How can automotive companies leverage digital manufacturing best practices to launch and scale EV programs faster?
How can they set the stage for greater agility to drive innovation and improvements of all kinds into production?
Read our eBook to see how automotive companies can take advantage of disruption and transform to meet today’s challenges and set a foundation for greater success by further leveraging 3D manufacturing process modeling and simulation. Please enjoy the summary below or download the full eBook courtesy of our sponsor, Siemens.
Please visit our sponsor, Siemens, to learn more about how they are helping manufacturers manage complexity and leverage data for a competitive advantage in the EV industry.
Table of Contents
The EV Revolution Demands Change
Adopt Best Practices in Production Planning
Digitally Transformation Manufacturing Planning
Increase use of 3D Modeling
Simulate, Validate, and Optimize Production
Conclusions and Next Steps
Acknowledgments
EVs are a Disruptive Force
Electrification is Disrupting the Transportation Industry
Our data shows that risk and disruption increased for about two-thirds of automotive and transportation companies over the last five years, and for roughly one-third, it "significantly" increased.1 The electric vehicles (EV) transition is causing upheaval and is undoubtedly a big contributor to the problem. The impact is significant on both pure EV manufacturers and traditional internal combustion engine (ICE) driven vehicle producers combatting new entrants. Today's rapid pace of innovation has disrupted the status quo, resulting in the need for speed, innovation, and agility. Leading automotive companies are taking the opportunity to turn disruption to their advantage, creating a chance to innovate and differentiate themselves.
Driving Change through Better Manufacturing Planning
The EV-driven disruption demands digital transformation across the business. One area that can make a strategic difference is manufacturing engineering. Companies need to improve production planning to drive faster, more agile introduction of innovation in EV and ICE programs alike. And they have to do this despite increased complexity and without disrupting quality. Fortunately, the automotive industry is accustomed to change, and best practices already exist. Our research shows that top-performing automotive companies are more likely to leverage proven practices for manufacturing engineering, specifically 3D modeling, simulation, and collaboration.
This eBook explores:
How can automotive companies leverage digital manufacturing best practices to launch and scale EV programs faster?
How can they set the stage for greater agility to drive innovation and improvements of all kinds into production?
The EV Revolution Demands Change
Transformation is Mandatory
The move toward electric vehicles is picking up pace. New entrants paved the way and created a market that demands alternative fuel source transportation. In many cases, these companies have innovated in manufacturing processes in addition to vehicle designs. Some changes have been necessary because of new processes like battery assembly and fundamental powertrain differences. But these companies have also pushed the limits on new materials and new production processes like additive manufacturing and Tesla's Giga Press.
Don’t Forget Lessons Learned
Some manufacturing methods have to be revised, reinvented, or invented in the first place to bring EVs to full-scale production effectively. However, traditional manufacturers have decades of experience and knowhow on effectively planning and launching vehicle programs at scale. Many of the basics still apply, and manufacturers shouldn't discount decades of learning. That knowledge must continue to be captured, reused, and continuously improved. At the same time, new materials and methods from EV programs can be evaluated for ICE production. Of course, it's important to remember that even "traditional" vehicle production needs to transform to accommodate increasingly software- and systems-oriented vehicles, shorter vehicle lifecycles, and greater vehicle personalization.
[post_title] => Transforming Manufacturing Planning in the EV Era
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[post_content] => Might international standards for data exchange and interoperability between trading partners worldwide finally take hold? Could multi-enterprise manufacturing networks get cost-effective data flows in an open, vendor-agnostic network? That’s the intention of International Manufacturing-X Council (IM-X). Michelle Boucher and I had an opportunity to learn about this new consortium of 10 nations from CESMII (The US’ Smart Manufacturing Institute) CEO John Dyck.This is an urgent need. Our research shows that over two-thirds of manufacturers spend a lot of time, effort, and expertise to integrate and maintain integration between MES, quality, maintenance, scheduling, IoT, and machine or equipment data. From 2020 to 2023, this did not improve. And that’s just in the operations. Extending integration so data flows across the enterprise and supply chain compounds that challenge.CESMII has been advocating for the best interoperability standards in manufacturing enterprises and plants. The goal is to democratize digitalization by commoditizing (or turning open-source) aspects that are not proprietary. This new consortium takes work CESMII has been doing – and some it has done jointly with Germany’s Platform Industrie 4.0 – more global and into the supply chain.IM-X’s vision “is to enable open, global and cross-industry operation of cost-effective data networks. This will be realized through three sets of strategic initiatives:
Connect value chains and manufacturing data networks across supply chains, industries, and countries
Implement global foundations for data-driven resilient, sovereign and climate-neutral production covering the full life cycle of production and products
Enable innovative value creation in an interoperable and sovereign data ecosystem.”
They plan to implement a global, cross-industry data ecosystem for smart manufacturing. If they succeed, IM-X’s work could transform global trading capabilities for manufacturing industries. Dyck compared it to the US’s Interstate Highways program started by Eisenhower in the 1950s. Easy information access through the best available technology could enable more companies of all sizes to succeed.IM-X is focusing on creating a federated, decentralized, collaborative environment. This pre-competitive work enables countries to contribute to an open-source or crowdsourced network. Data continuity (internally and externally) is the foundation for visibility and collaboration, whichour research shows are crucial to success.Each country has one vote in this council. The ten nations and organizations involved are
IM-X plans to use existing work from these nations and organizations. The council first convened this summer. They are already thinking about policies, trust frameworks, and legal frameworks. Other countries may also join in the future.The well-rounded makeup of CESMII and many of these organizations bodes well. A mix of industry, government, academia, software vendors, and machine builders using carefully vetted and impartial funding helps to capture and consider all perspectives. This “institute” format has been a proven approach for advancing manufacturing in Germany. Reconnecting with my long-time friend and colleague John Dyck was a delight. We are excited to learn about CESMII’s US representation in this new consortium. We will stay tuned for news from CESMII and IM-X.
[post_title] => International Manufacturing-X Council for Supply Chain Data Flow
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[post_content] => What is missing in transforming into a model-based enterprise (MBE)? For one thing, continuity from engineering to shopfloor and back. Gaining MBE continuity is a many-faceted challenge. There are people, process, and technology issues to transform. In this on-demand webinar we explored those issues. It will get you thinking about how details of the digital model flow impact your business success. We also pointed out ways to start the MBE journey, even if continuity is not 100% in place. Julie Fraser hosts a discussion of the issues that arise and how to get on the journey. Panelists Jonathan Scott of Razorleaf has deep PLM and product design engineering expertise, and Michel Gadbois of iBase-t is an expert in A&D manufacturing and operations. Each of them sees many customer challenges and will share some of what they see and the problems that a lack of continuity from engineering to shopfloor creates.In this wide-ranging interactive discussion, we will touch on these questions:
Where are the common breaks in the digital thread?
What are some practical things companies can do to improve continuity?
How can the comprehensive product models envisioned in MBE generate more value?
Why do the UUID or CAD ID and instance identification matter so much?
Bring your thoughts, experiences, and questions.Register to watch our conversation!Thank you to iBase-t and Razorleaf for the opportunity to make this webinar available to our industry!
[post_title] => MBE Continuity from Engineering to Shopfloor and Back
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[post_content] => I just learned about a new solution from a briefing from PLM provider Duro. The briefing, by coincidence, followed a recent conversation on LinkedIn about the value of a simple approach to managing product data. The discussion brought me back to a lot of my early research on “how much PLM is enough” and generated a lot of discussion about how a simpler approach to managing product data may be right for some manufacturers. It’s an important topics and one that Duro is well aware of.Duro Launches PDM OneThe news is that Duro launched a new PDM One solution that builds on a rich cloud file management platform, in this case, Dropbox. The value of Dropbox is clear, and many companies use it to manage and share files of all kinds, including product design and development files. Dropbox has invested heavily in the ability to manage, secure, backup, synchronize, revision control, and share files. But they lack the experience, domain knowledge, and focus required to support the intricacies of design file management. Duro, on the other hand, has significant domain expertise in supporting product design and engineering with a specialization in high tech device development. Duro already has a cloud PLM solution for lean hardware development. Now, they’ve extended on that knowledge to create a basic PDM system that extends Dropbox capabilities to protect and manage CAD files, support check-in/out, and allow collaboration across the supply chain. This solution will be embedded into Duro PLM for easy access. Plans for the FutureDuro also plans to provide customers with the option to use Box, Google Drive, or Microsoft OneDrive to give customers the choice to use what best fits their business, and likely the one they are already using. They’ve implemented PDM One in a file-centric way that mimics folder structures that many smaller companies and startups already use to manage their files and lifecycle states. Today, PDM One is what we would call design data management or basic product data management (PDM) and it offers a more comprehensive offering in combination with their product lifecycle management (PLM) solution. It will be interesting to watch how the solution evolves and how it is adopted by customers. It’s a clever approach that leverages a robust cloud data platform and extends it for simple data management. Duro has work to do to build integrations with CAD solutions and will likely extend the capabilities, but their initial offering will probably prove to be enough for many companies moving from an unmanaged or ad hoc environment. Duro is definitely a vendor that high tech companies should keep on their radar screen.Thank YouThank you James White and Aphrodite Brinsmead for bringing this to my attention and to Mike Prom for your time explaining the product and future strategy.
For related research, read the commentary from our December, 2022 briefing with Duro about their goal to deliver agile PLM for hardware manufacturers.
[post_title] => Duro offers Simplified Design Data Management with PDM One
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[post_content] => Visibility and collaboration are crucial to supply chain success and resilience, but even getting that internally can be a challenge. Join as Julie Fraser facilitates a discussion in MESA’s Smart Manufacturing Community Smart Connected Supply Chain Group on November 29.
What are manufacturers doing to see and work both within and beyond the supply chain discipline?
Who most needs to contribute to and collaborate in the supply chain planning process for it to be effective in the face of constant change?
What data and types of systems are you integrating as top priority?
Is internal visibility and collaboration more or less important than with suppliers and customers? Where are the interdependencies?
What role do digital twins play in supply chain visibility and collaboration?
What are the keys to success in people, processes, and technology?
Are you treating this a major transformation or ongoing adjustments?
Come share your experiences, stories, questions, and what you have learned in a safe, non-commercial environment. We seek to understand the state-of-the market, understand what companies have done that has or has not worked, documenting questions that MESA and the community can help answer. Overall, the goal is to accelerate each participant’s learning and progress toward Smart Manufacturing. Not registered for Manufacturing Enterprise Solutions Association (MESA)'s Smart Manufacturing Community? Register here! (Open for members and nonmembers) Once you are registered, you will be sent a calendar invite with the call-in information. Learn more about MESA's Smart Manufacturing Community Groups.
[post_title] => Building Internal Supply Chain Visibility and Collaboration
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[post_content] =>
How much do disconnected tools cost your business?
Historically, most companies have relied on multiple disconnected tools to get the job done, particularly in product development and manufacturing. IT then invests significant effort to integrate them. Interestingly, Top Performing companies say that reducing manual efforts and non-value-added work is most important for successful product development and manufacturing software. To achieve this, they point to solutions that easily integrate. This leads to the question, should companies invest in best-of-breed solutions they must integrate or adopt an integrated platform? Do the benefits of adopting best-of-breed point solutions outweigh the cost of working with disconnected tools?
Based on a survey of 187 IT, product development, and manufacturing professionals, this research study examines these questions. It looks at what IT needs to be successful in their job and how they can provide the most value to their company, including product development and manufacturing teams. It reveals best practices for overcoming the costs of disconnected tools and how to empower IT to focus more energy on the tasks that offer the most corporate benefit and make them even more successful.
Please enjoy the summary* below. For the full research, please visit our sponsor SOLIDWORKS (registration required).
Table of Contents
Executive Summary
IT is Critical to Business Strategy Execution
Address IT Bottlenecks to Ensure Success
Identifying Top Performers
Product Development and Manufacturing Software
Product Development & Manufacturing Requirements
Is Best-of-Breed Still the Best Approach?
Best-of-Breed Impact on Users
Overcoming Best-of-Breed Challenges
An Integrated Platform Solves Many Challenges
IT Advantages of an Integrated Platform
What It Takes to Keep Product Data Secure
Recommendations
About the Research
Acknowledgments
Executive Summary
IT’s Role in Competitiveness
Companies must be as efficient as possible in today's competitive global environment. Many are turning to digital transformation to achieve greater efficiencies, leading them to rely on IT to execute. Yet, IT must deal with many issues that hold them back. They rate the time and effort required to integrate software applications as the top issue consuming their time, taking them away from enabling business strategies.
Product Development & Manufacturing
The right software solutions empower engineering and manufacturing and are critical to a digital transformation strategy. To be successful, product development and manufacturing need their software to reduce manual efforts and non-value-added work to help them meet time to market goals, improve quality, and lower costs. This requires integrated solutions, yet IT rates integrating software solutions as the top challenge of implementing product development and manufacturing solutions.
Does Best-of-Breed Still Work?
The challenges associated with disconnected tools lead to the question, what's better, a best-of-breed or integrated platform approach? Historically, best-of-breed solutions were preferred. While individual tasks benefit, to achieve the efficiencies promised with digital transformation, manage product complexity, and respond to competitive pressures, the entire product lifecycle, from design to production, should be considered. The lack of integration across tools creates bottlenecks and breaks the digital thread, negating potential time savings when improving a single task. Further, IT rates the efforts required to integrate solutions as the top challenge associated with a best-of-breed approach. To overcome this, most of those using best-of-breed solutions believe adopting a platform of integrated tools will help.
Integrated Platforms
Those who use an integrated platform, validate this idea as 99% of those using an integrated platform report advantages over other approaches. These advantages lead to improved product quality, greater efficiency, greater ability to scale the business, lower product cost, and better business agility.
With a platform, IT can avoid wasting time managing complex compatibility matrixes and integrating software. Instead, they can focus on activities that increase their visibility as a corporate strategic asset.
IT Is Critical to Business Strategy Execution
Top IT Strategies
The role of IT has evolved from a tactical “order-taker” delivering on requirements provided by business leaders to a more strategic one. Now IT is more likely to collaborate with business leaders to help identify and define business problems.1 The top IT strategies reflect this more strategic focus.
Digital Transformation
Digital Transformation has enabled many companies to achieve efficiencies that are hard for competitors to match.2 As such, Tech-Clarity's research finds that 41% of executives attribute digital transformation as a top business factor driving long-term success.3 Consequently, many executives place high importance on digital transformation, making it a priority for IT.
Successful digital transformation relies heavily on implementing the right technology. However, it is a considerable undertaking as true digital transformation impacts all business processes and requires a deep understanding of company processes, bottlenecks, and optimization opportunities. Implementation requires a significant IT investment. It is also a journey, requiring continuous improvement to realize the highest levels of efficiency.
Enable the Business
IT must ensure its strategies align with business goals. They must meet today's business needs and consider future needs to ensure that whatever they implement doesn't limit the business and will scale as it grows. They also need to ensure that what they implement provides value so the company realizes the expected return on the investment (ROI). Finally, they need to ensure that they can support a variety of environments across all company locations, including those working from home or on the road.
Recommendations
Recommendations and Next Steps
Based on industry experience and research for this report, Tech-Clarity offers the following recommendations for IT staff:
Ensure the success of product development and manufacturing software by focusing on automation to reduce manual efforts.
Keep in mind the significant time pressures faced by product development and manufacturing teams. Connecting time savings to any new software solution will encourage their adoption.
Consider the benefits of an integrated platform over a best-of-breed approach. Technology advancements over the last several years have led to powerfully capable integrated platforms that will not have the drawbacks of disconnected tools.
Recognize that digital transformation is not just a technology solution. An integrated platform can help, but implementation is critical. It should increase data reuse across the product lifecycle, eliminate data silos, automate processes and workflows, extend access to product data beyond engineering, and create a sign source of truth.
Do not underestimate the efforts required to successfully implement digital transformation. It may require rethinking processes and significant effort to understand processes, bottlenecks, and opportunities for improvement. This will be an ongoing continuous improvement journey. By offloading more tedious tactical tasks, IT can focus more energy on the more strategic work that will enable digital transformation.
Recognize the significant efforts required to keep data secure to determine if those resources would be better spent supporting the company's core business.
*This summary is an abbreviated version of the research and does not contain the full content. For the full research, please visit our sponsor SOLIDWORKS (registration required).If you have difficulty obtaining a copy of the report, please contact us.
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[post_content] => How does Selerant’s CPG PLM solution DevEx fit into TraceOne’s broader manufacturing and retail PLM strategy? Jim Brown shares two key takeaways from the Selerant (now Trace One Inc.) user conference.Trace One Displays CPG & Retail PLM Synergy at User ConferenceI was excited to speak at the 2023 Trace One user conference and attend the event to learn from Selerant, Trace One, and their customers. I’ve followed Selerant for years and have a lot of respect for their company and their solutions. This was my first opportunity to join a customer conference and hear directly from their customers. It was also an opportunity to get to know Traceone, a retail PLM software company that I’m keen to learn more about. Here are some key takeaways from the conference. Breadth and Depth from Industry FocusI spoke on the business value of PLM including how benefits expand as you extend PLM beyond the core product definition and the R&D department. Selerant’s customers shared a number of case studies amplifying that point, sharing how they go beyond using DevEx to manage recipes to manage aspects like packaging and product compliance. I was reminded of how valuable a focused, best of breed solution can be to meet specific industry needs. Their customers shared how they use deep capabilities that address the nuances of how formulators and other product developers work in the CPG, food, beverage, cosmetics, flavorings, pigments, and other batch process industries. While other PLM vendors may offer recipe management capabilities, DevEx helps users develop formulas optimized to meet market claims, compliance mandates, nutritional targets, and cost guidelines. It’s refreshing to see what a focused vendor can do when they listen and learn from their customers. There were several conversations about customers that compared this type of deep value with using solutions from larger vendors, like ERP providers, and why some very prominent brands choose to work with an industry specialist instead of a larger vendor. Synergy – Selerant is now Trace OneThe other key takeaway is that now, 18 months after the merger, Selerant will be known as Trace One. This is important as they take advantage of synergies across the DevEx PLM system, which will retain its branding, and Trace One solutions. The combination gives Trace One the capability to help retail, CPG, and supply chain customers develop and promote compliant products faster, while maintaining full traceability. Trace One describes the solutions as Manufacturing PLM (DevEx) and Retail PLM (Trace One), as the image shows. We believe that expanding the scope of PLM beyond the product and manufacturer to better plan and manage the product in the context of the CPG / retail relationship is a valuable proposition.OutlookSelerant appears to be doing quite well as a part of Trace One. I met and heard from quite a few new customers at the conference, in addition to some that are in their selection process. It was good to see the success of a company that has long focused on a core, best of breed offering and has developed significant solution breadth. I also find it a good sign when vendors are confident enough to invite their prospective customers to meet and interact with existing customers at their user conference. We look forward to learning more about Trace One and watching progress as they bring the combined offerings to market. Thank you Hollie Farrahi, Sunil Thomas, Marianna Fowles, and Saida Ait for including me in your conference. It was also nice to see (and meet) a number of key Trace One and Selerant leaders including Christophe Vanackère, Jacapo Colombo, Carlo Colombo, Claire Bui, Jobi Varghese, Antoine Daviet, Mike Frankel, and others.
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[post_content] => Jim Brown and I are intrigued by what consumer products companies and retailers can do to design products and trade more effectively and sustainably after our briefing with TradeBeyond. Their multi-enterprise PLM and supply chain collaboration platform is expanding. By acquiring Pivot88, they strengthened existing industry-specific capabilities, deepened their presence in apparel, and added quality, compliance, traceability, auditing, materials management, and AI/ML capabilities.While the company is decades old (formerly CBX Software), new capabilities continue expanding the business value for retailers and their multi-tiered supply chain partner community. The combination of product design and supply chain sourcing, ordering, and logistics is powerful, particularly with many consumer products' short lifespans and seasonal nature. Having these functions in an end-to-end platform designed for multiple trading partners supports the contract manufacturing models common in consumer industries such as CPG, general merchandise, and retail footwear and apparel.Sustainability has also become crucial for these industries, and TradeBeyond helps with compliance. Elements include partner onboarding, documents, and more. They are also building a network of sustainability-focused partners, including BSCI amfori for a common code of conduct, Waste and Resources Action Programme (WRAP) in apparel, The Higg Index from the Sustainable Apparel Coalition, as well as Reset Carbon, with which TradeBeyond has developed CBX Impact that helps companies assess and improve their scope 3 emissions.Moving from product ideation to delivery on a single multi-enterprise collaborative platform is rare, and creates a digital thread from ideation through shipping. Most solutions are robust either in the product development and PLM or the supply chain and sourcing areas, but this has both. Pivot88 adds crucial production and operations capabilities in traceability, quality, and compliance. It also brings critical applied AI capabilities that TradeBeyond is already looking at expanding across their entire platform. TradeBeyond’s differentiation and footprint for delivering value is growing.We look forward to following the company as it continues expanding its product footprint and presence in private-label and branded consumer goods supply chains. Thanks, Eric Linxwiller, and Lilian Bories, for explaining the latest to us. And thanks, Dan Demaree, for setting up the meeting.
[post_title] => TradeBeyond Expands in Quality, Compliance, and Traceability
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[post_content] => How can you help engineers manage complexity to make more informed design decisions?
As the role of product development teams becomes increasingly critical to product differentiation, growing complexity continues to make the job harder. However, with the right technologies, and by connecting simulation and test, you can empower development teams to engineer products that will win market share and boost profitability. This survey-based research study examines engineering practices and the use of simulation and test. It identifies four best practices to get even more value from simulation and test. It also shares advice to support adoption.
Please enjoy the summary* below. For the full research, please visit our sponsor Siemens (registration required).
Table of Contents
Executive Summary
What It Takes for Product Success
What Does Complexity Come From?
Addressing Complexity
What Holds Companies Back?
Identifying Top Performers
1. Explore Design Ideas Using Simulation
2. Validate Simulation Accuracy with Test Results
3. Reduce Test Time with Collaboration
4. Accelerate Time to Results
Recommendations
About the Research
Acknowledgments
Executive Summary
Getting a Competitive Advantage
To be competitive in today’s global market, product engineering teams must balance quality, cost, and innovation requirements and still get to market as quickly as possible. However, these competing requirements make it challenging. Plus, ever-increasing complexity adds further complication.
Managing Complexity
Engineering teams must deal with numerous sources of complexity, ranging from more requirements and new disruptive technologies, to more software and electronics. Companies report that they deal with this complexity by investing in more technology. This can help to predict and characterize product performance.
Four Practices
The research looks at four ways companies can become even more competitive as they deal with increasing complexity:
Use simulation to explore design ideas to innovate and optimize designs in less time. An overwhelming 99% find benefit in this powerful practice.
Validate simulation models using test results to improve model accuracy. The vast majority of Top Performing companies, 79%, enable collaboration between simulation analysts and test engineers, allowing them to execute this highly effective practice.
Reduce test time with collaboration. The findings reveal many ways leveraging simulation results during test saves time. Consequently, 100% of companies who enable collaboration between simulation and test report they experience benefits
Accelerate the time to results with the right solution. The research uncovers several ways Top Performers save time, including that Top Performers are 2.3 times more likely than All Others to indicate that using cloud tools is a way to get results faster
Addressing Complexity
Engineering ImpactEvery one of the sources of complexity has a direct impact on engineering. Engineers must figure out how to meet more requirements, incorporate new technologies, and integrate their work with additional engineering disciplines, while dealing with increasing demands for new skills. In addition, they must
be confident they've satisfied requirements while avoiding the cost of overengineering and still have the flexibility to innovate. All of this makes their job that much harder. It's such a challenge; companies take many actions to help them deal with complexity (see graph).
Addressing Complexity
Many companies turn to technology to help. In particular, simulation can be a valuable tool to improve engineering decisions. Empowering engineers to make better decisions reduces risk and increases the likelihood of products achieving market success.
*This summary is an abbreviated version of the research and does not contain the full content. For the full research, please visit our sponsor Siemens (registration required).If you have difficulty obtaining a copy of the report, please contact us.
[post_title] => How to Engineer Innovation with Simulation and Test
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[post_content] => How can CPG companies cut through the noise to get value from a manufacturing digital twin of their production process? How does it differ in design, commissioning, and operational phases? The market is filled with a combination of marketing hype and real case studies about how digital twins help companies digitally transform and drive new value. This interactive panel cuts through the buzzwords by discussing the real value of applying modeling, simulation, emulation, and virtual commissioning to help manufacturers, including consumer packaged goods companies, get products to market faster with greater throughput and quality. Digital twin experts Stephen Birtsas and Leo Moran of Kalypso join me in an interactive discussion and then share valuable case studies where Kalypso helped customers transform and tangibly improve performance. Watch the Kalypso on-demand webinar for real-world insights and case studies about the manufacturing digital twin (no registration required).
For related research, please read Tech-Clarity's The State of PLM in CPGto find out if PLM is living up to its potential in consumer packaged goods.
[post_title] => The Manufacturing Digital Twin – Buzz or Bullseye?
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[post_content] => I had the opportunity to visit Graphisoft’s Budapest headquarters for their recent Building Together | Connect event. I left the event with several key takeaways:
They showed significant progress and alignment around their strategic vision to integrate AEC design processes across disciplines
They delivered on a variety of enhancement requests for their existing customer base
They demonstrated a product roadmap process that provides transparency and advanced insights while balancing strategic and tactical enhancements
Progress on Vision for Integrated DesignOur research shows the importance of integrating designs across disciplines in architecture, engineering, and construction (AEC). Graphisoft is aligning its offerings to better support this integrated approach by enabling digital, multidisciplinary design processes around a common model. This integration will help foster better communication and collaboration to address increased complexity and help architects create more innovative and constructible designs. Graphisoft shared its strategy and pointed to significant progress that will help integrate the work of its traditional architect customer base with others. At the event, they shared the release of the MEP Modeler in Archicad and new capabilities in DDScad. They plan to continue to add MEP / structural capabilities with every release. They also demonstrated enhancements to BIMcloud and BIMx that help support collaboration and interoperability to support industry initiatives and standards, including open BIM. As a reflection of their integrated approach, they merged their product release announcements into one instead of individual announcements for Archicad, DDScad, BIMcloud, and BIMx. That might seem subtle, but it’s a meaningful statement about the importance of integration and evidence of a more integral product planning process and mindset.Delivering on Customer RequestsThe launch event was open to customers and Graphisoft paid clear attention to enhancements that make life better for existing customers. Graphisoft confirmed that “architects will always be at the center of our thinking,” even as they extend capabilities for multidisciplinary teams. These announcements are not the type that excite the market, but they are the tactical improvements that customers love. Some examples included integrated design option management to prevent the need to make numerous copies of a model, improved attribute management, smart distance guides, streamlined manufacturing library import, advanced model compare, and enhanced search. Graphisoft experts explained each of these in detail, and although the customer audience was remote, I could imagine their pleased responses. Graphisoft also added improved documentation for single-line drawings, which will likely make certain customers happy and also make Archicad more attractive in North America. It appears Graphisoft delivered some real value to existing customers with this release.New Roadmapping ProcessAs mentioned, the announcement shared enhancements to help Graphisoft deliver on its vision but also showed strong evidence that they are listening to their customers. I met with the head of product management, Sylwester Pawluk, and Ghaleb Khadra from professional services to understand their product planning approach for the release. The plan included a mix of strategic additions like one-click LCA and tactical customer enhancements. What’s new, I’m told, is that Graphisoft has adopted a transparent roadmap so customers know what to expect. They also implemented a new technology preview process to share the enhancements with customers in advance and gained a very positive reaction to the release from their pre-release preview process.Graphisoft now offers a live roadmap on its website, and this release shows that they delivered on their promises. In addition to solid roadmap items, Graphisoft shared research initiatives they’re focused on, including AI assistance, parametrics, and augmented / virtual reality. We expect to see results from these added to their roadmap over time. Again, Graphisoft is showing transparency and gaining credibility by announcing what they’re working on and adding it to the roadmap as they become confident of when and how they’ll upgrade their capabilities.Final ThoughtsIt’s great to see progress on both vision and customer-oriented enhancements. We’re excited about Graphisoft’s vision to offer a more integrated AEC solution while supporting existing architect customers. To do this, we expect to see continued investment in their existing solutions. We also believe we will see Graphisoft leverage more capabilities from across parent company, Nemetschek, to fulfill their vision and bring more value to their customers. AEC software is a dynamic market with significant opportunities for vendors and the industry. We look forward to seeing what Graphisoft delivers next. Thank you to CEO Huw Roberts, Ron Close, Julianna Gulden, and the Graphisoft events team for inviting me to join such a well-organized, informative event. Further thanks to Sylwester Pawluk and Ghaleb Khadra for sharing product strategy and progress.
For more information about integrating design processes, see the survey results from our The State of Collaborative Design in AEC study.
[post_title] => Graphisoft Delivers New Capabilities, Progress on Integrated Design Vision
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[post_content] => How do you manage a semiconductor production facility? Most people in the chip industry would say: with semiconductor MES. With its complex processes and products that cannot be clearly seen with the naked human eye, the semiconductor industry began broadly adopting MES in the 1980s and 1990s.And therein lies the problem. The systems that many semiconductor professionals know - and some still use - are completely outdated. This guest blog post by Julie Fraser points out that just as the semiconductor industry has changed radically, so has the software available to support it. She argues it is time for redefining semiconductor MES.The new definition encompasses many new changes in four categories:
Functionality
Integration and data availability
Configuration and scalability
Solution partner experience
Functionality is both broader and deeper than legacy MES. A modern system can handle both fab and backend, and is both broader and deeper than previous systems. Analytics are, of course, also much more advanced.Integration is also radically more comprehensive. With an equipment layer and built-in integration to both lower-level systems and enterprise systems.The MES also becomes more of an enterprise-ready system with configurability and scalability. Most semiconductor companies with legacy MES have dozens of programmers to support the system and keep it useful. Redefined semiconductor MES does not need that.Semiconductor MES is a topic Julie has been following for about 30 years. Redefining semiconductor MES is essential to support the next 30 years of semiconductor progress. Read the entire guest blog post here on Eyelit. Thank you, Eyelit, for giving us an opportunity to express our views on this!
[post_title] => Redefining Semiconductor MES
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[post_content] => What is the most important way a company can help supply chain resilience so it has a positive impact on the business? What are Top-Performing companies doing differently than others? How important are autonomous systems and artificial intelligence (AI)? What does the transformation of supply chain planning entail?Read this new survey-based eBook to find out more about what really matters most to resilience. Please enjoy the summary* below. For the full research, please visit our sponsor Dassault Systèmes DELMIA (registration required).
Table of Contents
Executive Summary
Supply Chain Challenges Persist
Supply Chain Resilience
Resilience: Improving Business Results
Factors in Positive Supply Chain Impact
Visibility into Production
Visibility into Product Changes
People in the Planning Process
Technology Hurdles
Integrating Software Applications
Technologies for Planning
AI and Autonomous Support
Plan Cadence and Structure
Investing in Resilience
Drivers for Resilience
Benefits from Investing
Redefining Planning Scope
Recommendations
About the Research
Acknowledgments
Executive Summary
Transforming to SucceedEvery manufacturer has suffered supply chain challenges in the past few years. Thus, supply chain resilience is top of mind but takes work to achieve. What needs to change is typically the scope and focus of planning.This research shows that transforming and expanding the thinking, team, and processes to achieve resilience in planning can have significant business benefits. Top Performers’ ViewIn this survey of 229 manufacturers, Top Performers show the way. These Top Performers are defined by superior performance on business metrics around new products, revenue, profit, and time to market.Best PracticesTop Performers’ planning is far more likely to involve the entire organization and its data. Not just sourcing, planning, scheduling, and logistics from the supply chain discipline but also product design, process engineering, and manufacturing. The involvement of these disciplines in planning is the #1 factor for Top Performers’ supply chains positively impacting the business. Top Performers are significantly more likely to cite this factor, so it’s a differentiator in what they do. (See chart)Resilience is an Attainable InitiativeThe good news is that internal collaboration and visibility to data from internal manufacturing and engineering groups is a resilience initiative any company can undertake. To succeed with such a program, manufacturers need software that supports a broad-based planning process transformation. Capabilities such as a common data platform and multi-discipline collaboration are crucial to success.Investing Delivers BenefitsCompanies that invest in transformation for resilience are seeing the benefits. This research shows that the longer you invest, the more likely you are to see benefits. Top Performers provide a blueprint for where to focus investment, who to involve, and what to expect from this transformation
Visibility into Production
Capabilities ChangeAfter collaboration, visibility is the next most important factor in achieving positive supply chain impacts on the business. Manufacturers typically have continuous improvement programs that regularly boost production capabilities. Every time there is such a change, the basis of the supply chain plans should shift. Hole in the CenterWhile manufacturing or “make” sits at the center of the supply chain, many companies do not have good visibility into production. The plant floor has often been described as a “black hole” for information flow: it goes in but does not come out readily.Challenges Seeing Manufacturing Clearly
People: Plant floor people have wanted their systems separate to ensure maximum uptime to support ongoing production.
Process: Production can change minute-to-minute, so understanding what’s relevant and creating a pipeline appropriate to each planning cadence is dynamic.
Technology: Separate systems with incompatible data formats and levels of granularity or detail abound in plants. Adding appropriate context for production data to be useful in supply chain planning is a common challenge, along with the need for a uniform data platform.
Redefining Planning Scope
Breadth of OperationsFor resilience, supply chain planning must transform and expand to ALL operations. Aligning within supply chain based on every aspect, from product specs to production capabilities, is crucial. That means integration of this data must be complete and as seamless as possible. Processes also need to involve all of these disciplines fully.CollaborationWhat appears to make the most difference in supply chain resilience is involving the right people. Collaboration between supply chain, manufacturing engineering, production operations, and product design is a top priority for resilience. Planning processes must be inclusive; ideally, technology will support this effort.Technology Support ScopeMany companies will need to make technology investments to plan based on this scope. Based on these survey results, manufacturers need visibility, data access and normalization, and an enterprise collaboration platform. Digital twins of the supply chain, products, and production processes that enable the virtual and real to stay in sync even through extreme volatility could play a significant role*This summary is an abbreviated version of the research and does not contain the full content. For the full research, please visit our sponsor Dassault Systèmes DELMIA (registration required).If you have difficulty obtaining a copy of the report, please contact us.
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[post_content] => Julie Fraser and I are enthusiastic about the potential for manufacturers to get more from their data following a briefing with enterprise search company Sinequa. Sinequa is tailoring their search applications to directly support manufacturers who want more holistic, integrated intelligence about their products and their business. Being able to find and connect data across disparate systems is always a challenge, but even more important is what you do with it once you find it. Sinequa can integrate with a variety of systems to ingest, enrich, index, and present valuable manufacturing data in the proper context. For example, a Sinequa application could collect and display the various elements of a product digital thread from data spread across underlying systems like PLM, QMS, and ERP. Sinequa also leverages AI to help users “converse” with the content. For example, they leverage large language models to surface and contextualize both structured and unstructured information about products that a typical employee would not have access to, or perhaps know existed, from related systems. It’s important to note here that Sinequa has developed a mature security model so users will not be presented with information they do not have permission to access. These capabilities have the potential to provide a much richer, more holistic view of manufacturing data. This view can help manufacturers better understand their products and business and ultimately make better decisions. They’ve developed applications for a very compelling set of customers, including Alstom, Airbus, Northrop Grumman, and NASA, that they’ve helped with information-intensive processes like maintenance and support, among others. We’re excited to see their progress and how the manufacturing community receives the application templates they’re developing. It will also be interesting to see how they partner with PLM vendors and potentially expand to operational data like MES. We’re excited to learn more.Thank you, Xavier Pornain, Laurent Fanichet, Michael Finocchiaro, and John Lenker, for explaining your vision and progress.
[post_title] => Sinequa Brings Enterprise Search to Product and Manufacturing Data
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[post_content] => We had an interesting update from Viamedici, a company we’ve been following that digitalizes product management and product marketing for manufacturers. They offer a multi-domain MDM platform that started in the manufacturing industry and has now expanded to multichannel distributors and retailers. Viamedici quickly achieved a strong footprint in this vertical by acquiring another PIM vendor and upgrading all clients to their platform. Their customers use their platform to collect, cleanse, and share digital data from product design, development, marketing, and supplier data. Many of their customers also use their DAM solution, although others integrate with a complementary or existing solution. They also offer an interesting, model-based CPQ system to handle configured / personalized products or support a guided selling and guided buying model. We’re intrigued by their offering and the potential it has to provide an integrated, cloud platform for MDM, PIM, DAM, and CPQ. Thank you for the update Juergen Mueller and Sven Litke, and it was nice to meet some of the rest of the team.
[post_title] => Viamedici Integrates MDM, PIM, DAM, and CPQ on the Cloud
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[post_content] => Many companies are talking about environmental sustainability – and GE Digital is aiming to embed it in customers’ operations. Jim Brown and I recently got an update from Ben Whiteman on their progress toward that end.The problems they want to solve are:
breaking siloes between operations and sustainability
providing process context to optimize resources more fully
Building on the past year of news, a foundation for this approach is to leverage what Proficy already offers – and what customers have installed. This ranges from Tracker to HMI/SCADA and Historian to MES, CSense closed loop tuning and control, to workflow to scheduling, with a common user experience through Operations Hub. In addition, GE offers an enterprise-level data warehousing, reporting, and analytics solution – bridging from the plants to the rest of the company.GE is organizing these familiar and existing software systems to support operations into new solutions. These are designed to create new pathways for manufacturers to systemize sustainability. The vision is for sustainability and operational metrics to sit side-by-side in the same reports and dashboards. Evidence that these all impact each other makes that logical. However, historically, organizational structures, targets, incentives, and IT systems have not supported a coherent view of ALL performance metrics.Beyond measurement, this approach can support improving sustainability performance. Evaluating tradeoffs and spotting multiple areas of benefit is good practice. The context is crucial to identify which interventions are most impactful for meeting environmental targets yet respecting operational constraints. Companies have been doing this with operational metrics in their continuous improvement programs – and GE aims to broaden the optimization to encompass both production and environmental metrics simultaneously.As GE moves into broader availability of these solutions, we expect this will continue to attract both current Proficy customers and new prospects. They have wisely anticipated that the professional services team will be crucial to the change management involved for the customers and providing feedback to fine-tune the solution offerings.Our research confirms that executives are increasingly ready to take action on environmental sustainability. Legislation such as CSRD and SEC around environmental sustainability are appearing and tightening worldwide, so the pressure is on. Compared to consumers, greenwashing with regulators may be more challenging. So, GE’s timing might be just right.Thank you for the time to share GE Digital’s approach to this increasingly important topic, Ben Whiteman, and thank you, Spenser Murray and Carver Conway, for arranging the discussion.
For more insights, please read our previous discussion on GE Digital's newest Proficy MES version.
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[post_content] => What’s the right amount of PLM for small to midsized manufacturers? We had a briefing with Office PLM to understand their offering. I spoke with Philip Thurman and he explained that Office PLM has all of the features a PLM system needs, but is affordable and installs in a couple of hours. I’m sure we could all have a long discussion about what features PLM “should” have, but what I saw meets what we call “Extended PLM” that goes beyond managing CAD to cover core revision, BOM, configuration, and engineering change functionality with a configurable workflow. They have a goal to simplify PLM and I suspect that their scope hits the sweet spot for a lot of manufacturers that don’t have time to implement a more complex application. Their integration with SOLIDWORKS and should also appeal to many smaller manufacturers. They offer a lot of educational information about PLM as well to help get their customers up to speed. Smaller manufacturers and suppliers should include Office PLM in their research if they’re looking for a lightweight PLM system. Thank you Philip for taking the time to get me up to speed on Office PLM. I look forward to learning more.
[post_title] => Is Office PLM Right for Small to Midsize Manufacturers?
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[post_content] => Michelle Boucher and I joined a group of industry analysts for an annual visit to Dassault Systèmes headquarters for an update on their business performance, product progress, and corporate strategy. This year did not disappoint. We had a lot of great conversations with company leadership and heard some really interesting updates. I’m going to try to condense our experience down to a number of key areas and follow that with a list of interesting things you may want to learn more about. In summary, my observations are that:
The Dassault Systèmes business is strong and well positioned for the future
They are making significant investment, and progress, on their cloud transition
They are invested in sustainability, focusing on both direct and indirect impacts
They are exploring an interesting new line of services called XaaS, or Experience as a Service, that have the potential to change the way capabilities like the digital twin are delivered
I’ll offer some more detail on each of these, followed by some rapid-fire items that are worth exploring further.Business and Vision Dassault Systèmes has always had a strong vision and tends to stay the course. The strategy that CEO and Chairman of the Board Bernard Charlès shared – being a scientific company focused on harmonizing product, nature, and life and 3D experiences that combine the virtual and real worlds – is powerful, but not new. Their current expression of the strategy is providing virtual twin experiences to help companies visualize, model, and simulate behavior from the molecular level all the way up to business experiences. Based on their results, their strategy is paying off. COO Pascal Daloz shared strong financial and customer results which I won’t reiterate here but are readily available in shareholder reports. I felt the presentation from Bernard this year brought forward their role as a scientific company more prominently than usual. The discussions and examples highlighted their foundation in science, modeling, simulation, and data science. Executive VP Philippe Laufer also supported their scientific underpinning, speaking about their ability to bring the power of science to model, the power of data science to project real-world experiences, and their ability to develop scientific predictive models. I expect to hear more about this in their future strategy. Lastly, long-time leader Bernard Charlès showed great confidence handing over the meeting and letting soon-to-be CEO Pascal Daloz, in collaboration with other long-term 3DS leaders that have assumed broader executive roles, take the lead. He shared his belief that Dassault Systemes is in good hands as this very careful succession plan is rolled out.Cloud ProgressDassault Systèmes shared a number of updates that demonstrate their progress toward the cloud. Some of the key comments include that almost one-third of new customers are cloud-based and now more new customers are on the cloud than on-premise. They also shared that many large customers are moving to the cloud. It’s interesting to note, particularly for regulated industries, that the 3DEXPERIENCE Platform can be deployed in a variety of scenarios. As they explained, having their own architecture and infrastructure combined with a hyperscaler (3DS OUTSCALE) allows them to deploy where it makes sense to support their customers’ compliance needs and other business considerations. Another interesting note is that every new desktop SolidWorks license comes with the cloud for data anytime, anywhere, on any device using lifecycle and collaboration fundamentals from ENOVIA.Sustainability Dassault Systèmes has long been focused on environmental sustainability. Not only did Executive VP Florence Verzelen speak and share important examples, but sustainability was mentioned by a number of people throughout the event. Although 3DS spoke about the progress they’ve made on their own environmental footprint, they focused more on what they can do to enable sustainability and circularity for their customers, what they call their environmental “handprint.”New Chief Sustainability Officer Philippine de T’Serclaes also shared her perspective and spoke about their science-based goals for improving sustainability. Both shared examples of using the 3DExperience platform for sustainability and circularity. Experience as a Service3DS also shared a new customer engagement method. As opposed to delivering software or even software as a service (SaaS), they are delivering business experiences as a service. In the model, typically based on a value-based engagement, 3DS focuses on delivering value and solving business challenges instead of features to customers. In this model, they both develop and operate virtual twins for their customers, applying a combination of their software, their industry expertise, and their operations capabilities. This changes 3DS’ role from software provider to value provider, because they maintain the full solution (or “experience”) for the customer. This may help companies adopt digital twins and drive value without having to focus on how it’s achieved.
Some final thoughts. I won’t do them all justice here, but follow our research for more.
Business Process ManagementDassault Systèmes is moving beyond features and experiences to business processes. Highlights here are a new BPM offering and the plan to offer business experiences that customers can purchased from a marketplace. Director of Strategy & Transformation Vincent Merlino shared that the use of no-code, low-code platform for business experiences will add flexibility to allow the platform to support a broader array of industries and user types. Industrial MetaverseI’ll keep this short, but I will say that the augmented reality experience 3DS shared with us in a local museum was one of the first AR experiences I’ve seen that looks like it will provide significant value while still being within reach of smaller manufacturers. The example shared a virtual twin of a factory and examined placing new equipment. Whether you call it the metaverse or something else, there is something important happening here as technologies converge.PLM Updates 3DS is clearly continuing to invest in ENOVIA. Some examples shared by ENVIA CEO Stéphane Declee and VP Philippe Bartissol include the new BPM solution, a supplier portal PartSupply, and quite a few interesting integrated / distributed collaboration examples. AnalyticsNETVIBES-EXALEAD CEO Morgan Zimmermann shared some of the increased focus on analytics and some really interesting case studies, including an exciting case study we first learned about during an earlier ENOVIA-NETVIBES analyst event (), Morgan shared another example of a virtual twin that correlates and synchronizes data from different systems on the virtual twin, created a dashboard of information from Primavera, SAP, CRM, and other systems overlaid on the physical model and supports a workflow to identify and trace an issue in the platform without resorting to email. Artificial IntelligencePatrick Johnson, Senior VP of Research and Science, shared a number of practical examples of AI. There we very little hype. They just shared that they are already using it and have plans for more. Watch this space.Model Based Systems EngineeringCATIA CEO Olivier Sappin shared 3DS’ continued focus on MBSE to support the industry transformation to highly automated system of systems. He shared a virtual twin for cyber systems experience that started at mission definition, defined the system of Systems Architecture, and realized it with multi-discipline Engineering (including automation). Progress in AECVP Remi Dornier gave us on update on the vision they shared last year to componentize and modernize architecture, engineering, and construction. He shared working examples that show they are further exploring and realizing their vision.BatteriesManaging Director Reza Sadedhi shared some significant work they are doing around battery cells, starting from scientific principles and simulation, creating a digital twin of the battery cell. There was more shared and there are things I didn’t mention, but this is all I have room to share at the moment. Thank you Joe Horine, Orenella De Angelis, and Kurt Chen for hosting us and thank you to all of the 3DS execs who took time out of their schedule to meet with us.
For related insights, Michelle Boucher and Jim Brown share their updates on ENOVIA and NETVIBES Transitioning to a Business Platform, Michelle Boucher highlights key takeaways from 3DEXPERIENCE World 2021, and take a look back to read how Dassault Systèmes has made significant progress on their 3DExperience Vision from 2017.
[post_title] => Dassault Systèmes Shares Growth and Strategy at Analyst Day 2023
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[post_content] => How do companies prioritize the business strategies that drive their long-term success? What’s driving their strategy as they face constantly shifting global market disruptions? How do they balance initiatives like digital transformation, ESG, developing their workforce, and adopting new business models to ensure business sustainability in 2023 and beyond?Read our 5th annual survey to see how executive strategies have changed as companies face shifting global market disruptions.
Please enjoy the summary* below. For the full research, please visit our sponsor Dassault Systèmes (registration required).For related research, please read our prior survey results from the past five years: Strategies for Business Sustainability 2022, Business Sustainability and Transformation Strategies 2021,Business Sustainability and Survival 2020, and Executive Strategies for Long-Term Business Success 2019.
Table of Contents
Disruptions Vary, But Risk is Constant
Preparing for Success
Strategy and Initiative Drivers Have Shifted
ESG Pressure Comes from Many Angles
Holistic Business Sustainability
Putting Strategy into Action
Technology is Key to Business Sustainability
Technology Drivers Significant Business Benefits
Conclusions and Recommendations
About the Research
Acknowledgments
A Time to Create Agility and Improve Sustainability
No Major Shocks, But Risk RemainsThe past decade confronted businesses with a constant barrage of disruptions, including natural catastrophes and human-created disasters. Although the business environment is still turbulent, industry faced fewer significant new events since our survey in 2022. Our fifth annual survey, though, shows that risks remain. Although the percentage saying business risk and disruption has increased "significantly" dropped 27% from the prior year, about three-quarters of responding companies still say it has grown over the last five years.Despite the lack of new shocks, companies in 2023 report that they still struggle with supply chain challenges, the fallout of COVID, and the impact of armed conflict. They also face lingering economic uncertainty despite relaxing global recession fears. Moreover, while it's not new, the threat from climate change is coming to fruition, and predicted impacts appear to be ahead of schedule. In 2022, the world's oceans were the hottest in history and exceeded the 2021 recorded maximum, and experts warn that "this year's United in Science report shows climate impacts heading into uncharted territory of destruction."Events like Canada's 2023 wildfires are constant reminders of climate change impacts and are becoming more common.Time to Continue Transformation and Drive SustainabilityOur surveys on long-term business success show that companies responded to prior disruptions by accelerating technology adoption to increase agility and become more resilient. Now is the time for companies to continue with digital transformation to prepare for future inevitable disruptions and continuously improve efficiency in the face of continued economic uncertainty. At the same time, they must act on sustainability initiatives that are becoming critical to both human experience and continued economic success. Given the landscape, how are companies prioritizing the essential pillars of long-term business sustainability to ensure business success in 2023 and beyond?
Strategy and Initiative Drivers Have Shifted
A Period of (Relative) StabilityResponding to global disruption dropped as a strategy driver from 52% of companies in 2020 to 10% in 2023, the lowest point since COVID began impacting global markets (see next page). This is a strong indicator that disruption may have eased off, at least so far this year. Instead, companies appear to be back on track with ambitious strategies for business sustainability. Long-term growth goals are about the same and remain the most common strategy driver. Growth goals have been a constant from the beginning of this research series, and now financial market perception has grown from a low of 20% in 2020 to one-half of companies this year.ESG becomes a Larger FactorOther factors that influence corporate strategy and initiatives have shifted. Respondents now report that strategic plans are more driven by financial market perception and ESG factors. This is very different from the "survival mode" companies faced in 2020, where essential initiatives like environmental sustainability were pushed to the side. In fact, almost one-half of respondents report that government regulation drives their strategy this year, growing by 48% since 2019. We expect that these regulations are largely focused on greenhouse gas emissions and other environmental mandates. Other ESG business pressures are becoming more prevalent as well. Environmental issues were reported 83% more frequently as a strategy driver than in 2019 and have continued to climb since a low in 2020. In addition, 44% report corporate responsibility drives strategy, growing 63% since 2019, reflecting an additional ESG-related factor being considered more frequently in strategy decisions.New Focus on New EnergyThis year, we began tracking how the transition to new energy drives strategy and found that over one-third report it as a driver. We believe government regulation will add to existing transformation pressures such as cost and scarcity and spur more direct activity in this area. At the same time, government investment in new energy initiatives will also likely influence corporate direction. These drivers will further ESG efforts both directly and indirectly.
Technology is Key to Business Sustainability
Technology Critical to Business Success and ProfitabilityThe second factor we investigated in detail is technology. Technology plays a crucial role in supporting the pillars and driving long-term success and profitability. To demonstrate this, a full 87% percent share that technology is important to business success, and 30% say it's critical.Technology plays a crucial role in supporting each of the pillars of long-term success. About three-quarters of companies share that technology is critical or important to five of the seven pillars, and about two-thirds report it's important to the others.Reaching ESG Goals Demands Technical SupportPerhaps one of the more surprising findings is technology's high importance in supporting ESG. Companies now recognize that they need to take a systematic approach to environmental sustainability. Making sustainable decisions and green reporting require a tremendous amount of data from across the business and the supply chain. Technology is vital to capturing information and reporting on sustainability, but also to developing the insights needed to improve it. ESG technology is full of innovation. From our experience, companies are not finding a single application for ESG. They are applying existing technologies to make more sustainable choices in everything from product and service innovation to business execution.Technology is Crucial to TransformationTechnology is also seen as most important to digital transformation and product / service innovation and agility. Each of these is reported as "critical" by one-third of companies. The speed and scope of innovation demand a broad array of information and collaboration across disciplines.Technology Supports Business SustainabilityTechnology adoption continues to play a role in preparing for and responding to disruption, providing companies the agility they need to identify and react to issues. Technology alone doesn't achieve these goals, but the key finding is that modern businesses can't survive into the future without adopting technology to support them in the digital age.
Conclusions and Recommendations
Disruption is Lower, but Remain VigilantRisk and disruption continue to grow, but significant disruption may have leveled off (for now). Although the most common disruptions today are the supply chain and financial market, our research shows that the problems companies face vary. Businesses should anticipate ongoing disruption and the need to develop agility and resilience. Global business means companies are constantly at risk, it's simply the reality. Take the Long ViewIt's essential to prepare for disruption but stay focused on long-term business needs. Company success drivers are optimistic and show a belief in the long view, including long-term profits, innovation, and transformation. Disruptions come and go. As companies mitigate risk by becoming ever more agile and responsive, they must also stay focused on the enduring fundamentals of business success, such as customer relationships and long-term profits, while digitally transforming to stay relevant for the long term. At the same time, they must also attract and develop the workforce of the future. Stay Focused on SustainabilityCompanies are taking a balanced approach and continue to focus across the pillars of business sustainability. But the world has changed, and strategic drivers have shifted to put more emphasis on financial markets and the environment. One of the most significant increases in attention is ESG. Environmental and social responsibility are becoming increasingly critical to long-term business success. Companies must continue to drive their internal green initiatives while satisfying regulatory demands. Fortunately, regulations are beginning to reflect environmental imperatives and create a level playing field that supports both business and the environment.Adopt Technology to Drive Long-Term SuccessOur research clearly shows that technology plays a crucial role in driving long-term company profitability and sustainability and achieving value across the pillars of business sustainability. It also delivers significant business value. Companies must continue their digital transformation, adopting new business models and technologies, to achieve long-term business success.*This summary is an abbreviated version of the research and does not contain the full content. For the full research, please visit our sponsor Dassault Systèmes (registration required).If you have difficulty obtaining a copy of the report, please contact us.
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[post_content] => One of our most recent guides, Seven Keys to Improving Service with the IoT, focuses on helping manufacturers and service companies get the most out of machine monitoring. The guide offers seven considerations for companies to consider when they target service transformation. As we published the guide, I wondered if writing about “how” to improve service and the system capabilities it requires is enough. Are most companies aware of “why” they should be doing it in the first place, and how it can positively impact their business? If so, why isn’t everyone doing it successfully now that barriers to implementing machine monitoring through the industrial IoT (IIoT) have dropped? Share your thoughts on my guest blog post on the PTC blog (registration required).For related content, read our buyer's guide, Seven Keys to Improving Service with the IoT,to learn practical steps for companies to improve service through IoT condition-based monitoring. You can also hear Jim Brown share insights from this buyer's guide and share his thoughts about improving field service by leveraging the IoT in episode 20 of PTC’s Speaking of Service Podcast with PTC’s VP of Strategic Partnerships, Christine Wolff,
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One of our most recent guides, Seven Keys to Improving Service with the IoT, focuses on helping manufacturers and service companies get the most out of machine monitoring. The guide offers seven considerations for companies to consider when they target service transformation. As we published the guide, I wondered if writing about “how” to improve…
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How do companies prioritize the business strategies that drive their long-term success? What’s driving their strategy as they face constantly shifting global market disruptions? How do they balance initiatives like digital transformation, ESG, developing their workforce, and adopting new business models to ensure business sustainability in 2023 and beyond? Read our 5th annual survey to…