A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

What PLM can learn from twenty years of Amazon AI

What PLM can learn from twenty years of Amazon AI
Oleg
Oleg
22 July, 2019 | 5 min for reading

Artificial Intelligence and Machine Learning are making headways these days in many industries. PLM marketing materials are full of AI and ML buzzwords and promise how new tech will make it different. Analysts and researches are coming to outline PLM and AI opportunities. This is just one the many examples – When PLM Met Machine Learning: The Beginning of a Great Relationship (https://www.aberdeen.com/featured/blog-when-plm-machine-learning-meet/)

With the advent of big data, machine learning is introducing new ways to manage everything in manufacturing, from customer engagement, to design, to supply chain, to product lifecycle management.  The combination of big data and advanced, inexpensive computing systems has made machine learning practically in real work applications, and it is driving positive change as part of the product development lifecycle. Today’s Best-in-Class companies are embracing a new era of digital transformation in product lifecycle management (PLM). Among their quiver of Fourth Industrial Revolution tools is machine learning, which they are almost 2x more likely to implement than All Others (Figure 1).

While I like all these promises, I also think that something is missing. The usual pitch of ML sounds like this – PLM collect a lot of data and now we can use it for A, B, C. A typical things in the list are decision making, productivity, cost, etc… All these things must be improved anyway. To say using data is easy. Actually to use data, so it will bring results is actually much harder.

In such a context, I like to bring Amazon as an example of the company that started to use data a long time ago and developed impressive results. Recent Forbes article – The Twenty-Year History Of AI At Amazon can give you an idea of how Amazon is using data.

Read the article and draw your conclusion. My personal favorite is this one.

Machine learning is used throughout the entire customer’s search journey on the site through features such as predictive typing, optimising page layouts, or recommendations and suggested products. In fact, without machine-learning powered search, hyperpersonalized offers are not feasible. Hyperpersonalization is the AI-enabled concept of treating each person as an individual and not generally bucketing them into certain groups. Using machine learning, companies can develop a unique profile of each individual, and have that profile learn and adapt over time for a wide variety of purposes including displaying relevant content, recommending relevant products, website layout optimization and more. Amazon was one of the very early adopters of this pattern applying personalization and making recommendations across Amazon for the last twenty years. AI-enabled systems are increasingly blurring the lines of search and recommendation systems. By knowing which customer is searching for what product, AI will now make it possible to bring up very relevant results and personalized recommendations.

This example shows that AI and ML aren’t happening overnight. To learn how to use data, to find the right data and to figure out how to use it in specific applications and tools. In such a context, I found Siemens PLM NX experience with ML really interesting.

It made me think, to make AI and ML in PLM possible, the long program is needed. Such a program will need to build a model of product data, to bring product data out of existing legacy places, databases, storages; to connect data from silos and build use cases to empower future PLM features. Here are some of these possible features.

1- Generative part supply sourcing

We can see many examples of generative design these days, but 70% of components are actually not designed by the same company, but outsourced or purchased. To have a tool capable to plan sourcing strategy for global manufacturing can be an interesting opportunity. Think about Amazon for manufacturing…. well, it sounds a buzzword, unfortunately. But, the question of where to order parts and how much to pay is probably not.

2- Cost prediction

One big question for all time in manufacturing. What will be the cost? Cost prediction can get ugly and sometimes very not predictive. There are so many factors. Imagine a manufacturing company working for custom machine manufacturing. How to get 20 years of order history and predict the manufacturing cost of a new machine

3- XaaS – everything as a service

The manufacturing industry is moving to “everything as a service model” (XaaS). To be able to predict the cost of maintenance is becoming as critical as to know how much will cost to build a machine. So, from “nice to have, it is not my problem”, maintenance is becoming one of the most important IT requests. Try to figure out maintenance cost by analyzing the history of the data. Or try to get all the data together first.

What is my conclusion? PLM vendors and manufacturing companies should learn how to thread data. How to go beyond a “single version of truth” mantra. AI and ML in manufacturing is not a task for junior achievers bringing math club knowledge to manufacturing. It starts from the systematic use of data, building use cases and restructuring IT functions and PLM software to consume such data. Can be a tricky task and it can take time. 9 Women Can’t Make a Baby in a Month. Just my thoughts…

Best, Oleg

Disclaimer: I’m co-founder and CEO of OpenBOM developing cloud-based bill of materials and inventory management tool for manufacturing companies, hardware startups, and supply chain. My opinion can be unintentionally biased.

Recent Posts

Also on BeyondPLM

4 6
14 January, 2016

I think, most of PLM people are considering the fight about pros and cons of intelligent numbers is only related to...

12 January, 2010

Do we need to kill a mouse? Josh Mings, author and founder at SolidSmack mentioned middle-mouse button wheel as one...

24 October, 2013

Manufacturing is going global. This is not about the future. This is a reality of all manufacturing companies today. So,...

11 July, 2012

Let’s talk today about databases and database technologies. Everybody these days understands what is that… Database technology became an essential...

31 December, 2021

CIMdata’s article The Top Ten PLM News Stories of 2021, brought analyst perspectives on what is trending in the PLM...

17 June, 2009

I was thinking about future options for PLM in today’s computing environment. In this fast moving world, there are two...

23 October, 2011

I want to talk about an interesting segment of cloud technologies – cloud SQL Database. For the last months, I’ve...

15 May, 2009

I think everybody cares about Bill of Materials. This is quite fundamental for everything we do in Product Lifecycle Management....

3 April, 2012

Disclosure: As a co-founder of Inforbix, I understand that my opinion about PLM Data and Search can be unintentionally biased....

Blogroll

To the top