PLM was around for the last 2-3 decades slowly evolving from CAD file management to more sophisticated database to manage all product information. From a simple database, it grew up to a bigger database and more complex data models and system to manage processes. Currently PLM vendors pulling forward to even more sophisticated systems, but the challenge of the current paradigm is becoming more and more obvious – such a model of a “database holding the information for a company” doesn’t scale in a modern manufacturing world – a paradigm shift is underway.
A traditional concept of a monolithic PLM system as the sole repository of product data is giving way to a more dynamic and interconnected approach where information can be located anywhere and connected and orchestrated while providing a decision solution focal point. This transformation is reshaping how companies manage their product lifecycles, collaborate across global value networks, and drive innovation. In one of my earlier articles, I call this model Digital Thread as a Service.
The Limitations of Traditional PLM Software Model
For decades, PLM systems have served as the backbone of product development, offering a centralized architecture (typically SQL single database with object relational modeler) for managing design data, engineering changes, and product configurations. However, as the complexity of products and supply chains has increased, the limitations of a traditional PLM approaches and tech have become apparent:
- Monolithic Architecture – Monolithic systems with vertical dependencies and lack of granularity
- Limited Interoperability – Proprietary formats and database schemas makes data exchange hard.
- High Integration Costs – Custom integrations are expensive and require ongoing maintenance.
- Weak Data Synchronization – Batch processing leads to outdated or inconsistent information.
- Data Silos – Poor alignment between EBOM, MBOM, and other enterprise systems.
- No Cloud-Native Support – Single-tenant models limit real-time collaboration.
- Supplier Collaboration Limitations – Sharing data with external partners is challenging
- Limited AI & Analytics – Old SQL architecture limits access to modern AI tools
To sum up, existing PLM architecture, although mature and well developed, is becoming a factor of slowness when it comes to support of companies looking how to organize their work in an agile and connected fashion.
The Rise of the Digital Thread
The concept of the Digital Thread originated in the aerospace and defense industries, particularly through initiatives by the U.S. Department of Defense (DoD), NASA, and DARPA. It was introduced to create a seamless flow of data across the entire product lifecycle, from design to manufacturing to maintenance. It was a part of Model-Based Systems Engineering (MBSE) and Model-Based Enterprise (MBE), and it aimed to improve traceability, interoperability, and collaboration between systems. With the rise of Industry 4.0, the Digital Thread expanded beyond its roots and addresses the challenge of data silos by ensuring continuous connectivity between engineering, production, and operations.
What is a Digital Thread?
A digital thread serves as a communication backbone, linking multiple systems and providing an integrated flow of product data throughout its lifecycle. It creates a coherent set of product information enriched by data from diverse domains and disciplines, extending beyond the internal functions of an organization to incorporate suppliers, partners, and customers.
Key Capabilities of the Digital Thread
These four elements of digital thread implementation: visibility, collaboration, traceability, integrations.
- End-to-End Visibility: The digital thread provides a comprehensive view of product data, process data, and relationships across the entire lifecycle.
- Real-time Collaboration: It enables seamless communication between stakeholders, regardless of geographical location or time zones.
- Enhanced Traceability: Digital threads improve the traceability of product data and changes throughout the engineering lifecycle, facilitating compliance management and risk reduction.
- Supply Chain Integration: By connecting data across the whole supply chain, digital threads enhance resilience and responsiveness.
While you can see digital thread implementations done differently with many systems, I can see how we can bring the next step in the evolution of digital thread and take a leverage of new data management technologies, cloud tech, and SaaS business models.
Product data management is tightly connected to multiple business processes. Making it easy integrated with on demand flexible data network capable to streamline product development can be extremely beneficial. Existing traditional product lifecycle systems were focusing on centralized data management and not allowing easy methods to build data networks.
Digital Thread as a Service: The Next Evolution
As organizations recognize the power of the digital thread, a new model is emerging: Digital Thread as a Service. This approach shifts the focus from maintaining a single, monolithic PLM system to creating a flexible, cloud-based service that connects disparate data sources, companies, and people.
What is the difference of Digital Thread as a Service?
Digital Thread refers to the seamless flow of data across a product’s lifecycle, connecting design, engineering, manufacturing, and operations. It ensures data continuity across systems like PLM, ERP, MES, enabling better traceability, automation, and decision-making. Traditionally, companies build their own Digital Thread by integrating various enterprise systems, often requiring custom connectors, middleware, and manual synchronization.
Digital Thread as a Service (DTaaS), on the other hand, is a cloud-based, managed solution that provides a flexible data model and on-demand connectivity between product lifecycle data sources. DTaaS offers flexible data models, multi-tenant service, API-driven, and event-based architectures that streamline data connection multiple systems and organizations. This approach reduces IT overhead, improves real-time collaboration, and enhances digital transformation efforts without requiring companies to make direct integrations and sync data between systems.
Benefits of Digital Thread as a Service
- Flexible Data Model Instantly available for companies allowing integrate existing tools without being locked into a single vendor’s ecosystem.
- Collaboration Across multiple tools and organizations: Digital Thread as a Service facilitates seamless collaboration across organizational boundaries, enabling global value networks.
- Scalability: Cloud-based services can more easily adapt to growing data volumes and support large scale operations and data volumes.
- Data Insight and Analytics: Breaking data silos and enabling global data insights, it can provide a unique perspective on problems and solutions with applying modern data models and decision support tools.
While the concept of the Digital Thread has been gaining traction among manufacturing companies, scaling it effectively can significantly enhance the value of connectivity. The network effect and network-based data organization have been key drivers of business success over the past 20 years. Digital Thread as a Service (DTaaS) could be the missing link, enabling engineering teams and manufacturers to move beyond sharing Excel and CAD files or relying on proprietary system integrations.
What is my conclusion?
The ideas of PLM became mature over the course of the last 20 years. At the same time, we learned about the value of two things – network effect and data connectivity at scale. These two things contributed to the success of many businesses. Therefore I can see an opportunity for DTaaS to make the next PLM revolution.
The transition from thick PLM to Digital Thread as a Service represents a fundamental shift in how organizations approach product lifecycle management. By embracing this new paradigm, companies can break free from the constraints of traditional PLM systems and unlock new levels of collaboration, innovation, and efficiency across their global value networks.
As we move forward, the success of PLM will no longer be measured by the robustness of a single platform, but by the strength and flexibility of the digital threads that connect people, processes, and data across the entire product lifecycle.
Just my thoughts…
Best, Oleg
Disclaimer: I’m the co-founder and CEO of OpenBOM, a digital-thread platform providing cloud-native collaborative services including PDM, PLM, and ERP capabilities. With extensive experience in federated CAD-PDM and PLM architecture, I’m advocates for agile, open product models and cloud technologies in manufacturing. My opinion can be unintentionally biased
