Presentation given at the 2023 NEM meeting at Vestas - describing the need to combine digitization, sustainability and modularity as connected domains

1. They are all connected
DIGITALIZATION, SUSTAINABILITY, MODULARITY
Jos Voskuil
www.virtualdutchman.com

2. DIGITAL TRANSFORMATION IN PLM
Why is it slow and different from other business domains?

3. Digital Transformation
ACCELERATION
DIGITAL /
DATA
PLATFORMS
Global connected

4. PLM – the forgotten domain?
→ Document-driven approach
→ Products
→ Inside out: push to the market
→ Waterfall

5. CONTINUOUS
DELIVERY
Software
→ Data-driven approach
→ Systems / model-based
→ Outside in: pull from market
→ Agile / MVP* approach
Modern PLM – a Product Innovation Platform / Digital PLM
* MVP = Minimum Viable Product
Hardware

6. Become ready for the future
is about platforms

7. The future of software: Digital Platforms working together
A platform is a group of technologies
that are used as a base upon which other
applications, processes or technologies
are developed.

8. The future of software: Digital Platforms working together
CIMdata Product Innovation Platform
The future is “federated”
From SSoT to ASoT
Single Source of Truth / Associate Source of Truth
Operations
Customers Manufacturing

9. What is digital transformation in PLM (first discussions)
CIMdata Product Innovation Platform
CIMdata Product Innovation Platform – Oct 2015

10. What is digital transformation in PLM (first concepts)
Accenture Digital PLM – June 2014

11. Source: Marc Halpern (Gartner PDT Europe 2015)
From Systems to Platforms

12. Reacting Repeating Integrating Collaborating Orchestrating
Business Focus Just do it Eliminate Waste
Improve Product
Quality & Cost
Efficient Product
Innovation
Efficient Product
Portfolio
Job Focus Few or None
Time &
Efficiency
Productivity &
Scalability
Focus on
Performance
improvement
Focus on Strategy
improvement
Processes &
Practices
Ad Hoc Robust
Across the
Internal Functions
Value Chain
involved
Value Chain
engaged
Organization Tribal Territorial
Internal
Cross-Functional
Across the Value
Chain through NPI
Cross the Value
Chain all Lifecycles
Technology Disparate
Functional
Siloes Coordinated Connected
Adaptive/
AI enabled
Data Mgmt.
scope
Ad Hoc PDM
PLM
System of Record
Extra Enterprise
PLM / Platform
Global data-driven
connectivity
M a t u r i t y P a t h o v e r t i m e
Past
Origin: Marc Halpern (Gartner 2015) updated 2023
Current Started Vision

13. Reacting Repeating Integrating Collaborating Orchestrating
Business Focus Just do it Eliminate Waste
Improve Product
Quality & Cost
Efficient Product
Innovation
Efficient Product
Portfolio
Job Focus Few or None
Time &
Efficiency
Productivity &
Scalability
Focus on
Performance
improvement
Focus on Strategy
improvement
Processes &
Practices
Ad Hoc Robust
Across the
Internal Functions
Value Chain
involved
Value Chain
engaged
Organization Tribal Territorial
Internal
Cross-Functional
Across the Value
Chain through NPI
Cross the Value
Chain all Lifecycles
Technology Disparate
Functional
Siloes Coordinated Connected
Adaptive/
AI enabled
Data Mgmt.
scope
Ad Hoc PDM
PLM
System of Record
Extra Enterprise
PLM / Platform
Global data-driven
connectivity
M a t u r i t y P a t h o v e r t i m e
Digital Transformation

14. From Coordinated to Connected
Coordinated:
Providing the right information at the right time
in the right context
Connected:
Providing actual information for “anyone” connected
in a relevant context

15. Coordinated
Providing the right information at the right time in the right context
Requires:
• An understanding/agreement on what’s needed
Most of the time: Delivered in documents

16. Coordinated
Providing the right information at the right time in the right context
• Delivered in documents
• Activities that drive the delivery of the information
Most of the time: Predefined processes

17. Coordinated
Providing the right information at the right time in the right context
• Delivered in documents
• Predefined processes
• Placeholders where the information can
be found: Folders or BOM structures

18. Coordinated in the context of current PLM systems
Providing the right information at the right time in the right context
• Delivered in electronic files
• Predefined processes
• Using (BOM) structures
These PLM systems provide a System of Record for the (mechanical) product.
Relevant for regulatory compliance / configuration management.
System of Record
(SoR)

19. Coordinated in an evolutionary scope
Providing the right information at the right time in the right context
• Delivered in electronic files
• Predefined processes
• Using (BOM) structures
• Overlay structures (Digital Thread)
The scope is now beyond engineering.
Part of the enterprise backbone – PLM Vendors use various technologies to
connect additional systems – Aras is a new player in this domain.

20. The coordinated approach - summary
Advantages:
• This is what we always have been doing – even on paper.
• People can choose their own tools as long as they deliver in a shareable format
• No complex interfaces – the people are the interfaces
Disadvantages:
• Late discovery of issues – leading to iterations at an extra cost
• The shareable information needs to be created (disconnected) and might not
contain all the critical information in an understandable manner.
• People are the interfaces

21. Connected
Providing actual information for anyone connected in a relevant context
Requires:
• Data (sets) created by accountable persons
Breaking silos – Think about consumers of data.

22. Connected
Providing actual information for anyone connected in a relevant context
• Data(sets) & Accountable persons
• Other formats than documents/files
Using Modeling Apps on Datasets to share
Digital
(Design)
Twin

23. Connected – data-driven & model based – three domains
Model-Based Systems Engineering
needed to define complex products /
systems where hardware & software
are involved.
Virtual product definition, simulation
and testing before committing to the
physical world
Model-Based Definition
Provide a digital continuity between
engineering and manufacturing by
using a shared parameter-driven
3D model
No more drawings – Product Managed
Information stored around a 3D Model
Digital Twin
Managing a virtual definition
related to a physical product in
order to analyze performance,
predict maintenance and use
collected data to improve
products

24. Connected
Providing actual information for anyone connected in a relevant context
• Data(sets) & Accountable persons
• Using Modeling Apps & Datasets to share
• Reliable data uniquely created and shared (in open formats)
Master Data Management & Data Governance
• The importance of an Enterprise architecture

25. Connected
Providing actual information for anyone connected in any context.
Implementing Value Streams
Microservices
APIs / Low Code platforms
Dashboards
Apps
Operations
Closer to customers, Empower employees, and Transform internal business processes

26. Examples of Value Streams
• Product Portfolio Management: end-to-end data connectivity between
Marketing, Engineering, Manufacturing and (Customer) Service
• A digital thread between a PPM, a PDM an ERP, a CRM system and a CSS system?
• Extended Enterprise BOM Collaboration: end-to-end connectivity between
an enterprise and their suppliers
• A digital thread between Engineering, Sourcing, Manufacturing and Suppliers
• Others exist in the domain of Innovation collaboration, Design
Collaboration, Model Based Systems Engineering – all with external
partners.

27. The future: Federated PLM
The PLM infrastructure is a mix of:
• A traditional PLM System:
System of Record
• Extended with other datasets
that might come from:
➢ Excels (disconnected)
➢ Systems of Engagement
➢ Other platforms
(ERP, CRM, MES and IIot)
Example: Heliple project SAAB Aeronautics (Heterogeneous Linked Product Lifecycle Environment)

28. SUSTAINABILITY
The need for model-based and data-driven

29. Digitalization - we would slowly make progress

30. Our human story: Climate & Sustainability
…….

31. Our human story: Climate & Sustainability
…….
2022

32. Our human story: Climate & Sustainability
2023

33. (Climate) regulations will come – governments driven..
GHG reporting
Carbon tax
Energy transition
Opportunities
Investments

34. The Sustainability dimension - materials
MoSSEC

35. Manufactures will change to different business models
Current:
• Linear
• One time / big sell
Product as a Service:
• Iterative
• Continuous revenue stream
Business drivers:
• Higher customer satisfaction
• Better products/lower waste
• More customer loyalty
• From CAPEX to OPEX Image: Moving from Product to Product as a Service (Engineering.com)

36. The relation with the circular economy
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37. MODULARITY
Why it is not only relevant to an efficient business model?

38. The relation with the circular economy
Recycle: Material choices
Refurbish: Material choices / Manuf. choices / Modularity !
Reuse: Design choices / Modularity !
Maintain: Design choices / Repairability /Modularity !
The Role of Modular Design in Sustainability
“Modular design allows for mass customization, but
more importantly, from a sustainability standpoint, it
mandates the need for simple disassembly instructions
Dave Duncan, PTC's VP of sustainability
Share: Change in business models

39. PLM and Modularity as I have seen it
• Modularity is an R&D topic
• Own toolset
• PDM-type of solutions
• BOM-centric
• Marketing and Sales work
disconnected (in Excel)
• No visibility on field performance
• No end-to-end portfolio management

40. PLM and Modularity minimum needs
• Modularity, like PLM, is a business strategy implemented by connected
tools – providing end-to-end insights into performance, costs and
compliance – near “real-time” reporting.
• Sales configurators need to connect to PLM to support product innovation
and evolution efficiently. Differs for low-volume and high-volume products.
• Most traditional PLM vendors use the 150 % BOM or overloaded BOM
concept to manage options and variants – sometimes connected to a
graphical representation (hard to maintain)

41. PLM, Modularity and Sustainability dreams
• Modularity as a core capability to serve Sustainability goals:
repairable, maintainable and upgradeable:
reducing the need for new resources.
• Defining Products and Modules with an MBSE approach
HW and SW combined – analyze environmental impact (LCA)
- manufacturing and operation using Digital Twin(s).
• Product Configuration will shift from configurable BOMs to
configurable Product Breakdown Structures accommodating
software features

42. Conclusions
• Digital Transformation in PLM means the shift from a
document-driven PLM system to a PLM data-driven
infrastructure for connected businesses.
• Dealing with the Sustainability of products requires a model-based
and data-driven infrastructure to be efficient and competitive as a
business, opening ways for new business models, like Product as
a Service.
• Modularity has become even more important now for sustainable
business results, both in efficiency and for support of the circular
economy.

43. 43
Digitalization Sustainability
Thank You
Modularity Mail to: tacit@planet.nl