes.

Partners and Integration Complexity

Integration is not a simple task. You need to have enough technological and process knowledge as well as technical skills to make it work. In addition, you can rarely find two identical integration solutions. Each manufacturing company will have their own practices, systems and specifics. Because of such high level of complexity, software vendors are trying to rely on partners to deliver an integration solution for end users.The ability of partner to deliver integration becomes a key in the ability to make an overall implementation success .

PLM Integration is hard. The cost of implementation is high. The cost of failure is even higher. Vendors are pushing integrations out of the scope of their deliveries. Partners, like To-Increase can provide a significant advantage by helping customers to make integration happen. These are realities of ERP and PLM implementations.

What is my conclusion? Integrations are important and complicated at the same time. Integration failures are one of the main sources that can cause overall implementation failure. The reliance on services increases the implementation cost and creates dependency of customers on implementation services. I’d expect software vendors to re-think their view how they can make integration easier. It can be a significant differentiation factor in future PLM systems. Just my thoughts…

Best, Oleg
Freebie. Nobody paid me to write this article.

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I’m continuing discussions about PDM vs. PLM differences. I’d encourage you to take a look on my previous two posts related to this topic: PDM vs. PLM: A Data Perspective and PDM vs. PLM: A Process Perspective. My next PDM vs. PLM comparison perspective is related to integration of PDM or PLM systems with other systems and processes in the organization.

Data Integration

For PDM, data integration is the ability to facilitate an exchange between product data records, other enterprise systems and extended value chain. The most important and very important is PDM – ERP integration. This integration provides an ability to exchange design, engineering and manufacturing data. For PLM data integration becomes more complex and needs to include an expanded set of application and data sources. Some of advanced data integration PDM projects are including federation of data between multiple systems.

Process Integration

When it comes to business and product development processes, both PDM and PLM systems can provide a significant influence on how these processes can be integrated. However, PDM system process scope is normally very limited and stay focused on engineering documents and data lifecycle. PLM process integration is focused on the ability of PLM system to have a tight connection with other processes. Most of them are ERP-based. These days it becomes more and more important to have a good support for integrated product development processes.

Social Integration

This is a relatively new aspect of integration and related to the ability of PLM system to be integration with social tools. Tools like Yammer and others represent a new class of tools helping people to collaborate in the organization. Both PDM and PLM systems provide a context for social tools. It can come as data about product, documents, changes processes and everything that helps to identify social relations. For example, by analyzing your product data, you can find a knowledge expert in a particular filed in the organization, etc.

What is my conclusion? Both PDM and PLM systems have very strong dependencies on their ability to be integrated within an organization. PDM integrations are oriented on data access, transfer and interoperability between a PDM and other systems in the enterprise. Data is the main focus of PDM integrations. It may include a different type of data integrations – manual, automatic, one or bi-directional data integrations. However, when it comes to Product Lifecycle Management, the scope of integration can be increased dramatically. It may include integration of processes, people and social context. The ability of PDM and PLM system to integrate what other systems and people in the organization are critical for successful implementations. This of the reasons why PDM and PLM implementations often fail in the organization.

Update: When I finished this post, I found a new post coming from Kurt Chen of Technology Evaluation Center. Kurt posted PDM vs. PLM A Matrix View. What I liked in Kurt’s post is the focus on the PDM/PLM need to be integrated with people and system in the manufacturing organization. This is a key in my view.

Best, Oleg

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CAD-BOM Missing Links

August 19, 2010

One of the interesting trends in PLM is growing amount of vertical integrations between components of PLM portfolio. The following Razorleaf blog cough my attention earlier this week- Dassault Published V6R2011. Here is the quote from Razorleaf blog pointing on the specific feature that, in my view, requires additional discussion: Generative Drafting Associative EBOM – [...]

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