COFES, Microsoft and Engineering Software Business Models

April 16, 2011

COFES is a think tank for engineering software. This is a place where you can drop any idea and see if it resonates. One of the COFES sessions is so called Maieutic Parataxis session. Think about pitching your idea in front of 300 people. You can see a sequence of 7-10 pitches from people compressed in a row. This is what Maieutic Parataxis is about. Last year I shared the story about Simon Floyd of Microsoft talking about PLM Excels:COFES, Maieutic Parataxies and PLM Excels. This year Simon came with a new idea of future business models for engineering software. Some of Simon’s slides and observations were resonating with my previous thoughts about PLM software business models. About a year ago, I wrote about Faltered Licenses and Future PLM Business Models. I talked about Subscriptions, Advertising and Reverse models. Take a look on Simon’s slides and make your opinion.

What is my take on this? The engineering software is changing slowly. The dynamics are different from the consumer market where the idea of market pace was realized and succeed. I can see multiple reasons why it happens. The most important reason is what I call “a good enough” principle. Traditional manufacturers are very conservative. Software is just a tool for them to produce the result. Existing software can run these companies for years. At the same time, I can see signs of changes. There are two main reasons, in my view: cost and competition. In order to compete on the market, companies need to find more efficient software to get a job done. Engineering software market place can offer a diverse set of tools that can be used. However, the compatibility of these tools, data access and many other reasons can potentially lay down this idea. Leading companies in this space are thinking about market place and application granularity. I think next 5-7 years can show the potential of the realization of this model. Just my thought…

Best, Oleg

[tag PLM, COFES, Microsoft, Business Model]


COFES, PLM, BIM and Augmented Reality

April 15, 2011

The first day at COFES 2011 over. I hope, you had a chance to follow COFES 2011 via twitter (COFES2011). If not, navigate your browser to the following link. COFES is always a good time to have a conversion with bunch of really smart people. It gives lots of materials for inspiration and… yes, blogging. This afternoon I had a chance to attend pre-COFES session: Augmented reality: Practical Business Applications presented by Joseph Juhnke of Tanagram Partners. I posted about augmented reality before. You can take a look on my earlier post: The Role of Augment Reality in PLM. Back that time, I’ve seen some interesting augment reality implementations for virtual identification, virtual design, simulation.

I found today’s presentation made by Joseph very inspiring. Part of the presentation was dedicated to the presentation of pictures with possible use cases for augmenting reality from BIM and PLM space. Take a look on the following pictures and make your opinion.

What is my take? I think we are standing in front of a very big distraction in enterprise systems in general and PDM/PLM specifically. It is about changing “user experience”. In one of my tweets today I asked if “NUI” – natural user interface is a future. In my view, presentation of the information in a more natural way, can change a lot. “Augment reality” can play a significant role in making this change happen. Is it a time for PLM companies to re-think some of their UI concepts?

Just my thougths…

Best, Oleg


COFES 2011 Rountable Discussions

April 13, 2011

I’m out for COFES this week. It will start tomorrow. My blog and COFES have some common roots. COFES is an annual think tank event that brings executives design, engineering, manufacturing, architecture and construction industry to think and discuss the role of engineering technology in the future of their business. My blog started as a "think tank" discussion online. If you have never been at COFES before, I encourage you to visit COFES website. You can get an access to previous COFES materials. If you ask me, COFES is about two things: Networking and Discussions. I’m always coming from COFES inspired by many ideas. Roundtable discussions are one of the most interesting parts. Navigate your browser to the following link to see the list of discussions planned this week.

Here are few of them that resonate to me the most.

BWFC (Big White Fluffy Clouds) In 1994, Intergraph made a bold decision to move its customers to Microsoft Windows NT, forsaking all other operating systems in the process. With few exceptions, most other engineering-software vendors eventually followed suit and reaped the benefits of designing for a “single” platform. With the advent of the cloud, mobile platforms, the resurgence of the Mac (in engineering), and new GPU and APU platforms, that long era of vendors focusing on a “single” platform is ending. There’s a new, rapidly evolving landscape out there, and none of the platform targets are moving in a way that makes them easy to predict. What’s a vendor to do? Better yet, how can we prepare for a sure-to-come, but unknowable, emerging game changer?

I was blogging about cloud many times. Here are few of my thoughts about the cloud: PLM Vendors, IT and Cloud Strategies, CAD, PLM and End of Microsoft Dominance.

Innovation in the Face of Complexity. Joy’s Law tells us that we should look outside the firm for innovation. Why? Startups and small, nimble firms are less constrained by legacy issues; nor are they constrained by complexity. When an outside firm has an innovation, it can choose where to let the innovation run, unconstrained by our handcuffs. When we have an internal innovation, it is limited by our priorities and funding. Pioneering (innovation that opens new markets) receives distressingly low funding in mature firms, precisely because mature firms are designed to maximize revenue from current intellectual property. In other words, it is in the nature of mature firms to focus on things other than pioneering. But pioneering is not the only face of innovation. As firms mature and grow, complexity becomes a main constraint. What is the domain of innovation in this context? How can firms foster such innovation within the constraints of complexity? What opportunities are we missing?

After many years in this industry, I found PLM as something really complicated. Here are some of my thoughts about that -PLM Complexity: What Does The Future Hold?, PLM and the Collapse of Complex Societies.

“De-Siloing” PLM. Business assets are often generated within business silos, and often those business silos handle data in a way that is convenient for them, but not so convenient for the rest of the enterprise. What will it take to “de-silo” product/project data? Today’s PLM systems address some of this. What problems will need to be addressed by next-generation PLM?

In my view, problem of product data and silos is a critical one. How to make product data retrieval convenient to people in the manufacturing organization? How to help them to make the decision using "right data"? These are very interesting questions that closed to my heart. My new company, Inforbix is trying to solve this problem by developing Product Data Applications.

The Evolution of Social Media into Design and Engineering Practice. Many have considered the role of social media in PLM and BIM. Some have even tried to build a business around it. None have hit the mark, and the mark is rapidly moving. The expectations of those graduating from high school today (with their brains wired for continuous, multichannel, multitasked collaboration) are different than those of just a few years ago, and perhaps even beyond the comprehension of most in management. If we can’t provide them with the tools they consider as basic as water, we will lose them. At the same time, most of them haven’t a clue about the difference between the ideal and the reality of manufacturing. Social media is a must, but it will change the way WE engage, as it evolves into tools that meet the demands of future generations. How do we get there?

"Social" is trending and, in my eyes is going to change a lot in a way manufacturing and engineering companies are managing businesses. However, how it will happen? Will somebody develop "Facebook for Manufacturing"? Some of my blogs about that as well: PLM and Social Technologies Dating, PLM and Social Detours.

What’s on YOUR Critical Path? Richard Riff, Ford’s thought leader for the design and engineering process, has made the bold statement that “CAD is no longer on the critical path” at Ford. It’s not that CAD isn’t important, or strategic; it’s just that it’s gotten good enough that problems in other areas are more significant. Do you know what’s on your critical path? More importantly, what’s on your customers’ critical paths? What are you doing to release their bottlenecks? And once those get released, what’s next?

Also interesting, there is a special "bloggers-roundtable". Here is the short definition of this roundtable – A gathering of active bloggers (including business-tweeters) to discuss successful ways to improve what they’re doing: for themselves, for their firms, and most importantly, for their audience.

So, it is going to be a very busy week. I will be attending some of these roundtables and hope to bring these discussions to you in my blog.

Best, Oleg


NoPLM and Quirky Social Product Development

April 12, 2011

Social Product Development. I’ve been talking about that before. PTC Social Link, Vuuch, 3DSwYm. These are names led my previous conversations. You can take a look on some of my previous posts about this topic. It was all about how to improve collaboration and productivity leveraging technologies and experience coming out of social networking and Web 2.0.

Today, I want to bring a different perspective on what "social" means in product development. One of my readers sent me a link to Quirky. The idea of social involvement into the design process seems to me growing. Few examples led me to this place – Amazon Mechanical Turk, Engineering Services Market place GrabCAD and some others. Take a look on short video of Quirky and make your opinion.

What is my take? Product development is facing massive customization. This is what I was thinking about watching the video. "Social" is a tool to make it happen. The question what tools will be at people disposal to make it happen. This is not about "collaborative workflows" anymore. No PLM. This is about new products available online to make it happen… fast. Just my opinion. What do you think?

Best, Oleg

Freebie.


HP, PLM Cloud and Services Aggregation

April 12, 2011

Following my yesterday post about Facebook and data centers infrastructure, I thought it will be an interesting to discover more trends around enterprise and cloud. I read about HP Summit and about HP cloud strategy in the following article – HP Summit, HP’s Cloud strategy disclosed. Cloud is a hot place, and this is pretty much open these days. Companies are experimenting a lot, but there is no real solution out at market yet. Let think about manufacturing companies as, an example. These companies are running a big chunk of IT infrastructure and thinking about how to find what is the right pathway to the cloud. One of the ideas mentioned by HP in their disclosurewas the idea of aggregation. The idea of organizing transparent services to delivery various types of PLM functionality can be interesting. This is my favorite passage from the HP blog explaining HP cloud strategy:

“Build an open cloud marketplace to deliver cloud services and infrastructure solutions for businesses and consumers,” highlighting the fact we are delivering private clouds for enterprises, allowing them to consume cloud services in a secure manner, developing a public cloud offering and delivering many cloud services for consumers.

Complexity, Integration and Cloud

The pain of system integration in CAD/PLM world is not a new story. For many years CAD, PLM and ERP companies are building different type of solutions in this space. It was started from EAI (Enterprise Application Integration) strategies back 10-15 years ago, moved to various SOA/ESB related activities. PLM and ERP companies were acquiring companies and leveraging technologies coming from large IT companies to solve an integration problem.

The complexity of integration is growing. Few weeks ago, I had a chance to read a Cideon’s press release talking about the integration services to connect a new Catia V6 product to SAP by Cideon. This type of solution is not unique in my view. You can find similar products connecting TeamCenter to SAP made by Tesis and many others.

The question of solution migration to the cloud (private and public) can be interesting and challenging at the same time. The optimization and cost reduce can bring ITs of companies implementing PLM software to think about future migration.

Cloud Services and Aggregation

What will be the next move PLM companies make to simplify integration of their system within the enterprise? Few years ago it was SOA. Back that time, PLM companies were making bold statements with regards to their SOA architectures and frameworks. It seems to me "cloud services" can bring the next wave transformations. The question of security, multiple services and connection to public cloud will be on the table as the most important. PLM software will have to connect to private cloud inside a company, public cloud SaaS providers like salesforce.com, create a connection with with growing number of other cloud-based offerings. Aggregation of services can be an interesting strategy to solve these problems.

What is my conclusion? I think, cloud has a chance to shake enterprise software grounds in coming years. The activity of vendors like HP and others demonstrates that "cloud battle" is in front of us. PLM vendors and IT of companies running PLM software need to be prepared to this battle to identify the right "cloud pathway" for the coming years. Just my thoughts…

Best, Oleg


Social PLM and Facebook Data Centers?

April 10, 2011

Slow down… Facebook is not creating PLM yet. Facebook is growing their infrastructure. I read about Facebook Open Compute project. Navigate your browser to the following link and read about Facebook’s innovation in the area of cloud computing. Here is my favorite quote:

So what is it? Facebook is opening up the specifications and design documents that went into creating their customized servers and datacenters. According to Facebook, these are much more efficient than the industry standards out there right now — especially if you’re specifically building social applications. In fact, Facebook says their servers are 38 percent more efficient than the off-the-shelf ones they were buying previously. And that has meant a 24 percent cost savings

You can take a look on the video produced by Facbook:

What is my take? I’ve heard about multiple ideas how PLM can leverage social technology. This is the unusual one. Facbook data centers. Why it is important? I can hear a tone of openness in the way Facebook presents it. Is it a take on Google? Maybe… However, manufacturers and PLM providers are concerned with the security and talking about private cloud. The technologies demonstrated by Facebook can be an option to build a cost effective PLM cloud. Just my thoughts..

Best, Oleg


Microsoft Azure and Toyota Cloud: Should PLM Care?

April 10, 2011

I read the following Reuter article: Microsoft Toyota team team up on digital auto network. It made me think about cloud again. Time ago, I wrote about the connection between physical and virtual worlds. I can see Toyota and Microsoft are on the road to think about how to create a cloud network to support car operations. Here is an interesting quote:

Toyota is planning to set up a network based on Microsoft’s Azure "cloud computing" platform by 2015, which would allow customers across the world access to Toyota’s digital services, such as GPS, multimedia, and managing power on electric and hybrid vehicles.

What is my take? The cloud infrastructure is growing. Part of this infrastructure can be leveraged by software vendors. The ability to get an access a car’s operational parameters is a big advantage. To provide a way to optimize these parameters is a potential opportunity. Now, think about even more. The same Toyota cars used by Google for their self drive experiments. So, we have self-driving cars that can optimize their driving parameters. Dream? Think about iPhone back in 2000…

Jut my thoughts.
Best, Oleg


PDM. Pre-configured? Painless?

April 9, 2011

I want to get back to the topic of Out-of-the-Box PDM systems. The topic isn’t new. The following post by Jim Brown was a trigger for me to get back and discuss it. Jim posted: Can PDM Value Being Achieved Quickly? Painlessly? You can go to Jim’s blog and read about the research he did. In addition, you can navigate to the following link to upload the executive summary of the research for free. You can get the full report, but you need to be registered with Siemens PLM that provided their sponsorship to make this research done. Choose your download option and make your opinion, first.

I’ve been blogging about Out-of-the-box PDM and PLM before. If you haven’t had a chance to read my previous blogs on this topic, I can recommend you the following few links.

Out-of-the-box: Misleading of Focusing?
Why do I need to change my Out-of-the-box PLM?

In my original thinking, "out-of-the-box" option was created to simplify the initial introduction and implementation of PDM/PLM software. So, it was like a anesthesia you need to provide to a customer to help him to digest your application. Another concern that I was raising all the time with out-the-box option was about the ability of manufacturing companies to align with the environment. From my standpoint, engineering and R&D (majority of PDM implementations is going there) is the environment that hardly can be standardized. Joking about it, I’m saying "when you have two engineers, you have a potential to have three different opinions :) ".

How To Out-of-the-Box PDM function?

There are four major components of PDM system, in my view: Data Model / Vaulting, Revision, Identification, CAD / Integration. The question I’d like to ask if these functions can be predefined and used by any customer without modification? Let me put some analyzes about each of them.

Data Model / Vault. This function helps you to organize data. Usually, this is one of the most fundamental functions, and it defines the level of flexibility that implemented by the system. I’d be thinking about two aspects of data models in the context of PDM. One is related to CAD data. Another one is related to the management of Bill of Materials. The discussion about these two models and how they are related very often makes PDM implementation complicated. Vaulting function is straightforward and standard for many PDM systems these days.

Managing revisions comes next after vaulting. Companies have a temptation to customize the revision schema. However, the number of customization here is limited, in my view. On the other side, identification can be more complicated story. I posted before about document numbering, part numbering and identification before. These topics can be complicated and requires implementation skills and methodology.

The last one is simple and complex at the same time. You want PDM system to be embedded into CAD user interface. It started as a trend (10-15 years ago), and now it is considered as "must" requirement. However, this is still a challenge. The function normally worked well for PDM systems coming from the same CAD providers. At the same time, supporting "other CAD" systems can be problematic and require additional implementation skills.

PDM + CAD = ?

I can see a trend towards embedding PDM functions into a CAD system. First of this kind innovation came out of Dassault with the release of CATIA V6. PDM functions such as vaulting, revisions and some others are embedded. CATIA uses Enovia V6 to manage it. In parallel, I think other CAD vendors create successful bundles such as SolidWorks/EPDM, SolidEdge/TC Express, Pro-E/Windchill, etc. I wrote about this trend some time ago. Navigate your browser on the following link to read about it.

What is my conclusion? Engineers normally dislike PDM functions. They are trying to avoid it as much as possible. Therefore, PDM systems are not as popular when it comes to implementations. It requires time, cost and affect CAD functionality. However, the industry perception is that you need to have PDM to control your data. CAD vendors are trying to embed PDM functions into CAD packages and improve vertical integration between CAD and PDM packages. Can it be completely pre-configured and painless? I’m not sure. I think, the best PDM engineers can think about is the "invisible PDM". Just my thoughts…

Best, Oleg


CAD and PLM Vendor Website Traffic

April 6, 2011

Picture-14.pngI was playing around the data I can take from the website Compete.com. You plug the URL of major CAD or PLM vendor and get the information back for free. I found it interesting to compare. In today’s world online traffic can be one of the important elements of a company marketing strategy. Unfortunately, a free version doesn’t work with sub-domains, so some of the companies were not included into my experiments.

My first test was to put Dassault and PTC. These companies are on the top list also as CAD and mindshare PLM vendors. You can see that their traffic is pretty much compatible. You can see the result online navigating on the following link.

Picture-11.png

Following my discussion about Autodesk and their potential move into PLM (or MLP) space, my next experiment was to compare mindshare PLM vendors and Autodesk. You can see the result navigating the following link. Now, picture is more interesting. Autodesk and Dassault are companies compatible in terms of revenues. At the same time, Autodesk outperforms Dassault 10 times from the standpoint of traffic.

Picture-12.png

My last test was to poke one of the PLM challengers. I picked up Aras and tried to compare their traffic with Dassault. Unfortunately, Compete alerted me that aras.com has a low traffic rate. Nevertheless, I found that results interesting. Dassault and Aras are not compatible in terms of size, but their web traffic is pretty much compatible.

Picture-13.png

What is my conclusion? Few years ago, I was reading the book Numerati, by Stephen Baker. The subtitle of the book states – “the must read for anyone who wants to understand life and business in the Google Age“. If you have some free time during the week, read this book. I think, we are coming to the point of time, when the online influence will be become a critical for company business success. Newcomers can use it as power to enter to the business. Large companies can watch it, in order not to lose their significance tomorrow. Important. Just my opinion, of course. YMMV.

Best, Oleg


PLM and Post-PC Era

April 6, 2011

Picture-9.pngI found an increased trend of conversation around the "post-PC" topic. I found the conversation fascinating. Are we going to replace our PCs, workstations, laptops with mobile table devices like iPad 2? I’m not sure it is going to happen soon. I’ve been readingGartner’s prediction about PC market dynamics as well PC World article discussing the same topic. Nevertheless, I can see how mindshare PLM vendors are reacting on strong dynamics of tablet devices. Earlier last month, I posted 3D/PLM and iPad: Future or Baloney? I’m continuing to watch other CAD and PLM vendors coming to the "table" and introducing their iPad apps.

Early Adopters or Mainstream?

Autodesk was one of the first vendors coming to the tablet’s game. It started by introducingAutoCAD WS last year and followed by multiple additional Apps. In my view, Autodesk is still leading with the maximum number of various iOS apps. Dassault and SolidWorks came later this year and introduced3DVIA Mobile on iPad on SolidWorks World 2011 earlier this year. Few days ago, I found Siemens PLM introducingTeamCenter Mobility Apps. I found the following video interesting. Watch it and make you conclusion.

Mobile and Decision Making

I can see a clear trend to introduce mobile apps as something that drives to better decision making capabilities. It raises multiple use cases where end users are not necessarily needed to stick with the fully blown application tools on their PC to make a decision. I found TeamCenter app scope wider than other mobile applications introduced on iOS devices before.

What is my conclusion? I can see signs of post-PC era. I don’t think it means that we will replace our PC with mobile devices. However, it introduces a new dynamic in decision making that can help to accomplish their jobs, even if they are out of their desks. The new status quo can introduce a completely different set of expectations in front of PLM vendors these days. Important. Just my opinion.

Best, Oleg

Freebie. Siemens PLM didn’t pay me to write this post.


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