PLM: The Foundation for Enterprise Digitalizationcontent.pi.tv/events/PI Berlin 2017/presentations/1138...PLM solutions are evolving into platforms that enable a foundation upon which

Copyright © 2017 by CIMdata, Inc. 1

www.CIMdata.com

Copyright © 2017 by CIMdata, Inc.

Global Leaders in PLM Consulting

PLM: The Foundation for Enterprise Digitalization28 February 2017—Berlin, GERMANY

Peter A. Bilello, President Email: [email protected]: +1.734.668.9922

@PITVtweets

#PIOC


Our Mission...Strategic management consulting for competitive advantage in global markets

CIMdata is the leading independent global strategic management consulting

and research authority focused exclusively on the PLM market.

We are dedicated to maximizing our clients’ ability to design and deliverinnovative products and services through the application of PLM.


Digitalization is the logical next step in representing anything and everything in 1s and 0s—the next revolution

Digitalization is moving from a fuzzy concept to the newest data-driven derailment of the status quo

Digitalization is transforming products from physical goods and tangible services; in many cases data is the “product”

The rate at which products and services are being bought and installed for the data they generate or collect is increasing

New sources of information are speeding up innovation and product development

Key Takeaways PLM: The Foundation for Enterprise Digitalization (1 of 2)


In a many ways, we, meaning the PLM professional, were here first…the digital tools used to enable the product lifecycle were the beginnings of this digitalization wave Today, what PLM does and can do is essential to meeting these broad-

based digitalisation objectives

The emergence of the product innovation platform has the potential to not only enable the end-to-end digitalization required to be successful, but to thrive

Key Takeaways PLM: The Foundation for Enterprise Digitalization (2 of 2)


Digitalization: the administration of digitalis (used to treat congestive heart failure) until the desired physiological adjustment is attained—Merriam-Webster

Digitalization: the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business—Gartner

“Digitalization” Let’s first get a few things straight

I think we should go with the second definition…


“Digitalization…the use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.”

“Digitization is the process of changing from analog to digital form.”

Digitization vs. DigitalizationWhat’s the difference and does it matter?

Think “knowledge management” of the 1990’s…


Scanning and digitizing paper documents into images is losing its value and its rationale As containers for today’s massive information flows, images already fall short

of the enterprise’s true needs

The mass movement from documents to data is underway

Digitization Will Not Cut ItA clear need to move from files to data is emerging


For many, digitalization has been a fuzzy concept Digitalization is the logical next step in representing and managing anything

and everything in 1s and 0s

An end-to-end approach to data and process management

At the extreme techno-boundaries, digitalization is transforming products from physical goods and tangible services to data

In today’s world of nearly total digitalization, products and services are often bought and installed for the data they generate or collect—in some areas this has gone on for years

Digitalization: An IntroductionThis requires us to think and action differently—isn’t not about simple automation

We are witnessing the emergence of digital enterprises…


From analog to digital to enabling a new digital business model

A Simple Example…The digitalization of music media and business models


Today’s Digital EnterpriseThe very definition of products and services is changing significantly

Chui, Michael and Manyika, James, “Competition at the digital edge: ‘Hyperscale’ businesses,” McKinsey Quarterly, March 2015

Digitization is upending many core tenets of competition among

industries by lowering the cost of entering markets and providing

high-speed passing lanes to scale up enterprises.

At the extreme are hyperscale businesses that are pushing the new

rules of digitization so radically that they are challenging

conventional management intuition about scale and complexity.

These businesses have users, customers, devices, or interactions

numbered in the hundreds of millions, billions, or more. Billions of

interactions and data points, in turn, mean that events with only a

one-in-a-million probability are happening many times a day.


Digitalization is not the starting point, but rather the next step

Digitalization leverages existing and future technologies

Enabling digitalization requires end-to-end connectivity and lifecycle optimization; it requires organizational, cultural, and technological changes

The Next Step in PLM’s EvolutionPrevious PLM related initiatives provide the foundation

Cost

Quality

Time-to-market

Innovation

Task Automation

Concurrent Engineering

Integrated Environments

Collaboration

Issue Response

Digitalization End-to-End C/O

Evolution


The Emergence of the Digital PlatformThe platformization of PLM—enabling end-to-end connectivity & optimization

Proliferating digital platforms will be

at the heart of tomorrow’s economy,

and even government...The Economist, January 18th, 2014


“…the digital revolution is transforming the process of innovation itself…”

…“platformisation” is spreading even to the very stuff of life In business the effects of platforms are already making

themselves felt

Companies must either turn themselves into one or become agile ecosystems

The spread of platforms will bring radical changes for workers, too

…the impact of platformisation will be monumental Those who see the current entrepreneurial explosion as merely another

dotcom bubble should think again

“Coming to an office near you…”The Economist, January 18th, 2014—the future of PLM


The Product Innovation PlatformCIMdata’s Product Innovation Platform Model

Requirements interface layer

Data & Process Management

Backbone

Modeling & Simulation Platform

Modeling & Simulation Platform

Data & Process Management

Backbone

Quality&Compliance

Data&ProcessManagementBackbone

ServiceManagement

SystemIdea on

SystemRealiza on

Por olio&Program

Management

ProfitabilityManagement

A set of evolving

Functional Domains

orchestrated by an

enterprise level “systems

of systems” approach

Multi-Disciplinary

Lifecycle Optimization


Success of a platform strategy is determined by: Connection—how easily others can plug into the platform to share & transact

Gravity—how well the platform attracts participants, both producers and consumers

Flow—how well the platform fosters the exchange and co-creation of value

Platforms achieve these goals with three building blocks: The Toolbox creates connection by making it easy for others to plug into the

platform (e.g., Apple provides developers with the OS & underlying libraries)

The Magnet creates pull that attracts participants to the platform with a kind of social gravity (e.g., Apple needed to attract both developers and users)

The Matchmaker fosters the flow of value by making connections between producers & consumers (e.g., Google matches the supply & demand of content)

Characteristics of a Successful Platform Before we move forward…the 3 success factors and 3 key building blocks (1 of 2)

Bonchek, Mark and Choudary, Sangeet Paul, “Three Elements of a Successful Platform Strategy,” Harvard Business Review, Jan 31, 2013.


Not all platforms place the same emphasis on all three building blocks, e.g., Amazon Web Services has focused on building the Toolbox

eBay and AirBnB have focused more on the Magnet and Matchmaker role

Facebook has focused on the Toolbox and Magnet, and is actively building its Matchmaker ability

PLM solutions are evolving into platforms that enable a foundation upon which product-related functional capabilities, data, and processes are enabled Everything users need, when they need it, all in one logical digital place

Characteristics of a Successful Platform Before we move forward…the 3 success factors and 3 key building blocks (2 of 2)

Enabling end-to-end data and process connectivity…


The Required End-to-End ConnectivityPLM touches all phases of a product’s life—digitalization demands it

Requirements

Planning

Conceptual Design

Product Engineering Manufacturing

Engineering

Simulation & Validation

Build and Produce

Sales & Distribution

Maintenance& Repair

Disposal & Recycling

Test & Quality

PLM Solutions—Information Management across Media, Process, Time, Geography, & Enterprise

In-service Operation

PortfolioManagement

Re-useRe-purpose

Re-mfg.Re-coverRe-cycleRe-tire

Info


Plan Concept Design Validate Production Service

Requirements Structure System/Logical Structure Engineering Structure Simulation/Testing Structure MFG Structure As-Supported Structure

Production Systems(ERP/MES)

Truth - Clear understanding of requirements Truth - Clear

understanding of impact on functional design

Truth - Clear understanding of changes to product design

Truth - Clear understanding of impact to product simulation needed

Truth - Clear understanding of impact to mfg structure

Truth - Clear understanding of impact to Mfg and As Supported structure

When a Change to Requirements occurs

PLM Provides a Single Source of TruthA single source for multiple structures (e.g., multiple BOMs)—enabling the Digital Thread


Companies gather incredible amounts of data about every stage of a product’s lifecycle and then ignore most of it Some of this data comes directly from the product itself

Other data arrives via social media and multiple loosely structured formats

To be useful the data needs to understood in the appropriate context(s), format(s), … Just having the data available doesn’t mean that it is useful and actionable

Data analytics is important, but only part of the solution, the ability predict future issues, requirements, etc. is also required

Steady progress has been made over many years in data interoperability, the transparency of workflows & processes, & collaboration among ever more diverse groups But it hasn’t proven to be enough to close all the lifecycle loops

Closing the Loops Throughout the LifecycleSomething that IoT can support in a significant way (1 of 2)


But remaining open loops (not to mention the new ones) often hamstring the development and support of game-changing, globally competitive products These loops take the form of unanswered or unasked questions

These disconnects undermine collaboration among the increasingly diverse teams throughout today’s extended enterprises

Closing these loops and eliminating the workflow disconnects may be a never-ending battle Due to the dynamics of product lifecycle, for every loop that’s identified and

closed, new disconnects appear

Closing the Loops Throughout the LifecycleSomething that IoT can support in a significant way (2 of 2)


Closing the Loops: An Industry ExampleWell beyond traditional discrete industries! Transformation is required everywhere

CLOSING LOOPS IN APPAREL. This conceptual approach to closing the loops in textiles and apparel is from the Circle Economy organization in the Netherlands.

The Circle Economy creates restorative industrial systems by decoupling growth and resource needs. It helps develop eco-effective innovations for products designed to be reused endlessly.

(Courtesy of Circle Economy)


Radical advances in digitalization are underway all around us An obvious example is the intelligent, connected thermostats that mind our

homes when we’re away

Digitalization itself as been defined in many ways, and but the most succinct is the business strategy best geared to extract real-world value from digital data

The Internet of Things (IoT) with its billions of connected devices is and will play a major role A source of “big data” and

enabling closed loop lifecycle management

Making the digital thread and digital twin more achievable

Digitalization: Transforming EnterprisesDigitalization requires rethinking the business, product, and data (1 of 2)


Driven by the phenomenon of Big Data, information management as we know it is being re-engineered top to bottom

Big Data threatens to overwhelm long-established workflows and processes and make them obsolete This is especially true in the

less computerized segments of the lifecycle such as marketing, regulatory compliance, and field service

Digitalization: Transforming EnterprisesOne cannot escape the on coming data tsunami (2 of 2)


Creating & Maintaining the Digital TwinProduct companies cannot achieved without PLM

http://www.ansys-blog.com/digital-twin-pump/

https://community.plm.automation.siemens.com/t5/Tecnomatix-News/Digital-Twin-Blurring-the-lines-between-reality-and-simulation/ba-p/333483

http://blogs.dnvgl.com/software/2016/04/digital-twins-structural-engineering/


Digitalization has three powerful implications for product development and lifecycle management:1. A new push to ensure that all data is fully accessible in any required data

format

2. The reversion of the data in today’s hundreds of file formats back into data records

As today’s business strategies become data centric, file formats can be stumbling blocks

3. The arrival of Big Data in all its variety, velocity, and volume-the exabytes and yottabytes of 1s and 0s at the heart of digitalization

Digitalization’s Powerful ImplicationsData management is key to digitalization (1 of 2)


Terabyte-sized models are now routinely analyzed and optimized

Massively complex networks, processes, and workflows are simulated with tens of thousands of variables

Not long ago, data crunching at the scale-trillions of floating-point operations, or “teraflops,” took days Now these huge computer runs can be done in minutes in the Cloud

Given this unprecedented speed and power, models and analyses will keep growing for the foreseeable future As described, a core element of the product innovation platform

Digitalization’s Powerful ImplicationsYou will need to deal with VERY BIG data (2 of 2)

The need to search and find the correct data follows…


PLM enables users to close loops more tightly than ever before, with less time and effort, and fewer frustrations From the top-floor to the shop-floor

From the design center to the field

From the top-floor to end of useful life

Etc.

The rapidly maturing PLM solutions and strategies are driven by two growing realizations about data shortcomings:1. Nearly all the digital information we collect so obsessively is useless

2. Hidden in what some analysts call “data debris” are a myriad of insights, trends and correlations

Data Debris: Finding the GoldFinding insights, trends, and correlations in ‘Data Debris’ (1 of 2)


Knowledge and insights are built up from countless data points, which means measurement So how can the PLM industry help?

We need to help industrial companies understand… What measurements are needed to design more competitive products?

What are the best ways to retrieve these measurements?

How can the IoT can help (i.e., smart connected products)?

How can measurements—data in the raw—be placed in their proper informational contexts, e.g. trends and correlations?

What predictive analysts can be applied in support of closing the loops more quickly and efficiently?

Data Debris: Finding the GoldFinding insights, trends, and correlations in ‘Data Debris’ (2 of 2)

The implications of digitalization are widespread…


Digitalization is the next revolution It is moving from a fuzzy concept to the newest data-driven derailment of the

status quo

It is transforming products from physical goods and tangible services; in many cases data is the “product”

There are major consequences in all this for… Product development, lifecycle management, the management of intellectual

property (IP), and innovation in general

Fortunately, new sources of information are speeding up innovation and product development We need to figure out how to make the most out of the data

In many cases, data is becoming assets at least equal to the value of physical goods and tangible systems containing that information

Final ThoughtsPLM: The Foundation for Enterprise Digitalization (1 of 2)


The emergence of the innovation platform has the potential to not only enable the end-to-end digitalization required to be successful, but to thrive

We need to continually rethink PLM and how we enable our ability to design and deliver innovative products and services Business models (e.g., the digital enterprise), positioning, platform strategies,

solution offerings…may all have to change

The march of technology, digitalization included, is widely recognized as both unstoppable and incomprehensible Today we see only the beginnings of the connectivity that will be required of

us, and imposed on us if we don’t adopt it willingly

Final ThoughtsPLM: The Foundation for Enterprise Digitalization (2 of 2)

Digitalization requires PLM!


CIMdata Strategic consulting for competitive advantage in global markets

World Headquarters3909 Research Park Drive Ann Arbor, MI 48108 USA

Tel:+1.734.668.9922Fax:+1.734.668.1957

www.CIMdata.com

Serving clients from offices in North America, Europe, and Asia-Pacific

Main Office - Asia-PacificTakegahana-Nishimachi 310-31

Matsudo, Chiba 271-0071 JAPANTel: +81.47.361.5850Fax: +81.47.362.0472

Main Office - EuropeOogststraat 20

6004 CV Weert, NLTel:+31 (0) 495.533.666

Documents

PLM: The Foundation for Enterprise Digitalizationcontent.pi.tv/events/PI Berlin 2017/presentations/1138...PLM solutions are evolving into platforms that enable a foundation upon which