PLM Innovation Panel: The Future of PLM Business Models

February 24, 2012

PLM Innovation 2012 in Munich is over. It was a great event, gathered about 250 people and 20+ companies on the exhibition floor. On the 2nd day, I was delighted to moderate a panel discussing future PLM business models. The idea of the panel was to have an opportunity to discuss modern PLM business trends. I had a privilege to work with four amazing panelists - David Sherburne of Carestream Health, Leon Lauritsen of Minerva, Richard Murawka of PTC and Grant Rochelle of Autodesk. Please find slideshare presentation with my questions. Below, some of my notes that I took after the session.

PLM Platforms

The tone was placed by David Sherburne. David stated that vendors needed to share data and enable re-use of components. His opinion that most of the companies implementing “multiple donuts,” and it is very hard to co-exist. Amazingly enough, vendors confirmed that this is the most reasonable way. In my view, vendors sound less peaceful when customers are asking them in the “sales” mode (compared to discussion panel mode).

Do It Yourself (DIY) PLM and CoIT

The conversation about DIY was mostly about two trends “cloud” and “mobile”. Autodesk has an opportunity to say again that new Autodesk PLM on the cloud will soon revolutionize the PLM market, and services will be available to co-exist with the software products and modules on premises. In addition to that to topic of “complexity” was raised by PTC in a context of choosing “right tools for a job”. The last one make sense. However, in my view, it is not answering the question of how to address to the problem of smaller manufacturing companies.

Communities, Crowdsource and Open Source

Crowdsource is still a topic that needs to be better understood. I don’t feel comfortable talking a lot about it. There are multiple trends and options around the crowdsourcing. In my view, most of the vendors are in “learning mode”. Community and open source merged into a signle discussion. PTC mentioned open-source as a way for them to decrease the cost of solution by embedding new software. At the same time, Aras Cor. promoted their vision of Enterprise Open Souce and discussed how it affects development by introducing “product roadmap crowdsourcing” with the customer’s ability to vote for specific features in the roadmap.

Cloud and Autodesk PLM

I clearly didn’t want to miss the topic of the cloud and Autodesk. During the last AU, Autodesk made a very bold statement that Autodesk cloud PLM will be x10 time cheaper compared to traditional PLM offering. On contrary, the position of PTC is that we are not comparing “apples to apples” and there is no single definition of PLM. The hint was that Autodesk probably delivers “a different PLM”. In my view, cloud is a clear disruption. However, it will be interesting to see how Autodesk will face all cloud PLM challenges. However, the operational cost to deliver cloud PLM solution will be a fraction of today cost of traditional business. So x10 multiplier can become real.

What is my conclusion? It was great discussion. I hope to see video recording soon. I can see a significant amount of disruption in the market of PLM. Combined with many opportunities, it is an interesting time to watch. Stay tuned and speak your mind…

Best, Oleg


Autodesk, Vault and Multi-CAD

February 21, 2012

I’d like to continue my "multi-CAD and PDM" story. If you had no chance to read my yesterday post The Anatomy of MultiCAD-PDM integrations, please do it before continue. I want you to take some initial context from there. I’ve been talking with Brain Roepke, director of PLM and "father of Autodesk Vault". My interest was to learn more about Autodesk Vault PDM in the context supported CAD systems, Open APIs and openness.

Autodesk, Multi-CAD and Integrations with other PDMs

According to Brian, Autodesk is investing a lot in multiCAD capabilities. It comes in various capabilities and different applications. I’d like to to strict my coverage purely to Autodesk Vault. So, this post will not cover multiple translators and ability to read different CAD formats by various Autodesk products and for variety of purposes – visualization, simulation and many others. Autodesk Development Networks (ADN) allows you to have the ability to develop applications using AutoCAD, Inventor, and other Autodesk products. In addition to that, you may use 3rd party tools that allow you to access Autodesk files and formats. I found integrations with Autodesk Inventor, and AutoCAD developed for Windchill, Enovia, TeamCenter, SAP PLM and others. Some of the integration developed by vendors and some of them, by partners.

Autodesk Vault- foundation and APIs

Let me start from core capabilities of Autodesk Vault to be integrated with other applications as well as providing a platform for development. Navigate your browser to the following link – Autodesk Dev Center. Here is what written about Autodesk Vault there:

Vault makes use of Web Service technology, which greatly simplifies client/server communication. Fundamentally, the Vault API allows a program to interact with the Vault server component, also known as ADMS. In fact, Vault Explorer and the CAD plug-ins are built on top of this API. So you have the same level of access to server data that Autodesk clients have.

Following this you can learn that Autodesk Vault SDK is installed automatically with Autodesk Vault. According to Autodesk you don’t have to be ADN (Autodesk Development Network) member to use APIs.

Another interesting functionality I learned about was Vault Attachments. Navigate to the following link to learn more. What was interesting is that Vault Attachments can be used in order to have Vault to use rules based on the association between files. The following passage, actually, explains this capability:

You can add attachments between any two or more files within the vault. Attaching a file to another in Autodesk Vault creates an association between the two files in the vault. Using attachments, you can check out all the files that are linked together and work on them as a unit, regardless of the applications that created the files. For example, you may want to attach a set of images to a Microsoft Word document if the images are linked to that file. In a design environment, you may want to assign a relationship from a document that represents assembly instructions to the actual CAD assembly files.

I can recommend you the following blog post – 6 hours of videos of Vault API, which contains quite good collections of videos you can use for training. It includes presentations and code samples by Doug Redmond.

Autodesk Vault and Other CAD systems

I’ve been searching for integrations of Autodesk Vault with major CAD systems of competitive CAD/PDM providers – SolidWorks, CATIA, Pro-E / Creo-Parametric, SolidEdge and NX. Here are few videos shows examples of these integrations.

Autodesk Vault and SolidWorks

Autodesk Vault and Pro-E

Autodesk Vault and Bentley Microstation

What is my conclusion? I found multiple ways to develop Vault PDM integration with CAD systems. Some of them requires API and development. Some of them can be done just by product configuration. I believe in such a thing as "integration", devil is in details. It sounds like Autodesk has an intent to be open. More APIs and Web Services approach supported by Autodesk Vault provides a good foundation for that. Just my thoughts… I’m looking forward to learn more from comments and discussion.

Best, Oleg

Disclosure: This post was reviewed by Brian Roepke before publishing.


Multi-CAD and PDM: Dead Lock?

February 17, 2012

This post was provoked by twitter conversation between me, Jonathan Scott of Razorleaf and Brian Roepke of Autodesk. Let me give you a context. During SolidWorks World general session yesterday, Jonathan commented about comingSolidWorks EPDM integration with DraftSight – free CAD software for your DWG files. I thought, it might be beneficial to have DraftSight integration with Autodesk Vault. However, it appears to be a mistake. Watch that…

This conversation made me think again about what happens in the space of integration of product data management products and design software. Time ago, I posted – Immersive CAD management: is it the CAD / PDM future? Another post related to the same topic was – Back to basics: Multi-CAD and PLM. Last year, I posted CAD, PDM and PLM diversity. What I found common between all these cases is that I can see more and more stable bundles between CAD and PDM systems.

I can see an increased demand for better data-management functionality in CAD systems. The integration of data-management applications increased over the past 2-3 years. Vendors started to think about PDM functionality like revision management and vaulting as a standard function in CAD applications. Dassault V6 took this process even future and introduced CATIA V6 bundled with ENOVIA server.

In my view, CAD-PDM integration played a significant role in the first wave of broad PDM adoption. Multi-CAD support was (and still is) considered as an important function of PDM (and sometimes even PLM) system. To support heterogeneous environment, pure play PDM/PLM vendors must include multi-CAD support. It happened almost to all vendors in PDM/PLM space. On the opposite side, CAD/PDM vendors decided to strength their bundles and prefer to integrate data-management systems only with their own CAD systems. In my view, Multi-CAD integration is a painful issue for pure-play PDM/PLM vendors like Arena, Aras and future others. The complexity of CAD integration with PDM and PLM systems create a significant competitive advantage for CAD vendors to bundle their own PDMs right. At the same time, PDM providers from CAD vendors are less interested to provide support for "non-home-based" CAD systems.

What is my conclusion? I can see a certain dead-lock between the need for multi-CAD PDM systems and interest of CAD/PDM vendors to protect their business. Customers are demanding PDM systems like TeamCenter, Autodesk Vault, SolidWorks EPDM to support Multi-CAD features. However, it looks more and more like a dead-lock. PDM system will be embedded into CAD environment and will become part of the whole design environment. It doesn’t mean new innovative companies won’t try to break this dead-lock. Just my thoughts…

Best, Oleg


Software Vendors and PDM/PLM Evolution Steps

February 9, 2012

Earlier this week, I had a conversation with engineering IT manager of a manufacturing company. Without mentioning names, we’ve been discussing how manufacturing companies are adopting technologies in general and PDM/PLM technologies specifically. According to him, software companies largely misunderstood the way manufacturing companies perceive technology adoption. The conclusion we made, was that manufacturing companies are very slow to adopt any technologies. One of the key factors that impacts future evolution of PDM/PLM technologies will cost of implementation and changes. This conversation made me think about what will be the evolution of PDM / PLM systems for coming decades.

Cloud, Unification and Integration

I can define three things that will lead future evolution in PDM / PLM. It is unification, integration and cloud. I wrote about Unification and Integration few months ago. Navigate to the following article – From PDM to PLM: Unify or Integrate? to have a sense of this topic. The reality of manufacturing companies today are that they have lots of different software packages implemented. Siloed approach was dominant in the last two decades. The question of how to move forward to the next level is actively debated by many software vendors and customers. One of the options is to move to unified systems. When it sounds like an interesting option to cut cost of integration, the overall cost of migration stops many companies from taking this approach. On the other side, affordability of cloud-based software sounds like a good reason to move one and offer new type of solutions with a fraction of cost.

4 Steps of PDM / PLM evolution

In my view, cloud (private and public) will be playing a key role in the evolution of future PDM/PLM systems. On the diagram below, I pictured how I see the evolution of PDM /PLM systems. Four steps show how I think systems will be migrating from pure “on-premises’” solution to full cloud adoption.

PDM / PLM Evolution

 

I wanted to bring 3 factors that will become critical to define vendor’s success in this evolution – cloud/on-premises balance, system integration and file content migration to the cloud. Let me talk separately about each of these factors.

Cloud / On-Premises balance

The adoption of new technologies and products is very slow. Because of that, manufacturing companies will have to balance long time between existing and new solutions. The ability of vendor to bring systems gradually to solve real business needs in an affordable way, will be a key to success. Nobody will be able to replace all systems in a single shot.

System integration

I’ve been stated it many times already, but again, the ability to integrate cloud and on-premises solution will be another key capability. Today, the integration is very messy. It is costly and, in most cases, causes data duplication with a lot of inefficiency. The ability to build linked data grid of integrated solutions will create a competitive advantage for software vendors to introduce new PDM / PLM solutions and minimize implementation cost.

File Content migration

The absolute majority of product information such as CAD data is located on premises today. With the introduction of new solutions, this content will have to migrate to cloud in order to become available also for people (globally) as well as to be re-used by different cloud and on-premises solutions. The effectiveness of this migration is another key factor to success.

What is my conclusion? I see next 10 years of PDM / PLM evolution as a very interesting time. Old technologies and software packages will retire and new will be coming. What will be the future of PLM platforms is an interesting question. This question needs to be answered by well established PLM vendors like Dassault, Siemens, PTC and by newcomers such as Autodesk. Smaller companies will innovate to provide PLM solutions and technologies that potentially can disrupt and, at the same time, provide a competitive advantage to future evolution of PDM / PLM platforms. What is your take? Speak your mind, please…

Best, Oleg


PLM and Amazon Enterprise Cloud

February 1, 2012

An interesting addition to my yesterday post about technological options for cloud PLM. I was reading Amazon’s announcement that came earlier this month – Amazon separates servers from IP addresses. Navigate to the ZDnet UK Blog article “Amazon Separates Servers From IP Addresses to read more. Here is how this feature explained in Amazon blog:

Today we are adding additional flexibility to EC2 instances running in the Virtual Private Cloud. First, we are teasing apart the IP addresses (and important attributes associated with them) from the EC2 instances and calling the resulting entity an ENI, or Elastic Network Interface. Second, we are giving you the ability to create additional ENIs, and to attach a second ENI to an instance (again, this is within the VPC).

On the picture below you can see how Amazon explains the topology of EIN.

Cloud PLM

There are two CAD / PLM vendors officially announced their support for cloud – Autodesk and Dassault. Nexus 360 PLM is a cloud PLM coming from Autodesk later this year. Dassault ENOVIA is a flagship product sold by Dassault. Another PLM company claims their support cloud is Aras Corp. I haven’t heard any specific cloud plans from Siemens PLM and PTC. If you’re in discussion with your CAD / PLM vendor these days, you better check if product cloud configuration supports EIN.

What is my conclusion? Even the article is a bit on a technical side, I found it quite important. Cloud is moving towards having more and more “enterprise features”. This is a reaction of cloud providers on the coming demand from enterprise IT to accept cloud usage. The critical question that wasn’t answered was about the cost. Cloud attractiveness is dependent on cost structure. Cloud providers will have to charge an additional fee for enterprise features. Will it be still attractive for company IT? A big question. The architecture of cloud systems is in a very early beginning phase. You better check it carefully with your vendors and/or partner. Just my thoughts…

Best, Oleg


Cloud PLM and IT Basic Instinct

January 27, 2012

The amount of publications about PLM and cloud is growing. This is not surprising me. There are two reasons to that. Cloud is clearly hyping. Second – major player such as Autodesk is making their move towards the cloud. Carl Bass, Autodesk CEO announced that today’s technologies allow to Autodesk to come with a reliable and affordable PLM system. Almost at the same time, during DSCC 2011, Bernard Charles is announcing that DS invested about $2B in the development of the most sophisticated online cloud platform in the word (he was talking about Enovia platform).

I was reading ECN article Seeing Past the Clouds – PLM and what’s What? by Eric Marks. The article is speaking about trends in the cloud PLM and four possible strategies: public, private, community and hybrid. I can clearly understand the difference between public and private (read one of my previous posts – PLM Cloud: dedicated, private, public). However, the concept of community cloud is a bit complicated, since it is point on how cloud services will be used, rather on if it goes to public servers and multitenant opposite to private server placement. At the same time, I found the passage about "hybrid cloud" the most interesting. Here it is:

And lastly there are “hybrid clouds” where a private cloud can extend onto a public cloud for specific activities and on an as-need basis. The benefit of a hybrid approach that incorporates a public cloud is that it provides extra performance scalability for the private cloud that would be in use.

I can clearly see how it can make a difference. I’m sure you’re familiar with Basic Instinct movie. Let me make an association with IT. The basic IT instincts are control and cost. As I’ve been told by IT people in one of the manufacturing companies in Mid West – if the cloud is be more cost-effective for effective for us, we will be moving towards the cloud. Otherwise we stay in our racks. Hybrid model allows to keep IT on premise and extend to cloud in order to have a cost effective expansion and scale. It sounds like something that can keep everybody happy and, at the same time, it is clearly Trojan horse that cloud providers will put in organizations. As soon as such solutions will be running in production, rest of the game for cloud providers will be to leverage the economy of scale and not to blow up "security" red-herring.

Another passage from ECN article practically confirms that.

According to Edward Quinn, Mevion Medical Systems IT Manager, “to do this, Mevion is leveraging a “hybrid cloud” in order to be able to scale quickly and efficiently to distributed cloud data centers at far less cost than purchasing expensive equipment or renting/building out corporate data centers. The IT department can leverage the advanced international infrastructure already in place by leading cloud computing companies and activate and pay only for the services that its business needs.”

What is my conclusion? There are many reasons why companies can decide to move towards the cloud – better collaboration, ease of install, mobile, and many others. However, the cloud fundamental is about how to drive costs down using the economy of scale. PLM won’t be an exclusion from this game. In order to move towards that, vendors need to pass "IT police" in every organization. Hybrid cloud looks like a good weapon leveraging IT basic instincts. Just my thoughts….

Best, Oleg


CAD & PLM CEOs and Social Channels

January 22, 2012

Brian Shepherd joins twitter. Earlier this week, I learn from Alan Belniak (@abelniak) twitter, that he helped Brian Shepherd at PTC to get going on twitter. First of all – welcome on Twitter, Brian! This event made me think and search for other CAD / PLM execs on twitter.

The topic about what is the appropriated “social level” for CEOs and other execs is widely discussed. Many blogs and books provide multiple recommendation about how to manage an appropriate social CEO image. Navigate to the following link to read series of Forrester posts – Social CEO. You can find many other publications about the same topic. Speaking about execs on social channels, I can bring quite interesting publication about Google’s execs on Google+.

Carl Bass, Autodesk CEO is on twitter, and I can confirm he is a real person. I followed his tweets during past AU2011 and can confirm he is real on twitter.

I found an interesting twitter account – Jim Hepplemann Ghost. The account is actually real fake of Jim Hepplemann.

I didn’t find twitter accounts of Bernard Charles and Tony Affuso.

What is my conclusion? I think the decision to join social channels is personal and corporate at the same time. The most important is personal commitment. Forrester provided reasonable recommendation, in my view. So, I’m glad to see “social CEOs” and other execs and, at the same time, can understand others. Just my thoughts… YMMV.

Best, Oleg


Process Simplification – the next goal for PLM companies?

January 6, 2012

It was a long time I didn’t talk about process management. The importance of process management is obvious. One of the main questions, companies are asking for is how to make process management more efficient and less complex. For the last 5-6 years, PLM companies put a lot of emphasizes behind the process improvement. Almost two years ago, I wrote – PDM vs. PLM: A process perspective. The ugly truth I discovered is that PLM vendors took "process orientation" as the next "sales tool". It is much easier to explain what system does for organization using "process language". At the same time, it is very complicated to provide a solution for efficient process management.

Most of PLM "process implementation" were about workflow and process tasks orchestration. One of the biggest challenges vendors are facing related to the level of process diversification in every company. Main element of process customization is actually the tool (process designer) you have at your disposal to define and manage processes. Some time ago, I posted -PLM processes: flowchart vs. rule-based. Take a look on this article, please. I’m bringing few examples how existing PLM solutions are solving "process and workflow" management challenges. Definition of a process in more traditional (flowchart way) can create multiple problems that preventing process management to be simplified. On the opposite side, rule based processes can get very complicated to understand and requires almost programming skils.

Lately, I found two examples of companies that working toward trying to simplify process management. One of them is PLM solution from Autodesk (Nexus PLM) introduced during AU 2011 last month. Second solution is related to a new company Kenesto.

Disclosure. I had a chance to speak with both Autodesk development team and Kenesto team about their solutions. Some of the information I have about these products cannot be disclosed in this blog because of NDA. I also advising Kenesto on PLM related topics.

Nexus PLM – simple, but insanely flexible

Slowly, but surely vendors are starting the understand the importance of the simplicity. However, in practice, it is very hard to understand how vendors plan to make it happen. About a month ago, I was watching a preview presentation about Autodesk Nexus PLM at AU 2011. Here is a screen shot of the future Autodesk cloud PLM solution. Autodesk is focusing on simplification. It is still hard to make a conclusion about the level of tool simplicity. Nevertheless, you can make your prediction.

Kenesto – new kid in the block

This is a new company on the PLM horizon. Actually, Kenesto is not brand new. Back-roots of Kenesto take you to another "simple PLM" solution announced about two years ago PLM+. I had a chance to post about them – PLM plus user experience minus complexity on demand. When Kenesto website is still under construction, you can download and read Kenesto white paper. Here is what you can read in Kenesto white paper:

Kenesto starts with a design tool that anyone can use. Kenesto’s powerful process designer uses a universal (and simple) set of graphics to allow a user to rapidly tell the system what he or she wants it to do. The screen snippet below shows how easy it is for people across the enterprise to create and participate in very sophisticated processes.

It is hard to say from only seeing this picture what is the efficiency of Kenesto process designer. On the surface, you can think about some similarity with other process management tools. However, it is user experience that matters in such cases.

What is my conclusion? Process management simplification becomes a very important imperative for PLM vendors. If it is done right, it can provide a clear differentiation. Most of PLM systems have a decent process management foundation. However, the real question is how to combine it with an efficient user experience and right level of flexibility. Just my thoughts…

Best, Oleg

Freebie. Kenesto and Autodesk didn’t pay me to write this post.

Picture by vichie81 / FreeDigitalPhotos.net


Cloud PLM and Service Channels

January 6, 2012

About a year ago, I published my post – Will PLM Channels Survive The Cloud Era? Back that time, it was my answer to the growing amount of voices about so-called “cloud killing channels”. My conclusion was that re-sellers and service companies will be changing their priorities to answer on growing demand of implementation consultancy. Earlier today I was reading the announcement by Symetri - Symetri Appoints Fulthorpe to Head Up New Consulting Services Wing. Navigate to the following linkto read the article. I noted an interesting quote:

The new Symetri Consulting Services business stream will initially focus on several key areas: the integration of engineering data management systems with other downstream business systems such as ERP/MRP; helping customers adopt sales configurators or Engineer to Order Systems (ETO); Autodesk cloud based services and the implementation of dynamic simulation, CFD and FEA processes into customers engineering design workflows.

Clearly, this is an answer on Autodesk stepping into “PLM cloud game”. As I stated few days ago in my Inforbix blog about on-premise / cloud connection, introducing cloud solutions can raise a wave of integration services. The challenge of service companies and implementers is to learn new field and adopt web and cloud technologies to serve manufacturing companies demands. The potential danger is to migrate existing integration work to the cloud without making any optimizations.

What is my conclusion? I have no doubt, introduction of new cloud solutions won’t reduce the amount of services and implementations. So, first, it is a good news for VARs and service providers. At the same time, cloud solutions will set a different “price” demand in front of vendors and partners. To re-organize to a new pricing structure will be another challenge. Just my thoughts…

Best, Oleg


My First Take on PLM Cloud Maturity Model

January 4, 2012

The beginning of the year is a good time to think aboutBHAGs (Big Hairy Audacious Goals). Cloud was one of the dominant topics for the past two years of blogging on PLM Think Tank. So I decided to make a step up and think beyond one-page blog article. Two publications inspired me to do so -Tech-Clairty publication A maturity model for Product Data Accessibility and Oracle whitepaper - Cloud Computing Maturity Model. It made me think about how to summarize the current state of PLM industry and the development of cloud solution into something that will make a practical sense for manufacturing companies and help them to decide about their PLM cloud strategies.

Actually, I found interesting the fact cloud PLM was around for the last decade. Arena Solutions was pioneering PLM on the cloud since early 2000s. Recently, I figured out that Arena Solutions (original name – BOM.COM) passed multiple transformations on their way to position their product and strategy. In the following video, Eric Larkin (Arena’s co-founder) explains how Arena passed from the original idea of BOM.COM via PLM on Demand to the cloud BOM and change management on the cloud

I found very interesting to listen and compare Larkin’s talk to Steve Bodnar’s intereview explaining Autodesk Cloud PLM approach. In my view, Autodesk is clearly playing a role of “fast-second” by trying to learn from mistakes of PLM industry and advantages of cloud technologies.

Crowd-sourcing and Maturity Model development?

Here is my challenge. I want to apply the idea of a crowd-sourcing via blogging to the development of PLM cloud maturity model. I will be publishing PLM cloud maturity model in the end of each month and learn from comments and feedback with a hope to come something meaningful at the end of the year.

What is my conclusion? A short conclusion is mostly related to two videos I shared with you. It is interesting to compare Cloud PLM as it perceived by Arena Solutions – company pioneered cloud PLM solutions for the past decade and dominant CAD vendor taking advantages of the resources and learning from the experiences and mistakes of last 10 years of development. I’m looking forward to hearing back from you about what do you think about cloud adoption and PLM cloud maturity model. I hope it will be an interesting journey… Just my thoughts.

Best, Oleg


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