Clarity on PLM

A quick peek into some feedback on my research on … the Evolving Roles of ERP and PLM in the manufacturing industry. First, thanks to Oleg for his feedback an continuing the ERP-PLM conversation on PLM Think Tank. Oleg made some very good points and provided some good research on the research. But in the spirit of a healthy debate I want to “myth bust” his response. I will address each of the sections in his response idividually, although I split the first one into three responses.

Responses and Reactions

Managing Innovation (Busted) - The title to Oleg’s report does not reflect the thrust of my paper, but he touches on a topic that is near and dear to my heart. He makes a strong point that innovation can’t be managed. I think the first two responses to his post say a lot, particularly the first one, show that this isn’t the case. No, we are not going to automate innovation with a product line of robots. But the energy and time of smart, innovative people can be harnessed and guided to produce more results by following an innovation process. I call this operationalizing innovation. It is about process. Really.

Distinct Roles of ERP and PLM (Busted) - The point that I was making in my paper is that ERP and PLM serve different purposes. PLM helps drive product innovation, ERP helps execute the business of manufacturing. PLM’s primary role is not managing innovation, it is helping companies innovate, develop new products, and engineer them more effectively. These are fundamentally different purposes. Yes, there is overlap. But there are more differences than overlaps. See the table below for more of my thoughts on this.

PLM as a Module of ERP (Busted) - Oleg disagreed with my statement that “PLM is not just another module of ERP” and points out SAP as an example. I disagree strongly with this. SAP tried to introduce PLM as just another module. If they were successful there would be no market for PTC Windchill, Siemens Teamcenter, or Dassault Systemes Enovia. What has SAP done over the last couple of years? SAP  developed a multi-year program to introduce PLM as a complete subystem to ERP instead of a module. See my post Does SAP “Do” PLM? for more on that. Can an ERP vendor provide PLM? Sure. Is it part of the ERP system itself? Not in the near future. Need more proof? Oracle bought Agile instead of developing further on their e-business suite. Busted.

Design and Product Data Management (Confirmed) - The core of PLM is data management. PDM should be rock solid, with very robust security. I do believe that extending to other areas (compliance, costing, etc.) that leverage that core data makes absolute sense. It is like building a house on an unstable foundation, it may look nice but in the end it will collapse.

Cross Funtional Processes (Plausible) – I absolutely agree that processes are organizational.  I believe that business processes absolutely come before software and functionality. I also agree that business processes cross enterprise boundaries (click to see the article with that same name). But my point was – and still is – that companies need to choose which processes will be supported by which solution. Yes, the answer can be that some processes are supported by a combination of the two. And I would love to see business process management (BPM) play a role, even to the point of developing composite applications that leverage the functions of each system. But the point is that there are some overlap areas where companies need to choose. There is more to agree with here than disagree, though.

PLM and ERP Integration (Plausible) – I didn’t go into technical integration in my report. Why? Because I believe that it is more important to get the ownership of data and the alignment of business processes right. This includes addressing semantic differences between the systems. The days where we couldn’t get one machine to talk to the other or data was stored in a proprietary format were the dark days of integration. Today, the technical side of integration is “easy.” By “easy” I mean it is a simple matter of time and money, but it is possible. It no longer requires magic. But it does require effort. And there are some good integration stories between ERP and PLM, but currently it is mostly customer or through integration partners. So we are mostly in agreement here (I think).

Where Does PLM Stop and ERP Begin? (Busted) - Oleg says “don’t even try to put this border.” Unfortunately, as a manufacturer you have to. You have to develop a strategy about which system will address which process (again, it can be a combination). From a vendor perspective there are no boundaries, and I am not suggesting some industry standard footprint of each solution. But for an individual implementation? In some processes you have two tools that can do the job, you have to pick.

Summary
So that was a “quick” reply to Oleg’s comments on my recent research. I hope you found it interesting. I hope you found it entertaining. Mostly I hope you (and Oleg) recognize the good spirit in which this is written. Respectful debate is good for all of us. I appreciate Oleg’s perspective even when I disagree. And more often than not, we agree.

Do you see it differently? Let us know what it looks like from your perspective.

Please feel free to review more free research and white papers about PLM and other enterprise software for manufacturers from Tech-Clarity.

I had the chance to talk with … the team at Siemens PLM about their recent release of Teamcenter 8. Siemens released this new version of their Teamcenter PLM software concurrently with the new release of their Digital Manufacturing solution, Tecnomatix. Given time and space in a blog, I am going to focus on Teamcenter today. The theme of the Teamcenter 8 is productivity – “individual productivity, application productivity and IT productivity.” From what I can see, let’s just say that Siemens has been pretty productive themselves, and has invested heavily in this new release. Early indications are that Siemens has done a very nice job moving their PLM solution forward for their customers.

A Major Step Forward for Siemens and Teamcenter

I posted last week about the themes of several major PLM releases being announced within a week in my post What I Learned: PLM, Please Take 3 Giant Steps Forward. In that post I mentioned that PLM was expanding in three primary areas – to more people in the product development process, to a broader perspective on the product itself, and to a greater amount of the product lifecycle. In that post, I said that PLM companies have taken some large strides in technology, including service oriented architectures (SOA), analytics, and Web 2.0 capabilities. Let’s discuss Teamcenter 8 from those perspectives:

Teamcenter 8 Extending PLM to More People

Teamcenter has been developed with a broad perspective on the people involved in product innovation, product development, and engineering. With this release, Siemens is making it easier for these teams to work with the information in Teamcenter. One key enhancement in this direction it Microsoft Outlook integration. This Teamcenter release reflects the “ribbon” look and feel of newer Microsoft applications, and integrates product data management functions directly into Office and Outlook. For example, users can save Outlook messages into Teamcenter to capture and share product conversations, and can synchronize tasks between the two applications. From Office, users have live, bi-directional integration between Teamcenter and Word, Excel, or PowerPoint. Some users may be able to work within Word or Excel without ever having to work directly with the Teamcenter interface, extending the ability to include non-technical users in PLM processes.

Teamcenter also has broad collaboration capabilities, including the JT file format (which Siemens has published) that allows companies to share 3D design representations without the need for the recipient to have the authoring CAD tool. With this release, Siemens adds a new “ultra-light precise” or “ULP” format that Siemens claims can share 3D graphics and related manufacturing data at about 1% of the size of the original CAD file.

Teamcenter 8 Support for a Fuller Product Definition

Siemens has also made progress in expanding the view of the product controlled within PLM. This has been accomplished though enhanced content and document management, which allows companies to include more non-engineering data in the PLM system. For the CPG industries, they have also added support for managing f

One of the most intriquing things that I see is the potential for Siemens to leverage their new relationship with IBM to better address mechatronics, or “smarter products.” In Teamcenter 8, manufacturers can now better manage application lifecycle management (ALM) data to support the embedded software that is becoming more common in todays smarter products (for more on mechatronics and IMB see my One-to-One: Big Blue’s Unprecedented Mechatronic Design Opportunity post) for more. Teamcenter 8 can now go beyond managing the software code file to managing the metadata from software development tools, specifically IBM Rational ClearCase for software configuration management. Teamcenter’s support for mechatronics also extends to electrical design automation (EDA), with embedded support within tools from Cadence, Mentor, Intercept, and Altim.

Greater Lifecycle Coverage

The team at Siemens was clearly busy. In addition to expanding support for the people and products in the product lifecycle, they have extended coverage for the product lifecycle itself. For example, Siemens has extended systems requirements and requirements management to cover the early phases of the product lifecycle. Teamcenter now offers the ability for companies to develop requirements using a template in Microsoft Word. Teamcenters content management enhancements should also provide significant opportunities to support processes and information from more phases of the product lifecycle.

Teamcenter is also reaching out to suppliers and Manufacturing. Teamcenter supplier relationship management (SRM) offers a new capability to exchange “suitcases” of information with suppliers. In addition, Siemens had integrated the manufacturing bill of process (BOP) from Tecnomatix and enhanced simulation process management with Siemens NX. Teamcenter 8 also includes new industry templates for aerosspace & defense and Softlines, Footwear,and Accessories and has updated templates for medical devices and high tech electronics.

Enhanced Teamcenter Technology

Siemens has invested heavily in their PLM architecture over the last several years. Siemens now claims to have 1,800 customers live on their unified architecture, a common four-tier, service-oriented architecture (SOA) for their Teamcenter solutions. Platform enhancements include new store and forward capabilities, faster searches, and easier solution extensibility without programming.

Siemens has also announced support for a number if IBM infrastructure solutions including DB2, Websphere and Tivoli, including a pre-configured option that includes IBM DB2 Information Manager and WebSphere Application Server (WAS).

So that’s what I hear from Siemens PLM, I hope you found it useful. What do you think? What else should I have asked them?

What I learned this week…came from the joint IBM and Siemens PLM event announcing the enhanced strategic alliance between Siemens PLM, IBM Software, and IBM Global Business Services (GBS). The relationship between IBM and Siemens PLM is not new; baking in Websphere and Information Management (DB2), a.k.a. the PDIF (Product Development Integration Framework), and IBM’s SOA with Teamcenter, is. The end goal of this is enabling easier integration for IBM customers who want a PLM system and Siemens PLM customers who need a more robust infrastructure for global product development. Ultimately, I think this is a very positive step in enabling manufacturers to achieve the promise of enterprise new product development and launch (NPDL), as well as supply chain integration – to expand PLM from the engineering workgroup where product data, portfolios, and new product ideas are more rapidly accessible to the entire value chain.

What’s different about this?
Primarily, what’s different is that Siemens PLM is the first to offer full, out of the box integration with the IBM PDIF. What started as “coopetition” in 2004 between the two companies has now evolved to a comprehensive alliance agreement, where Teamcenter can be preconfigured with IBM’s middleware. Over the past couple of years, IBM has spoken extensively about PDIF, and they have forged relationships with the leading PLM vendors like Dassault Systemes, PTC, and Siemens PLM – but they did not have a packaged offering per se. Now, with the enhanced Siemens relationship, which includes business process consulting (across industry), implementation, and application hosting, they have done this. Both companies also continue to support open standards, for ease of integration with the inevitable multi-CAD and PDM environments that commonly exist with manufacturers.

A joint customer, Emerson, presented and spoke about “Teamcenter in a box,” a preconfigured global solution managed by corporate IT that can be rolled out to different divisions and partners. These divisions and partners, leveraging Teamcenter’s SOA, can subscribe to the features they want, which are then served out of corporate IT. This approach is one that could be replicated as an SMB (small/medium business) solution, or at existing enterprise customers who want to quickly roll out PLM functionality to multiple divisions across the company.

Teamcenter and Rational: A Smart Idea
A great opportunity for IBM and Siemens is the integration of Teamcenter with the Rational Software platform, which enables more efficient product development of complex, “smarter” products like cars, cell phones and planes that increasingly incorporate electrical, mechanical, and software requirements, engineering changes, and other product development data. For more on this, see: One-to-One: Big Blue’s Unprecedented Mechatronic Design Opportunity. IBM acquisitions Telelogic and Cognos also could fit into the Teamcenter arrangement. These two pieces should be (and I think they will be) lynchpins of IBM’s PLM strategy; integrated with Siemens PLM, they could provide great benefit to Teamcenter customers who may be Telelogic DOORS users, and are looking for a product planning solution (Focalpoint), as well as product analytics support. Although as far as analytics, it’s not clear how Cognos will be leveraged as part of IBM’s PDIF – but certainly, with the need for better product cost and performance analytics in the market today, the Cognos’ analytics platform could be (and I’m assuming will be) more deeply leveraged at some point.

Implications for manufacturers?
The obvious question is what does this mean to IBM’s other ISV PLM partners. The short answer is, nothing. IBM’s relationship with Centric, Dassault, PTC, MSC Software and others will remain the same; the only difference is each of these respective product lines will not, at least at this point, be preconfigured for IBM.

The challenge of unifying multiple applications, tools, and data across the product lifecycle has been alleviated with the SOAs most PLM providers now offer their solutions on; the addition of IBM’s stack to Teamcenter kicks this unification up a notch. All IBM products are certified to work with Siemens PLM products, and Siemens PLM is optimized to work with IBM middleware, or PDIF, and SOA. For manufacturers who use IBM and Teamcenter, this will enable more rapid access to the right information, better collaboration, and potentially faster time to market.

So that is what I learned this week. Let me know what you think.

I had the chance to talk with … Bruce Boes and the team at Siemens PLM Solutions about their Teamcenter Express offering for small to midsize manufacturers. The Express solution is a a part of what Siemens calls “The Velocity Series,” which is a full PLM offering for the small to mid-size business (SMB). The Velocity Series includes complements to Teamcenter Express that supports computer aided design (CAD, SolidEdge), computer aided analysis (CAE, FEMAP), and computer aided manufacturing (CAM, CAM Express). Teamcenter Express, either as a part of this suite or on its own, provides the base PLM capabilities, primarily collaborative product data management (CPDM).

What do they Offer?
Siemens is well known in PLM circles for their Teamcenter solution. Teamcenter, going all the way back to in history to one of the original PDM solutions, Metaphase, is a very robust and mature PLM offering. The solution is in place in many of the largest manufacturers in the world, and offers a very broad range of PLM capabilities. The full Teamcenter solution, however, is probably more than most mid-sized manufacturers need. This is where Siemens brings in Teamcenter Express. The solution provides a pre-configured environment of Teamcenter that handles product data vaulting and pre-configured workflows for engineering change management and release to manufacturing. These two processes are the basics of getting product data under control, and are typically very challenging processes. They are also processes that PLM is very well suited to improve.

In addition to the basics, Teamcenter Express can also provide version control, project management, collaboration, reporting and CAD integration(specifically to Pro/Engineer, Catia V5, Inventor, Solid Edge, and NX). The solution, built on Microsoft technologies, is intended to be easy to implement and support for smaller businesses. At the same time, Siemens points out that it is fully upgradeable to the full Teamcenter solution should the manufacturer grow or want to step up to a more full PLM solution.

Who do they Work With?
The Teamcenter Express solution is specifically aimed at the small to mid-size business (SMB) in the manufacturing industries. Unlike the full Teamcenter solution, Teamcenter Express is built to the needs of the general manufacturer (typically a supplier in a larger supply chain, but potentially a smaller OEM). There are no industry-specific solutions as you would find in full Teamcenter. In this way, Siemens is keeping the solution simple and to the point.

How does this Fit into the Ecosystem?
This solution helps smaller companies adopt PLM. Based on the same capabilities that larger companies use, it is a pre-configured version that is simpler to implement and provides basic workflows out of the box. At the same time, the manufacturer using Teamcenter Express is not limited in their future PLM vision, because they can choose to upgrade to Teamcenter if they choose with what is described as a relatively easy transition. It’s a unique approach, and one we will certainly keep an eye on over time.

Teamcenter Express also fits into the greater enterprise systems ecosystem, with integration available for both Microsoft Dynamics and SAP ERP solutions.

So that’s what I hear from the Velocity Team at Siemens, I hope you found it useful. What do you think? What else should I have asked them?