Jim Brown is moderating an AMC Bridge Expert Panel discussion on AI progress in industry. Has AI delivered on the hype? Are manufacturing and AEC companies adopting AI-driven use cases that drive real business value? Have we moved beyond the proof-of-concept phase in AI adoption? The panel will discuss these questions and more to shed…
- Dan Williamson, Director of AI, Ryan Companies
- Anthony Hauck, Co-Founder and Chief Product Officer, Hypar
- Patrick Murphy, CEO and Founder, Togal.AI
- Igor Tsinman, Co-Founder and President, AMC Bridge
We were recently alerted to a company we weren’t covering because a long-time business friend took a key position there. After a quick review of what they do, Julie Fraser and Jim Brown decided to team up on the briefing because we could already see a combination of QMS and PLM capabilities. We learned that there was even more there than we initially thought, with some capabilities that you might expect from ERP and MES systems.
Yet, Enlil is not trying to be all those things to all people. Instead, they aim to be an integrated solution that supports the core needs of a specific audience, the early and mid-stage medical device ecosystem of product developers and contract manufacturers. Their sweet spot, by design, is supporting the varied and nuanced needs of medical device companies as they scale and seek regulatory clearance or approval. They’ve also discovered that contract manufacturers in the life sciences ecosystem find value in what they do. Enlil’s mission is to “empower MedTech product innovators to bring life-changing products to market faster, and with unwavering regulatory confidence.”
The Value of Specialized Solutions
Let’s step back to talk about product specialization. We talk about specialized solutions because nobody likes to be called a niche offering. They feel “niche” limits their potential. Regardless of what you call it, solutions built for a specific customer profile can be immensely valuable because they just fit the customers’ needs. Enlil, Inc. positions itself as a vertical SaaS solution for regulated products. In this case, it’s intrinsic to where Enlil came from and their mission. We feel it’s led to a unique offering with an excellent fit for smaller teams, whether they are startups or focused teams in larger enterprises, focused on developing pre-clinical, class 2 and 3 medical devices.
How Enlil Came to Be
The history is important. Enlil was not created as a startup software company looking for a problem to solve. Instead, Enlil is a purpose-built solution that grew out of an innovation hub that is part of the Shifamed Group. In this scenario, their first customers were their sister companies in the innovation accelerator. This not only helped create focus, but also helped ensure that user needs were met across a variety of similar startup medical device businesses. The result is that they are unique because of where they come from, who they serve, and what they do. Now, they have assembled an impressive team of industry veterans from the ERP, PLM, and MES industries to help grow the business.
What is Enlil?
The best way to answer what Enlil is, is by who they support. It’s not a cookie-cutter product that was designed to meet the top ten features of PLM, QMS, MES, or another software category. What we saw was an end-to-end, collaborative product development and innovation system that supports digital thread traceability for medical devices. That’s hard to fit on a marketing slide, but the customer profile focus is the value. What they’ve done is identify the essential needs of their sister companies to use as guiding requirements for the solution.
That leads to an interesting solution that handles QMS functions like traceability and documentation. They can document test results, but they’re not trying to be a LIMS. They manage the digital thread across both hardware and software components, but they aren’t a full PLM system. They manage materials and clinical supply, but they don’t want to become an ERP system. That makes Enlil hard to classify. Are they a PLM with some MES capabilities, a QMS with some PLM functionality? But trying to classify them misses the point. Enlil is a specialized solution tailored to meet the product innovation and product development needs of early-stage medical device developers and their ecosystem.
Who Enlil Targets
As mentioned, Enlil is a specialized offering. The customers that they see as the best bit for their capabilities are these profiles in the medical device ecosystem:
- Small and mid-sized MedTech companies
- Innovation hubs
- MedTech contract manufacturers
They have specialized capabilities that make these companies a good fit, including an interesting two-tier structure that allows innovation hubs, parent companies, or OEMs to share information and collaborate with related entities like incubated startups, product teams, or contract manufacturers. They’re also planning to release an AI chatbot, “Lilly,” to summarize information and help reduce the significant amount of manual work companies spend on regulatory documentation.
There is room for growth beyond these targets, for example, smaller development teams in larger enterprises, but the market they target today is a rich and exciting one. And, one that should appreciate Enlil’s focus.
Our Take
This writeup doesn’t share a lot of details about what Enlil does. Unapologetically, that is because their feature list isn’t what’s important, it’s their specialization on a target profile. Medical device companies looking for a single solution to meet their basic product development and traceability needs should take a look at Enlil. Startups in the medical device industry, who are looking to develop their products and get regulatory approval from the FDA should definitely see how Enlil could help them. It’s rare to find such a tailored solution for a specific set of customers to solve a specific collection of problems. Enlil may not stop there, but they are positioned well to get a strong foothold in early medical device development.
Thank You
Thank you Nader Fathi, Andrew Robbie , Christine Pearsall for introducing us to Enlil and your unique offering. We are excited to learn more and hear from the companies using your solution.
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How are manufacturers doing at global Digital Transformation? What could accelerate progress? These are a few of the questions that Julie Fraser and other experienced industry analysts will discuss on a panel on June 17th. The session is part of the Manufacturing Leadership Council’s (MLC) Rethink Conference on Marco Island, Florida, and supports its theme, Accelerating Digital Transformation in Manufacturing.
This “Power Panel” will leverage research from four analyst firms to explore the current state of Digital Transformation in manufacturing. Joining the panel are Tech-Clarity’s Julie Fraser, Bob Parker of IDC, Craig Resnick of ARC, and Matt Littlefield of LNS Research. The panel moderator is David Brousell, Director and Founder of the MLC, which is part of the National Association of Manufacturers.
The panel will also address “handicapping” questions such as: What is the picture for global digital transformation in manufacturing? Are some regions ahead of others? If so, why? And questions about the path forward such as: What’s needed to move to the next stages of maturity? Are we ready to move from Industry 4.0 to Industry 5.0? These four long-time manufacturing software industry analysts will each contribute their opinions and share insights.
This panel is just a part of this dynamic in-person conference. The program includes a wide array of presentations, panel discussions, case studies, and networking sessions on culture, leadership, process, and technology. Topics range from what to expect in the economy to emotional intelligence for a thriving culture to defining the human-machine relationship to digital transformation for small and medium manufacturers. There is also an exhibit hall for sponsors to show their offerings on Tuesday and Wednesday.
Rethink runs from Sunday evening June 15th happy hour and then has three days of content. It ends with the black-tie Manufacturing Leadership Awards gala on Wednesday evening June 18th. The many categories of awards showcase what leading manufacturers are doing in AI Vision and Strategy, Business Model Transformation, Collaborative Ecosystems, Digital Supply Chains, Engineering, Production, and Integration Technology, Operational Excellence, Sustainability and the Circular Economy, and Transformational Business Cultures. There are also individual awards.
The MLC website describes the event: “Rethink examines today’s digital factory as it intersects with technology, organizations, and leadership. Come away with a better understanding of the smart factory and what’s needed to compete, succeed, and thrive in the connected future.” Last year’s event was compelling, and the topic for this year is global digital transformation. If you are attending, please let Julie know to set up some time to get face-to-face.
[post_title] => Power Panel: Handicapping the Global Digital Transformation Race
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[post_content] => Jim Brown's recently published eBook research, The Business Value of An Industrial System of Engagement Platform, introduced the concept of the Industrial System of Engagement (SOE). Following the eBook, he penned a guest post for Hexagon summarizing the eBook and how the Industrial SOE provides a platform to extend the value of current enterprise systems by providing enhanced connectivity and collaboration.
The Industrial SOE
The post shares the challenge that manufacturers face – plenty of data but significant difficulty connecting and collaborating on the product digital thread information it holds. The eBook proposes that it’s time for manufacturers to change how they connect and collaborate across the systems that house their product data. Beyond sharing the challenges, the post offers a definition for the Industrial SOE and what it must deliver, including:- Data Centricity
- Integrated Information
- Operationalized Collaboration
- A System for Action
Hexagon’s Nexus Platform
This guest post shares an overview of the Industrial SOE concept based on our research and interviews with two thought leaders, Style Crest Project Engineer Tyler Lucas and Paragon Medical Devices Senior Quality Manager Jeff Livingston. It then discusses how Nexus, Hexagon’s open digital industrial platform for manufacturers built on the Microsoft Azure platform, delivers collaboration value for manufacturers.
For more information on the Industrial SOE and Nexus, you can read the full blog post on the Hexagon site. You can also download the full white paper directly from Hexagon.
[post_title] => Hexagon Delivers a New Digital Industrial Platform to Accelerate Innovation
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[post_content] => The Value of AI in Manufacturing is Accelerating
There is a lot of talk about the value of artificial intelligence in manufacturing, and rightfully so. Although AI isn't new, it appears to be reaching a tipping point where companies are more open to exploring its potential and AI techniques are more accessible than ever. Manufacturers are acting on the opportunity. Our recent Making Manufacturing Analytics and AI Matter research, for example, shows that 99% of manufacturers plan to invest in analytics and AI in the next year.
Further, AI has moved from the experimentation phase to the value phase. Our latest executive survey, Executive Strategies for Sustainable Business Success 2024, found that AI / ML (Machine Learning) was the most common application type providing value, with 88% of responding companies reporting they achieved business value from AI / ML. Further, these results can come quickly. The manufacturing analytics and AI study found that companies achieve fast ROI more frequently from advanced analytics / AI than from their other software investments. For example, the data shows that 73% of respondents received benefits from GenAI in less than a year.
Talking about AI Adoption with the Experts
Our research shows that AI / ML can drive value, and companies can achieve that value rapidly. But that value doesn't come from buying software. It comes from applying the right solution to solve a real problem. However, many manufacturers don't know where to start or how to implement these capabilities. To better understand how manufacturers can target and adopt AI, we sat down with two experienced consultants with real-world experience in helping manufacturers improve business value by adopting AI. We sat down with Kalypso: A Rockwell Automation Business's Senior Manager of Data Science and Digital Transformation, Chelsea Barnes and Master Data Consultant William Rosengarten to get their perspective. Let's see what they have to say!
What are Manufacturers Asking For Today?
Jim Brown
Kalypso works with a lot of manufacturing companies. What are manufacturers asking for related to their AI strategy and implementations?
Chelsea Barnes
At one end of the spectrum, some companies are enthusiastic but lack direction. They know they need to do something with AI because it's a buzzword or their CEO says it's important, but they don't know what that looks like. They need help setting a direction. On the other end of the spectrum, some clients have a very specific problem and sometimes possibly even a solution in mind, like needing a machine vision solution to detect malformities or burns on a chip because it's costing them $10 million in scrap every year. They need help validating and implementing a solution. But there's also a middle ground where companies have operational targets in mind and maybe some initial hypotheses about how to improve them but aren't sure where to start.
Regardless of what the starting point looks like, the core of the ask is the same. They want value delivered quickly, at scale, using the best advanced technologies available.
Targeting Business Value versus Technology
Jim Brown
I've known Kalypso for some time and I appreciate that you don't believe in technology for technology's sake but focus on adding business value. How do you get companies started or help them frame their problem?
Chelsea Barnes
We help them discover where their business problems really are and what technology solutions are best suited to those problems. Then, we bring those things together. When we talk to a company, they know their issues far better than we do. For example, the people operating a line will be able to specifically articulate what problems are happening and have a very good hypothesis as to why they’re happening. Then, we bring our business, operational, and technology expertise to those conversations so that they meet in the middle with solutions.
Jim Brown
One of the things I appreciate is that you're not just technologists. You are domain experts who understand operations and the manufacturing industry. For example, in the Consumer Packaged Goods (CPG) industry, when you mentioned "burns on a chip," I knew right away you meant potato chips and not microprocessors. Can you tell me a little bit about why it's important that advisors don’t just approach their clients with AI knowledge, but also bring relevant business expertise to the table?
William Rosengarten
We're not coming in cold because we have a depth of expertise in the industry. We already have a point of view on the end goal. If a client comes to us with a problem, we know what best-in-class in the CPG industry looks like, so we can help them create a plan to achieve it.
Chelsea Barnes
Exactly. We bring together a variety of expertise to make that happen. We're coming in with a really solid set of hypotheses around what the problems typically are. We're familiar with approaches to improve quality yields and deal with issues like variable material inputs that cause problems for food and beverage clients. The specifics come from the client and their own knowledge, but our experience helps us get to a diagnosis more quickly.
Prioritizing the Right Opportunities
Jim Brown
In a recent cross-industry survey, we asked companies about their AI goals. The most common goals identified across industries were product and service innovation, product and service performance, and workforce efficiency. Those are essential in any industry. A survey specific to the manufacturing industry, however, clearly identified cost reduction as the most common investment driver. What are the CPG companies you're working with looking for?
Chelsea Barnes
We’re seeing the same thing on the ground. There are two macro trends that are really squeezing manufacturers right now. The first is inflation, which increases cost pressures. The other is workforce turnover, including a wave of seasoned specialists leaving the workforce, which puts a new sense of urgency on workforce efficiency. To meet those cost reduction and efficiency goals, the top AI use cases we hear are around quality control, process optimization and predictive and prescriptive maintenance.
William Rosengarten
We also see a common pain point in accessing the right data, especially when working with time series data. Five years ago or so, manufacturers felt they needed to capture everything from the plant floor, store it in the cloud, and historize it. So many manufacturers have created a giant haystack of all of their data, and they're struggling to find that needle that will drive specific use cases like the ones Chelsea is describing.
Justifying Projects
Jim Brown
With all of the potential projects you may identify with a client, how do you help them decide on what to focus on? Do you counsel them to focus on the most significant problems, or maybe try to have them find repeatable problems? Or is it purely the project with the largest ROI?
Chelsea Barnes
Manufacturers are absolutely looking at ROI. They need to understand how it will affect the process, the tangible value they will get from the initiative, and how they will measure achievement. It's critical that they know what their quantifiable goal is.
However, when it comes to investments in digital, sometimes the value isn’t as clear-cut as a 12-month payback. In some cases, companies are looking to stay ahead of the competition by operating on the bleeding edge of innovation. This might justify a more long-term investment approach to allow the transformation they’re looking for to take root.
Getting back to determining ROI, we’re big proponents of rapid use case identification and prioritization, where you quickly narrow down your short list of high-potential opportunities before investing too much time rigorously evaluating all options. To do this, you need a good value calculation framework, which we bring to all of our assessment projects. But,you also need the right technologists in the mix to help you quickly vet the solutions and estimate implementation complexity to understand the cost of an initiative.
Choosing the Right Technology
Jim Brown
Generative AI is on most peoples' minds and has become popular in conversations because of OpenAI and ChatGPT. However, many other AI and machine learning (ML) techniques are available. AI can be applied at different levels, ranging from companies wanting to retrieve data more effectively to the other end of the spectrum where they are pursuing AI-driven autonomous, real-time decisions to drive equipment behavior on the floor. How do you help your clients decide what technologies to apply for a specific problem?
Chelsea Barnes
We always start by confirming the business needs and what's the problem to solve now. Even if they come to us with a very specific request, like "I need a machine vision solution," we will diagnose the issue together and then confirm that's the right solution. We don't tell our clients to “go GenAI” their business. That wouldn't be good business for them, and it's not good business for us. We have a collection of tools in our toolbox to bring to this equation depending on the problem to solve and the data they have to work with.
William Rosengarten
We make sure to map technologies to business needs. For AI technologies, we consider:
- What data types are we working with?
- Is it structured data?
- Is it time series data?
- Is it natural language data?
- What kind of action or decision are you trying to take?
- What is the risk of error in that decision?
- Is there a human interaction component that would be an essential decision-making factor?
The choice will be different if they just need to organize and retrieve data quickly or if they're looking for insights from the data they have. For example, you shouldn't use copilots for autonomous control, but it's valuable when a human is in the loop for decision-making. These questions help drive considerations about the modeling and architecture that should come into play.
Chelsea Barnes
We always look at what kind of algorithmic approach will be best suited for the scenario. While generative AI is the topic of the day, there are plenty of cases where you should not be using it. For example, a GenAI model will not help make a prediction to autonomously control a production process - think predicting fill by monitoring time series data so you can adjust your filler dosage so it comes exactly at target. It's just not suited to do that. But if you are trying to process something like a year's worth of shift logs to find anomalous patterns in those free text shift logs, that's a situation very well-suited for a large language model.
Two other important decision criteria in regulated scenarios are the risk of error and whether the results are explainable. GenAI models, which are neural networks, are by nature black boxes where you don't know how it arrived at a decision, so having a human operator in the loop is critical to confirm the results.
A Closer Look at Copilots
Jim Brown
AI copilots are gaining a lot of traction to streamline and improve human workflow. When do you find those applicable for your clients?
Chelsea Barnes
A copilot makes sense when they are trying to augment what a human can do, to make them more efficient in a process, or help them with the decisions that they are making. A good example for an operator would be a troubleshooting copilot. For example, a line is down and a fault code comes up. Instead of looking that up manually, the copilot could take the operator through a decision-making process and walk them through the troubleshooting steps.
Copilots are attractive because the manufacturing industry has not fully rebounded following COVID, and many companies still have jobs left unfilled. Retaining institutional knowledge in manufacturing is even more of an imminent and challenging concern as a substantial percentage of the workforce nears retirement. Many companies would love to get to lights-out manufacturing, but that can be decades away. So the goal is to find the best way to augment and assist the workforce they have. Copilots can help make them more productive and efficient, and equip them with decades of institutional knowledge, even if they haven't worked on the line for 15 years.
William Rosengarten
Agree. Copilot assistants are an excellent solution for capturing and retaining institutional knowledge. For example, they are very good at taking notes. A technician running a troubleshooting process is trying to get the line back up and running and typically doesn't have time to document what they're doing. They are making decisions on what steps to take based on their experience. A copilot could take notes about the decisions they make and the impacts they have on the troubleshooting process. Doing this creates a feedback loop that typically only exists in free text or just in a technician's head and tribal knowledge today. In that way, copilots can help guide troubleshooting and feed information into a knowledge repository to assist in future troubleshooting efforts.
Key Takeaways
You've shared a lot of insights into how manufacturers can identify the right business opportunities and apply AI to solve them. Two of my key takeaways are that it's essential to have industry expertise to help diagnose the problem and that it's critical to have diverse technical knowledge to be able to apply the right AI capabilities to get the job done. This is an exciting topic, and we'll stay in touch about it.
Additional Resources
To learn more from Kalypso, explore the Kalypso website, a Kalypso interview about operational CoPilots, or Kalypso Insights on GenAI.
Thank You
Thank you to Kalypso, a Rockwell Automation Business, and Hadley Bauer for arranging the interview. We learned a lot from the discussion and know manufacturers will, too.
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How can recipe-based producers ensure cost-efficiency and consistent, high-quality products no matter where they are formulated or produced? By implementing enterprise recipe management (ERM) with a manufacturing execution system (MES) to deliver closed-loop data flows in and out of production. Leading Consumer Packaged Goods (CPG), specialty chemical, and other manufacturers are standardizing for ERM. Quite a bit of technology is required to digitalize this recipe transformation process (recipe management, PLM, digital twin. MES), but the value of eliminating inefficiencies, speeding product launches, and cross-disciplinary collaboration creates an excellent payback.
Please enjoy the summary* below. For the full research, please visit our sponsor Siemens (registration required).
Table of Contents
- Product Consistency: Key to Brand Success
- Meeting Market Trends and Realities
- Why Enterprise Recipe Management Matters
- The Recipe Management Process
- Changing Recipes and Production
- Multi-Disciplinary Workflows
- Bridging Differences and Disconnects
- Recipe Management Across the Enterprise
- Common Challenges for Enterprisewide Recipe Management
- Technology Challenges to Overcome for Enterprise Recipe Management
- Added Challenges for Enterprise Recipe Management
- ERM Solutions Have Data Management at the Core
- Creating ERM Data Flows
- MES’ Role in ERM
- Top MES Requirements for ERM
- The ERM Digital Thread
- Recipe Management Success
- Acknowledgments
Product Consistency: Key to Brand Success
Recipes Matter Managing recipes efficiently and executing them for product consistency on a global scale can be the difference between market leadership and brand disaster for fast-moving consumer packaged goods (CPG or FMCG) and their suppliers. Yet, enterprise recipe management (ERM) is fraught with challenges that can damage margins. Software for Enterprise Recipe Management There are plenty of challenges, but fortunately, some known paths forward. Overlaying current systems with a way to standardize and reuse recipe elements is crucial. ERM needs rules, models, and libraries, as well as data flows among various applications. Do not underestimate the pivotal role a suitable and well-integrated manufacturing execution system (MES) plays in the overall picture of enterprise recipe management. It executes the recipes and can send in-context as-produced data from the actual process back to recipe authors to populate libraries accurately and drive improvement.
Multi-Disciplinary Workflows
The ERM Concept
Standardization is at the heart of enterprise success with recipe management. Companies must standardize many interdependent elements for ERM to work. One of the drivers behind the ISA88 standard, Dennis Brandl, explains that the ERM concept is “Standard product descriptions based on standard definitions of manufacturing operations, based on standard quality attribute definitions, based on standard process parameter and process report definitions.” This illustrates the many layers and facets to standardize for ERM.
ERM in Innovation
The NPDI process begins with innovation. This, in itself, is a multi-disciplinary effort, typically including:
- R&D with their associated labs and scientists
- Marketing and consumer research
- Product development
- Packaging design and development
- Process and manufacturing engineering
- Operations or production or manufacturing
- Quality
- Food safety & regulatory
- Materials, procurement & supply chain management
- Manufacturing or production IT
- Automation, controls engineering, and operations technology (OT)
Creating ERM Data Flows
Impact Analysis To succeed, ERM must also include impact analysis. For every change in formulation, materials, equipment, or regulation, the system should review whether to update bills of materials and other recipe details, operations, and work packages. Having all the data does not automatically make this impact analysis effective or efficient. Having it centralized does improve the odds of good impact analysis as well as use for other analytics functions or artificial intelligence (AI). Many Systems ERM typically requires integration between MES and PLM, plus PLM or MES and Batch systems, possibly also integration between MES and ERP or PLM and ERP. For ongoing accuracy and best production results, automation and MES are also connected for complete process data sets without overwhelming the enterprise systems. In the ideal scenario, MES, PLM, ERP, and ERM are integrated through a process digital twin that accurately reflects the product and data flows in virtual form. Solutions for ERM A special set of capabilities is needed for a true ERM solution. Data from multiple systems is one aspect, and data management to handle the recipe data volumes, complexities, and contingencies are all key. Handling recipe transformations, testing, and validation will also typically require special software capabilities. These ERM integrated solutions do exist today, butare not yet in common use. With MES, the as-produced data can readily be fed back to ensure the ERM libraries, models, and rules reflect best practices.
Recipe Management Success
ERM for Success Enterprise Recipe Management eliminates inefficiencies and empowers teams to focus on value-added tasks by streamlining processes, reducing manual work, and enabling better resource allocation. Beyond reducing time to market and improving product quality, ERM allows the company to be more agile and adapt to change faster. One measure of success is how many recipes are directly downloaded and executed at top quality with minimal intervention from local operators. Benefits to Expect Creating an ERM digital thread can deliver significant benefits to multi-site, fast-moving consumer goods companies. Benefits that are a hallmark of ERM success span the lifecycle. They start with accelerated innovation, then faster NPDI or speed to market. ERM should also deliver improved product quality assurance and multi-disciplinary collaboration. Better understanding the impact of changes and decisions can lead to increased efficiency, improved product quality, and lower brand risk. Building an ROI Case Calculating potential value from ERM has many facets. Some factors to consider are reduction of labor, time, utilities, other costs based on a consistent source of data, quick recipe conversion, and less test batch engineering time. MESA White Paper #49 includes a basic spreadsheet approach.6 MES Optimizes ERM Every product’s quality relies on the execution of the recipe at a line or cell in a plant; that’s where MES ensures execution matches the recipe's intent. ERM also uses MES's accurate data on plant capacity, production capabilities, and recipe compliance. Finally, MES data on ‘actuals’ from every batch inform everyone of how that recipe is performing, for brand success. *This summary is an abbreviated version of the ebook and does not contain the full content. For the full report, please visit our sponsor Siemens. If you have difficulty obtaining a copy of the research, please contact us. [post_title] => How MES Supports Enterprise Recipe Management [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => enterprise-recipe-management [to_ping] => [pinged] => [post_modified] => 2025-04-17 09:33:42 [post_modified_gmt] => 2025-04-17 13:33:42 [post_content_filtered] => [post_parent] => 0 [guid] => https://tech-clarity.com/?p=21810 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [6] => WP_Post Object ( [ID] => 21842 [post_author] => 2 [post_date] => 2025-04-16 10:00:48 [post_date_gmt] => 2025-04-16 14:00:48 [post_content] =>Siemens Support for Service Exceeded Our Expectations
It’s our goal as analysts to stay informed about the software solutions available on the market and how they drive business value for manufacturers. We do this by conducting surveys, speaking with manufacturers, attending events, and taking briefings from solution providers. One of the things that excites us the most is when we learn something new. Recently, we learned that we were underestimating Siemens Digital Industries Software Service Lifecycle Management (SLM) capabilities. We thought it was worth sharing.
Deep Support for Product and Service Data
One of the primary ways that Product Lifecycle Management (PLM) solutions can help add value in a device or equipment's service phase is by providing technical data downstream. Engineering data is highly valuable to service planners, techs, and other support personnel. We were aware of the capabilities Siemens delivers in this area based on prior conversations and briefings. Siemens understands how products are designed, made, and serviced.
Siemens Teamcenter is a proven PLM solution and Teamcenter SLM has matured nicely over the years. Siemens followed a natural expansion beyond engineering and manufacturing BOMs to support the service BOM. We’ve seen how Teamcenter manages multidisciplinary data across product lifecycles and know it can manage complex configurations for both standard and engineer-to-order (ETO) products. Teamcenter’s ability to manage variants, revisions, and changes for serialized assets creates valuable product intelligence for service-related processes.
Teamcenter’s capabilities in both PLM and SLM also create an opportunity for customers to close the loop from service back to engineering. An integrated view of service and product data allows engineers better visibility downstream so they can better design for service and quality based on real-world feedback.
Supporting the Service Lifecycle
We knew that Teamcenter SLM was a strong source of product- and service-related data and recognized that this underlying information is crucial to effective service. Our research shows the value of extending PLM data into the “in use” phase of the lifecycle. Integrating design and service information provides even greater business value, as shown in our recent infographic on integrated service. The combination of product and service intelligence to support service transformation is compelling. As our Extending Digital Thread to the Customer Experience research shares the value of integrating the digital thread across the development and service lifecycles allows companies to develop a more intimate understanding of the customer and product experience and create new value from increasing profitability with lower costs and higher revenue from spares, suppliers, upgrades, replacements, and cross-selling opportunities.
Teamcenter SLM goes further than providing existing data by expanding beyond engineering data to information like service procedures. Not only can the solution manage and share this information, their Tech Pubs/RapidAuthor solution leverages design models and data to develop accurate, 3D technical documentation including visual and animated service instructions.
Product Support Data Management (PSDM)
One specific way Siemens drives value is with its Product Support Data Management (#PSDM) solution. PSDM is a standards-based approach to documenting product support requirements tied to specific asset configurations. The solution brings together product lifecycle and logistics support data, leveraging the standard GEIA-STD-0007. The standard originated from the military to support government contracts but is applicable across a variety of industries. Siemens adopted this standard and incorporated it in the Teamcenter data model to support maintenance and logistics related data imports and exports.
Siemens Partners to Support Sales and Service Execution
Beyond sharing information, our research points out the value of strong sales and service execution support. Manufacturing and service companies must improve and optimize the processes supporting sales and service operations to grow their aftermarket business. Sales and service transformation requires convergence across people, processes, data, and systems in the engineering and enterprise systems. Customer interactions, spare parts, service contracts, warranty entitlements, and other service complexities are managed in solutions like CRM, Field Service Management, Enterprise Asset Management (EAM), and even ERP. Siemens’ customers can integrate with these systems, but that doesn’t create a seamless process.
This is where our understanding of Siemens’ capabilities needed to expand. Siemens has been working to bridge the gap between design, service planning, and service execution. They now support the front office, sales teams, customer service, and even equipment operators through strong partnerships. This brings the value of SLM to the front office while keeping it tied into Teamcenter PLM to extend the value of rich digital data beyond the engineering population, in the right context, to enable execution processes. Siemens is not trying to recreate what field service and CRM solutions do, but instead make them more valuable by providing a more complete solution to their customers by connecting with them.
Siemens now supports cohesive processes and a consistent digital thread from engineering through field services and sales. Siemens was able to leverage their open approach and rich APIs in their platform to support a variety of partnerships. These partnerships include IBM Maximo Application Suite for EAM and Salesforce for CRM. In both of these cases, Siemens focuses on the product data and service knowledge, not the customer data and service execution. This is exciting news, and we were happy to hear that Teamcenter SLM for Salesforce has been available on the Salesforce AppExchange for about a year. The Salesforce partnership also opens up Teamcenter’s product and service data to Agentforce, Salesforce’s AI offering, unlocking significant new opportunities to leverage the cohesive digital thread.
Example
Siemens demonstrated an example of how combining an integrated PLM-CRM environment with AI can streamline and improve customer experience, service performance, and profitability. They showed how Agentforce could be deployed on an equipment manufacturer’s website. A customer can visit the site and enter an asset name and serial number, which would be interpreted to create a draft case for review, combining details about the configuration, including product information like 3D visuals, service data like detailed service instructions, and business data such as warranty terms in one place. They went further to show how the combined, AI-enabled solution could identify additional opportunities like a service upgrade based on the combined data. It was a compelling view of an end-to-end integrated process.
Our Take
Siemens has a lot to offer across the product and service lifecycle through the Siemens Xcelerator portfolio and their partnerships. Siemens’ value in SLM goes beyond product data and service knowledge to service execution, enabling an integrated digital thread. The offering extends on Siemens’ deep expertise and strength in PLM and their open platform approach. Together with their partners, they have developed a very compelling offering spanning the product and service lifecycle. If you haven’t seen it in a while, it’s worth a deeper look. We learned quite a bit.
Thank You
Thank you for the briefing Kerri Doyle, Brian Johnsen, Dominique Gilles, Yishai Barak, and Rajvi Vaidya for taking the time for the briefings, we appreciate your time.
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NX Innovation and Customer Adoption
The NX team at Siemens has been very busy. They are on a continuous release cycle, with major releases every December and June. The 4200 enhancements and 45 patents reflect the level of innovation investment over the last year. At the same time, they maintain high levels of quality, as 75% of NX customers are on a release from 2024 or 2023. They've also added over 1000 new customer logos, especially in the SMB space. Their cloud offering, NX X, largely drove this. Additionally, they continue to receive awards from peer review sites like G2 and Trust Radius.
Introducing Designcenter
On January 6, 2025, at the CES trade show in Las Vegas, Siemens introduced Designcenter.
Designcenter is a new brand that combines both CAD products, NX and Solid Edge, to provide a single scalable mechanical CAD offering. The intent is to offer comprehensive workflows that integrate with Teamcenter and Simcenter to provide a seamless experience across design, simulation, and manufacturing.
Both NX and Solid Edge are built on the same Parasolid kernel, making it easier to work with Solid Edge models in NX and vice versa. Over the last couple of years, Siemens has invested in evolving the user interfaces to give them a similar look and feel. This is intended to make it easier for users to switch between the products. Designcenter furthers this approach to bring the two brands closer.
Scalable and Comprehensive
To meet customer needs, whether they are a large, medium, or small enterprise, Designcenter offers four options:
- Essentials
- Standard
- Advanced
- Premium
Essentials is the rebranded product that was formerly Zel X. Standard, Advanced, and Premium are tiered offerings so that customers can match the package with their needs, yet have options to scale should their requirements evolve. All three include built-in data management.
Within these packages, NX offers extensive capabilities for typical parts, assemblies, and drawings. However, based on the business, organizational function, industry, project stage, and supply chain role, some users may need more specialized functionality that is available in an optional module. In the past, it was difficult to justify the investment in an optional module, especially if it was for functionality that wasn't needed regularly. Siemens has addressed this challenge with a value-based licensing model for NX. This concept has worked well in the Simulation/CAE space to give users access to specialized analyses when needed, so it makes sense to apply it to CAD as well.
NX's value-based licensing model uses tokens for optional modules, which allows customers to use and return tokens for different functionalities. The intent is to give customers a cost-effective, flexible way to access specialized functionality when needed. For example, an aerospace company may want to use the token pool to take advantage of optional modules to design machined aerospace components or composite parts.
Enabling a Model-Based Enterprise (MBE)
Tech-Clarity’s research has found that while companies who have started the journey to adopt MBE report many benefits, including better traceability, greater agility, and faster time to market, there are still many barriers to adoption. Interestingly, people and culture challenges are even bigger obstacles than either technology or process challenges. To overcome this, the Product and Manufacturing Information (PMI) embedded in the CAD model needs to become more consumable to downstream departments. Siemens is looking to do this with NX Stage Models, which help manufacturing engineers decompose design models into manufacturing stages, and a new NX Inspector, which supports a new standard for model-based characteristics.
In 2024, the DMSC™, an ANSI Accredited Standards Developing Organization and an ISO A-Liaison, released the Model-Based Characteristics Standard (MBC). The new MBC standard defines a common approach for tagging and uniquely identifying product characteristics for quality processes in a way that makes the PMI both human-readable and machine-readable. This is a giant step toward making PMI more usable, which should encourage MBE initiatives. By supporting this new standard, NX Inspector provides a mechanism for automating inspection plans based on the PMI in the CAD model.
Our Take
It is nice to see all the effort into making NX more accessible, especially to smaller and medium-sized enterprises. Solid Edge customers should also have an easier path to scale up to more advanced capabilities as they need them. The token-based licensing model is also a nice way to make advanced, productivity-improving capabilities available to more users.
What's really exciting to us is the MBE capabilities. The MBE capabilities should be particularly interesting to the Aerospace and Defense industry, which has shown the most interest in MBE.
The vision to move away from 2D drawings has been around for well over 20 years now. However, manufacturing still largely follows a 2D-driven process. Capabilities that leverage semantic PMI to automate downstream processes should go a long way to finally realize that vision. The functionality offered by NX Inspector that supports an opportunity to automate inspection plans based on the 3D model is a big step forward. It should save significant time and reduce the risk of errors introduced with traditional, manual processes that leverage a 2D drawing. This should lead to efficiency gains, which will be a huge motivator for adopting an MBE approach. We look forward to seeing how this evolves, especially as Siemens works towards integrating metrology within its digital industries.
Thank You
Thank you George Rendell, Tod Parrella, Jennifer Piper, and Shaun Ennis for sharing this update.
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Where’s the best place to start in improving supply chain resilience? Our research shows it’s inside the company. Many companies will need to start new initiatives and make additional investments to ensure their data is flowing for supply chain internal value. Data sharing and collaboration are crucial within supply chain disciplines, but also throughout the company between supply chain and engineering, manufacturing engineering, and the plant floor.
Supply chain and business disruptions are normal and often have severe negative impacts. Some of those factors are outside a company’s control, so most companies are investing in supply chain resilience (70%). Supply chain leaders must invest to tackle the #1 supply chain issue for executives: risk. Most companies need to do more to manage effectively and stay agile in the face of uncertainty, volatility, and ever-changing issues.
So, what to do? Change suppliers? Move production? Pull more production in-house and away from external suppliers? Improve design for supply? All of those might have good results.
Supply Chain resilience inside is the key. Gaining visibility into the product development and manufacturing or “make” areas of the company are crucial differentiators for those companies doing well. How would it be to see changes to products or production capabilities within an hour? Companies that can do that are performing better. Our research suggests that strong data flows across the company are a foundation for supply chain resilience.
Yet for many companies, this will require setting up new initiatives and investing at an enterprise level. Some of the changes might be in employee metrics and incentives to foster collaboration. Another idea is to invest in software that might have agentic AI, improved integration, or multi-tier planning and response capabilities.
Read Julie Fraser’s article in the Global Links section of Supply Chain Management Review that went live in March 2025. The above is a summary, and the full PDF of the article is linked here.
Thanks to Richard Sherman and Supply Chain Management Review for the opportunity to share our views.
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How can companies be sure to gain value from manufacturing analytics and AI projects? It turns out benefits are ubiquitous for those who have invested. Yet the Top Performers in our new survey of over 400 manufacturing respondents indicates some key differences that improve their results.
Please enjoy the summary* below. For the full research, please visit our sponsor MESA International (registration required).
Table of Contents
- It's Time to Invest in Analytics and AI
- Why Invest in Manufacturing Operations and Analytics
- Business Challenges
- Smart Manufacturing Journey
- Smart Manufacturing Progress
- Investment Outcomes
- Analytics May Pay Off Faster Than Other Software
- Analytics and AI Deliver Benefits that Matter
- Top Performers Are Role Models
- Smarter Manufacturing
- Descriptive Analytics
- Predictive Analytics
- Predictive Analytics Hurdles
- Overcoming the Challenges
- Predictive Analytics Benefits
- Generative AI and Analytics to Support and Guide
- GenAI Hurdles
- GenAI Benefits
- Rapid Benefits from GenAI
- Manufacturing DataOps Needs Improvement
- Industry-Specific AI
- Key Takeaways
- Recommendations
- About the Research
- Acknowledgments
It’s Time to Invest in Analytics and AI
Analytics and AI Deliver Value to Manufacturing Analytics and artificial intelligence (AI) are hot topics in manufacturing operations today. This research explores what companies are doing, why, and how. The data from 423 responses from companies that manufacture or produce worldwide is conclusive. Those investing in Analytics and AI are gaining substantial benefits. The benefits matter, as they are in the areas that match their objectives: cost, efficiency/productivity, quality, and error-proofing most commonly. 100% of these respondents are facing significant challenges, and 99% are investing in manufacturing operations, analytics, and AI to address them. Those using analytics and AI longer tend to see benefits in more areas. Top Performers doing better on operations metrics are also outperforming Others on business metrics. What are they doing differently? More of them are using dashboards, analytics, and AI. They also prioritize use cases based on business value.Analytics May Pay Off Faster Than Other Software
Quick Positive Impact Investments are always made to yield a return or positive impact. Just as the previous time MESA partnered to conduct this research2, advanced analytics was the top application for rapidly delivering ROI. Nearly a third of the respondents gained the value of analytics and AI relatively rapidly. Changes Over Time We suspect many of the changes between 2022 and 2025 are due to the different sets of respondents. Other possible reasons for the significant changes: The big new drive to AI in the past couple of years is likely a factor in its more prominent showing. Maintenance and asset management have been a focus of predictive analytics. In contrast, sustainability has moved into the realm of legal and regulatory requirements, which may be slowing the benefits. Critical Data Each use case will require a specific set of data. New technologies make it easier to identify and extract essential data from existing sources. Data Foundation Most of these projects require modeling and data-cleansing efforts to deliver benefits. Companies gaining rapid benefits from analytics and AI will likely already have a good data foundation. Paving the Path to Value Companies may get a solid data foundation by implementing some of the other systems on this list, such as ERP, Asset Management, and Manufacturing Execution Systems (MES) or Manufacturing Operations Management (MOM).
Analytics and AI Deliver Benefits That Matter
100% Gaining Benefits
Analytics projects are delivering significant benefits that support top drivers and help meet challenges. Every one of these respondents (100%) reports gaining benefits from analytics programs, which is excellent news for our industries.
Cost
Cost reduction is the #1 driver (p. 4) and actual benefit. Most companies know they could lower costs, but analytics and AI can help to pinpoint where to focus efforts. Predictive and preventive analytics can avoid an array of unnecessary expenses due to waste.
Efficiency & Quality
Efficiency contributes to cost and indicates people are effective, even in the face of a skilled workforce shortage. Error-proofing is necessary for less skilled staff, and even more experienced staff can benefit from error-proofing when change is rapid, the product mix through the plant is high, or specifications change frequently.
What Customers Need
On-time perfect orders make the company a reliable supplier, leading to revenue opportunities and being viewed as trustworthy in these uncertain times. Customers also seek quality; internally that lowers costs, increases revenue opportunity, improves supply chain resilience, and enhances sustainability.
And More
Other areas where respondents report significant benefits from analytics programs include:
- Office visibility into performance (22%), which is crucial to executives and other disciplines since manufacturing is at the center of the company.
- Planning and scheduling at 21% is heavily dependent on insights and is inherently an analytical process.
- Customer satisfaction and collaboration (20%) based on analyzed data and sharing insights can drive revenue.
- Some get benefits in waste/scrap/energy, asset performance and uptime, comparability among lines or sites, employee satisfaction, supplier issues, and returns or warranty costs.
Key Takeaways
Progress: Manufacturers are moving along the Smart Manufacturing path. Many have multiple projects underway or are already seeing results.- Seeking Data Outcomes: Manufacturers are seeking some fundamental data management outcomes from their investments, such as easy access to high-quality, timely, complete plant data for plant employees and integration of equipment, plant, and enterprise data.
- Interested in New Technologies: Many are also focused on advanced analytics and IIoT.
- Varied Drivers: What matters most to manufacturers right now varies, but cost reduction, supply chain resilience, sustainability, workforce skills, and revenue opportunity top the list.
- AI Delivering Benefits: Fortunately, AI in all its forms is delivering benefits in desired areas. Benefits come relatively quickly, with expected payback often in less than a year.
- Supporting Operations: AI can help fill the knowledge gap in today’s workforce, driving efficiency and guiding people.
- Key Differences: Top Performers are more likely to have organizational structures, capabilities, and technologies to support their success.
- Room for Improvement: Nearly all manufacturers we surveyed could improve their data management, governance, accessibility, and operations. We are growing as an industry in this area.
What does it take to digitalize assembly, an area where people must participate? Quite a lot, especially with complex configured products. Over time, MTEK Industry AB has consistently focused on developing software to support complex discrete assembly operations. They keep adding functionality in MOM and beyond to the MBrain digital production system. Integrating to equipment, informing people, and improving are core. They recently added a no-code IT integration platform, Mint, for enterprise data flow. They are delivering value in weeks.
Assembly Focus
For several years, MTEK has focused on creating no-code software that supports manufacturers with complex discrete manufacturing operations typically characterized by configured products, takted or untakted assembly flows, and a high reliance on manual operations. This market has largely been underserved, partly because it’s very complex and changes frequently, often for every configured product (“batch-size one”). Most of these companies have some equipment and automation, but many operations also rely on people since variation is generally the enemy of automation. MTEK started in 2002 as a manufacturing excellence consulting company, so its roots are deep in these industries.
Broad Functionality
Not constrained by what is traditionally included in MES, they have built many functions. MTEK calls it a Digital Production System. MBrain has core functions focused on delivering visibility, a large variety of “make” functions, and a suite of “improve” functions to make lean best practices digital. These functions support specific assembly challenges such as planning, andon, configuration QA, line tolerance, and user competences.
Traditionally, this scope might require four or five specialized systems besides MES. Because it’s no-code, once a customer gets proficient, they can – and typically do – expand it further to meet their specific needs.
Start Where You Are
Anyone who has worked in an assembly operation, particularly a takted one, knows how critical the processes are to keeping products flowing through the plant. MBrain includes a Process, or Method Builder, which is the core tool for constructing a digital replica of the logic of your production and the heart of why MBrain sets out to be a Digital Production System.
They encourage customers to start by mapping their current methods and keep working as they have. Given the no-code design, manufacturers can use the system to identify areas for improvement and then implement them. With more rigid system architectures, clients typically need to identify the “to-be” state before implementation. MTEK challenges that logic and way of working with a more flexible tool.
They can use or later add elements such as getting product data from PLM, reporting materials consumption to ERP, pushing a recipe to a machine, or printing a label. The great news is that customers can view the method or workflow in production, maintenance, quality, etc., at any level of granularity. This supports both skilled and less skilled workers at just the level they need.
Mid-Size Operations Typically
While manufacturers are all different, the MTEK team realized these complex assembly operations have a typical profile. Whether the plant is part of a larger group or the company's entire operations, the facilities are typically 100-250 people, with around $100M in output (+/- 50%). They are often in smaller towns, which limits how large operations can be. Typically, even larger companies are also built by acquiring many smaller operations – meaning there are geographical and historical reasons for the size of a typical plant in discrete manufacturing and assembly. Focusing on this scope of operation, they knew a traditional multi-million dollar, multi-year MES implementation was not the best approach. MTEK’s no-code approach enables MBrain to be both affordable and configurable to the specific operating needs of each customer.
Microsoft Azure IoT Operations Partner
In November 2024, Microsoft’s Azure IoT Operations included MTEK as a launch partner. This is a prestigious position in the Microsoft Adaptive Cloud approach for cloud-to-edge connectivity in manufacturing. Using the Mint and MTalk elements of MTEK’s digital production system, data from equipment, sensors, IoT devices, and adjacent IT systems can feed not only MBrain but also cloud-based analytics. MTEK is strong on its own, but the Microsoft partnership illustrates the advanced nature of their software architecture to enable scaling.
No-Code Mint for IT Integration
The new addition to the MTEK product family is a no-code integration platform, Mint. This innovation from MTEK was originally designed to remove the barrier to growth created by the monetary cost and delay caused by traditional integration work.
As the platform has been deployed with clients, however, MTEK has noticed that the bulk of the value comes from creating a much more integrated systems architecture and event-driven IT/OT stack. Gaining data flows among IT systems can be a powerful and transformative step for manufacturers. The goal is not just to integrate IT systems but to integrate and automate business processes seamlessly. This patent-pending approach to integration can serve MBrain customers and others.
Customer Success
Much of the breadth of functionality has come from customer needs. Since 2020, MTEK has had success with complex discrete assembly customers, including many larger companies whose names you recognize. In one larger company, Accenture was the service partner and saw the value of MBrain. With this no-code approach, many customers report seeing results in a couple of weeks after starting to deploy MBrain. This is not possible with traditional full-code manufacturing software. With the improved IT integration of Mint, the value of these deployments could continue to grow even beyond the MBrain functional footprint.
Solid Combination
No-code, but with built-out functionality out of the box as a starting point, is a strong starting point. Adding so much functionality beyond traditional MES allows MTEK to lay claim to a larger footprint and deliver more value. Integrating the lean tools natively gives continuous improvement a leg up. Integration to automation with MTalk supports automated aspects of the operation. Adding the Mint integration platform addresses one of the most troubling issues in manufacturing digital transformation, helping data flow among systems across the company.
Assembling for the Future
We are convinced that assembly-based manufacturers should explore the MTEK Digital Production System. It seems to have both industry-specific functions that are ready to use and extreme configurability with the no-code approach. Thank you, Tord Johnson and Oscar Wallner, for updating me.
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How does expanding PLM beyond engineering to support the digital thread from requirements through commercialization help manufacturers launch quality products that meet regulatory demands and customer expectations? How can companies take an end-to-end PLM approach to drive better new product success?
Join the Meet the Pros: New Solutions & Expert Advice To Help You Achieve Product Success webinar to hear Jim Brown share Tech-Clarity’s research on how Top Performers get the most out of PLM to drive better, more profitable products. Jim will join Propel experts who will share their perspectives on a more valuable approach to PLM and directly share some announcements and answer questions about their offerings.
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Why would batch process manufacturers want more than their MES to manage operations? To gain real-time intelligence with AI-based optimization at scale. Quartic.ai’s industrial DataOps platform is open to handle data from and serve intelligence to nearly any plant floor or enterprise application. It focuses on confident, timely decisions, complementing MES, LIMS, EAM, and other operations software that focuses on execution.
Closing the Gaps
Manufacturers have long had challenges closing the gap between MES and ERP. This integration may suffer for various reasons, but Quartic plays a role in ensuring the data from all systems is available for operations intelligence. Like older automation or OT systems, some batch process MES and LIMS systems are not entirely open to sharing data. Quartic can again manage that data and put it into analytics data streams.
Industry-Focused Digital Platform
Quartic has spent years refining a comprehensive, enterprise-capable platform for digital DataOps, MLOps, and intelligence delivery for batch process industries. It has successes in pharmaceutical and life sciences, CPG, food and beverage, specialty chemicals, and metals and mining. This means they are ready to handle time-series and relational data, spectral data, real-time and historical data, and events. This company understands batch issues, phases, and challenges. The variability and interdependencies of these industries that make them difficult for others are the starting point for Quartic. The team has expertise in process manufacturing and reliability, data science and AI, and enterprise software development.
Comprehensive Platform
The Quartic Intelligent MOM Platform has three main components: DataOps, Intelligence, and Applications. This is an unusually broad set of capabilities for manufacturing operations, and Quartic is working to ensure that each component is complete.
Full-Stack DataOps
Manufacturers have been discovering in their Smart Manufacturing and AI-based initiatives that getting data ready to use is more complicated than first meets the eye. Quartic’s platform includes OT and IT data connectors and ingestion from many sources, with the capability to put it all in context through a data fabric. This might also be called a unified namespace (UNS). The full stack DataOps with enriched data serves as the enterprise broker that can feed many analytical models, use cases, and feed source systems for wider distribution.
AI Platform
For Quartic, AI is a founding focus, not a new addition. Beyond DataOps, this platform includes MLOps and a full array of industrial AI capabilities. Whether you want an assistant for your people making decisions, a predictive engine to drive forward-looking insights and enable preparatory or preventive action, or a fully autonomous AI agent, these are proven in the platform. While agentic AI has become a hot buzzword in the last year, Quartic has taken this approach for about 5 years.
Applications
Quartic has also had applications available for batch manufacturers for years. The applications may be native or offered with a partner. There are dozens of them, mainly developed at a customer request and developed into a reusable application. Categories of applications include:
- Product performance analysis (all native)
- Enhanced quality
- Maintenance management
- Material tracking
- Energy Optimization
- Production scheduling (with partners)
Flexible for Fit and Future
Quartic has been building this extensive and robust functionality for many years, working with customers to expand in areas of greatest need. Their goal is to create a flexible and robust system that’s also quick to deploy. Flexibility matters to fit companies at different stages of maturity in data integration. It also matters to keep up with future needs as they evolve.
Thanks, Rajiv Anand, Vinodh Rodrigues, and Bryan Pope, for getting us back up to speed! We look forward to following Quartic’s progress in the market.
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Why should Siemens Xcelerator customers embrace low-code capabilities from Mendix, a Siemens Digital Industries Software Business, to accelerate their #digitaltransformation journey?
In today’s fast-paced manufacturing environment, using data from various sources to make informed decisions is crucial for operating profitably. This dynamic data often resides in systems like ERP, CRM, PLM, and MES. However, most manufacturers lack the resources to rapidly develop and deploy software applications integrating data from these systems. IT teams struggle to meet these needs, often too company-specific for solution providers like Siemens to address directly.
Our research, Filling Digital Transformation Gaps with Applications, found that digital transformation increases the speed of change, demands more agility, and creates the need for more (and faster) software development. The survey also found, however, that manufacturers using low-code development are better able to fill their digital transformation gaps to meet their evolving needs.
To stay competitive, manufacturers must repurpose existing solutions, connect them, and augment them with new capabilities. Mendix, Siemens’ low-code platform, enables this adaptability. A recent Mendix briefing to Tech-Clarity analysts shed light on their strategy for helping manufacturers efficiently extend and enhance their core systems.
Adapt and Extend Siemens Xcelerator with Mendix
Mendix makes low-code available for any industry, but Siemens has invested in making Mendix more valuable for industrial customers using Siemens’ existing solutions. There are two ways Siemens customers can use Mendix to extend their product development and manufacturing data:
- Use the Mendix platform to build applications: Manufacturers can use the Mendix platform to easily build and manage applications. Its low-code capabilities empower teams to develop, deploy, and maintain applications more efficiently, which is helpful to get the most out of limited IT resources. Mendix enables application developers to integrate data from Siemens solutions like Teamcenter (PLM) and Opcenter (MES) and make it available to more users. Additionally, it supports external data sources such as ERP, allowing manufacturers to create comprehensive, composite applications that unify multiple systems. By centralizing data and providing access to stakeholders, Mendix helps manufacturers make informed business decisions.
- Use Mendix capabilities embedded in Siemens Xcelerator products: Siemens has strategically embedded Mendix low-code technology within its core Xcelerator portfolio, driving greater flexibility and accessibility. Key Mendix functionalities are already integrated into Opcenter (see our earlier Insight on Mendix Lowcode for Industrial Applications), enabling users to personalize, extend, and enhance the way they use Opcenter in their factories. Siemens is set to embed Mendix into Teamcenter Active Workspace, extending Teamcenter’s existing configurable user experience and empowering product development teams to seamlessly connect and enrich their data with Mendix-powered solutions. This will further the ability of Teamcenter, providing additional capabilities beyond what is available today. This deep integration ensures manufacturers can rapidly adapt to evolving business needs and unlock new levels of efficiency.
Do More with AI, Integrate New Technologies
No briefing today is complete without the mention of #AI, and the Mendix team delivered. Developers can harness AI-assisted development in Mendix to streamline and enhance the application-building process. This capability provides real-time guidance, helping both novice and experienced users develop applications faster, with fewer errors, and accelerating their path to expertise. Beyond the AI capabilities of Mendix itself, Mendix’s low-code approach allows companies to embed new technology, including AI, into their existing solutions. Mendix also enables seamless integration of Generative AI, allowing manufacturers to build intelligent, AI-augmented applications that enhance decision-making, automate processes, and drive greater efficiency across their operations.
Accelerate Digital Transformation and Stay Competitive with Mendix
Mendix offers Siemens Xcelerator customers a new way to stay competitive by enabling rapid custom-application development, seamless data integration from core systems such as PLM, MES, ERP, QMS, and CRM, and leveraging AI. Whether building stand-alone custom Mendix applications or leveraging embedded low-code capabilities within Siemens solutions, Mendix offers manufacturers the potential to enhance agility and drive smarter decision-making. With Mendix, Siemens aims to help manufacturers gain the flexibility to adapt and extend their systems to meet rapidly changing business needs and unlock new efficiencies, ensuring they stay profitable in an increasingly digital and data-driven world. Thank you, UV Subba Rao, Gregory Rosa, and Shaun Ennis, for updating us on Mendix's latest developments.
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In today's volatile market, operational agility is no longer a luxury—it's a necessity to future-proof your manufacturing operations. Our own researcher Julie Fraser joined a panel of experts from electronics, powder coatings, and building products for an interactive webinar on April 9, 2025. Watch our replay below to discover how to navigate these challenges and transform your operations for success. Don't get left behind. The manufacturing industry is evolving rapidly, with a barrage of significant new challenges. To stay competitive, manufacturers need clear, data-driven insights to optimize operations and keep up with constant change. New research from MESA International and Tech-Clarity explores how AI and analytics are being used to drive efficiency, improve decision-making, and strengthen resilience in manufacturing. This webinar uses the research findings as a platform to dive into real-world success stories and practical strategies to help you leverage AI effectively. Listen to this panel discussion to discover:- Why companies embark on a smart manufacturing journey
- Proven AI and analytics strategies for manufacturing success
- Common barriers to AI adoption and how to overcome them
- Best practices for preparing people, process, and technology
- How to choose AI solutions that align with your business goals
How do you accelerate the co-development of hardware and software for your products?
Today's products increasingly rely on software for innovation. Yet, development teams follow different processes and use separate tools to support the engineering and development of hardware and software. This creates silos within the development team that causes breakdowns in communication and hurts efficiency. Then, the inevitable errors and bottlenecks drive up costs.
By integrating Product Lifecycle Management (PLM) for hardware and Application Lifecycle Management (ALM) for software, engineering teams can overcome development silos. This will enable more efficient processes that accelerate the development of higher-quality products. This buyer's guide reveals buying criteria to select the right solutions for integrating PLM and ALM.
Please enjoy the summary* below. For the full research, please visit our sponsor PTC (registration required).
Table of Contents
- Executive Summary
- Why Integrate?
- The Value of a Digital Thread
- How Will Integrating ALM and PLM Help?
- 1. Requirements Management
- 2. Change Management
- 3. Configuration / Variant Management
- 4. Test Management
- 5. Regulatory Compliance
- Adoption and Implementation
- Vendor Considerations
- Specific Company Needs
- Conclusions and Next Steps
- Acknowledgments
Executive Summary
ALM and PLM As fierce market competition drives companies to get to market faster with innovative products, companies need to empower their development teams to be as efficient as possible. Products continue to become increasingly complex, and software plays an ever-growing role in innovation. Silos between development teams increase the risks of problems which drive up costs and cause delays. One way to overcome these silos is to integrate ALM and PLM. Introducing This Guide By integrating ALM and PLM, companies will enable improved collaboration, better traceability with a digital thread, and earlier visibility into potential problems. This will result in a more efficient development process while reducing the risk of finding errors late in the process, helping to avoid delays and increased costs. This buyer's guide will help manufacturers select the right software for an integrated ALM and PLM solution. How to Use This Guide This guide comprises four major sections covering software tool functionality, service requirements, vendor attributes, and special company considerations. Each section includes a checklist of key requirements to support your selection process. This guide does not focus on buyer criteria for PLM or ALM solutions, but rather criteria to support key processes that should span both systems as an integrated solution. It is not an all-encompassing requirements list, but provides a high-level overview of criteria considerations.
Why Integrate
Growing Importance of Software
Software is increasingly becoming a major source of innovation, increasing its importance in product development. Yet, despite its criticality, many companies develop it separately from the hardware. As a result, companies experience many challenges that make the jobs of engineers much harder.
Business Cost
While engineers have done their best to develop processes to deal with the challenges associated with siloed development teams, the increasing complexity and growing requirements make it easy to overlook errors. These errors come at a business cost. Companies can avoid this cost by adapting their development processes to support a more integrated multi-disciplinary approach.
The Value of a Digital Thread
Overcome Silos Hardware and software follow different development methods. The rigor of hardware development has led many companies to adopt PLM to help them manage it. Meanwhile, software is developed at a much faster pace, often following the Agile Methodology. ALM solutions have been tailored to support the rapid software development process. With so much innovation coming from software, software needs to iterate quickly and should not be slowed down by hardware's slower pace. However, keeping the systems separate prevents processes from being managed across disciplines, resulting in companies missing out on opportunities to improve efficiency. Disconnected systems make it hard for engineers to find what they need. They are also unsure if they can trust data as they don't have visibility into changes that impact them. Inefficiency results in engineers wasting 33% of their time on non-value-added work. This non-value-added work includes things like searching for information and recreating work. They often don't even know if they are working with the latest information. Integrate ALM and PLM One way to overcome this is to integrate ALM and PLM. This integration will create a digital thread across the development process, resulting in multiple business benefits (see graphic).
Conclusions and Next Steps
Accelerate Development
With fierce global competition, companies must accelerate their development processes without adding cost or hurting quality. Engineering teams need to be as efficient as possible, yet wasted effort often hinders the development of today’s complex products. Inherent silos across engineering disciplines are often a major contributor to this wasted effort. As software continues to be a significant innovation driver, companies that empower their development teams by overcoming these silos will enjoy a competitive advantage. Integrating ALM and PLM can be a way to achieve this. By bringing these solutions together, you will create a digital thread across the hardware and software, enabling efficiencies that make it harder for competitors to compete against.
Select the Right Solutions for Your Company
Integrating ALM and PLM allows you to create a digital thread across hardware and software development. With traceability to support the management of requirements, changes, configurations, testing, and regulatory compliance, engineers will have greater confidence in their data, resulting in fewer errors, lower costs, and less wasted time. To select the right solutions to integrate ALM and PLM, consider not just software capabilities, but also factors like implementation, adoption, vendor considerations, and your specific company needs.
*This summary is an abbreviated version of the ebook and does not contain the full content. For the full report, please visit our sponsor PTC.
If you have difficulty obtaining a copy of the research, please contact us.
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[post_content] => As highlighted in a Tech-Clarity eBook, “Extending the Digital Thread to the Customer Experience,” manufacturers who maintain accurate, up-to-date, and trusted digital thread data with complete service and maintenance records offer superior customer experience. Additionally, these manufacturers reduce service costs and increase customer confidence by avoiding multiple service visits and fixing issues perfectly the first time.
How can manufacturers delight customers with superior service and drive more profitability? This game-based infographic explores how maintaining accurate service and maintenance records can improve profitability and customer loyalty. It sheds light on how manufacturers can improve their first-time fix rates, optimize spare parts inventory costs, upsell new services and upgrades, convert service records into a strategic asset, and enhance machine quality.
Click here to download the full infographic. For more information about improving service performance and profitability, please visit our sponsor Siemens.
[post_title] => Improve Profitability and Customer Loyalty by Maintaining Accurate Service Records
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Can you reimagine how people interact with enterprise software? Epicor is doing just that. Their announcement of the Prism agentic AI network and orchestrator takes the next step in moving from a system of record to a system of action.
Prism includes conversational AI for employees to interact with ERP, and Epicor plans to integrate automation and causal AI in the future.
Core Agent Capabilities
Kinetic, Epicor’s manufacturing-focused ERP, already has five types of Prism vertical AI agents. The graphic below illustrates and describes the specialized functions of these semiautonomous, pre-trained bots.
Prism's agents use LLM and RAG technologies. While LLMs and related generative AI excel at understanding unstructured data like documents, they struggle with structured data typically found in ERP systems. Prism's first innovation is its ability to navigate ERP structured data effectively.
These agents can answer questions and create filtered lists in multiple ways.
Most ERP users need only particular portions of the whole data set to perform their tasks, and Prism can streamline that.
Epicor has encoded the data structures of Kinetic ERP with typical fields and processes into Prism to pass context onto the LLM. In addition to the standard Epicor agents, they can include customer-specific questions and point to their customizations. So, it is both Kinetic-specific and customer-specific in function.
When crafting new approaches to support employees or automate processes, Prism will determine which agents are required and how many. Depending on the problem to solve or the process to improve, one or multiple agents may come into play.
How It Works
Epicor says it has an unfair advantage since it has broad enterprise functionality that many customers have had in place for years. So, historical data about the business is already stored in a structured data ontology that fits their industry. This forms a quick-start basis for RAG to create an Epicor- and customer-specific context for the large language model (LLM). Newer customers are encouraged to import a rich data set during their implementation.
Epicor talks about three elements of this agentic AI.
- Handshakes, which redefine how humans interact with enterprise-grade data
- Gears, which are the data models, integrations, and APIs that enable data to flow through the system
- Sparks, which are the insights the AI can distill to support decision-making
Security and Data Governance
One of the top issues or fears companies have with using AI is security, trust, and ensuring results are valid. For security, Prism agents act on behalf of each system user. That means the agents only have access to the portions of the system that the user has, based on existing security settings, through Kinetic.
On the LLM security front, Epicor follows standard guidance on OWASP’s 10 pillars for safety and security. They have separate data for each customer and do not pool data across customers. The LLM for Prism is always guided by the context of a specific customer. The business activity queries focus on the company’s data set, logic, and rules.
Coming up Next
As in the graphic above, Epicor is creating an agent for their Enterprise Content Management or ECM. While digitalization has come a long way, companies still tend to do business with documents such as contracts, requirements, etc. Today's many supply chain challenges suggest that this could be a beneficial agent. Questions around supply contracts will likely proliferate as companies restructure their supply chains in the face of tariffs, regulations, and natural disasters.
Another in-development agent will support automating mass modifications. For example, if you have 100 lines in an order, and they all need to be modified, Prism will be able to do that for the user at their request.
Continuing the Conversation
Epicor has continued to innovate and include leading-edge technologies in their ERP platforms for years. This is an excellent milestone for Kinetic in manufacturing. We look forward to hearing more as Epicor keeps moving forward. Thank you, Steven Knuff, for keeping us updated, and to Arturo Buzzalino, Michael Atkisson, Ph.D., and Michael Muckala for creating a concise and informative briefing!
[post_title] => Epicor’s Next Step in Cognitive ERP: Prism GenAI Agent Network [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => genai-agent-network [to_ping] => [pinged] => [post_modified] => 2025-03-11 12:15:52 [post_modified_gmt] => 2025-03-11 16:15:52 [post_content_filtered] => [post_parent] => 0 [guid] => https://tech-clarity.com/?p=21675 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [18] => WP_Post Object ( [ID] => 21599 [post_author] => 2580 [post_date] => 2025-02-26 10:00:26 [post_date_gmt] => 2025-02-26 15:00:26 [post_content] => As highlighted in a Tech-Clarity report, “Drive Higher Profits with IoT Machine Monitoring and Optimization,” Top Performers are more likely to integrate machine data, enterprise systems, engineering data, and operational systems to drive higher profitability. This integration improves their ability to offer low-cost service, keep unplanned downtime low, troubleshoot machine problems quickly, provide data security, and ensure the customer’s machines perform with the highest quality. How can manufacturers win more service business with integrated service and ultimately improve profitability? This imaginary game gives manufacturers some ideas on excelling at offering integrated service. By improving the way they deliver service, companies can win more service contracts and increase revenue and profits from additional sources. Click here to download the full infographic. For more information about improving service performance and profitability, please visit our sponsor Siemens.
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How can manufacturers take advantage of the benefits of product customization without suffering from decreased profitability? We gathered responses from 234 companies involved with to-order products and interviewed two leading manufacturers to find out how to improve product configuration.
Read on or click here to download the full report with no registration required, courtesy of our sponsor, Siemens.
For more information about product configuration solutions please visit our sponsor Siemens.
Product Configuration is Booming, Are Profits?
Increasing Demand for Configured Products Our 2016 Driving Engineer-to-Order Differentiation and Profitability survey showed that most manufacturers were already increasing product customization and 58% expected it to grow in the following years. Time has passed, the results are in, and the predictions held true. The majority of manufacturers have continued to increase customization in recent years. Looking to the future, 94% of respondents to this year's survey say it will continue to grow over the next five years. The Pros and Cons of To-Order Given the growth, it's important to recognize that configuring customized products is both compelling and challenging. Selling to-order products brings significant top-line benefits. However, configuration challenges can lead to business impacts that quickly erode profit margins.Table of Contents
- Product Configuration is Booming, Are Profits?
- To-Order Continues to Expand
- What Drives Customization?
- Differentiating To-Order Products
- Profiting from To-Order Products
- Evolving Customization Strategies
- Evolving Order Strategies
- Recognize Selling Challenges
- Recognize Delivery Challenges
- Recognize the Business Impacts of Challenges
- Identifying the Top Performers
- Top Performers are Transforming Order Processes
- Top Performers are Transforming Order Processes
- Top Performers are Transforming Technical Enablers
- Product Configurators Drive Significant Value
- Conclusions
- About the Research
- Acknowledgments
To-Order Continues to Expand
Product Configuration Continues to Grow
Selling to-order products is not new, but it is evolving. One way it's changing is an increase in the amount of configuration and customization in companies' products. Our research over the years has continuously predicted growth in product configurability, and it appears the appetite for customization continues to expand.
Today, over one-half of respondents report that the amount of configuration / customization in their products grew over the last five years. Further, an overwhelming 94% say it will further increase in the next five years! Perhaps just as tellingly, not a single company said they expect it to decrease, even somewhat, in the next five. Selling and producing to-order products is the reality for manufacturers, and there is no end in sight.
What Drives Customization?
Change Revenue Drives Customization
Given the growth of customization, we wanted to understand the primary reasons companies offer to-order products. The short answer is product sales. Three-quarters of companies say they sell to-order products to differentiate from their competition. In addition, two-thirds do it to command higher prices, perhaps because they can better meet customer needs. This driver grew from only 28% in the prior survey. It's important to note that these benefits are not exclusive, and many companies reported both as drivers.
Some Companies Don’t See Another Option
Historically, our surveys show that many companies feel they must configure products. It's just the nature of their industry. Typically, between one-third and one-half of companies in our studies report this. In this study, fewer companies selected that option. However, more than one-half say that they feel required to sell to-order products in order to sell their standard products. This may account for the discrepancy because selling configured products to maintain the ability to sell standard products wasn't an answer choice in the earlier studies. Protecting sales may be why they said it's just the nature of their industry. While an industry may not require all products to be custom, some customers may require suppliers to customize products to their needs to maintain their status as a preferred supplier.
Localizing Products is also a Common Driver
Configuring products to order can also help companies define a product once and tailor it to specific market needs for an order. Over one-third of respondents report selling to-order products to allow them to localize their offerings for different markets or geographies, similar to the earlier survey.
Differentiating To-Order Products
Better Meeting Customer Needs Given the prevalence of customization, how can manufacturers differentiate their to-order products from those of their competitors? The overwhelming answer is to better meet customer needs, as reported by about three-quarters of companies. In addition, about two-thirds differentiate through their level of product customization. Manufacturers that are flexible enough to satisfy customers' needs are more likely to win the business, assuming all else is equal. “One of our key advantages is that our products are not cookie cutter. Our custom engineering and manufacturing capabilities enable us to deliver tailored solutions,” explains Stone Kane, a business analyst at Schumacher Elevator Company. “Customization allows us to be competitive.” Differentiate Through Customer Experience As mentioned above, meeting customer needs will likely lead to the order if all other things are equal. However, this is rarely the case. Another essential factor is offering a compelling configuration experience. For example, about one-half of responding companies report developing quotes rapidly is important to differentiate. This has more than doubled since the previous survey. Customer expectations have gotten higher as manufacturers have improved their product configuration capabilities. Differentiate Through Efficient Operations Efficient configuration execution is also essential. One of the primary ways that companies compete by operating efficiently is by offering a competitive price. One-half of companies report price as a way they differentiate and the importance of cost as a differentiator has significantly increased. “Speed to market is huge, and newer customers just want the highest value product,” says Ingersoll Rand’s Geoff Leach. This is another sign that customer expectations have increased, even for highly configured items. This may be due to increased configuration maturity and fiercer global competition in the manufacturing industry. Beyond cost, effective operations can also help deliver service excellence and product reliability, which are also differentiators.Profiting from To-Order Products
Deliver Rapidly on Customer Expectations Capturing orders through differentiation is only valuable if that business is profitable. Companies must do many things right to make money from configured products. These include setting and meeting expectations created by quotes and effectively executing configured orders. Accurately Predict Cost, Leadtime, and Performance Two-thirds of responding companies say that offering accurate quotes is one of the most impactful factors driving the profitability of their to-order products. Over one-half also report both engineering and delivery leadtimes as drivers. In addition, about one-half report meeting planned performance drives profits. Increased emphasis on price differentiation puts stress on the ability to predict product costs. Without accurate predictions, manufacturers must cushion their price and risk losing the sale or keep prices tight and risk selling unprofitable deals. The same is true for promised leadtimes. To compete, manufacturers must be able to set – and meet – customer expectations. This goes well beyond capturing order parameters. Offer a Compelling Order Experience Beyond that, companies must ensure an effective order process. Almost one-half of respondents say that order accuracy impacts profitability, and well over one-third report that the ease and speed of their customer's order experience drives profits. “Speed and accuracy are critical factors that help us win more work,” says Schumacher Elevator’s Kane. Getting the order experience right drives profitability, not just competitive differentiation. Of note, companies are less than one-half as likely to report that fast quotes drive profits as accurate quotes do, although rapid quotation is essential to differentiation. It appears that it's more important to get quotes right than deliver them fast to make money, although both are important to differentiate.Evolving Customization Strategies
The Bar on Configuration is Higher
The challenges companies face designing, selling, and producing to-order products are significant, and the bar for selling and delivering them is higher than ever. How are companies responding?
Make Customization More Standard
To-order product strategies are shifting to help companies simultaneously increase customization and lower configured order complexity. They want to offer customization, but they want it to be less burdensome. Several of the most common strategies aim to meet customer needs in a more standard or configure-to-order (CTO) approach instead of an engineer-to-order (ETO) way to reduce cost, time, and the chance to introduce errors. Around three-quarters of companies are shifting products from ETO to more pre-engineered, modular CTO products. “Customers want it faster. CTO, taking out the ETO element, is helping us get there,” shares Geoff Leach of Ingersoll Rand. “Engineering is expensive, and CTO reduces our engineering hours,” he adds.
A related approach, reported by almost two-thirds of respondents, is to steer customers toward more standard products through guided selling. This allows companies to meet customized needs but do so with more standard configurations. Another approach that decreases complexity, reported by 42% of companies, is selling products that are ETO at the systems level but basing them on more standard / CTO components.
Maintain the Ability to Meet Customer Needs
Clearly, manufacturers are pursuing more than one of these approaches. They are complementary and signify a desire to minimize custom engineering if possible while recognizing the reality that meeting customer needs drives differentiation. It's important to note that this isn't counter to the goal of meeting customer needs, as over one-third are trying to increase customization. The idea is to pursue custom products with the ease of standard products.
Evolving Order Strategies
Companies are Shifting Configuration toward Customers
We investigated a trend for manufacturers to move configuration closer to the customer, such as from sales engineers to salespeople or from distributors to customer self-service. We found a clear desire to shift configuration "left" toward the customer. Having customers configure their own orders may be an opportunity for them to better validate their orders if they have the means to do that effectively via self-service. It can also help save time and increase efficiency, increasing quote response times and freeing up engineering time for innovation, again, if it is enabled properly.
Recognize Selling Challenges
Challenges Throughout the Order Lifecycle With the bar set higher, it's essential to examine the challenges manufacturers face when selling and delivering to-order products. Configured products create inherent challenges across the product lifecycle. We'll start with the challenges with configured quotes and orders. Estimation and Speed Issues From an order perspective, companies face estimation and speed challenges. Specifically, about three-quarters of responding companies have difficulty developing accurate cost estimates. This is a significant issue because developing accurate quotes is the most common profitability driver. Stone Kane of Schumacher Elevator explains, “We used to face inconsistencies because every project is unique, and it’s challenging to accurately estimate the engineering time required, particularly for more complex designs. Our previous system relied on a basic spreadsheet, which lacked dynamic pricing capabilities, meaning ten different salespeople could potentially generate ten different prices for the same project.” In addition to the need for accuracy, about two-thirds have trouble responding quickly. This is also a significant business issue because one-half of companies see rapid quotes as a differentiator. It's challenging to be both accurate and fast, but that's the reality. Accurate cost estimates and rapid quotes were already the top two challenges in the earlier survey, but both have grown in prevalence. Ensuring Orders Meet Needs Companies must make sure that configured orders are manufacturable, but also ensure they will deliver the value the customer’s desired value. Almost one-half of responding companies, however, have difficulty ensuring that ordered configurations meets customer specifications. If the configuration isn't right up front, it will cause significant downstream issues that can impact cost, time, and customer satisfaction. “Communication between engineering, sales, and tendering wasn’t very detailed or accurate, and they didn’t always pass those details onto engineering,” Geoff Leach of Ingersoll Rand recalls. “It would come up later and lead to expensive rework.” And if a company can't develop a valid configuration, how can they predict costs to develop an accurate quote?Recognize Delivery Challenges
Inefficiency and Extra Engineering Work
In addition to selling challenges, let's review challenges related to engineering and manufacturing to-order products. The first category of challenges is the burden on engineering. The most common challenge, reported by about three-quarters of manufacturers, is too many "specials" that require extra engineering work. This is likely why companies are trying to shift from ETO to CTO. The next most common challenge, reported by about one-half of companies, is accommodating customer change requests. “Projects evolve over time. It’s not uncommon to deliver solutions that differ from the original plans ,” shares Stone Kane of Schumacher Elevator. Changes may occur because customer needs change or because of errors in validating orders or predicting performance. Either way, they are time-consuming and disruptive.
Over one-third of respondents also share that they struggle with long engineering lead times with too much manual effort, perhaps due to specials or lack of automation. These challenges impact engineering and delivery leadtimes, which are in the top three most common profitability drivers.
Predicting Performance and Cost
Predicting performance and cost are both issues reported by over 40% of responding companies. This is a big challenge considering that accurate quotes are the most common profitability driver and better meeting needs is the most common differentiator. Overall, to-order product challenges reflect both engineering workload and the inability to estimate cost and performance of to-order products, signifying that engineers are working hard to meet deadlines but can’t determine the engineering information needed to drive profitable business.
Additional Challenges
We discussed the most common challenges, but manufacturers reported many other challenges, including supply chain volatility, designing new configured products, providing complete / accurate information to manufacturing, coordinating with suppliers, increased software in products, and a lack of knowledgeable engineering resources. Designing and producing configured products is just hard.
Recognize the Business Impacts of Challenges
Cost Overruns The number and frequency of order, quote, engineering, and manufacturing challenges lead to material business impacts. The most common, reported by about two-thirds of respondents, is overrunning cost targets. Perhaps it's not surprising given that three-quarters of companies say predicting costs is challenging. It's a significant business issue because offering accurate quotes is the most common profitability driver. Errors and Quality Issues From an execution perspective, the challenges lead to significant disconnects that cause downstream issues. For example, almost one-half of responding companies report manufacturing errors. This can happen if orders aren't validated properly or if inaccurate predictions require changes. Further, many companies find translating ordered specifications into executable manufacturing instructions hard. These issues can also impact delivery leadtimes, potentially because of the need for extra engineering or rework. Not all of these issues, it appears, are caught in engineering or manufacturing. Over one-third of companies face recalls / warranty work because errors escape the factory. In some cases, they can also result in fines or brand damage, as can late product deliveries.Identifying the Top Performers
Tech-Clarity’s Performance Banding Process
To understand best practices processes and technology, we use a benchmarking process we call "Performance Banding." We look at responding companies' performance against metrics that represent success in our research topic. We create an aggregate score across these metrics and identify (approximately) the top 25% as "Top Performers." We then look at what these leaders do differently from the poorer performing companies, the "Others.”
Benchmarking To-Order Top Performers
To understand which companies profit more effectively from their configured products, we benchmarked the financial performance for to-order products over the last 24 months as compared to their competitors for:
- Revenue growth
- Profitability
Top Performers are Transforming Order Processes
Top Performers are Shifting CTO Orders Left The vast majority of manufacturers would like to shift configuration closer to the customer. Top Performers are ahead of the curve in this trend and are 74% more likely to have significantly shifted configuration left. ”Configuration extends to tendering and sales people, they select the options best align with customer specs based on standard options, which are controlled by engineering,” says Geoff Leach of Ingersoll Rand. “We were able to do that because the configurator provides guard rails and gives engineering more control, which cuts down on margin erosion.” We also found that the top-performing companies are 61% more likely to view customer self-service as a differentiator. We analyzed who typically configures responding companies' to-order products to better understand this transformation. At Schumacher Elevator, Sales creates a project and adds the specs, finishes, and other parameters and then the configurator estimates a price and generates a proposal. “There’s also been talk about having customers and architects use it directly,” shares Stone Kane. We found that Top Performers are 46% more likely to have customer self-service for their to-order products and about twice as likely to have self-service for distributors and partners. As a result, they are about one-third less likely to have engineers configure orders, freeing up engineering resources. However, they are just as likely as Others to have sales engineers or sales do so. Shifting Left has Business Benefits These findings show a correlation between shifting configuration left and achieving better business performance. This indicates that transferring order configuration away from engineers toward customer self-service has significant business benefits.Top Performers are Transforming Engineering Techniques
Top Performers Design Differently Top-performing companies are more likely to take advanced approaches to product design that make engineering and producing configured products more effective and efficient. Specifically, they are more likely to use both modular and platform design approaches. This was also the case in the previous survey. As shared in the earlier report "platform and modular design approaches allow order engineers to more readily reconfigure products. Modules developed with standard interfaces can be replaced more easily to address specific customer needs, for example by substituting a more powerful motor or higher torque gear assembly." Compared to 2016, however, more companies in both performance classes follow these approaches, suggesting that processes are more mature and that the bar has raised. Top Performers Configure Differently In addition, we found that Top Performers are more likely to engage in multi-level configuration, also known as “product in product.” This technique allows configuration at the product, assembly, module, or even systems level. It is a form of modular design where configured modules can be used in higher-level assemblies or systems to make those underlying designs more consistent. This is a more complex form of configuration that increases standardization and reuse. Although it takes more time to set up, it drives repeatability and saves significantly on engineering individual orders. Better Engineering for To-Order Has Business Benefits The approaches employed by the Top Performers show that manufacturers who design more strategically for configuration are achieving better business performance. We believe that taking the time to design for configurability helps reduce operational complexity to help deliver to-order products more effectively.Top Performers are Transforming Technical Enablers
Top Performers Support To-Order with Configurators and PLM
Top Performers are also leveraging different technical enablers. The most common way Top Performers and Others take orders and develop quotes is by using a sales configurator. Sales configurators typically handle customer and order parameters very well. However, this is not the most differentiating approach among the Top Performers.
Top Performers are more than twice as likely to use PLM to develop quotes. This is likely due to the need to get designs right so they can use them for cost, leadtime, and performance predictions. “Having one source of truth to find information can save you a lot of money and opens up the door to hand off the data downstream in a consistent manner to improve leadtimes and efficiency,” explains Stone Kane of Schumacher Elevator. “Otherwise, a lot of money can be left on the table due to poor communication .”
Top Performers Use More Configuration Capabilities
Beyond sales configurators and PLM, companies use other technologies like technical configurators. Researchers found that the most differentiating use of configurators was not which type of configurator they used but what capabilities they used it for.
The most common uses, pricing and quotation, are important but not very differentiating. What sets Top Performers apart is using more advanced configurator capabilities, including technical drawing creation, CAE automation, 3D visualization, and engineering calculations. These capabilities go beyond simple options and variants to leverage an engineering product model. More importantly, these specialized capabilities help support the top to-order differentiators and profitability drivers, including estimating costs, leadtimes, and performance and driving speed, efficiency, and quality. ”We added a considerable amount of automation to create models and documentation,” explains Goff Leach of Ingersoll Rand. “We were able to reduce engineering hours by about 75% because we have CAD automation that works hand-in-hand with our PLM.”
The Basics Aren’t Enough for Higher Business Value
The Top Performers and Others commonly use standard capabilities like capturing order specs. They are essential features and add value but do not necessarily lead to better business performance. We believe that configuration maturity has increased and these features have become basic requirements to compete, but driving a competitive advantage now requires more advanced capabilities.
Product Configurators Drive Significant Value
Value Achieved from Product Configurators
While Top Performers are gaining more significant competitive advantages through their best practices, both Top Performers and Others reported valuable business benefits. Companies don't have to be Top Performers to overcome to-order challenges and improve to-order execution.
The benefits reported from using configurators are clear, and range across different facets of to-order business, including:
- Higher product quality
- More accurate and better-validated orders
- Accurate manufacturing documentation
- Accurate and timely quotes
- More efficient engineering
- Shorter leadtimes
- Lower product cost
- Shorter delivery leadtimes
- Fewer order errors
- Greater engineering efficiency
- Higher product quality
Conclusions
Configuration is Growing Our research shows that the amount of configuration in products has been steadily growing and continues to increase. There are a variety of reasons for offering to-order products, but the most prominent is to capture more business. Selling to-order products helps manufacturers better meet customer needs to earn their orders. Configuration is Challenging The survey results show that selling and delivering to-order products remains challenging. Manufacturers face a variety of challenges when designing, quoting, selling, and producing their configured products. Some of the most significant challenges relate to predicting cost and performance and the ability to execute quickly despite complexities like change requests.
Configuration Strategies are Evolving
Respondents report adopting new strategies that reduce to-order complexity to address these challenges, including shifting from ETO to CTO products and guided selling. We don't believe these approaches are to reduce the ability to meet customer needs, but to address them more efficiently. As evidence, we still see that quite a few companies are increasing the level of customization in their products.
Configuration Strategies are Maturing
To support these strategies, companies are adopting best practice order processes, engineering techniques, and technical enablers. These practices include shifting configuration toward the customer and adopting proven engineering practices like modular design. Best practices also extend to technology, including configurators and PLM, and more advanced configuration capabilities that rely on an engineering product model. These best practices help manufacturers more rapidly and predictably deliver customized products that meet customer needs with less of the engineering burden typically associated with ETO.
Configurators Drive Business Value
The final conclusion from the survey is that configurator technology leads to significant benefits for both Top Performers and Others. “Our configurator enables us to estimate projects with increased speed and accuracy,” explains Stone Kane of Schumacher Elevator. “That increases our opportunities to secure more jobs .” These benefits add strategic competitive advantages because they align well with the to-order differentiators and profitability drivers. “Our configurator led to lower cost and leadtime savings, it’s working,” concluded Geoff Leach from Ingersoll Rand. Although Top Performers report more significant advantages, companies from all performance levels report achieving benefits from product configurators.
Click here for the full report with no registration required, courtesy of our sponsor, Siemens.
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