Who will take on PLM legacy data?

August 20, 2013

Legacy data it painful. Speak to anybody in the business of PDM/PLM implementation and they will tell you that importing existing (aka legacy) data is complicated, time consuming and after all very expensive task. It can easy cut your implementation profits and to increase project time. In past, I was blogging about legacy data problem, different types of legacy data and main options to solve the problem. Navigate to this link to refresh your memories.

However, legacy data problem is much bigger than PDM/PLM only. ZDNet article – Business intelligence, tackling legacy systems top priorities for CIO. The article speaks about the fact "legacy data problem" is climbing up to the top CIO priorities these days. For them, legacy data is the information stuffed in file cabinets and Excel spreadsheets or buried in antique data management systems company built and/or acquired for the last two decades. These systems are sitting in corp data centers or (sometimes) under the desks of employees. I found the following passage interesting:

Business intelligence projects are the top priority for government CIOs this year, followed by plans to strip out legacy systems. According to analyst Gartner, government IT organizations are expecting their budgets to have a modest compound growth rate of 1.3 percent through to the end of 2017, with increased spending on IT services, software and datacentres likely to be fuelled cuts in internal technology services, devices and telecoms services.

Manufacturing companies are interesting outfits when it come to legacy data problem. The years of CAD/PDM/PLM implementations, heavy customization and product modernization created a unique system zoo. To maintain these system is a very expensive task. To make changes in existing implementations is complicated. It slows business and blows up IT budgets. This is where "strip out legacy system" becomes a priority for IT.

What is my conclusion? The traditional PDM/PLM (and not only) business practices is to come with new solution and try to ignore the existence of legacy data. Very often it becomes a problem of customers and (for the best) implementers and service providers. My hunch is that companies and products showing value prop around legacy data can get some traction in CIOs corner offices. Systems that able to handle legacy data can have a competitive advantages these days. Just my thoughts…

Best, Oleg

PLM Cloud Concerns and Dropbox Reality for Engineers

December 4, 2012

Last week at AU, I attended Innovation Forum – The Reality of the cloud. The presentation made by Theresa Payton of Fortalice LLC caught my special attention. It was about security. Check later here. Security is loaded and complicated topic. Physical security is one of the top 5 concerns of customers related to the decision of using cloud services. Even if consumption of online services is growing crazy, companies are very careful in placing their missing critical data assets to the cloud. Especially when it comes to IP (intellectual property). Navigate here to read what SearchCIO blog is saying about that. You need to register to read full article. The following passage is interesting:

To be sure, some cloud services are pretty lightweight, such as filling out a form to schedule an online meeting. But for mission-critical applications or storing data in the cloud, you need to ask tough questions: "What does their data center look like? Are they willing to show you a diagram? Backup plans? Security documents?" asked Jessica Carroll, managing director of IT for the United States Golf Association, which uses the cloud for business continuity, as well as for collaboration with 1,500 golfing associations nationwide.

Contact any CIO in the industry and his team will drain you down with the endless list of questions about security. However, here is a news for you, Mr. CIO. I don’t know if you are aware, but 34% of your engineering staff is placing data on the cloud in their Dropbox accounts. What is more surprising – half of them are aware they are doing it against the company rules. Navigate to the following link to read more and see some diagrams – Guess what Mr. CIO? One in five of your employees uses Dropbox at work.

One out of five of 1,300 business users surveyed said they use the consumer file-sync-and-share system with work documents, according to new research by Nasuni, an enterprise storage management company. And, half of those Dropbox users do this even though they know it’s against the rules.

However, the fact employees are putting files in the Dropbox is just half of the problem. Since they are using private accounts, the information remains there even after an employee is leaving the company.

“The sensitive data stored in Dropbox is not secure and just as importantly, not controlled by IT. This means that if an employee leaves the company, the information that [a] user has stored goes with them, creating a significant risk of data loss or exposure. Furthermore, as the amount of sensitive corporate data stored in Dropbox increases, the online file-sharing service will become a more attractive target for hackers and other malicious groups.

What is my conclusion? Think about PLM and Excel. Who won the game? I think the answer is clear – Excel. Each time, PDM/PLM software was incompetent to provide a reliable solution, Microsoft Excel won PLM competition. Now, guess what? If company and corporate IT continue to abuse users’ demand to have flexible and easy access to information, the information flow will go from proprietary data and file servers directly to Dropbox and similar "easy to use" cloud services. Companies need to pay attention. Just my thoughts…

Best, Oleg

PLM and Process Tools: Opportunity or Complication?

January 18, 2012

I’d like to talk about BPM again. I was writing about BPM in the past. Navigate to this link to take a look on few pasts topics related to Business Process Management. Almost four years ago, I asked a question – Should PLM develop its own process tools? I think, the question is still not answered. Here is a quote from my historical article about what is the place PLM can take in the BPM game:

So where does PLM play into this game? I see two possible options: (1) PLM providers will focus on the development of process management tools; (2) PLM providers will allow the integration of PLM information and IP (Intellectual Property) into existing process tools provided by platforms. I believe that option (1) will be very helpful in integrating PLM systems into the enterprise software already available within the vast zoo of software within the organization, option (2) can simplify deployment and and keep the implementation of PLM simple.

I was reading Beth Stackpole Design News article PLM startup targets efficiency. It is a short article. Have a read and make your opinion. Don’t miss also comments to the article too. Based on what Kenesto is saying, manufacturing companies are still looking for good process management solutions. I found the following passage interesting:

…PLM’s tight ties to CAD still limit its use beyond engineering — a fact Kenesto is hoping to avoid with its process-automation-for-anyone approach…. traditional PLM is basically a process automation tool that is too complex to use effectively, prompting many users to circumvent it, using spreadsheets or email to share critical product data….Kenesto isn’t a replacement for PLM systems, but rather a different approach for solving the process automation piece of facilitating engineering workflows. Kenesto, which is cloud-based software, employs conventions that most users understand, like sending and receiving attachments, so it feels in many ways like a familiar email system…

The idea seems to me simple and interesting. Kenesto will be on the cloud, disconnected from CAD, providing graphical DIY tools to engineers to route documents and messages.

BPM and PLM: Integration Complexity

One of the biggest problems of BPM in the past was a problem of integration. Tools like SharePoint, WebSphere, and many others provided quite powerful solution to support processes in your organization. However, when companies tried to implement it, organization faced significant complexity to integrate existing “content oriented” systems (i.e. ERP, CRM, PLM) with process management tools (BPM). Most of BPM tools ended up acquired by large platform tools, and you can find them as part of larger platforms.

What is my conclusion? It seems to me “cloud” is a game changer in Kenesto play. By introducing solution in the cloud, Kenesto will try to simplify the process of integration with existing CAD, PLM and other enterprise tools. DIY approach can simplify IT life in organizing engineering processes. At the same time, it can introduce a challenge for IT trying to rule application and business processes and not interested to give it up to end users. The simplicity claimed by Kenesto can be another game changer. Kenesto is searching for beta customers. You can read more here. You can watch Kenesto in action to prove it right. Just my thoughts…

Best, Oleg

Disclosure: I’m serving as an external advisor to Kenesto


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