Cloud PLM and disruptive technology economic impact

June 14, 2013

We love word “disruptive”. It is so nice and tasty. However, very often, we use it without thinking twice what does it mean. Read materials from many startups and large companies – you found lots of statements about “disruptive technology” or “disruptive innovation”. Wikipedia article provides a very decent definition of what disruptive innovation and technology mean.

A disruptive innovation is an innovation that helps create a new market and value network, and eventually goes on to disrupt an existing market and value network (over a few years or decades), displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in the new market and later by lowering prices in the existing market. The term “disruptive technology” has been widely used as a synonym of “disruptive innovation”, but the latter is now preferred, because market disruption has been found to be a function usually not of technology itself but rather of its changing application. Sustaining innovations are typically innovations intechnology, whereas disruptive innovations change entire markets.

I’ve been reading McKinsey Names the Most Over-Hyped (and Under-Hyped) Major Technologies Out There article earlier this week. McKinsey made an analyzes of projected economic impact of disruptive technologies. I found the diagram interesting.

Navigate here if you want to read a full report. I also found the following passage notable.

In its latest report, MGI set out to answer an even more unanswerable question: What will be the economic impact of the dozen most “disruptive” technologies, including utility devices that talk to each other, cars that drive themselves, and printers that can print printers? Their summary graph is the image that kicks off this post. In a sentence: There’s mobile Internet, and then there’s everything else.

What is my conclusion? To predict a future is one of the most risky things. McKinsey ranked cloud as #4 by a potential economic impact. In my view, cloud can make a difference. Will cloud drive future difference of enterprise software and PLM systems? Pure speculations… Nevertheless, I like McKensey’s numeric approach. PLM vendors must take note – the time of fluffy marketing is about to end. Data first. I’m looking forward to see numbers presenting an economic impact of cloud enterprise systems and to compare with a traditional enterprise software stack. Interesting time. Just my thoughts…

Best, Oleg


GPS, PLM, BIM: Plan the Next Leapfrog?

November 4, 2009

Picture 37You probably wonder – GPS, PLM, BIM… What do they have in common today? In my view, the common is their relationship with real objects of a physical world around us. GPS can position us and give us a direction in surrounding world, CAD/PLM is the universal mechanism to design everything, PLM and BIM respectfully are set of product and tools to organize processes around product design, manufacturing, building etc.

For years engineering and building systems like CAD, PLM, BIM was completely disconnected from a real world. I always had the feeling of separation. This is like a wall between engineering and rest of the company. You (engineers) can use any systems you want, design and plan whatever you want… The real things will be disconnected from this virtual engineering world. Not anymore in my view. Few announcements and publications drove me to think about future leapfrog in this space.

Google’s announced first Droid phone with Google Navigation System. You will ask me how it related to PLM? Not as much, for the moment. However, thinking in deep and applying some PLMish language you can see Google providing 3D application connecting physical driving experience and virtual world model based on Google Maps.

Another one – Google SketchUp. On the surface, there is nothing special. I used to hear from many engineers their opinion about this product as a toy, far from “Real CAD” systems. Slow down, please. Keep your engineering ego for the future. Google is using SketchUp to re-create the world in 3D on top of Google Map. Google 3D Warehouse is a very good example of building blocks in this 3D universe. Read more in about Google Building Maker in Google official blog.

Some business thoughts. You need to see the following article: Google Redefines Disruption: The “Less than Free” business model. This is not the first time when we see the power of free products. I’m almost hearing engineers that saying – but this is not for the real enterprise world, this is on the different planet. Not anymore, in my view. Connection between real and virtual happens much faster that you can think about it.

So, conclusion for today. I’m thinking about immersive world where design, engineering and real people are all connected to dream, design, plan, build and manufacture life around us. And, in my view, this is a perfect time for today’s CAD/PLM/BIM vendors to think about a future of their products. How to catch up before Google’s next leapfrog? Just not to find themselves in place of GPS manufacturers today.

Picture 35

Just my thoughts.
Best, Oleg


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