Clarity on PLM

I had the chance to talk with … CogniStreamer about their innovation portal as a part of some front end of innovation (FEI) research I did in preparation for Aberdeen’s Leadership in Product Development Summit. Cognistreamer is one of a number of vendors that I believe can play a role in helping manufacturers leverage social computing technologies for innovation. I am still formulating my views on the rapidly evolving landscape of software for product innovation, I hope you find my perspective useful (and I look forward to hearing yours).

What do they Do? (OK, this is really more on “Idea Management,” skip ahead for what Cognistreamer does)

Cognistreamer is one of a number of vendors I have looked into that fall into the “idea management” space. I was talking with a friend today about the need for a framework to represent idea and innovation-oriented software. It seems to me that I should start segmenting the space into different categories such as: Ideation, Incentives/Rewards Management, Scoring/Filtering, Concept Collaboration, and Business Case Development (which would then tie into Product Portfolio Management (PPM) and Value Management). Of course then I would have to add in segments for IP Management and Innovation Process Management. No matter how I segment it, I am sure there will be dissenting views (please share yours if you have one, I am open to ideas). See more of my views on idea management software in my post on software vendor Brightidea. OK, it seems like I can’t start a post on this topic without a diatribe, thanks for bearing with me.

What do they Do (post diatribe)?

So back to the point. Cognistreamer does not call themselves idea management, but instead offers “innovation through collaboration.” The solution is designed to harness and mature collaborative ideas. In my conversation with Ron Shulkin, VP North America, it was clear that they understand the issue that manufacturers don’t just need more ideas – they need to get to the better ideas quickly. Cognistreamer provides the ability to start with challenges that offer strategic guidance to innovation efforts. The guidance helps companies focus innovation effort on specific topics (if desired) through challenges. Then, they leverage social computing technologies to “collaboratively filter” ideas through algorithmic social science that scores ideas based on a combination of votes and participation to allow the good ideas to move to the top.

Beyond the idea stage, Cognistreamer progresses ideas through a SWOT (strengths, weaknesses, opportunities, and threats) analysis and further to a feasibility study. In this way, ideas can be advanced and promoted from step to step in the innovation lifecycle. What’s interesting is that Cognistreamer bases these promotions on the social scoring algorithm, again to allow the best ideas to move forward. The process steps and the scoring mechanisms are user-defined and can change based on campaign, a very unique approach. Throughout the innovation process, Cognistreamer employs expert reviews and collaborative assessments – an interesting use of social computing that leverages the community to help mature the idea into a concept that is ready to be reviewed in a portfolio.

What do they Offer?

The Cognistreamer product is the Cognistreamer Innovation Portal. The solution offers some interesting features including tag clouds, similarity search, and collaborative filtering based on votes, participation, and activity. The solution also provides the ability to follow ideas, and receive alerts for new activity and comments. The portal is integrated with e-mail so that users can interact with the system in their own environment. This also allows remote use, providing links to smaller web pages that can be viewed and acted on effectively using a smart phone. Some other unique features pointed out by the Cognistreamer team include “persuasive design” features that engage portal visitors on the most important topics and support for deployment in multiple languages. There is also a module called “Listener” that polls the web (including social media sites like Facebook and Twitter) for key words and automatically brings related information in as new ideas. Pretty interesting approach, and one I haven’t seen elsewhere.

Who do they Work With?

Ron explains that the solution can be used in many industries, but that about 75% are international manufacturers. Cytec Industries (specialty chemicals and engineered materials) and Case New Holland (agriculture and construction equipment) are listed on the website. Additionally the company says that Bakeart (metals and materials) has over 40,000 users, in addition to other manufacturers like Vestas (wind power). Cognistreamer is a Belgian company, and has mostly a European customer base.  The company is focused on the US market, however, and has six pilots started in the US this year.

So that’s what I hear from Cognistreamer, I hope you found it useful. What do you think? What else should I have asked them? I have talked with others about this as well, including Brightidea and a view into the idea management application Colgate partnered on with SAP. This is a very fragmented market, who else should I talk to in this space? I found this article that Ron wrote (before he joined Cognistreamer) that ambitiously set out to list every innovation, collaboration, idea management, and content management (CMS) on the market. Who are the key players in this type of software? Who else is interested in this space?

I had the chance to talk with … the team at Brightidea about their products to generate, manage, track, and prioritize innovative ideas. Brightidea is helping companies leverage social computing technologies for innovation with a suite of solutions to drive innovation and foster the resulting ideas through the innovation pipeline. I was impressed with a number of aspects of the solution, but perhaps the most surprising observation was the solution is “enterprise aware.” That is my term, not theirs, and not something that they specifically pointed out. But in an area where I see a lot of light-weight “solutions” being built internally or quickly rushed to market, it was refreshing to see that Brightidea developed their solution to address the complexities of the enterprise. It was also nice to see that they spent quite a bit of time understanding the process by which ideas turn into winning products instead of just developing a portal and a database.

My Views on “Idea Management” Software

Put simply, Brightidea is one of a number of “idea management” vendors. I am not a big fan of that term because I think it understates the importance of what some of these companies are doing. They are not simply “managing” information or acting as an online suggestion box. They are helping companies drive innovation in targeted areas and nurture the ideas in a social setting to help them mature. That, in  my opinion, is much more than “idea management.” Moreover, the solutions that I think are adding the most value are not just ones that help gather ideas, but those that help companies determine which ones to pursue. As one manufacturer I spoke with explained getting a lot of ideas isn’t the problem, it’s filtering through all of the ideas to find the good ones. Managing ideas is boring (although it has to be done). On the other hand, using social and collaborative technologies to incubate  ideas and drive further discussion to help raise the best ideas to the top and give them a jump start in product development is compelling.

What Does Brightidea Do?

OK, with my diatribe over, let’s turn back to Brightidea specifically. I particularly liked the analogy that Vincent Carbone, Founder and Chief Operating Officer of Brightidea, offered me. He explained that what they do is similar to what Customer Relationship Management (CRM) systems do to manages leads. But instead of leads, they manage ideas. He points out that a sales lead isn’t worth much at first but could turn into a multi-million dollar deal. CRM systems offer lots of management capabilities, pipeline reports, etc. for leads. He says that Brightidea gives executives what they have for leads in CRM but for their ideas, including dashboards to observe/optimize innovation. I like the analogy because one of the big challenges companies face with sales leads isn’t getting a lot of them, it’s picking out the good ones to pursue through a process of lead qualification. CRM also recognizes that leads go through a lifecycle, starting small and gaining value over time as they are nurtured – or fizzling out and becoming a part of the historical record for later use. I may be taking his analogy too far, but to me it speaks volumes about their understanding of the nature of ideas.

What do they Offer?

The offering from Brightidea is the Brightidea Innovation Suite. The solution consists of three primary parts:

• Webstorm is an online solution used to collect and drive innovation. It offers capabilities to prompt, post, and discuss innovation ideas.
• Switchboard is used to prioritize, collaborate, and score ideas. It provides the ability to turn ideas into product proposals to take to the next step.
• Pipeline is the execution piece. It includes “social project management” and helps track milestones, stages, gates, and provides visibility to projects.

The suite provides a broad array of capabilities, although I am sure that some companies choose to integrate to existing tools for some of the processes covered. Brightidea demonstrated a lot of ability to customize the Webstorm sites. Each individual site can be set up appropriately to fit the social environment and match the company culture. As they explained, each Webstorm can look completely different. The innovation sessions can be directed by some upfront ideas to get them started in the right direction. They can also support ad-hoc webstorms using a button that says “run your own webstorm.” All of the ideas stay in the database, and people can search on them.

What surprised me most, as I mentioned earlier, is the ability to fit into the enterprise. The software can have multiple sites by location or can be shared across business units, geographies, product lines, business units, or functional areas. Those sites can be rolled up to higher levels based on permissions. To me, it looks like a model that is ready for the enterprise.

Who do they Work With?

So who should consider Brightidea? The solution supports multiple industries and is in use by companies both large and small. The Brightidea website lists a host of companies across industries. It doesn’t appear to have any limitations. Some examples they gave in our discussion included:

• R&D people using it
• A pharmaceutical company using it for chemical reactions
• A consumer packaged goods company putting in new names for products

In fact, I used the solution when I acted as master of ceremonies for Aberdeen Group‘s Leadership in Product Development Summit and the solution fit our process well. Unfortunately, I have to admit, we didn’t put enough of our own effort into it to get the most value out of the solution. But the potential was clear, the site was nicely developed, and it was easy enough to work with.

Brightidea also has a partner strategy. For example, HP is a global reseller. They are also including Brightidea inside other software solutions. The examples we discussed were Planview (Product Portfolio Management, PPM) and Rally Software (Application Lifecycle Management, ALM, Agile). In addition, they discussed a strategy to partner with specialty consulting firms to tailor the solution to specific industries.

So that’s what I hear from Brightidea, I hope you found it useful. What do you think? What else should I have asked them? I have talked with others about this as well, including a view into the idea management application Colgate partnered on with SAP. Who else should I talk to in this space?

I had the chance to talk with … SAP and their customer Colgate in June, and learned that they have been hard at work improving the way manufacturers innovate. I was attending an SAP customer event on PLM to get updated on the progress of SAP’s PLM efforts. SAP continued to showcase their new PLM interfaces (now including Recipe Management for the process industries). But the thing that caught my attention most was a presentation on a newly co-developed solution for product innovation codenamed “Edison.” While this isn’t a formal SAP product as of yet, it shows some real promise on how companies can use social computing to drive innovation.

Note: Hopefully this wasn’t the only thing I learned in June, but things have certainly busy and I am behind in sharing!

What they are Doing

The solution, presented jointly by SAP and Colgate, is labeled as an “idea management” solution. To me that description falls a bit short of what they have developed. The solution handles a broad range of the innovation process, including:

• Idea Solicitation – to help target innovation as opposed to an all purpose suggestion box
• Idea Submission – to capture ideas from participants, including any supporting media they choose to submit
• Review and Processing – to help companies find the ideas they want to focus on, including search, filtering, sorting, tagging, and commenting
• Evaluation – allowing companies to score innovation and promote the good ones
• Execution – although this was a little less clear to me, this is the idea that the promoted ideas would flow into SAP’s PPM solution to turn into product development projects

The first thing that stood out to me as evidence that this was based on practical experience was that they didn’t assume that getting more ideas was better. I run into vendors all the time who like to talk about helping their manufacturing customers get more ideas. All of my research and interviews end up with the same conclusion from manufacturers: “I don’t need more ideas, I need help sorting through all of the junk to find the good ones!” Manufacturers want better ideas, and they want a way to make sense of the volumes of input they get. Kudos to Colgate and SAP for getting this right, which I have to imagine came from Colgate’s real-world experience in innovation.

Another thing I was impressed with was the objectives of the project. They set out to build something “simple, usable, flexible, and extendable.” As well thought out as the solution seems, it doesn’t appear that they over-designed it. The solution does not look or feel like SAP, but instead is a light, web-based experience. While this might not be appropriate for the highly transactional world of traditional SAP solutions, it is ideal for this application where broad use by untrained participants is a key to success. After all, you don’t want all of your innovation coming from a few trained insiders!

One final point that Colgate made which I think is important to consider, is that the solution is not only valuable in the front end of innovation but throughout the new product development process. In fact, early use of the tool at Colgate has helped solve supply chain issues like cost reduction.

Implications for Manufacturers

The use of social computing techniques to drive innovation is beginning to take shape. SAP is clearly interested in providing this capability, as are standalone innovation management solutions such as Brightidea, Imaginatik, Ideajam, and others.  Some upcoming research I will publish soon with Kalypso shows that many manufacturers are getting started in the use of social media in innovation, and those that did are going to increase usage next year. Times are changing, and it will be interesting to see who can best take advantage of this new opportunity.

So that is what I heard from SAP and Colgate, I hope you found it interesting. Who knew? I didn’t, if you did let us know about it. Who else should I be paying attention to in this space?

I had a chance to talk with…the Dassault Systemes team about their recent V6 product release.  They reinforced their key messages during the conversation: SOA based on a single data model, powered by ENOVIA, leveraging 3D as a media.  They also continue to speak of PLM 2.0, referring to the maturation of PLM from an engineering workgroup application to a value chain wide new product development and launch platform. I agree with this assertion – PLM has evolved in recent years to include the front end of innovation, product portfolio management, and direct materials sourcing. I always believed these were aspects of the PLM footprint, but organizations still approached each aspect of the product lifecycle in a siloed fashion.  Now with this release, these tenets are accessible to the small to mid-sized businesses (SMB) as well.

What does V6 Offer?

The key focus of the V6R2010 (V6) announcement is SMB (V6 PLM Express), the current incarnation of the SMARTEAM/CATIA bundled offering. Much like Siemens PLM and PTC, Dassault saw great success in the mid-market in 2008 so hope to build on that momentum with this release.  Basically, the goal is to open up the V6 platform – and “key PLM 2.0 values” – to the mid-market.  So what are these values?  There are the six points they espouse:

• Global collaborative innovation
• 3D lifelike experience across the value chain
• One platform enabling the federation of knowledge
• Online creation and collaboration – product authoring and collaboration over the web
• Ready to use PLM processes, by role and industry
• Lower cost of ownership and operations support

Much like other PLM vendors (e.g. Oracle), Dassault has focused their current release on enhancing the user experience.  V6 provides design (CATIA LiveShape), collaboration (3DVia composer pro), and simulation (SIMULIA DesignSight) to non-technical users, and offers role-based consumption of product information. The company has also further developed their systems engineering capability, by enabling building of component libraries to enhance reuse, and enhancing modeling capabilities.  There are five role-specific interfaces within v6: shape design, mechanical engineering, equipment engineering, machine engineering, and project team members (i.e. non-engineers).  Appropriate capabilities are presented in the user interface depending on role: industrial designers may have access to modeling and basic simulation, mechanical engineers have access to detailed design functions, and manufacturing process planning, and other members of the product launch team could have collaboration, sourcing and review capabilities.  New product development information (whether from other CAD tools, or enterprise applications) is presented through 3DLive, Dassault‘s web collaboration application.

How Does V6 fit into the PLM Ecosystem?

The six values Dassault speaks of are pretty much the same messages all large PLM providers have with their most recent product releases, although Dassault does place more emphasis on leveraging 3D across PLM processes and roles.  The challenge with this is convincing manufacturers who just want to arm their engineers with PDM and CAD that there is indeed value in sharing 3D visuals with marketing, field service, and suppliers (as Dassault says, “3D for all”, or in Autodesk‘s words, “democratizing 3D”).  I absolutely think there is value in this, whether for a large or small company. Marketing would be able to create more compelling promotions, leading to increased revenue. Field service would be able to respond to product quality issues more effectively, leading to happier, more loyal customers. Suppliers would be able to collaborate on new product designs and provide the most effective parts or materials.

What Else Does V6 Offer?

Two other key areas which Dassault has made a conscious effort to address are making the transition of V4 and V5 customers to V6 easier (with multiple “transition scenarios” from version co-existence to complete migration), and ensuring V6 is open so existing investments in tools and other enterprise applications can be leveraged, and data can be federated across the value chain. These two points alone will be key to accelerating acceptance of V6.

So that’s what I hear from Dassault. What do you think?

What I learned this week… came from The Front End of Innovation event in Boston. One thing that stuck in my mind from the event, based on conversations with end users and from presentations, is the lack of connection between the front end of innovation and the rest of the product lifecycle. Customers seem content with their current, often manual process of collecting ideas, and collaborating with the team. And there are some very mature approaches to the front end of innovation – as exemplified in presentations from Fortune 500 companies in the CPG, life sciences, A&D, and high tech markets.

The Front End Should not be Gated
Let me be clear: I absolutely agree with the assertion that the front end of innovation, at the idea formulation and management phase, needs to be free-form, creative, and not constrained by a gated process. But at some point, doesn’t this whiteboarding/brainstorming phase need to be connected to a modeling tool (for virtual prototyping), a product roadmap (so you can launch new products at the right time), and a set of requirements? Without a good flow into portfolio management, product planning, and modeling/engineering/manufacturing, many game-changing ideas may never come to fruition. One vendor that sees this vision is product portfolio management company Sopheon, which last week announced an OEM partnership with Hype Software, provider of idea management and analytics software. Another vendor that understands that this bridge between the front end and the rest of the product lifecycle needs to be present, is Invention Machine; they have connected their semantic search engine, Goldfire, to other PLM systems via partnership, much as Endeca has. Microsoft, Oracle and SAP also have embarked on front end initiatives in the past year.

And although the big three CAD and PLM guys – Dassault, PTC, Siemens PLM – are not currently focused broadly in this area of PLM, by default, however, with their strength in product modeling and a requirements management solution, they do have an offering at the front end. In fact one of the keynotes, from National Instruments, touted the benefits of modeling and simulation as an innovation driver. The presentation discussed how the key to successful product development is iteration, and modeling provides the perfect platform to create, try designs out, and prove concepts before building the actual product. Absolutely!

Social Product Development in its Infancy
What about the connection to social networking? This was also discussed at the event. Is “social product development” a pipedream, or reality? We think it’s only a matter of time before manufacturers see the need to leverage this phenomenon (see Jim’s thoughts on social computing in product development for more ). At the event, there were a couple of tracks about leveraging social media to enhance the front end of innovation but surprisingly, many end users (a diverse cross section of CPG, medical device, food, industrial ) were not using social networks as much as I would have thought. Certainly there is dabbling in the medium as companies try to determine the value to product development; most examples exist on Facebook and Twitter, where the conversation about company or product is monitored, and discussion groups (or “fan of” groups) are formed which can be leveraged for PR purposes, and (at least theoretically) to get input on new product ideas.

FedEx has a team of people focused on innovation, and presented on their need to keep track of the conversation in the cloud; Lockheed Martin is piloting the usage of virtual worlds to collaborate across their engineering team. But examples of traditional voice of the customer and ethnographic methods of understanding customer behaviors being enhanced through leveraging social media is not a mainstream phenomenon – yet. At next year’s FEI event, I expect much progress will be made on this front, though.

Implications for Manufacturers
The front end of innovation cannot be constrained by gated processes – creative minds that help manufacturers to grow would simply revolt. This was noted by executives from P&G, to J&J, to HP. But once a portfolio of ideas and then products is formed, I believe there needs to be a connection with the broader PLM process. Designers and marketers could benefit greatly from a collaboration system that connects them with the downstream product development team – engineering, supply chain, and manufacturing.

This, combined with rich modeling functionality means many PLM vendors do in fact have an effective story to tell this “non-traditional” PLM audience. The very front end (idea capture, management, analytics) will be filled, at least in the short term, by best of breed vendors like Accept, Brightidea.com, Hype, Imaginatik, Mindmatters, Planview, and Sopheon, as well as consulting firms Maddock Douglas, NineSigma, and Sagentia. A little company in Redmond named Microsoft also has a large presence in this space, because manufacturers are looking to leverage their existing investments in Sharepoint, Performance Point (now integrated with Sharepoint), and other MS tools.

What do you think? Should this front end of innovation be connected tightly with the rest of the product lifecycle, or would this corrupt the creative process?

What I learned this week . . . came from The Front End of Innovation event in Boston. At day one of the event, Author Jim Collins (Good to Great, Built to Last, Why the Mighty Fall) gave a rousing presentation of findings from his latest research. According to his research, the reason mighty companies fail is not because of lack of innovation. In fact the ones that succeed in the harshest conditions, at “27,000 feet on Mount Everest,” are not necessarily ones who bring a lot of new products to market; it’s the companies that are disciplined in their innovation approach, and have the right people working on the right projects.

 I believe this speaks to the need to apply innovative thinking continuously at every point of the product lifecycle, not simply at the ideation stage. Innovation can take place in the design studio, the marketing office, the shop floor, and the supply chain and applied to the front end of innovation to make products and services better. In other words, don’t think of the “front end of innovation” as just “ideation”; it is much more than, as this humorous IBM video depicts, creative people lying on the floor meditating, coming up with cool ideas.

The “20 Mile Marchers” Win
The winners in the harshest of business conditions (like now) are also, perhaps most importantly, companies that stay the course on their mission and strive to make their product or service set better in support of that. One large CPG company was cited as a company that introduced too many new products too quickly, and within five years wasn’t a stand-alone company – this is “Packards Law” where a company is more likely to fail because of too many products and projects without the right people in the right seats. Disney, on the other hand, has a diverse product set that exists religiously in support of their mission: make people happy. They have survived multiple recessions, and the death of their charismatic founder. Innovation is a universally accepted “article of faith” as Collins put it – that’s how it’s assumed, in large part, we’re going to come out of this economic mess stronger, right? But what if innovation isn’t the only key to survive and thrive in the long run? This, as Collins says, is a “wonderfully delicious puzzle.”

Implications for Manufacturers
The takeaway is it’s all about balance: as multiple presenters and attendees at the event said - of course a company needs to innovate, but not at the expense of straying from its mission and certainly not without the supporting team to make the new product development and launch process a success. The companies that succeed in the long run, as Collins puts it, have the discipline “to stay the march” – in other words it’s a marathon, not a sprint, as they say.

Perhaps most importantly, I believe, innovation (especially at the metaphorical 27,000 feet on Mount Everest) is not just ideation; innovation can and should take place at any point on a product’s lifecycle. There is a wealth of information that could be a catalyst for innovation: customer feedback, manufacturing cycle time, product quality issues, environmental impact, supply chain efficiency, recycling and reuse… all should be data feeds to the front end of innovation, which support the goal of every company: make good products, make money, and keep the customer happy.

So tell me what you think – what does the “front end of innovation” mean to you?