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Four key strategies for enabling innovation in the age of smart


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On a smarter planet, intelligence is infused into the products,systems and processes that comprise the modern world. Theseinclude the delivery of services; the development, manufactur-ing, buying and selling of physical goods; and the way peopleactually work and live. Nowhere may this transformation be more evident than in the creation of smarter products.

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Four key strategies for enabling innovation in the age of smart

  1. 1. IBM Software Thought Leadership White PaperRationalFour key strategies for enablinginnovation in the age of smartUsing integrated product management from IBM
  2. 2. 2 Four key strategies for enabling innovation in the age of smartContents products need to address the needs of a wide variety of differ- ent users, whether the differences are a result of unique geo- 3 IPM for collaborative, comprehensive development graphical requirements or unique user preferences. Smarter 4 Global optimization of business and development products are transforming the way the world works in new processes and organization ways virtually every day. This is true not only in the way products are used but also in the way they are built. 5 Processes and tools that deliver product value and differentiation Product innovation has certainly evolved over the past few years. Whereas it used to rely primarily on advancements in 8 Automation of processes across the ecosystem of system contributors hardware and electronics, it is now much more dependent on software. It has also evolved from being primarily managed10 Visibility and control over assets to improve efficien- within a single company to a more collaborative model involv- cies and value ing design partners and suppliers. As a result, innovative prod- uct development requires an approach that supports tight11 Support for tight collaboration within increasingly collaboration and increasingly complex value chains—an complex value chains approach IBM calls integrated product management (IPM).Executive summaryOn a smarter planet, intelligence is infused into the products, Smarter products are intelligent, interconnected andsystems and processes that comprise the modern world. These instrumented—creating high-value integrated systems,include the delivery of services; the development, manufactur- such as:ing, buying and selling of physical goods; and the way peopleactually work and live. Nowhere may this transformation be ● Smart electric grid systems.more evident than in the creation of smarter products. ● Online navigation systems. ● Traffic management systems.Smarter products are the building blocks for a smarter planet. ● Fleet management systems.Embedded with increasingly sophisticated software and instru- ● Healthcare management systems.mentation, they can connect and communicate with other ● Integrated defense systems. ● Border control systems.devices and respond intelligently to user needs. Smarter
  3. 3. IBM Software 3IPM for collaborative, comprehensive Moreover, IPM can help organizations maintain product qual-development ity, demonstrate regulatory compliance and pass audits. ItTo help organizations design and deliver increasingly complex helps keep costs under control by decreasing the number ofproducts and manage their life cycles, IBM created an IPM warranty claims and better managing the product supply chainapproach that combines capabilities, tools and best practices and product development—thus lowering the cost of endfrom across IBM and IBM Business Partner organizations. products and boosting the bottom line.This strategy can address some of the most prominentproduct development and delivery goals and challenges today, As a leading product development technology provider,including: IBM offers integrated solutions and services for demanding product engineering disciplines—including mechanical, elec-● Transforming companies into competitive, innovative tronic and software life-cycle management. This paper will leaders. discuss these four key IPM strategies from IBM, which help● Developing a portfolio of innovative products and systems— organizations design, deliver and manage smarter products combining mechanical, electrical and software technologies. designed to offer the highest value and quickest return on● Facilitating collaboration across the design chain with multi- investment (ROI): ple partners and stakeholders.● Managing assets and operations of an ever-changing 1. Strategically transform business processes to build new ecosystem. capabilities, save costs, accelerate product introduction and create new market segments.By integrating and managing a product’s life cycle across 2. Adopt an advanced systems engineering approach to man-development domains, IPM streamlines innovative product age all product dependencies across engineering disciplinesdevelopment and accelerates time to market for new products. and build a strong competency in software developmentIn turn, IPM facilitates greater marketplace penetration and and delivery.the creation of “the next big thing.” Because much of innova- 3. Optimize the design chain by automating business processestion may be derived from the software component of smarter that leverage existing investments in best-in-class applica-products, manufacturers can address competitive threats faster tions and data.and quickly deliver on consumer demands for a portfolio of 4. Ensure that product and asset maintenance and support isproducts that offer personalization and customization. treated as a strategic business process that drives profitability.
  4. 4. 4 Four key strategies for enabling innovation in the age of smartGlobal optimization of business and IBM helps businesses establish a technology foundation ondevelopment processes and organization which virtually all enterprise applications can operateThe marketplace is generally in flux with dynamic customer synchronously—sharing and reusing processes andneeds, quick-moving competitors and industry-changing new information to foster interoperability across the enterprise.technologies. Consequently, companies must regularly moni-tor their product development practices to ensure that they IBM Global Business Services offers strategy and transforma-are responsive and collaborative and to identify and remove tion capabilities that can help improve product developmentredundant or low-value activities. processes and optimize, integrate and operate product man- agement environments. And to accelerate the drive to effi- ciency, IBM can also deliver business strategy alignmentStrategy 1: Strategically transform busi- assessments and the following business value accelerators:ness processes to build new capabilities, save ● Maturity assessment and strategic planningcosts, accelerate product introduction and ● Embedded software assessment and strategic planningcreate new market segments. ● Environmental compliance and strategic planning ● Product cost visibility diagnosticsProper business planning and continual improvement canhelp organizations make certain that business processes are asrelevant and value-driven as the products they build. A strat- Hughes Telematics provides smarter products and serv-egy may include: ices with help from IBM Global Business Services Hughes Telematics developed an onboard sensing and● Bridging design, delivery and management processes. communications telematics system for vehicles that● Collaboratively defining and managing product require- detects crash conditions and car location and provides ments for the entire portfolio of products. customer-activated concierge services (such as driving● Deploying an integrated platform that converges the design, instructions and door unlocking). Upon crash detection, development and delivery of smarter products and services. the system dials for emergency help and guides the● Tracking in-field service, maintenance and operations response unit to the accident location. It also enables the support. dispatch call center to contact vehicle occupants to alert them that help is on the way.By using proven approaches and tools designed for business Hughes Telematics tapped IBM Global Business Servicesplanning and transformation, organizations can align their to design, build and deploy a flexible systems andbusiness and technology investment strategies and manage process infrastructure, adapted for telematics. Using theever-evolving project priorities and resources. IBM offers infrastructure, the company can deliver new servicesbusiness transformation frameworks and services, product through its sensing and communications system in aportfolio management tools, and enterprise architecture solu- much quicker time compared with proprietary systems.tions to help organizations optimize their business strategies.
  5. 5. IBM Software 5Processes and tools that deliver product Organizations that build a strong competency in softwarevalue and differentiation delivery will be able to rapidly respond to changes in the mar-Software has infused smarter products with intelligence, lead- ketplace and deliver innovative services much more to an exponential leap in product capabilities—and a com- Plus, it may be more cost-effective for manufacturers to offermensurate increase in risk and complexity. As if designing and a broad portfolio of products by just changing the software.building smart products weren’t hard enough, many of them, For example, manufacturers can address different target mar-such as cars, planes and smart phones, are systems of systems. ket segments by releasing products with similar hardware andFeatures are no longer isolated within individual products— electronics while using software to provide varying capabilitiesinstead, they are delivered through integration with other for the end and back-office business processes. For example, apatient who suffers from congestive heart failure has an However, the challenges of developing smarter productsimplanted cardiac medical device that monitors and regulates run deep because a system of systems has many layers ofhis or her heart. If the patient has a cardiac event, the complexity among the electrical, mechanical and softwareimplanted device senses it and wirelessly communicates that domains. To help manage and validate these complexoccurrence to the cardiac center, which can remotely monitor interrelationships, organizations can implement or improvethe patient and gather data for diagnosis. systems modeling and enhance requirements engineering, traceability and quality.Strategy 2: Adopt an advanced systems Implement or improve systems modeling to manage and validate interrelationshipsengineering approach to manage all prod- Organizations need to model their systems prior to investinguct dependencies across engineering disci- time and resources into the full product design. Modeling andplines and build a strong competency in simulation are also important when a business wants to address a new market segment or revise a product early in itssoftware development and delivery. development life cycle—when change is still relatively inex- pensive. Modeling facilitates innovation through controlledThese complex, smart products and systems present opportu- experimentation and helps organizations assess the technicalnities and challenges. Software is the invisible thread that and commercial feasibility of those changes by showing howlinks components to form an intelligent and coordinated the changes to specific aspects of the design can affect productstructure—and it is software that offers differentiating performance, cost and delivery schedule.functionalities and delivers the real value of smarter products.
  6. 6. 6 Four key strategies for enabling innovation in the age of smartEnhance requirements engineering, traceability and quality Rational integrated product change management solutions canBecause of scope creep and the widespread effects of changing help a company:requirements, it can be difficult to efficiently and effectivelydesign and build products and product lines that meet cus- ● Reduce the time it takes to propagate changes throughouttomer specifications. Requirements verification—either the design team.through engineering analysis or physical part and assembly ● Speed turnaround time in design and defect resolution.testing—must be performed not only at the end of the devel- ● Lower the number of “missed” changes that are discoveredopment process but also throughout. That helps ensure that late in the project.requirements are being met. Moreover, it is far less expensive ● Improve the management of multiple engineeringto discover and solve problems and design issues earlier in the disciplines.development process than later. ● Increase the visibility of schedules, including the impact of requirement and product changes.Using traceability tools to link tests to requirements through- ● Manage project costs better.out the process can improve quality by helping to ensure ● Reduce costs by leveraging existing process investments.that the right tests are run and can save time and money byreducing unnecessary tests. Moreover, organizations can Leverage a comprehensive, integrated systemsperform trade studies when designing a product to not only engineering platform for IPMsatisfy the product requirements but also optimally address A holistic, integrated approach to systems engineering andthe design constraints. software development is needed to rapidly deliver high-quality products and systems. An IPM approach connects four keyManage, share and validate changes among teams with disciplines that span the systems and software developmentIBM change management life cycle:IBM Rational® integrated product change managementsolutions help ensure that changes are shared and managed ● Requirements management—manages system andamong global teams and across engineering disciplines. software requirements and tracks conformance to thoseManufacturers can bring together systems designers, software requirements and compliance to regulationsdevelopers and product engineers in a common collaboration ● Model-driven systems development—graphicallyenvironment. This platform manages change in the various explores the requirements and builds out the behavior anddisciplines—software, electronics and mechanical—to facilitate functionality of systems and softwarestrong collaboration and track the impact of change wherever ● Collaboration and change management—provides a cen-and whenever it occurs. tral communication point and workflow support for diverse, distributed teams across the life cycle to efficiently work together—continually and iteratively ● Quality management—establishes a collaborative, customizable quality management hub that can unite teams and provide an enforceable process workflow
  7. 7. IBM Software 7The IBM Rational systems and software engineering solution and their customers’ needs. Tools in the suite can sharesuite provides integrated systems engineering and embedded requirements, artifacts and other development componentssoftware development solutions to help organizations build and as well as provide support for comprehensive life-cyclesystems and products that address their businesses’ objectives management. Trace requirements to design IBM Rational Rhapsody® IBM Rational DOORS® Model-driven systems development Requirements management Manage the model artifacts Link test plans/test cases to requirements Build and execute tests Related change request— link work items across Rational Team Concert servers IBM Rational Team Concert IBM Rational Quality Manager Real-time collaboration platform for development teams Comprehensive test planning and • Work item collaboration and change management test asset management • Process workflow guidance • Project health and transparency • Link test cases to development plan items • Software configuration management and build • Submit defects for test executions management • Link test results to existing defectsFigure 1: The Rational development tools work together to provide a comprehensive, integrated development environment.
  8. 8. 8 Four key strategies for enabling innovation in the age of smart Automation of processes across theHelmes drives innovation through design chain collabo- ecosystem of system contributorsration with IBM Rational software Disconnected product development applications and processesHelmes—one of Estonia’s leading software development hinder collaborative development among an extendedand consulting firms—wanted to find a way to help its staff design chain of departmental, partner and supplier teams.and clients collaborate and plan development projects Organizations need ways to include their design and supplymore effectively. This IBM Business Partner implemented partners in a unified process for product development.the IBM Rational Team Concert™ platform—a collaborative Specifically, product, project, portfolio and performance infor-development environment—to share information; define mation needs to be available and shared efficiently among allrequirements, dependencies and priorities; set milestones; the design stakeholders in real time, while being managed byand plan workload for each member of the project team. an overarching process.With a single system managing all development-relatedinformation, Helmes and its customers can quickly obtaina comprehensive overview of project status. Customers Strategy 3: Optimize the design chain byare involved in the development process at every stage, automating business processes that leverageimproving communication and verifying that each newrelease is closely aligned to their requirements. Advanced existing investments in best-in-class appli-workflows and scheduling features enable rapid, efficient cations and data.development—reducing time to market and improving soft-ware quality. Design chain management helps manufacturers effectively“With IBM Rational Team Concert, we know exactly where distribute the product design and development process acrosswe are at all times. There is never any doubt or any need the extended value chain. And design chain collaborationto hunt for a document because all relevant information is improves product development, providing increased businessimmediately at hand.” performance and executive-level decision support. It drives— Erkki Aarma, project manager, Helmes opportunities for: ● Product cost reductions and quality improvements. ● Faster cycle times and ROI. ● Development costs savings.
  9. 9. IBM Software 9Facilitate collaboration across the design chain An integrated product and systems development approachAll of the teams and partners that contribute to the overall helps organizations better collaborate and manage complexi-product design comprise the design chain. A company—such ties by breaking down the silos among engineering disciplinesas an original equipment manufacturer (OEM)—may manage and managing change across domains. This approach helpsthe entire design chain process, or a company—such as an ensure product quality by assembling and tracing require-embedded software developer—may participate in only a small ments throughout the product life cycle and across the designportion of the process. In either case, it is critical that organi- chain. It also balances scarce resources across profitable prod-zations follow a coordinated design process and have access to uct lines and helps avoid rework and redundancy by leveragingall relevant data—even if design chain partners are in different product and architecture commonality.companies or geographies. Leverage existing investments with IBM solutions for theProduct change originates from a variety of stakeholders design chainthroughout the design chain. Changes come from every part Organizations that want to implement or improve designof the enterprise—including marketing, customer support, chain management shouldn’t need to rip out and replace exist-development teams uncovering issues and managers concerned ing resources to implement new tools or process improve-with keeping pace with competitors. When a product’s hard- ments. Ideally, businesses should be able to build on the valueware, electrical and software components are built in parallel, of existing tools and processes. To do so, they need to inte-changes that occur within one discipline can have a cascading grate tools across the design chain and federate informationeffect on the other disciplines. Therefore it is critical to effi- from existing and new sources.ciently communicate changes across the design chain. Design chain collaboration solutions from IBM enableEvery service and interaction that happens within the multiple line-of-business employees to participate and collaborate insystems needs to be managed, monitored and maintained so the development process by giving them access to engineeringthat the engineers in the different disciplines and participants data that may currently be siloed in multiple design andall along the design chain are on the same page. Methods for management systems. IBM WebSphere® solutions can helpmanaging and validating the interrelationships that occur organizations rapidly deploy composite IPM applications onamong the three disciplines and design chain must be found to existing tools and data ensure that products meet requirements and to supportregulatory compliance.
  10. 10. 10 Four key strategies for enabling innovation in the age of smartPlus, IBM Global Business Services offers reengineering serv- However, companies aren’t always designing productsices that consider client-unique situations to help manufactur- with support requirements and asset longevity in mind.ers maximize existing investments and integrate them with Organizations need to ensure that the products they build cannew applications, systems and infrastructure. The group can be profitably supported and maintained over a long lifetime.provide services such as: Strategy 4: Ensure that product and asset● Enterprise application integration.● Business process management. maintenance and support is treated as a● Partner ecosystem management. strategic business process that drives profitability.Meyer Werft cruises into flexible engineering change Asset life-cycle management can help manufacturers ensuremanagement with an SOA solution proper maintenance and reliability of production line assets—Shipbuilder Meyer Werft’s existing product life-cycle including robotics and conveyers; the software used to operatemanagement (PLM) process and system landscape lacked them; facilities; and all of the critical assets that play a role inthe flexibility and scalability to meet current and future the design, delivery and management of a product. Asset man-business demands. Plus, it lacked transparency and an agement also helps manufacturers establish new revenueaccurate, up-to-date view of design information and pro- streams with service-after-sales models for existing products.duction data, extending no insight for engineering and Tracking “as deployed” and “as maintained” products andbusiness decisions. their performance after sales can help design teams identify:IBM Global Business Services analyzed the businesssituation and created a customized application based on ● Common configuration problems.service-oriented architecture (SOA) approaches. As a ● After-market parts that may cause issues.result, the information needed for any job can be consoli- ● Fixes that can be used by maintenance teams.dated, resulting in more efficiency and fewer errors. Plus,the integration of external partners encouraged new and Tracking this information can help developers continuallyinnovative ways of cooperating. improve the quality of their business processes and of their products—including their reliability, compliance and applica- tion. It has become particularly important as products increas-Visibility and control over assets to ingly include firmware and software that must be maintained.improve efficiencies and valueManufacturers are increasingly offering product operationaland support services to increase profitability. And in somecases, service after sales is where organizations make most orall of their profit. For example, few car dealerships profit fromcar sales—the profitability comes from the maintenance andrepair of those cars.
  11. 11. IBM Software 11Moreover, integrating asset management with the service desk ● Service after sales, including customer support or directcan boost customer service by unifying the management of maintenance, repair and operations services for customers.field requests, customer problems and workflows. It can auto- ● Integrated project management and enterprise asset man-matically route those problems to the design or the mainte- agement integration for IBM clients that have existing solu-nance teams that own the problem, thereby improving quality tions but want to support service after sales.of service and customer loyalty. ● Tracing product faults back to design or requirements, thereby facilitating continual product improvement.To leverage an asset management and operations approach,manufacturers can integrate enterprise asset management with Support for tight collaboration withinservice life-cycle management. The IBM solution for asset increasingly complex value chainsmanagement provides life-cycle management of all assets— As products become more complex, interconnected and intel-from their design to field support and maintenance. It can ligent, innovation is derived increasingly from a collaborativemonitor, manage, support and provide insight into the model among design partners and suppliers. Consequently,production and after-sales health of products. It also helps IPM needs to be approached in a strategic way to helpmaintenance teams use bill-of-materials information, manuals organizations deliver high-quality, innovative products to theand three-dimensional views of “as designed” and “as built” marketplace faster and more frequently. Manufacturers canproducts to accelerate product deployment, maintenance and apply four key strategies—spanning business planning andproblem resolution. The solution can collect information from transformation, product and systems development, designthe field and automatically route it to the design teams that chain collaboration, and asset management and operations—toneed it for fixes and design planning. support an IPM approach to product design, manufacturing and support.The IBM solution for asset management has capabilities thatinclude: IPM from IBM is supported by more than 30 IBM offerings, which can be used in just about any combination. It addresses● Deployment, maintenance and change tracking across smart, the unique needs of manufacturers by offering industry exten- physical and IT assets. sions built on a service-oriented architecture. IBM continually● Manufacturing support, including for the capital equipment strengthens the integrations among its IPM products and adds involved in manufacturing or preparation of work instruc- new components to help keep IPM relevant to the needs of tions or maintenance procedure publications. the current marketplace.● Monitoring of asset status to identify problems before they affect customers.
  12. 12. Organizations that incorporate IPM solutions into strategicbusiness processes can achieve the process flexibility andperformance needed to address the demands of today’s—andprepare for tomorrow’s—complex, interconnected world.Specifically, IBM offers: © Copyright IBM Corporation 2010● Applications—leading IPM software and technology from IBM Corporation IBM and global IBM Business Partners. Software Group Route 100● Advanced IPM architectures—IPM innovation, including Somers, NY 10589 industry frameworks, cloud computing and smarter U.S.A. products. Produced in the United States of America● IPM research—collaborating with clients and industries to September 2010 further advance the science of IPM. All Rights Reserved● Methodology, skills and global delivery—core IBM, the IBM logo,, and Rational are trademarks of IPM strategy and offerings, supported by IBM global International Business Machines Corp., registered in many jurisdictions centers and delivery resources. worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” atWith consultants and technical staff in 160 countries, delivers systems, solutions and services to more than References in this publication to IBM products or services do not imply20,000 clients worldwide. IBM offers a proven track record of that IBM intends to make them available in all countries in whichdelivering advanced solutions in a variety of industries and IBM segments. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in thisFor more information documentation, it is provided “as is” without warranty of any kind, expressTo learn more about the comprehensive integrated product or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM withoutmanagement offerings and strategies from IBM, please contact notice. IBM shall not be responsible for any damages arising out of theyour IBM representative or IBM Business Partner, or visit: use of, or otherwise related to, this documentation or any documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms andAdditionally, financing solutions from IBM Global Financing conditions of the applicable license agreement governing the use ofcan enable effective cash management, protection from tech- IBM software.nology obsolescence, improved total cost of ownership and IBM customers are responsible for ensuring their own compliance withreturn on investment. Also, our Global Asset Recovery legal requirements. It is the customer’s sole responsibility to obtain adviceServices help address environmental concerns with new, of competent legal counsel as to the identification and interpretation of any relevant laws and regulatory requirements that may affect themore energy-efficient solutions. For more information on customer’s business and any actions the customer may need to take toIBM Global Financing, visit: comply with such laws. All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. Please Recycle RAW14225-USEN-01