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The new PLM: Highly connected, a little disruptive

The arrival of smart products is forcing manufacturers to reevaluate how they manage the product lifecycle from idea to end of life, while factoring suppliers and customers into the equation.

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When you are buying a luxury car, you want it to come fully loaded with all the amenities like navigation, in-vehicle infotainment, intelligent park assist, collision avoidance, etc. These bells and whistles make for a comfortable customer experience. But for the manufacturers and OEMs that are making these software-driven vehicles with upwards of 100 million lines of code, product development is a challenge.

And it’s not just automobiles that are morphing into complex electronic systems. Many of the smart things saturating our everyday lives as part of the Internet of Things (IoT) are engineered with mechanical, electrical, software and firmware components, all of which amount to connected chaos when it comes to managing configurations, revisions and quality control as part of the product lifecycle management (PLM) system.

Here’s why: PLM traditionally has been a way for manufacturers to bring new products to market faster by reducing development and production time, cutting costs and maintaining product quality. And it all starts with the computer-aided design (CAD) tools to create mechanical diagrams of materials, processes, tolerances and dimensions using 2D vector-based drafting systems and 3D solid and surface models.

In the past, PLM was very much rooted in design and providing a way to manage the lifecycle of a product from inception through engineering and manufacturing and, ultimately, end-of-life product disposal. It was based on a collaborative framework for organizing, connecting and tracking product documents, including CAD and computer-aided manufacturing (CAM) files. More recently, there’s been a push to close the loop between engineering, production and enterprise software—like manufacturing execution systems (MES) and enterprise resource planning (ERP)—to create synchronicity and visibility between design, manufacturing, and order and inventory.

Now the industry has entered a new stage in which suppliers and customers are also an important part of the product lifecycle. Suppliers, in some ways, are becoming design partners and customers are leveraging social networks to provide feedback on product functionality. In addition, the “connected products” that make up the IoT are creating a convergence of electronics and software, so there is a need for more integrated simulation models.

Collectively, these factors are feeding into the next generation of PLM, which industry experts are calling the product innovation platform. It is the ability to tie the traditional engineering workgroup into upstream front end of innovation—including understanding customer needs—with downstream manufacturing processes to head off any quality issues. This unified cross-functional architecture also factors in which suppliers to work with and what materials to use.

“It is no longer PLM and CAD tools for a few guys in an engineering workgroup,” says Jeff Hojlo, program director of product innovation strategies at analyst firm IDC, noting that the existing setup focuses exclusively on R&D. “PLM [now] encompasses suppliers and non-engineers on the manufacturing side so that changes can be made quickly, quality issues can be serviced quickly, and adjustments can be made [based on] product demand.”

As a result, the PLM providers have been making some unconventional acquisitions that bring an array of expertise together into a unified lifecycle management platform for the digital enterprise.

A few examples include:

  • Autodesk, which made a handful of acquisitions that enhance its AutoCAD design and Inventor modeling/simulation products. In the past few years, the company has bought: Delcam, a provider of CAM software; Netfabb, a developer of industrial additive design software; CadSoft, the maker of Eagle printed circuit board design; and Magestic Systems, a maker of manufacturing software for CNC cutting applications.
  • Dassault Systèmes added manufacturing operations management to its 3D design portfolio with the acquisition of Apriso in 2013, and more recently bought Computer Simulation Technology (CST), a maker of electromagnetic and electronics simulation. It also acquired Next Limit Dynamics, a developer of simulation for highly dynamic fluid flow; and Quintiq, a provider of on-premise and on-cloud supply chain and operations planning software.
  • PTC, known for its Creo CAD software and Windchill PLM software, bought: Kepware Technologies, a maker of manufacturing connectivity tools; ThingWorx, which offers an ecosystem of IoT development tools; Axeda, another IoT company; ColdLight, which has machine learning and predictive analytics; Vuforia, which adds augmented reality into the mix; and Servigistics, a service parts management tool.
  • Siemens PLM brought UGS into the fold way back in 2007 as it outlined its vision to blend virtual and real worlds. In 2012, the company acquired LMS International for its test and mechatronic simulation software. Last year, the company picked up CD-adapco, a simulation company covering a range of engineering disciplines, including fluid dynamics, solid mechanics, heat transfer and electrochemistry. Siemens also added Mentor Graphics to its portfolio for its design automation software, including for automotive integrated circuits and system-on-chip devices.

Though it might seem that PLM providers are on a random buying spree, they are all on the same path to move away from a lot of disparate data and toward a more collaborative visualization effort between engineering, manufacturing, the supply chain and the customer.

“The future opportunity is to use the information around connected products [as it relates to] usage and performance in order to make better products,” Hojlo says.

Disruptive designs
The digital world changes everything. Think about cars. Once all mechanical, automobiles more recently have begun to look like rolling computers. Now the automotive industry must evolve with its products.

“The automotive industry is becoming the mobility industry,” says Tom Maurer, senior director of strategy at Siemens PLM. “It’s not about selling automobiles, but about mobility in transportation.”

Such shifts also open the door for selling products as a service. Maurer points to Konecranes, a maker of heavy-lifting equipment. The company is not just selling cranes anymore, but rather selling lifting as a service. To do that, they’ve worked with Siemens to equip the cranes with sensors that report information back to the manufacturer, which then applies analytics and knows when it needs to be serviced. This new business model allows the customer to buy an operational service rather than capital equipment.

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